Economic Press Review November 3

“The key interest is at its historical lowest”, writes Bursa, pointing out that the rise in VAT and the delay of the fiscal consolidation have interrupted the fall cycle of the key rate.

NBR’s decision is a 'balanced solution between reduced economic activity and high inflation rate,' quotes Bursa the ING Bank analysts.

Foreign bank analysts don’t agree with the IMF optimism concerning the development of the Romanian economy in the 4th quarter, and are anticipating a fall, writes Ziarul Financiar.

Ziarul Financiar points out in an article that 'output is recovering in the biggest European economies.' The production sector in the euro zone has recorded a growth speed-up in October, for the first time in the last three months.

On the other hand, in an article singed Adrian Vasilescu, the same daily reminds us that in our country "the annual inflation rate, instead of sinking, has risen to 7.77%, the highest in the European Union, and the National Romanian Bank has a sole objective: inflation control."

"But', adds NBR governor advisor, 'measures by the National Bank have to be doubled by active fiscal and payrolls policies, and reviving restructuring actions, as well."

Under the title "Who and how is to supervise the billions from Brussels or the state's billions spent on acquisitions", Ziarul Financiar is trying to answer the following question: What is there to do for the public acquisitions system and the law not to block fund absorption, which, as the financial meltdown continues to linger, become essential not just to private companies, but to the public sector as well.

Public acquisitions alone represent a 13 billion euro market (over 9% of GDP), to which we can add another approximately 10 billion euro in acquisitions made by state-abiding companies.

To this we can add billions euro, irredeemable funds from the European Union that cannot be granted without a well organised system of public acquisitions, when it is authorities that ask for funds, and fair competitions between bidders, writes Ziarul Financiar.

"Past experience has not been encouraging." Our country has only absorbed 2% of the funds EU funds in pre-adherence programs.

"Post-adherence funds are not looking good either." About 7% of the 19 billion structural eurofunds at Romania's disposal until 2013 have actually been absorbed.

"The public acquisition law of 2006 has been extensively overhauled this summer."

The intention was to stop phony auctions that took advantage of that legal possibility to boost an older contract with addenda.

The legislative amendments have decreased the number of complaints filed against the auction, complaints that practically prevented the beginning of the project, and that were a source of blackmail (...). However, the number of complaints against specifications has risen.

It's that 'habit' of the contract already in store for somebody, when the 'specifications include requirements that only a certain company meets,' writes Ziarul Financiar, quoting Bogdan Lehel Lorand, the president of the National Council for Solving Complaints.

Economic newspapers quote the president's statement that it is a false impression that Ordinance 50 concerning natural persons applies retroactively, as bankers claim. “For the past four months the ordinance has placed banks and customers on opposing sides.”

"The dispute is yet to be resolved,"writes Ziarul Financiar, while Curierul Naţional says "IMF, a safety belt... for banks."

Translated by: Gabriela Lungu,
MA Stident, MTTLC, Bucharest University