IMF: Recent Wage Hikes To Trigger Higher Budget Deficit In 2017
The salary hikes voted recently by the Parliament will trigger the increase of Romania’s budget deficit to approximately 3.5% of the GDP in 2017, way above IMF’s recommendation of 2% of the GDP, which could lead to the decrease of funds for investments or additional taxes, according to IMF resident representative for Romania and Bulgaria, Alejandro Hajdenberg.
Hajdenberg added that the deficit would be even more difficult to maintain at 3% of the GDP after the public pay rises, as the IMF estimates a net impact of salary hikes of 0.3-0.4 percentage points of the GDP; thus, the deficit will reach around 3.5% of the GDP next year.
IMF representative said that the institution recommends a budget deficit of 2% of the GDP, not 3%, for Romania in 2017, so that it would create fiscal buffers and keep the public debt under control. (Evenimentul Zilei)
EC Revises Up Romania’s GDP Growth Forecast To 5.2% In 2016
The European Commission revised upwards its economic growth forecast for Romania to 5.2% in 2016, to 3.9% in 2017 and 3.6% in 2018, according to the EU executive’s autumn forecast.
In the spring forecast, European Commission forecast a 4.2% economic growth in 2016 and 3.7% in 2017.
“Real GDP growth is currently among the fastest in the EU and is projected to remain robust over the forecast horizon, supported by fiscal easing and wage increases. Inflation is expected to increase as the output gap closes and the effects of previous tax reductions fade away. The general government deficit is projected to widen considerably due to tax cuts and public wage increases,” the EC report reads. (Puterea)
President Klaus Iohannis Signs Cash-back Bill Into Law
The bill on the introduction of modern payment systems, or the cash-back bill, has been recently signed into law by Romanian President Klaus Iohannis.
According to the law, traders which post annual turnovers of over EUR10,000 will have to accept electronic funds transfer at point-of-sale, thus they will need to have a POS terminal. Banks will have to install the POS terminal in 30 days from the trader’s request.
The law was approved by the Parliament in the summer but was sent back to re-examination by Iohannis due to a stipulation according to which traders also had to disburse cash of up to RON200 upon the request of the card holder customers. The law will come into force on January 1, 2017. (Adevarul)
Romania Approves Cooperation Agreement With Bulgaria For Access To Medicines
The Romanian Government approved on Wednesday, through Memorandum, the negotiation of a cooperation agreement with Bulgaria, which stipulates, among others, that the two countries can conclude joint agreements with drug makers in view of obtaining price cuts.
According to the government, the opportunity of concluding such an agreement arose within a joint meeting held on October 6, between representatives of the Romanian and Bulgarian governments and representatives of competent bodies in the two countries.
Subsequently, other governments in the European space can join this voluntary cooperation project initiated by Romania and Bulgaria, which targets a joint approach meant to ensure access to efficient treatments in Central and Eastern Europe. (Evenimentul Zilei)
Gourmetgift.ro, Heidi Chocolate Offer 20,000 Free Chocolate Bars To Underprivileged Children For Christmas
Gourmetgift.ro and Heidi Chocolate have recently decided to offer 10,000 free chocolate bars to underprivileged children for Christmas, but their quantity doubled due to the high number of requests.
The “10,000 chocolate bars” campaign, initiated by GourmetGift.ro and Heidi Chocolate was highly successful in less than three weeks from launching, after its initiators asked people countrywide on Facebook to recommend cases of underprivileged children that would be the beneficiaries of the campaign. (Puterea)