Mains

National minimum wage increased by nearly 50% in just two years. Impact

1 February 2017: an important day for the labour market Increasing the national minimum wage from 1,250 lei to 1,450 lei will involve an annual increase of 16% of the minimum cost of labour That will inevitably have effect in all prices of goods and services to the share of the performed labour in the cost Simply put, if the share in the cost is 6%, the price increase will be 1% and if the ...
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Ordinances on pardon and abuse decriminalization, explained

Adoption On the night of January 31/1 February 2017, it has been published in the Official Gazette 92/2017 the Government Emergency Ordinance 13/2017 that amends the Criminal Code and the Criminal Procedure Code In the same night, it has been adopted a bill on the pardon, but it will follow the regular legislative procedure in Parliament, so there is no law on the pardon to take effect ...
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Draft state budget, version 2.0: Defence gets a “clean” 2% of GDP – artificial increases for education and healthcare

The most recent version of the draft state budget discussed on Friday by the Government, which is also to be analysed by CSAT on the national defence component, relies on estimated revenues of 117,087 billion lei, by 600 million lei above the first version of the budget drafted by the Ministry of Finance Budget expenditures increase by an equivalent amount, up to 1502 billion lei The ...
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Salaries in Romania by fields of activity, compared to EU practice. Plus, a question summarizing the situation

Only in three sectors from Romania, the wages reached the level allowed by the GDP in euro related to the market prices, according to a study by Eurostat for all member states based on the data become final in 2014 and published this week The three areas are the mining, banking sector and the information and communications At the time of collecting the statistical data, Romania's GDP per ...
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Economic miracle at National Commission for Prognosis, following Santa Claus’s visit: In just two months, real wage increase has doubled, while GDP increased yet by an annual growth

Romania's GDP is to grow between 2017 – 2020 at a more rapid pace than previously expected, according to the winter economic forecast by the National Commission for Prognosis (CNP) Data presented resemble an old joke about the yield per hectare, telling that we should stop harvesting because we already entered Bulgaria In the following article, we will analyse the spectacular growth that the ...
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An analysis: What Brexit really means. Both for the EU economy and Britain

The exit of UK from the European Union, abbreviated Brexit, will cause a decrease of the EU’s GDP of about one-sixth but significantly increase the surplus of the EU trade balance According to Eurostat, in current prices, the UK reached a GDP of EUR2,580 billion in 2015, of the EU total of EUR14,708 billion Basically, the EU will lose its second-largest economy (Germany exceeds EUR3,000 ...
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Horrifying draft of new fight against corruption: granting pardon to convicts, disguised amnesty for prosecuted people. A small list of famous beneficiaries

After solving the wage increases and amending the Tax Code, the parliamentary majority started the second week of exercising the governance: amending the criminal legislation, especially that part relating to the situation of prosecuted and convicted people The government draft ordinances on granting pardon and amending the criminal codes seem "tailor-made" like – at the client’s request ...
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How Romania entered again the top league of most innovative economies in the world: We rank 38th out of 50

Romania has achieved a score of 5706 points following the calculations for the global 2017 Bloomberg Innovation Index and ranked 38th out of 50 positions in the top innovative economies Our country missed the 2016 ranking and in 2015 ranked 37th The Bloomberg ranking scores economies based on factors including research and development spending and the concentration of high-tech public ...
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Average national gross salary exceeded 3,000 lei: structure of incomes by fields of activity

The average national gross salary announced by INS for November 2016 exceeded the psychological threshold of 3,000 lei by five lei, after an increase of 3% in the previous month The average net wage had also a three percent advance and reached 2,172 lei or 481 euros, calculated at the average exchange rate from December, the month when money have actually been received In terms of purchasing ...
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Social security and budget spending, after 10 years in EU

The social security spending increased over the ten years of EU membership by slightly more than two percent of GDP and about a quarter of the allocations for pre-accession, all in relation to the country's economic outcome This change took place almost entirely in 2009, the increases from 2008 being offset by the negative change from 2012-2015 (see table)   Social ...
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Beware of industry! And take it easier with redistributing an alleged increase – take a look at Germany

In a time when all public attention has been focused on redistributing the benefits of a robust economic growth, presumed to happen by itself, almost nobody is looking at the sector of activity which sets, in fact, the general tone: the industry Even if it only accounts for a quarter of GDP, it determines the solid, long-term sustainable results Or, the result announced by the National ...
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Document / Analysis by Fiscal Council: The 14 social measures decided by Grindeanu government have a negative budgetary impact of 8.9 billion

  The Fiscal Council estimated Wednesday that the budgetary impact of the social measures decided by Grindeanu government will amount 89 billion lei, representing 11% of GDP Presidential Adviser Cosmin Marinescu, Head of the Department of Economic and Social Policies, requested the Fiscal Council to make an analysis regarding the first-round effects on the balance of the general ...
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10 years of EU / Devastating income inequality: exceeding the level recorded at the time of accession and the highest within the Union. Inequality in UE28

Somewhat paradoxically, the unequal distribution of income in Romania decreased during the crisis and returned in 2015 to a higher level than at the time of joining the European Union In other words, the benefits of resuming the economic growth and recovering the GDP above the 2008 level have been mostly awarded to a small segment of the population, which largely explains the growing social ...
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Consequences of removing the maximum threshold for CAS and CASS payment. Philosophies about tax in the EU 28

Just appointed in office, Grindeanu government implemented the first social measures announced by PSD since the elections, among which the decision that employees will pay pension and healthcare contributions calculated for the total wage, as the current maximum amount equivalent to 5 average gross salaries has been removed The decision places Romania into the small group of the EU states ...
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High impact tax measures taken by Grindeanu government. Trap of repealing maximum threshold for CAS and CASS

The emergency ordinance by which Grindeanu government will increase some wages of the employees from the public service (salaries in administration, culture) will have a budget impact of - 513 billion lei in 2017, according to the draft emergency ordinance published by the Ministry of Finance On the other hand, according to some other changes of the Tax Code expected for Friday, the employees ...
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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