February 12, 2017
Wide-scale anti-government protests are due in front of the Government offices in Bucharests Victory Square this evening/ The Central Bank governor says political tensions might impact monetary and fiscal stability
Corina Cristea, 12.02.2017, 13:57
RIVAL PROTESTS – Wide-scale antigovernment protests are due in front of the Government offices in Bucharests Victory Square this evening. As of January 31, Romanians have taken to the streets in large numbers, accusing the left-wing Government of trying to amend the criminal law by issuing an emergency decree, partially decriminalising a series of offences to benefit some politicians. The biggest rallies took place last Sunday, when over half a million people took to the streets. On the same day, the cabinet made up of representatives of the Social Democratic Party-The Alliance of Liberals and Democrats repealed the controversial emergency decree. On Thursday, its initiator, justice minister Florin Iordache stepped down. He has been temporarily replaced by Ana Birchall. She announced that on Monday she will have a first meeting with representatives of the Higher Council of Magistracy (CSM), the National Anti-Corruption Directorate (DNA) and the Directorate for Investigating Organised Crime and Terrorism (DIICOT), as well as with all those who have a say in the field of justice. The main aim of the meeting is to find the best solutions in the fight against corruption and in the effort to defend and observe fundamental human rights. For a week, Bucharest has also been the stage of pro-government and anti-presidential protests, but at a smaller scale. President Klaus Iohannis is being reproached for not playing as mediator in the crisis.
FINANCIAL STABILITY– The governor of the National Bank of Romania, Mugur Isarescu, has drawn attention that instability and political tensions in the country have an impact on the monetary and fiscal stability, and might also impact the countrys economic growth this year. The central bank governor has also said the National Bank of Romania forecasts an economic growth rate of 4-5% this year. The National Forecast Commission has recently announced a 5.2% economic growth rate, being more optimistic than the central bank governor.
SOVEREIGN FUND – The Romanian Government has decided to set up the Sovereign Fund for Development and Investment, a new public investment instrument, in compliance with the objectives set by the cabinet under the 2017-2020 governing program. According to the Economy Minister, Alexandru Petrescu, the Fund, which will administer the shares and assets of state-owned companies, will be able to use the income made by profit-making companies, through dividends or by capitalising on non-performing assets, to be traded on the Stock Exchange. The Sovereign Fund for Development and Investment will contribute to both Romanias effort to get the status of emerging market on the local capital market by increasing the level of liquidities on the Stock Exchange and to increase the absorption-rate of non-reimbursable European funds, by providing co-funding for investment projects, the Government announces in a communiqué.
MINIMUM WAGE– On January 1, 2017, Bulgaria and Romania had the lowest national minimum wage level in the European Union. The monthly minimum wage stood at 235 Euros in Bulgaria, and at 275 Euros in Romania, data made public by Eurostat show. 22 of the 28 EU member states have set a national minimum wage, unlike Denmark, Italy, Cyprus, Austria, Finland and Sweden, which have not set such a wage. The highest national minimum wage in the EU is paid in Luxembourg (1,999 Euros), Ireland (1,563 Euro), the Netherlands (1,552 Euro), Belgium (1,532 Euro) and Germany (1,498 Euro). Eurostat says that in 2017, as compared to 2008, the national minimum wage went up in all EU member states, with the exception of Greece, where it decreased by 14%. The highest increase was reported in Bulgaria and Romania, where the minimum wage has actually doubled.(Translated by D. Vijeu)
