Tag: automotive

  • September 3, 2024

    September 3, 2024

     

    PARLIAMENT The Parliament of Romania has convened for the last session in its current term, given that general elections are due to take place on December 1, the National Day of Romania. One of the priorities is a bill raising the pension tax threshold to EUR 600. The bill is being reviewed and voted on today in the Chamber of Deputies, and is to take effect on October 1. Meanwhile, the Senate voted on a bill under which Romania will donate a PATRIOT missile system to neighbouring Ukraine. The bill was also endorsed by the lower Chamber under an emergency procedure.

     

    GRANTS The Romanian foreign ministry (MAE) announced the results of the selection of non-EU students to receive grants from the Romanian government this academic year. A record-high number of applications have been received (81,914, from 160 countries on 5 continents), which according to a news release reflects the growing interest of students in the educational opportunities provided by Romanian universities. The applications have been submitted online, at www.studyinromania.gov.ro, between January 16 and March 16, 2024. Selection criteria included academic excellence, geographic diversity and gender equality, as well as Romania’s foreign policy interests in relation to the applicants’ home countries. The 500 grant beneficiaries will go to prestigious university centres in the country (Braşov, Bucharest, Cluj-Napoca, Constanţa, Craiova, Iaşi, Sibiu, Timişoara and others) and will study a variety of fields, such as international relations, engineering, law, computer sciences, performing arts, economy, business or education sciences.

     

    CYBERATTACK Personal data stolen in a cyber-attack targeting the Timişoara City Hall, local police and tax agency have been put up for sale by hackers on a Telegram channel. The discovery was made by the founder of a consulting platform for corporate victims of cyber-attacks. The Mayor of Timişoara, Dominic Fritz, has neither confirmed or denied the personal data theft, and said he was waiting for the relevant authorities to investigate the matter. After the attack that took place 10 days ago, the City Hall announced that the institution took counter-measures and managed to prevent the entire system from being compromised. The institution also said at that point that there were no indications that personal data had been extracted. Online tax payments were subsequently discontinued.

     

    FACILITIES The Romanian government would collect nearly EUR 2 bln if at least 15% of the taxpayers with debts to the authorities accessed a facility that extinguishes penalties, under a draft emergency order posted by the finance ministry. The bill exempts debtors from the payment of interest and penalties provided that they pay their back taxes by November 25. For individuals with debts up to EUR 1,000, half of the overdue amount may be written off, if the remaining 50% is paid. According to the ministry, the total debts to the state budget at the end of June reached around 10% of the country’s GDP. Debts to local authorities amounted to nearly RON 22 bln, debts to the social security funds to RON 4 bln, and debts to the public health insurance funds were close to RON 8 bln.

     

    AUTOMOTIVE The number of new cars registered in Romania in the first 8 months of the year was 106,534, up 6.35% compared to the corresponding period of 2023, according to the Vehicle Registration and Driving License Directorate quoted by the Romanian Carmakers Association (ACAROM). Broken down by car make, the largest number of new registrations was reported by Dacia (more than 32,000), followed by Toyota (9,206), Hyundai (6,961), Skoda (6,938), Renault (6,873), Volkswagen (6,352), Ford (4,503), Mercedes (3,689), BMW (3,420) and Suzuki (3,301).

     

    TRANSPORT Air freight transport increased in Romania in the first half of 2024 by 7.4%, compared to the corresponding period of last year, more specifically from 24,400 tonnes to 26,200 tonnes, according to data made public by the National Statistics Institute. For both domestic and international shipments, the largest cargo quantities were registered on Bucharest’s Henri Coandă Airport, followed by Avram Iancu Airport in Cluj-Napoca (north-west), and Traian Vuia Airport in Timişoara (west).

     

    TENNIS The Romanian tennis players Irina Begu and Anca Todoni have qualified in the 8th-finals of the WTA 125 tournament in Montreux (Switzerland). Irina Begu (34 yo, no. 130 WTA) only needed 68 minutes to beat the 19-year old Swiss player Celine Naef (177 WTA), 6-0, 6-3. Anca Todoni (aged 19, no. 136 WTA) won 6-2, 6-4 against Maja Chwalińska of Poland (172 WTA), in a 1.5-hour match. The two Romanian players won USD 2,000 each and 15 WTA points. In the 8th-finals, Begu takes on Laura Pigossi of Brazil (141 WTA), and Todoni plays the winner of the match pitting seed no. 1 Maria Lourdes Carle (Argentina) against Victoria Jimenez Kasintseva (Andorra). Miriam Bulgaru is also to play against Italy’s Camilla Rosatello in the main draw of the tournament. (AMP)

  • April 23, 2024

    April 23, 2024

     

    ELECTIONS – The ruling coalition made up of the Social Democratic Party and the National Liberal Party has decided to back separate candidates for mayor general of Bucharest, namely the Senator Gabriela Firea, a former mayor of Bucharest between 2016 and 2020,  supported by the Social Democrats, and the incumbent energy minister, Sebastian Burduja, for the Liberals. President Klaus Iohannis said the decision to have two separate candidates running for the same post in the local elections in Bucharest was not a success for the coalition. The politicians involved say the decision was made in order to fully mobilise the voters of the two parties. The announcement came at the end of a coalition meeting held following media allegations that the joint candidate Cătălin Cîrstoiu was in an incompatibility situation. The physician is accused of taking advantage of his post as manager of Bucharest’s Emergency Teaching Hospital to treat patients in a private clinic. The coalition leaders also decided to keep joint candidates for the Bucharest district mayors and for the local councils. The Social Democrats and the Liberals also have joint candidate lists for the European Parliament elections, due on June 9th, concurrently with the local ballots.

     

    VISIT The president of Romania Klaus Iohannis, while on an official visit to South Korea, had a meeting this morning in Seoul with his counterpart, Yoon Suk Yeol. After the official welcome ceremony, the two presidents and the Romanian and South Korean delegations had bilateral talks. According to Radio Romania’s special correspondent, the political consultations between the two heads of state focused on the consolidation of bilateral relations, on political, diplomatic, and defence cooperation, and on the main challenges at regional and global level. On the same occasion, a joint declaration was adopted on the consolidation of the strategic partnership between Romania and South Korea, a document setting the key cooperation directions for the coming 10 years. In the presence of the two presidents, other documents were also signed, concerning cooperation in fields like defence, nuclear energy, investments, foreign trade and culture. The Romanian president’s agenda also includes meetings with the Romanian community in Seoul and a visit to a Romanian traditional art exhibition.

     

    AUTOMOTIVE The vehicles produced in Romania are in demand in over 60 markets in the world, so that 2024 may end with a new profit record, says Adrian Sandu, the secretary general of the Board of the Romanian Carmakers Association. According to him, in 2023 the domestic automotive industry saw a record output of 513,000 units produced. On the other hand, Adrian Sandu says that, apart from the inadequate transport infrastructure, Romania’s economy loses huge amounts of money because of bottlenecks in the customs process, due to Romanian land borders not being accepted yet in the Schengen area.

     

    FILM Two Romanian films are included in the official selection for the famous Cannes Film Festival in France: the feature film “Three kilometers to the end of the world,” directed by Emanuel Pârvu, describing the complicated relations between a teenager and his parents, and the documentary “Nasty”, about the life and career of the first Romanian tennis player to make it to the top place in the world ranking, Ilie Năstase, a film directed by Tudor Giurgiu, Cristian Pascariu and Tudor D. Popescu. The Cannes Festival also invited an Iranian filmmaker who criticizes the regime in Tehran, Mohammad Rasoulof. The 77th edition of the Cannes Festival takes place between May the 14th and 25th.

     

    TENNIS The Romanian tennis player Jaqueline Cristian defeated McCartney Kessler (USA) 7-6, 6-4 in the first round of the qualifiers for the WTA 1.000 tournament in Madrid, which has nearly EUR 7 million in total prize money. Cristian plays next against Daria Saville (Australia). Three Romanians are playing in the main draw of the Madrid competition: Sorana Cîrstea, qualified into the second round, Ana Bogdan, who will be taking on Xiyu Wang (China) in the first round, and Irina Begu, who plays her first match against Linda Fruhvirtova (Czech Republic). Simona Halep, former no. 1 in the world, announced she would not take part in the tournament in Madrid, for which she had received a wildcard. “Unfortunately, my body needs more time to be prepared,ˮ Halep posted on social media. (AMP)

  • February 20, 2024

    February 20, 2024

    VISIT The Romanian Senate Speaker, Nicolae Ciucă, who is on an official visit to Madrid, has talks scheduled today with the head of the People’s Party in Spain, Alberto Nunez Feijoo, and the secretary general for defence policy, Juan Francisco Martinez Nunez. Mr. Ciucǎ will also have a meeting with the Romanian Orthodox Bishop of Spain and Portugal, Timotei. On Monday, after the meeting with his counterpart, Pedro Rollan Ojeda, Nicolae Ciuca announced that the Romanians living in Spain may hold dual citizenship as of this year.

     

    ELECTIONS The leaders of the Social Democratic Party and National Liberal Party in Romania’s ruling coalition are meeting again on Wednesday to decide on whether to merge this year’s elections, after the talks so far have failed. The Liberals want the local elections to take place this summer concurrently with the elections for the European Parliament, while the Social Democrats want the parliamentary elections due this autumn to be held jointly with the second round of the presidential election. Save Romania Union, in opposition, threatened to take any legislation merging the elections to the Constitutional Court. This year all 4 types of elections are scheduled in Romania (local, parliamentary, and presidential ballots, and elections for the EP).

     

    HEALTH Some 3.3 million sick leaves were given in Romania last year, which is significantly below the over 4 million reported in 2022. Most sick leaves were taken by cancer patients and pregnant women. The head of the National Health Insurance Agency, Valeria Herdea, says this is not about the number of sick leave days taken by people, but about the fact that many citizens have health problems. Recently, the government has issued an order introducing a 10% tax on sick leave allowances. The authorities argued this was to discourage the practice of taking sick leaves for minor health problems. But the order triggered discontent especially among cancer patients. The Senate withdrew the provision, and the order is to be discussed next in the Chamber of Deputies.

     

    AUTOMOTIVE The Romanian automotive market will likely see a moderate 5% growth this year, the Romanian Automobile Producers and Importers Association (APIA) announced. The Association expects EV sales to continue to increase, and sales of diesel vehicles to drop in 2024.

     

    MISSION The European Union has launched its own naval mission to protect commercial vessels in the Red Sea. Romania may also take part in the mission. Greece will provide a commander for its operational headquarters, while Italy will provide the force commander. According to the Italian foreign minister Antonio Tajani, since November Houthi rebels have been attacking commercial vessels on this route, allegedly in solidarity with the Palestinian people in Gaza.

     

    TABLE TENNIS Romania’s men’s team have qualified in the round of 32 of the world table tennis championships in Busan, South Korea, after defeating Iran, 3-1 on Tuesday. On Monday, Romania’s women’s team went straight into the eighth-finals. Taking part in the men’s and women’s competition in South Korea are 40 teams. The top 8 teams at the World Championships are qualified in this year’s Olympic Games in Paris. (AMP)

  • Provisions for the Automotive Industry

    Provisions for the Automotive Industry

    Romania’s car market is growing by the year, integrating the latest technologies in the field. According to a survey made by the Car Makers and Importers Association (APIA), this market will continue developing in 2024 as well with an estimated growth of 5.3% a moderated pace as compared to that last year. The data released reflects an adjustment to the new economic, social and political dynamics. According to the estimates made public on Monday, the green cars are to amount for 29% of Romania’s total car market by the end of this year with the registered-cars market also on the rise.

     

    However, even with 150 thousand units sold, the Romanian market still is under the level of the years 2018 and 2019, proof of the long-term impact of the Covid pandemic.

    In spite of the challenges though, the eco-friendly cars will remain in the focus of attention and the sales of the fully electric vehicles is also expected to continue their upward trend, even though at a slower pace. Here is APIA chairman, Dan Vardie

     

    Dan Vardie:The APIA 2024 forecast starts from the premise that we are going to see a more conservative growth as compared to last year. Vehicles are going to benefit this growth the most, but the commercial electrified vehicles like lorries and buses are going to see a spectacular development. The market of the fully electric cars will continue to be on the rise at a slower pace though, of only 27.7%, but they will register a significant growth in 2024 as well. However, the market share of the plug-in hybrids will not be that significant but their sales will also be on the rise standing at 9%. The full hybrids will also have a good development. The sales of diesel vehicles are expected to go down in 2024.

    Dan Vardie says that 15 thousand electric cars were sold in Romania last year as compared to Germany with 500 thousand sold. Data shows that the number of green cars to be registered in Romania this year will triple as compared to the diesel ones.

    Producers and importers are foreseeing an increase in the number of electrified cars registered at almost the same level of last year, namely +24.5%.

     

    According to APIA survey, the category of light commercial vehicles is expected to hit a 7.2% growth as compared to last year with a market share of all registered vehicles of roughly 10.8%, at almost the same level last year. The market share of 4×4 vehicles is expected to reach 25.9%, a 14.4% rise in the number of registered vehicles as against last year.

    (bill)

  • January 17, 2024 UPDATE

    January 17, 2024 UPDATE

    PROTESTS Family
    doctors in many cities in Romania Wednesday protested against the amounts
    proposed by the authorities for the reimbursement of services. They say that
    the cuts in the budgets of family medicine practices will have negative
    effects, both for patients, and for the healthcare system as a whole. A bill
    posted for public review on the website of the National Health Insurance
    Agency, provides, among other things, that the funding granted to family
    doctors will be over 30% smaller in 2024, and the bonuses granted to practices
    in rural areas will be discarded. Meanwhile, the Sanitas trade union demands a
    20% raise of all salaries in public healthcare and the scrapping of all salary inconsistencies
    between various categories in the healthcare sector. On Thursday union leaders
    are to present their requests to the Finance Ministry, and threaten to go on strike
    unless their demands are met. The staff of some of the 9 government agencies
    for small and medium-sized enterprises in the country also went on a
    spontaneous 2-hour strike, demanding pay raises up to the average salary in the
    Economy Ministry. The protests of farmers and transporters also continue across
    the country, although employers in the field claim that they reached an
    agreement with minister Sorin Grindeanu and a protocol with clear deadlines was
    signed, benefiting passenger and freight carriers. The agriculture minister
    Florin Barbu has also held talks with trade associations, and says that at this
    moment all claims presented by farmers are solved.




    PRICES On
    Wednesday the Romanian agriculture minister Florin Barbu had a meeting with
    retailer representatives, with the talks mainly focusing on extending the
    cap on the basic food markup for another three months. Major retail chains
    suggested a mechanism targeting specific products for which significant price
    variations are still reported, instead of extending the overall markup cap.
    Minister Florin Barbu said the topic will also be discussed with PM Marcel
    Ciolacu, as retailers had requested. An emergency order introducing a temporary
    measure to curb excessive price increases for some agricultural and food
    products came into force on August 1st, 2023, and targeted 14 groups of food
    products, including bread, cow milk, cottage cheese, eggs, sunflower oil, fresh
    chicken and pork.




    AUTOMOTIVE Over the past 12 years Romania has
    doubled the number of cars and lorries, to become the EU member country with
    the highest increase of the vehicle per capita ratio, according to a report
    made public by the EU statistics office, Eurostat. Romania is still among the
    countries with the smallest number of automobiles per capita in the EU. The
    highest ratio is reported by Italy (684 cars per capita), followed by Luxembourg,
    Finland and Cyprus, with Latvia, Romania and Hungary at the opposite pole (417 cars
    per capita in Romania).




    JUDICIARY People
    who leave the country in order to avoid criminal prosecution, trial or
    execution of punishment may have to pay the expenses incurred by the State for their
    repatriation. The minister of justice, Alina Gorghiu, has announced that a
    draft law in this respect has been posted on the website of the ministry for
    public review. She says repatriating a fugitive criminal can cost the state up
    to EUR 25,000. Last year alone, Romania spent around EUR 2 mln of taxpayer
    money for the repatriation of some 600 fugitives.




    SCHENGEN The Schengen
    accession of Romania and Bulgaria, although partial, is a good sign, said the
    Belgian PM, Alexander De Croo, whose country has taken over the rotating
    presidency of the Council of the European Union. He applauded the efforts made
    by both countries to address Schengen concerns and stressed that, if things
    continued to go according to plan, the next steps would be taken. On March 31,
    Romania and Bulgaria will lift controls at air and maritime borders with EU
    member states.




    CITIZENSHIP The
    number of applications for Moldovan citizenship has increased significantly as
    of late, which is why Chisinau is asking for the review period to be extended
    to up to 6 months. According to official data, 70% of the applicants are
    Russian citizens, and 20% are Ukrainian. The increase in the number of
    citizenship applications made by Russians indicates attempts to avoid enlisting
    in the army – says the analyst Anatol Ţaranu, a former ambassador of the
    Republic of Moldova to the Russian Federation, quoted by Radio Chisinau.
    According to experts, Russia could begin a full mobilisation after the
    presidential elections due in March 2024. Kyiv claims that Moscow loses about
    1,000 soldiers every day on the front in invaded Ukraine. (AMP)

  • Romania’s automotive market, in the limelight

    Romania’s automotive market, in the limelight


    Romanias automotive market saw the biggest growth in Europe this February, compared to last year. The number of vehicle registrations nation-wide went up 44.5%, to over 12,000 units, whereas in the entire EU over 800,000 vehicles were registered in February this year, according to data made public on Tuesday by the European Automobile Manufacturers Association, which represents Europes top 16 carmakers.



    A significant increase of registrations was reported for the French group Renault, particularly thanks to the Romanian brand Dacia, whose European market share has reached 5%, as against 3.6% last February. Taken over by Renault in 1999 and relaunched in 2004 with the Logan make, Dacia has grown steadily into a player with a reputation in the European market.



    In Romania, a notable boost for sales comes from the Government, which has been earmarking funds for years under a scrapping programme called “Rabla”, which is highly popular among vehicle owners. This year, the Environment Ministry will channel some EUR 300 mln into the various components of the programme, in a move to get at least 100,000 vehicles older than 15 years off the roads.



    The relevant minister, Tánczos Barna, announced on Friday that the “Rabla Clasic” and “Rabla Plus” programmes would be re-launched, with increased budgets. Apart from an increase of the voucher granted upon scrapping a car to some EUR 1,400 and of that for 2 cars scrapped to nearly EUR 2,000, buyers may also receive several bonuses, up to a total of over EUR 3,000.



    Under the “Rabla Plus” programme, which concerns the purchase of electric or Plug-in Hybrid cars, the bonuses offered by the government go even higher, up to as much as EUR 10,000.



    Apart from these two components, in a months time a third one will be launched, called “Rabla Local” and implemented jointly with local authorities.



    Minister Tánczos Barna: “On April 21 we launch the Rabla Local programme. Before that, local authorities will be enrolling in the programme. So I urge all administrative units, all the town halls interested in joining the programme to step up the approval process in their local councils, as soon as the guidelines have been published in the Official Journal, so that they may enrol in due time and that we may start the programme on April 21.”



    The budget for “Rabla Local” is close to EUR 50 mln, adding to which will be 20% provided by the local authorities involved. (AMP)


  • November 22, 2022

    November 22, 2022

    PENSIONS The
    ruling coalition in Romania has decided to increase public pensions by 12.5%,
    as of January 1. The increase applies for all pensions, regardless of level,
    but low-income pensioners will also receive additional aid from the government,
    provided in 2 instalments. Child allowances and the allowances for war veterans
    and widows will be adjusted to inflation, while people with disabilities will
    receive a 13th allowance, the ruling coalition also decided.


    VISIT The president of Romania Klaus Iohannis will make an official visit to Latvia
    on Wednesday and to Lithuania on Thursday. On Friday, he will take part in a
    summit with his counterparts from Lithuania, Latvia and Poland, and in an
    international symposium. According to the Presidency, in Latvia Klaus Iohannis will
    have talks with his counterpart Egils Levits, with PM Krisjanis Karins, and the
    parliament speaker Edvards Smiltens. In Lithuania, the official agenda includes
    consultations with president Gitanas Nauseda and the parliament speaker,
    Viktorija Cmilyte-Nielsen.


    NATO Romania will host for the first time, on November 29th
    and 30th, a meeting of the NATO foreign ministers. The meeting will
    have 4 sessions, focusing on the implementation of the Madrid Summit decisions,
    on the war in Ukraine, on energy security and partners. Ukraine, the Republic
    of Moldova, Georgia and Bosnia-Herzegovina, as well as Finland and Sweden, were
    invited to attend. It is for the first time that the Republic of Moldova takes
    part in a NATO ministerial meeting. In fact, in this summer’s summit in Madrid,
    NATO leaders announced measures to support Moldova, Georgia and Bosnia-Herzegovina
    in the current security context in Europe. The foreign ministers of the 3
    countries are expected to discuss in Bucharest means to strengthen their
    defence and resilience capabilities. The foreign minister of Ukraine, Dmytro
    Kuleba, is also scheduled to attend the meeting in Bucharest.


    AID Romania, France and Germany have agreed
    on a new aid instalment to help the Republic of Moldova cope with the energy
    crisis this winter. Officials of the 3 countries convened in Paris for the 3rd
    ministerial conference of the Moldova Support Platform, initiated by Bucharest,
    Berlin and Paris this spring. Moldova is to receive another EUR 100 mln in
    international support to handle the consequences of the war in
    Ukraine, including the energy crisis and the refugee inflow, and also to carry
    on the reforms initiated in order to join the EU, the president of France,
    Emmanuel Macron announced. The Romanian foreign minister said Romania intends
    to pay a first instalment of EUR 25 mln by the end of this year, intended for
    the implementation of projects in education, regional development, and public
    utility services.


    AUTOMOTIVE Romania is the EU’s six-largest car manufacturer, with an
    average of over 40,000 vehicles per month. According to the latest report by
    the European Automobile Manufacturers’ Association (ACEA), nearly 50 million
    cars were produced worldwide in the first 9 months of this year. China comes
    first, with 16.3 million, followed by the US with 5.3 million. As many as 7.96 million
    cars were produced in the EU during the same period, up 5.8% compared to 2021.
    Germany tops the European ranking, with 2.4 million vehicles produced, which is
    considerably less than the 3.4 million cars made in 2019. In Romania, the only
    country where this year’s output was higher than in 2019, 376,000 cars were
    made, of which some 60% were Dacia and 40% Ford. Recently, the Romanian
    Carmakers Association announced that the national output went up 27.7% in the
    first 10 months of the year, compared to 2021.


    EARTHQUAKE Rescue teams in Indonesia
    continue to search for survivors of Monday’s earthquake, in which hundreds of
    people died or were injured. Many victims were school children. The 5.6 Richter
    quake occurred at a depth of 10 km, and destroyed many buildings. According to Reuters,
    Indonesia is on the so-called Pacific ring of fire, an area with many active
    volcanoes that frequently produce tremors. In 2004, a magnitude 9.1 off the
    Indonesian island of Sumatra caused a tsunami that killed 226,000 people in 14 countries,
    with almost half of the victims reported in Indonesia.


    FOOTBALL Today at
    the FIFA World Cup in Qatar, the defending champions, France, will play against
    Australia, while two-times world champions Argentina take on Saudi Arabia. The
    other matches scheduled for today are Denmark vs. Tunisia and Mexico vs.
    Poland. On Monday England defeated Iran, 6-2, and in the same group the US and
    Wales drew 1-1. Also on Monday, the Netherlands, who have played 3 world cup
    finals without winning, defeated Senegal 2-0. (AMP)

  • July 5, 2022 UPDATE

    July 5, 2022 UPDATE

    PRESIDENCY Romania is a very involved actor in the European policy
    and security policy, president Klaus Iohannis told a press conference on
    Tuesday. He emphasised that the recent decisions at the European Council and
    the NATO summit made Romania safer and more visible. Romanians are better
    protected, Romania is better protected, the head of state pointed out.


    TAXES Amendments to Romania’s Fiscal Code are subject to the
    decision transparency procedure until Friday, and scheduled for endorsement by
    the government next week. The changes agreed by the ruling coalition made up of
    the Social Democrats, the Liberals and the Democratic Union of Ethnic Hungarians
    in Romania in order to improve collection to the state budget include increases
    of the tobacco and alcohol excises, of the VAT for the hospitality industry and
    of property owner’s taxes. Gambling revenues up to roughly EUR 600 will be
    taxed by 10%, those between EUR 600 and 2,000 by 20% and those over EUR 2,000
    by 40%. Government sources say another measure introduces a 5% VAT rate for
    purchased houses of up to 120 square meters. Other amendments may increase
    house owner’s taxes by 60%. Taxes in the hospitality industry may also change
    so they may not be under 1% of the turnover starting next year.


    NATO
    Romania’s foreign minister Bogdan Aurescu hailed Tuesday’s
    signing of Finland’s and Sweden’s NATO accession protocols in Brussels by the
    standing representatives of the 2 countries and of the Allied states, including
    Romania. According to the Romanian foreign ministry, in
    the current security context marked by Russia’s illegal war of aggression
    against Ukraine, the 2 countries’ move proves their commitment to the
    democratic values and spirit that NATO safeguards and promotes. Romania, the
    ministry also says in a news release, has been one of the main supporters of
    the Open Door policy as central to NATO’s strategic approach in relation to its
    partner states. The decision to join the organization, Bucharest adds, is an
    option any state is free to take, based on meeting the criteria defined for the
    process and on the consensus of the Allies. No third party may affect NATO’s
    enlargement policy. Bucharest is also confident that Finland’s and Sweden’s
    accession will contribute to strengthening NATO security. After the
    representatives of the 2 countries signed the accession protocol, each NATO
    country’s parliament must ratify the decision, which may take up to one year.
    Turkey is the only NATO member to make ratification conditional on commitments
    regarding terrorism on the part of the 2 Nordic countries.


    CABINET Seven months into their term in office, all the ministers
    in the Liberal Nicolae Ciucă’s Cabinet have been reconfirmed in office. The PM
    talked to president Klaus Iohannis about the assessment of his cabinet members
    and according to political sources they agreed reshuffling is not necessary. Ciucă
    informed his ministers however that last-minute submissions of key projects
    under the National Recovery and Resilience Plan funded by the EU would not be
    acceptable. Following a 10-criteria assessment that took into account the
    expectations of Romanian citizens and society, PM Ciucă also presented a report
    on the work of his government, which included overcoming the health crisis,
    stabilisation of the energy crisis and the management of the effects of the war
    in neighbouring Ukraine. The report also mentions the largest investment budget
    of the last 32 years, the new Offshore Act and strengthening security within NATO
    and the EU.


    AUTOMOTIVE The city of Craiova, in southern Romania, Tuesday hosted
    a ceremony occasioned by the acquisition of the local Ford plant by Ford Otosan,
    the largest producer of commercial vehicles in Europe. The US-Turkish company
    announced investments of nearly EUR 500 million in the next 3 years, to
    increase production. The plant will make the new generation of a freight and
    passenger transport model, with a fully electric version as of 2024. Ford Puma,
    the best-selling Ford automobile in Europe, will also have an electric version
    as of 2024, to be produced in Craiova as well. Attending the event, PM Nicolae
    Ciuca highlighted the commitment of the company’s American and Turkish
    officials to strengthen and improve economic relations and strategic
    partnership with Romania. He also added that Romania’s National Recovery and
    Resilience Plan includes a commitment to have 18,000 EV charging stations ready
    in Romania by the end of 2026.


    SPORTS 494
    swimmers from 42 countries are competing in the European Junior Swimming
    Championships underway in Bucharest until July 10. The host country, Romania,
    is represented by 26 athletes, 14 boys and 12 girls, including the world
    champion in the 100m and 200m freestyle race, David Popovici. The 17 year old
    champion has already qualified for the semifinals of the 200m freestyle race. In
    turn, Cristian Lapadat qualified for the 200m butterfly semi-final. Aissia
    Claudia Prisecariu and Rebecca-Aimee Diaconescu have qualified for the women’s
    50m backstroke semi-finals, while Ana Maria Sibiseanu takes part in the
    semifinals of the women’s 200m freestyle race. Romania’s men and women teams will
    also compete in the 4×100 freestyle final.




    TENNIS US
    tennis player Amanda Anisimova will be playing Romanian Simona Halep in the
    quarter finals of the Grand Slam tennis tournament in Wimbledon. In the round
    of 16, Halep secured a 6-1, 6-2 win against Paola Badosa of Spain, while
    Anisimova defeated Harmony Tan of France 6-2, 6-3. A former world leader, Halep
    won the 2019 of Wimbledon and a year earlier the one in Roland Garros. (AMP)

  • October 22, 2021 UPDATE

    October 22, 2021 UPDATE

    COVID-19 The interim cabinet Friday introduced new restrictions in Romania, as
    the country is struggling with an unprecedented epidemiological crisis. The
    measures will take effect on Monday, 25th October, and will be valid
    for 30 days. Face covering will be compulsory in all indoor and outdoor public
    areas. Access to all central and local public institutions and to the offices
    of private businesses will be conditional on the digital COVID certificate. A
    ban on outdoor concerts and shows, as well as on private events, including
    weddings, conferences and workshops, will also be in place. Shops will only be
    open between 5 am and 9 pm, restaurants will be open until 9 pm but will only
    admit COVID certificate holders. A night curfew will also be introduced,
    between 10 pm and 5 am, for the unvaccinated. Also on Monday, public
    and private kindergartens, primary, secondary schools and high schools will
    take a 2-week break. On Friday the Strategic Communication Group reported 15,410
    new SARS-CoV-2 cases and 357 COVID-related deaths. 1,848 patients are in intensive care.
    Over 128,000 people got vaccinated in the last 24 hours.


    AID Romania is receiving aid from several European countries, including
    Italy, Switzerland, Austria, Germany, Hungary and Poland, as well as from the
    World Health Organisation. The aid consists in medicines, equipment, tests, and
    the transfer of some COVID patients, the head of the Department for Emergency
    Situations Raed Arafat announced on Friday.Five Romanian COVID patients, in a critical condition, were taken on
    Friday to Austria and Poland, by 2 military aircraft. Other patients have been
    transferred to Hungary.


    GOVERNMENT In Romania, the interim
    defence minister Nicolae Ciucă, designated by president Klaus Iohannis to form a
    new government, initiated negotiations over parliamentary support. A first
    meeting was held on Friday, with the head of the Democratic Union of Ethnic
    Hungarians in Romania, Kelemen Hunor. The latter said his party would stay in
    power together with the National Liberal Party, and mentioned that in the
    coming days the governing programme and distribution of cabinet seats would be
    discussed. Save Romania Union is waiting for an invitation to talks, and will try to persuade the Liberals to go for a
    coalition government with majority support in parliament. PSD says it will talk
    with Nicolae Ciuca about a parliamentary majority to support the minority
    government, and AUR has stated it will not support such a government. The Prime
    Minister Designate has called on all political actors to support the new cabinet,
    so that Romania can quickly overcome the medical and economic crisis it is
    going through.


    AUTOMOTIVE Registrations of new hybrid vehicles in the EU accounted for nearly
    21% of the Union’s automotive market in the 3rd quarter of the year,
    outperforming Diesel vehicle registrations for the first time. According to the
    European Automobile Manufacturers’ Association, in July-September sales
    of petrol-based cars dropped by 35%, while registrations of new diesel cars
    more than halved across the EU region. Alternatively-powered vehicles saw a 69%
    increase in sales in Central Europe in the same period. In Romania, sales rose
    by over 153% compared to 2020.



    MOLDOVA The Parliament of the Republic of Moldova Friday
    declared a 30-day state of emergency in the country over a natural gas
    shortage. The government requested the measure in order to be able to procure
    natural gas from alternative sources, given that the Russian supplier Gazprom is
    no longer providing sufficient quantities to meet the demand, Radio Chişinău
    announced. According to the resolution, until 20th November, a
    special procedure will be in place, to speed up the procurement of natural gas.
    If necessary, energy consumption will be rationalised, and instruments to
    quickly collect payments from consumers will be introduced. According to Radio
    Chişinău, negotiations with the Russian energy giant carry on, but in the
    meantime the government is discussing with other states as well, including
    Ukraine, Romania, and Poland, to purchase natural gas from alternative sources.
    Natural gas prices has risen steeply in recent months in international markets,
    and some officials accuse Russia of energy blackmail.

    EUROPEAN
    COUNCIL The European Council president Charles Michel and the head
    of the European Commission Ursula von der Leyen, announced on Friday at the end
    of a meeting in Brussels, that the energy topic will be once again on the
    agenda of the December meeting of the European Council. In the meantime, the
    Commission will conduct an analysis of the EU electricity and natural gas
    market and on the carbon transaction market, after several member states blamed
    the recent energy price rises on problems in these areas. An emergency meeting of
    EU energy ministers was also scheduled for next week. Romania was represented
    by president Klaus Iohannis, who emphasised ahead of the meeting the
    need to quickly identify
    efficient short-term solutions, as the current energy crisis will have serious
    effects in all EU countries, with a profound socio-economic impact.

    (tr. A.M. Popescu)

  • October 19, 2021

    October 19, 2021

    COVID-19 Romanian authorities announced on Monday over 10,000 new SARS-CoV-2 infections and 261 COVID-related deaths in 24 hours. More than 1,700 patients are
    currently in intensive care. As regards vaccination, in Romania, the number of
    people that went through a full vaccination plan stands at roughly 5.7 million.
    The Romanian interim Interior Minister, Lucian Bode, has announced that 26
    patients infected with SARS-CoV-2 have been transferred to Hungary and that the
    situation these days is rather critical. Meanwhile, 32 medical staff from the
    neighbouring Republic of Moldova came to Romania on Monday and will treat
    COVID-19 patients for 12 days, in a mobile hospital in the village of Leţcani,
    Iaşi County. Romania now has new vaccination targets, after missing the
    previous ones because of citizens’ reluctance to the jab.


    AID Poland and Slovenia announced they are ready to help
    Romania fight the on-going healthcare crisis. The offers came after president
    Klaus Iohannis presented the situation in a videoconference ahead of a European
    Council meeting due in Brussels on Thursday and Friday. Attending the
    conference were the prime ministers of the 2 countries, who voiced their
    willingness to help Romania, as well as the president of the European Council,
    Charles Michel, ho undertook to facilitate EU-level aid. Hit hard by the 4th
    wave of the pandemic, Romania has already received medical equipment from Poland,
    Italy and Denmark.


    GOVERNMENT The relevant parliamentary committees are interviewing
    today the proposed members of PM designate Dacian Cioloş’s cabinet. Deputies
    and Senators will discuss with both former ministers in the coalition
    government comprising the National Liberal Party, Save Romania Union and the
    Democratic Union of Ethnic Hungarians, headed by the Liberal Florin Cîţu.
    Stelian Ion is once again nominated for justice minister, Ioana Mihăilă for
    health minister and Cătălin Drulă for transport minister, while former deputy
    PM Dan Barna is the proposed foreign minister. New names in the cabinet include
    environment activist Mihai Goţiu for environment minister, the former prefect
    of Bucharest Alin Stoica for interior minister and former fighter pilot Nicu
    Fălcoi for defence minister. The decision of Save Romania Union (USR) to
    present Parliament with a proposed one-party government was made after
    negotiations with the former partners failed to lead to the restoration of the
    right-wing coalition. The Liberals and
    ethnic Hungarian party would not resume cooperation with USR, because the
    latter backed a motion of no-confidence against the Cîţu government. The Social
    Democrats in opposition are also against a government headed by Cioloş, whom
    they accuse of irresponsibly protracting this political crisis. The Social
    Democrats and the nationalist party AUR demand early elections. Cioloş’s team
    needs 234 votes in Parliament, and USR only has 80 MPs. The vote on the
    proposed government is scheduled for Wednesday.


    AUTOMOTIVE The Ford production unit in Craiova (south-western Romania) is
    temporarily downsizing operations because of a semiconductor shortage. Until
    Thursday the plant will operate in one shift instead of three, both in the
    vehicle and the engine production divisions. The vehicles for which sale
    contracts have already been signed will be a priority, the management announced.
    Employees will be paid idle time up to 78% of their base salaries. In turn, the
    Dacia plant in Mioveni, Argeș County, controlled by the French group Renault, suspended
    its operations for lack of electronic components on October 8, sending home
    around 90% of its 14,000 employees at the time.


    OPINION POLL The Army and the Church rank first in terms of public
    confidence in Romania, according to an opinion poll conducted by the Information
    Warfare analysis and Strategic Communication Laboratory. Specifically, some 87%
    of the Romanians say they trust the Army, 70% the Church, 67% – the Romanian Intelligence
    Service and the Romanian Academy. Confidence is politicians is low, at some 20%,
    with the President, Parliament and Government on the top 3 positions. The main
    threats against Romania, according to over 40% of the respondents, are the
    politicians’ corruption and incompetence. The main threats facing the EU are an
    economic crisis, the COVID-19 pandemic and disagreements between some member
    states. the poll was conducted by telephone between October 1 and 10, with a de
    +/- 3.1% margin of error.



    MOLDOVA The leader of the Socialists Party in the neighbouring Republic of
    Moldova, the pro-Russian ex-president Igor Dodon, announced he stepped down as
    a Parliament member and party president. He said he will continue to work as
    part of the Moldovan-Russian Entrepreneur Union, to strengthen economic
    relations with Russia. Dodon explains his role as an opposition leader will be
    better served from outside Parliament. One year ago he lost the presidential
    election to pro-European Maia Sandu, whose party, Action and Solidarity, defeated
    the Socialists and their allies, the Communists, in July’s early parliamentary
    election. (tr. A.M. Popescu)

  • January 4, 2021 UPDATE

    January 4, 2021 UPDATE

    TALKS The government of Romania will hold talks this week on the 2021 state budget. According to Liberal Prime Minister Florin Citu, the budget is going to be based on a 7% deficit and will be submitted for Parliament approval by the end of the month. According to the Prime Minister, the 7% target is proof of the firm commitment to fiscal consolidation without hindering the economy. The budget will allow for an extension to June 30th of economic measures triggered by the pandemic, including compensations to employees during the suspension of employment and financial support for employers. A state aid scheme for the hospitality industry and travel agencies, totalling 500 million euros and financed from EU funds, will also be in place. The government might also discuss this week a bill raising the national minimum wage, while all wages in state-owned companies are to be frozen at the level of December 2020.




    COVID-19 – In the past 24 hours Romania has reported over 3,100 fresh cases of Covid-19 infections, out of 10,000 tests carried out nationwide, the Strategic Communication Group announced on Monday. Roughly 644,000 people have been infected with the virus since the first case was reported in Romania in February last year. Out of these, 577,000 have recovered. Another 78 people died to the virus in the past 24 hours, bringing the death toll since the onset of the pandemic to 16,057. 1,100 are in intensive care and the authorities are bracing up for a new wave of infections after the winter holidays. According to Raed Arafat, head of the Department for Emergency Situations, although the immunization campaign in Romania has commenced, prevention measures, like face covering, hand washing and social distancing remain mandatory. The vaccination campaign has been extended in Romania, which is to activate over 90% of the 376 centres for healthcare personnel and care centres. Nearly 13,500 medical workers were immunized in the first week since the vaccine was brought to Romania, with authorities targeting a daily 20,000 vaccination rate in the forthcoming period. The coordinator of the vaccination programme, Valeriu Gheorghiţă, says the second stage of the programme, targeting patients in care centres, may be initiated in mid-January.




    FLIGHTS The National Committee for Emergency Situations in Romania has updated their list of countries and areas in the COVID-19 red zone and decided to resume flights to and from the UK. People coming to Romania from this country are to isolate themselves for 10 days and must have taken a Covid-19 test at least 48 hours before their arrival. Flights to the UK were suspended on December 20th after a fresh, more contagious virus strain had been discovered in Britain. Italy has been included on the list of countries with a higher risk of transmission.




    AUTOMOTIVE The number of new car registrations went up 16% in Romania in December 2020 compared to December 2019, to 15,974 units, according to the Romanian Association of Automotive Makers (ACAROM). However, for the entire year 2020 the number dropped by 22%. As regards used vehicles registered in Romania for the first time, the number dropped by 5% in December 2020 compared to 2019, to 34,174 units. The best selling new cars in Romania in 2020 are Dacia, followed by Skoda, Renault, Volkswagen and Ford.




    ENERGY The European Commission Monday greenlighted the acquisition by the Europe Division of MIRA investment fund (Macquarie Infrastructure and Real Assets) of electricity production and supply assets held by the Czech group CEZ. In October 2020, CEZ Group announced the sale of its assets in Romania to MIRA, the worlds largest infrastructure management company. The transaction involved 7 companies, including electricity distribution and supply networks and Europes largest onshore wind farm, in Fântânele – Cogealac (south-eastern Romania).




    SAVINGS Four out of ten Romanians managed to save during the pandemic, as compared to two-thirds before. A survey conducted by the Romanian Research and Strategy Institute (IRES), and commissioned by the Romanian Banks Association, also shows that two-thirds of the household and corporate savings are in the local currency, mostly in short-term deposits. According to the survey, if they had money to spare, 28% of Romanians would invest in their or their familys education, 23% would keep the money in banks, 16% would start up a company and 10% would buy hard currency. The poll was conducted in December 2020.




    AIR FORCES MQ-9 Reaper Remotely Piloted Aircraft and around 90 US Air Force personnel are deployed for the next few months to ‘Gen. Emanoil Ionescu’ 71st Air Base in Câmpia Turzii, north-western Romania. According to the Romanian Defence Ministry, the Romanian Air Forces will provide technical, logistic and operational support to the MQ-9 Reapers intelligence, surveillance and recon missions as part of NATO operations. The US-Romanian cooperation is designed to strengthen the defence capacity and enhance security in the region. (tr. A. M. Popescu)

  • July 22, 2020 UPDATE

    July 22, 2020 UPDATE

    Coronavirus Romania. Romania reports a record 1,030 new coronavirus cases in the last 24 hours and 27 new deaths. The number of confirmed cases thus hits 40,100, while the death toll rises to 2,101. Almost 25,000 people have recovered. A law regulating the conditions for quarantine and isolation came into force on Tuesday, which, according to the health minister Nelu Tataru, lays down the instruments required in order to reduce the number of new cases. The minister warned however that the next two weeks will be difficult, with lots of active cases. As of Wednesday, the village of Cartojani in Giurgiu County in the south is under lockdown, after reporting 32 infections through community spread for a total population of 3,600. Local authorities say epidemiological risks are extremely severe, given that current protection measures are not observed. Another village in Prahova County, also in the south, is under a 2-week lockdown as well, while similar measures are being considered in several localities in Arges County.



    Coronavirus world. Global coronavirus infections near 15.1 million, while the death toll nears 620,000. In his coronavirus press briefing, which he resumed after many weeks of interruption, US president Donald Trump told Americans that the pandemic may get worse before it gets better and urged them to wear face coverings where they cannot maintain physical distance, something he had previously opposed. The US saw more than 600,000 new cases for the 8th day in a row. On Tuesday, the World Health Organisation said it would bring together scientists and experts from various fields as part of a project to combat disinformation, a relatively new threat to public health. In another move, a number of British researchers told the British Parliament that people would have to live with the pandemic for many years, believing it is unlikely for a possible vaccine to eliminate this coronavirus definitively.



    Industry President Klaus Iohannis and a governmental team headed by PM Ludovic Orban Wednesday discussed
    means to correlate the 2 national plans through which Romania will have access to
    nearly 80 billion euro under the European Union’s post-coronavirus economic
    recovery plan. Some of the money may be accessed this year, if the related national plan
    is prepared quickly, as the Cabinet intends, the President explained. Also on Wednesday, but in Craiova, in the south, Iohannis said that the automotive industry is vital for Romania and it
    still has a lot of growth potential. He visited the Ford production unit in
    Craiova, southern Romania, which has resumed its 3-shift working hours, and has
    a production volume comparable to the one before the pandemic. The management
    announced having initiated additional investments of 30 million USD for parts
    and components. The American carmaker has already invested over 1.5 billion
    euro in the plant in Craiova, which employs nearly 6,000 people. Another major
    carmaker operating in Romania is the French company Renault, producing the
    Dacia brand in Pitesti, in the south of the country, and employing over 17,700 workers.



    Deficit. Government deficit grew both in the eurozone and in the European Union in the first quarter of the year compared with the previous quarter, because of the lockdown to contain the spread of the pandemic, according to the latest figures published by Eurostat, the EU’s statistical office. In the eurozone, the government deficit grew from 0.7% of GDP in the last quarter of last year to 2.2% in the first quarter of this year. Malta, with 8.5%, Romania, with 7.2%, and Belgium, with 6%, have the highest deficit levels in the European Union.



    Judiciary. The Romanian senators rejected a bill to dismantle the special department to investigate offences in the judiciary. The Save Romania Union, the party that initiated the bill, said the department is criticised by magistrates, European institutions and various organisations in the field, while the Social Democratic Party said it guarantees the independence of the judiciary. The Chamber of Deputies has already rejected the bill, but the Senate was the decision-making body in this case.


    (translated by: CM, Ana-Maria Popescu)

  • October 12, 2017

    October 12, 2017

    GOVT RESHUFFLE – The National Executive Committee of the Social Democratic Party, the main party in the coalition in power in Romania, convenes today to discuss the government reshuffle requested by PM Mihai Tudose. During the same meeting, the relations between the government and the party are to be clarified. Over the past few days the PM has discussed the reshuffle both with President Klaus Iohannis, and with the Social Democratic leader, Liviu Dragnea. The names the most frequently mentioned in the media in relation to the reshuffle are Sevil Shhaideh, deputy PM and Minister for Regional Development, and Rovana Plumb, minister delegate for European funds, both of them members of the Social Democratic Party and prosecuted for corruption offences. The minister in charge with liaising with Parliament, Viorel Ilie, a member of the Alliance of Liberals and Democrats in Romania, the junior partner in the ruling coalition, is also in a similar situation. Other ministers with image problems may also be replaced.




    PACE – The Parliamentary Assembly of the Council of Europe is discussing in an emergency meeting in Strasbourg today Ukraines new and controversial education law. The talk, proposed by the Romanian delegation with support from 5 other national delegations, comes after Ukraine enacted a law that severely restricts access to mother tongue education for ethnic minorities in that country. Senator Titus Corlăţean, the head of the Romanian delegation and also a vice-president of PACE, told Radio Romanias correspondent in Strasbourg that he was hoping for a fair debate, able to persuade the Ukrainian authorities to amend the law. Under the new legislation, ethnic minority children will be able to study in their respective mother tongues only in kindergarten and primary schools, and then they will have to study in Ukrainian exclusively. On Wednesday, the President of Ukraine, Petro Poroshenko, promised PACE that Kiev would bring the new act in line with all the conclusions of the Venice Commission and would comply with the European Charter for regional or minority languages. Nearly half a million ethnic Romanians live in the neighbouring country, most of them in the Romanian territories annexed by the USSR in 1940, further to an ultimatum, and taken over by Ukraine as a successor state in 1991.




    AUTOMOTIVE – President Klaus Iohannis and PM Mihai Tudose took part on Thursday in the launch of the new Ford Ecosport model, at the Ford plant in Craiova, southern Romania. The head of state said that, by attending the event, he intends to convey a strong message of support for the automotive industry in Romania, which is growing increasingly competitive and has a better and better image in the European market. Since it took over the plant in 2008, Ford has invested over one billion euros in the production unit in Romania. More than 2,800 people are employed by Ford Craiova. The biggest carmaker in Romania is Automobile Dacia, based in Pitesti, in the south, taken over by the French group Renault in 1999. Over 13,500 people are working for this company, which has a turnover of over 4.3 billion euros.




    SPAIN – Spain is celebrating its National Day today, amid tensions between the separatist authorities of Catalonia and the central government in Madrid. PM Mariano Rajoy gave the regional Catalan leader Carles Puigdemont until Monday to give up plans to declare the regions independence, otherwise Catalonia would see its local autonomy suspended. Rajoy accused the Catalan government of having generated one of the most difficult times in Spains democracy and of having staged a very dangerous attack against the Constitution, the unity of Spain, the Catalan state and, most importantly, against Spains people living together.




    MOLDOVA – The European Union announced it would not grant the Republic of Moldova the remaining 28 million euros under the reform programme, intended for changes in the field of the judiciary. The Union believes the Government in Chisinau has failed to meet the conditions requested by Brussels. The EU delegation in Moldova mentions in a news release that the authorities in Moldova have shown poor commitment for reform, have not allotted enough funding and staff and, as a result, progress in terms of judicial reforms has been insufficient. Last week, PM Pavel Filip announced Moldova would no longer receive this years instalment of the 100 million euro aid programme provided by the EU. He admitted that the measure had been prompted by Chisinaus decision to change the election system for the forthcoming parliamentary elections, in such a manner as to favour the major parties.




    HANDBALL – The Romanian womens handball champions CSM Bucharest Wednesday night outplayed the Polish side Vistal Gdynia, 34-23, in an away game in Champions League Group A. This is the second win for CSM, after on Saturday night they defeated the Slovenians Krim Mercator Ljubljana, 30-18 at home. The Romanian side are next to play Nykoebing Falster Handboldklub of Denmark, on October 22. CSM Bucharest won the Champions League in 2016, when it first took part in the competition, and is one of the favourites to win this inter-club competition.


    (translated by: Ana-Maria Popescu)

  • Developments in the Romanian Automotive Industry

    Developments in the Romanian Automotive Industry

    The Romanian automotive industry has seen steady growth in recent years, after the acquisition of Automobile Dacia, based in Mioveni, by the French group Renault, and Fords investment in a production facility in Craiova, in the south of the country. While in 2014 the turnover of the sector was around 18 billion euros, in 2015 it exceeded 20 billion euros, to reach 22 billion euro last year. At present, 13% of the GDP comes from this sector, which also generates nearly one-quarter of the countrys exports.



    Around these two major industrial platforms, as well as in several large Romanian cities, companies have also developed, which provide equipment and parts to carmakers around the world. The engines, gear boxes and other components made in Mioveni are shipped to several facilities of the Renault-Nissan Group and fitted on the vehicles assembled there. So are the EcoBoost engines designed by Ford and made in Craiova, which are sent as far as to Brazil and China. Gabriel Sicoe, the head of the Romanian Carmaker Association, confirms the positive trend of this sector:



    Gabriel Sicoe: “Exports reach 13 billion euros, accounting for one-quarter of the national exports. The local market for new vehicles has resumed its growth. We have had three years of growth, at an average rate of 19%. Still, the market remains nearly three times smaller than the level before the global economic crisis.



    The greatest challenge for the local market remains the import of second-hand vehicles, which benefits neither the environment, nor the national budget. In contrast, for each new car made in Romania and registered here, the state budget receives 3,500 euros. Here is Gabriel Sicoe again with details:



    Gabriel Sicoe: “Last year, 3 imported second-hand cars were registered in Romania for each new car sold here. Since the scrapping of the environment charge in February, this ratio doubled. The impact is disastrous for the sales of new cars in Romania. In the second half of this year we intend to push for the taxation of second-hand vehicle imports, which are brought in the country by individual buyers and the state budget gets no benefits, and for tightening technical regulations on these vehicles.



    In spite of these problems, major producers continue to invest in Romania. Michelin has announced investments of over 33 million euros in the tyre plant in Zalau, in the north-west, while the Japanese company Calsonic will begin works next year on a new unit near Ploiesti, in the south. The facility will produce vehicle components both for the domestic market and for international clients.


    (translated by: Ana-Maria Popescu)

  • 29 September, 2016

    29 September, 2016

    BREXIT – Romanian President Klaus Iohannis holds a government meeting to discuss the Brexit. On June 24, the head of state talked to head of government Dacian Ciolos on the topic, as well as with national bank governor Mugur Isarescu and heads of political parties in Parliament. President Iohannis, speaking at the meeting of the European Popular Party Group Bureau, said that Romania wishes to be a part of the EU’s core of integration, and fully involved, sharing a pro-European vision built around the fundamental principles of the European project. He underlined the fact that a strong EU and more involvement for Romania in EU affairs are national strategies for the country.



    COMMISSIONER – European Commissioner for Regional Policy Corina Cretu is today on a visit to Romania to talk to Bucharest authorities about EC priorities and European fund absorption. The commisisoner will also be discussing projects financed by Europe, and take part in meetings with government officials and conferences attended by members of Parliament and local administration officials. This year, the European commissioner has repeatedly pointed out the risks of low levels of absorption of Europen funds in the country. Moneys meted out by the EU run the risk of being wasted since no project has been submitted in this fiscal period, according to Corina Cretu. Romania has been allocated 22 billion Euro for the 2014-2020 fiscal period.



    F-16 – The first batch of six F-16 fighter jets arrive in Romania today. After yesterday’s ceremony at the Monte Real airbasae in Portugal, Romanian pilots bring the aircraft to the airbase in Fetesti, southeastern Romania, after two years of training. The planes have undergone upgrades, in order to be able to operate on an equal footing with other multirole aircraft in NATO’s air wing. The F-16 group will be refreshed by three more aircraft to be delivered by the end of the year, and three more to arrive in 2017. Three years ago, Romania put in an order for the American made 12 war planes to Portugal for a transaction worth 628 million Euro.



    FOOTBALL – Romanian football champions Astra Giurgiu are playing against AS Roma away from home in their second game in the Europa League groups. In their first game, in Bucharest, Astra was defeated 2-3 by Austria Vienna. Also today, Steaua Bucharest, the national vice-champions, play at home against Spanish team Villareal, after getting defeated in Turkey by Osmanlispor 0-2. Next, Steaua plays against FC Zurich. The two Romanian teams reached the Europa League groups after getting eliminated in the preliminaries of the Champions League.



    RADIRO – The RadiRo 2016 symphonic music radio orchestra festival has reached its sixth day, after a show put on yesterday by the MDR Radio Symphony Orchestra of Leipzig, the oldest radio orchestra in Germany, conducted by Estonian Kristian Jarvi, honorary director of the festival this year. The soloist was Stefano Bollani, playing four interludes from the opera Intermezzo, by Richard Strauss, Rhapsody in Blue by George Gershwhin, and a suite from Swan Lake, by Tchaikovsky. Tonight’s show features the ORF Radio Symphony Orchestra, conducted by Cornelius Meister, with Gideon Kramer as a soloist. The festival runs until October 1st.



    TENNIS – Romanian tennis player Simona Halep, WTA 5th seeded, today qualified for the semi-finals of the tournament in Wuhan, China, a competition with prizes totaling 2.6 million dollars. She defeated American player Madison Keys 6-4, 6-2. She next plays against Slovakian Dominika Cibulkova.



    AUTOMOTIVE – The Dacia Duster EDC car model is Renault’s most eagerly expected introduction at the Paris Auto Salon, featuring the latest in drive technology, the double clutch. It will be presented at the Dacia stand alongside the Dacia Sandero and Dacia Sandero Stepway, the Dacia Logan and Dacia Logan MCV. The Dacia brand was acquired in 1999 by Renault, and makes up for about 30% of its sales. Dacia recently confirmed that part of the manufacturing of the Logan MCV model, so far made in Mioveni, in Romania, will shift to Tangiers, in Morocco. The decision was made in order to boost output for the Duster model in Mioveni, against high demand in Europe.