The International Monetary Fund on Friday said it supported Romania’s proposal to relax the 2010 deficit target. In its annual review of Romania’s economy, the IMF applauded Romania’s efforts this year to put its fiscal house in order under an IMF-supported bailout package, forecasting a pickup in growth to 3.5 percent in 2011. An IMF mission is to visit Romania between July 26 and August 4 to assess the country’s performance under the 20 billion euro bailout. Finance Minister Sebastian Vladescu said on Friday the authorities will stick to a previously agreed budget deficit target for 2010 in the talks.

“(IMF) directors supported the proposed relaxation of the 2010 deficit target to accommodate the cyclical deterioration in the fiscal position since the last review,” the IMF said in a...

The value of the Romanian workers’ remittances dropped from EUR 5.156 bln in 2008 to EUR 3.026 bln in 2009, Mediafax informs. Nevertheless, Romania continued to be second in the EU when it comes to the level of remittances, Eurostat informs. Last year the sums sent back by Romanians living in EU states totaled EUR 2.668 bln, the highest level in the EU, compared to EUR 4.792 bln in 2008.

The remittances sent by Romanians working outside the EU stood at EUR 358 M in 2009, compared to EUR 364 M in 2008. Spain tops the table with EUR 4.820 bln in remittances sent from EU and non-EU states. Eurostat’s data covered 22 member states, four of which have zero remittances (Germany, Latvia, Slovenia and Finland).

The survey points out that Italy-Romania and Spain-Romania were the EU’s largest remittance corridors in 2007 and 2008. Thus, Romanians living in Italy sent back to Romania EUR 2.013 bln in 2007 and 2.202 bln in 2008, while remittances from Spain totaled EUR 1.289 bln and EUR 1.579 bln respectively.

Last year remittances from Romania totaled EUR 174 M (EUR 85 M towards EU member states and EUR 89 M towards non-EU states).

Eurostat notes that...

Finance Minister Sebastian Vladescu claims the situation of financial markets is by no means dramatic and Romania does not currently have cash problems, Mediafax reports.

The Ministry of Public Finance (MFP) is now concerned with the cost of financing, because the budget allotted to investments depends on it. In a press conference held at the Government HQ, journalists asked Vladescu to comment the rather pessimistic tone of messages sent by the National Bank of Romania (BNR) and the warnings issued by Central Bank experts about the ministry possibly running out of cash to pay salaries and pensions, because of how things go in the money market.

“You saw that, in Brussels, we even agreed to curb the banks’ exposure by 5 pc, as there is a decline of economic activity in Romania, they were allowed this flexibility. From MFP’s point of view, the important thing now is the cost of financing, because the cost of financing allows us - or not - to create a budget margin for investment projects,” Vladescu said on Friday.

The IMF, the European Commission (EC) and BNR decided Thursday in Brussels that the exposure of the first nine foreign banks that operate in...

Even if he does not like it, the economic situation makes it necessary for Mr. Isarescu to take the helm. A decade ago, Mr. Isarescu reversed the economic collapse and returned things on the right track. At that time, he did it as prime minister. Now, he must do it again, from the position of Central Bank governor. Even if he were specifically asked to become premier, he should not accept such an invitation - actually he should run like hell from it - simply because he can do far better things from his actual position. This is how things changed in the Romanian economy, or in what’s left of it!

he governor still has some buttons he can push which, if used in a right - but subtle - manner, can put things on a better track, at least by preventing them from deteriorating into a vicious circle. Today, a prime minister neither is, nor can become - no matter who will get this job - what he was in year 2000. After depriving the state from nearly all its positions in the strategic areas of the economy (by outsourcing them to the foreign capital), from oil industry to utilities and banks, the government no longer has the instruments and means to do something, let alone to...

Buyers of goods and services will receive a share of the money back from the state, in exchange for tax receipts, and will benefit from tax deductions for home rehabilitation works, and annual reference ceilings for these facilities are to be set by the Government, Mediafax informs.

Prime-minister Emil Boc argued that tax evasion can be prevented in this way. “We wish to apply these measures, by modifications to the Tax Code which will be proposed at the beginning of autumn, so that citizens who perform home rehabilitation works may benefit from bonuses, by tax deductions. The works they have done will be subtracted from the tax they have to pay. Moreover, a measure we envisage is that al those who have collected tax receipts up to a certain amount should benefit from a bonus from that amount, to encourage them to ask for tax receipts for products they pay in Romania, from bread to more expensive products, of medium and long-term use, or works,” Boc said.

Minister of Economy, Adriean Videanu, who was seconding prime-minister Emil Boc, explained that a certain percentage which will cover “an incentive amount” will be deductible out of the total of expenses on...

Tanasescu: Economy to recover in 2011

Like we pointed out in the previous edition, Mihai Tanasescu, Romania’s representative at the IMF, stated that the delegation will have three main goals, Agerpres informs. Thus, the delegation will analyze the rectification of the 2010 budget, will discuss the 2011 budget and will list the fiscal and monetary policies. The current mission, meant to review the fulfillment of the terms of the current agreement, will set the bases for the construction of the main indicators for the following year, Tanasescu added. He considers that 2011 will be the year of economic recovery for Romania. Although some voices in Bucharest suggested that the IMF could be asked to raise the fiscal deficit target, mainly because of the effects that the floods had on economic activity, the IMF representative dismissed that possibility.

Romania won’t sway between Nabucco and South Stream

President Traian Basescu recently stated that Romania will remain a firm supporter of the Nabucco project and that it won’t sway between Nabucco and South Stream, Mediafax informs. “If we are to talk about European energy projects we are...

Foreign investors estimate that this year’s FDI will fall below the 2009 level, Mediafax informs. Moreover, they claim that the H1 data shows that there still is a recession. The forecast is contradicted by the authorities who are staking on drawing FDI that would at least match the 2009 level. According to the UNCTAD report presented on Friday in Bucharest by the United Nations Center for Information, last year Romania drew USD 6.329 bln in FDI, 54 per cent less than it did in 2008. Nevertheless, that level placed Romania second in the group of new EU member states, after Poland, and 15th among the 27 EU members. The foreign investors’ representative believes that the measures adopted by the Government, namely cutting the public sector employees’ salaries by 25 per cent and hiking the VAT from 19 to 24 per cent, are lowering even further the chances of an economic recovery. On the other hand, the authorities state that Romania remains a preferred destination for foreign investors, offering a series of competitive advantages. In other developments, UNCTAD’s world investment report 2010 shows that in the first four months of the year Romania drew 81 greenfield investments, or 6...

In order to modernize an agricultural sector that has “two gears, a European and an archaic one,” Romania is relying on European funds and on a change of mentality among the rural population, Agriculture Minister Mihail Dumitru stated in an interview for AFP, Mediafax informs.

The official added that a significant improvement in Romanian agriculture could come by 2015 thanks to European support and foreign investments.

“The EU funds were the main engine of rural development,” Dumitru said, with the AFP noting that the Minister “congratulates himself” through that statement.

Nevertheless, fund absorption was very slow, falling victim, according to the specialists, to lack of financing, corruption and excessive red tape, the AFP writes. The Minister is also preoccupied with the ageing of the rural population as a consequence of the young people’s exodus towards the cities or towards Western Europe.

On the other hand, The Ministry of Agriculture and Rural Development (MADR) estimates that 15-20 per cent of the more than two million hectares cultivated with wheat will be affected by this year’s high volume of precipitations but there will be no...

According to the National Bank of Romania (BNR), in June personal and company deposits grew by 1 per cent compared to May and by 7.6 per cent compared to the same month last year to RON 170.08 bln, against the backdrop of a 5.2 per cent monthly hike in the population’s foreign currency denominated savings, Mediafax informs. The RON-denominated deposits totaled RON 105.5 bln in June, down by 0.7 per cent compared to May but 3.7 per cent higher than the level reported at the end of the first six months last year.

Moreover, in June non-governmental loans grew by 6.4 per cent over the same month last year and by 3.8 per cent compared to May to RON 210.8 bln, in the context of a 5.8 per cent monthly hike in the foreign currency denominated component. In June the RON-denominated loans grew by 0.5 per cent (0.3 per cent in real terms) compared to May to RON 78.46 bln, while the foreign currency denominated loans grew by 5.8 per cent expressed in RON (1.2 per cent expressed in EUR) to RON 132.3 bln....

Basescu calls for re-examination of public-private partnership law

The president Traian Basescu has recently sent, to the Parliament, a request to re-examine the public-private partnership law, arguing that the emergency ordinance OUG 34/2007 regarding the granting of public acquisition contracts is much more comprehensive that the said law, Mediafax informs. Moreover, the document states that the publication of the notice of intent for a public-private partnership in the Electronic Public Acquisition system (SEAP), according to art. 24 of the present law, may lead to confusion on the market, as a result of the failure to operate a distinction between the general legal regime set in the OUG 34/2006 and the derogative one, stipulated in the present law. “In this respect, we think it is necessary that the lawmaker should ensure the transparency of procedure set by the present law, using another means than its publication in SEAP,” the Presidency explains. “We consider a total transparency of procedures is needed, which will ensure a real competition, contributing to the creation of beneficial economic conditions for the public. Taking into account the exclusive...

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...