Mains

PIAROM study/ Workforce systemic and structural problems. Examples

Although a good thing apparently, the economic growth, accompanied by an increased number of employed people hides a systemic failure: in Romania, tendency is for the economic sectors relying on unskilled work to strengthen A keen analysis of the workforce from Romania’s regions of development conducted by the Romanian Local Investors Employers (PIAROM) confirms the old issues of the ...
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One more month with trade deficit of EUR1 billion: performance of the automotive industry – cancelled by the consumer goods imports

Trade deficit for the first ten months of this year was EUR7,8998 million, about 23% higher than the same period of last year The coverage ratio of imports by exports maintained below 90%, level that have been exceeded every year in the period 2013-2015 In the first ten months of 2016, imports grew significantly faster than exports (64% against 41% in euro), but the difference eased over the ...
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Purchasing power – 60% higher than in 1990. The inequality of distribution

The average net earning announced by INS for October 2016 was 2,108 lei, 14 lei or 07% higher than the previous month Expressed in the single European currency, the average net wage was 467 euros or 942 euros, measured in standard purchasing power parity That means only one euro more compared to September, as the exchange rate for its calculation exceeded again the threshold of 450 lei / ...
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Romania – the most precious asset due to the (temporary?) position on the European scoreboard

According to the Eurostat certified data, Romania met last year 13 of the 14 indicators set for the dashboard of the macroeconomic situation of member states In terms of economic balances, we rank 2nd, tied with Poland and behind the Czech Republic, the only country that successfully met all the requirements imposed by the procedure for macroeconomic imbalance The Macroeconomic Imbalance ...
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“Competitive Romania” project is ready: the budget for implementation would be lower than tax evasion on the main taxes

  The Ministry of Economy announced on Tuesday the completion of the project for sustainable economic development "Competitive Romania" The budget required for full implementation of the strategy "Competitive Romania" is EUR18 billion and represents about 107% of GDP for 2016 or about 10% of the average GDP for the period 2016-2020, according to the final document published on the ...
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Study: Minimum wage increase scenarios. The impact

The impact of the national minimum salary on the work productivity is negative - an increase of the minimum salary by 10% would have as result a decrease of the work productivity by 23%, according to a study conducted for the Government by the National Scientific Research Institute for Labour and Social Protection (INCSMPS) "It seems that the increase of costs in Romania - caused by raising ...
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The most inefficient post-revolutionary parliament: IPP analysis of the 2012-2016 legislature

One week before the parliamentary elections of 2016, when voters are called back to the polls, the Institute for Public Policy (IPP) shows by figures and summaries why it is important for us to elect future incorruptible deputies and senators, able to exercise the primary role of a Parliament member, consisting of initiation and support of bills The Institute for Public Policy (IPP) published ...
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WB: Romania’s metropolitan areas and their problems. Deficiencies from the “growth poles” hinder development in the whole country

The eight largest metropolitan areas of Romania (Bucharest, Brasov, Cluj-Napoca, Constanta, Craiova, Iasi, Ploiesti and Timisoara) represent 50% of the country’s population and 75% of the “firm revenues” Their development potential is though insufficiently tapped - according to a study of the World Bank, conducted for the Ministry of Regional Development and Public Administration ...
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Great and fractured Romania: The Great Union centenary will find the country with an even more unbalanced structure than today

  While the government programs of parties competing for the Parliament focus on tax cuts, after 2 years of tax cuts, policies for internal convergence are lacking The state’s intervention to stimulate development, replaced with the politics for election – limited to creating a budget mechanism – missed or was incoherent: so, despite the preparations being made for the Union ...
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Romania’s trade relationship with the Eurozone: a comparative analysis with Poland, the Czech Republic, Hungary

Romania ranks 15th among the trade partners of the Eurozone, far behind other countries that were part of the Eastern bloc, such as Poland (4th), the Czech Republic (6th) and Hungary (10th) The degree of integration into the space of circulation for the single currency will play a decisive role in the decision to join the Eurozone, beyond the imposed Maastricht convergence criteria Under the ...
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How Romania passed on 25% of domestic gas market to Russia. Suspect mechanism that hits both budget and economy

Russian companies have reached in November 2016 at a share of 25% of the Romanian gas market, up from only 5% in January The mechanism that allowed that is complicated and it is hard to know today whether it was about incompetence, bad faith or lack of vision Beyond increasing the dependency, there are two more damages: a budget damage, by loss of significant state revenue an economic ...
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13 industries prone to anti-competitive behaviour

Drastic polarisation of the business environment - a phenomenon that makes half of the companies in Romania to "fight" on 2% of the total turnover - has consequences A related phenomenon, the distortion of the competitive environment in key sectors of the Romanian economy, has been monitored for years by the Competition Council By measuring a so-called aggregate Index of Competitive ...
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Carnage on the roads: Romania and traffic accidents – a comparison in the EU context in terms of statistics and measures to reduce mortality

The dozens of deaths on Romania’s roads from the recent weeks - be it the chain accidents on the Sun Motorway or those on DN2 and DN6 occurred during the last weekend - remind us of the dark statistics that we hold in the European rankings Romania ranked the second last year in the EU, along with Latvia, by the number of victims of road accidents to the total population, namely 95 people per ...
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How we spend our comparative advantages: Price of natural gas in the economy – missing an opportunity and the consequences for Romania

In the context of the significant drop in energy prices, our decision makers have been hesitant to act on that and from the position where we had by far the lowest price of natural gas for industry of all EU countries, as of mid-2014, we have got on the 7th position, with other six countries being at a very short distance from us The average price of natural gas used by the Romanian industry ...
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Duration of active life and worklife expectancy for Romanians: a comparison in the European context

Romania went up in the past decade from the 23st to the 21st position among the EU countries by the average duration of a resident’s active life, which reached an average of 328 years That is below the legal requirement of 35 years for qualifying for full pension in normal working conditions Noteworthy is the relatively high difference between men and women that has increased, contrary to ...
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NEWS

Liquidity of Romanian banking system - the lowest from Central and Eastern Europe, relative to GDP

The excess liquidity of the Romanian banking system was 4.5 billion lei in December, or 1.3% of GDP, excepting the minimum reserve holdings from the ... Read more

President Iohannis: Power and opposition should reach agreement on parliamentary oversight over intelligence services. Warning on amnesty and pardon!

President Klaus Iohannis announced Tuesday that he signed the two decrees regarding Florian Coldea: the removal from post and placing him in reserve. In his ... Read more

The government is preparing a law on prevention. Companies will no longer be penalized unless they have previously been guided to correct certain mistakes

The Minister of Business, Trade and Entrepreneurship, Florin Jianu submitted for examination in the Government meeting on Thursday, the principles and operation mechanism for a ... Read more

”Civil war between ranks”: SRI First Deputy suspended from office. An internal committee to check any failures to comply with professional ethics

The Romanian Intelligence Service released Thursday a statement announcing that Lieutenant General Florian Coldea will be placed “at the disposal of the SRI Director”. According ... Read more

Deputy Prime Minister Daniel Constantin announced discussions about differentiated tax on some types of income

Deputy Prime Minister Daniel Constantin told Digi24 that flat tax will not be repealed, but there are discussions about the possibility of introducing, as of ... Read more

Official excuse launched for cutting investment: Dragnea criticizes Ciolos for 10 billion lei, precisely the impact of the Government measures decided on Friday

PSD Chairman Liviu Dragnea announced on Sunday evening at Romania TV that “it is very likely” to initiate an inquiry parliamentary commission before which former ... Read more

New Minister of Education changes the rules: School principals who failed the exam may remain in office

The new Minister of Education, Pavel Nastase, changed one of the principles of the competition organised for principals from secondary school. Principals and deputies who ... Read more

Quota of green energy reduced to 8.3% of the final consumption of electricity

The Government decided to cut down from 12.15% to 8.3% of the gross final consumption of electricity the mandatory quota of electricity from renewable energy ... Read more

Hornbach to boycott the wood from Holzindustrie Schweighofer

German DIY retailer Hornbach will waive, starting January 2017, the contract with the Austrian company Holzindustrie for the trade of timber and planed wood. Hornbach ... Read more

Erste Research: Fiscal instruments designed to stimulate the economy have reached their limits. Countermeasures to fiscal loosening to follow in 2017

Romania and Poland “have a very limited room for manoeuvre in the tax area” – if needed, in case that the budget deficit would exceed ... Read more

Profit for the state: not even EUR6 million from 278 companies, overseen by 220 AAAS employees

  The situation of the companies monitored or managed by the State Asset Administration Authority (AAAS) – the successor of former post-communist institutions in charge ... Read more

Emergency Ordinance: Ciolos Government makes room for the future government’s budget

The Government approved on Thursday an Emergency Ordinance to postpone some measures that would have entered into force on 01 January 2017 and had a ... Read more

Firm agreement between KazMunayGas and Chinese CEFC for 51% of Rompetrol shares

KMG International NV (KMGI), the major shareholder of Rompetrol Rafinare, announces that negotiations between the National Company KazMunayGas from Kazakhstan (KMG NC) and Chinese company ... Read more

Top 10 measures of economic impact to be taken if PSD keeps its promises

Many of the economic promises from the government program that PSD launched during the election campaign repeat older themes from the collection of economic policies ... Read more

Business environment: Two of the tax law changes bring taxpayers in the position to no longer be able to obtain cancellation of the notices of assessment

  The Coalition for the Development of Romania (CDR) points out that the legislative package for simplifying and improving the tax legislation, recently approved by ... Read more

Country ‘s residents owning agricultural land equal to 2/3 of the territory - the lowest consumption of fruits and vegetables

Regular consumption of fruits and vegetables is considered an important factor of health and balanced diet. However, an Eurostat report warned that more than one ... Read more

Up to EUR 7 million aid for those who forest the agricultural land in the areas exposed to erosion

Agricultural and non-agricultural land owners, either public and private, can receive up to 7 million euros for creating windbreaks and plantations to combat soil erosion ... Read more

Prime Minister Ciolos's draft budget for 2017: realistic growth of over 4%, deficit below 3% of GDP

The budget draft prepared by the Ministry of Finance is based on an economic growth of over 4% and a budget deficit below 3% – ... Read more

Minister of Defence: There are signals that give us food for thought – antiaircraft protection from Deveselu must be strengthened

“We obviously have to think, and we do that together with our partners and allies, to some elements for strengthening the antiaircraft protection of the ... Read more

Eliminating inequalities in public sector salaries will cost EUR4.33 billion in 5 years

The Government will not send anymore the Parliament a new draft law for the unitary salary in the public system – it will be soon ... Read more

The Public-Private Partnership Law, promulgated: Let's see the tens of billions euro projects that waited for this law

Public-private partnership projects (PPP) amounting tens of billions of euros could find sources of financing and implementation after the PPP Law was promulgated Wednesday by ... Read more