Press Review - January 15, 2018

01.15.2018 By Oana Gavrila

Ruling Party Decides PM Tudose's Political Fate Monday

The executive committee of Romania's ruling Social Democratic Party meets Monday afternoon to discuss whether to keep supporting or pull support for social democrat prime minister Mihai Tudose.

Although party president Liviu Dragnea had said the next executive committee meeting would be on January 29-31 in Iasi, several senior members called for an emergency meeting.

Party seniors are expected to discuss political support for Tudose and the situation of interior minister Carmen Dan, whom the Prime minister wants gone and who refuses to resign.

Basescu To Submit Bill To Unite Romania and Moldova

PMP party leader and former head of state Traian Basescu said he will submit a bill in Parliament to unite the Republic of Moldova with Romania.

Basescu said a unification is possible if Moldovans want it.

Bloomberg: Romanians' Wealth Has Stagnated Despite Economic Boom

Despite gross domestic product rocketing as the government splurges on higher public-sector salaries and cuts taxes, Romania's wealth – calculated as citizens’ net assets as a share of disposable income – remains about the same as it was five years ago, Bloomberg reported.

The benefits of living in the Europe Union’s fastest-growing economy may not endure for Romanians. For some, the gains are funding day-to-day essentials including food and clothes – understandable in a country whose living conditions are among the EU’s worst; others are splashing out on holidays and televisions. Fewer Romanians are investing their windfall in long-term assets such as apartments.

Florian Libocor, an economist at BRD-Groupe Societe Generale SA, told Bloomberg people are behaving like the government’s largess will continue indefinitely. That’s not likely to be possible as the European Commission warns on the sustainability of the budget deficit.

The EU predicts Romania’s economy will expand 4.4% in 2018 after eclipsing growth elsewhere in bloc last year. But the first signs of a squeeze on its citizens are appearing. Inflation reached a 4 1/2-year high in December and the central bank has already begun raising interest rates, which had been stuck at a record low since 2015. Money markets have been ahead of the curve, pushing up monthly mortgage repayments for some Romanians by about 15% in the past three months.

Liberals Say Tax Form 600 Punishes Active Citizens

The Liberal Party said Tax Form 600 for people who earned money outside of salaries in 2017 even though they are employed is an absurd bureaucratic measure to punish active citizens.

“As if the number of tax forms wasn't high enough and the chaos stirred by the transfer of social security contributions from employer to employee wasn't enough, the government has introduced a new useless tax form,” the Liberal Party said in a statement.

All individuals who earned more than the equivalent of 12 minimum wages (RON22,800) apart from their monthly salary are obliged to fill Tax Form 600 on social security contributions by end-January.

Office Stock Boom in Northern Bucharest Overcrowds Public Transport

Higher numbers of corporate offices in northern Bucharest have led to overcrowded traffic in nearby subway train stations.

Stations Aurel Vlaicu and Pipera, the nearest to the corporate offices area, recorded the highest increases in traffic last year.

Nearly 7 million passengers went through Aurel Vlaicu station last year, up 7% compared with 2016, and around 6 million through Pipera, a similar traffic increase.