Blue Air Is Having Financial Problems
Low cost airline company Blue Air is facing serious financial issues and in order to cut costs, the company has started to take drastic measures. Large part of the employees, pilots and stewards will be sacked and the company will give up some abroad destinations and has already sold four of the 11 planes it owned. The company had to cancel this month three flights due to the lack of passengers.
Companies To Submit Fiscal Statements Online
The Ministry of Communications announced Thursday that Starting October the 1st, Romanian large and medium taxpayers will submit their fiscal statements online, through the National Electronic System (SEN). According to a press release the ministry, in cooperation with the National Agency for Fiscal Administration (ANAF), will prepare the system for the online submission of the single statement on social security contributions.
Traian Basescu Wants Harsher Measures
President Traian Basescu told Romanian ambassadors that came together in Bucharest that the state is forced to further pursue the austerity policy. Traian Basescu advised the diplomats as well not to let themselves fooled by the “televised mood”. He said that the main problem lies in the state budget, in the fact that there are no more resources for pensions and wages that some years ago were doubled over night.
Emil Boc Announces Replacements For Shuffled Ministers
On Thursday, Romanian Prime Minister Emil Boc announced that ministers Adriean Videanu, Sebastian Vladescu, Mihai Seitan, Mihail Dumitru, Gabriel Sandu and Radu Berceanu would be replaced with Ion Ariton, Gheorghe Ialomitianu, Ioan-Nelu Botis, Valeriu Tabara, Valerian Vreme and Anca Boagiu. If supported by the head of state, the nominees will take over the helm of the Ministries of Economy, Finance, Labor, Agriculture, Communications and Transport. According to the Prime Minister, Adriean Videanu, Radu Berceanu and Gabriel Sandu stepped down.
PM Boc: Tax Code Changes Will Be Announced Next Week
Next week, the Ministry of Finance will modify the norms for the application of the Government’s Emergency Ordinance 58/ 2010 for the payment of social contributions by employees, to ensure there will be no further monthly queues to file the statements of income. Therefor, the obligation of paying the contributions and filing the statements will be incumbent on the employer, rather than on the beneficiary.
The RON – An Advantage For The Romanian Economy?
The outlook of euro adoption around 2015 is more uncertain than ever and economists state the advantage of having our own currency, for which the Romanian elite fought hard a century and a half ago, is no longer as obvious. The RON first appeared as a physical currency in 1867 and came to strengthen national unity and identity. Dan Pascariu, chairman of UniCredit Ţiriac Bank board says that if Romania wants to be a strong economy, then being part of the euro zone clearly brings benefits. If not, we are more hedged with our currency.
Investments Dropped By 18.7 % In H1
The National Statistics Institute (INS) came yesterday with some data that shows investments in national economy dropping by 18.7 % to RON 22.48 bln in H1 of this year compared to the same period last year. Most of the drops have been reported in the industrial and commerce/services sectors. The same data shows the fact that the overall industrial production prices went up by 0.1 % in July compared to June and by 6.9 % compared to the same month last year.
ECB: Eurozone Growth Forecasts Raised To 1.4%- 1.8%
The European Central Bank (ECB) raised its eurozone growth forecast for this year and next year. ECB President Jean-Claude Trichet forecast GDP growth of between 1.4% and 1.8% for this year, and between 0.5% and 2.3% next year. He also said the eurozone recovery has been supported by global growth and reflected "temporary domestic factors". He added, however, that "uncertainty still prevails".
New Government Will Have To Take Into Account The IMF Arrangement Terms And Conditions
Analysts believe that after the political turmoil surrounding the reshuffling, Romania needs to improve its credibility. In turn, the new Government needs to build its policies around the IMF arrangement, by adopting more decisive measures. Analyst Aurelian Dochia says that the reshuffling was needed, but not in order to change direction.
Rental Prices Down
In the last few months, rental prices for studio and two-room apartments in the capital have decreased. Offers of 100-150 Euros per month started emerging, in quarters such as Titan, Berceni or Militari. In Grozavesti area, the demand for studio apartments grew by 41 %, while for two-room apartments it grew by 35 %. Demand for three-room apartments grew only by 13 %. According to Imopedia, rental prices of 100-150 Euro have re-emerged for studio apartments - in Titan, Militari, Berceni, Rahova, Drumul Taberei, and for two-room apartments - in Titan, Brancoveanu, Drumul Taberei, Colentina and Berceni.
