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Tag: 2025 draft budget

  • Parliament to vote 2025 budget

    Parliament to vote 2025 budget

    The government has approved Romania’s draft budget for 2025, built on an economic growth rate of 2.5%, an average inflation rate of 4.4% and a deficit of 7% of GDP. Finance Minister Tánczos Barna argues the budget is moderate and balanced, based on a cautious forecast, which focuses on investments with record allocations of some 30 billion EUR. The budget provides enough money for salaries, pensions and social benefits, the Romanian official gave assurances, although these will all remain at the level of 2024, after the government had already frozen, in early January, all public sector salaries by government decree. In turn, pensions will no longer be increased in line with the evolution of the inflation rate. Similarly, the government has announced the restructuring of central public institutions and state-owned companies, which are expected to cut their expenses, but also provide quality services.

     

    It is essential that the budget balance be maintained over the next seven years, until the deficit is lowered to 3%, in order to be able to manage the structural vulnerabilities of the national economy, Minister Tánczos Barna also said. The Ministry of Transport will receive additional money to continue the infrastructure projects that have already started, in addition to the Ministries of Energy, Labor, Education, Health and European Funds. 2.5% of the GDP has been allotted to the modernization of military equipment. The budget of intelligence services will be higher this year, with the largest increase allotted to the Special Telecommunications Service, for the modernization of IT infrastructure and the organization of the presidential and local partial elections. On the other hand, Parliament, the presidency, as well as the Ministries of Agriculture, Development and Culture will see their budgets slashed.

     

    Regarding public debt, Finance Minister Tánczos Barna explained that it is on a downward slope, but the effects of previous loans will be visible for a long time in interest expenses. Romania should produce more and borrow less, Minister Barna argued. Amid protests staged by key categories of employees disgruntled with the authorities’ plan to cap their revenues, and also considering the European Commission’s request that Romania reduce its deficit, the 2025 budget bill was submitted to Parliament and is expected to be debated this week, in an emergency procedure, at the start of the parliamentary session. The debate and the vote are expected to unfold without a hitch against the backdrop of a mobilization of MPs of ruling coalition parties, which at any rate hold the majority. (VP)

  • January 5, 2025 UPDATE

    January 5, 2025 UPDATE

    BUDGET – The government seeks to set the final details for the draft budget for 2025 by the end of the month, so that the new Parliament may debate and vote on the law in a special sitting. The government relies on a budget deficit of 7% of the GDP, as per a deal with the European Commission, without taking additional fiscal measures. The authorities need to slash public spending and carry out reforms stipulated in the Recovery and Resilience Plan. The government wants to freeze salaries in the public sector as well as child-rearing allowances. Party funding will also be cut by 25% compared to the previous year. A hiring freeze will be introduced in the public sector, while certain institutions will undergo a restructuring process. The tax on dividends is expected to go up from 8% to 10%, while a new tax on special constructions will be introduced. Pensions too will see no increase this year, with the reference point expected to stagnate at 16 EUR. The authorities also seek to cut overspending by 1% of the GDP, tantamount to some 19 bln EUR, but also to boost budget revenues by implementing reforms provided in the Recovery and Resilience Plan.

     

    ELECTION – Interim PNL president, Ilie Bolojan, has warned that the presidential election might be postponed for May unless parliamentary parties adopt the election timetable by next week at the latest. The Liberals want the election to take place before Easter. As regards the official designation of former PNL leader Crin Antonescu as the common candidate of the ruling coalition, Bolojan explained the candidacy may be validated by each party once the election timetable is approved. Ilie Bolojan called for consistency and solidarity in supporting a single candidate. In turn, UDMR leader Kelemen Hunor said the date of the presidential election must be set as soon as possible, also arguing in favor of holding the election before Easter. Instead, USR leader Elena Lasconi accused ruling coalition parties of seeking to preserve power and privileges to the detriment of the country’s stability.

     

    AGREEMENT – Former PNL leader, Crin Antonescu, says the ruling coalition agreement for supporting his candidacy in the 2025 presidential election is de facto suspended. Antonescu told a private TV station on Saturday that he won’t withdraw from the race, but that he noticed the four political leaders who nominated him “did not make a powerful enough commitment when signing the agreement”. We recall that on December 23, ruling coalition parties (PSD, PNL, UDMR and the group of national minorities) agreed to support Crin Antonescu’s candidacy in the 2025 presidential election, with the executive bodies of each party being expected to vote the decision. The first round of the presidential election is scheduled for March 23, while the second round will take place on April 6, with the authorities expected to pass a decree on this matter by January 7.

     

    CHRISTMAS – Eastern rite Orthodox Christians are making preparations to celebrate Christmas on January 7, according to the Julian calendar. Armenians in Romania celebrate Christmas on January 6.  Following the Christmas  Eve vigil, groups of young children and men go caroling from house to house, bringing the new of the birth of Jesus  Christ, Rafaela Cazazian, producer on Radio România Constanţa, explains. Guesthouses in the Danube Delta but also in mountain resorts are fully booked on this occasion.

     

    HANDBALL – The Romanian men’s handball team lost to Georgia 34-35 the last match in the Carpați Trophy tournament. Also today, Serbia won 35-30 against Turkey. Romania on Friday grabbed a 35-26 win over Turkey, and drew 31-31 against Serbia, the team that finished in top position.

     

    TENNIS – Five Romanian tennis players will represent Romania in the qualifiers of the Australian Open, the first Grand Slam tournament of the year set to kick off on January 12. Ana Bogdan (114 WTA) will play Destanee Aiava of Australia (194 WTA) in the first round. Anca Todoni (118 WTA) will take on Victoria Jimenez Kasintseva of Andorra (156 WTA). Gabriela Ruse (121 WTA) will play Leonie Kung of Switzerland (221 WTA), while Miriam Bulgaru (213 WTA) will go up against Giorgia Pedone of Italy (193 WTA). In the men’s competition, Filip Cristian Jianu (214 ATP) will play Mitchell Krueger of the USA (147). Three Romanian players, Sorana Cîrstea, Jaqueline Cristian and Irina Begu, are already seeded in the main draw. (VP)

  • January 5, 2025

    January 5, 2025

    BUDGET – The government seeks to set the final details for the draft budget for 2025 by the end of the month, so that the new Parliament may debate and vote on the law in a special sitting. The government relies on a budget deficit of 7% of the GDP, as per a deal with the European Commission, without taking additional fiscal measures. The authorities need to slash public spending and carry out reforms stipulated in the Recovery and Resilience Plan. The government wants to freeze salaries in the public sector as well as child-rearing allowances. Party funding will also be cut by 25% compared to the previous year. A hiring freeze will be introduced in the public sector, while certain institutions will undergo a restructuring process. The tax on dividends is expected to go up from 8% to 10%, while a new tax on special constructions will be introduced. Pensions too will see no increase this year, with the reference point expected to stagnate at 16 EUR. The authorities also seek to cut overspending by 1% of the GDP, tantamount to some 19 bln EUR, but also to boost budget revenues by implementing reforms provided in the Recovery and Resilience Plan.

     

    ELECTION – Former PNL leader, Crin Antonescu, says the ruling coalition agreement for supporting his candidacy in the 2025 presidential election is de facto suspended. Antonescu told a private TV station on Saturday that he won’t withdraw from the race, but that he noticed the four political leaders who nominated him “did not make a powerful enough commitment when signing the agreement”. We recall that on December 23, ruling coalition parties (PSD, PNL, UDMR and the group of national minorities) agreed to support Crin Antonescu’s candidacy in the 2025 presidential election, with the executive bodies of each party being expected to vote the decision. The first round of the presidential election is scheduled for March 23, while the second round will take place on April 6, with the authorities expected to pass a decree on this matter by January 7.

     

    FLU – Medical experts have again recommended mass-vaccination in school children resuming classes after the winter holidays, given that hospitals are overcrowded with patients diagnosed with the flu virus, with very high waiting times in emergency wards. In the last week, 57 thousand cases of flu, pneumonia or other respiratory infections have been identified. The flu virus runs rampant across Europe as well. Additional temporary inpatient units were set up in France in a number of hospitals to ease pressure on emergency wards. Doctors say we are dealing with a sizable epidemic, while most cases are reported in unvaccinated people. A similar situation is reported in Spain, where overcrowded hospitals are bracing for the epidemic to peak soon.

     

    STUDY – Over the next four years, Romania will take part in a study on the relevant skills needed to become better integrated on the labor market and actively contribute to society. Carried out by the Organization for Economic Cooperation and Development (OECD), the project seeks to assess and compare basic skills in adults aged 16-65 from various countries in order to have a better understanding of the level of literacy and skills required to solve digital problems. The findings of the study will be used to develop education and training policies, to adapt to labor market requirements, reduce gaps in skill development and support social inclusion.

     

    AUSTRIA – Austria’s Chancellor, Karl Nehammer, announced he would resign over the coming days after talks between the People’s Party (ÖVP) and the Social Democrats (SPÖ) collapsed following the surprise withdrawal of the liberal Neos party from coalition negotiations. Karl Nehammer said the Conservatives and Social-Democrats could not agree on key policies, and said he would also step down as party leader. The far-right Freedom Party (FPÖ) won September’s election, but Karl Nehammer and the other parties ruled out the possibility of forming a ruling coalition with this party.

     

    HANDBALL – The Romanian men’s handball team is today playing Georgia in the Carpați Trophy tournament, hosted by Mioveni (south). In the other match scheduled today, Turkey is playing Serbia. On Friday, Romania grabbed a 35-26 win over Turkey, while on Saturday it drew 31-31 against Serbia. Serbia tops the ranking with the same number of points as Romania, although separated by a superior goal-average ratio. (VP)