Implied euro zone interest rates nudged higher on Wednesday as Greece unveiled further austerity measures, which analysts said may clear the way for the European Central Bank to press ahead with its exit strategy. Greece’s cabinet approved a sweeping new austerity programme on Wednesday, the third in as many months, in a drive to rein in a bulging budget deficit and secure European financial support, a government source said. The measures may pave the way for Greece to launch a syndicated bond deal, which if successful would ease some of therefinancing pressure on the country. The announcement came a day ahead of a European Central Bank policy decision, with markets waiting to hear the ECB’s next steps towards exiting its extraordinary liquidity measures. “Going into an ECB meeting, this should bias the ECB towards liquidity removal, as the need to keep conditions super-easy has lessened for the time being, which could put some upward pressure on money market rates in Europe,” said Credit Agricole CIB rate strategist Peter Chatwell.

The market widely expects the central bank to revert back to variable rate longer-term financing operations in the...

The Gross Domestic Product (GDP) estimate for 2009 topped RON 491.2737 bln in current prices, down 7.1 pc in real terms from 2008, according to data released by the National Statistics Institute (INS), Standard.ro reports. The budget deficit reported by Finance Ministry at RON 36.4 bln rose to 7.2 pc of the GDP value and to 7.4 pc of the GDP reported by the National Statistics Institute (INS). Romania pledged within the IMF agreement to keep the budget deficit bellow 7.3 pc of the GDP. “The technical memorandum of understanding with the IMF set the nominal target of the budget deficit at RON 36.5 bln. We met this target,” Gheorghe Gherghina, state secretary in the Finance Ministry said, quoted by Mediafax. He added that the figure announced for last year’s budget deficit could be subject to change but only after final GDP data will be released.

Lucian Croitoru, counsellor to the Governor of the National Bank of Romania (BNR), yesterday said that budget deficit capping is insignificant and won’t lead to imbalances. “Nobody can say Romania did not range within the limits set by the IMF accord, as far as budget deficit and inflation are...

BRUSSELS - European Commission President Jose Manuel Barroso unveiled a new 10-year plan for jobs and growth in the European Union on Wednesday and said member states needed to work far harder on coordinating economic policy. Setting out the Europe 2020 strategy - which succeeds a previous 10-year plan largely seen to have failed -Barroso said his ambition was for the EU’s 27 countries to coordinate policies to try to avoid divergences in growth and unemployment and prevent the risk of future financial crisis. “Divergences between member states have a direct impact on everyone else,” he said in a speech laying out the strategy. “We are more interdependent than ever. We need economic coordination now more than ever.” The strategy sets out targets for investment in research and development across the EU, for levels of employment, growth and energy efficiency, and on developing coordinated climate change and trade policies. “We need to focus on the single market in more areas,” Barroso said. “More competition, better trade opportunities. Closing our eyes to the world won’t make it go away. “But there is something that we...

Authorities have prepared a nice present for ladies, but not only, on March 8. Prime Minister Emil Boc urged Finance Minister Sebastian Vladescu to make sure all guarantee agreements for the ‘First Home’ programme would be signed with banks by the end of the week, so that programme would be up and running on Monday, March 8, as a gift for ‘Romanian ladies and gentlemen’. “I believe that, with some extra effort, we can conclude all agreements with the banks by the end of the week and prepare a March 8 gift for all Romanian ladies and gentlemen who wish to take part in the ‘First Home’ programme in any of its current shapes,” Boc said, quoted by Mediafax news agency. He added that “the ball is now in banks’ court” but that interested clients are not aware of that and expect the government to take measures.

The National SME Credit Guarantee Fund (FNGCIMM) has received ‘First Home’ participation intentions from a total of 21 banks, amounting to EUR 1.3 bln, almost the double of the government-set cap for 2010. BCR and BRD have demanded the biggest allocations. “The new-entries are Carpatica...

Bucharest Court of Appeal decided to admit the recourse filed by underground unionists against Bucharest Court’s decision, ruling their strike illegal, and turned down Metrorex case as ungrounded, Realitatea.net informs. Metrorex had requested Bucharest Tribunal in November to establish that the unionists’ strike from the metro was illegal. At that time, the Tribunal admitted Metrorex action and ordered the immediate cessation of the protest. The decision was attacked with recourse by the unionists. More than 1,000 of the over 4,200 employees of Metrorex did not work for several days, during 04.00-16.00 h in November 2009, as a result of the general strike on an unlimited period of time. That was the seventh general strike since 1990, the latest protest of Metrorex employees dating from 2005. Florian Crisu, secretary general of Metro Free Union (USLM), declared that the General Council of the Union meets next week to decide if they resume the protests. In November, unionists requested a rise of 20 per cent and a new collective labour contract, in the conditions in which the old one expires at the beginning of the month. In the two days of protest, 650,000 travelers...

National Bank governor Mugur Isarescu warned on Wednesday that the important pension deficit prevents far-reaching public investments, stressing that Romania’s pension system is not functional, Realitatea.net informs. “You cannot build expressways with a deficit which absorbs all the resources from public budget,” Isarescu explains. “The viability of pension system depends on contributions, and as long as productivity is low, there aren’t contributors, and then you cannot pay pensions and also build highways because the budget deficit will grow. We either pay the pensions or build expressways,” BNR governor said.

He reminded that Romania must cut its deficit to 3 per cent of GDP, a ceiling established through the EU Stability pact, which is also necessary for the accession to the Euro zone. Isarescu cautioned that many Romanians don’t understand yet how the public pension system operates, that it is built on the principle of solidarity between generations, and have the impression that the pension cashed by a person comes from the contribution of that person, like in the case of an accumulation fund. “Pensioners are not paid...

The National Bank of Romania will further cut monetary policy interest rate but insignificantly, Central Bank official Lucian Croitoru says. “The National Bank will cut again the key interest rate in the coming period, but insignificantly. Those who expect major falls will be disappointed,” Croitoru told a seminar on economic issues, quoted by Mediafax. He mentioned that there is a very big demand from private circles to more drastically decrease monetary policy rate, as a result of the 7 per cent GDP contraction last year, and of inflation. “This is a good support for the people to request decrease of the interest rate,” Croitoru added. However, he reassured everyone his opinions are expressed in his own name, and do not represent BNR’s opinion. BNR Board resolved, in the February 6 session to cut monetary policy interest rate by 0.5 points, to 7 per cent, after it had been diminished by another 0.5 points in early January, from 8 per cent to 7.5 per cent. As for the Greek money situation Croitoru said it is rather improbable for the Greek parent banks to request Romanian subsidiaries to take money out of the country because of liquidity problems....

ANAF inspectors, together with the customs officers and the Financial Squad commissioners last year notified the criminal pursuit authorities over a total prejudice of around EUR 1.36 bln, thus a tax evasion of around EUR 1.36 bln found out as a result of field inspections.

“This money could be used to pay allowances for all Romanian children for two and a half years, or pensions for almost two million persons,” ANAF president, Sorin Blejnar, said in an interview with RFI. At this moment, Sorin Blejnar says, VAT is a delicate segment from tax evasion standpoint. “In principle, I am speaking about VAT related to the intra-community acquisitions, especially vegetables, fruit, grains, meat and meat products. Of course, we have a VAT misuse connected with the price growth for imported products, especially consumer goods. Then we have a VAT misappropriation from previous years, as a result of natural person’s involvement in commercial operations, especially the real estate sector,” Sorin Blejnar explained with reference to budget revenues of the past year worth around EUR 38 bln, an amount which was not cashed because tax evasion represents around...

Fiscal-budgetary accountability bill goes through Senate

Senators yesterday passed a draft law and amendments on fiscal-budgetary accountability. The bill sets caps on budget rectifications during a given year, fiscal rules on overall spending, expenditures related to personnel and budget deficits, Mediafax reports. The bill, which deals with regulating multi-annual budget drafting procedures, provides the setting up of a fiscal council as an independent authority made up of five members aimed at providing an independent and expert analysis of macroeconomic and budgetary forecasts. Acting on a proposal from the budget committee, senators scrapped from the bill all provisions referring to the Fiscal Council’s ability to request relevant information, documents or data, even if classified, to fulfil its duties, yet the Council will comply with current legal provisions as regards treatment of classified information. Another Senate-passed amendment establishes that Fiscal Council members can only be re-elected once.

Romania – third-biggest retail decline EU-wide

Romania posted the third-sharpest fall in retail trade of all EU...

Swiss group Holcim’s cement and clinker sales in Romania dropped by 19 per cent last year compared to 2008, in the context of the economic crisis, while product prices went up 1.5 per cent. “The construction sector in Eastern and South-Eastern Europe suffered notable reductions. In Romania, Hungary and Bulgaria, private construction activity stagnated and a large number of public infrastructure projects were suspended because of the crisis. In the context, cement sales were seriously affected. Volumes dropped to a significant extent in Romania, Hungary and the Czech Republic,” reads a Holcim 2009 financial report quoted by Mediafax. Holcim owns three cement plants in Romania: Campulung, Turda and Alesd, 15 ecological concrete stations, a hydraulic binder station and four stations producing aggregates. The report also indicates that Holcim Bulgaria and Holcim Slovakia sales were severely affected last year by factors including massive cement imports. Overall, the group’s cement sales in Europe lost over 20 per cent as volume, down to 27 M tonnes last year, compared to 2008. Earnings before interest, tax, depreciation and amortisation from European operations...

Investments in commercial properties (offices, retail, logistics, etc.) from EMEA region, which includes Europe, the Middle East and Africa, will growth by 44 per cent this year, to EUR 115 bln, returning to 2004 level, Cushman & Wakefield estimates. “We anticipate growth volume by 44 per cent, to USD 152 bln (EUR 115 bln) – the same level as in 2004,” Michael Rhydderch, chief of EMEA division for cross-border investments, Cushman & Wakefiled say, quoted in a company press release. Cushman estimates that foreign investors will show a high interest for the EMEA markets this year, generating significant demand, but stresses that assets and properties that could determine material transactions are difficult to find. Thus, investors should be careful to identify “value” and opportunities given by market prices, without being “deceived” by hastily set prices and high...

The counties of Harghita, Covasna and Mures will jointly participate in Budapest’s ‘Hungexpo’ Tourism Fair with a stand of their own, separated from the official stand of Romania, ‘Romania libera’ daily reports. According to Harghita County Council president Borboly Csaba, the stand named ‘Szeklers’ Land Values’ spreads upon some 100 square metres and will display all the tourist attractions of the region, such as traditional, rural, cultural, recovery, spa&wellness, as well as conference tourism.

The Land will be represented in the Budapest tourism fair, due between March 4-7, by envoys of all three counties, several tourism associations, hotels and ecotourism bodies. “The attending county councils, together with tourism operators and NGOs, will meet the public, who will be given the possibility to know and discover the beautiful landscape, and cultural and tourist values of Szeklers’ Land,” said the Harghita County Council president. “It is important for us to participate with a joint stand, which is based on the Szeklers’ Land brand, because the region has a common historic-cultural heritage....

Millennium Bank Romania plans to cut mortgage credit margin to 5.95 per cent next week, from 6.5 per cent now, for loans representing less than 60 per cent of the guarantee value, a press release informs. The bank will maintain a 6.5 per cent margin for credits with borrowed value accounting for 60 per cent to 80 per cent of the real estate cost. According to the president of the bank, Jose Toscano, mortgage loans will represent the bank’s main business direction, aiming to double its portfolio this year. Millennium Bank Romania, member of the Portuguese group Millennium BCP, began its activity on October 11, 2007, having now a territorial network of 74 units. The bank last year recorded losses of RON 161 M (EUR 38 M), as a direct result of investments. Assets of the bank rose 62 per cent in 2009, to RON 2 bln, in the context in which granted credits’ balance exceeded RON 1...

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...