Radio România Internațional

Tag: budget bill

January 3, 2018 UPDATE

Prosecution — Anti-corruption prosecutors on Wednesday placed former Chamber of Deputies Speaker, Valeriu Zgonea, under judicial control, in a case in which he is prosecuted for influence peddling. According to prosecutors, between July 2012 and April 2013, while Zgonea was Speaker of the Chamber of Deputies and vice-president of the Social Democratic Party (PSD), another defendant, Dumitru Dobrica, promised him, and Zgonea accepted, undue benefits in exchange for using his influence upon some public servants, in order to appoint one of Dobrica’s relatives in an important public position. Investigators say that Zgonea received undue benefits of around 15 thousand euros. Also, Felicia Pop, office manager of the Minister for the Relation with Parliament, Viorel Ilie, was indicted by the National Anti-Corruption Directorate for using directly or indirectly information that is not intended for public disclosure, or for allowing unauthorized access to such information, in a case regarding the organisation of a contest to hire civil servants on contractual positions.

Resignation – The Romanian Minister of Waters and Forests, the Social Democrat Doina Pana, resigned on Wednesday, for medical reasons. Doina Pana will preserve, however, her position as Parliament member. She is Vice-President of the Parliament’s Committee for Environment and Ecological Balance and a member of the Romanian Parliament’s Delegation to the Parliamentary Assembly of the Union for the Mediterranean. Doina Pana became a minister in June 2017, a position she also held in 2014.

Budget — The Romanian President Klaus Iohannis on Wednesday promulgated the state budget and the social security budget laws for 2018. However, he pointed to the laws’ vulnerabilities and to the challenges posed by the current fiscal and budget framework, given that Romania needs a credible and balanced budget that should consistently observe the fundamental objectives of macroeconomic stability, predictability and fiscal and budgetary sustainability. The 2018 budget is based on a 5.5% economic growth rate, an average annual inflation rate of 3.1%, an average currency exchange rate of 4.55 lei for one Euro and an average net monthly salary of 565 Euros. The budget deficit is estimated at 2.97% of the GDP, in keeping with the under 3% target. Also on Wednesday, Klaus Iohannis promulgated the Law on the revision of the Government’s emergency decree regarding the organisation and functioning of the Romanian Energy Regulatory Authority (ANRE).

Chisinau — In the Republic of Moldova, the speaker of Parliament, with pro-western views, Adrian Candu, will take over the interim presidency from the pro-Russian president Igor Dodon, to sign the decree for appointing 7 new ministers. The announcement was made by the Parliament’s press office, after the Constitutional Court decided that the pro-Russian president Igor Dodon could be suspended again, following his repeated refusal to promulgate the government reshuffles. Radio Romania’s correspondents to Chisinau say this measure was already applied last October in the case of the appointment of the defense minister, Eugen Sturza. Prime Minister Pavel Filip announced the change of seven of the thirteen members of the government with the avowed purpose of boosting reforms. Among the nominees are also two former prime ministers, Iurie Leancă, proposed as deputy prime minister for European integration and Chiril Gaburici, who is to take over the Economy portfolio.

Tennis — World no. 1, Simona Halep, on Wednesday defeated the Chinese Ying-Ying Duan (91 WTA), 3-6, 6-1, 6-2 and made it to the quarterfinals of the WTA tournament held in Shenzen, China, with almost 630 thousand dollars up for grabs. Thus Simona Halep keeps the 1st place in the WTA ranking. Another Romanian, Irina Begu (no. 43 WTA) also qualified to the quarterfinals after defeating Russian Ekaterina Alexandrova (96 WTA), 4-6, 6-1, 6-2. Also on Wednesday, Romania’s 3rd representative in the tournament, Ana Bogdan (105 WTA) lost to the Czech player Kristyna Pliskova, 4-6, 6-7, in an eighth finals match. In the doubles, the pair made up of Irina Begu and Simona Halep on Tuesday qualified to the semifinals after a dramatic match against another Romanian pair made up of Mihaela Buzarnescu and Irina Bara. (Translated by Elena Enache)

3 January 2018
December 21, 2017 UPDATE

DECEMBER 1989 – 28 years since the December 1989 anti-Communist Revolution, Romanias president Klaus Iohannis has conveyed a message, saying that in 1989, Romanians called for the fall of Communism, an urge that can still be heard today. This should be a warning to politicians, who have proven lately they are not willing to leave the past and its bad habits behind. Upholding the ideals of the anti-Communist Revolution means defending the rule of law, freedom and democracy and respect for citizens, wrote the president on a social network, stressing that the investigation of the Revolution Case File must be completed and the crimes and abuses perpetrated in 1989 must be punished. Romania’s Parliament convened on Thursday in a solemn session to mark the Romanian Revolution. Commemorative events were held in Bucharest and other cities across the country to honor the martyrs of December 1989.After four days of protests, which started in Timisoara on December 16th 1989, during which dozens of dead and wounded were reported, the army joined the population and revolutionaries developed the first democratic platform. Started as a protest staged by citizens of Timisoara against an abusive measure taken by local officials, the revolution spread rapidly across the country, culminating on December 22nd with the presidential couples attempt to flee. More than 1,000 people died and some 3,400 were wounded between the 16th and the 25th of December 1989. Romania was the only country in the Eastern Bloc where the regime was changed violently and its communist leaders were executed by firing squad.

BUDGET BILL — Romanian Parliament on Friday will cast its final vote on the 2018 state budget and the social security budget. The budgets of some of the most important institutions have been maintained as they were in the draft proposed by the government, as the amendments filed by the opposition were not voted by the majority. The budget was built on an estimated 5.5% economic growth rate, an average exchange rate of 4.55 lei for one Euro and a monthly salary of 565 Euro, as well as an estimated budget deficit standing at 2.97% of the GDP. The priority fields in 2018 are health, education and infrastructure. The right-wing parliamentary opposition has criticized Governments measures, saying the structure of the budget is dangerous and will trigger an increase in the public debt.

JUSTICE LAWS – The Romanian Senate, the decision making body in this matter, on Thursday adopted the bill modifying the Law on the organization and functioning of the Superior Council of Magistracy. This was the last in the justice law package that the Senators had to rule on, after the adoption of the ones on judicial organization and the status of magistrates. Also on Thursday, the High Court of Cassation and Justice decided to refer some of the articles modifying the justice laws to the Constitutional Court. The changes that the ruling coalition, formed by the Social Democratic Party and the Alliance of Liberals and Democrats, has brought to these laws have been vehemently criticized by the right-wing opposition and a large part of civil society. Moreover, hundreds of magistrates have protested in Bucharest and in other cities across the country against the way in which these changes have been brought, saying the process has lacked transparency.

EMBASSIES — The embassies of several European countries on Thursday called on Romanian authorities involved in the reform of the judiciary to refrain from any action that might weaken the independence of the justice system and the fight against corruption. In an open letter, the embassies of Belgium, Denmark, Finland, France, Germany, the Netherlands and Sweden have highlighted the risks the current modifications to the justice laws might bring about. The embassies recognize Romania has reported important progress in terms of building a roadmap and implementing reliable reforms in the field of the judiciary. Still, embassies believe the recently adopted laws, as well as the recent proposals to amend the Criminal and Criminal Procedure Codes, risk endangering this progress, the letter also reads.

SANCTIONS — The EU has extended by six-months economic sanctions on Russia for its involvement in the Ukrainian conflict. The sanctions affect banks, businesses in the defense industry and oil companies, also forbidding European citizens to invest in Russia. The sanctions were first introduced in 2014, months after the annexation of the Crimean Peninsula. So far, the conflict in Ukraine has killed over 10,000 people, France Press reports.

(Translated by V. Palcu)

21 December 2017
December 13, 2017

KING MICHAEL I – The coffin carrying the body of the late Romanian King Michael I was flown to Romania from Switzerland on Wednesday, ahead of his funeral this weekend. A military plane transported the coffin, covered in the royal coat of arms. At the airport in Bucharest flags were flown at half-mast and Orthodox priests performed a religious service in the presence of King Michael’s five daughters. The coffin was then taken to Peles Castle in the mountain resort of Sinaia, the birthplace of King Michael I. The road was lined with people who wanted to say good-bye to their last King as the cortège travelled to Sinaia. Romanian and Moldovan officials are expected to pay their respects at the Peles Castle. Later this evening, the coffin will be brought to the Royal Palace in Bucharest, where people can pay their respects. King Michael I will be buried with state honours on Saturday, December 16 at Curtea de Arges, where all Romanian kings were interred. King Michael, who died in Switzerland on December 5th, aged 96, was forced to abdicate and leave the country in 1947, when Romania was ruled by a Soviet puppet government and was under Soviet military occupation.

LAWS — The amendments to the justice laws regarding judicial organisation and the functioning of the Higher Council of Magistracy are today debated and voted on by the Chamber of Deputies in Bucharest, only two days after the magistrates’ new status was endorsed. It was decided that the Judicial Inspection be further subordinated to the Higher Council of Magistracy, although the ruling coalition initially proposed that it should be an autonomous body. Also, the special parliamentary committee in charge of amending the laws in the judicial sector has decided to set up a special department for the investigation of crimes in the justice system. The amendments to the justice laws have come to the attention of the Council of Europe, that has called on Romania to offer clarifications on the controversial draft laws, after the Group of States against Corruption (GRECO) has for the first time activated a procedure for exceptional circumstances in this case.

BUDGET BILL – The 2018 state and social security bills are being debated in the joint budget and finance committees of Romania’s Parliament, with the final vote on the bills scheduled for December 21. The budget for 2018 was based on a 5.5% economic growth rate, a 3.1% inflation rate, an average exchange rate of 4.55 lei for the Euro and an increase in the average number of employees by 4.2%. Healthcare, education and investments are the priorities of the government in Bucharest if we look at the amount of funds these areas have been allocated in the 2018 budget bill. The budget bill is contested by the Opposition that has filed almost 4 thousand amendments to it.

PROTEST — The Romanian Confederation of Authorised Transporters and Operators has suspended the protests announced for today in Bucharest and other Romanian cities. Early this week, the confederation announced that 35 thousand transporters will protest against piracy and fiscal evasion but its representatives have stated that all their demands have been met. They say that road transport accounts for 4.7% of the GDP every year but argue that state authorities tolerate piracy so that the number of illegal transporters is almost equal to that of legal ones.

WORLD BANK – The World Bank will end its financial support for oil and gas exploration within the next two years in response to the growing threat posed by climate change. After 2019, the WBG — which includes the World Bank and three other institutions — will stop investing in upstream oil and gas, according to an announcement made at the One Planet Summit in Paris on Wednesday. The World Bank said it will continue to lend “in exceptional circumstance” but only in the very poorest countries and if the project does not conflict with the 2015 Paris climate change accord. French president Emmanuel Macron hosted the summit attended by 164 world leaders, government members, business leaders and prominent figures.

(Translated by Elena Enache)

13 December 2017
The government adopts budget bill

Healthcare, education and investments are the priorities of the government in Bucharest if we look at the amount of funds these areas have been allocated in the 2018 budget bill adopted on Wednesday. The government has based its calculations on a 5.5% economic growth rate, a 3.1% annual inflation rate, a budget deficit level of less than 3% of the GDP and an average net salary income of 2,614 lei, the equivalent of 570 euros. The budget bill for next year is a good one and based on figures that are not overly optimistic, said Prime Minister Mihai Tudose at the start of the government meeting.

He also said Romania’s GDP exceeds 200 billion euros for the first time: “We are consistent when it comes to our priorities: healthcare, education and infrastructure. We have allocated 23.6% more funds to agriculture, which has been one of the main engines of growth this year.”

Finance Minister Ionut Misa has provided more details about the ministries that will receive more money in 2018: “The budget of the Defence Ministry will grow by 11.3% compared with 2017, which accounts for 2% of the GDP, in keeping with Romania’s commitments to NATO. The Education Ministry gets a 240.9% increase, which also covers the salary rights of pre-university staff beginning in 2018. The Healthcare Ministry will get 4.6% more funds than in 2017.”

The finance minister also said the budgets of the Chamber of Deputies and the President’s Office will grow by 29 and 20%. respectively. The 2018 budget bill takes into account a 9% rise in the net minimum and average wage, a rise in pensions by 10% and in the minimum pension by 23% as of July 1st. The disability allowance is also set to increase by 30% as of January 1st. Moreover, the budget bill ensures the necessary resources to grant holiday vouchers to all public sector employees. Another government goal for next year is the reduction of the unemployment rate to below 4% and an increase in the number of full-time employees by more than 200,000. With regard to the absorption of European funds, Mihai Tudose’s cabinet aims to attract 32% more funds compared with his year.

Mihai Tudose: “We aim to attract 28.4 billion lei in European funds in 2018. I believe we will even be able to exceed this realistic target, given that the projects implemented this year will reach maturity next year.”

The budget bill must now be adopted by Parliament before being signed into law by the president.

7 December 2017
August 26, 2017

Budget bill — Romania’s state budget bill could be sent to Parliament in early October, the PM Mihai Tudose announced. He discussed the issue with the leaders of the government coalition, Social Democrat Liviu Dragnea and Liberal Democrat Călin Popescu-Tăriceanu, who are the presidents of Parliament’s two chambers. PM Tudose pointed out that, despite the favorable economic context, the Parliament should draft a package of laws which, together with the budget law, should ensure economic stability. In this regard he mentioned the unitary pay law for civil servants, decreasing the income tax from 16% to 10% and diminishing the amount of social contributions.

Justice — The Romanian Justice Minister Tudorel Toader announced he would analyze the opinions expressed in the public space regarding the proposals to change the justice laws. He said he wanted a large-scale debate ahead of passing these laws. Harshly criticized by the opposition, the press and civil society, the draft law stipulates, among other things, that the president will no longer appoint the heads of the National Anti-Corruption Directorate (DNA) and the Directorate for Investigating Organized Crime and Terrorism (DIICOT), that the Judicial Inspectorate will be subordinated to the Justice Ministry and seniority will be increased for the promotion of magistrates.

Sprint Canoe World Championship — Romanian canoeists Victor Mihalachi and Leonid Carp on Saturday won the silver medal in the 500 m Canoe-2 event at the Sprint Canoe World Championship in Racice, the Czech Republic. Victor Mihalachi and Leonid Carp were defeated by the Russians Ivan Ştil and Viktor Melantev. Third came the Moldovan-born Italians Sergiu and Nicolae Crăciun. Also on Saturday, Florentina Caminescu and Irina Lauric will compete in the Kayac-2 final on 1,000 m. Another three Romanian crews will be competing Saturday in the semifinals.

Tennis — World’s no. 2 tennis player, Simona Halep, will take on the famous Russian player Maria Sharapova in the first round of the US Open, the year’s last Grand Slam tournament, to start Monday at Flushing Meadows, in New York. Halep, second seeded, played a semifinal in New York in 2015 and in 2016 she did not pass the quarterfinals. Sharapova, who started playing again in April, after a ban for doping, won the U.S. Open title in 2006 and she was granted a wild-card invitation for this year’s U.S. Open. After the drawing of lots, Romanian Monica Niculescu (58 WTA) will play in the first round against cu Kristina Mladenovic (14 WTA).Ana Bogdan (127 WTA) will take on the American Taylor Townsend (21 years old, 119 WTA), also the beneficiary of a wild-card. Sorana Cîrstea (53 WTA) will play against the Dutch Lesley Kerkhove (170 WTA). Irina Begu (57 WTA) will play against, Katerina Kozlova (115 WTA), from Ukraine. Romanca Mihaela Buzărnescu (133 WTA), who is for the first time on the main table of a grand slam tournament, will take on the Danish player Caroline Wozniacki (5 WTA). In the men’s competition, Marius Copil (world’s no.88 player), who is also for the first time in the main table of the U.S. Open will take on the French Jo-Wilfried Tsonga (12 ATP).

Missile tests — On Friday night, North Korea tested 3 short-range missiles which were launched in the context of South Korea and the US carrying out joint military drills described by the communist regime in Pyongyang as war preparations. The US army said that all 3 North Korean tests failed: the first missile exploded shortly after being launched, while the other 2 experienced problems during the flight. The US Pacific Command gave assurances that neither the Guam navy base nor the American continent were under threat. The launches took place less than a month after Pyongyang had tested an intercontinental missile with a 10 thousand kilometer range which could reach the US’s territory. (translation by L. Simion)

26 August 2017
February 16, 2017 UPDATE

VISIT — Romanian President Klaus Iohannis on Thursday met with the European Commission chief-negotiator for Brexit, Michel Barnier, who is on a visit to Bucharest. The meeting was scheduled ahead of Romania’s taking over the EU presidency in 2019, a year when Brexit negotiations are due to enter their final phase. President Iohannis said that Brexit negotiations should observe the rights of Romanians living in the UK. Iohannis also said that Romanians in the UK should enjoy the rights that had been granted to them even after the country’s leaving the EU. In his turn, Michel Barnier talked about the stage of the Brexit preparations and underlined the important role that Romania will play in this respect as country that will take over the EU presidency in 2019.

BRUSSELS — The European Commission is expecting that Romania’s progress in the fight against corruption should be irreversible, the first vice-president of the European Commission, Frans Timmermans, said in a press conference held jointly with Romanian Prime Minister Sorin Grindeanu on Thursday in Brussels. Timmermans also said that Romania would be getting support from the Commission to solve the issue of prison overcrowding. In his turn, PM Grindeanu said he considered nominating a person without political affiliation at the helm of the Justice Ministry.

BUDGET BILL – Romanian President Klaus Iohannis on Thursday promulgated the budget bill and the social security bill for 2017. However, the President pointed out that the state budget was problematic because it included overestimated revenues and very high level of expenditure. On Tuesday, after a meeting with PM Sorin Grindeanu and Finance Minister Viorel Stefan, President Iohannis said that there was the risk of the budget deficit to exceed 3%, which would trigger the excessive deficit procedure by the European Commission. The state budget, proposed by Romania’s leftist government, is based, among other things, on a 5.2% economic growth rate, an inflation rate below 1.4% and an unemployment rate of 4.3%.

STRASBOURG – All EU citizens and third country nationals entering or leaving the EU will be systematically checked against databases, under a regulation voted by the European Parliament on Thursday in Strasbourg. The new regulation, which amends the Schengen Borders Code was presented by the European Commission in December 2015. It obliges member states to carry out systematic checks on all persons crossing EU external borders against databases of stolen and lost documents, the Schengen Information System (SIS) and other relevant EU databases. The rule change is a response to terrorist threats in Europe and the phenomenon of “foreign fighters”, i.e. EU citizens joining terrorist groups in conflict zones, such as Daesh in Syria and Iraq. The checks will be mandatory at all air, sea and land borders, on both entry and exit. Denmark, the United Kingdom and Ireland have all opted out of its scope.

ACTIVITY REPORT — The total value of assets seized or frozen last year by the Directorate for the Investigation of Organized Crime and Terrorism stood at 930 million euros. According to the institution’s activity report for 2016, total crime-related damages, as shown by cases solved last year, stood at 135 million euros, as compared to 173 million euros in 2015. Anti-mafia prosecutors solved over 13,000 cases last year, up by 12.5% as against 2015, with almost 4,000 people being prosecuted. Another 13,000 cases are still pending.

INFRINGEMENT — The European Commission has sent a letter of formal notice to Romania on retail trade of agricultural and food products. Large retailers from Romania are required to purchase at least 51% of food and agricultural products from local producers. The Commission raised concerns on the basis of the principle of free movement of goods. The joint Senate committees on European affairs and agriculture decided to set up a task force to harmonize Romanian legislation with EU regulations.

TRAVEL FAIR — Over 250 travel agents from 14 countries on Thursday and Friday are taking part in Romania’s Travel Fair. Agencies from Romania and Austria, Bulgaria, Egypt, Croatia, the Russian Federation, Greece, Israel, Moldova, Palestine, Poland, the Dominican Republic, Turkey and Hungary will be presenting visitors with customised offers, based on individual budgets and preferences, travel packages for Easter, the summer holidays as well as circuits. Travel agents have offers at 40-50% discounts, available only during the fair, transport offers for one euro only, air travel costs included and other benefits.

TENNIS — Romanian tennis player Horia Tecau and Jean-Julien Rojer of the Netherlands on Thursday qualified to the semifinals of the men’s doubles of the Rotterdam Tournament with 1.7 million euros in prize money. They defeated Feliciano Lopez and Marc Lopez of Spain, the competition’s second seed, in two sets, 6-4, 6-4. The Romanian-Dutch team won this tournament in 2015.

(Translated by Elena Enache)

16 February 2017
February 7, 2017 UPDATE

ADDRESS – In a Parliament address on Tuesday, Romania’s president Klaus Iohannis called on the left-wing government to find solutions to the crisis it caused with the ordinance on amending the criminal legislation, an ordinance they later withdrew. The head of state blamed the ruling coalition made up of the Social Democratic Party and the Alliance of Liberals and Democrats for having collided with a large part of society only a month after coming to power and reminded the large-scale protests triggered by the government’s decision. Iohannis pleaded for a responsible governing, predictable and transparent, and called on Parliament to draw up laws for Romania, not for a group of politicians with legal problems. He warned that unless the Social Democratic Party found a rapid solution to the crisis he would summon talks to settle the issue. At the same time, the president reiterated his decision to call a referendum, for the Romanians to have their say on the continuation of the anti-graft fight and on ensuring the integrity of public functions. The leaders of the ruling coalition accused the president of partisanship and of not playing his part as a mediator in society. On the other hand, the members of the parliamentary parties in opposition, the National Liberal Party, Save Romania Union and People’s Movement Party said that President Iohannis did nothing but express Romanians’ will.

PROTESTS — The anti-government protests continued in Bucharest and other Romanian cities on Tuesday, for the 8th consecutive day. Protesters, who gathered in front of the government offices in smaller numbers than in the previous days, asked for the resignation of the leftist government. We remind you that on Sunday, more than half a million people protested in the capital Bucharest and in other cities against the emergency decree amending the criminal codes, in spite of the fact that the decree had been abrogated that same day. Also on Tuesday protests against the head of state were held in Bucharest for the third day in a row. The government has announced that for the time being it scraps plans to amend the criminal codes.

RULING – Romania’s Constitutional Court ruled on Tuesday that that the draft law on the conversion of loans in Swiss francs into national currency is unconstitutional. The Constitutional Court had postponed several times a decision on this matter. The draft law adopted by the Chamber of Deputies on October 18, 2016, stipulated the conversion into the national currency of loans in Swiss francs at the exchange rate valid when the loan was contracted. The law was challenged at the Constitutional Court by the former government headed by Dacian Ciolos, who specified that he did that for clarification and not because he was against it.

BUDGET – Parliament in Bucharest adopted on Tuesday the 2017 budget bill and social security bill. On Monday, Prime Minister Grindeanu underlined the budget contributed to raising the Romanians’ standard of living and was based on a GDP under 200 billion euros, an economic growth of 5.2% and a deficit of 3% of the GDP. The opposition parties’ amendments to the bills have been dismissed.

MOLDOVA – The president of the Republic of Moldova, the pro-Russian socialist Igor Dodon discussed on Tuesday in Brussels with the European Council president Donald Tusk about the relationship between Chisinau and the EU. In a Facebook post Dodon said that he pointed out, during the meeting with Tusk, that two years since his country signed the Association Agreement with the EU the situation in Moldova has worsened. Dodon also said that in the case of a referendum on this matter, if people voted for the annulment of the agreement, he would respect their wish. The Moldovan president proposed, in Brussels, three-side talks among the EU, Moldova and Russia on trade. Igor Dodon is yet to meet the speaker of the European Parliament, Antonio Tajani, foreign policy commissioner Federica Mogherini, and NATO officials.

(Translated by Elena Enache)

7 February 2017
February 5, 2017 UPDATE

EMERGENCY DECREE – Protests continued in Bucharest and other Romanian cities on Sunday, for the 6th consecutive day, with tens of thousands of Romanians asking for the coalition government made up of the Social Democratic Party (PSD) and the Alliance of Liberals and Democrats (ALDE) to step down. Protesters say they no longer trust the Social Democrat Sorin Grindeanu’s cabinet, sworn in last month. People continued to take to the streets in spite of the fact that the government repealed earlier on Sunday the controversial emergency decree amending the criminal codes, which critics say was meant to clean the record of politicians, local officials and some business people, thus drastically weakening the anti-corruption fight. Before Sunday’s emergency meeting, PM Grindeanu had announced he would initiate consultations with parliamentary parties in order to harmonise the legislation with the Constitutional Court’s rulings. President Klaus Iohannis said that the decision to abrogate the emergency decree is a step towards normality. Also on Sunday, around one thousand people gathered in front of the presidential headquarters to express their support for the government and ask for the president’s resignation.

BUDGET BILL — The 2017 budget bill will be debated at the plenary session of the Romanian parliament on Monday. Finance Minister Viorel Stefan has given assurances, on behalf of the coalition government, that the budget observes the main guidelines, such as cutting the VAT from 20% to 19% or eliminating the income tax for pensions lower or equal to 2,000 lei. This year’s budget is based on a 5.2% economic growth rate and a deficit of maximum 3% and will allow Romania to comply with its commitments to allocate 2% of its GDP to the defence ministry. The government expects an inflation rate under 1.4% and an unemployment rate of 4.3%. On the other hand, the opposition claims the revenue forecast underling the bill is hyped.

MOLDOVA — The Socialist president of the Republic of Moldova, the pro-Russian Igor Dodon, is paying a three-day official visit to Brussels starting on Monday, to meet with European officials. Dodon may also have talks with NATO officials. Elected president in November 2016, Dodon’s first official visit abroad was to Moscow, last month, where he said that the Association Agreement between the Republic of Moldova and the EU, concluded in 2014, could be revised or even cancelled. Dodon also said he would ask for a meeting with the NATO leaders, asking them to recognise Moldova’s neutrality. Pundits in Chisinau have voiced concern that Dodon’s visit to Brussels might render Moldova’s relations with the West even more difficult. On the other hand, the head of the Moldovan Parliament, Adrian Candu, has said that the head of state has limited powers as far as the country’s foreign policy is concerned and that the current parliament majority sees the implementation of the Association Agreement with the EU as top priority.

FOREIGN MINISTRY – The Romanian Foreign Minister Teodor Melescanu will attend on Monday in Brussels the EU Foreign Affairs Council meeting. According to a Foreign Ministry release, the meeting focuses on topics such as Ukraine and ways to consolidate the EU’s relationship with this country, the evolutions in Libya after the community summit in Valletta, the relations between the EU and Egypt and the peace process in the Middle East. On the sidelines of the meeting, Melescanu will have meetings with NATO’s Secretary General Jens Stoltenberg, the European Commission’s First Vice-President, Frans Timmermans and with the High Representative of the European Union for Foreign Affairs and Security Policy, Federica Mogherini. Previously, Melescanu said he would present the Brussels officials the latest developments in Romania.

TENNIS — Romania’s Davis Cup team lost to Belarus, 2-3, in the first round of Davis Cups Europe/Africa Zone Group I. On Sunday, Romanian Adrian Ungur was defeated by Egor Gherasimov, 6-7, 4-6, 4-6, while earlier on the day Marius Copil beat Ilya Ivashka, 7-5, 6-4, 6-1. On Saturday, Horia Tecau and Marius Copil were defeated in Minsk by the pair Max Mirnyi – Yaraslav Shyla, in the doubles. On Friday, Romanian Adrian Ungur defeated Ilya Ivashka, while Marius Copil lost to Egor Gherasimov. Belarus will play in the second round of Group I against Austria, whereas Romania will face the team of Israel on September 15-17, 2017 in a decisive match to remain in Group 1.

(Translated by Elena Enache)

5 February 2017
February 5, 2017 UPDATE

EMERGENCY DECREE – Protests continued in Bucharest and other Romanian cities on Sunday, for the 6th consecutive day, with tens of thousands of Romanians asking for the coalition government made up of the Social Democratic Party (PSD) and the Alliance of Liberals and Democrats (ALDE) to step down. Protesters say they no longer trust the Social Democrat Sorin Grindeanu’s cabinet, sworn in last month. People continued to take to the streets in spite of the fact that the government repealed earlier on Sunday the controversial emergency decree amending the criminal codes, which critics say was meant to clean the record of politicians, local officials and some business people, thus drastically weakening the anti-corruption fight. Before Sunday’s emergency meeting, PM Grindeanu had announced he would initiate consultations with parliamentary parties in order to harmonise the legislation with the Constitutional Court’s rulings. President Klaus Iohannis said that the decision to abrogate the emergency decree is a step towards normality. Also on Sunday, around one thousand people gathered in front of the presidential headquarters to express their support for the government and ask for the president’s resignation.

BUDGET BILL — The 2017 budget bill will be debated at the plenary session of the Romanian parliament on Monday. Finance Minister Viorel Stefan has given assurances, on behalf of the coalition government, that the budget observes the main guidelines, such as cutting the VAT from 20% to 19% or eliminating the income tax for pensions lower or equal to 2,000 lei. This year’s budget is based on a 5.2% economic growth rate and a deficit of maximum 3% and will allow Romania to comply with its commitments to allocate 2% of its GDP to the defence ministry. The government expects an inflation rate under 1.4% and an unemployment rate of 4.3%. On the other hand, the opposition claims the revenue forecast underling the bill is hyped.

MOLDOVA — The Socialist president of the Republic of Moldova, the pro-Russian Igor Dodon, is paying a three-day official visit to Brussels starting on Monday, to meet with European officials. Dodon may also have talks with NATO officials. Elected president in November 2016, Dodon’s first official visit abroad was to Moscow, last month, where he said that the Association Agreement between the Republic of Moldova and the EU, concluded in 2014, could be revised or even cancelled. Dodon also said he would ask for a meeting with the NATO leaders, asking them to recognise Moldova’s neutrality. Pundits in Chisinau have voiced concern that Dodon’s visit to Brussels might render Moldova’s relations with the West even more difficult. On the other hand, the head of the Moldovan Parliament, Adrian Candu, has said that the head of state has limited powers as far as the country’s foreign policy is concerned and that the current parliament majority sees the implementation of the Association Agreement with the EU as top priority.

FOREIGN MINISTRY – The Romanian Foreign Minister Teodor Melescanu will attend on Monday in Brussels the EU Foreign Affairs Council meeting. According to a Foreign Ministry release, the meeting focuses on topics such as Ukraine and ways to consolidate the EU’s relationship with this country, the evolutions in Libya after the community summit in Valletta, the relations between the EU and Egypt and the peace process in the Middle East. On the sidelines of the meeting, Melescanu will have meetings with NATO’s Secretary General Jens Stoltenberg, the European Commission’s First Vice-President, Frans Timmermans and with the High Representative of the European Union for Foreign Affairs and Security Policy, Federica Mogherini. Previously, Melescanu said he would present the Brussels officials the latest developments in Romania.

TENNIS — Romania’s Davis Cup team lost to Belarus, 2-3, in the first round of Davis Cups Europe/Africa Zone Group I. On Sunday, Romanian Adrian Ungur was defeated by Egor Gherasimov, 6-7, 4-6, 4-6, while earlier on the day Marius Copil beat Ilya Ivashka, 7-5, 6-4, 6-1. On Saturday, Horia Tecau and Marius Copil were defeated in Minsk by the pair Max Mirnyi – Yaraslav Shyla, in the doubles. On Friday, Romanian Adrian Ungur defeated Ilya Ivashka, while Marius Copil lost to Egor Gherasimov. Belarus will play in the second round of Group I against Austria, whereas Romania will face the team of Israel on September 15-17, 2017 in a decisive match to remain in Group 1.

(Translated by Elena Enache)

5 February 2017
February 5, 2017

EMERGENCY DECREE – The Bucharest Government is today holding an emergency meeting to repeal a highly controversial emergency decree that decriminalises official misconduct, which has sparked mass protests over the past few days. The Social Democratic PM Sorin Grindeanu has announced that consultations with political parties will be initiated to harmonise the legislation with the rulings issued by the Constitutional Court. He has also said that Justice Minister Florin Iordache will bear the consequences. The Social Democrat-led coalition government has come under huge pressure at home and abroad to repeal the emergency decree which critics say will clean the record of politicians, local officials and some business people and will drastically weaken an anti-corruption fight widely praised by Romanias Western allies. Protests continue today in Bucharest for the sixth consecutive day. Over the past few days, hundreds of thousands of Romanians have taken to the streets in the capital Bucharest, in many other Romanian cities and abroad to protest against the government’s decisions, in what is seen as the biggest rallies in Romania since the 1989 Anti-Communist Revolution. President Klaus Iohannis, challenged the emergency decree at the Constitutional Court, evoking a possible legal conflict between the government, the judicial system and Parliament. The Higher Council of Magistracy, the General Prosecutors Office and the Ombudsman have also taken a similar stand in the mater. The embassies of France, Germany, the Netherlands, Belgium, Canada and the United States voiced concern about the events in recent days, saying the governments actions risk affecting partnerships with Romania, based on common values inherent to the guiding principles of the EU and NATO.

FOREIGN MINITRY – Romanian Foreign Minister Teodor Melescanu is travelling to Brussels on Monday to discuss with Romania’s European partners about the controversial emergency decree that amends the criminal codes. Melescanu has said that holding talks on this issue is normal. The Foreign Minister has also said that the controversial emergency decree could have been presented better and that there have been communication issues which he hopes will be overcome. A Foreign Affairs Council meeting is held on Monday in Brussels attended by EU foreign ministers.

UNITED STATES – The US Justice Department filed an appeal against the suspension of President Donald Trumps travel ban on people from seven Muslim countries. The move seeks to reverse Fridays ruling by a federal judge in Washington state. The US reopened its borders on Saturday for citizens from Iran, Iraq, Libya, Somalia, Sudan, Yemen and Syria, after President Trump’s immigration ban. The US President has said that the ruling of judge James Robart from Seattle is “ridiculous” and that it will be annulled.

BUDGET BILL – Romanian Parliament’s budget and finance committees continue debates on the 2017 budget bill. A final report on it will be drawn up this evening. The budget bill is to be presented to Parliament’s plenary sitting on Monday and voted on the following day. Finance Minister Viorel Stefan, has given assurances, on behalf of the coalition government, that the budget observes the main guidelines, such as cutting the VAT from 20% to 19% or eliminating the income tax for pensions lower or equal to 2,000 lei. This year’s budget is based on a 5.2% economic growth rate and a deficit of maximum 3% and will allow Romania to comply with its commitments to allocate 2% of its GDP to the defence ministry. The government expects an inflation rate under 1.4% and an unemployment rate of 4.3%. On the other hand, the opposition claims the revenue forecast underling the bill is hyped.

TENNIS – The Romanian men’s tennis team is today holding in Minsk the last two singles, against Belarus, of the first round of Davis Cups Europe/Africa Zone Group I: Marius Copil – Ilya Ivashka and then Adrian Ungur – Egor Gherasimov. Leading the competition is now Belarus 2-1. On Saturday, Horia Tecau and Marius Copil were defeated in Minsk by the pair Max Mirnyi – Yaraslav Shyla, in the doubles. On Friday, the Romanian Adrian Ungur defeated Ilya Ivashka, while Marius Copil lost to Egor Gherasimov.

BOXING – WBO European heavyweight champion, Romanian Christian “Hammer” Ciocan (21-4, 12KOs) knocked out former British heavyweight champion David Price (21-4, 18 KOs), in a match held on Friday night at the Olympian in London. Hammer teed off 33-year-old Price until the referee halted the fight. The official time of the stoppage was at 1:22 of round 7.

(Translated by Elena Enache)

5 February 2017
Priorities of the New Budget Bill

For the technocrats making up the Ciolos cabinet, the first cabinet with no political affiliation in Romania’s post-communist history, drawing up the 2016 state budget has not been an easy task. And neither will be for them to keep the deficit at maximum 3% of the GDP, as established at EU level. To say nothing that that target will have to be maintained against the background of an increase in public sector salaries by 10 to up to 25% and fiscal relaxation, which could favour businesses on the long run but might also prove risky on the short run.

On the other hand, the largest parliamentary parties, the Social Democratic Party and the National Liberal Party, the only ones that could truly oppose the budget bill have no interest in challenging a government that offers them a one-year break, which is exactly what they need in an election year. The quick pace at which the 2016 state budget nears its adoption proves that no one plans to challenge it. On Monday the budget bill was submitted to Parliament with very few amendments. Prime Minister Dacian Ciolos made it a point to assure the MPs that the government would abide by important provisions related to fiscal relaxation and pay rises for state employees. He recalled that the priority sectors considered when drawing up the budget were education, healthcare, research, defense and investment.

Dacian Ciolos: “The healthcare system will be allocated an extra 700 million euros, the education system an extra 500 million euros and research an extra 110 million euros. Investment in research will go up by around 23% in 2016 because we believe that research is also instrumental to a sustainable economic recovery.”

Prime Minister Dacian Ciolos also said he was aware that the Government had to decide, by year-end, whether the minimum salary should be maintained at the current level of 230 euros or should go up to 260 euros. Ciolos explained that raising the minimum salary, something that the Social Democrats insisted on, could not be done before an impact study was conducted.

Dacian Ciolos: “What I’m particularly concerned about is not the impact on the state budget, which is minimum after the state employees’ salaries have already been raised by 10%, but on several sectors with a small level of profit. I think we should carefully consider the possible impact of our decisions on those sectors.”

The National Union of Romanian Employers has announced they support the increase in the minimum salary, on condition that the taxes and duties paid by companies to be calculated based on the current level of the minimum salary.

(Translated by Elena Enache)

15 December 2015
13 December 2015

Budget. Parliament’s specialist committees are today trying to
finalise talks on the 2016 budget bill so that the two houses can vote on the
bill on Wednesday. Liviu Dragnea, the leader of the Social Democratic Party,
which forms Parliament’s largest group, publicly called on Romania’s
technocratic prime minister Dacian Ciolos to name a date for the increase in
the minimum wage by Tuesday at the latest. Dragnea said he was opposed to the
indefinite postponement of this rise, which the former leftist government had
proposed. The Ciolos cabinet said the rise in the minimum wage from 233 euros
to 266 euros cannot be implemented without first assessing the measure’s
economic and budgetary impact. The 2016 budget is based on an estimated growth
rate of around 4% and a maximum budget deficit of 3%.

Climate deal. The international community has hailed the conclusion of
a landmark climate change agreement in Paris on Saturday. After two weeks of
intense negotiations, delegates from almost 200 states adopted a new accord at
the end of the UN climate conference of parties (COP21) hosted by the French
capital. The new deal aims to limit the rise in global temperatures to less
than 2 degrees Celsius. Progress will be reviewed every five years, and rich
countries will provide financial support to developing nations to help them
reduce their emissions level and adjust to climate change. US president Barack
Obama said the new climate change agreement is a turning point for the world.
The president of the European Commission Jean Claude Juncker said the world is
now united in the fight against climate change.

French elections. France
is holding the second round of regional elections today, with the far-right
National Front seeking to gain control in several regions. Commentators say the
voting may confirm the rise of the far-right, whose anti-immigration and
anti-Islam rhetoric is increasingly appealing to voters in the aftermath of
last week’s terrorist attacks in Paris. In the first round, the National Front
won a record 30% of the votes, placing it ahead of the moderate right in
opposition and the ruling Socialist Party.

Euro 2016. Romania and the
host country France will play the opening match at the 2016 European Football
Championship, on June 10th, as the draw was made on Saturday in
Paris. Romania are in Group A, together with Switzerland and first-time
qualifiers Albania. For the first time, 24 nations will contest the tournament,
drawn into six groups of four teams each. The top two in each group plus the
four best-placed sides advance to the round of last 16. Euro 2016 will be held
between the 10th of June and the 10th of July in ten
cities across France. The final will take place on the 10th of July in
Paris. This is Romania’s 5th European tournament, after 1984, 1996,
2000 and 2008. Their best result so far dates from 2000, when they reached the
quarterfinals.

Handball. Romania
face defending world champions Brazil today in the round of last 16 at the
Women’s World Handball Championship in Denmark. On Friday, Romania lost their
final Group D match against Russia, having already been defeated by the
defending Olympic and European champions Norway and by Spain. Romania managed
to qualify for the round of last 16 thanks to their two convincing wins against
Puerto Rico and Kazakhstan. Romania are the only team to have taken part in
every edition of the World Championship since 1957, winning three medals.

Basketball. For the first in
history, Romania will host group games of the 2017 Men’s European Basketball
Championship in the western city of Cluj Napoca, the International Basketball
Federation has announced in Munich. Finland, Israel and Turkey will also host
group games, while the final knockout rounds will take place in Istanbul. This
year’s European Basketball Championship was the first to be hosted by multiple
countries, namely France, Germany, Latvia and Croatia. The European title went
to Spain.

(Translated by: C. Mateescu)

13 December 2015