Financial Press Review, 9 June

The wealth of the Romanians working abroad, the comeback of the cement industry and the still inaccessible homes after three years of price reductions were the main topics of the financial press review.

Under the heading ‘Finance are out today on foreign market for one billion euros’, the Ziarul Financiar revealed that ‘after a more than a year break, Romania is now on the international capital market with the first issue of securities in euro of the external funding program of 7 billion euros’, ‘there was a high interest of the investors, including of the locals.’

The Ziarul Financiar however opened with an article entitled ‘Romanians who work abroad have raised 100 billion in the last decade.’

According to the Soros Foundation study, that made the appraisal, the savings - held in foreign banks as cash - were four times higher than their co nationals had in Romanian banks.

‘For each euro they sent home, the Romanians abroad save 4 euros in the country of migration. Romanians did not go to work to send money home, but for the savings. Therefore, they regarded remittances as an expense and not as an investment.’

‘The study, the newspaper wrote, also destroyed another myth about Romanian migrants. Approximately 70 percent of the Romanians working abroad in the formal sector, and 5% of them had their own business or authorized individual type contracts.’

The first page of the Curierul Naţional has the title ‘Romania – as seen in Europe.’

‘The European Parliament today gave its approval on the accession of Romania and Bulgaria to the Schengen area (...) but we received criticism even from those who have been appreciative’, the newspaper noted.

‘Organized crime, human trafficking, corruption and illegal immigration are still associated with Romania.’

The Bursa covered an article warning launched by President Traian Băsescu in yesterday's Government meeting: ‘We risk going to the temporary suspension of the use of European funds’, ‘in case the existing problems regarding the EU funds are not solved.’

Under the heading ‘The constructor returned to growth after two years of suffering, but the key word remains “caution”’, the Ziarul Financiar wrote that ‘representatives of the three largest producers avoided triumphant statements, were cautious in their appraisals, estimates and expected the start of the great infrastructure projects promised by the State.’

The Ziarul Financiar observed in an article: ‘Housing, inaccessible even after three years of decreases. How much is one square meter of housing: 2.4 salaries in Romania, 0.9 salaries in Hungary.’

In 2006 a square meter of housing cost in Romania more than five average salaries, the newspaper recalled.

Although Romania’s house prices have declined in the recent years, the accessibility rate to the local apartment market was still ‘much lower than in most other countries in the region.’

‘The Romanians are the only ones in Europe that spent over 50 percent of their income on basic needs, food and utilities,' the newspaper noted in this context.

Translated by: Iulia Florescu
MA Student, MTTLC, Bucharest University