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The Regions This Week
June 9, 2017 www.intellinews.com I Page 6
Central Europe
President of the European Council Donald Tusk waded into the row over Nord Stream 2, urging the European Commission to exercise strict regu- lation of the Russian project on which he has a “negative view”. Nord Stream 2 would double the 63bn cm/y capacity of the current Nord Stream route, which carries Russian gas directly to Ger- many. The European Commission is currently talking with CEE countries over its bid to negoti- ate collectively for the EU.
Investment into CEE commercial real estate is set to reach a new record in 2017, property con- sultancy CBRE predicted. In the past 12 months, €12.2bn was invested by investors into core CEE markets, reaching a new peak for four rolling quarters. That momentum is expected to continue through the year, the agency says,
with 2017 volumes set to surpass the €11.3bn recorded last year.
Poland’s ruling party Law and Justice (PiS) delayed a parliamentary vote on a controversial bill that would hand MPs control over judicial appointments. PiS took the crucial vote off the parliamentary agenda amidst speculation of disa- greement within the party, as well as between the party and the president.
The first ever shipment of LNG from the US
to CEE arrived in Poland on June 7. The cargo, which was loaded via the Sabine Pass terminal operated by Cheniere Energy, remains, for the moment, a one-off purchase on the spot market.
Polish unemployment fell 1.6pp y/y to 7.5% in May. The rate is lower that at any point since Po- land shed the legacy of over-employment under communist rule and became a market economy in 1990.
Czech unemployment fell a further 0.3pp in monthly terms to 4.1% in May, the fourth monthly drop in a row.
Czech industrial production growth maintained its steady rise in April, with the working day ad- justed figure coming in at 5.9%.
Czech retail sales growth disappointed as it dropped to 2.7% y/y in April, with even adjusted figures showing a slowdown to 4.8% growth from the previous month’s 7.0% gain.
The average Czech monthly wage grew 5.3% y/y to CZK27,889 (€1,059) in the first quarter, accel- erating from the 4.2% gain recorded in the fourth quarter of 2016.
Slovak unemployment fell 1.7pp y/y to 8.7% in the first quarter of 2017.
Support for Slovak coalition leader Smer slipped
to 26.2%, according to a poll by the Focus agency released on June 8. The survey suggests the party’s support has once more slipped below the 28% of votes it won at the March 2016 election, which represented a shock slide that lost Smer its majority. The latest fall in support for Smer fol- lows protests organised by students over corrup- tion claims.
Exports and investment joined consumption to help push Slovakia’s GDP 3.1% y/y higher in the first quarter of the year. Seasonally-adjusted data shows the economy grew 0.8% in quarterly terms.
Slovak retail sales expanded 6.5% y/y in April,
extending a trend of recovery in retail turnover that has run since November.
Hungary’s government is to water down a much- criticised bill regulating foreign-funded NGOs. Under the latest proposals, civil society groups that receive less than HUF7.2m ($26,000) a year from abroad will be exempt from registering, while donors giving less than HUF500,000 can remain anonymous. Groups that fail to comply will face fines or dissolution.