The commercial exchanges between Greece and Romania were estimated at EUR 1.2 bln last year, down 20 per cent over 2008, on the background of the economic and financial crisis, and this year the value could remain the same or grow slightly, the president of the Hellenic-Romanian Chamber of Trade and Industry (HRCCI), Konstantinos Tsoukalidis (photo), declared yesterday in a press conference which announced also the organization of a business forum and an exhibition of food and beverages during February 24-25. The HRCCI official also said that around 20 per cent of the total commercial exchanges are represented by the food and beverage sector. “The food and beverage sector demonstrated an exceptional dynamism in both countries, because both countries have a very long tradition and a rich variety of products. This fact creates the appropriate context for the development of constructive bilateral relations,” he also added. Tsoukalidis estimates that the Greek investments in Romania will rise to around EUR 400-500 M this year.

“Although the total Greek exports dropped 20 per cent in 2009, the food exports remained at a stable level,” the general...

The Proprietatea Fund (FP) has ‘more and more chances’ to be listed on the Bucharest Stock Exchange this year, is the opinion of Finance Minister Sebastian Vladescu, who nevertheless refuses to name the exact date by which the process should be completed, Mediafax reports. He says the Fund needs to be managed by a SAI that should take care both of its portfolio and of the company as such. In addition, Vladescu says the signing of the agreement with Franklin Templeton Investments is expected to happen sometime after the February 10 General Assembly that will mandate the signing representatives. ‘That is a step forward towards listing’ the finance minister stated.

At the end of January, the Government mandated the representatives of the State to the Proprietatea Fund to empower, at the following AGA, the officials with a right of signing the final management agreement with Franklin Templeton Investments. At that date, the minister was indicating that the shareholders were going to empower the Chairman of the administrator selection board.

Another thing Minister Vladescu mentioned yesterday is that that the trading of the FP stock on the...

The Romanian Railways find themselves at a crossroads. On one hand they are trying to modernize and rebuild the infrastructure, while on the other hand thousands of employees from CFR Freight-Passengers-Infrastructure will be sacked. Meanwhile, the airline companies that introduce new internal routes are becoming a real competitor for the railways. In what concerns the market’s liberalization and the opening of the railway transport for passengers to competitors, the Transport Ministry (MT) representatives have stated that the goal of the 3 European legislative packages introduced in the railway transport domain (both freight and passengers) as early as 10 years ago was coherent liberalization in a stable and legal economic environment. According to the MT, its forecasted effects consist of hiking the efficiency, the quality and the availability of services. The EU directives show that member states can deny free access on the market when access to certain routes could endanger the economic balance of public service contracts. Thus, before taking a decision, the member state has to conduct an efficient and transparent analysis through the regulatory body. The regulatory...

Many politicians and analysts speak of potential renewed economic growth in Romania as of late this year, relying on the major western countries going out of recession, with Romania too being pulled along in the process. This is what should happen, given the country’s total reliance on Western Europe, first and foremost because over 70 per cent of its trade relations unfold with it.

This is what will happen actually, yet, having said that, it should be clear it would not live up to such on-par expectations, and that from the simple reason Romania has never been, nor is, or who knows if it would ever be, part of the western economic system despite formally and legally belonging to European Union.

While it was obvious the West going through a crisis will drag Romania down, Western economies surging back from crisis not necessarily means Romania’s economy will be pulled along by an equal measure and that, since the crisis unfortunately widened the gap between Romania and the West, despite this country being fully dependent on it.

While a paradox at first glance, a careful analysis will show this isn’t so. From global political and...

The value of commercial property transactions in Romania dropped almost six times to EUR 203 M in 2009 compared to 2008. Over 70 per cent of transactions made were with retail projects, according to a CB Richard Ellis (CBRE) report, Mediafax informs. Transactions worth EUR 1.161 bn were closed in 2009.

Investment activities nevertheless recovered a little in the second half of the year when total transactions worth EUR 147 M were registered, following a very low volume of EUR 56 M in the first two quarters. Even under such conditions, the second half closed with a transaction volume that was 25 per cent smaller than the one registered in the period of reference of 2008. The authors of the report say the intensification of investment activities in the second half of 2009 could be interpreted as a sign that that buyers and sellers’ expectations had finally met.

With the acquisition of the European Retail Park Braila and of the NH Hotel Bucharest, British investors led the investment market in 2009, covering 38 per cent of the total and confirming trends in Central and Eastern Europe. Investors were more interested in hotels in the first half of the year and...

The introduction of the fiscal deductibility for the interest rate of the real estate credits of the population could be a breath of fresh air for the construction sector and conduct to the relaunching of the economic growth, considers Peter de Ruiter, representative PricewaterhouseCoopers (PwC) in Romania, quoted by Mediafax. He told the ‘Romanian Tax, Low & Lobby” forum that the impact of such a measure for the state budget would be insignificant, but for the users such a stimulating measure could have a decisive influence on the decision to buy or not a house. “For the construction sector and actually for the whole economy, this could be a breath of fresh air and could conduct to the relaunching of the economic growth,” Peter de Ruiter said. He added that PricewaterhouseCoopers Romania considers that the fiscal authorities can and must do more to improve the efficiency of the fiscal collection....

Transilvania Bank launched a platform of services intended for the beneficiaries of European funds, and wants to finance projects worth EUR 100 M in the next 12 months. “We would like the projects which benefit from the new platform of services to have an average value up to EUR 2.5-3 M, but we haven’t set limits. Until now, Transilvania Bank has financed projects for the European funds worth around RON 200 M,” declared Leonard Cornoiu, manager European Programme Department, BT, quoted by Mediafax. He stressed that in the last three years Romania managed to absorb around 10 per cent of the funds provided by the European Union, in the context in which the state has the opportunity to use over EUR 30 bln until 2013. BT official pointed out that most of the times, according to the experience of the banks, the beneficiaries who have an idea for a project appeal for the first time to consultants, but do not inquire about the finances from the credit institutions. “The investments financed under the European programmes, except the projects from the rural, agricultural sector, cannot be mortgaged for the granting of banking funds,” Cornoiu said. The net...

The Chairman of the Committee for Industries and Services of the Chamber of Deputies, Iulian Iancu, has announced that Russia would again reduce natural gas deliveries to Romania. According to him, energy suppliers could run out of stocks in the next days, Antena 3 TV reports. ‘The Russian have notified the Romanian gas dispatch service that they would reduce deliveries to our country again, by 2 M cubic metres’ Iancu said. Representatives of the Ministry of Economy issued a press release yesterday to inform that ‘the supply of natural gas to consumers was normal.’ According to the press release quoted by Mediafax, the quantities of gas imported from Russia were within the provisions of the medium and long-term agreements – 8.9 M cubic metres per day. Romanian domestic production amounts to 32.2 M cubic metres and 8.9 M cubic metres are imported through the Isaccea station every day. The quantity of gas that is taken out of storage facilities every day is 22 M cubic metres. National consumption is 63.1 M cubic...

The increase of the guarantee ceiling for the credits under the “First House” programme will conduct to more expensive dwellings, whose price has steadily fallen the last year, the owner of the group of firms Pro Confort, Ionut Negoita, estimates. “The idea to increase the guarantee ceiling will not bring anything good. The average sum for the trading of the dwellings lately was around EUR 50,000. If the ceiling rises, the dwelling prices will rise as well, because the developers who tried to cheapen the flats below EUR 60,000, in order to benefit from the “First House” programme, will raise the prices,” Negoita declared, quoted by Mediafax. On another hand, the representatives of the association of BCA makers declared on Tuesday that the extension of the “First House” programme is a measure beneficial for the relaunching of the real estate sector and the partial unblocking of the construction market and proposed to raise the guarantee ceiling from EUR 60,000 now to EUR...

Radu Berceanu, the Minister of Transport and Infrastructure, claims that the snow clearing operations are leaving the Ministry’s budget without funds, putting at risk the rehabilitation of the pothole-ridden roads, ‘Gandul’ daily informs. Florin Dascalu, the director of the office for road maintenance from within the National Road Company (CNADNR), is of the same opinion, estimating that ‘in April we will run out of funds. That means we won’t be able to start the road rehabilitation campaign. Basically all the funds we have will be spent on snow clearing operations and on the servicing of debts.’

While most of Romania’s important roads, including its two highways, are partially or totally blocked by snow, the Ministry’s officials state that they can do nothing about it while three phenomena take place at the same time: blizzard, traffic jams and snow clearing vehicles trying as much as possible to clear the piles of snow. ‘One cannot perfectly handle this phenomenon. One cannot have at the same time snow clearing vehicles on the roads and good road traffic. There’s nothing one can do,’ Dorina Tiron, general...

The representatives of Bechtel company, the builder of Transilvania expressway, declared in a meeting with the unions that they don’t give up the layoffs until they are informed about the funds available for the works that have to be made this year, according to Ziarul Financiar daily. Bechtel management also said that if the Government finds the necessary financial resources, they will go on building this year the 2B section (Campia Turzii-Gilau) of 10.2 km from Campia Turzii – Turda segment.

“We had today (yesterday) meetings with the representatives of the unions, our intention is to fire as few people as possible, but we cannot build without money. Definitely, some of the 2,000 people will be laid off,” declared Bogdan Sgarcitu, communication manager with Bechtel. According to the representatives of the American company, the laid off persons will benefit from compensatory payments the equivalent of two basic salaries, and if the situation improves the layoffs will...

Dacia Logan model is traded only in South America, not in North America, according to the daily Adevarul. Officially, the model manufactured by the plant from Mioveni has not yet arrived in the USA in the original variant. However, the Americans will have the possibility to acquire soon the electric version of the Logan Pick up, but under the Electric Motor Car logo launched by Envision Motor Co.

The first to begin the trading of the pick-up cars with electric engine assembled on Dacia Logan models is Gene Gabus, former Chrysler dealer, through his firm Des Moines Motors. He states that the cars are assembled in Romania with US-made electric engines and are brought to the United States by Envision Motor Company to be traded by Des Moines Motors. However, Dacia officials say that they don’t know anything about the electric engine assembly line. Gene Gabus dealer declares himself amazed by the discretion of Dacia people. “How is it, the media from Romania didn’t know about the electric Dacia? We are selling it in America, and you, in Romania, were not knowing about is?” the American...

Toyota Romania recalled more then 12.000 vehicles to check on sticky accelerator pedals, a press release informs. Vehicle owners will get information letters from Toyota dealers who sold their cars and will be programmed for car checks. In Romania, like in all other European countries, there were no accidents caused by possible gas pedal malfunctions. Toyota Motor Corp said it is recalling nearly half a million of its flagship Prius and other hybrid cars for braking problems as it seeks to address criticism over the handling of its worst safety crisis. The world’s largest automaker is under fire for two other recalls covering more than 8 million vehicles worldwide due to problems with slipping floormats and sticky accelerator pedals. It also faces a potential rush of litigation for crashes linked to those problems and blamed for 19 deaths and numerous injuries in the United States over the past decade. Chastised by safety authorities and members of the Obama administration for moving too slowly on those recalls, Toyota President Akio Toyoda said he never believed the company was infallible, but it had always tried to repair defects swiftly....

BCR Leasing names new CEO

BCR Leasing has received a new CEO – Thomas Tolazzi, who replaced Claudiu Stanescu who had left the company at the beginning of the month, Mediafax informs. Thomas Tolazzi had held a senior management position in BCR in the risk management area. Tolazzi has been working in Romania for ten years. “I will work to make sure both that good sales continue and the risks we face are continuously addressed” says Thomas Tolazzi. The ownership of BCR Leasing is as follows: 92.14 per cent - Banca Comerciala Romana (BCR), 7.39 per cent – Financiara SA (company of the BCR Group) and the rest – natural persons.

New BMW X5 to be launched in Romania in June

The new BMW X5 model will crack the local market in June. The price will start from EUR 56,406 and, depending on motorization and equipping, could go as high as EUR 75,029, Mediafax reports. The model is available in four motorized versions – petrol engines (two – 3-liter and 306 HP and 4.4-liter 407 HP respectively) and diesel engines, also two, 3-liter 245 HP and 3-liter 306 HP. All the engine versions are in line with the...

Data of the National Statistical Institute (INS) confirm estimates published a few weeks ago. According to a release, the economy grew by 0.3 per cent in Q2 compared to Q1 of the year. On the other hand, economy was unable to recuperate enough on a year-on-year basis, reregistering a minus of 0.5 per cent. In fact, Romania has been in recession since Q3 of 2008, when the GDP started going down. In Q2 this year, the economy gained some strength, mainly thanks to export. Romania-made cars and telephones sold well, therefore the entire sector grew by over 20 per cent in H1 this year compared to H1 of last year.

According to INS, in Q2 of 2010, the industry grew by 5.9 per cent and compensated for the 8.3 per cent decrease suffered by the construction sector. Compared to Q2 of 2009, slight volume growth was also reported in Agriculture, hunting and forestry, fishing and fisheries (+0.7 per cent) and in financial activities, real estate activities, rentals and services for companies (+0.8 per cent). At the other end, activity volumes dropped in retail, automobile and home appliance repairs, hotels and restaurants, transport and telecom (-4.2 per cent) and in other activities...

The home consumption of fast-moving consumer goods in H1 dropped by 4 per cent in national currency from a year earlier, being the first decrease recorded in the last ten years, with personal care products and home cleaning goods being the most affected, a GfK press release issued yesterday states. Among the categories with the steepest volume falls the ones that stand out are deodorants (-21 per cent), universal cleaning products (-19 per cent), chocolate tablets (-18 per cent), the decrease being primarily due to the fact that they were purchased by fewer consumers. Total market shares in terms of value at a national level of the various forms of retail remained relatively constant in H1 of 2010 on a year-on-year basis. According to GfK, hypermarkets’ market share in the first half of the year was 21 per cent compared to 20 per cent the year earlier, supermarkets – 13 per cent compared to 12 per cent, discount stores – 8 per cent compared to 10 per cent and cash&carry stores kept their 2 per cent market share....

Financial analysts claim that renewing the agreement with international financiers is a must. Most consider this is the advisable strategy, ‘Adevarul’ reports. The idea of a new agreement for a loan is already being accredited in the public sphere. Some economists argue this is not the best approach. “The present agreement is still in progress, yet, at Cabinet level, the idea of a new agreement is already explored. Or, the focus should be on restructuring expenses, otherwise, the effect on investors may be the exact opposite,” investment consultant Doru Lionachescu, managing partner at Capital Partners, says. Economic analyst Ilie Serbanescu is persuaded the new agreement will not be a precautionary one, but yet another stand-by agreement. “The state is bankrupt, pensions and wages are paid out of loans. More than half of the loan will have to be paid by the selfsame state. Where are they going to find the money, under present market conditions?” the analyst wonders. Economist Aurelian Dochia argues that, in the present international context, it is hard to believe that an economy as the Romanian one is will be able to recover without external support. At the same time, Dochia...

Government will amend ordinance 58/2010 on the payment of social contributions corresponding to intellectual property activities. The amendments shall first receive the nod from the Economic and Social Council, Environment Minister Laszlo Borbely told Agerpres yesterday. He made the point it was Fin Min Sebastian Vladescu who came up with the changes, first read at Wednesday’s government session. Minister Borbely made the point the changes refer to the employer, and not the employee, going to submit the social contribution statements on intellectual property and other self-employed activities. Ordinance 58/201 sparked a heated controversy after thousands of people stood in endless lines to pay their contributions last...

Renault Group yesterday opened its largest car part centre based outside of France at Oarja. The new centre will distribute spare parts and accessories for the Dacia, Renault and Nissan brands in Romania, Agerpres informs. Situated at km number 102 on the Bucharest-Pitesti motorway, close to the Dacia plant and to the industrial suppliers’ area, the centre stands on a total of 65,000 sq m, being the fourth largest in the Renault world network made up of 29 such facilities. The spare part warehouse manages 70,000 car parts for the Dacia, Renault and Nissan brands, from 369 different suppliers – 206 from Romania and 163 for abroad – and delivers to a total of 110 clients in Romania and to clients based in 33 other countries. Nearly 40 per cent of the centre’s activity consists of export, with main destinations being France, Russia and Turkey, and most important parts being oil filters and rims. Renault Group Post-Sale Services Division Director General Jacques Daniel says the availability rate for car parts for the three automotive brands at the Oarja spare part centre is 95 per cent. The new centre was developed during a year, after Renault Group’s 2008 strategic decision to expand...

Forex reserves continue decline to EUR 31.55 bln

The country’s foreign exchange reserves held by the National Bank of Romania (BNR) suffered a slight negative correction in August for the fourth consecutive month, from EUR 31.58 bln to EUR 31.55 bln, of which EUR 733 bln were inflows and EUR 759 bln were outflows, central bank data shows. The gold reserve stayed at 103.7 tonnes, but its value rose to EUR 3.24 bln in the context of growing international prices. Official international reserves (foreign exchange and gold) at the end of August were EUR 34.79 bln, slightly up from the EUR 34.57 bln at the end of the previous month. Payments servicing external public debt (direct or guaranteed by the Ministry of Finance) and falling due in September amounted to EUR 78.7 M.

BCR launches real estate portal

Banca Comerciala Romana (BCR) yesterday launched Romania’s first property portal managed by a bank. Apart from the complex supply of residential properties in all of the country’s counties, the portal also provides information on procedures to follow when buying a home. The portal includes advice and recommendations on preparing property...

EximBank initiated a project of collaboration with the Management Authorities involved in the management of structural funds, which is meant to help companies interested in acceding European funds obtain access to information.

“The absorption of European funds is essential for economic recovery, and greater transparency and a more active communication are the main solutions to draw European funds more effectively. That is why we are trying, by this project of collaboration with the Management Authorities, to jointly promote ways of accessing European funds and banking products offered by EximBank to support trading companies and public authorities in their endeavour to accede to funds offered by the European Union,” Ionut Costea, the president of EximBank, stated.

In setting up this project, EximBank approached 17 Management Authorities and intermediating bodies (units meant to implement operational programmes at a regional level), with a view to initiating partnerships which will allow for joint action to expedite the absorption of European funds.

EximBank offers to companies and public authorities running projects financed out of structural funds a...

The 25 per cent wage cuts of National Bank of Romania (BNR) employees will remain in force, after the Government modified the law which imposed the cuts, Mediafax reports. However, the money resulting from the cuts will no longer be allotted to the state budget, but will remain instead at the disposal of the central bank, contributing to boost the bank’s statutory reserves, a Government spokesperson, Ioana Muntean (photo), stated.

The Government debated, on Monday, an emergency ordinance to modify the law by which BNR employees’ wages, alongside public sector wages, were cut by 25 per cent, to fend off potential sanctions from the European Commission (EC). The European Central Bank (ECB) issued a warning related to the emergency ordinance to modify the said law so that the saved amounts remain in the bank’s accounts, underlining this wouldn’t solve the problem of the central bank’s autonomy.

Thus, the Government has to return the money transferred to the state budget following the wage cuts, to prevent the violation of European Union Treaty provisions.

“Article II in the emergency ordinance bill stipulates that the amounts derived from the reduction of...

Romanian companies manufacturing goods for the local market announce layoffs, whereas multinationals are hiring more employees, according to a survey by “Gandul” daily newspaper. Microsoft, Amazon, Oracle, Ford and Dacia are among the top companies recruiting employees. “Foreign companies are more upbeat given business gets better. They are already readying for next year, when they expect things to go even better. We should say this only applies to foreign companies working for customers from countries where economy picked up. It is normal for them to hire more people given the rising orders,” said George Butunoiu, a human resources expert. The auto industry will be one of the chief employers in Romania, given investments made by Ford and Renault. Ford workforce will top 3,500, and 7,000 in the upcoming years. Amazon, the world’s biggest online retailer, will employ 12 more software experts at its new development centre. The work force, circa 30 so far, will double over the next two to three years, local company officials say. In early spring, Microsoft too announced it needed 70 more employees by year’s end, in addition to the 300-plus workforce in place. HP too is among the...

The results of American European Marketing & Enterprises (AEM&E), a company which reported, for 2009, at the Registry of Trade, a RON 15.47 bln-turnover and the same amount of profit, were not included when adding up the GDP and are “aberrant figures,” according to the National Institute of Statistics (INS), Mediafax reports. The institute explains that, following investigations, it emerged that the economic and financial results of American European Marketing & Enterprises were not included in the Gross Domestic Product, neither in 2009, nor in 2010, as a consequence of the fact that the company is not featured in the operating economic agents’ poll database used by INS in the calculation of macroeconomic indicators.

According to INS investigations, the company in question is not to be found in the city where it is supposed to operate, so that the Ministry of Public Finance was notified of this case, for supplementary checks. “To conclude, reiterating that this company’s economic and financial results did not influence the level and dynamics of macroeconomic indicators as calculated by the National Institute of Statistics, we cannot say, until these investigations are...

ECB President in Bucharest

Jean Claude Trichet, president of the European Central Bank (ECB), will arrive to Bucharest on September 4, HotNews.ro informs. He will attend manifestations which mark 130 years since the founding of the National Bank of Romania (BNR). Trichet will remain only 24 hours in Romania, as he is due back in Frankfurt on the following morning. According to organisers, the conference proceedings will be held in English, but will not be broadcast live.

Notaries forced to reduce property transaction fee by 10 pc

The Bucharest Chamber of Notaries Public is cutting real estate transaction fees by 10 per cent in Bucharest and in a few other counties, the measure being applicable as of today, in the context of the negative trend of the property market in the first seven months of the year. The counties that will benefit from reduced fees are Calarasi, Giurgiu, Ialomita, Ilfov and Teleorman, Mediafax informs. This year’s grid used by notaries to calculate minimum fees and taxes on apartment transactions in Bucharest was set at 30-40 per cent smaller values, the adjustment being called for by the decline of the property market...

Disgruntled about salary cuts, the blanket salary law and government’s offer over the minimum salary, teachers, police, medical staff and other public sector employees are readying for a new round of protests, Antena 3 reports. Farmers too threaten street protests against the Boc government’s lack of policies to address their discontent.

On September 2, the Agrostar Federation will mobilise trade unionists for protest rallies in each county seat. After one week of such protests, farmers are coming to Bucharest to hold a massive rally. Agrostar president Niculae Stefan says government has not met its pledges, as it failed paying subsidies to farmers, as stipulated by law. Stefan has repeatedly called on the agriculture minister to step down and announced this would be one of the protesters’ chief demands.

Trade unions announced major street protests unless the executive yields to union demand, Agerpres quoted Cartel Alfa vice-president Romulus Nita as saying.

However, Tonny Lybek, the International Monetary Fund (IMF) representative in Romania, yesterday said that salary-related spending in the public sector will be cut back to the year 2005 level of 7.4...

On August 19, Romania’s Finance Ministry filed to the European Central Bank a draft ordinance in which salary cuts applied to employees of the National Bank of Romania (BNR) were “masked,” after the previous ordinance had received a red light from the ECB, HotNews informs. ECB President Jean-Claude Trichet once again expressed his “concern” with the fact that the Finance Ministry fails to understand that it has no right to cut salaries within the central bank. According to the draft, the sums that result from cutting BNR employees’ salaries will no longer be sent to the budget and will remain within BNR instead. The calculus was simple. The resulting funds remain within BNR but then we take 80 per cent of them – the profit margin that BNR pays to the state.

Despite the diplomacy that always characterises this institution’s opinions, one can note the categorical crescendo of dissatisfaction with the attitude adopted by the draft’s authors. The ECB’s opinion is technical but still extremely clear for a specialist and it diplomatically says “please don’t try to fool us, it won’t work.” Referring to the sums resulting from salary cuts, the ECB points out that if they end up...

The index of trust in Romanian economy is on the rise in August, as consumers’ expectations rose and prospects of retail trade and constructions are more optimistic, according to a monthly poll of the European Commission. At the same time, the prospects in industry remain unchanged compared to the preceding month, and trust in the services sector dropped. Thus, the index of trust in the economy rose at 76.4 points in August, compared to 75 in July, marking the third consecutive month in which the perception of Romanian economy changed for the better.

Nonetheless, Romania ranks last but one in the European Union according to this index, taking precedence only over Greece (67.9 points). The countries boasting the highest index of trust in the economy are Sweden (115.4 points) and Germany (111.2 points).

Managers in industry were more optimistic about their order books; in particular they were upbeat about their export order books. Managers’ assessment of production observed in recent months and production and employment expectations remained unchanged. Meanwhile, managers’ assessment of their stocks of finished products worsened slightly. After the surge in July,...

The individuals who made, in the past five years, incomes from professional activities, without a work contract, will have to pay, retroactively, healthcare contributions for the past five years.

“The moment they come to file a statement of income here, citizens are asked to bring also, from the fiscal administration, a record of their financial situation for the past five years. If they haven’t paid healthcare contributions, they will be asked to do so,” officials of the National Healthcare Home stated, quoted by Money.ro.

Thus, if an individual was paid exclusively in royalties, the person in question would have had to go to the Healthcare Home to state one’s income and pay the healthcare contributions corresponding to their income. The provision refers, however, not only to those who were paid exclusively in royalties, but to all citizens who make work-based incomes, according to the Government’s Emergency Ordinance 58/ 2010, which imposes the payment of social contributions for all types of income. Officials of the institution say there is nothing new about that, given that the law instituting the obligation to pay healthcare contribution has been in force...

Activity in the processing industry and services will be characterised by a relative stability in the August-October period compared with the previous three months, company managers polled by the National Statistical Institute (INS) say. They anticipate that, in the period to come, the number of employees will continue to drop in all economic sectors end especially in small companies of less than 50 workers, Agerpres informs. On the other hand, industrial goods’ prices are expected to have a slight growth in the next three months. In the construction sector, the volume of production will decrease moderately and the stock of contracts and orders will decrease in the next three months. Construction work prices are expected to go up slightly. Retail managers in August anticipated a mild decrease of economic activity in the next three months. From a distinct point of view, over 24,000 residential building permits were issued in the first seven months of the year, more by 15.1 per cent compared to the same period last year.

At the same time, the average job vacancy rate in Q2 was of 0.59 per cent, down by 0.11 percentage points compared to the previous three months and by...

Five resort-like complexes will be developed on the Black Sea Coast in the Terra resort still to be developed near the 23 August commune. The new resort could attract dozens of thousands of tourists every year, especially German and Austrian ones, ‘Gandul’ daily says. The downside to it is that the state will need to invest in road infrastructure and utilities a total of EUR 7 M, because the road and the water and power supply network are provided by the local authorities. The local mayor hopes to receive the funds needed to start the project. “Every time she came to the seaside, (Tourism and Regional Development) Minister Udrea invited all the mayors in the county. She saw the plans, she was thrilled by the zoning plans, was happy about it and said it would be something nice. We asked her if she would help us and she said the money would come either from the state budget or from European funds. She told me: ‘Mugur, despite poverty, we will give it to you’. She means well,” Mayor Mugur Mitrana says. Despite the industry’s efforts, the all-inclusive regime has not been really successful in Romania, Corina Martin, President of the National Association of Tour Agencies (ANAT) said,...

Italian company CIR to develop wind turbines in Vaslui

Company Sorgenia, part of the Italian group Compagnie Industriali Riunite (CIR), is planning on building several wind turbines in Vaslui County, Romania. “At present, Sorgenia holds permits to develop wind turbines with a total capacity of 106 MW,” CIR group communication director Salvatore Rico told Mediafax. The permits obtained by Sorgenia in December 2009 and April 2010 were issued for the commune of Falciu, Vaslui County. The CIR group, established in 1976, conducts operations in the energy, media, automotive components, healthcare and financial services sectors. In its turn, CIR is under the control of Compagnia Finanziaria de Benedetti, a financial holding property of De Benedetti family.

Chinese companies slowly investing in Romania

Commerce and agriculture are two Romanian economic sectors Chinese businessmen want to invest in, ‘Adevarul’ daily writes. China has surpassed Japan to become the second-largest economy of the world after the United States. However, the three decades of impressive growth that China experienced were based exclusively on investments and exports, with...

Prime Minister Emil Boc stated, recently, at the Labour Ministry, in a meeting with representatives of the patronages that, according to official figures presented by the National Institute of Statistics (INS), in the second quarter there was positive economic growth and a growth in industrial production, but voiced a “moderate optimism,” Realitatea.net report. The Gross Domestic Product, in adjusted terms, rose by 0.3 per cent in the second quarter compared to the first, but remains considerably lower compared to the same interval in 2009, so that the economy contracted in the first six months by 1.5 per cent, according to data signal published by the INS. Moreover, Boc explained that, according to the analysis for the first seven months of the year budget expenses, as well as social assistance expenses, are dropping, as is the number of jobs in the public sector, while the state budget revenue started rising.

When asked what the economic figures for the second half of the year are, Boc pointed out this is still in progress, and that the only certainty, according to analyses made by the European Commission and the International Monetary Fund, is the fact that Romania...

The minister of Culture, Kelemen Hunor, stated, on Saturday, at the “Peninsula” Festival in Targu Mures that he disapproved of the artists’ tax strike, arguing that all incomes should be taxed, in a unified manner, and that all corresponding contributions should be paid, Mediafax reports. In the same context, Deputy Prime Minister Marko Bela stated that people who complained they had been faced with problems in filing the royalties’ statements were right, as there’s too much bureaucracy in Romania.

At the same time, the vice president of the Democratic Liberal Party (PDL), Ioan Oltean, stated, on Friday, in a press conference, that the present Government cannot afford to sanction such an important segment as that of journalists just because the latter do not support the ruling party. Moreover, Prime Minister Emil Boc stated, on the same day, that he is open to talks with the initiators of the tax strike so that the latter would understand that the Government’s Emergency Ordinance (OUG) 58/ 2010 was not aimed at genuine creators, but was meant to “eliminate” people benefiting abusively from royalties, such as drivers. At the same time, a spokesperson for the National...