Recession in Romania will deepen. The the Convergence Programme sterns worries and debates. Elsewhere in the news, Dacia car company emerges from the crisis. Last but not least, IBM expands its activity in Romania.

The Romanian Government estimates the unemployment level to reach 8% by the end of 2009, which translates into 220.000 more unemployed than the Government first predicted, Cotidianul reads. The Government forecasts an employment rate growth of 0.6% and 1% in 2010 and 2011, respectively. The salaries will see an increase to suit the inflation rate and there will be no additional jobs in the public sector.

The Government expects the recession to deepen this summer, as a consequence of possible drought or floods, according to Gardianul. Romania could also have to deal with the rise in prices for oil or gas on the international market. The Convergence Programme document quoted by Romanian news agency Mediafax shows that Romania’s economy will continue to contract throughout the first part of 2010.

The inner food sector offer could decrease in the case of unfavourable weather conditions, which would lead to an increase in imports as to compensate, according to Gardianul. Additionally, Romanians face employment difficulties and salary cuts according to the Convergence Programme, the publication reads. The forecast for the macroeconomic sector is a 4.1% contraction for inner demand. Romania expects the current account deficit to preserve its 2008 value, deeper external unbalances and a commercial deficit growth. The Government anticipates a 2.4% economic growth in 2011.

The much debated remuneration law will restrict public expenditure. The contribution for the state social insurances are rumoured to record an increase of 2.4%. The conditions for granting premature retirement pension and invalidity pension will toughen, the newspaper informs. According to Gandul, official sources from the Public Finance Ministry denied that the Convergence Programme was related in any way with the document to be discussed next week by the Government.

Dacia car company emerges from the crisis, Evenimentul Zilei reads. Dacia new car registrations have rocketed 60% in April compared with the same period of 2008. Dacia counted 23.654 car registrations in the EU and the European Free Trade Association (EFTA) solely in April, in contrast with 14.750, the number of registrations recorded in April, 2008. The global car market dropped 12.3%, according to the European Automobile Manufacturers’ Association (ACEA). Dacia saw a 6% increase in car registrations in the first four months of the current year, while the other car manufacturers recorded a decrease.

Dacia representatives announced yesterday that the company staff will lengthen the work schedule to six days a week in order to cope with the number of orders. The car production will rise from 1.200 units per day to 1.340 units, starting mid June. Mioveni Dacia plant activity has been interrupted repeatedly during the end of 2008 and January, 2009, due to a drop in demand. The same plant is now hiring 500 new staff to join the existing employees and work in three shifts, Evenimentul Zilei informs.

IBM plans to open a second centre in Romania, Adevarul informs. The company has frequently stated the intention to expand their business in Romania. According to IBM officials, the second centre will develop new technologies for the car industry. This IBM centre will conduct its activity in Brasov, on a platform initially owned by Tractorul UTB SA.