World Bank: Approaching Elections Increase Risk Of Further Ad Hoc Spending In Romania
World Bank warns that the approaching general elections in December 2016 increase the risk of further ad hoc spending and slowdown in the implementation of structural reforms in Romania, thus, fiscal policy needs to be rebalanced over the medium term.
“Europe and Central Asia Economic Update: Polarization and Populism” report, launched Wednesday by the World Bank, shows that Romania should implement structural reforms that will help enhance the productive capacity of the economy, including measures to combat corruption, enhance the quality of spending, strengthen the public administration and SOEs, and simplify the regulatory environment.
Hans Timmer, World Bank chief economist for Europe and Central Asia, said that Romania has a stable economy and registers economic growth, thus, its priority should be the implementation of structural reforms, focusing on competitiveness policies. (Puterea)
World Bank Revises Up Romania’s GDP Growth Forecast To 5.1% In 2016
World Bank revised Romania’s GDP growth forecast for this year to 5.1%, from 4% in June, according to Europe and Central Asia Economic Update: Polarization and Populism report launched on Tuesday in Bucharest.
Romania’s economic growth is also estimated at 3.8% in 2017 and 3.4% in 2018.
“Growth is expected to remain solid in 2017 as additional fiscal relaxation measures will be implemented, including a further VAT cut to 19 percent, the elimination of the special construction tax and a reduction of the excise rate for fuel,” the report reads.
However, the adoption of the debt discharge law has introduced uncertainty into the legal framework of the financial sector with potentially negative effects on financial inclusion, bank balance sheets and the construction sector and will likely lead to legal challenges by the banks. (Adevarul)
Romanians Rank First In Europe By Authoritarian Populist Views
Most of Romanians, namely 82%, share authoritarian populist views, according to a survey by global market research and data company YouGov regarding authoritarian populist views of European citizens.
Poland ranks second, with 78% of the respondents, followed by France with 63%.
Germany is at the opposite pole, with only 18% of the respondents sharing authoritarian populist views.
“The term ‘authoritarian populism’ was first used in the 1980s by academics analyzing the politics of Ronald Reagan and Margaret Thatcher, finding they shared a core set of attitudes including cynicism over human rights, anti-immigration and a strong emphasis on defense,” according to YouGov. (Adevarul)
Liviu Dragnea Cannot Be A Minister Or PM Due To Suspended Prison Sentence
PSD president, Liviu Dragnea, cannot become a minister or prime minister, according to a stipulation in the law on government organization.
According to article 2 of law 90/2001, adopted by Nastase government and promulgated by former President Ion Iliescu, government members should be Romanian citizens who have not been subject to a penal sentence.
Dragnea received a two-year suspended prison sentence for election fraud at a referendum held in 2012 to impeach then-president Traian Basescu. (Evenimentul Zilei)
Road Authority Approves Route For Last Two Sections Of Sibiu-Pitesti Highway
The National Company for Road Infrastructure Administration (CNAIR) approved the route for the last two sections of Sibiu-Pitesti highway, according to transport minister Sorin Buse.
Thus, the two sections are: section 2 Boita-Racovita from kilometer 15 to kilometer 43 and section 3 Racovita-Valeni, from kilometer 43 to kilometer 72.
The entire route of Sibiu-Pitesti highway is: Section 1, Sibiu-Boita, from km 0 to km 15+000, Section 2, Boita-Racovita, from km 15+000 to km 43+000, Section 3 Racovita-Valeni, from km 43+000 to km 72+000, Section 4 Valeni – Curtea de Arges, from km 72+000 to km 90+000, Section 5 Curtea de Arges-Pitesti, from km 90+000 to km 123+037, Section 6 which includes the restoration of 14 km of national road (DN 73C) and the construction of 2.5 km of new road.
According to the authorities, Pitesti-Sibiu highway will be finalized in 2021, one year earlier than stipulated in the National Transport Master Plan. (Evenimentul Zilei)