Mains

Productive Romania and eight of its problems

Four hours of discussions, seven business representatives, two economic analysts, four officials 21 March 21 2017 (details – LINK_HERE) – the year when Romania started to realize that it spent the last 15 years importing consumer goods and commonly used raw materials which it should produce by itself if it wishes to further count on the European economic map It should do that - for tens, ...
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Roads that bypass Romania: Maps of Romania’s speed in a multi-speed Europe

Despite the vehement reactions of the authorities from Bucharest against the multi-speed Europe, the reality on the ground (literally, on the ground) shows that we remained a country completely disconnected from the European Union The maps that we present today (made by Vasile Iuga, PwC Senior Adviser) take the problem regarding all sorts of infrastructure out of the clichés domain: The ...
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Romania and Brexit: Damages for Bucharest compared to Central and Eastern Europe countries. Limited effects in short-term, big long-term threats

Although they will weigh heavily only after 2019, when the exit of the UK from the European Union will have effectively completed, the effects of Brexit on Romania, as on the other Central and Eastern European countries are already threatening the future of their economies, depending on the solidity of their growth Analysts do not dare to predict what will happen after the European Union will ...
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Adapting Romanian production to increasing incomes – rapid development and trade balancing are at stake

Romania is increasingly specializing in the extremes of the demand range High-quality products for the foreign markets or parts incorporated at low prices in quality products marketed as final products in other countries Along with products at a modest level of quality and moderate price for the domestic solvent market In other words, we exploit small gaps identified among the already ...
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Cristian Grosu / Why Romania is doomed to improvise: Unproductive Romania and delirium of decision makers

  It is not that, after a fashion, we have something to cook every evening – us, employees, entrepreneurs, decision makers, plits (politicians for life, irrespective of their skills) or just spectators: but that is (INCREASINGLY!) difficult for Romania to become a productive country in the strict sense, because the context of our economic game requires a visionary conceptualization ...
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DESI 2017, Romania: Best Internet speed, but ranking last in EU in terms of using it

The European Commission has published the Digital Economy and Society Index (DESI), 2017 edition, which shows that the only thing that Romania prides itself, namely the Internet speed, is not enough for our country to move from the traditional last position in the EU ranking Romania ranks 28th in DESI 2017 The report says: "Romanians benefit from coverage of fast broadband connections in urban ...
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State, as employer in capitalist Romania: a different analyisis of private economy

Who keeps alive the economy, administrative systems, budgets of all kinds - from the investment to pension budget - and ultimately the whole society The answer to this question - that should be simple: private economy - looks more like a patchwork than it should There are entire areas of the economy where the state is the employer without which nothing moves And "the private ...
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Warning (detailed) for lucid ones: 4.8% – highest growth in Europe – NOT based on something tangible: Industry contributed 0.4%, construction 0.1% and agriculture nothing

The National Institute of Statistics (INS) confirmed the last year's economic growth at 48%, the first preliminary version published after the initial forecast announced as a signal (We remind that the second preliminary version is to be announced after about a month and the semi-final version after one year, while the data will remain "set in stone" only after two years, in their final ...
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Valentin Lazea – Chief economist of BNR / EU problems and problems of “Hard core” group: With calm, on “White paper on the future of Europe”

As expected, the publication, on 1 March 2017, of the "White Paper on the future of Europe" signed by the European Commission President, Jean - Claude Juncker, has sparked much debate Unfortunately, most standpoints in the Romanian public space express fear and indignation against the perspective of creating a two-speed Europe and prove they ignore some fundamental things First, they do not ...
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Government prepares a budget revolution: Income tax to be entirely collected to local budgets

The Government prepares amendments to several laws so that the income tax to be directly and entirely collected to the local government (municipalities, county councils) as of 1 January 2018, to finance their functioning, stated the Minister of Regional Development, Public Administration and European Funds (MDRAPFE), Sevil Shhaideh The statement - quoted by Agerpres - was made Wednesday ...
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State, in a harsh competition with companies for money from banks

The balance of government credit (including local government) was 922 billion lei at the end of 2016, which represents over 86% of the corporate loans, according to the National Bank of Romania (BNR) In other words, the banks use their lending resources for financing the state almost as much as for financing the companies, as it is well-known that financing the state is a safer and easier way ...
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Exclusive / Letter of Commissioner Moscovici to Romanian Government: Deadline set in April for an action plan to bring budget back within realistic deficit target

Foto: Valdis Dombrovskis (left) and Pierre Moscovici The Vice-President of the European Commission Valdis Dombrovskis and the Commissioner for Economic and Financial Affairs Pierre Moscovici sent the Minister of Finance, Viorel Stefan, a letter stating that by the launch of the Commission Spring Forecast (April 2017), the Government should "credibly" announce the measures aimed to bring the ...
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What’s left of a strategic decision: Dutch corvettes for Romania – went missing in Dragnea – Les – Tariceanu Triangle

The Defence Minister Gabriel Les (photo), listed Tuesday during the presentation of the activity report of MApN the projects for equipping the army considered priorities, of which the naval component has disappeared – the corvettes that the Romanian state was intending to acquire from the Dutch "It is for the first time when the major plans are in line with the budget allocations We shall ...
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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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NEWS

Romania to buy Patriot missiles - it will be the 13th country in the world that owns this defence system

The Chief of the Military Staff, General Nicolae Ciuca (photo), announced in a press conference on Thursday that Romania intends to buy American missiles Patriot, ... Read more

IMF has improved forecast for Romanian economy growth in 2017 and 2018: but far below Government’s calculations

The International Monetary Fund (IMF) has revised its estimates for the Romanian economy growth to 4.2% from 3.8% – previous estimate for this year, and ... Read more

BNR: Current account on surplus, but external debt increased in first two months of 2017

The balance-of-payments current account posted a surplus of EUR 204 million in the first two months of the year, compared to a deficit of EUR ... Read more

Finance Minister Viorel Stefan: Households to be recognized from tax perspective; their members will be able to jointly pay global tax

The Finance Minister Viorel Stefan announced on Wednesday that the future Tax Code will provide the option for a global tax payment on household income, ... Read more

Essential: Government adopted strategy for decentralization. Timetable and sectors

The Government approved on Wednesday the general strategy of decentralization, comprising the responsibilities that could be transferred to the local authorities and describing the way ... Read more

Chamber of Deputies members offer CCR judges super immunity, higher pensions and diplomatic passports

The Chamber of Deputies passed Tuesday by 178 votes “for”, 39 “against” and 51 abstentions, the bill that provides increased immunity to CCR judges. They ... Read more

Six R&D centres to be established in agriculture. They will receive subsidies

The Ministry of Agriculture and Rural Development (MADR) launched for public debate six draft government decision for establishing or reorganizing six R&D centres specialised in ... Read more

Enel Group paid Romania EUR 401 million imposed by Court of Arbitration in Paris

Enel Group paid Romanian state EUR 401 million, according to the decision of the International Court of Arbitration in Paris announced in February, according to ... Read more

Ionut Dumitru: Half of budget revenues to be spent on public sector wages in 2022. That is unsustainable

The state expenses on public sector wages will reach 12% of GDP in 2022, which means half of the revenues collected to the state budget, ... Read more

Average national wage fell below 500 euros in February. Unique case in EU: manufacturing sector, 12% below national average

The gross average national wage announced by INS for February 2017 was 3,108 lei, by 1.9% below the previous month. The net average national wage ... Read more

Court of Accounts/ 80% of procurement frauds occur in local government. Solution - establishment of Centralized Procurement Unit

The Court of Accounts verified last year nearly 2,700 public entities and identified 23,500 violations that caused a total damage of EUR 400 million. Of ... Read more

Completed draft laws: Changes in criminal codes - no minimum threshold for abuse of office. Law for integrating European Directive on extended confiscation

The draft law for amending the criminal codes will not include any minimum value threshold for the crime of abuse of office, and another draft ... Read more

"Worst of both worlds": Court of Arbitration in Paris decides that CNAIR should pay compensation to contractor of "sunken highway"

Photo: Narcis Neaga, appointed adviser to the current government, starred in the “Sunken highway” play The National Company of Road Infrastructure Administration (CNAIR) will bring ... Read more

Unusual letter: Major US corporations present in Romania ask Prime Minister Grindeanu to not deviate from rule of law

Representatives of several American companies handed over to Prime Minister Sorin Grindeanu, Wednesday, a “roadmap” containing provisions on the rule of law, transparency and efficiency, “that ... Read more

To the last drop: Government is also collecting dividends from what state companies earned in previous years

The Government has found a new source to finance the budget deficit, wages and maybe public investment. The profit obtained by the state companies and ... Read more

Budget implementation after two months: Ministry of Finance reports a surplus - what is behind it

The Ministry of Finance announced that, according to the current working data, the implementation of the general consolidated budget in the first two months of ... Read more

Debts of companies to suppliers in Romania maintain above 56 billion lei. Wholly Romanian-owned companies are most indebted

The outstanding payments of the companies to suppliers in Romania amounted to about 56 billion lei in 2016, compared to 56.5 billion lei in 2015 ... Read more

Romania competes for relocating European Medicines Agency to Bucharest. Argument: 14,000 Romanian doctors and pharmacists working in the EU

The Government approved on Wednesday a memorandum for Romania to apply for the relocation of the European Medicines Agency (EMA) to Bucharest, in the Brexit ... Read more

Three proposals from PIAROM for a real reform of technical and vocational education system

The Romanian Local Investors Employers – PIAROM calls on the authorities to quickly adopt concrete supportive measures for involving the private capital in the technical ... Read more

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