Tag: 2025

  • The Romanian Parliament adopted the 2025 budget

    The Romanian Parliament adopted the 2025 budget

    At the end of marathon debates, which lasted more than eight hours, the plenum of Romania’s Parliament adopted, on Wednesday evening, the state budget and social insurance bills for 2025. The vote came after many tense episodes, which occurred against the backdrop of the rejection by the majority coalition government (PSD-PNL-UDMR) of almost all of the several thousand amendments submitted by the opposition. The budget is based on an economic growth rate of 2.5% and a budget deficit of 7% of the GDP. The finance minister, Tanczos Barna, emphasized that the state budget for 2025 is a moderate one, a budget that is based on a prudent increase in revenues, without exaggerations. As for the state social insurance budget law, it provides primarily for pension payments, the relevant minister emphasized. ‘Regardless of who will be in the government and the finance ministry in three, four, five years, Romania’s commitment to the European Commission should be respected. Step by step, we must reduce the budget deficit, we must at the same time preserve investments. Investments are the engine of the economy, and investments are also preserved in this budget’, said Tanczos Barna.

     

    The budget for 2025 will allow the continuation of the country’s development process, the Prime Minister Marcel Ciolacu also showed, who specified that the funds for the health ministry increased by over 30%, the amounts allocated for highways and railways by 20%, and the budget for education by almost 10%.

     

    Marcel Ciolacu: “We’ll not touch the Romanians’ incomes in payment, or the pensions, which last year were increase by an average of 40%, or the salaries, where there was an annual increase of almost 25%, we do not increase the VAT and we do not need IMF money. We have in this budget the largest allocation of resources from European funding since our accession to the European Union.”

     

    From the opposition, the Save Romania Union (USR) MPs and those of the sovereigntist parties (AUR, S.O.S. Romania and POT) criticized the lack of predictability, the overestimation of revenues, the indebtedness of Romanians through the measures provided and the elimination of some fiscal facilities.

     

    USR deputy Claudiu Năsui explains: “The same lies, the same inflated incomes just to justify higher expenses. Because the income part only interests you to justify these expenses that you make year after year, and that you say you want to reduce. This budget hides the same lie of Marcel Ciolacu, exposed year after year.”

     

    Eventually, the two laws were sent to the president for promulgation in the forms proposed by the Government, with very minor changes. (LS)

  • January 31, 2025 UPDATE 2

    January 31, 2025 UPDATE 2

    Budget – Romania’s draft budget law for 2025 is going through the last stages of debate before the Government approves it in a meeting that is to take place on Saturday. The Finance Minister in the governing coalition (PSD-PNL-UDMR), Tanczos Barna, stated that there is money in the budget for investments in infrastructure, for the payment of salaries and pensions, at the level of November 2024. The budget will be built on a deficit of no more than 7% of the GDP. The funds allocated to the Presidential Administration, the Senate and the Chamber of Deputies will decrease and the budgets of some ministries will increase, such as the environment, health, education or transport ministries.

     

    Chişinău – On Friday the Romanian FM Emil Hurezeanu is going on ​​a working visit to the Republic of Moldova (ex-Soviet state with a majority Romanian-speaking population), Radio Chişinău reports. The agenda of the visit includes discussions with the Moldovan Foreign Minister Mihail Popşoi as well as the reception by the country’s president, Maia Sandu, by the president of the Moldovan Parliament, Igor Grosu, and by the deputy prime minister for European Integration, Cristina Gherasimov. The two foreign ministers are to deliver a joint press statement.

     

    Rugby – The Romanian national rugby team will make their debut on Friday evening in Bucharest, in a match against Germany, in the 2025 edition of the Rugby Europe Championship. The Romanians will also play against Belgium, on February 8, away from home, in Mons, and against Portugal, on February 15, at home, in Botoşani (northeast). Romania can secure direct qualification for the Rugby World Cup in Australia, if it finishes the championship in one of the first two places of the group. With one exception, Romania has participated in all the world final tournaments.

     

    Candidacy – The president of the opposition Save Romania Union (USR), Elena Lasconi, will run again in the presidential election in May. She announced that she has the support of her party and is responsible for the votes cast by citizens two months ago. In turn, the mayor of Bucharest, Nicuşor Dan, said that he maintained his decision to enter the presidential race as an independent and the governing coalition (PSD-PNL-UDMR) would support a common candidate in the race, the former Liberal leader, Crin Antonescu. We remind you that, in December, the Constitutional Court of Romania annulled the presidential election, citing interference by a state actor, and decided that the electoral process should be entirely resumed. The first round had been won by independent sovereigntist Călin Georgescu and the USR leader Elena Lasconi. On the other hand, European Union member states, including France, Germany and Romania, requested the Commission to take measures to protect the elections in the community space from interference by external actors.

     

    Aircraft – An F-16 Fighting Falcon aircraft, purchased by Romania from the Kingdom of Norway, landed, on Thursday, at the 71st General Emanoil Ionescu Air Base at Câmpia Turzii. The aircraft thus completes the 48th Fighter Squadron with all 16 aircraft, the Romanian Defense Ministry informs. The purchase of the new batch of F-16 Fighting Falcon aircraft and the related package of goods and services ensures the increase of Romania’s security by defending the national or NATO airspace, in peacetime and in crisis situations, through the Permanent Combat Service – Air Policing, under NATO command.

     

    Collision – Romania’s President, Klaus Iohannis, sent a message of solidarity to the American people on Thursday following the collision in the air, above Washington, of an American Airlines passenger plane and a Black Hawk helicopter of the US army. “Our thoughts go out to the families of the victims” – the head of state wrote on platform X. The American Airlines plane, with 64 people on board, and the military helicopter with three soldiers on board crashed, on Wednesday evening, in the Potomac River. Extremely difficult search operations were launched. Since February 2009, there have been no fatal passenger plane accidents in the United States. (LS)

     

     

  • January 29, 2025

    January 29, 2025

    Budget – The leaders of the governing coalition in Bucharest are again discussing today the draft budget for 2025. These are the last calculations regarding the distribution of the state money, before the draft budget law reaches the government on Friday for adoption and Parliament next week for the vote. The largest amounts will be allocated for the payment of pensions and for the continuation of investments, while the expenses for goods, salaries and services will be reduced in all ministries and institutions, according to the finance minister. The intention is to allocate budgets to the ministries reduced by 5% compared to last year, except for the Health, Interior, Education, Transport and National Defense ministries. Investments will exceed 7% of the GDP to support economic growth and the country’s development. In the field of agriculture, the priorities remain supporting the development of the animal husbandry sector, the continuation of the INVESTALIM program and the financing of irrigation systems. The Economy Ministry will continue the massive support for entrepreneurs through the Start-up Nation and Construct Plus programs, and the defense industry will receive over 2% of the GDP this year as well. The Transport Ministry will also continue the investments, as in the previous years, which will materialize in highways, express roads and the improvement of the national road network.

     

    Theft – New information appears around the treasure pieces belonging to Romania stolen on the night of Friday to Saturday from a museum in the Netherlands. The Dutch police announced that they had elements that show that several burglary suspects come from a province in the northwest of the Netherlands. The Dutch authorities also specify that extensive technical and tactical research has been carried out in the museum and its surroundings, and a team made up of dozens of investigators and specialists is working on the case to arrest the thieves and recover the assets. The stolen pieces are the gold helmet from Coţofeneşti and three Dacian bracelets from Sarmizegetusa Regia, Romanian heritage objects which are also essential parts of the history and identity of the Romanian people, an invaluable cultural heritage not only for Romania, but for the whole world, states the Romanian Culture Minister, Natalia Intotero. The minister dismissed the director of the National History Museum of Romania, Ernest Oberländer-Târnoveanu, whom she criticized for the way in which he communicated publicly and institutionally in the case of the theft of the treasure objects. We remind you that the History Museum is the one that sent the artefacts to the exhibition in the Netherlands.

     

    Iuliu Hossu – The Romanian Academy inaugurated on Wednesday the ‘Cardinal Iuliu Hossu Year’, through a tribute ceremony. 2025 was established ‘Cardinal Iuliu Hossu Year’ by law, to celebrate his life, work, personality, martyrdom, the determining role in the making of the Great Union and the efforts he made to save the Jews during the Holocaust. A brilliant Transylvanian intellectual, Cardinal Iuliu Hossu left a mark on Romania’s history. He was arrested and imprisoned in communist prisons following his refusal to renounce the Greek-Catholic faith and his activity in defense of the Greek-Catholic believers. President Klaus Iohannis sent a message on the occasion of the Tribute Ceremony Cardinal Iuliu Hossu Year’ in which he recalls the words spoken by the cardinal – ‘Our faith is our life!’ – and said that these words could become a strong call to civic consciousness, to unity and courage, to solidarity with fellow citizens and the future of the country.

     

    Football – Manchester United will arrive in Bucharest this evening for Thursday’s match against the Romanian football champions, FCSB, held in the eighth and last stage of the main phase of the Europa League. The famous English team holds the fourth place in the ranking, with 15 points, and FCSB is ranked 8th with 14 points. The first eight teams qualify directly for the round of 16, and the teams in positions 9 to 24 play a play-off (round-return) for access to the round of 16.

     

    Resignation – The President of Serbia, Aleksandar Vučić (Vucici), said that he would decide in the next ten days whether he would call parliamentary elections or form a new government. The Prime Minister Miloą Vučević (Miloş Vucevici) resigned on Tuesday, after several months of anti-government protests. The rallies were triggered by the collapse of the roof of a newly renovated railway station in Novi Sad, Serbia’s second largest city, which killed 15 people. The protesters blamed the fatal accident on the corruption and negligence of the authorities and asked for the publication of all documents related to the construction and for the punishment of the culprits. The outgoing Prime Minister Vučević, a close ally of the president, was the mayor of Novi Sad when the works began.

     

    Elections – The governing coalition (PSD-PNL-UDMR) in Bucharest adopted, on Tuesday, a decision that set the electoral calendar in the run up to the first round of the presidential election on May 4. The electoral period will start on February 18, and the deadline for submitting candidacies to the Central Electoral Bureau will be March 15. The election campaign will start on April 4 and end in the morning of May 3. Voting in Romania will take place on May 4, and abroad, in the 950 organized sections, for three days – May 2, 3 and 4. The Romanian voters abroad have the possibility to vote by mail, by registering on the portal www.votstrainatate.ro.

     

    Talks – The Romanian Foreign Minister, Emil Hurezeanu, discussed with the executive vice-president of the European Commission, responsible for social rights and skills, quality jobs and training, Roxana Mînzatu, about a series of important files in relation to the current European agenda. They addressed topics such as maintaining support for the EU enlargement process, continuing support for Ukraine and the Republic of Moldova, developing a strategic vision for the Black Sea. They also discussed the promotion of convergence and cohesion objectives in the negotiations on the future Multiannual Financial Framework post-2027 or the consolidation of European action in the field of defense. The Romanian official attended the Foreign Affairs Council in Brussels and met with the NATO Secretary General, Mark Rutte.  (LS)

  • No new taxes in the 2025 Budget

    No new taxes in the 2025 Budget

    Delayed due to the formation of the government, the approval of the budget for 2025 is the number one priority. It’s not just any budget, but one carefully constructed, without the excessive expenses that were included in the previous one and that generated a worrying deficit, which rose to 9% of the GDP. Meeting on the topic of the budget, the Prime Minister Marcel Ciolacu and the finance minister, Tánczos Barna, concluded that Romania could no longer afford an increase in spending on goods and services. On the other hand, the deficit target of 7% this year, assumed in the discussions with the European Commission, cannot be reached without freezing the salary and pension fund and an additional pressure on the National Agency of Fiscal Administration (ANAF) for better VAT collection.

     

    However, in the case of small and medium pensions, the executive will look for solutions to supplement them, Marcel Ciolacu promises. Tánczos Barna pleaded for a rigorous control of expenses, so that Romania should respect its commitments to its European partners and insisted that, in terms of income, only the achievable ones should be included.

     

    Tánczos Barna: “The medium-term structural fiscal budgetary plan assumed by Romania provides for this year 7%, and for the next seven years it stipulates a progressive reduction of the budget deficit up to 3%. And this commitment should be respected not only now, what we build today, what we build for 2025 must also have an impact for the following years, so that on the investment side we should not reduce the amounts allocated for investments, we should constantly increase these amounts, and, on the other hand, we should not exaggerate on the side of unachievable incomes, to avoid a situation in which the difference has to be covered by loans”.

     

    Against the background of the scenarios circulated in the press according to which the authorities will increase some taxes, the PM and the finance minister have given assurances that the Value Added Tax remains unchanged.

     

    Marcel Ciolacu: “We are not increasing the VAT. Why don’t we increase the VAT? I represent the social democratic party. First, the effort would be transferred equally to all Romanians, regardless of income, effort meaning a decrease in the purchasing power. I am not doing this, and I am very glad that the minister says the same thing. At this moment, consumption will decrease and automatically, you will see, we will also have a decrease in inflation”.

     

    The ordinance adopted by the new coalition government (PSD – PNL – UDMR) at the end of the year provides for the reduction of state expenditures, the elimination of some fiscal facilities, in the case of IT, constructions, and the agri-food industry, as well as the reorganization and merger of agencies within the General Secretariat of the Government. A similar approach will also target the executive’s own functioning apparatus, as Romania needs a structural reform, Marcel Ciolacu also said. (LS)