Mains

European Semester: a summary about Romania in 2017. Brussels data do not “match” at all those from Bucharest

  The European Commission (EC) shows in the 2017 country report on Romania that, by reversing the consolidation trend, the fiscal policy turned pro-cyclical in 2016 and the deficit is widening Driven by significant tax cuts and expenditure hikes, the general government deficit will increase further to 36% in 2017 and 39% in 2018 Contrary to the forecast that the Government presented, ...
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Real economy: Profits of large companies in 2016 hide consumption increase tensions. Dividend ranking

The tensions hidden by Romania's economic growth in 2016 (48%) are visible in the results of the 20 largest Romanian companies listed on the Bucharest Stock Exchange (BSE), according to their data reported to the stock exchange The 2016 results of the companies from the BSE Top 20 "suggest that the economic growth was based mainly on consumption and investment with no speed," said Mihai ...
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Cristian Grosu / Do not be stupid: Trap for a perverse political class to keep the domestic and foreign capital. Some examples

  I usually do not keep in touch with the mob representatives that decapitalized Romania, even if some of them were sources of information for me in the last 24 years Taking that into account, I have a strong admiration and determination to help in any way and anytime I can Romanian entrepreneurs who have managed to remain standing despite the hostile environment in which they evolved ...
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Wonderful world of salaries and pensions in the next 4 years: “we have a problem!”

The Minister of Labour Lia Olguta Vasilescu confirmed last week in a TV show that the pension and salary increases will apply in the next four years exactly as they are written in the electoral leaflet of the main governing party If applied as they have been presented, a major issue for the Romanian economy is worryingly taking shape: the sustainability of the pension system To simplify the ...
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Why Romania fails to join OECD: criteria that it does not meet and what to do

Romania's accession to the OECD is a major goal of the Romanian foreign policy since 2004 After 7 governments at Victoria Palace and 13 years since establishing this objective, during which the OECD has received new members 2 times (2004 and 2012), Romania is still waiting for a favourable decision According to an OECD report issued in December 2016, the wait seems to be lasting and does ...
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Royalties on resources – negotiations and draft proposals

The management of the inter-ministerial committee in charge of drafting the legislation on royalties has been taken over by the Ministry of Economy from the Ministry of Finance (MFP) said on Wednesday Ionut Misa, Ministry of Finance State Secretary, quoted by Agerpres "All players remain at the table” I cannot give any definite date (regarding the completion of the new law that will ...
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Congenital anomalies of Romania’s Consolidated General Budget

Having summarised the state budget revenue and expenditure (BS), let us see how they integrate into the consolidated general budget (BGC), of which they represent about a half and where they add to the amounts from the local budgets, the social security budget, the insurance budget for unemployment, the national health insurance fund, etc Minority revenue, majority spending Official data show ...
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Budget and spendings of Romanian households: comparison with the EU countries. Some suggestions for redirection of money

Romania ranks first in the European Union in terms of share of spending for food in the household budgets and ranks last in three categories of expenses: clothing and footwear, catering and insurance, according to the data of Eurostat, the statistical office of the EU The shares of the various categories of expenditure, organized by the EU norms in 12 groups of goods and services are those ...
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Expenditure from 2017 budget: Sudden turn towards underdevelopment

  The expenditure from the 2017 state budget has been planned with an increase almost three times higher than the economic growth foreseen in the draft budget (certain 149% by law, against an economic growth forecast, debatable, of 52%), which could not bode well for the chances to implement the provisions of the state budget Some milestones to be considered It remains quite unclear how ...
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2017 budget: strange things about the revenues

The great undertaking of the 2017 budget execution has been launched, with the presumption of 50 basis points decrease in the current revenues, according to the data from the Ministry of Finance website Almost the whole increase of about 15% compared to the previous year would come from the money received from the EU We present below some of the most important sources of revenues, to get a ...
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Country of hundreds of tons of garbage thrown everywhere stumbles over legislation: EC report – Romania, major shortcomings in implementing environmental policies

Romania suffers from applying the environmental requirements agreed at the EU level, even when the Romanian legislation reflects them "accurately", according to The EU Environmental Implementation Review, a report by the European Commission (EC) on the application of the environmental policies Many of the European requirements are not even transposed yet into the national legislation, reads ...
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Effects of deductions – of pensions, abuse and democracy: When pensions grow (in 2017!) by 25%, by how much should salaries increase and what the source of this growth should be?

Between the deductions of tax on pension, criminalizing the abuse of office and partial application of democracy there is a material connection, as concrete as possible And especially financially measurable Based on the de facto connivance of two benefiting parties of the society and the special involvement of a paying part The mechanism is shown in the following: According to Law 227/2015, ...
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Beware of financing costs! Quick and sharp decline of confidence in Romanian securities

  Yields of the Romanian securities have rapidly increased following the political chaos, the reaction of the society and the uncertainties underlying the budget that marked the last week A rising level of the yields indicates a decreasing confidence in the economic outlook and leads to increasing financing costs for the public debt, according to the data available on the specialized ...
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2017 budget – Detailed opinion of Fiscal Council: It deliberately and substantially deviates from tax rules; highly overoptimistic macroeconomic scenario; later corrections most likely to come along the way

The Fiscal Council released on Friday its opinion regarding the Law on the state budget, the Law on the state social insurance budget for 2017 and the Fiscal-Budgetary Strategy for 2017 -2019, warning on "a high probability for a negative revenue gap to occur in 2017, caused by the highly overoptimistic macroeconomic scenario underlying the budget forecast" The Fiscal Council states in the ...
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A (big) problem of the convergence with EU: Mentality of governance. Some units of measurement

The convergence with the Western Europe means more than just the growth that would cancel gaps in terms of standards of living but keep us on the current coordinates in terms of customs and mentalities Two Eurostat statistics reports illustrate the differences of approach between us and the world that is more civilized Meaning that it is about the "measurable" mentality Where nothing is, ...
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NEWS

2017 started with a decreasing confidence in economy and leu, according to CFA Romania Index

The index of macroeconomic confidence has declined for the second consecutive month, down to 54.9 points in January 201, of 100 points in total. “The ... Read more

One of 102 taxes eliminated is back: Daniel Constantin announces new version of car pollution tax

Daniel Constantin probably has not read the program of the PSD government The Minister of Environment Daniel Constantin (foto) announced on Tuesday that, probably next ... Read more

Competition Council investigates why fuel prices in Romania exceeds the EU average

The Competition Council has launched a sectoral investigation on the fuel market, to analyse why the prices in Romania are above the EU average, said ... Read more

2017 European Semester, analysis on Romania: growth above potential, worrying deficit estimates

Despite Romania’s progress in implementing the recommendations of the European Commission (EC), “the structural challenges may dampen the medium-term outlook,” mentions the report on Romania. ... Read more

2017 trends : Bucharest Stock Exchange indices hit new 5-year highs. BET exceeded psychological threshold of 8,000 points

The most important indices of the Bucharest Stock Exchange (BSE) registered new 5-year high Wednesday at noon and continued the favourable trend of the last ... Read more

World Bank, interested to support founding of Sovereign Investment Fund

Alexandru Petrescu, Minister of Economy The World Bank is interested in the announcement that Romania plans to establish a Sovereign Fund for Development and Investment ... Read more

Memorandum: Sovereign Fund to be financed from selling shares of state companies and bonds

To obtain financing, the Sovereign Fund for Development and Investment (FSDI) planned by the Government will sell shares in the state companies received in its ... Read more

Law on hypermarkets / European Commission launched infringement procedures against Romania and Hungary

The European Commission started on Wednesday the infringement procedure against Romania and Hungary on the matter of retail of agricultural and food products. More specifically, it ... Read more

Romania, referred to CJEU over illegal landfills. EC asks Bucharest to allow Bulgarians to have equal access to fish from Black Sea

The European Commission has decided to bring Romania in The Court of Justice of the European Union because the country has not closed and rehabilitated ... Read more

Forest Stewardship Council permanently withdrew certification for wood processed by Schweighofer

The international organization Forest Stewardship Council (FSC) announced Friday in a press release that permanently withdraws the certification for the wood processed by Austrian group ... Read more

Historical demographic records in 2016: Lowest number of live births after 1876 and largest negative natural growth in history

The natural growth was negative in December 2016, as the number of deaths surpassed the live births by 9,782 people. The data for the entire ... Read more

BNR forecasts lower economic growth than Government. Explanation: different "macroeconomic model"

The National Bank of Romania (BNR) forecasts the economic growth between 4% and 5% in 2017, based on its macroeconomic model; its estimation would have ... Read more

Government amends, only 3 months after last change, the method of approving price of medicines. Industry claims 48% of the market is disrupted

The Ministry of Health has launched to public debate a government decision draft to amend the calculation methodology and the endorsement/approval procedure for the maximal ... Read more

EIU: Economic growth may slow down to 3.6% in 2017, while budget deficit could reach 3.3% of GDP. Other estimates

Romania might register in 2017 an economic growth slowdown to 3.6% from the 2016 estimate of 5%, and a budget deficit of 3.3% based on the ... Read more

Klaus Iohannis in Parliament: Legislate for Romania not for some politicians with problems. Do what you promised during elections, do not make fun

President Klaus Iohannis assured on Tuesday that he does not intend to change in any way the result of the parliamentary elections, asking instead for ... Read more

Four largest universities and Ad Astra Association: Government reorganizes, namely re-politicises research domain

  The Minister of Research prepares the “reorganization of the advisory bodies” under the authority of the ministry, which risks to undo “any effort made ... Read more

A new phenomenon: brands’ revolt. How advertising decreased on Romania TV and Antena 3 news channels because of tendentious reporting on protests against Government

Against the background of protests caused by the Government’s initiative to amend the Criminal Code by emergency ordinance and the call of Frontline Club for ... Read more

Government becomes more powerful than Parliament. When reality is entitled to contradict Constitutional Court

  Romania’s Constitutional Court ruled Wednesday, 8 February, following the examination of the request received from President Klaus Iohannis, that there is no constitutional conflict ... Read more

Head of Joint Standing Committee for Exercise of Parliamentary Control over Romanian Intelligent Service asks for investigations on multinationals who allegedly urged employees to attend protests. IPP calls for his resignation

Senator Adrian Tutuianu (PSD), Chairman of the Joint Standing Committee for the Exercise of Parliamentary Control over the Activity of the Romanian Intelligent Service (SRI), ... Read more

Upgrade in financing for Romania: Without listing Hidroelectrica, promoting Romanian capital market to emerging market status faces further waiting time

The Romanian capital market needs to meet only one more criterion, out of nine, in order to be promoted from frontier market to emerging market ... Read more

Minister of Economy: Royalties should have a correct level from regional perspective, for different types of resources

The Ministry of Economy and Energy is currently working on a new system of royalties, to allow investors’ access to a clear list of all ... Read more