Romania-Insider Monthly Wrap-up for August: The calm before the storm?
Our monthly overview for Romania Insider members brings you the main topics of the month, to make sure you don't miss the bigger picture, no matter how often you choose to read the news. If you choose to stay away from much of the media frenzy, this monthly bulletin brings the essentials without wasting a lot of time, in a basic visual version, so you can focus on the text alone.
Opening photo: Clasical music concert at Sala Palatului in Bucharest on August 30, 2021, part of the George Enescu International Music Festival - Photo source: Inquam Photos / Bogdan Ioan Buda
August was a more relaxed and less eventful month in Romania. Still, the peak of the summer holiday season was visible in the country's tourist hotspots and on the roads, where traffic was higher than usual due to many Romanians coming from abroad to spend their holidays at home.
However, the relaxed atmosphere could be just the calm before the storm as Romania prepares for an agitated autumn and an even more complicated winter. The fast rise in COVID-19 cases and energy prices are two of the most pressing problems in Romania today. Meanwhile, the leaders of the top two ruling parties in Romania - PNL and USR-PLUS - are also engaged in internal power battles and the coalition is not running very smoothly.
On the COVID-19 front, Romania's vaccination campaign made very little progress in August. The country's vaccination rate among adults is currently around 30% just as the European Commission announced that 70% of EU's population has been fully vaccinated. Meanwhile, the rise in new COVID-19 cases has accelerated in recent weeks, reaching levels not seen since May. This comes just two weeks before the start of a new school year in Romania in which the authorities hope students will be able to attend more classes in school than last year.
On the political scene, all eyes are on the internal elections in the National Liberal Party (PNL), the biggest party of the center-right ruling coalition in Romania. PM Florin Citu seems to have a slight advantage over PNL's current leader Ludovic Orban, who has been trying to gather support with a traditional and nationalistic discourse. Meanwhile, PM Citu had to manage an image crisis caused by 20-year-old drunk driving charges in the US. Still, a large number of PNL regional leaders have expressed support for Citu. The PNL congress takes place at the end of September.
USR-PLUS, the other major party of the ruling coalition, also has internal elections scheduled in early October. There are three candidates in the race, but the battle will be between USR leader Dan Barna and PLUS leader Dacian Ciolos. There are still many tensions between coalition parties, which are split over some bit topics such as the justice reform and a EUR 10 bln state-backed investment program for the development of regional infrastructure. The Government is also expected to adopt an important budget revision this month.
The new macro indicators released in August show a mixed picture. Romania posted 13% economic growth in the second quarter compared to the same period of 2020 and the estimates for the full-year growth are around 7%. However, the inflation rate also spiked close to 5% in July, pushed by higher energy prices. The central bank expects annual inflation of over 5% at the end of this year and could start hiking the monetary policy rate this autumn.
The business sector remains active in terms of M&A deals and financing rounds. The local companies' first-half results show a rapid recovery after last year's dip caused by the pandemic and related restrictions. The big banks, in particular, posted strong profit increases in the first half. Meanwhile, the biggest insurance company in Romania is struggling to solve its financial problems with the help of a foreign investor.
In real estate, August market the signing of the biggest office deal in Romania this year, after a relatively modest first half. Still, the top investors are accelerating their investment plans. The hotel market also shows signs of recovery, with two new hotel openings in August and more planned for next year.
Other important milestones announced in August were the record grain harvest and Dacia's new Sandero model climbing to number one in terms of sales in Europe.
Fresh data released in August show that Romania's resident population continued to decline in 2020. Meanwhile, over one million Romanians were officially registered in the UK.
August also brought the first large music festivals in Romania since the beginning of the pandemic - Summer Well and Electric Castle - as well as new editions of the Transilvania Film Festival and Sibiu International Theater Festival. The large events series will continue in September with the George Enescu Festival and Untold.
Below, you can browse through the most important topics in August, grouped by relevance. By clicking on a title, you can read the whole article on the Romania-Insider.com website.
COVID-19 - Fourth wave coming
- COVID-19: More than 5 mln people fully vaccinated in Romania
- Romania, last in EU for vaccination pace as new COVID-19 cases rise
- Romania could start offering COVID-19 booster shots in October
- Covid-19: RO Govt. approves ordinance on vaccination incentives
- EU digital COVID certificate: Almost 2 mln documents issued in Romania, health official says
- RO journalist investigation reveals network trafficking vaccination certificates
- Covid-19: Romania sells 700,000 vaccine doses to Ireland
- Romania donates 450,000 Moderna vaccines to South Korea
- Romania has donated or resold more than 3 mln COVID-19 vaccine doses
- RO health authorities warn of rising number of Covid-19 cases
- Romania reports highest number of daily Covid-19 cases since end-May
- Western Romania: Modular hospital for COVID-19 patients reopens in Timisoara
- Covid-19: RO authorities expect daily case count to increase faster than initially estimated
- School starts on September 13 in Romania, president calls on parents and teachers to get vaccinated
- Covid-19 travel: Romania adds France, Iceland to red list
- Covid-19 travel: Romania adds US, Turkey to red list
- COVID-19 travel: Romania moves Switzerland to the red list, Bulgaria joins the yellow list
- Covid-19: Bulgaria revises entry requirements for Romanians, Spain adds Bucharest, Ilfov to risk list
POLITICS: Looking for new alphas
Domestic politics
- Romanian PM Citu apparently wins first round of elections for Liberal Party leadership
- Romanian PM's supporters display their strength ahead of party elections
- 20-year old drunk-driving case in the US haunts Romanian PM during party leadership race
- Romanian PM Citu reportedly defaulted on USD 6,700 credit card in the US
- RO Liberal leader officially jumps in the race for a new mandate
- RO Liberal MP hins secret services might interfere with internal party elections
- Romanian liberal leader stirs negative reaction from ethnic Hungarian UDMR
- Three enter the race to lead Romania’s USR-PLUS
- RO President, justice minister argue over delayed reforms
- Romanian PM Citu backs minister of justice
- Romania has new finance minister
- Romania’s Social Democrats plan to file no-confidence motion against Govt.
- Social Democrats postpone no-confidence motion due to lack of votes
Foreign politics
- Romanians are still far from travelling visa-free to the US
- Mercer Street: Romania condemns tanker attack that left one national dead, asks Iran for explanations
- Romania sends military plane to Afghanistan for evacuation mission
- British RAF Typhoons intercept Russian fighter over the Black Sea
Political decisions with impact on business
- Romanian PM Citu cuts social security spending under budget revision draft
- Romanian PM Citu disappointed by Transport Ministry's budget execution
- Romania's new finance minister questions inflation
- Tensions among RO ruling coalition members depress fiscal consolidation hopes
- RO budget revision brings deficit-to-GDP ratio marginally down to 7.13%
- Romania's Finance Ministry borrows euro at negative rates
- RO ruling coalition split over regional investment scheme PNDL
- Liberals endorse Romanian PM’s new state-financed local development program
- Covid-19 fiscal stimulus in Romania among the weakest in Europe
- Energy NGO urges RO Govt. to address sharp rise of prices
- Romania's Govt. looks for solutions to tackle rising energy prices
- RO Govt. prepares to get more EU funds for SME grants schemes
- RO Govt. sets in place electronic invoicing system
- RO Govt. ups car scrappage budget with EUR 80 mln
- Romania increases foreign workers quota by 25,000
- Design contract signed for Fagaras-Brasov highway in Romania
MACROECONOMY : Inflationary growth
- RO central bank keeps refinancing rate at 1.25%
- Romanian bank BCR says rate hike possible this November
- Romania's central bank ups yearend inflation forecast by 1.5pp to 5.6%
- Romania’s headline inflation spikes in July on high energy prices
- Romania’s economy increases by 13% in the second quarter
- Romania’s state forecasting body revises 2021 GDP growth forecast to 7%
- Erste cuts its economic growth forecast for Romania after Q2 reading
- IMF sees Romania’s economy going up by 7% this year
- Romania’s current account deficit widens by 73% in Jan-Jun
- Romania's trade gap widens by 23% YoY in H1
- 1% of Romanian employees earn above EUR 3,000 net
- Wages in Romania up real 3.3% YoY as of June
- Retail sales in Romania up 5.8% QoQ in Q2
- Romania’s construction sector accelerates in June
- Romania’s medicines market rises by 10.6% YoY to EUR 3.9 bln
- Romania’s FDI: reinvested earnings more than tripled in Jan-Jun
BUSINESS: M&A market remains active, banks post high profits
M&A, new investments
- PwC counts 83 M&A deals worth EUR 1.8 bln in Romania during H1
- EY says Romania’s M&A market remained below EUR 1 bln in H1
- Vinci Energies takes over Romanian refrigeration specialist Frigotehnica
- Keywords Studios of Ireland takes over RO game developer AMC for EUR 2.8 mln
- Real estate developer Portland sells 150MW PV park project to foreign investors
- RO IT group Bittnet envisages M&A deals worth EUR 40 mln
- US fund invests EUR 21 mln in Romanian energy and gas supplier
- Romanian brokerage firm buys 10% stake in local bank
- Italian investor ponders EUR 300 mln rebar and wire plant in Romania
- Plasterboards producer Etex invests EUR 6 mln to secure raw material in Romania
- Turkish investor closes EUR 10 mln plastic pipe factory in Romania
- Rovina gold mining project in Romania close to getting final permits
Startup financing
- Romanian-born FintechOS gets USD 10 mln from IFC
- RO audiobook app raises EUR 0.5 mln with Seedblink campaign
- Romanian fintech Bankata.ro raises EUR 180,000 funding for development
- Company data aggregator founded by Romanians looks for EUR 1.4 mln financing
- RO Govt. takes steps to regulate Seedblink and other crowdfunding platforms
- Cloud company co-founded by two Romanians reaches USD 38 bln valuation
- US startup with Romanian co-founder reaches USD 3.6 bln valuation
Energy
- American-backed project could start gas deliveries from Black Sea by the end of this year
- Romania's Hidroelectrica reaches historic valuation after strong first-half results
- RO minister says Hidroelectrica IPO scheduled for H2 next year
- Romania's Romgaz reports 24% more gas deliveries, but only 2.6% bigger revenues in H1
- Romanian energy group Electrica sees 60% lower profit in first half
Banking & insurance
- Romania’s banks record 50% higher profits in the first half of this year
- Banca Transilvania Financial Group’s net profit up 47% in H1
- Romania’s BCR bank posts 38.5% bigger net profit in H1
- Profit of Romanian SocGen subsidiary BRD up 51% in H1
- ING Romania reports 19% higher profit in the first half of 2021
- Raiffeisen Bank, Unicredit report higher profits in Romania amid lower cost of risk
- Report: City Insurance used fake bank statements to demonstrate capitalisation
- Dutch investor brings EUR 150 mln to help troubled Romanian insurer
- Euroins Romania announces more capital increase and new strategy
- Austrian insurer VIG sees 16% revenue growth in Romania in H1
Real estate
- Adventum completes acquisition of Hermes Business Campus offices in Bucharest
- Commercial real estate deals in Romania could reach EUR 900 mln this year
- Report: Developers plan 60% less office space in Bucharest delivered next year
- Logistics space leasing deals increase in Romania in H1 2021
- CTP will build EUR 32 mln cargo terminal at Oradea airport in Western Romania
- Top logistics investor CTP accelerates investment plan in Romania
- Real estate developer NEPI ups investment target in Romania this year
- BRD-SocGen arranges EUR 120 mln ESG loan for NEPI Rockcastle
- Romaero sells 17ha of land in northern Bucharest
- Rents for new apartments in Bucharest go down in first half
- Lithuanian group opens luxury hotel in Bucharest's Old Town
- Ibis Politehnica hotel opens in Bucharest
- Accor brings two new hotel concepts to Bucharest in 2024
- First Radisson Blu hotel in Cluj-Napoca set to open next spring
Transport
- Blue Air, Wizz Air announce additional routes from Romania
- Tarom seeks to borrow USD 60 mln for three new aircraft
- Air traffic in Romania 18%-22% below pre-crisis level, in July
- Dacia starts taking orders for the new Duster SUV in Romania
- Dacia Sandero becomes Europe’s top-selling car model in July
- Renault prepares to unveil new seven-seater Dacia model
Agriculture
- Romania prepares for record sunflower crop but much of it is exported raw
- Romania boasts biggest wheat harvest since joining the EU
- Romanian group Holde Agri Invest completes acquisition of 2,400-hectare Videle farm
- Agricover Holding ups net profit by more than a third
Other company news
- Romanian MedLife’s shares jump 5% on strong first-half results
- Romanian developer One United doubles turnover and more than triples net profit in H1
- Founders of developer One United ask for super-voting shares
- Microsoft partner Allyis rents 1,500 sqm of offices and seeks to hire 150
- Cegeka plans satellite offices for expansion in Romania and Moldova
- Major Romanian online retailer CEL files for insolvency
New in town
- Peer Gebauer is the new German ambassador to Romania
- Deutsche Telekom appoints new CEO for its mobile division in Romania
- Kuldeep Kaushik to take over as CEO of NN in Romania
- Free Now appoints new country manager for Romania
Other
- Dutch operator creates another 50ha of beaches in the southern part of Romanian riviera
- Romanian 'King of Roma' launches cryptocurrency project Gypsycoin
SOCIAL & LIFE: Imbalances grow, return of the festivals
Social issues
- Romania’s resident population continues to shrink in 2020
- It’s official: Over one million Romanians settle in the UK
- Pilot project: Romania starts issuing eID cards
- Survey shows Romanians' perceptions on remote work, online education
- Most Romanian employees consider working after retirement, survey shows
- Survey: 3 mln Romanians can’t afford a holiday
- Romanians spent 90% more on online sports betting and gambling in 2020
- Survey looks at Romanians’ religious behavior, motivations for observing traditions
- Romania sends firefighters to battle blazes in Greece
- Romanian municipality tests first locally-produced e-bus
- Health campaign: 20 squats for a free bus ride in Cluj-Napoca
- Romanian-born researcher on Forbes' list of women shaping the future of science, tech and art
Leisure
- George Enescu Festival 2021: Highlights of an anniversary edition
- Transilvania Film Festival: Philipp Yuryev's The Whaler Boy wins top prize
- Romania’s Electric Castle festival attracts over 186,000 participants at special 2021 edition
- Untold 2021: More artists join lineup of Romanian festival
- Forever Hit festival brings 80s-90s music stars to Bucharest next month
- Sibiu: Astra Film Festival to cover topic of climate crisis
- iMapp Bucharest: Video mapping shows to light up the Parliament Palace this fall
- Tarja Turunen will perform in Bucharest and Cluj-Napoca next year
- Vangelis’ new album inspired by NASA’s Jupiter exploration features RO soprano Angela Gheorghiu
- Central Romania: Museum dedicated to daily life under communism to open in Brasov this fall
- Two Romanian photographers launch photobook dedicated to Viscri village in Transylvania
- Romania listed among best European destinations for kids and families
- New video streaming service to launch in Romania next year
- RO team among top ten at World Schools Debating Championships
- Cluj-Napoca to host another WTA 250 tournament this year
- Tokyo Olympics: Romania ranks 46th in medal table
- Tokyo Paralympics: Romanian minister Eduard Novak wins silver in men's individual pursuit
- History student to represent Romania at Miss Universe 2021
andrei@romania-insider.com
(Photo source: Inquam Photos)