Financial Press Review, January 19

The Ziarul Financiar opens with a statement from Jeffrey Franks, the chief of the IMF mission in Romania. ‘The biggest disappointment of the IMF after a two year arrangement with Romania is that the economy hasn’t recovered yet.’

‘Even with a 10 billion euro injection in 2009 and another 7 billion euro in 2010, the economy had an overall fall of 10 percent,’ the daily reads.

As for accomplishments, Jeffrey Franks mentions the fact that there hasn’t been a Romanian banking meltdown, because of the firm actions of banks and the National Bank of Romania. He also makes reference to the implementation of reform policies.

‘The reforms could have gone at a faster pace, but what is now crucial is that we build on the accomplishments we have, that we strengthen them and make sure that Romania doesn’t slide backwards. He also says that this is also the target of the new arrangement, which he is going to start negotiating in Bucharest next week,’ the Ziarul Financiar reads.

Under the headline ‘New arrangement with World Bank, IMF and EC,’ the Bursa daily prints an article which reads: ‘The new agreement with the World Bank will include reforms in four main fields, that is social care, health care, the modernization and simplification of the tax collection system, but streamlining public companies as well.’ There is much fraud and inefficiency in social care.

The Government should spend more efficiently, Peter Harold, the World Bank country director stated yesterday. On the other hand, ‘tax collecting might improve with 20 percent in three or four years, if the tax collection system is simplified,’ Mr. Harold assessed.

The Ziarul Financiar prints an analysis under the headline ‘Consultants ask for an in corpore decrease of social contributions: ‘It is vital in order to boost the competitiveness and attractiveness of the economy.’ ‘Consultants claim that the VAT reduction is more than welcome for businessmen and consumers, but, considering the budget restrictions and the need for income, they don’t expect one this year,’ the author points out.

The Curierul Naţional tells us how ‘What the new Labour Code will look like,’ listing the main changes.

The Ziarul Financiar also tackles this subject in an article with the headline ‘A more flexible Labour Code blocked again by unions and patronages.’ The article reads: ‘The project which brings 80 amendments to the Labour Code leaves room for abuses and can still be improved, specialists claim. Among the biggest stakes is eliminating some restrictions on temporary work force and expanding the period for temporary work contracts.’

‘Financial Investors Council representatives claim that the new amendments might generate 90 000 jobs by eliminating red tape and making the legislation more flexible,’ the daily also reads.

In the section opinions, the Curierul Naţional prints an article signed by Andreea Vass entitled ‘What is good in the Romanian economy?’ The author looks at the full half of the glass, which is far from spilling over.’ Under the interrogative headline ‘Will districts in Bucharest be dissolved?’

The Ziarul Financiar reads: ‘The people of Bucharest might be able to decide by means of a referendum if they leave 2-3 billion euro in the hands of one man.’ ‘The project has split town officials into two sides,’ the daily concludes.

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