Romania: the tensions between the ruling party and the central bank

Romania’s National Bank, Bucharest (Carpathianland, CC BY-NC)

Swiss company will install the largest portion of the Balticconnector interconnection

The Czech Republic: An average monthly wage up 7 per cent y/y in 2017

Romania

The conflict between Romania’s National Bank (BNR) and the ruling Social Democratic Party (PSD) escalates. Romania Insider reports on a public hearing of Mugur Isarescu, BNR governor, at the Senate economic committee that took place on March 29th. Mr. Isarescu was asked by Liviu Dragnea (PSD) and the government to explain the bank’s recent decision to increase the interest rates and to explain the inflation spike.

Mr. Isarescu said that the bank “was forced to increase the interest rate twice this year due to the accelerated increase in the annual inflation rate, with ample effects on the business environment”. He added: “We’ve been accused or it has been suggested that, at the beginning of this year, we rammed the economic growth. We believe that our reaction was adequate to the situation, proportionally with the risks that have been threatening us, and that it will yield results.”

Mr. Dragnea commented that the central bank’s monetary policy should be made after constant dialogue with the parliament and government.

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Estonia

The Baltic Course informs that Estonia and Finland agreed to hire Swiss company Allseas to complete the largest portion of the Baltic-connector between the two. Allseas will install the offshore section of the pipeline. The agreement for the instalment was signed between the Swiss company, the Estonian state-owned transmission system operator Elering and the Finnish state-owned company BalticConnector OY on Thursday, March 29th.

As reported, the works will start in summer 2018. The pipeline will be installed in the summer of 2019. The whole project is to be completed in fall 2019.

The European Union will provide EUR206m of financing. The total cost of the project is approx. EUR300m.

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Czech Republic

Wages in the Czech Republic are continuing to grow, as Radio Praha informs. In 2017, an average Czech monthly wage grew by 7 per cent y/y. The average wage was CZK30,000 (EUR1,179.65). 

According to the data from the Ministry of Labour and Social Affairs the median wage was about CZK26,000 (EUR1,022.34). Women saw a larger wage increase than men, but the difference between their salaries remains significant. It reached CZK7,000 (EUR275.25) in some cases.

The best paid are air traffic controllers and senior state officials – they earn on average CZK200,000 (EUR7854) a month. The Radio points out that despite the increase, 65 per cent of employees makes less than the average 30,000 (1179.65) crowns. 

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What’s up in indexes

BET (of Bucharest) decreased from 8,724.01 index points Wednesday, March 28th to 8,702.50 index points Thursday, March 29th. It’s down 0.28 per cent d/d and up 9.57 per cent y/y.

BUX (of Budapest) increased from 36,783.00 index points Wednesday, March 28th to 37,258.90 index points Thursday, March 29th. It’s up 1.29 per cent d/d and up 15.59 per cent y/y.

CROBEX (of Zagreb) decreased from 1,813.98 index points Wednesday, March 28th to 1,804.97 index points Thursday, March 29th. It’s down 0.50 per cent d/d and down 7.00 per cent y/y.

OMXR (of Riga) increased from 1,039.37 index points Wednesday, March 28th to 1,046.18 index points Thursday, March 29th. It’s up 0.66 per cent d/d and up 35.37 per cent y/y.

OMXT (of Tallinn) increased from 1,268.37 index points Wednesday, March 28th to 1,269.20 index points Thursday, March 29th. It’s up 0.07 per cent d/d and up 12.88 per cent y/y.

OMXV (of Vilnius) increased from 695.62 index points Wednesday, March 28th to 702.25 index points Thursday, March 29th. It’s up 0.95 per cent d/d and up 24.97 per cent y/y.

PX (of Prague) increased from 1,119.05 index points Wednesday, March 28th to 1,123.89 index points Thursday, March 29th. It’s up 0.43 per cent d/d and up 14.37 per cent y/y.

SAX (of Bratislava) decreased from 330.00 index points Wednesday, March 28th to 329.51 index points Thursday, March 29th. It’s down 0.15 per cent d/d and up 7.90 per cent y/y.

SOFIX (of Sofia) decreased from 654.09 index points Wednesday, March 28th to 649.17 index points Thursday, March 29th. It’s down 0.75 per cent d/d and up 2.50 per cent y/y.

UX (of Kyiv) decreased from 1,684.87 index points Wednesday, March 28th to 1,654.42 index points Thursday, March 29th. It’s down 1.81 per cent d/d and up 64.51 per cent y/y.

WIG20 (of Warsaw) increased from 2,203.70 index points Wednesday, March 28th to 2,210.38 index points Thursday, March 29th. It’s up 0.30 per cent d/d and up 0.18 per cent y/y.

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