Radio România Internațional

Tag: costs

  • Bucharest – the most affordable European capital to live in, study finds

    Bucharest – the most affordable European capital to live in, study finds

    A new research looked at Europe’s capital cities, ranking them based on the affordability of 8 living costs, including rent, utilities and travel. Bucharest was found to be the most affordable European capital to live in.

     

     

    Personal finance experts at Finansvalp gathered data from the cost-of-living website Numbeo to create their affordability index, which included every European capital city, scored out of 100 based on 8 factors.

     

     

    The factors in the index include the monthly cost of renting a one-bedroom apartment outside the city centre, electricity and water bills, monthly mobile phone and broadband plans, fitness club fees, a travel pass and the price of a meal out for two. These expenses were measured against the average monthly net salary for a person living in each city.

     

     

    In light of these factors, Bucharest, Romania, was found to be the most affordable European capital city to live in, scoring 59.69 out of 100. Next in the list come Chisinau and San Marino.

     

     

    The study found that residents in Bucharest pay around 34% of their monthly incomes (on average £1,098.50 after tax) on accommodation. The average rent for a one-bedroom apartment outside of the city centre was found to be £375.15.

     

     

    Another £164.57 a month is spent on household bills and £120.69 goes on lifestyle expenses, such as dining out, fitness and travel passes. This means residents are left with around £438.09 each month in disposable income.

     

     

    The second most affordable capital city in Europe is Chisinau, Moldova, scoring 56.40 out of 100,  followed by San Marino, with a score of 54.53 out of 100.

     

     

    The 10 most affordable European capital cities to live in

    Rank Capital city Country Affordability Score / 100
    1. Bucharest Romania 59.69
    2. Chisinau Moldova 56.40
    3. San Marino San Marino 54.43
    4. Vilnius Lithuania 53.68
    5. Vaduz Liechtenstein 53.19
    6. Warsaw Poland 53.10
    7. Helsinki Finland 53.00
    8. Skopje North Macedonia 52.98
    9. Budapest Hungary 52.75
    10. Madrid Spain 52.03

     

     

    At the opposite pole, the study revealed that the most expensive European capital to live in is London, England, which scored 41.04 out of 100. Average incomes in the English capital are around £4,169.68 after tax, with nearly half of that (49.5%) going on rent (£2,064.91 for a one-bedroom apartment).

     

     

    The second-costliest capital city is Monte Carlo, Monaco, with a score of 41.23 out of 100, while Dublin, Ireland, which scored 42.24 out of 100, comes third.

     

     

    Speaking on the findings, Olle Pettersson, CEO of Finansvalp, said:

     

     

    “Living in Europe’s capital cities can be a financial tightrope, requiring strategic budgeting and savvy decision-making to thrive in a cosmopolitan lifestyle.

     

    “As such, understanding the financial landscapes of European capitals is crucial for individuals, which is why our data experts have analysed the living factors driving costs.

     

    “We hope this will empower locals and emigrants alike to make informed choices about their finances and lifestyles in an increasingly interconnected world.”

     

     

    Credits: https://finansvalp.se

     Sources: Numbeo

     

  • May 24, 2022

    May 24, 2022

    MEASURES A new set of social and economic measures agreed on by the ruling
    coalition made up of the Social Democratic Party and the National Liberal Party
    will take effect in Romania as of July 1. The measures include postponements of
    bank loan repayments for citizens and businesses struggling with financial
    problems, as well as support for low-income pensioners. The government will
    also take steps to ensure fiscal consolidation and public deficit commitments. The
    costs of this set of measures reach EUR 1.1 bln.


    POLL Six out of 10 Romanians (58%) believe cutting consumption is the
    easiest solution for the financial difficulties caused by the rising inflation,
    says a survey made public today. In April, the inflation rate reached a record
    13.8%, well above the National Bank’s 12.5% forecast for 2022. According to the
    survey, 67% of the respondents see the government of Romania as responsible for
    this inflation rate. Three-quarters of Romanians also believe inflation is
    higher in Romania than in other countries. The respondents say the most
    substantial price rises are witnessed for foodstuffs (77%), fuel (77%) and
    utilities (electricity and gas) – 70%. In this context, 58% say reducing
    consumption could solve the inflation problem, but pay raises are also
    considered as solutions, and so is emigration. The survey was conducted online,
    between April 20 and 26.


    IMF The International Monetary Fund managing director Kristalina
    Georgieva said on Monday that while a recession of the world’s major economies
    is not expected, it is not out of the question either. The global economic
    prospects have worsened since the IMF’s downward adjustment of its 2022
    forecasts, owing to the war in Ukraine, the slow-down of China’s economy and
    the global price shocks, especially in the foodstuff sector. ‘In a short period
    of time…the horizon has darkened,’ Kristalina Georgieva said. In January, the
    IMF estimated that this year the global economy will grow by 4.4%, but last
    month the forecast was adjusted to 3.6%.


    NATO NATO fighter jets deployed to military bases in Romania carry on their
    missions to ensure the integrity of the Allied air space, the Romanian defence
    ministry said. In less than 6 months, Italian Eurofighter Typhoon aircraft
    stationed at the Mihail Kogălniceanu base in south-eastern Romania reported a
    combined 1,000 hours of flight in NATO missions protecting the Romanian air
    space. Air missions are paired with missions of the NATO Battlegroup set up in
    Romania in the wake of Russia’s invading neighbouring Ukraine.


    REFUGEES The number of Ukrainian nationals entering Romania on Monday was 2.4%
    smaller than on the previous day, reaching 7,709, the Romanian border police
    announced. Since the start of the crisis, more than one million refugees crossed
    the border into Romania. Meanwhile, new checkpoints will be opened on Romania’s
    border with Ukraine, allowing the Siret checkpoint, in the north-east, where
    trucks are currently waiting up to 14 hours to leave the country, to give
    priority to humanitarian assistance shipments. In a first stage, a checkpoint
    will be opened at Vicovu de Sus (north) for vehicles up to 3.5 tonnes, and
    another one at Racovăţ (north-east) for vehicles of up to 7 tonnes. Later on, a
    new checkpoint will also be operational in Ulma (north-east).


    TENNIS The Romanian tennis player Ana Bogdan Ana Bogdan (93 WTA) was
    defeated on Monday by Victoria Azarenka of Belarus (15 WTA), 6-7 (7-9), 7-6
    (7-1), 6-2, in the first round of the Roland Garros Grand Slam tournament. Irina
    Begu was also scheduled to play on Monday against Jasmine Paolini of Italy, but
    the match was suspended because of the rain in the 3rd set. On
    Tuesday 3 other Romanians, Simona Halep, Irina Bara and Mihaela Buzărnescu will
    play in the main draw. Sorana Cîrstea qualified in the second round on Sunday,
    while Gabriela Ruse lost her first round. Halep, seed no. 19, is a Roland
    Garros champion in 2018 and a finalist in 2014 and 2017. (AMP)

  • Energy prices cause growing concern

    Energy prices cause growing concern

    A committee has been set up in the Parliament of Romania to investigate the substantial increase in the price of natural gas and electricity. The committee found that these increases are in line with European trends.



    Energy prices in the continental market have reached record-high levels, fuelled by the costs of green certificates and the natural gas prices. Another problem for the European energy market is the uncertainty around gas imports from Russia, given that European storage facilities were only 70% full.



    The European Commission vice-president Frans Timmermans said the unprecedented electricity prices in member states prove that the Union must give up fossil fuels and step up the transition to green energy. He also noted that, while fossil fuel prices rose substantially, the costs of renewable energy remain low and stable.



    EU member states like Italy, Spain and Greece responded to the rise in conventional energy prices and have already announced aid measures to help people pay their bills. In Bucharest as well, the government is planning to help households cover their electricity and natural gas bills.



    Under a draft emergency order first discussed on Wednesday, the government would subsidise electricity prices by 3.6 eurocents per KWh and natural gas bills by 25%. Beneficiaries will include households that use between 30 and 200 KW of electricity per month and between 100 and 1,200 cubic metres of natural gas per year. The average price used by the government in its plans is 16 eurocents per KW, and bills will be around 3.6 euro smaller per 100 KW.



    The government is also looking at options to introduce a natural gas price ceiling. PM Florin Cîţu said this should not affect investments in the economy, and that the measure requires talks with the Competition Council and the European Commission. According to the energy minister Virgil Popescu, such a ceiling would discourage foreign investments in Romanias electricity and natural gas extraction markets, because companies would be forced to sell for less than the market price.



    The Social Democratic Party in opposition announced that in the forthcoming period they will table a bill introducing a ceiling on electricity and natural gas prices for household consumers, as a stop-gap solution. The Social Democrats vice-president Mihai Tudose criticised the right-of-centre government for deregulating the energy market at the worst possible time, when the domestic output is considerably below its potential. (tr. A.M. Popescu)

  • Measures to restart the economy

    Measures to restart the economy

    Romanias economy will emerge from this crisis with a different structure, but more efficient and more competitive, the finance minister Florin Cîţu believes. According to him, measures to support production capacities have been taken from the very beginning.



    For SMEs, heavily affected by the corona crisis, a programme called IMM Invest has been initiated, designed to provide funding for current operations or for investments by means of state guaranteed loans.



    Originally launched on April 17, the platform crashed immediately as hundreds of thousands of users tried to access it per minute. On April 28, the IMM Invest platform, now operated by the Special Telecommunications Service, was once again operational. And nearly 20,000 entrepreneurs applied online from the first hour of operation.



    But funding will not be granted on the first come, first served algorithm, as the honorary president of the National SME Council, Ovidiu Nicolescu, explains:



    Ovidiu Nicolescu: “An applicant has to prove its capacity to use this money in a productive, profitable manner, and that it will be able to repay the loan. Amounts will not be broken down by economic sector, there would be no point in doing so.



    The president of the National Guarantee Fund for SMEs, Dumitru Nancu, also warns that it will be up to banks to decide which applications will be approved:



    Dumitru Nancu: “A total of 22 banks are taking part in this 15-billion lei fund. The bank will be the one that will analyse whether the entrepreneur—the small or medium enterprise—is creditworthy, according to the banks own rules. Once a loan is approved, the request is forwarded to the Guarantee Fund, which covers 90% of the loan guarantee.



    The government covers 100% of the financing costs, and the amounts that can be applied for are substantial. Entrepreneurs may apply until the end of the year and until the earmarked budget of around 3 billion euros is used up.



    The programme is backed by all political parties, and the emergency order regulating the operation of IMM Invest was passed by Senate on Tuesday without major changes.



    Meanwhile, the Ministry of Economy, Energy and the Business Environment approved a 3-month extension of the application period in a programme called Start-Up Nation, to September 28, 2020 at the latest.



    The ministry explained that the decision is aimed at mitigating the economic impact of the restrictions introduced during the state of emergency on the SMEs accepted into the Start-Up Nation programme. Currently in its 3rd year of implementation, Start-Up Nation is an initiative under which the government supports newly-established businesses.


    (translated by: Ana-Maria Popescu)

  • February 11, 2020

    February 11, 2020

    ELECTIONS In Bucharest, the PM designate Ludovic Orban has talks today with parliamentary party officials, in an attempt to garner support for the organisation of early elections. Snap elections may only be called if 2 Cabinet nominations are rejected by Parliament within 2 months. Orban, whose Liberal Cabinet was recently dismissed under a no-confidence motion, Monday sent to Parliament a list of ministers, with no changes whatsoever from the previous team, and a slightly updated government programme. The main party in Parliament, the Social Democrats, announced they will not take part in the talks with the Liberals. The Social Democratic Party filed a challenge with the Constitutional Court, arguing that the President designating a prime minister who has already been dismissed comes against the will of Parliament. On the other hand, the Social Democrats announced they would not hinder the procedures and announced a meeting of Parliament leaders to set a calendar for the hearings of the ministers designate. The idea of early elections is mainly supported by the National Liberal Party and Save Romania Union. Without a parliamentary majority, the Orban Cabinet has resorted more than once to pushing legislation through by requesting Parliaments confidence. Regular general elections are scheduled for this autumn.




    JUDICIARY The incumbent Justice Minister Cătălin Predoiu today in Bucharest presented European Commission experts with a bill on dismantling the special division investigating magistrate offences as well as the progress of debates on this topic. In its latest Cooperation and Verification Mechanism report the Commission criticised the establishment and the activity of this division, which it said was an instrument of political pressure. The latest report under the Mechanism was released in October 2019, and suggested the extension of verification on the Romanian judiciary, on grounds that in 2019 Romania backslid in terms of the fight against corruption and the independence of the justice system. A team of EC experts are in Bucharest until tomorrow, on an assessment mission. They are also scheduled to have talks today with leaders of the Higher Council of Magistrates and members of the judicial committees in Parliament.




    INFLATION The central bank has lowered Romanias 2020 inflation forecast from 3.1% to 3%, Governor Mugur Isărescu announced on Tuesday. For next year the National Bank expects a 3.2% inflation rate. A number of elements have been taken into account, which might lead to a decrease of the inflation rate from the forecast value. These elements include developments in the Eurozone economy, including geopolitical tensions and weaknesses in emerging markets, a possible escalation of trade conflicts, the completion of Brexit, as well as the accommodating monetary policies of the European Central Bank and the Fed. On the other hand, liberalisation of the electricity and natural gas markets may push inflation higher than expected, as do the problems in the labour market, such as the shortage of labour and the mismatch between demand and supply in this respect.




    112 February 11 is the European 112 Day, to celebrate the introduction of the Europe-wide emergency number 112. In Romania, the national emergency call system, run by the Special Telecommunications Service, was introduced in 2004. Last year STS operators managed over 11 million calls to this number.




    CORONAVIRUS China announced that the novel coronavirus has already killed more than 1,000 people, and the number of cases exceeds 42,000. In the last 24 hours alone, over 100 deaths have been reported, which is the largest number of victims in just one day since the epidemic broke out. Most deaths were reported in the Hubei province. A team of doctors with the World Health Organisation has arrived in China to help in the research. Meanwhile, the WHO organises a 2-day meeting in Geneva, with renowned physicians, public healthcare experts and scientists, in an attempt to encourage a better response of the international community to the new coronavirus outbreak. On opening the meeting, the WHO director general Tedros Adhanom Ghebreyesus said the coronavirus epidemic was a major threat, and called on scientists to work together to develop vaccines or medication to fight the virus. In Romania, several people, including Chinese nationals, are under house monitoring, and the authorities continue to take measures to prepare for possible infection cases. A special unit was set up in Bucharest for the Romanians who return from China and have to be quarantined for 14 days.




    AFGHANISTAN Reconstruction and stabilisation missions in Afghanistan had resulted by the end of 2018 in over 2,200 dead and 2,900 wounded, according to an official American report released on Tuesday with regard to the “human costs of these civilian and humanitarian missions. This is the first report focusing on reconstruction and stabilisation operations alone, including construction of infrastructure, hospitals and schools, military and civilian training, rather than on combat operations against the Taliban or other jihadist groups in the country. The report does not cover attacks on American military bases or on civilian targets either. Romania, which has been taking part in missions in Afghanistan ever since 2002, has lost 30 troops so far. In 2020, Romania has over 700 military deployed to Afghanistan under the Resolute Support mission.


    (translated by: Ana-Maria Popescu)