Mains

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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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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NEWS

IMF mission concluded consultations in Bucharest – Government’s options

The IMF mission concluded Thursday a 7-day visit in Romania in the annual process of consultation under Article 4, after a small delegation came to ... Read more

Romanian leu depreciated to reach 4.5654 lei/euro, record level of last four and a half years

The reference exchange rate announced Friday by BNR was 4.5654 lei/euro, 0.3% more than the level reached in the previous session and a maximum level ... Read more

Liviu Voinea (BNR): 7,000 notifications on debt to equity swap, by February; loans amounting to 2 billion lei

The number of notifications registered under the Law on debt to equity swap reached to 7,000 at the end of February, representing total loans amounting ... Read more

Siegfried Muresan: Romania should make joining Schengen a condition to accept two-speed Europe

Member of the European Parliament Siegfried Muresan (photo) said in Strasbourg that the idea of a multispeed Europe is not wrong altogether, and Romania should ... Read more

Valentin Lazea: Absorption of EU funds could lead to a 4.5% increase of potential GDP

The International Monetary Fund (IMF) told the officials of the National Bank of Romania (BNR) that a 95% absorption of the European funds would lead ... Read more

Investigation on record high prices on energy market: 440 million lei in losses generated by seven to eight traders. Guilty ones lose their licenses

Seven or eight energy traders generated total losses of 440 million lei to the suppliers of last resort and the network operators, losses that will ... Read more

ANAF announces a campaign to control compliance of tax declarations

ANAF announced Thursday that will launch inspections starting in April that will include institutions from the financial and banking sector, with the aim of checking ... Read more

Romanians pay among the highest utility costs in Europe, by reference to their income

Romania ranks second in the ranking of families from the European Union who spend more than 40% of their income on home utilities (electricity, gas, ... Read more

Hourly labour cost increased by over 12% in Q4 2016 compared to 2015. Higher earnings in healthcare and education

The hourly labour cost in adjusted terms (by the number of working days) registered an increase of 12.33% in the fourth quarter of 2016 compared ... Read more

Emergency measures to control deficit: Minister of Finance blocked recruitment for budget institutions and halted promotions

Minister Viorel Stefan (foto) urged to keep the deficit under control. In the midst of the discussion about the increased salaries, government officials turn off the ... Read more

Ministry of Finance, investigations on misleading and comparative advertising

The Ministry of Finance announced Wednesday that it has started an information and verification campaign on a sample of 447 firms that sell food, beverages, ... Read more

Budget implementation of January 2017 - 5.7% lower revenue and 3.5% higher expenditure compared to January 2016

The Ministry of Public Finance published Monday the report on the implementation of the consolidated general budget for January 2017. According to the official announcement, ... Read more

Romania, Hungary and Slovakia are competing for an EUR 200 million Mitsubishi investment 

After Renault, Ford and Daimler, another big car manufacturer intends to establish an engine factory in Romania: the company is Mitsubishi, announces ProTV. According to ... Read more

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