Slovakia, Hungary and Czech Republic are most exposed among Central and Eastern European (CEE) sovereigns to a sudden cessation of Russian gas supplies to EU countries, Fitch Ratings says. Poland, Lithuania and Romania appear least exposed.A sudden cessation is not Fitch’s base case, but is a risk. Bulgaria and Poland have already been cut off and supplies to other EU members have been reduced. Supply and infrastructure constraints mean it could take the EU more than three years to offset a full loss of Russian gas supply.Fitch has constructed a vulnerability matrix showing EU countries’ reliance on Russian gas imports. We have also considered EU and national policy responses, holding discussions with national authorities, usually energy ministries of all CEE EU members. These responses would probably involve supply- and demand-side management and centralised price-setting. We also look at mitigating factors for the 11 Fitch-rated CEE sovereigns.The region would face a significant macro shock, including in many cases negative growth and higher inflation: energy generally has a higher weight in the harmonised consumer price basket in CEE than in Western European countries). But differences in mitigating factors mean the impact would vary widely. Slovakia, Hungary and Czech Republic combine high reliance on Russian gas with a lack of viable short-term alternative energy supplies. In contrast, Poland, Lithuania and Romania have largely secured alternative supplies or have significant domestic production. Assessing mitigants and understanding policy responses is key to understanding the potential rating implications of cessation: important offsetting factors are not always visible in the vulnerability matrix.The impact on public finances from the macro shock and potential offsetting measures could pressure sovereign ratings, particularly where credit metrics are already weak relative to rating peers. The Negative Outlook on the Czech Republic’s ‘AA-’ rating since May partly reflects risks from its dependence on Russian energy.
The third breast milk bank in Romania has opened at the Sibiu County Hospital, following a RON 13.5 million (about EUR 2.7 million) investment aimed at modernizing the hospital’s neonatology department. The modernization project, financed through the National Recovery and Resilience Plan, included the replacement of old equipment, a 20% increase in the number of […]
President Nicuşor Dan stated on Wednesday, July 30, in a press conference that the current system, which allows magistrates to retire under the age of 50 with a pension higher than their salary, is absurd. He also criticized the Superior Council of Magistracy, or CSM, for the current “disorderly” state of the Romanian justice system. […]
Forty Romanian firefighters and eight fire trucks left for Greece on Wednesday, July 30, to participate in firefighting missions, the General Inspectorate for Emergency Situations said. Between August 1 and September 15, Romania will take part in the Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO) program aiming to support the Greek […]
Integrated facility and property management services provider Nazca has opened its first office outside Italy, its domestic market, in Bucharest. Nazca expects revenues of over EUR 1 million next year in Romania, and in the next 3 years, the growth plan aims to reach EUR 10 million, with target sectors being office buildings, retail, industrial […]
The 19th edition of TIFF Sibiu, one of the local editions of the Transilvania International Film Festival (TIFF), the largest film event in the county, will present a program of international films and the latest productions by Romanian fillmakers, who will attend the event. The festival takes place between August 7 and August 10, with […]
Moldovan carrier Flyone will add a route between Bucharest and Munich starting in October. The flights to Munich will be operated on Mondays, Wednesdays, and Fridays. This adds to the flights it has connecting the Romanian capital to Tel Aviv, Brussels, and Verona. With these routes, the airline is responding to the constant demand from […]
