Four impact scenarios of OUG 114, as they were presented by Florin Georgescu to Liviu Dragnea and C.P. Tariceanu
The tax on bank assets, called the “tax on greed” by OUG 114 authors who imposed it, may reduce the economic growth by 0.6-1.1 percentage… Mai mult›
Hourly labour costs grew by 13.09% in the fourth quarter of 2018 compared to the same period in 2017, according to data announced by INS.… Mai mult›
Bulgaria vs. Romania: Reform and results of tax authority in Sofia and counter-reform and its consequences in Bucharest
Bulgarian tax authorities, which have successfully implemented a modernization program with World Bank’s support, a program that Romania abandoned after six years of delays and… Mai mult›
The general consolidated budget ended the first month of 2019 with a surplus of RON 717 million or 0.07% of the estimated GDP for the… Mai mult›
Finance throws away for good contract for ANAF modernization with World Bank: 6 years and EUR 18 million down the drain
Sources close to talks with the World Bank have stated for cursdeguvernare.ro that the Finance Ministry notified the financial institution in November 2018 that it… Mai mult›
de Marin Pana , 16.4.2018
Romania ranked first in the EU in 2017 by the labour cost increase, according to data published by Eurostat. With an increase of +15% in euro (+ 17.1% in the national currency) our country has far outpaced Bulgaria (+12%), the Czech Republic (+11.3%), Hungary (+10%) and Baltic countries (Lithuania + 9.0%, Estonia +7.4% and Latvia +7.0%)
It is noteworthy that data have been processed at the country level for the entire economy, less the agricultural sector and public administration, in the enterprises with at least ten employees.
Unlike us, the Czech Republic and Hungary recorded slightly lower increases in the national currency than in euro (8.4% and 9.2%, respectively), as their currencies appreciated against the single currency.
Salary cost in Romania has increased 3.3 times compared to 2004 and has advanced by 50% compared to 2008. However, we remain on the second to last position in the EU by this indicator, by approximately 30% above Bulgaria and 30% below Hungary, our geographic neighbours. The evolution (attention, without the public administration) is comparable to the group of BELL countries mentioned in the table below us.
- Evolution of salary cost per working hour in some EU countries
- (euro, without agriculture and public administration)
The problem is that we are not part of the small countries that have adopted or have their currency indexed to euro, but we should be closer to the mid-sized economies with floating exchange rate regimes, such as Hungary, Poland and the Czech Republic. These countries are a few years ahead of us in terms of the economic development.
Cost distribution by economic sectors: Attention to who bears the burden!
Moreover, we are differentiating ourselves from these countries, as well as from the Western practice, not only by the sharper increase in salary costs but also by the distribution of the salary costs by sectors of activity.
In our country, the industry registers a level of 95% of the national average, while the values match, at least, in the Czech Republic (100%), Poland and Hungary (101% each).
In Germany (116% ratio between industry and national average), Spain (112%), Ireland (110%), the Netherlands (109%) or France (106%), this positioning essential for the labour market is even clearer. Of course, we also have countries that are pretty much like us (Bulgaria, 96%), Croatia (92%) or even significantly below, like Portugal (87%), but they cannot be examples to follow.
At the same time, we have salary costs higher than the average on the services segment, which is not a European practice, and the non-business area is 18% above the national average, compared to only 2% at the EU average and minus 1% in the Eurozone.
Which tells us that we are atypical in terms of salary cost distribution
- Salary costs per hour in EU countries by economic activities (euro, 2017)
- Year Business Industry Construction Service Non-business
- EU average
- Eurozone average
If we highlight the desirable situations in green for the manufacturing industry, in purple for the non-business sector, in relation to the European practice that is successful for the development of these economies, and if we highlight in red the situations that appear to be abnormal in this context, we can easily see what we should be aware of and where we should intervene on to salary costs.For example, we can see in the case of BELL group, which does not pay more attention to the payment in the manufacturing industry, but at least it does not exaggerate in the non-business area (which, attention, does not include the public administration in the Eurostat report).
An area where the countries that tend to pay better are Poland, the economy that is closest to us in terms of structure and level of development, as well as Latin countries Italy and Spain.
Lăsați un comentariu
ECOFIN / Tax havens list has been updated. Politico: Eugen Teodorovici took EU Finance Ministers by surprise
Finance Ministers of the EU voted on Tuesday at the third meeting of the Council for Economic and Financial Affairs (ECOFIN) chaired by Romania, the… Mai mult›
Dozens of companies, mayoralties, sports teams, public figures, organizations and many ordinary people joined the protest "Romania wants motorways". Of course, the country did not… Mai mult›
Facebook announced Thursday that it has closed hundreds of false accounts promoting false content in the UK and in Romania and this is the first… Mai mult›
Laura Codruta Kovesi was indicted on Thursday in a second case. The section for investigating the crimes committed by magistrates accused her of having led… Mai mult›
The draft law on the so-called repatriation of Romania's gold reserve is either a populist diversion or another attempt to remove gold from the administration… Mai mult›
The protest of magistrates from Cluj Napoca. More than 200 prosecutors and judges, with white bands on their arm, came in front of the local… Mai mult›
Laws on judiciary, amended again by OUG: judges who were once prosecutors may be appointed as prosecutors
The Government approved on Tuesday an OUG that was not publicly debated, which amends several provisions from laws on the judiciary that refer to prosecutors… Mai mult›
"Iceberg" operation: ANAF announces that it selected 487 companies which are to be audited based on risk analysis
Virgil Pirvulescu, Vice President of ANAF at PwC Annual Tax Conference The National Agency for Tax Administration (ANAF) has identified 487 large and medium-sized companies… Mai mult›
Commissioner Corina Cretu: There is a risk that Magurele Laser will not be completed during this budget implementation
In the absence of a rapid response from the Romanian Government to the European Commission, there is a risk that Magurele Laser can no longer… Mai mult›
The Presidential Administration announced on Friday that President Klaus Iohannis, "as the head of Romania’s foreign policy decisions and Romania's representative at the external level,… Mai mult›
Further to the message on the impact of OUG 114/2018 transmitted on Thursday to the organizations in the Coalition for Development of Romania (CDR), AmCham… Mai mult›
Finance minister stopped borrowing money from the market. Teodorovici: We have funding resources for minimum six months
Minister of Public Finance (MFP), Eugen Orlando Teodorovici, has ordered to stop borrowing operations on the market because MFF would have all the money needed… Mai mult›
BNR: If we sold foreign currency to defend Romanian leu, as PSD wants, interest rates would explode and ROBOR would go over 5-7 percentage points
The National Bank of Romania wants a "loyal cooperation" with the Ministry of Public Finance, and that involves a prior consultation with the central bank… Mai mult›
The tax on bank assets was not included in the 2019 draft budget, published on Thursday evening by the Ministry of Public Finance (MFP). According… Mai mult›