Gabriel Biris/ Not for investments, but for big whitening. Not for productivity, but for price increase

Last week, the ministry debated another draft ordinance to amend the Tax Code Changes include the already promised tax exemptions for physicians' incomes or dividends, as well as the increases in excise duties on gasoline and diesel to the level to which they had been increased in 2013 by the Ponta government (reduced in 2017 by the new Tax Code) There are no other changes announced though: ...
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Alarm on human capital: Increasing number of young people who get neither a job nor education. A comparison with EU countries

  Romania ranked fourth in the EU in 2016 by the proportion of young people (20-34) who are neither employed nor included in a form of education, with the percentage of 235%, according to the data provided by Eurostat More seriously, we are among the countries where this indicator has deteriorated the most over the past ten years Abbreviated NEET in English (neither in ...
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Regression: Economy and companies are less prepared for a crisis than in 2008

The Romanian economy suffers from the same vulnerabilities as those of 2008 and, in addition, the notable differences are still negative, especially at the level of the companies, according to an analysis published on Tuesday by Iancu Guda, President of the Romanian Financial-Banking Analysts Association (AFABR) Both the similarities and especially the differences to 2008 raise doubts about ...
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Trade deficit – over 50% growth, one quarter to the next: Phenomena, consequences

The trade deficit in the second quarter of 2017 was EUR 3,5207 million, according to the data provided by the INS, which shows a spectacular increase by about 52% compared to the first quarter of the current year Moreover, in June, the highest monthly trade deficit has been reached, of nearly EUR 14 billion or almost 40% of the entire quarter Worryingly, while the growth rate of imports ...
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Rapid advance of inflation – fed by administered prices

According to the data provided by INS, Romania registered a 032% increase in prices in July 2017 compared to the previous month, the highest level in the last nine months By aggregating with the unfavourable base effect (prices had declined by 024% in July 2016), the inflation rose significantly and reached 142% It should be noted that in the absence of a change in the regulated prices under ...
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Reintroducing over-excise to fuels: high risks versus uncertain budget results

At the beginning of the current year, the over-excise of 7 euro cents per litre included in the total excise duty has been eliminated At the same time, VAT has fallen by one percentage point, from 20% to 19%, which led to a cheaper litre of fuel by about 50 bani The return to the 2016 excise level would result in about 45 per cent increase in the price of a litre of fuel It should be noted ...
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Reactive and chaotic taxation is back: Rebate tax on fuel, banks deduct 30% of divested receivables, uncultivated agricultural land is surplus

The Government has initiated this week the legislation needed to change taxation as it faces the issues related to the budget deficit and the payment of political commitments – and surprised the business environment with a reactive and chaotic taxation generated by the lack of perspective Some of the measures are, in fact, a return to the decisions of the ruling coalition, as has happened in ...
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Sovereign Investment Fund might postpone Romania’s transition from frontier market to emerging market status

The draft law on the establishment of the Sovereign Development and Investment Fund (FSDI) provides for its exemption from the application of the laws on accelerating privatization, which also included the method of listing on the Bucharest Stock Exchange (BSE) of companies such as Hidroelectrica, Aeroporturi Bucuresti, Maritime Ports Administration and others Meanwhile, these companies have ...
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Tourism Investment Masterplan: Projects of national interest and those of local importance. Objectives: vague and unquantifiable

The Tourism Investment Masterplan, approved on Friday by Mihai Tudose cabinet, contains 29 projects of local importance and three of national interest and all of them will be made with money from the state budget and from local administrations’ budgets, not from EU funds Funding will begin in 2019, depending on the budget possibilities The government decision does not contain any cost ...
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Newest toy of authorities of all kinds: who is pushing energy price. BNR Governor: attention to electricity in economy!

The price of electricity has come last week close to an inexplicable maximum, as the authorities are not just spectators, but they seem to be part of the price increase mechanism The price at which the electricity has been traded on August 3 was three times higher than a year ago when the conditions needed for production were similar, thus reaching 570 lei/MWh The authorities' explanation ...
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Romania – lowest rate of credit recovery from companies in insolvency. Legislation gaps become obstacles to granting loans

The ease with which companies turn to insolvency is one of the structural obstacles to a faster credit expansion, according to a group of economists coordinated by Valentin Lazea, published in the latest issue of the Study notebooks of the National Bank of Romania (BNR) "In practice, it was found that the Romanian insolvency law allowed too easily that interest groups controlling a company or ...
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Strawberry pickers remembered about themselves and leave Romania’s balance of payments on government officials’ responsibility

Amounts sent to the country have significantly declined over the past three years, so indicators showing the importance of this money relative to FDI have significantly deteriorated in 2017 For the first time, the available data show a ratio of only 99% between secondary net revenues and FDI in the first five months, half of what has been recorded in 2013 Changing the way of statistical ...
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Keysfin: Business at seaside is growing, tourism stagnates. Systemic deficiencies that keep Romania on last position within EU

Businesses from the seaside in the HORECA field grew by 66 percent, to 133 billion lei, from 2012 to 2016 and net profit 35 times, to 1329 million lei – supported by the decreased taxation On the other hand, the poor infrastructure and the quality of services below the international standards place Romania on the last position in the ranking by the tourism revenues share in GDP, according to ...
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From where does Romania eat vegetables and fruits – country with agricultural land covering 2/3 of its surface: What and how much others produce – what and how much Romania produces

In the European Union, more than 28 million hectares have been allocated to fruit production and other 21 million hectares to the production of vegetables Eurostat has published the profiled rankings, where Romania, the seventh EU country by size and population, shines by its absence from all chapters     It should be noted that Spain was the member state which paid ...
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How special pensions are covered from state budget

To give a clearer idea of the economic impact of special pensions, we give you the data found about the payment situation in April 2017 We point out that it would be desirable to receive clarifications and a transparent monthly announcement on this information that became of broad public interest lately Statistics on the beneficiaries of special laws (service pensions), April ...
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Oracle transfers most of its European hardware support activities to Romania

Oracle, the world’s largest software developer, will transfer most of the European hardware support activities to Romania, to reduce current costs. The process of closing ... Read more

LSE Study: Ten Romanian companies can inspire Europe with their rhythm of growth. Meanings of this selection

London Stock Exchange (LSE) analysts have identified ten Romanian companies among the 1,000 small and mid-sized firms in Europe that can inspire the others with ... Read more

Eastern European countries’ exports of weapons increase. Not Romania’s ones

Producers of bullets, assault weapons, and rockets from former communist countries in Eastern Europe saw a significant increase in orders following the conflicts in the ... Read more

European Commissioner: Brexit will decrease budget for Regional Policy by 10-12%. Member states will have to cover these amounts

The budget allocated by the EU to the Regional Policy will decrease by approximately 10-12% after the exit of the UK from the Union, said ... Read more

Government prepares to guarantee unchanged royalty regime throughout offshore concession contracts

The Government is trying to speed up the implementation of the offshore oil operations. There is a bill at SGG that assures companies having oil ... Read more

Consultations on security topics between Poland, Romania and Turkey with participation of Jens Stoltenberg

Preparations for the NATO Summit in 2018 and the reform of the allied command structures were the main topics for the last week’s meeting, on ... Read more

Representatives of prosecutors across the country reject Minister's proposals to amend justice laws

Representatives of prosecutors from all over the country have rejected amendments to the justice laws proposed by Minister Tudorel Toader, General Prosecutor Augustin Lazar said ... Read more

Average monthly spending per household in 2016: Education - 4 lei, Telephone services - 90 lei

Last year, a household spent a monthly average of 4.05 lei for education, 90.71 lei for telephone services and 26.26 lei for health services, according ... Read more

Cost of state indebtedness rises and drags euro exchange rate with it

Government’s hunger for money causes a growing demand on the market, which increases the borrowing cost for the state and encourages distrust in the national ... Read more

Mihai Tudose about royalties: A new law to enter into force on January 1, 2018; royalty level will "depend on companies’ behaviour" in terms of prices pushed by the new excise duty

Prime Minister Mihai Tudose has announced the date of January 1, 2018, as a “certain” term for the entry into force of a long-delayed new ... Read more

File / Share of French investments in Romanian industry decreased compared to 2007. Investment in agriculture and utilities increased

The share of direct investment (FDI) made by French companies in the Romanian industry fell from 56% of total French FDI in 2007 to 46% ... Read more

Prime Minister Mihai Tudose - threats and warnings to banks and oil companies: Romantic period has passed

Prime Minister Mihai Tudose has released several strong signals to banks and oil companies. He says that he is willing to take major risks in ... Read more

MApN states its availability to buy US attack helicopters

Defence Minister Adrian Tutuianu has signed on Wednesday a letter of intent on price and availability regarding the purchase of attack helicopters produced by Bell ... Read more

Minister Ionut Misa: Salary growth to increase public pension fund deficit by 22% in 2018 compared to 2017

The deficit of the public pension fund would be 17.2 billion lei in 2018, up 22% from 14.1 billion lei this year because of the ... Read more

Romania - world champion of frontier markets in 2017, by return on stock exchange investment

Evolution of BET-TR since the beginning of the year The Romanian capital market had the highest growth among all 23 countries in the portfolio of ... Read more

Chinese have obtained Romania's consent to take over former Rompetrol Group. Romanian-Kazakh investment fund remains just a paper

Romanian authorities have agreed on the deal by which China Energy Company Limited (CEFC) took over 51% of the KazMunayGas International shares (KMGI, former Rompetrol ... Read more

Finance Ministry - officially: Yes, social contributions will be transferred from employer to employee but net salaries will not decrease

Social contributions will be entirely transferred to the employee as of January 1, 2018 – the Ministry of Finance announces in a press release. Despite ... Read more

Finally: Romania has officially discovered that nine out of 29 analysed food products have a lower quality than those from Western Europe

Photo: Digi24 Nine of the 29 Romanian food products analysed have a different content than the identical goods brought from shops from Belgium, Germany and ... Read more

Eurostat: Romania had second highest budget deficit in EU in Q1 /2017. Reaction of Finance Ministry

Romania’s seasonally adjusted budget deficit was 3.2% of GDP in the first quarter of 2017. It was the second highest budget deficit in the European ... Read more

Government borrows one billion euros to co-finance large infrastructure projects

The Ministry of Finance (MFP) has contracted a loan of one billion euros with the European Investment Bank (EIB) to cover the state budget contribution, ... Read more

A set of measures proposed by AOAR to Government to improve business environment in Romania

After a period when all major business organizations – Romanian and foreign – have rejected the tax experiments especially those proposed by the Mihai Tudose ... Read more

BNR: Romanian public administrations have financial commitments amounting to 45% of GDP

The share of financial commitments by public administrations remained, between 2015 and Q1 2017, at the same level of 45.2% of GDP, according to the ... Read more

National Centre of Financial Information, which will gather tax databases, is established

The National Centre of Financial Information “will be established by 1 September 2017 within the central office of the Ministry of Public Finance, by merging ... Read more