The present situation is a very complicated one from the economic point if view, the risk for recession has increased significantly and it is possible to have a slight recession this year, says on Monday Adrian Codirlasu, chairman of the Association CFA Romania during a meeting with the press.‘In these conditions, the risk for recession I would say has increased significantly. So, it is possible to have a slight recession this year. What could change to get us a harder recession? It would be a downgrading of Romania to the non-investment-grade category. If you actually look at the economic fundamentals, like the two deficits, the current account deficit and the budget deficit, they take us out of the investment-grade category. In case we are downgraded? Yes, we can expect a severe recession, which also comes with higher interest rates and the depreciation of the leu’ explained Adrian Codirlasu.Asked when we could see clearly if Romania was going to face a recession this year, he stated that the answer could come in the first part of this year.'As numbers, when we see the first GDP figure for the first quarter. I wouldn't be surprised if it's slightly negative, because basically, until the elections, I don't think investors are going to make big steps to invest in Romania. Therefore, we could see this slightly negative development of the economy in the first half of the year, and after the elections it will matter for us to keep this rating how credible the government's fiscal policy will be. Whether it will be the same government or a new government, but the credibility of fiscal policy will be crucial. Again, what the rating agencies are saying, the fact that they are keeping us in the investment recommended rating category, is precisely the fact that they are members of the European Union and we are taking European money. So it is essential that we take European money and stick with pro-European policies. I think that a turn towards Euroscepticism will certainly lead us to a rating that is not recommended for investment', said Adrian Codirlasu. The budget for this year is built on economic growth of 2.5% and a budgetary deficit of 7% of GDP.
President Nicusor Dan signed on Thursday the decree appointing Prime Minister Ilie Bolojan as interim Vice Prime Minister on the areas coordinated by Dragos Anastasiu, the Presidential Administration informed.On 27 July, Dragos Anastasiu announced he was stepping down from the vice prime minister office, mentioning that he could no longer accept "being denigrated and thus […]
Prime Minister Ilie Bolojan continued consultations on Thursday with representatives of the Association of Communes of Romania, telling them there is a strong chance to overcome the current difficult period if the approach of "responsibility toward public funds" is maintained."The reform of local public administration will be part of the second package of government measures […]
Financing the National Recovery and Resilience Plan (PNRR) projects will continue for those already initiated and will stop only in case investment has not begun, where not a single euro was spent for construction, Development minister Cseke Attila explained on Thursday. “PNRR will not stop, neither will financing investments which have already been initiated, […]
The Justice Ministry announced on Thursday having developed in cooperation with the Finance Ministry and the National Tax Administration Agency a set of proposals to amend the Insolvency Law, which will be included in the second reform package.Some of the amendments provide for a higher recovery rate of the taxes and fees owed by insolvent […]
Romania is in the antechamber of recession, with the risk that its economy will decline in the third or fourth quarter, especially amid an increase in taxes, a significant drop in sales and record inflation at European level, says business consultant Adrian Negrescu."We are currently in the antechamber of recession. It is a moment […]
The Ministry of Culture announced on Thursday that is set to adapt national legislation for enforcing the European Media Freedom Act (EMFA), which supports media pluralism, editorial responsibility, protects journalists from abusive surveillance and intimidation, and provides protection for sources.According to a Culture Ministry release, the implementation in Romania of Regulation (EU) 2024/1083 of the […]
