Labour cost: steepest and largest increase in the EU. And mostly concentrated on non-business sector
Romania recorded in the first quarter of 2018 the highest labour cost increase among all EU member states, according to data released by Eurostat. With… Mai mult›
Company financing: Firms’ aversion to credit – at high levels. Most favourite banking product – account overdraft
The rise in interest rates and fees is becoming increasingly worrying for companies and maintains companies’ aversion to banking lending at high levels, according to… Mai mult›
“Everything in One Hand” project continues: Law which pushes Court of Auditors beneath Administration’s feet – adopted
The Senate adopted on Thursday the draft amending Law 94/1992 on the organization and functioning of the Court of Auditors, which contains amendments that could… Mai mult›
Government is hardly competing with private economy on banks’ money. Which are satisfied: less work, lower risks
The volume of government credit has increased about 10 times over the last 10 years, and the share in total banking investment in Romania… Mai mult›
European Semester 2018: Romania follows a pro-cyclical fiscal policy, structural deficit went up to 2.3%, compared to MTO target of 1%
de Adrian N Ionescu , 27.11.2017
The European Commission (EC) has determined that Romania has not taken efficient measures to “correct its significant deviation from the adjustment plan to achieve the mid-term budgetary objective” (the so-called MTO), according to the EC press release which accompanies the European Semester autumn report published on Wednesday.
“Considering the information provided by Romanian authorities in their report and the autumn forecasts, the Commission concluded that Romania has not taken efficient measures to respond to the Council’s recommendation from June 16, 2017“, says the European Commission document.
As a result, the EC proposes to the European Council the issuance of a new recommendation for Romania with a higher rate of adjustment for the structural deficit of 0.8% of GDP in 2018 compared to 0.5% as provided in the recommendation issued on June 16, according to the Significant Deviation Procedure (SDP).
The European Council’s previous recommendation provided that the nominal growth rate of the primary government spending would not exceed 3.3% in 2017, corresponding to an annual structural adjustment of 0.5% of GDP within the SDP procedure.
The Romanian Government responded on October 13, 2017, with a report containing the measures taken which did not convince the European Commission.
“Romania follows a pro-cyclical fiscal policy against a background of a strong economic growth, beyond the potential. For 2017, the structural deficit is estimated at 2.3%, far from the mid-term budgetary objective (1%). Therefore, in the absence of effective measures from Romania, a revised recommendation is needed,” says the European Commission (EC).
The European executive expects for Romania’s structural deficit to increase at a rate of 1.1%, despite the adjustment of 0.5% requested by the European Council in June. The EC expects for the structural deficit to increase by 1% in 2018, according to the autumn forecast.
The Commission also recommends Romania to use all gains to reduce the budget deficit, while fiscal consolidation measures should ensure a lasting improvement in the government balance structure in a way that supports the economic growth.
Romania must report to the European Council by April 2018, on the actions taken by authorities in response to the new Commission’s recommendations.
The Commission sets the EU’s economic and social priorities for the next year, formulates policy recommendations for the Eurozone and finalizes the assessment of the draft budgetary plans of the Eurozone member states.According to the autumn economic forecast published by the EU executive at the end of last week, the public deficit in Romania would reach 3% of GDP in 2017, to further worsen in 2018, to 3.9% of GDP and reach 4.1% in 2019 unless vigorous measures are taken.
On the other hand, the EC estimates that the Romanian economy would register a 5.7% increase in 2017, a significant increase compared to the estimates from the spring forecast that showed a 4.3% GDP growth.
Lăsați un comentariu
Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability
Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult›
Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult›
AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy
The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult›
Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%
The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult›
The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult›
Liviu Dragnea announces a dictatorship through ordinances: "Correct procedural approach through Parliament is wrong, from the law on investment fund to laws on the judiciary. We will be firmer and more radical"
"We decided to be much firmer and more radical. My way of having a correct procedural approach in the Parliament proved wrong. In the Parliament,… Mai mult›
Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult›
The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult›
C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's
Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult›
The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult›
Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult›
RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years
Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult›
Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult›
Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network
The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult›