Press Review - January 17, 2018

01.17.2018 By Oana Gavrila

Romanian President Meets Japanese Prime Minister In Historic Visit To Bucharest

Romanian President Klaus Iohannis on Tuesday met at the presidential residence in Bucharest with Japanese Prime Minister Shinzo Abe in the first visit of a Japanese prime minister to Romania.

They held a joint press conference later in the day, in which President Iohannis said that Romania supports the international sanctions on North Korea imposed by the UN Security Council and that the two officials decided to further develop the relations between Romania and Japan and bring them to the rank of strategic partnership.

“Today we agreed that we share the same values and strategic goals, we have similar views when it comes to security matters in such a volatile environment, as well as common economic interests,” President Iohannis said.

Romania is a crucial partner for Japan and the two countries will have a close cooperation, the Japanese official said. He added that the economic area represents the central element for strengthening the relations between Romania and Japan and said the most important aspect of Romania’s economy is infrastructure consolidation. In this respect, he mentioned Japan’s involvement in the construction of Bucharest’s M6 metro line that will link the city to the airport.

President Calls Parliamentary Parties to Consultations on New PM Wednesday

Romania's President Klaus Iohannis holds consultations Wednesday with parliamentary parties to appoint a new prime minister after the resignation of social democrat Mihai Tudose.

The ruling Social Democratic Party on Tuesday picked MEP Viorica Dancila as its proposition for prime minister. Dancila is a close ally of party leader Liviu Dragnea.

Prime Minister Mihai Tudose stepped down Monday evening after the social democrats pulled their support for him. Tudose's resignation comes after he accused Interior Minister Carmen Dan, a close ally of Dragnea, of lying and called on her to resign, yet she refused to quit.

Political Crisis Takes Romanian Leu to New All-Time Low

Political turmoil in Romania has pushed the local currency down to a new all-time low.

The central bank on Tuesday calculated an average reference rate of 4.6599 lei to the euro.

At the same time, all Bucharest Stock Exchange indices went down.

On Monday, the ruling Social Democratic Party has ousted its second prime minister in a year.

Banking Sector Contributed RON20B To Romania's State Budget In 2012-2016

The banking sector paid a total RON20.6 billion to Romania’s state budget between 2012 and 2016, in taxes and contributions, according to a study released Tuesday by the Romanian Banking Association (RBA), conducted by PwC.

The study shows the banking sector directly contributed RON13.4 billion to the state budget between 2012 and 2016, and the contribution of other industries as a result of sales of products and services toward the banking sector is estimated at RON7.1 billion. Thus, the total impact reaches RON20.6 billion.

The value of social contributions paid by banks amounts to RON8.9 billion, „proving the impact of the banking sector on the social field, because these contributions are still used by the state for the payment of current social obligations (pensions, unemployment etc.)”, as per the study. It also shows that VAT payments rose to nearly RON4.9 billion between 2012 and 2016, „considering that this tax translates into costs for banks, which are not VAT-registered”.

The PwC Romania study also shows the banking system contributed 4.2% to Romania’s GDP, during the 2012-2016 period „for which the indirect and induced effects on the economy are also considered”.

Over 500 Arcelormittal Galati Workers Protest, Call For New Labor Contract

Over five hundred workers from ArcelorMittal Galati, Romania’s largest steel mill, on Tuesday protested in demand for a new collective labor contract for 2018 and higher wages, bonuses and increased value of meal tickets.

The workers clustered in front of the administrative building and demanded to discuss with the board representatives.

Trade union leaders are carrying negotiations with the management, but the two parties are yet to reach a compromise.

Unionists demand a 20% increase in wages and bonuses, promotion for trade union members and an increase in the value of meal tickets. The board offered so far a RON50 increase for wages and a RON40 increase for bonuses and insists on a two-year collective labor contract and the introduction in the base salary of the bonus on the account of difficult working conditions.