Amendment: Special Pensions For Local Elect Officials
The special committee drafting the administrative code adopted an amendment which sets that mayors, deputy mayors, presidents and vice-presidents of county councils elected after 1992 will receive special pensions within the limit of three terms in office. The committee issued a favourable report for all amendments brought and the provisions will be subject to vote in Parliament. The Senate is the first chamber notified, although Constitutional Court judges partially admitted on Wednesday the notifications submitted by PNL and USR parties regarding the decisions to set up special parliament committees. Thus, the Constitutional Court ruled that neither the committee for administrative code nor the committee regarding the national security laws have the right to legislative initiatives. (romanialibera.ro) PSD Head Before Planned Rally: “We Are Not Scared And We Won’t Back Down“ Social democrat head Liviu Dragnea said the political party he runs is not at all scared by those who plan to block its rally scheduled on Saturday. Dragnea also said some people will be “provoked” by others to post online various messages alleging they were threatened by the Social Democratic Party (PSD) to join the rally. Liberal head Ludovic Orban said he keeps hearing about the abusive manner in which employees of state institutions, city halls, state companies and public services subordinated to county councils are being recruited to be brought to PSD’s rally.Bucharest general mayor Gabriela Firea had said a huge rally will be organized on June 9 in Bucharest to uphold the government run by Prime Minister Viorica Dancila. Similar rallies are also expected in other localities across Romania. (cotidianul.ro)
Lawmakers Adopt Bill Setting Up Sovereign Development and Investment Fund Romanian parliament’s Lower Chamber on Wednesday adopted as decision-making forum a bill that sets up the Sovereign Development and Investment Fund (FSDI), with a social capital of RON9 billion.The fund’s portfolio includes controlling or minority stakes in 33 state companies in the pharmaceutical, transport and energy fields, such as electricity provider Electrica, natural gas provider Romgaz SA and pharmaceutical company Unifarm SA.
The Lower Chamber’s economic policies committee included in the bill 10 companies that are currently unprofitable and which weren’t included in the piece of legislation during its time at the previous parliament chamber, the Senate. These include railway operator CFR SA, postal service operator Posta Romana and Traian Vuia airport in Timisoara.
“FSDI will aim at developing and funding profitable and sustainable investment, being a funding mechanism which will identify and materialize investment opportunities with impact on durable economic development and long –term job creation. At the same time, the Sovereign Development and Investment Fund will contribute both to Romania’s efforts to get the emergent market status for the domestic capital market by increasing liquidity on the Bucharest Stock Exchange (BVB), as well as to the increase of the absorption level of non-refundable European funds by ensuring the co-funding financial sources of the investment projects,” according to the Government. (cotidianul.ro)
IMF: Romania’s Economy Shows Signs Of Overheating, Deficit Widens
Romania’s economy shows signs of overheating and there is a risk that the current policy trajectory increases macroeconomic volatility, undermines the capacity to withstand adverse shocks, and eventually slows down convergence toward the advanced EU countries, the International Monetary Fund said in a report.
Romania posted one of the highest growth rates in the EU in 2017, with record-low unemployment and an improving financial sector. Domestic consumption supported by fiscal stimulus led the strong growth, while investment lagged and structural reforms slowed. Economic growth is expected to again exceed potential in 2018 with elevated inflation, but slow down over the medium term assuming the fiscal stimulus wanes.
Public investment fell to a multi-year low in percent of GDP with a low absorption of EU funds. Both the government deficit and current account deficit widened, respectively to 2.8% and 3.4% of GDP in 2017. Reflation is quickly gathering pace. While the National Bank of Romania’s inflation target was met in 2017, headline inflation has risen since January above the upper end of the band, reaching 5.2% (y/y) in April 2018.
Growth is expected to reach 5% in 2018—led again by continuing stimulus to private consumption from fiscal relaxation—and accompanied by a current account deficit and elevated inflation, even as monetary policy is tightened. Growth is expected to moderate to 3% in the medium term as the transitory effects of the fiscal stimulus fade, and lagging investment and lack of sustained progress on structural reforms would constrain potential growth over the medium term. (jurnalul.ro)