The Sun Plaza shopping centre proved to be a success on the very opening day. Yesterday, though working day, thousands of people of all ages rushed in to attend the inauguration event, Antena3 TV reports. The crowds were happy to queue for discount coupons accepted by various shops hosted within the centre, but also to participate in a raffle held on the occasion. Despite the thousands layoffs and pay cuts, Romanians still seem to be quite fond of their shopping.

The Sun Plaza is Romania’s biggest mall, with a built area of 219,000 sq m, bigger than the AFI Palace Cotroceni or Baneasa. The mall was developed by EMCT, the investor being Sparkassen Immobilien, part of Austrian group Erste Bank. The shopping centre is served by a car park with a capacity of 2,000 places, the service being free for the first four hours. A connection will be built to the Piata Sudului subway station via an underpass to be completed end of March. The Sun Plaza includes a Cora hypermarket, various other stores: Baumax, Mobexpert, Flanco, as well as lifestyle and fashion areas with tenants such as Zara, C&A, Marks and Spencer, Debenhams, New Yorker, Hervis, Sprider, Koton, Diverta, Humanic...

OMV Petrom (SNP) will continue in 2010 talks with authorities in view of aligning natural gas price, ANRE infringing European directives by establishing the price, Mariana Gheorghe, general manager of the company, yesterday said in a press conference. “In the regulatory practice connected with the final price at the user, the National Regulatory Authority in Energy (ANRE) recommends or induces a certain price level, which is less than half of the import one. In this way, the authorities actually regulate a price which is liberalized. It is a violation of the market economy principles. The European directives are infringed, because ANRE makes discrimination between a local producer and importers. We have the same product, but through an administrative measure the price is maintained at half. We don’t say that it must be at the level of the import one, but it is necessary to allow the market mechanisms to function,” Gheorghe said. According to the data of the company presented at the press conference, the price of the gas produced in Romania was USD 162 per 1,000 cu m last year, while the price of the imported gas was USD 353 per 1,000 cu m.

Profit up...

The Paris-Strasbourg-Bratislava high-speed railway line should be extended towards Budapest, Bucharest and Constanta, and investment should represent one of the major projects of the Danube Strategy, Prime Minister Boc yesterday showed during the Danube River Basin Stakeholder Conference. Boc pointed out the Danube Strategy represents an excellent opportunity to identify and propose a list of transnational projects that would be implemented jointly by riparian states.

‘An example of such a major project that can be carried out by the common will of the riparian countries is the fast track train that connects the core of Europe with the South Eastern part of it. I am referring to the Paris – Strasbourg – Bratislava railway that must be extended to Budapest, Bucharest and Constanta in the framework of the TEN-T’s (Trans-European Transport Networks) Program,’ the Romanian PM said.

On the other hand, PM Emil Boc said the EU Strategy for the Danube Region ‘remains one of the top priorities of the Romanian Government. Re-energizing regional cooperation within an inclusive and effective format is essential for creating the...

The investment programmes and projects in tourism financed this year from state budget with a total of EUR 40 M, approved by mid-February by the Executive, at the proposal of the Regional Development and Tourism Ministry, stipulate the construction of a spa and an amusement complex in Snagov, the rehabilitation of Sinaia’s royal resort and the development of Lacul Morii amusement infrastructure. The list also includes ski areas adjustment in over 20 localities, and tourism infrastructure development in several resorts, Agerpres informs.

Development Ministry also plans building a swimming pool in Arad, spas in Beius, Bors and Sacuieni, and an aqua park in Baile Felix, all of them in Bihor county, and also rehabilitation of tourism routes in Fagaras, Piatra Craiului and Bucegi massifs.

In Ocna Sibiului, a park will be developed and the open air salt mines will be upgraded. Investments will also be made in the development of the skiing domain in Semenic mountains (Caras-Severin county). Modernization of several ski areas - Nucet (Bihor county), Baisoara (Cluj county), Sugas-Bai (Covasna county), Borsec (Harghita county), Durau (Neamt county) and others - was...

In a press release yesterday, the Ministry of Economy, Commerce and Business Environment (MECMA) has informed that an American company will invest approximately USD 300 M in Romania’s industrial equipment sector ‘in the near future.’ The information was offered by US Ambassador Mark H. Gitenstein in a formal meeting with Economy Minister Adriean Videanu this week, Mediafax informs. The stage of bilateral economic relations and the domains of interest for hiking US investments in Romania were analyzed during the talks. The US Ambassador pointed out the American companies’ interest for the Romanian market remains constant and added there is a company planning to invest approximately USD 300 M in Romania. Videanu explained that, apart from the company mentioned by Gitenstein there are several American companies that want to invest in Romania, including in the energy production sector. In his turn, Videanu presented the project on restructuring the energy sector in Romania by creating the Hidroenergetica and Electra companies. In January General Electric signed an eight-year contract with Nuclearelectrica, being set to provide maintenance services for reactors...

Labour Minister Mihai Seitan yesterday said the labour market might recover in March as unemployment had stagnated over the month of February. In his view, the fact that unemployment rate remained the same as in January – 8.1 per cent – is ‘a modest, yet certain signal’.

‘I don’t believe a total of 1 M employed people will be reached, even if unemployment continues to grow’ Minister Seitan said during a workforce debating session. He added Romania might end this year with lower employment rate than the December 2009 one. Another fact brought up by the labour minister is that Romanian education has broken from reality of the labour market and the vocational re-training courses paid for with public money have produced too many confectioners and barbers. The official says that less than 10 per cent of the re-trained workforce has found jobs. Minister Seitan’s statements contradict those from President Basescu who, eight months ago, was urging education minister, then Ecaterina Andronescu, to adjust school curricula to the Romanian economy. ‘We are running short of auto mechanics and car body repair shop workers trained...

40 pc of Romanian- registered cars are Dacia

Approximately 40 per cent of the 4.23 M vehicles registered in Romania are branded Dacia brand, while 10 per cent are Volkswagen. Brands such as Opel, Daewoo and Renault each contribute with over 200,000 motor-vehicles to the national fleet, according to HotNews.ro that quotes the Driving Licences and Vehicle Registration Directorate. About half a million Dacia vehicles were sold during the ‘Logan epoch’ – since 2004 – the rest of them being pre-2004 making. The other local brands registered in the country are Aro – over 35,000 units – and Oltcit – over 46,000 units. Luxury brands have also had a notable presence despite the state of Romanian roads: 100 Ferrari, more than 50 Rolls Royce, over 40 Laborghini and 325 Hummer. The two German premium brands BMW and Mercedes have over 82,000 and 77,000 registered vehicles in Romania respectively.

Toyota faces tough road to redemption after grilling

Toyota Motor Corp’s president apologized to U.S. lawmakers and ended the day in tears, marking a potential climax to his company’s safety crisis...

The change of legislation in the area of early loan re-payment penalties will lead to more competition among banks, to lower interest rates and meant to re-start lending process, Competition Council President Bogdan Chiritoiu stated yesterday. ‘The Competition Council endorses these proposed changes of the relevant legislation. Although the Romanian Banks’ Association shows reservations in the matter, I trust we will find understanding and all the actors involved will prove reasonable’, Chiritoiu said, according to Mediafax. The banks have until September to amend all credit agreements concluded with individual customers in order to adjust them to the new EU regulations in the field and won’t be able to charge early re-payment penalties on floating-interest loans. Such penalties are capped to 1 per cent in respect of other loans.

In an interview with the ‘Financiarul’ newspaper published Thursday, Bogdan Chiritoiu says the crisis gives a temporary framework for granting state aid. The European Union has devised a special state aid tool for the recession period. ‘In this particular area, we have given a scheme for Eximbank and one...

Public debt peaks to 29.29 pc of GDP

Romania’s public debt amounted to RON 148,05 bln, at the end of 2009, worth a 29.29 percentage of the Gross Domestic Product, data from the Ministry of Public Finance show. On December 31, 2008, the country’s debt was worth RON 109, 75 bln, amounting to a percentage of 21.78 of GDP. At the end of 2009, 47.5 per cent of public duty was in national currency, 41.11 per cent was in euros, 6.29 per cent was in dollars while 1.38 was in yens and 3.72 in other currencies. As far as financial tools, the biggest percentage of public debt was made by means of state loan contracts (38.01 pc) and by means of treasury bonds (17.03 pc), state bonds (16.82 per cent), eurobonds - 6.61 per cent, financial leasing - 0.07 per cent, and other tools included loans out of State Treasury’s General Account, used to finance the state budget deficit, worth 21.47 pe cent.

EIB invested EUR 1.473 bln in Romania last year

Around 1.9 per cent of credits’ record volume worth EUR 79.102 bln granted last year by the European Investment Bank (EIB) went to Romania, our country benefiting in 2009 from loans of EUR...

Cosmote Romania’s revenue last year was up 36.1 per cent to EUR 423.2 M and the operating income before depreciation and amortization (OIBDA) increased almost three times to EUR 66 M, the number of customers having grown by over a million to 6.92 M users. For 2008, the company posted a revenue of EUR 311 M and an OIBDA of EUR 22.5 M, also reporting 5,894 M customers in total at the end of the year.

Cosmote Romania has reached over 23 per cent market share thanks to the 3G licence obtained after Zapp acquisition and will now focus on expanding presence in the broadband and corporate segments, shows an OTE group (to which mobile telecom operator Cosmote belongs) report. In Q4, the company’s revenue was up 4.7 per cent from EUR 107.7 M to EUR 112.8 M, but the OIBDA lost 6.7 per cent from EUR12 M down to EUR 11.2 M. Cosmote Romania has made it clear it intended to focus on expanding presence on the broadband and corporate markets. In Q4, Cosmote Romania business was affected by the declining large margin inter-connection and falling roaming-generated revenues, the report shows.

Cosmote Germanos and Romtelecom belong to Hellenic telecommunications group...

Romtelecom revenue last year dropped by 7.2 per cent to EUR 807.7 M, but the operating income before depreciation and amortisation (OIBDA) idled at EUR 252 M, with the business being affected by adverse economic conditions and customer migration to competition, reads the annual report by Hellenic telecom group OTE, majority shareholder in the Romanian company. Romtelecom’s OIBDA in 2008 was EUR 253.7 M and reported revenue of EUR 869.9 M. 2009 results were also sustained by cutting costs in connection with the willing withdrawal programme to EUR 8.6 M from EUR 38 M in 2008. In as far as the telecom provider’s customer base goes, the total number of landlines last year dropped by 7.4 per cent from 2,961,053 to 2,741,166 units. On the other hand, Romtelecom recorded notable upturns in respect of the number of broadband internet (ClickNet) and satellite TV (Dolce) subscribers.

‘Despite the economic crisis and tough local market conditions, last year Romtelecom successfully grew the number of revenue-generating units by 4.1 per cent compared to 2008, to a total of over 4.4 M. The broadband internet and digital TV experienced the best growth rates –...

IBM Romania has in national premiere unveiled the new IBM POWER7 technology. This is a new type of system capable meant to optimize infrastructure of an organization and designed for handling a volume of work that calls for the real-time management of a high number of transactions based on a huge database. At the same time data offered by billions of smart devices can be analyzed. Moreover, POWER7 benefits from very high speed with execution times that fall below one millisecond.

The program offers support to a number of 1,000 virtual servers or partitions on a single system and allows the users to attain a degree of utilization of 90 per cent with the help of virtualization software. At the ‘IBM Information Infrastructure’ forum the IT company also presented the IBM Information Archive program. The program is designed as an archive depository for all types of contents, both structured and non-structured. Scale Out Network Attached Storage (SONAS), another program, is a new scale-out storage system that creates a virtual storing environment for all the data from several servers and storage systems and that offers access to billions of files irrespective of...

Orange Romania’s last year’s revenues were down 19.4 per cent to EUR 1.055 bn from EUR 1.31 bn in 2008, in the context of deteriorating economic conditions, but the provider’s total number of customers grew by 6 per cent from 10.355 M to 10.995 M, according to a France Telecom report. Excluding the impact of regulating decisions, the company revenue dropped by 16.7 per cent, Romania being among the most severely crisis affected markets from the viewpoint of the French telecom operator, a group’s press release shows. Orange Romania last year gained approximately 640,000 customers and 301,000 in Q4, from 10.694 M reported at the end of September to 10.995 M at year end.

‘The company performance is consistent with plans, although the whole entire economic environment this year has poignantly sensed the economic crisis effects. After two consecutive quarters when Orange had been in the lead in terms of the number of new customers brought into the network, its customer base was still growing in Q4. Although consumption in the network went up thanks to the competitive market supply, the level of the revenue continued to bear the scars of the...

UPC gathers 7,000 HD subscribers in five months

UPC Romania in February had over 25,000 subscribers to its digital TV services provided via a DVR, 7,000 of whom are also subscribers to the high-definition TV service, a product launched only five months ago, Severina Pascu, Chief Financial Officer of the cable communications operator yesterday said. Liberty Global group data informs UPC at the end of 2009 had a total of 1.25 M subscribers, down 1.09 per cent compared to 2008, yet more then in the previous quarter of last year. ‘With a view to our customers’ growing interest in the service (HD TV), only five months after release, we have already expanded our HD programme suite including three more channels and offering a package of eight channels for the same price (RON 15/month). We are optimistic about our sales trend in the segment, especially since over five per cent of HD TV subscribers are new or returning customers seeking this particular service’ Severina Pascu explained. UPC launched its HD TV service last October. In Q4 2009, the number of UPC telephony and internet subscribers was up 21.3 per cent and 12.6 per cent respectively compared...

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...