Romania Posts Budget Deficit Of 0.49% Of GDP In January-September
Romania’s consolidated budget deficit rose to RON3.7 billion in the first nine months, or 0.49% of gross domestic product, from a deficit of 0.41% at the end of August, finance ministry data showed.
Revenues to the consolidated budget amounted to RON165.8 billion (or 21.9% of GDP), 1.8% higher than in the first nine months of 2015.
Value added tax collections dropped 8.6% on the year in the first nine months, due to a cut in the tax to 20% from 24% starting January.
On the other hand, profit tax collections increased 12.3%, excise duty collection grew 6.4%, social security contribution collections increased 6.9%, while income and salary tax collections rose 3.8%, the data showed.
Budget expenditure stood at RON169.5 billion in January-September, 4% higher in nominal terms compared with the same period last year. (Evenimentul Zilei)
EY: Romanian M&A Market Down 50% In 1H/2016
The Romanian M&A market size has decreased by nearly 50% in the first six months of 2016, to $1.1 billion, from $2.1 billion in the year-earlier period, according to EY M&A Barometer.
Thus, Romania ranks 5th among the CSE countries, with 56 transactions in January-June 2016, down by nearly 30% compared with the first six months of 2015.
There were 655 closed transactions in the first half of 2016. The Czech Republic was the most active country in terms of deal volume, followed by Turkey, Poland, and Hungary, according to the report. “As opposed to the same period of last year, when Unicredit Țiriac Bank was the largest transaction in all the CSE countries, this year we’ve experienced a bit of a slowing down, with fewer megadeals.
However, the growing interest and the number of ongoing transactions will reverse the descending trend,” says Florin Vasilica, Leader of Transaction Advisory Services, EY Romania. (Puterea)
German Finance Minister: Romania’s Debt-To-GDP Ratio Should Be Kept At 40% Of GDP
Romania’s debt-to-GDP ratio currently stands at 40%, and that value should be maintained, said Wolfgang Schauble, Germany’s Federal Minister of Finance, during the conference “Romania: investment opportunities in a challenging global economy”, dedicated to investors.
Schauble added that Romania should implement the dual education model to reduce unemployment and workforce deficit.
“All diplomas should be appreciated, not only university diplomas,” Schauble stated.
The German Finance Minister added that the Romanian and German finance ministries have a very good collaboration and the investments and commercial exchanges are on the rise.
Thus, Schauble said that no conflicts should emerge between foreign and Romanian investors, between large and small investors, because, if a large company is facing problems, its commercial partners will also face problems. (Adevarul)
Corina Cretu Won’t Be PSD Prime Minister
Social Democratic Party (PSD) is allegedly considering EU Commissioner for Regional Policy, Corina Cretu, for the position of Prime Minister after the parliamentary election but she has other plans, according to EVZ sources.
The name of Corina Cretu as future PSD PM circulated within the party as the social-democrats have not decided on their PM candidate so far, and they would go for a trustworthy person.
Nevertheless, party sources told EVZ that the commissioner does not want to return to Bucharest and interrupt her EU commissioner mandate at the moment. (Evenimentul Zilei)
Nearly 800,000 People With Disabilities Live In Romania
Nearly 800,000 people with disabilities live in Romania at the moment, of which 36% are persons with severe disabilities, according to the Labor Ministry data.
Around 97% of the disabled persons live with their families or independently while only 2.3% live in public social care institutions.
Most of the people with disabilities are registered in capital Bucharest (over 60,000), followed by Prahova county (37,000). Covasna is at the opposite pole, with 5,500 disabled persons. Nearly 70% of the disabled persons are older than 50. (Adevarul)