Press Review - November 7, 2017

11.07.2017 By Oana Gavrila

Liberals To Submit Motion to Dismiss Energy Minister

The opposition Liberal Party has drafted a motion to dismiss energy minister Toma Petcu over rampant growth in energy prices and political control over state energy companies.

Liberals want the energy minister dismissed over recent electricity price hikes, lower natural gas stocks required for this winter season and the government's withdrawal of special dividends form the state's major energy companies, which eats into the companies' investment budgets, said liberal lawmaker Virgil Popescu.

The motion will be submitted to Parliament next week.

President Says Government's Tax Plans Mustn't Be Implemented in 2018

Romanian President Klaus Iohannis said Monday the government's proposed tax changes should not be implemented as of January 1, 2018.

He said the measures must be postponed until their potential impact is thoroughly assessed an impact and a major postponement is required.

Iohannis last week criticized the government's proposed tax measures, warning their implementation would muddle the country's finances and hinder sustainable economic growth.

Analysts and representatives of the business environment criticized the plans and the government's haste in implementing them. Trade unions have organized protests against the transfer of social security contributions that they say would essentially cancel the wage hikes approved earlier this year.

The Economic and Social Council and the Fiscal Council both advised against the measures.

CFR Marfa To Transport 9 Million Tons of Coal for CET Govora

State-owned railway freight carrier CFR Marfă signed a four-year agreement with CET Govora to transport 9 million tons of coal on the Berbesti-Alunu route to CET Govora platform.

CFR Marfa announced Monday it won the tender held on October 6.

In the first half of the year, CFR Marfa had a market share of 49.5% in railway freight transport and in 2016 it conducted 83% of all coal transports in the country.

State-owned coal and power producer CET Govora reported a net profit of RON30.6 million in the first half of 2017, compared with a loss of RON5 million in the year-earlier period.

Transporters Demand Higher Fuel Excise Refund

Romanian road transporters called on the government to speed up fuel excise refund procedures and to raise the refund to at least EUR0.05 a liter from EUR0.04 a liter.

“Each cargo truck no longer fueling up in Romania costs the state indirectly 20 times more than fuel excise refunds,” the transporters' union said in a press release.

Romania raised excise duties on fuel by more than 20% in two stages, as of September 15 and October 1. Transporters, who are the biggest consumers of fuel, have threatened to stage ample protests and to fill up abroad unless part of the excise is refunded.

Romania's 2018 Budget To be Built on 5.5% Economic Growth Projection

Romania Forecast Commission has published its estimates for 2017-2021 in view of the government drafting the 2018 state budget and sees a gross domestic product of RON907.9 billion next year and economic growth of 5.5%.

Considering a general average of budget revenue at 30% of GDP over the past years, the commission calculated 2018 collections should reach at least RON272 billion and spending should be limited at RON300 million to keep within the EU-required 3% of GDP budget deficit limit.

Investments in the economy are set to grow 7.9%.

The forecast shows sectors with the biggest growth in 2018 would be construction (+7%), services, including retail and transport (+6.2%), and industry (+5.2%). Imports are seen growing 7.9% and exports are seen growing 6.5%, which would lower net exports by 1.4%. Lower net exports is the sole indicator that could hinder economic growth in 2018, the commission envisages.

The forecast indicates the government will focus more on investments, construction, and services next year than on consumption, which would be a major shift in policy compared with recent years.

Health Ministry Starts Breast Cancer Screening Pilot Program in 2018

Romania's Health Ministry will implement a five-year pilot program for breast cancer screening early next year.

The program is estimated to benefit over 30,000 women and to cost EUR21 million.

Studies show 7,500 new cases of breast cancer were recorded in Romania this year, meaning 21 new cases a day. Also, 90% of breast cancer cases detected in Romania are found at later stages, lowering survival rates.