EC: Romanian Authorities Pursue Expansionary Fiscal Policy
The Romanian authorities are pursuing an expansionary fiscal policy that led to a substantial departure from the objective, according to a European Commission Staff Working Document for the European Parliament, the EU Council, the European Central Bank and the Eurogroup.
According to the document, Romanian fiscal policy turned pro-cyclical in 2016 and the deficit is expected to widen, which breaches the country’s fiscal framework, whose provisions are sound in theory but lack enforcement.
“With a worse fiscal balance, the public debt ratio is expected to deteriorate gradually but remain below 60 % of GDP. High tax evasion and low tax compliance remain a challenge,” EC said. (Evenimentul Zilei)
KPMG Report: Walking A Thin Line- 2017 Romanian Budget
KPMG has analyzed several of the most important projections of the government for 2017, in “Walking a thin line – 2017 Romanian budget” report.
According to KPMG, the budget is “a planning exercise, and similarly to a household or corporate budget it is built on forecasts, predictions are made, and the possibility of changes occurring is rather high”.
KPMG notes that economic growth is expected to be based on consumption, but long-term economic growth based only on consumption does not create the premises for sustainable and durable economic development, because this type of economic growth can only last as long as consumption continues, according to KPMG report.
Romanian President Klaus Iohannis also said he is concerned about the state budget, which he considers problematic and risky as revenues are overrated and there is a real risk of running a deficit higher than the EU limit of 3%. (Adevarul)
EC: Total Employment in Romania Down 0.6% In 2016
Total employment in Romania decreased by an estimated 0.6% in 2016 and is set to grow at a modest pace in 2017-2018, according to a European Commission Staff Working Document.
EC notes that the labor market strengthened further in 2015 and 2016 driven by robust economic growth, as unemployment dropped from 6.8% in 2015 to 6.0% in 2016 and is approaching its pre-crisis low.
According to the document, jobs were lost in agriculture and industry, but gained in services, reflecting the changing structure of the economy. At the same time, jobs were created in construction sector as economic growth has been picking up. (Capital)
President Klaus Iohannis To Attend 2016 DNA Activity Report Meeting
Romanian President Klaus Iohannis will attend, on Thursday, the activity report meeting of the National Anti-corruption Department (DNA) for 2016.
The DNA activity report meeting will be presented by anticorruption chief prosecutor Laura Codruta Kovesi. The meeting is scheduled to start at 11:00 hours and is expected to be attended by President Klaus Iohannis, interim Justice Minister, Ana Birchall, prosecutor general Augustin Lazar, head of the Superior Council of Magistracy (CSM), Mariana Ghena, CSM vice-president, Cristian Ban, the president of the Supreme Court, Cristina Tarcea, as well as chief-prosecutor of the organized crime prosecution department DIICOT, Daniel Horodniceanu. (Adevarul)
Dacia To Launch New Logan MCV Stepway At Geneva Motor Show
Dacia will launch the new Logan MCV Stepway model alongside a new limited edition available across several models at the Geneva Motor Show, on March 7, Renault said in a statement.
Logan MCV Stepway will have a boot capacity of 573 liters, front and rear skid plates, a Duster-like grille, side protective mouldings for the lower part of the bodywork and a specific interior, the company said.
The Logan MCV model is currently manufactured in Renault plants in Mioveni, Romania and Tangier, Morocco.
At the Geneva Motor Show, Dacia will also unveil a new limited-edition version of all the models in the Stepway line including the Sandero, Dokker, Lodgy and now the Logan MCV, as well as the Duster. (National)