Press Review - November 10, 2015

11.10.2015 By Gabriela Stan

Energy Minister: Works On Nuclear Reactor Project To Start In Two Years

The construction of the third and fourth reactors at the country’s sole nuclear power plant in Cernavoda will start in two years at most and will contribute to Romania’s economic growth, Energy Minister Andrei Gerea said Monday.

"This is a special moment both for Romania and for China. This is the time when we are laying the foundation which will bring a significant surplus of energy that will contribute to Romania’s stability as regional energy hub," Gerea said Monday, at the signing of a memorandum of understanding with China General Nuclear for the construction of the two units.

Nuclearelectrica on Monday signed a memorandum of understanding with China General Nuclear for the construction of two nuclear reactors in a EUR6.4 billion investment.  (Romania Libera)

Romania Central Bank Revises 2015 Inflation Forecast To -0.7% From -0.3%

Romania's central bank has revised its annual inflation forecast for this year and sees it at -0.7% from -0.3% in August, considering the impact of tax cuts, central bank governor Mugur Isarescu told a news conference Monday.

The central bank also revised the inflation forecast for 2016 to 1.1% from 0.7% envisioned back in August.

Isarescu said annual inflation in Romania is expected to remain in negative territory until May 2016 and return to positive territory by the end of 2016, when it is seen below 1.5%. The inflation rates is expected to re-enter the central bank's target band of 2.5% plus/minus one percentage point in 2017. (Puterea)

Romania’s Economy At Risk Of Overheating Again

Romania’s economy is at risk of overheating, like it happened back in 2008, given that the massive tax cuts trigger a consumption growth, which, in its turn, leads to higher trade deficit. Thus, analysts warn on the current exchange rate and ask authorities for caution.

Romanian imports maintained a higher growth rate than exports in January- September, widening the country's trade deficit to EUR5.534 billion ($5.948 billion), data from the country's statistics office showed Monday.

The country's trade deficit stood at EUR4.3 billion in January-September 2014.

Imports grew 7.1% on the year in the first nine months, to EUR46.44 billion, while exports grew 4.7%, to EUR40.91 billion, the data showed. (Adevarul)

Social Democrats Propose Liviu Voinea As Prime Minister

PSD proposed Liviu Voinea, deputy governor of the central bank, as Prime Minister, while the liberals had no proposition for the position of PM but said they also support the forming of a technocratic government.

Klaus Iohannis could also propose Dacian Ciolos, former EU commissioner, as Prime Minister.

"We thought of Mr. Liviu Voinea, who meets both the integrity criteria, as well as the expertise criteria, who enjoys the credibility of important financial institutions and has experience in this sector. We had talks with central bank governor Mugur Isarescu, who gave assurance that Mr. Voinea would have the central bank’s support if nominated,” Dragnea stated. (Adevarul)

President Sends Back To Parliament The Loan Agreement Between Romania And Moldova

President Klaus Iohannis sent back to the Parliament the Law ratifying the Agreement on reimbursable financial assistance between Romania and the Republic of Moldova signed in Chisinau on October 7, 2015, as there is no certitude that Moldova will continue the reforms.

“Given the current political context in the Republic of Moldova – occurred after the Parliament of Romania had adopted the law – we consider that the promulgation of the Law on ratifying the Agreement on reimbursable financial assistance between Romania and the Republic of Moldova signed in Chisinau on October 7, 2015, is no longer opportune as there is no certainty on the continuation of reforms and on observing the commitments for the implementation of the Association Agreement between the European Union and the European Atomic Energy Community and its Member States, on the one hand, and the Republic of Moldova, on the other hand, signed in Brussels on June 27, 2014,” according to the Presidential Administration. (Puterea)