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The Regions This Week
September 29, 2017 www.intellinews.com I Page 5
Central Europe
The Lithuanian government looks like retaining its majority, despite the withdrawal of the junior coalition partner, the Social Democratic party LSDP. Defying the decision of the party’s council, which responded to the rank and file members’ disappointment with the coalition, LSDP MPs decided to remain in the government led by the Lithuanian Farmers and Greens Union (LVZS).
Estonia advanced one spot to 29th position in the Global Competitiveness Index, the World Economic Forum (WEF) said. Meanwhile, Lithuania and Latvia slipped. Estonia maintained its position as the most competitive economy
in Central Eastern Europe, ahead of the Czech Republic and Poland.
The Estonian government approved the 2018 budget bill assuming GDP growth of 3.3% in 2018, 1pp slower than the expected growth this year. The deficit will come in at 0.25% of GDP, representing a reduction on the 0.6% deficit planned for this year.
Standard & Poor's affirmed Latvia’s long- and short-term foreign and local currency sovereign credit ratings at 'A-/A-2', changing the outlook
to positive from stable on the back of strong economic growth, the ratings company said.
Hungary will support Romania’s candidacy for membership of the Organization for Economic Cooperation and Development (OECD). The Hungarian foreign affairs ministry said it will now support Romania’s bid following a promise made by the leader of Romania’s Social Democratic Party (PSD), Liviu Dragnea, to solve the halt
over the building over a Catholic high school in Romania’s Targu Mures, a town inhabited by a large number of ethnic Hungarians.
South African fund NEPI Rockastle said it has acquired two new shopping centres – in Hungary and Bulgaria – for a combined €528mn. The fund, which purchased another shopping centre in
Bulgaria earlier this year, claims to be the biggest mall owner in Romania and the largest real estate company in Central and Eastern Europe.
The Czech central bank board held back from raising interest rates again at its meeting on September 27 but analysts predict it will tighten monetary policy further at its next meeting in November. Three of the seven board members voted for a rise.
The Czech cabinet has unanimously approved a draft budget for 2018 that reduces the central government deficit by CZK10bn to CZK50bn, while at the same time promising higher public sector pay, pensions and university spending before next month’s general election.
R2G Rohan now holds more than 80% of Czech artificial textile maker Pegas Nonwovens, the Czech private investor group reported after the end of its voluntary takeover offer.
Slovakia had a trade surplus of €3.65bn in 2016, according to definitive figures released by the Statistical Office of the Slovak Republic. The surplus was up 10% on 2015’s €3.32bn, but still short of the record surplus of €4.70bn in 2014.
Slovakia’s ruling Smer party retained its dominant position on the Slovak election scene in August, and it and its quarrelsome nationalist partner appear so far unharmed by their coalition squabbling, according to a Median SK opinion poll. Smer-SD was supported by 27.5% of respondents, well ahead of the rightwing opposition Freedom and Solidarity (SaS) party on 15.5%, and Smer’s coalition partner, the Slovak National Party (SNS), on 11.5%.
The Polish economy will grow 3.9% in 2018, with a government deficit of 2.7% of GDP, according
to next year’s budget bill, adopted by the Polish government. In line with a new strategy on public debt, general government debt will fall to 48.9% of GDP in 2021, from 53.8% expected this year.