Press Review - April 29, 2016

04.29.2016 By Gabriela Stan

Romania’s GDP Expected To Grow 4.2% In 2016 And 4.3% In 2017

Romania’s economy is expected to grow 4.2% in 2016 and 4.3% in 2017, and its budget deficit is seen reaching 2.95% of GDP in 2016 and 2.9% of GDP in 2017, according to the 2016 convergence program approved by the government Wednesday.

According to the report, the country’s budget deficit is expected not to exceed the reference rate of 3% of GDP in 2016 and 2017 and to return to a downward trend in 2018-2019.

The report also says it is expected a deviation from the target regarding the medium-term objective in 2016 and 2017, following the measures included in the new Tax Code and wage raises approved throughout 2015. Starting 2018, this trend will change.  (Puterea)

President Klaus Iohannis Signs Debt Discharge Bill Into Law

Romanian President Klaus Iohannis on Thursday said he signed into law a debt discharge bill allowing retail mortgage borrowers to return real estate collateral to banks in exchange for writing off their loans.

On April 13, 2016, the Chamber of Deputies, decider on the matter, adopted the debt discharge bill, with 207 pros, one con and one abstention.

Deputies decided the government-backed mortgage lending First Home program will not remain subject to the provisions of the law, while the maximum ceiling which will be considered when enforcing the law will increase from EUR150,000 to EUR250,000.

They also decided the law will also be applicable to properties subject to foreclosure procedures. (Romania Libera)

Energy Holding CE Oltenia To Lay Off 2,000 Employees In 2016-2017
 

The Supervisory Board of state-owned energy holding CE Oltenia approved the layoff plan for 2016-2017, that will be implemented as of July 1, targeting the layoff of 2,000 employees, of which half should retire by 2019.

The company currently has 15,168 employees and registered overall losses of RON1.655 billion in the last two years. CE Oltenia posted a profit of RON144 million in the first quarter of 2016.

“These losses really have to be recovered in the upcoming period for the company to remain on the market and be efficient,“ CE Oltenia said in a statement.

CE Oltenia energy holding was set up in 2012, following the merger of several thermal power plants and coalmines. (Adevarul)

Municipal Electoral Office Approves Applications Of 12 Candidates For Bucharest Mayor

The Municipal Electoral Office (BEM) approved the applications of 12 candidates for mayor of capital Bucharest of the total 17 who submitted their candidacies.

According to BEM data, the following candidates have been approved: Catalin-Ioan Berenghi (independent), Daniel-Constantin Barbu (ALDE), Adrian Severin (Social Justice Party), Robert Turcescu (People's Movement Party), Petrica Dima (Romanian Socialist Party), Niculae Neamtu (Republican Party in Romania), Mirel Mircea Amaritei (PRODEMO party), Iulia Gorea-Costin (PNTCD), Nicusor Dan (Save Bucharest Union), Catalin Predoiu (PNL), Mihai-Bogdan Diaconu (PRU), Gabriela Firea (PSD-UNPR). BEM also rejected the applications of another five candidates: Sevastita Dumitrache, Petre Ignatencu (Community Party in Romania), Nicolae Toteanu, Miroslav-Valeriu Tascu-Stavre (Green Party), Adrian-Liviu Avram. (Adevarul)

Accounts Of Political Parties Can No Longer Be Blocked During Electoral Campaigns

Romanian President Klaus Iohannis said on Thursday he promulgated the law according to which the accounts of political parties can no longer be foreclosed during electoral campaigns.

Iohannis said that the decision was based on several aspects, as some politicians can migrate to other party or set up a new party, so that the creditor of the party would also move with the politician. Thus, political competition can be falsified if the accounts of a political party are foreclosed during the electoral campaign.

The President also mentioned article 8 of the Constitution, according to which political parties contribute to the defining and expression of political will. Thus, if the accounts of a party are blocked during the electoral campaign, the party can no longer express its political will. (Puterea)