International rating agency S&P said on September 14 that it does not expect imminent risks to Romania’s near-term fiscal consolidation following the resignation of USR-PLUS ministers on September 7. “Nevertheless, should the political deadlock persist, it could disrupt progress on much-needed fiscal reform,” it concludes on a note leaving the door open to a rather broad range of scenarios, https://www.romania-insider.com/ informs. The absorption of EU funds and fiscal reforms are key to stabilizing the country’s fiscal and external positions, the rating agency’s statement reads. The rather positive comment may look surprising if regarded from a short-term perspective. But from a longer-term perspective, the impact of the current protracted political turmoil has a much smaller impact on the fiscal policy compared to last year when the Social Democrats were threatening to damage the public finance sustainability with bills passed on a weekly basis, such as the one on 40% rise of the public pensions. In April this year, S&P was the last of the major three to revise the country’s outlook to stable (from negative) in response to the new Government’s fiscal consolidation plans. The agency will review the country’s ratings on October 15. Until then, the political outlook will gain more visibility. Under the baseline scenario, S&P assumes that the Government would aim to preserve its capacity to function over the short term in order to contract this funding, “which we understand is ready to be disbursed,” the agency reads. In the rating agency’s view, the Government passing last week the budget revision “suggests that there is [enough] capacity to execute policy.”
The Defense Ministry said early Wednesday, November 19, that its Air Force detected a drone entering national airspace overnight, prompting the scramble of German and Romanian fighter jets amid ongoing Russian attacks near Romania’s border with Ukraine. Two German Eurofighter Typhoon jets stationed at the Mihail Kogălniceanu Air Base took off at 00:25 on November […]
The government will radically amend the legislation on foreign labour and repeal the current law, said Ciprian Văcaru, state secretary at the Ministry of Labour, Family, Youth and Social Solidarity (MMFTSS), as reported by Economedia.ro...
The Romanian government is preparing an emergency ordinance to ban salary-pension cumulation in the public sector, according to the document consulted by Economedia.ro. The draft ordinance includes other measures to reduce spending in public administration, such as suspending secondments and transfers. The...
Although the Romanian ruling coalition announced a principle agreement over cutting by 10% the payroll of the central administration, no formal agreement has been drafted yet, and the technical specifications are not yet clear. In any case, it seems broadly agreed that the ministries and other central administrative units will be given flexibility in deciding […]
Romania’s BlueSpace Technology is preparing for the first public presentation of its VLAH (Hydramatic Autonomous Combat Vehicle) prototype, scheduled for the first half of December, according to a press release cited by Bursa.ro. The 4x4 armoured vehicle is the first...
The construction materials distribution company Sipex (BVB: SPX), traded at the Bucharest Stock Exchange, announced it will begin next year the construction of a dry mortars and thermal insulation materials factory in Ariceștii Rahtivani, Prahova County. The project will involve EUR 20 million of investment. The company said it has “all approvals for the submission […]
