Economics
Half of Romania's impact companies are in difficulty, CITR study shows
Three percent of the total Romanian companies represent the engine of the domestic economy and half of them are in difficulty, according to the third edition of the CITR Group study on the evolution of the impact companies between 2013 and 2015. The number of these impact companies is shrinking, from 23,384 in 2013 to 19,564 in 2015. If this shrinking trend persists, the whole economy may be affected by contagion shows the CITR study. All this in the context in which Romania is not able to generate enough new entrepreneurs to compensate for the imbalance in Romanian business. more »
OMV sues Romania at ICC for breaching privatization contract
Austrian company OMV, the major shareholder of Petrom, sued the Romanian state in March 2017, at the International Court of Arbitration (an institution that is part of the International Chamber of Commerce - e.n.) in Paris, for breaching the provisions of the privatization contract regarding the recovery of environment investments, the oil company's report for 2016 reveals.  According to the privatization contract, the Romanian state committed to pay to OMV the amounts that this company would have invested in environmental works related to historical pollution, amounts that were estimated at 542 million euros.  more »
April 25, 2017 09:25
Romania, alongside three other EU Member States, had a government deficit (calculated based on ESA methodology, the European Accounts system - e.n.) of 3 pct or more of the GDP, according to a preliminary estimate released on Monday by Eurostat. In contrast, at the end of 2016, Romania was among the EU Member States with the lowest level of government debt against the Gross Domestic Product (37.6 pct). Eurostat points out that it has not made any changes to the data reported by the Member States. The Eurostat data differ from the figures presented in the execution of the consolidated general budget for 2016, according to which last year ended with a 18.3 billion lei deficit, 2.41 pct of the GDP respectively, on the increase by almost one percentage point as compared to the negative balance of 1.47 pct of the GDP in 2015.  ...more »
April 20, 2017 13:15
Renewable energy ensured last year 42.29 percent of the national production of electricity, the highest share being held by the hydro energy, a report of the National Regulatory Authority for Energy (ANRE) regarding the electricity market in 2016 reveals. Therefore, the hydro energy stood at 29.88 percent of the country's overall electric energy production, the wind energy was 11.07 percent, the photovoltaic energy 1.18 percent, and 0.16 percent was produced of biomass. The hydro energy represented the main source of producing energy on a national level, surpassing coal, that ensured 24.37 percent of the total. Nuclear sources represented 17.9 percent, gas contributed to 15.18 percent of the production and crude oil to 0.26 percent of the total....more »
April 14, 2017 14:08
The share capital of the Bucharest Stock Exchange (BVB) will grow to 80.7 million lei after the decision by the Extraordinary General Shareholders Meeting on the merger by absorption with SIBEX, a release on the BVB website reads. "By majority of votes of the shareholders present and represented in the meeting, the merger through absorption is approved between the Bucharest Stock Exchange as absorbing society and SIBEX - Sibiu Stock Exchange, as absorbed society, in accordance with the terms and conditions foreseen within the merger draft dated 24 February 2017," the document says.  ...more »
April 14, 2017 14:08
The board of the Financial Oversight Authority (ASF) has fined NN Pensii pension company 1 percent of its share capital, namely 750,000 lei, for having sent an e-mail to its costumers alleging that public talks had been held about Romania's privately-managed pension plan being nationalised, ASF Deputy Chairman Ion Giurescu said Thursday.  'Following the statements released by NN on April 11 to the fund's contributors, we decided yesterday [Wednesday] to hold a hearing of the NN Fund administration board made up of three people: Marius Popescu, Raluca Tintoiu and Madalina Ecaterina Ducan. Raluca Tintoiu is also the manager of NN Pensii. Only two of the three showed up, as Marius Daniel Popescu was on leave....more »
April 14, 2017 14:06
The Public Finance Ministry is working at a draft act amending the Tax Code, with envisaged measures including the introduction of a 10 percent flat tax from 1 January, the granting of certain tax deductions and the introduction of the fiscally acknowledged household, Finance Minister Viorel Stefan announced.  "Joint teams have been working at the MFP (...) on transposing into a regulatory act the idea to reorganise the way the tax income is administrated, aiming to reintroduce the incomes' globalisation and the global incomes' taxation. This under no circumstances means new taxes, new forms of taxation, we talk about the same flat tax which is today 16 percent and the intention is to make it 10 percent starting with 1 January 2018, and apply it to the globalised incomes, to all incomes regardless their source," Stefan told in a press conference at the Victoria Palace....more »
April 14, 2017 14:00
Under a government resolution, power and heat producers and administrative - territorial units / intracommunity development units that produce electricity from renewable sources have a total of 100.6 million euro worth of state aid allocated for the next 4 years.  The implementation of the state aid scheme is aimed at increasing the use of less common energy sources by growing the share of renewable energy of the total primary energy consumption and cutting carbon emissions by partly replacing fossil fuels (coal and gas), the government said in a release.  The carrying out of these projects is intended to increase the installed biomass, biogas and geothermal power and heat capacity by 60 MW....more »
April 10, 2017 15:44
Prime Minister Sorin Grindeanu declared that the switchover to the euro will be possible only after the Romanians' incomes get close to earnings in other European Union member states. "Let's make sure that this monetary convergence is done in parallel with the convergence of incomes. We believe that the switchover to the euro can be done only after the Romanians' incomes get close to earnings in other EU member states," Grindeanu told the meeting of the interministerial Committee on the switchover to the euro, held at the Victoria Palace of Government quoted by Agerpress....more »
April 07, 2017 15:14
The establishment of some public procurement central units could annually generate savings of over 1.8 billion euro to the state budget, which represents 10 pct of all public procurement conducted each year in Romania, is the conclusion of a diagnosis-study on resources' waste in the absence of national coordination, presented by experts of the Institute for Public Policy.  ...more »
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