Press Review - April 26, 2016

04.26.2016 By Gabriela Stan

Romania Posts RON3B Budget Surplus In January-March 2016

Romania's general consolidated budget posted a surplus of RON3 billion in the first three months of 2016, or 0.4% of gross domestic product, finance ministry data showed Monday.

In January-March 2015, Romania posted a budget surplus of RON4.9 billion, or 0.7% of GDP.

Revenues to the consolidated budget amounted to RON55.6 billion in the first quarter of 2016, or 7.3% of GDP, 1.1% higher in nominal terms compared with the same period last year, the data showed.

Profit tax collections increased 26.2%, collections from tax on use of goods increased 18%, excise duty collections increased 6.2% and social security contribution collections increased 5.2%.

Value-added tax collections fell 1.7% on the year in January-March 2016, as the tax was reduced from 24% to 9% on food items as of mid-2015 and the standard rate was cut from 24% to 20% as of January 1, 2016. (Evenimentul Zilei)

Romania’s Highway Network Extended By 64 Km In 2015, To 747 Km

Romania’s highway network was extended by 64 kilometers in 2015 (+9.4%), to 747 kilometers, while 10,584 kilometers of county and communal roads and 15 kilometers of national roads are ground roads, according to the data of the National Statistics Institute (INS).

The 747 kilometers of highways only account for 4.2% of the total national roads in Romania.

At the same time, 15 kilometers of national roads are ground roads, as well as 2,024 kilometers of county roads and 8,560 kilometers of communal roads. Nevertheless, drivers also have to pay the road toll for ground roads. (Adevarul)

Competition Council Wins Suits With Fined Companies

Romanian Competition Council has won all the suits with fined companies at the High Court of Justice, as well as approximately 85% of the suits at the Court of Appeals, according to the head of the antitrust watchdog, Bogdan Chiritoiu.

Thus, the Competition Council has recently won the suits with all the six oil companies fined in 2011 as they breached antitrust regulations by forming a cartel, namely OMV Petrom SA, OMV Petrom Marketing, Rompetrol Downstream SRL, Mol Romania Petroleum Products SRL, ENI Romania SRL and Lukoil Romania SRL. All the companies had challenged the decisions in court.

Thus, the antitrust watchdog has a better situation than the similar authorities in other states which lost the suits with the companies which appealed the fine-related decisions.   

"We have a 100% success rate at the High Court of Justice and approximately 85% at the Court of Appeals," Chiritoiu stated. (Puterea)

PM Dacian Ciolos Continues To Replace Heads Of Public Institutions

Romanian Prime Minister Dacian Ciolos, who is currently in the middle of his mandate, continues to replace the heads of public institutions.  

Ioan-Alexandru Andrei was dismissed from the position of general manager of State Office for Inventions and Trademarks (OSIM), starting with the date when the PM decision comes into force.

The PM’s decision was based on an address of the Ministry of Economy, Commerce and Relations with the Business Environment dated April 18 and registered at the General Secretariat of the Government on April 21, according to the document published in the Official Gazette. (Puterea)

PSD Executive President Valeriu Zgonea Asks PSD President Liviu Dragnea To Resign

The leadership of the Social Democratic Party (PSD) met on Monday to discuss the internal situation of the party after PSD executive president Valeriu Zgonea asked PSD President Liviu Dragnea to resign, after Dragnea was sentenced to two years of probation in the referendum case.

“Our number one priority is now to prepare candidates, the electoral campaign and to win local elections,” Dragnea said at the end of the meeting.

Asked whether he plans to remain PSD president after the local elections, Liviu Dragnea said this is unlikely to happen, but he would not resign now as he still has certain targets to achieve, namely the modernization of the party and the preparation of a new generation of party leaders that would take over in 2017, as well as the winning of the local and parliamentary elections.  (Adevarul)