Public Wage Law Poses Inflation Risks, Central Bank Says

Romania’s public sector wage law poses risks to annual inflation, the central bank warned in its quarterly inflation report released Monday.

It said the potential effects enhancing excess demand in the economy, generating inflationary pressures, will essentially depend on the final form of the wage bill and the gradual implementation of wage raises in the public sector.

Reductions in public investment, to keep in line with the EU budget deficit limit of 3% of gross domestic product, coupled with a wider gap between wage variation and labor productivity would eventually impact the Romanian economy’s growth and competitiveness potential.

This would hurt foreign investors’ risk perceptions, affecting stable capital flows into the Romanian economy, posing risks to financing the current account deficit and the future evolution of the leu currency, the central bank said in its report. (mediafax.ro)

  Eurostat: Romania Has Lowest Household Electricity Prices, But Highest In Terms Of Purchasing Power  

Household electricity prices decreased in the European Union (EU) by 2.3% on average between the second half of 2015 and the second half of 2016. They now stand at €20.5 per 100 kWh. In the same period, household gas prices went down by 10.5% on average to EUR6.4 per 100 kWh.

Since 2008, both electricity and gas prices in the EU have risen by around a quarter (+23% and +26% respectively).

On average, taxes and levies accounted for more than a third (36%) of the electricity bills charged to households in the second half of 2016, and about a quarter (26%) of the gas prices.

Between the second half of 2015 and the second half of 2016, the largest decreases in household electricity prices, in national currencies, were observed in the Netherlands (-13.8%) and Cyprus (-11.8%), followed by Lithuania (-5.8%), Romania (-5.6%) and Ireland (-4.7%). In contrast, the most noticeable increase was registered in Belgium (+16.7%), well ahead of Sweden (+7.7%) and Portugal (+3.5%). (mediafax.ro)

  Chamber Of Deputies’ Labor And Budget Committees OK 20% Wage Rise For Public Workers   The Chamber of Deputies’ labor and budget committees on Monday approved a 20% increase in wages for several categories of public workers.   They also adopted several provisions raising by 25% the wages of physicians in the defence, public order and national security sectors.

The Chamber of Deputies is decider on the matter. (mediafax.ro)

  PM Grindeanu Talks With Tax Regulator Head About Employees’ Dissatisfaction   Prime Minister Sorin Grindeanu and the head of the country’s tax regulator ANAF meet on Wednesday to discuss the unitary salary bill in the public sector and the dissatisfaction of employees within the financial system institutions.

On Monday, the employees within the institutions of the Finance Ministry institutional system countrywide started a spontaneous protest.

SED LEX union leader Vasile Marica told MEDIAFAX the employees are displeased with the fact that their wages fall by 10% to 35% through the new unitary pay bill. (mediafax.ro)

Subiecte #press review