Prime Minister Sends New Letter To President: I Have The Exclusive Right To Select Ministers
Romanian Prime Minister Viorica Dancila sent a new letter to President Klaus Iohannis on Monday, requesting the immediate appointment of her proposals for new transports and development ministers.
The Romanian chief of cabinet argues that she benefits of the exclusive legal right to select individuals proposed to occupy cabinet positions, and in this context requests the appointment of Lia Olguta Vasilescu as regional development minister and Mircea Draghici as transports minister.
“Unfortunately, until now, despite all of our efforts and the openness we showed, we were confronted with your express refusal to appoint the individuals nominated for ministers, initially without a clear reason or based on general and baseless remarks, and later for the reason of not meeting legal conditions for these proposals,” the prime minister wrote in her letter.
“It is very important to mention the fact that the verification of the legality of the two nominations was made by the Government’s secretary-general, before the proposals were filed,” she added.
This comes after President Klaus Iohannis announced on Thursday that he will refuse proposals for the two offices again, arguing that their nomination files were incomplete. This was the third time in the past two months the head of state refused to appoint Dancila’s proposals for the offices. (romanialibera.ro)
Romania Raises RON110M Selling New 5-Year Bond Issue at 4.73% Average Yield
Romania’s finance ministry on Monday raised just 110 million lei (EUR23.36 million) out of a planned RON400 on a new five-year benchmark bond issue, maturing in June 2024, at an average yield of 4.73%, central bank data showed.
Demand was skint, standing at just RON241 million.
So far this year Romania’s finance ministry has failed in raising its planned amounts, resorting to partial allocations and even rejecting all bids on state paper, as local banks pushed for higher yields as they face uncertainty over a surprise tax on assets introduced in late December 2018.
The Romanian government introduced in late December 2018 a surprise tax on bank assets that will have banks pay a progressive tax of 0.1%-0.5% of assets if money market interest rates exceed 2%.
It is yet unclear whether the tax would be levied annually or quarterly. (adevarul.ro)
Leu Hits New Low Of 4.7081 Vs Euro
The Romanian leu hit a new low against the euro on Monday, standing at 4.7081 units to euro at midday, down 0.23% from 4.6975 units per euro on Friday.
This is the fifth day of consecutive decline for the leu, keeping last week’s trend.
Last week, the leu kept depreciating against the euro, touching record lows of 4.6975 units per euro on Friday, down 0.18% on the day from 4.6890 units/euro on Thursday, following a 0.13% decrease against Wednesday’s level of 4.6830 units/euro, due to a 0.02% decline from Tuesday’s level of 4.6822 units/euro, after a 0.11% decrease against Monday.
The leu firmed slightly against the euro on Monday (Jan 14), gaining 0.02% and standing at an average midday rate of 4.6771 units to the euro.
The leu also depreciated against the US dollar on Monday, standing at 4.1377, from 4.1192 units on Friday.
The leu also lost ground against the Swiss franc on Monday, standing at 4.1501 units, from 4.1441 units on Friday.
The price of gold fell to RON170.1500 per gram on Monday, from Friday’s level of RON170.2283 per gram. (puterea.ro)
Romania Had Biggest Government Deficit In EU In 3Q/2018
Romania had the biggest government deficit in the European Union in the third quarter of 2018, of 3.6% of gross domestic product, Eurostat data showed Monday.
At the opposite end, Malta posted a surplus of 3.8% of GDP, followed by Portugal and Bulgaria, with surpluses of 3.6% of GDP each.
Romania’s government deficit stood at 3.8% of GDP in the first quarter of 2018 and at 2.3% of GDP in the second quarter.
In the EU 28, the government deficit stood at 0.6% of GDP in the third quarter, wider compared with 0.4% of GDP in the second quarter. In the euro area, the government deficit stood at 0.5% of GDP in the third quarter, up from 0.3% of GDP in the second quarter.
Twelve member states registered surplus in the third quarter, the data showed.
In the EU 28, government revenues accounted for 44.9% of GDP in the third quarter, the same as in the second quarter, while expenditure accounted for 45.5% of GDP in the third quarter compared with 45.3% of GDP in the second quarter. (romanialibera.ro)