BURSA 09.11.2017

GHEORGHE PIPEREA (Translated by Cosmin Ghidoveanu)
mărește imaginea
     * The fear that wages will drop is unjustified
       The government's proposal to transfer the social security contributions exclusively to the employee is not at all a social-democratic measure and not even one of redistribution, rather it is one of an ultra-liberal nature, which leaves the employer in the unique position in Europe of not contributing in no way whatsoever to the social security systems (retirement and unemployment) or healthcare. When in the current and the future Fiscal Code (which was passed yesterday through an emergency ordinance, going against any predictability rule), labor is still harshly taxed (out of a full salary, the employee only gets 57.14%, and the state gets 42.86%, meaning almost half), and capital is taxed very "softly" (10% profit tax, 0%-5% dividend tax and 0% for amounts returned to shareholders from capital contributions), the ultra-liberal nature of this Code becomes obvious.
     Business owners, small, big or transnational aren't making money in Romania out of thin air, nor it is their own exclusive merit if they do or the result of their goodwill, but by climbing on the shoulders of society, a community on whose infrastructure and resources they rely to make a profit and which they often export in order to avoid paying taxes, to off-shore countries.
     And nevertheless, a government which claims it is a social-democratic one, exempts all business owners of any contribution of solidarity with the community they make a profit in, and taxes them "competitively" for the capital gains, so competitively, that all the major players in the economy practice tax optimization (which has been tolerated so far by every government), to avoid paying even those minimal capital taxes here, where added value is created, on the back of this community of workers and robots which we call, in what looks a cynical ploy, citizens.
     In the long run, this measure could prove disastrous, including for the major players in the economy (who seem to come out of the "Atlas Shrugged" novel by American Ayn Rand, in which a number of large industrialists shut down their factories only to show society that it needs them more than they need it). Because a system of taxes and social security contributions is used for, among other things, to build and maintain communications pathways and other elements of critical infrastructure, to train future workers, to pay the law enforcement officers which guard properties and insure the safety of citizens, prison guards in which the corrupt and tax evaders get "hosted", plus the other criminally convicted, and to pay soldiers and firemen who would defend the community, plus the contribution to the NATO arming expenses, plus the contribution to the EU budget, all of the above being used first of all by employers to create added value. In the absence of this system of joint financing or in the event of its serious weakening, turning out a profit will no longer be possible.
     On a different note, I want to note the strange, oscillating stance of the mainstream economic analysts, of the consultants from the major multinational audit and consulting firms, of the associations of businesspeople and particularly, of the NBR and of the presidency, who are all right-wingers, and who are sabotaging the draft to amend the Fiscal Code. The current Fiscal Code, the one in effect, is the result of another massive (and insufficiently thought out) change, made by the Ponta government, in 2015. The NBR opposed this Code strongly back then, even resorting to the touchy argument of "severe systemic risk", to draw the people's ire and the criticism of the president. That argument seemed to be used just like the Turks would raise the green banner to boost morale when they would be losing a battle, because at the time, the "war" of the NBR with the government seemed to have been lost. The president already refused once to pass this Fiscal Code. Analysts criticized (and justifiably so, as a matter of fact) that Code, in unison. But now, all of them, without exception, claim that the change proposed by the current government is so seriously wrong, that the "#resist-ers" should take to the street. Implicitly, but undoubtedly, the current Code, the one with the systemic risk, the one which saw its promulgation refused, the mega-criticized one, is good. Just like in the case of the laws on justice, which the current government dallied on for a long time, as did the parliamentary majority, which make the current laws, plus the criminal and criminal procedure code be considered by default good for the independence of the judiciary, even though the Constitutional Court slammed them, and the previous government changed them through an Emergency Government Ordinance. What are all these influencers and decision makers afraid of? Of the increase of the salary costs for employers? You will see below, however, that this concern is without merit.
     Besides, the unions, who in turn have taken their members to the streets, are worried about a drop in the net wage of the employees, a concern which, as may be seen below, is also without merit. In reality, unions should be worried about the things described earlier. Over the long term, the cohesion between employee-employer-union-state in their effort to support the state-owned social security system can be irreparably compromised.
     Using a web-based software (it's www.called (wage calculator), which is available to anybody and easy to use, I have calculated, in several iterations, that no matter how big the net wage would be, the total employer's cost would not increase,(but would instead decrease) and thus, the drop of the net wage does not have basis in arithmetic. Besides, the drop of the net wage wouldn't even have any legal basis, because the salary is an element of a contract, the labor contract, specifically, and a contract may only be changed through the parties' agreement or for reasons stipulated in the legislation. The labor contract includes the gross wage, but what is really negotiated is the net wage (note: perhaps this entire debate will also have an upside, because through it, the employee will have learned to also negotiate the gross wage, because the existence and the amount of the social security contributions depend on it, contributions which, whether we like it or not, we all need at one time or another). Or, it would be illegal for the business owner to change the gross/net wage without the agreement of the employee or without a legal provision that allows them to do that.
     At the risk of boring those readers who are not interested in numbers and economics (just like I wasn't until five years ago ...), I want to present one iteration, based on the aforementioned web software, as well as on net wages which have been rounded up to allow for easier comprehension:
     (i) a net wage of (NW) of 2000 lei a month, in 2017, involves a gross wage of (GW) of 2841 lei and a total cost for the employer (TCE) of 3487 lei; in 2018, those numbers will go to 3409 lei (gross /full salary, GS/C) and 3486 lei TCE; thus, the net wage doesn't decrease, the TCE doesn't increase, in fact it decreases by 1 leu;
     (ii) a NW of 5000 lei in 2017 means a GW of 7128 lei and TCE of 8751 lei; in 2018, the GS/C becomes 8548 lei, and the TCE 8740 lei (NW remains stagnant, the TCE decreases by 14 lei);
     (iii) a NW of 10,000 lei in 2017 means a GW of 14257 lei and a TCE of 17500 lei; in 2018, it means a GS/C of 17093 lei and a TCE of 17478 lei (NW remains stagnant, TCE decreases by 22 lei);
     (iv) a NW of 30,000 lei in 2017 means a GW of 42,771 lei and a TCE of 52502 lei; in 2018, it means a GS/C of 51281 lei and a TCE of 52435 lei (NW remains stagnant, TCE decreases by 67 de lei);
     (v) a NW of 100000 lei a month in 2017 means a gross wage of 142572 lei a month and a TCE of 175007 lei a month; in 2018, it means a GS/C of 170940 lei a month and a TCE of 174786 lei a month (NW remains stagnant, CTA decreases by 231 lei).
     You may be wondering who the hell earns a net wage of 100,000 lei a month in Romania. Well, I think you know. Isărescu, Ghețea, van Groningen are they names that you know or not? These are wages that not only won't go down, but will be "reinforced", because they are protected by the Fiscal Code and the almost religious tolerance of the common folks for such salaries which the most admired managers "deserve" (salaries which I will, from now on, call "IGG salaries").
     Thus, if we were to confine ourselves to these iterations only, (which I haven't made up, they are simply the result of the salary calculator I was telling you about), it clearly follows that there is no way that the net wage would decrease by 20-23%, like some professional associations and unions are whining.
     Furthermore, I would say that the software starts from a mistaken premise, because, once the social security contributions (less the bizarre solidarity tax of 2.25%) become the responsibility of the employee, they are no longer applied to the total employers' cost, but to the gross wage. Thus, when we apply the approximately 35% rate from the new Fiscal Code, we first extract 22.5% from the total cost of the employer, amount which was the responsibility of the employer, then we multiply everything by 35% and we get the additional amount which is added to the net wage. The resulting amount will be smaller than the ones shown in the iterations above.
     It is worth adding that at least to my knowledge, the exemptions which apply to IT programmers and doctors remain in effect, as their salaries are not affected.
     In the end, I have to remind you that I am NOT a voter or sympathizer of the PSD. And I definitely won't be one in the near or farther future. Given the blunders, the inconsistency and unpredictability that would kill any business, big or small, whether creditworthy or insolvent, as well as the unbelievable indecision when it comes to the laws concerning the judicial system and the amendments of the criminal and criminal procedure code, the fear of making the decision to dismiss the heads of the prosecutors' offices for their incompetence and abuses (consisting even of the violation of the Constitution), I would have no way of becoming a voter or sympathizer of the PSD. They don't deserve the trust. 

Readers' comments    [ add a comment ] 
Trimite părerea ta.
Nume (maxim 50 caractere)
E-mail (optional)
Titlu (maxim 50 caractere)
Prin trimiterea opiniei ne confirmați că ați citit regulamentul de mai sus și că vă asumați prevederile sale !
Aceeasi sectiune (English Section)
Actualitate - vezi toate știrile mai jos.
Bănci-Asigurări, 13:07
     * Dolarul a crescut cu 0,78 bani în fața monedei naționale.
     * Francul s-a apreciat la 4,0360 lei
     Banca Națională a României (BNR) a anunțat, astăzi, un curs de referință de 4,6662 lei pentru moneda europeană, în creștere cu 0,44 bani, comparativ cu ședința anterioară, când euro a fost cotat la 4,6618 lei.  click să citești tot articolul
Companii-Afaceri, 14:23
     Directorul executiv al companiei germane de automobile Audi, Rupert Stadler, a fost arestat în legătură cu o investigație privind scandalul Dieselgate, relatează  click să citești tot articolul
Politică, 14:16
     Serviciul Român de Informații a publicat astăzi protocolul de cooperare cu Parchetul de pe lângă Înalta Curte de Casație și Justiție și Înalta Curte de Casație și Justiție.  click să citești tot articolul
Internaţional, 14:12
     Principalii indici ai burselor asiatice au închis ședința de tranzacționare de astăzi în depreciere.  click să citești tot articolul
Miscellanea, 13:31
     Europarlamentarul român Cătălin Ivan merge personal la sediul redacției Charlie Hebdo din Paris pentru a transmite invitația de a participa la dezbaterea despre libertatea de exprimare și demnitate umană, pe care o organizează în septembrie, la Bruxelles, se arată într-un comunicat de presă remis Redacției noastre.  click să citești tot articolul
Calendarul BURSA 2018
Ediții precedente
Newsletter Facebook Twitter YouTube LinkedIn RSS
Jurnal Bursier
     * Creșteri pe linie pentru toți indicii bursei
     Volumul consemant în ședința de tranzacționare de vineri a Bursei de Valori București (BVB) a fost de numai 17,7 milioane de lei (3,8 milioane de...  click să citești tot articolul
     Bursele din Europa au scăzut vineri, oprindu-se din avansul generat joi de anunțul Băncii Centrale Europene (BCE) privind încheierea, anul acesta, a programului de achiziții de obligațiuni. Cele...  click să citești tot articolul
     Bursele din Europa au urmat un curs ascendent ieri, după ce Banca Centrală Europeană (BCE) a anunțat că va menține dobânzile la un nivel scăzut încă un an.  click să citești tot articolul
     * Salt de 12,44% pentru SIF Moldova, ca urmare a aprobării programului de răscumpărare de acțiuni la un preț cu mult peste cel din piață
     Volumul consemnat în ședința de tranzacționare de la...  click să citești tot articolul
     Bursele din Europa s-au înscris pe un curs pozitiv ieri, investitorii așteptând decizia de după reuniunea de politică monetară a Federal Reserve din SUA (Fed), care a avut loc în zilele de 12-13...  click să citești tot articolul
     * Volum de doar 27 milioane de lei, jumătate din valoarea medie a anului
     Piața principală a Bursei de Valori București (BVB) a încheiat cea de-a doua zi de tranzacționare a săptămânii în...  click să citești tot articolul
Cotații Internaționale

Curs Valutar

Curs valabil din data de 18 iunie 2018
1 Dolar australian...
1 Leva bulgărească...
1 Dolar canadian....
1 Franc elvețian...
1 Coroană cehă...
1 Coroană daneză...
1 Liră egipteană...
1 Euro...
1 Liră sterlină...
100 Forinți maghiari...
100 Yeni japonezi...
1 Leu moldovenesc...
1 Coroană norvegiană...
1 Zlot polonez...
1 Rublă rusească...
1 Coroană suedeză...
1 Liră turcească...
1 Dolar S.U.A...
1 Rand sud-african...
1 Real brazilian...
1 Renminbi chinezesc...
1 Rupie indiană...
100 Woni sud-coreeni...
1 Peso mexican...
1 Dolar neo-zeelandez...
1 Dinar sărbesc...
1 Hryvna ucraineană...
1 Dirham emirate arabe...
1 Kuna croată...
1 Bahtul thailandez...
1 Gram aur...
1 DST...
click aici pentru cursurile pieței valutare - istoric
English Section
     The reunion scheduled today between Donald Trump and Kim Jong-un is taking place in Singapore due to the relative neutrality and the security this city-state provides. Singapore is one of the few countries that still hosts a North-Korean embassy, and many of the deals of the Kim regime were conducted here, according to the foreign press.  click here to read the entire article
     "It is a good thing that the public doesn't understand the functioning of our banking and monetary system, because otherwise I think there would be a revolution in the streets by dawn".
     HENRY FORD, founder of the American automotive industry

     Fed up with subsidizing the commercial banks with their own money, the Swiss, mobilized through the "Sovereign Money" initiative, have proposed the organization of a Referendum which will be held on Sunday, June 10th 2018 - is a historical referendum, revolutionary for the banking industry, of international resonance -, by which the initiators want to amend the Constitution, which would impose to the commercial banks to grant loans only within the limits of the bank's money, forbidding them to issue scrip money and ensuring the monopoly of the Confederation (of the Swiss state) on issuance of money free of debt.  click here to read the entire article
     The "pension apocalypse is coming"! The more or less qualified keep talking in the written press, TV and on the radio. The uncertainty is being preserved - deliberately by some, by the government members out of pure stupidity!  click here to read the entire article
     Where there are many entrepreneurs there is creation, where there are many women entrepreneurs there is divine creation, says Gabriela Mihaela Voicilă, state secretary in the Ministry for the Business Environment, Trade and Entrepreneurship (MMACA). In her opinion, entrepreneurship means joy, a better situation, but less time for the family: "Taken together, entrepreneurship means achievements (...) Every one of us needs validation, for having built, having created something".  click here to read the entire article
     * Piperea: "In the Andriciuc case, the EU Court of Justice has not limited its argumentation to the CHF, but expanded it to cover any currency for which the debtors weren't hedged"
     The courts in the country have begun ruling in favor of borrowers and freezing the value of the European currency at the exchange rate valid on the date the loans were originated, in the lawsuits brought against the banks.  click here to read the entire article
     The urge "Mircea, act like you're working!", back in the days of the so-called revolution of December 1989, was brought back recently by a new "director".
     We are talking of course, about the meeting between NBR governor Mugur Isărescu, and a government "delegation" led by chamber of deputies chairman Liviu Dragnea, together with PM Viorica Dăncilă.
     Sources from within the PSD, quoted by, have claimed that, "in the meeting with the NBR governor, Liviu Dragnea seemed to be looking for a way out, and he seems confused, as he didn't expect his decisions to lead to such effects in the economy".  click here to read the entire article
     Liviu Dragnea's insistence in moving the Romanian embassy from Tel Aviv, to Jerusalem, feeds an older, widespread confusion. Much older. Politically, Jerusalem has been divided from the first presence of the Judeans on the lands of the Palestinians, since back in the days of Abraham and Abimelec. "The indivisible Jerusalem" wanted by Benjamin Netanyahu is a spiritual creation.
     Definitely, pilgrims and locals claim that Jerusalem has a geography, meaning that the city would be compatible with the cardinal points and that is why Palestinians, Israelis and people overall, including those of the UN, EU and the US, speak about Eastern Jerusalem and Western Jerusalem, without anybody being surprised that that is happening at the center of the world, where the god of the Judeans began his creation, starting from the very rock from which later Archangel Gabriel raised Mohammed to visit Heaven, the same place of origin where one of the seven angels "and showed me the Holy City, Jerusalem, coming down out of heaven from God." (Apocalypse, 21: 10), where God is one of the same.  click here to read the entire article
     Financial fair play is a concept that comes from the world of soccer. The notion is simple, don't spend more than you earn in a month, or in a year, regardless of what shareholder, mogul or investor enters the business.  click here to read the entire article
     President Klaus Iohannis has announced that he has decided to send to the Constitutional Court the laws on the judicial system, but also to the Venice Commission. The president has issued a call to the CCR not to hurry and to work with the European entity, saying that after the Constitutional Court gets to issue an opinion on the new laws, a new analysis of the laws will be conducted and it will be decided then if a new reexamination of the three laws in the Parliament will be needed.  click here to read the entire article
     The dystopia of 2169 seems to be 151 years away from us, if we were to watch the American sci-fi movie "In Time", in which New Zealand screenwriter, director and producer New Zealand Andrew M. Niccol has imagined a world in which money has been replaced by the lifespan left and each individual over 25 years old (when they stop aging), are wearing a counter on their arm, displaying how much they have left to live; the economic system relies on transactions paid in lifespan - banks, loans, interest rates - the rich are storing billions of years, while the poor only have hours, minutes or seconds left and when their time is up they die suddenly, as if struck by a mace.  click here to read the entire article
     * Bogdan Chirițoiu: "The European Commission will force the future buyer of Sidex Galați to increase the output of steel"
     ArcelorMittal may only sell the Galați metallurgic plant with the explicit agreement of the Romanian state, and the European Commission will ensure that the output of the plant will increase after the transaction, deputy prime-minister Viorel Ștefan said yesterday, in a conference on the issue of major industrial energy consumers.  click here to read the entire article
     * "Iliescu on trial for all the bloodshed!" was one of the powerful slogans of the University Square, as well as "Iliescu - KGB, go back to the USSR!".
     We, who had organized the marathon protest of the century, knew who Ion Iliescu was, as the rest of the Romanian people took a long time to catch on, even Brucan was wrong in his estimate that the much maligned "stupid people" would take two decades to "awake".  click here to read the entire article
     * - The Syrian gas attack did not exist, the American missiles were brought down, then where are the dead coming from?!
     * - It is enough to tell Syrians that they are attacked and killing each other?
     Friday, Syria was attacked by war attacks, in which a warship of the United Nations which operate in the Red Sea (according to the American officials), American B-1 bombers, four British Royal Tornado GR4 aircraft (which fired Storm Shadow missiles) and French Rafale jets.  click here to read the entire article
     New Delhi, March 4th, 2017 - I am in the garden of the Royal Plaza hotel, sitting next to the table of a group of Indians, probably Hindus, two women in colorful saris and two men, all of them in their fifties. They are checking me out, I catch them doing it a few times. A Romanian manea, with heavy Indian influences starts playing from the speakers, I am surprised, I start laughing.  click here to read the entire article
     The Romanian Commercial Bank (BCR) has proposed to shareholders the distribution of dividends of 228.12 million lei, out of the profit of 570 million lei, for last year, this being the first year with such an item on the agenda of the General Shareholder Meeting, after the huge loss of 2014, of 2.6 billion lei, caused by the high provisions and the sale of non-performing loans.  click here to read the entire article