Weastra

Slovakia – higher inflation rate then in 2010

barbora.vackova — Tue, 17 Jan 2012 21:18:50 +0000

According to Slovak Central Bank (NBS) the rise of prices in Slovakia in 2011 was a result of a higher inflation in 2011 compared to 2010, but price growth was higher in Slovakia than the average in the Eurozone.

The EU-harmonized inflation rate in Slovakia over the past 12 months was 4.1 percent, up from rate of 0.7 percent rate in 2010. NBS wrote that the higher level of prices in 2011 was due to higher energy and foodstuff prices as well as the increase in the VAT rate from 19 to 20 percent.

Energy prices in Slovakia rose by 10.5 percent in 2011 while foodstuff prices rose by 5.5 percent .

The NBS predicts that the inflation rate will fall to 4 percent in January.

Fitch Ratings downgrades Hungarian Banks

barbora.vackova — Mon, 16 Jan 2012 21:17:20 +0000

Four Hungarian banks have received a downgraded rating from Fitch Agency due to the negative outlook for the banking sector in Hungary. The long-term debt of CIB and K&H banks is lowered to “BBB”. Fitch also downgraded the support of the parent concerning CIB, K&H, Erste and Raiffeisen banks.

The weakened grades are a result of the economic recession and the large losses caused by the special taxes and the foreign-currency mortgage early repayment scheme.

Hungary’s total debt has risen to 82% of its output, while its currency, the forint, has fallen to record lows against the Euro.

Romania’s government calls crisis meeting over violent protests against austerity

barbora.vackova — Sun, 15 Jan 2012 21:16:46 +0000

After several days of violent protests on the main roads of Bucharest, Romania’s government called an emergency meeting late Sunday to discuss the situation which shows no sign of abating.

More than 1,000 protesters who are angry about austerity measures clashed with police, hurling stones and firebombs. At least 13 people were injured.

The protests are the result of frustration against public wage cuts, slashed benefits, higher taxes, cronyism in state institutions and widespread corruption.

Protests began on January 12th in support of a health official who resigned because he opposed government health care reforms. Mr.Basescu, the President of Romania withdrew the health care bill Friday, but protests continued.

The protests continue in several Romanian cities, calling for early elections of a new president.

Czech industrial output accelerates growth to 5.4 pct in Nov

barbora.vackova — Fri, 06 Jan 2012 21:15:18 +0000

According to the Czech Statistical Office (CSU) the industrial output of the country achieved an annual growth in November to 5.4 percent from October´s 1.7 percent. The most developed sector is the manufacturing of motor vehicles, influenced by the long-term positive development of the automotive industry.

Manufacture of motor vehicles, trailers and semi-trailers rose by 17.7 percent and manufacture of machinery and equipment rose by 12.9 percent.

The deepest annual decline in industrial production was recorded in manufacture of computer, electronic and optical products, down by 21.8 percent.

In result, the average registered number of employees in industrial enterprises with 50+ employees increased in November by 1.7 percent on an annual basis while the average monthly nominal wage grew by 2.2 percent.

Czech Republic – Construction industry continues its sharp decline

barbora.vackova — Wed, 21 Dec 2011 21:11:15 +0000

The effects of the economic downturn, including reduced government and private sector spending and less bank lending, will keep the construction sector in decline and likely lead to the closing of more firms and the pull-out of foreign companies.

By the end of 2011, the total construction volume is expected to be 20 percent lower than in 2008.

The funding of transport infrastructure as well as for maintenance has declined significantly and was cut by around 660 mil. Euro in 2011. For 2012, the Transport Ministry budget for infrastructure is expected to be around 1.6 bil. Euro, compared with the infrastructure budget approved for 2010 that was above 3.5 bil Euro.

As a result of the decline, the average registered number of employees in enterprises with more than 50 workers fell by 8.5 percent on the year in October. Industry associations and labor unions have said they expect construction to be the hardest hit by staff cuts next year

Poland signs ‘strategic partnership’ with China

barbora.vackova — Wed, 21 Dec 2011 12:08:07 +0000

On December 21st, Poland has joined a group of seven EU countries that have relations with China on the level of a strategic partnership.

The Polish president, Mr. Komorowski sees the strategic partnership as a term used by the Chinese to denote “a higher level of both political contacts and all interstate relations,” and that it will be “very important” in as far as the two countries can now build on the agreement with “concrete content.”

The Polish Deputy Foreign Minister Jerzy Pomianowski in the meanwhile has signed a joint memorandum about the founding of cultural centres in both countries.

Bulgaria’s credit ratings confirmed

barbora.vackova — Wed, 21 Dec 2011 11:57:45 +0000

On December 21, the long- and short-term foreign- and local-currency sovereign credit ratings on the Republic of Bulgaria were affirmed by Standard & Poor’s Ratings Services at ‘BBB/A-3′. The outlook is stable. The transfer and convertibility (T&C) assessment is ‘A’.

Mr. Simeon Dyankov the Finance Minister of Bulgaria believes that the country’s credit ratings might be increased, if the Government steps up its structural reforms, including those of the pension and railway systems.

Bulgarian PM Boyko Borisov, expresses hope all parties represented in Parliament would support the Financial Stability Pact and said the move would be a success for all parties.

Romania Parliament Approves 2012 Budget With 1.9% of GDP Gap

barbora.vackova — Sat, 17 Dec 2011 21:12:22 +0000

The Romanian Parliament approved the government’s 2012 budget, which narrows the fiscal gap to 1.9 percent of GDP in 2012 from a target of 4.4 percent in 2011, in order to meet pledges to the EU and the IMF.
The budget outlines public-spending cuts through wage and pension freezes, through cutting the number of its public jobs to 1.1 million by the end of next year from 1.4 million in 2010 and by restructuring money-losing state companies before a general election late next year.
The budget is based on economic growth of 2.1 percent, less than the previous forecast of 3.5 percent, and inflation at 3.5 percent at the end of next year. The government expects the economy to grow 1.5 percent to 2 percent this year.
According to Mr. Gherghina, the Deputy Finance Minister, Romania plans to borrow about 13 bil. Euro in 2012 and 2.4 bil. Euro to finance its budget deficit and pay for maturing debt.

Hungary – innovation is supported by more funds

barbora.vackova — Sat, 17 Dec 2011 21:10:33 +0000

The state secretary Zoltan Csefalvay has confirmed that the Ministry of Economy will announce tenders worth a combined 43 mil. Euro for R&D and innovation in January.

The funding will be dedicated to the following three areas: start-ups and SMEs, larger businesses and research institutions.

The program will help applicants to prepare EU tenders. Funds available under the EU’s Horizon 2020 for R&D will climb from 53 bil. Euro between 2007-13 to 80 bil. Euro in the next budgetary cycle starting in 2014.

Foreign direct investment in Slovakia highest in three years

barbora.vackova — Thu, 15 Dec 2011 12:11:28 +0000

The volume of foreign direct investment in Slovakia this year is the highest in the past three years.

The state investment agency Sario negotiated 26 investment projects worth 518 million euros ($673 million) this year, compared with 8 projects in 2010 valued at 123 million euros.

These projects will create over 4000 jobs and are expected to boost the export capacity of Slovakia and drive economic growth.

One of the biggest projects is a plan by Honeywell International Inc. (HON) to build a 38 million-euro turbocharger plant creating more than 400 jobs.