Uncertainties arising from the recent fiscal measures adopted by the authorities have adversely affected the confidence of the business environment, says Ramona Jurubita, KPMG Romania Country Managing Partner, as cited in a company release."Romania's future growth potential remains high and this can be fully exploited in a framework where fiscal and legislative policies are predictable, and by laying emphasis on the improvement of the country's infrastructure. However, the uncertainties related to the fiscal measures recently adopted by the authorities have adversely affected the confidence of the business environment. The increase in the VAT rate for certain goods and services and the higher excise duties on fuels, the introduction of new taxes, including the minimum turnover tax for large companies and the additional taxes for credit institutions, along with increased tax rates on turnover are expected to push inflation in 2024 on a higher trajectory than initially anticipated and, in addition, to negatively affect demand. Despite significant investments supported from European funds, there is a big question mark related to how these fiscal changes will influence both economic growth and macroeconomic imbalances in the short term," said Ramona Jurubita.According to the KPMG Global Economic Outlook report, Romania's short term economic prospects are influenced by uncertainties related to the correction methods of both the budget deficit and the current account deficit.After witnessing a strong growth of 5 percent in the first three quarters of 2022, the Romanian economy saw a sharp slowdown, advancing just 1.4 percent in the same period of 2023. High inflation eroded the households' purchasing power and acted as a headwind to private consumption, which had been the main driver of economic growth in recent years. Even so, Romania's economy had one of the highest growth rates in the region, estimated at 1.8 percent in 2023.Romania's economic growth outpaced that of the countries in the region, despite the ongoing conflict at the border with Ukraine. The average annual inflation rate continued to decrease in 2023, and this trend is expected to continue in 2024 and inflation to reach approximately 6.9 percent.
The fund Cultura Face Bine, a national funding mechanism for cultural projects backed by private-sector financing, will begin supporting local cultural organizations in 2026. The fund aims to support grassroots cultural initiatives with a proven impact in their communities and which need resources to continue, develop, or transform their activities. The funding mechanism has been […]
The European Commission (EC) announced on Thursday, December 11, that it is referring Romania to the Court of Justice of the European Union (CJEU) for failing to meet obligations under Ambient Air Quality Directives. According to the Commission, Romania has not ensured that its national air quality monitoring network complies with legally required standards on […]
The Bucharest Court of Appeal (CAB) held an unprecedented press conference on Thursday, December 11, in response to allegations raised in a recent media investigation published by Recorder, with court president Liana Arsenie firmly rejecting the claims. However, at the start of the press event, a judge from within the institution publicly stated that the […]
Romania’s Superior Council of Magistracy (CSM) issued its first response to the Recorder documentary alleging systemic manipulation within the justice system, calling the investigation an amplification of a “campaign to destabilize judicial authority.” The council said on Thursday, December 11, that it will evaluate what measures need to be taken following the report. In a […]
MedLife, Romania’s largest private medical services network, announced on Wednesday, December 10, that it reached a market capitalization of EUR 1 billion on the Bucharest Stock Exchange (BVB). The milestone secures its position as “the most valuable healthcare company” in the country. The achievement came nine years after MedLife’s listing on BVB in December 2016, […]
The Buzău Land UNESCO Global Geopark in Romania has become a “living laboratory” this week as a team of American researchers arrived to study microorganisms capable of surviving in extreme environments. The scientists, part of the interdisciplinary research organisation The Two Frontiers Project, are examining methane seeps, sulfur and petroleum springs, saline sources, and other […]
