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February 4, 2025 UPDATE 2

BUDGET In Bucharest, the draft law on the 2025 state budget and social security budget were discussed in Parliament’s specialist committees on Tuesday. On Wednesday, the Senate and the Chamber of Deputies will meet in a plenary session to review the two bills, and the final vote is scheduled for Thursday. The discussions and the vote in Parliament are predictable, as the MPs of the ruling coalition (PSD-PNL-UDMR) have a majority. The draft budget for this year, based on a 2.5% economic growth rate and a budget deficit of 7% of GDP, was passed by the Cabinet on Saturday. ‘It is a restrained budget, based on a prudent forecast. It is a balanced budget, and in addition to investments, we have enough funds to pay salaries and pensions,’ the finance minister Tanczos Barna said.

ECONOMY Romania is ‘a politically and economically stable and safe country,’ oriented towards investment and reform, Prime Minister Marcel Ciolacu said on Tuesday at a meeting with World Bank officials in Bucharest. ‘Our country is a regional pillar of security and economic stability for Europe and for the Strategic Partnership with the US,’ the PM added. According to a news release issued by the government, Bucharest sees the WB as a partner for its goals and continues to rely on the funding and know-how provided by the group. During the meeting, the participants reviewed jointly-developed projects in the fields of healthcare and emergency management. The World Bank officials welcomed the Government’s reform plan and the attention paid to investments, noting that Romania is a strong and resilient partner. I am confident that together we will continue to implement the ongoing projects and expand the portfolio with new investments in energy, green transition, infrastructure and other areas with growth potential, WB executive director Eugene Rhuggenaath said. The institution’s representatives also appreciated the support offered by Romania to the neighboring Republic of Moldova and Ukraine, as well as its contribution to ensuring stability in the region.

MEETING At a meeting on Tuesday with the European Commission executive vice-president in charge of social rights and skills, quality jobs and training, Roxana Mînzatu, President Klaus Iohannis emphasised the critical role of education in fighting disinformation and manipulation, as well as in strengthening the democratic resilience of European societies. According to a news release issued by the Presidency, the topics on the agenda included the social dimension of European Union policies, ways to increase the EU’s global competitiveness, the Union’s strategy with respect to preparedness and resilience in the face of challenges, EU approaches to education and the involvement of the Romanian education system in the European context. In turn, the EC executive vice-president presented the main priorities of the new Commission, including in the areas of employment, social rights and EU-funded educational programs in Romania, as well as preparedness for crisis situations. On Monday and Tuesday in Bucharest Roxana Mînzatu also had talks with PM Marcel Ciolacu, with the Senate Speaker Ilie Bolojan, and with the Chamber of Deputies Speaker, Ciprian Şerban, about key EU and national priorities, with an emphasis on education, the labor market, social cohesion and the management of European funds.

CHURCH The Romanian Orthodox Church (the majority denomination in Romania) Tuesday celebrated 100 years since its promotion to the rank of Patriarchate. According to Patriarch Daniel, this anniversary is not only a celebration of the past, but also a call to gratitude towards our ancestors and a reflection on the role of our Church in the life of the Romanian people. The Romanian Patriarchate was, throughout its 100-year existence, an unquenchable torch of faith and national unity, he said. In turn, president Klaus Iohannis said the centennial of the Romanian Patriarchate is a moment of historic importance for the entire Romanian Orthodox Church and for believers in the country and in Romanian communities abroad. According to experts, Specialists recall that the Romanian Patriarchate was born on February 4, 1925, in a historical context marked by the Great Union of 1918, which brought together all the historical Romanian provinces in a one nation state.

MOLDOVA The European Union Tuesday allocated a new EUR 250 mln financial envelope to support the Republic of Moldova in 2025 in the face of Moscow’s ‘energy blackmail,’ after the halt in Russian gas supplies to the breakaway region of Transnistria, AFP reports. ‘Today we are taking an essential step to (…) help the Republic of Moldova regain control over its energy destiny,’ the EU Enlargement Commissioner Marta Kos, who is on an official visit to Chisinau, posted on a social network. In turn, the European Commission President Ursula von der Leyen denounced Moscow’s use of ‘energy to blackmail people’, promising to offer the former Soviet republic ‘full integration into the EU energy market, decoupling it from Russia ‘. After the war started in neighboring Ukraine, the Republic of Moldova says a ‘hybrid war’ is orchestrated by Russia, including the energy crisis, disinformation and electoral interference. Chisinau is facing a suspension of Gazprom supplies to Transnistria via Ukraine, after a transit agreement between Kiyv and Moscow came to an end. (AMP)

4 February 2025
November 21, 2024 UPDATE

A roundup of local and international news.

RULING – The International Criminal Court issued arrest warrants on Thursday for Israel’s Prime Minister Benjamin Netanyahu, former Defense Minister Yoav Gallant, and the leader of the Palestinian Islamist group Hamas, Al-Masri, known as Mohammad Deif. The Hague-based court’s Pre-Trial Chamber rejected Israeli challenges to its jurisdiction and said there were sufficient grounds to believe that Netanyahu and Gallant committed war crimes and crimes against humanity by approving attacks on civilians in the Gaza Strip. The ICC also issued a warrant Thursday for the arrest of Muhammad Deif, Hamas’ military chief. Israel said in August that it had killed Deif but Hamas has not confirmed his death.

ENERGY – The Bucharest Government on Friday adopted the national energy strategy for the next 10 years, with an extension until 2050. It aims at gradually shifting from coal-based production to natural gas-based production, which is less polluting, and, in the medium and long term, to nuclear energy. Three other economic strategies were also on the Government’s agenda. The first is the Romanian industrialization strategy for the period 2024-2030. This involves the transition of Romanian industry towards clean energy. The second strategy is the one regarding non-energy mineral resources and aims to develop an integrated chain in the mining industry, from research, exploitation and development to processing. The third national strategy is the one for market surveillance. It is about a single market and the need, on the one hand, to guarantee the free movement of products in the European Union and, on the other hand, to make sure that these products meet quality standards.

ELECTION – The first round of the presidential election takes place in Romania on November 24. The second round is scheduled for December 8, and legislative elections are held on December 1. There are 13 candidates in the race for president, 10 supported by parties and 3 independents. There are 14 names on the ballots, but one of the candidates withdrew in favor of another. The authorities opened 950 polling stations for Romanians outside the borders, a record number. They can vote, in the first round of the presidential election, on Friday, Saturday and Sunday.

TRACTORS – Small Romanian farms that own old and polluting tractors will be able to buy new ones by applying to the “Tractors Scrap” program. The budget allocated to the project by the administration of the environmental fund is 500 million lei (the equivalent of about 100 million Euros). The registration of the companies from which farmers can purchase the tractors starts on Friday and can be done until November 28 at the latest. The vouchers acquired by farmers will cover between 65% and 80% of the purchase value, which should not exceed 55,000 Euros.

TOURISM – The autumn edition of the 2024 Romanian Tourism Fair opened on Thursday in Bucharest. Visitors have access to a wide range of promotional packages, exclusive discounts and holiday ideas for all tastes and budgets, the organizers say. More than 100 participating companies offer destinations from all over the world, and discounts on vacation packages during the fair are up to 50%. Among the participants are tour operators from Romania, Bulgaria, Turkey, Greece, Israel, Austria, Hungary, Egypt, Vietnam and Italy.

EC – The right-wing, centrist and social democratic parties in the European Parliament reached, on Wednesday evening, a political agreement to approve the new European Commission makeup. The Romanian Roxana Mînzatu will thus become Executive Vice-president for People, Skills and Preparedness in the European Commission led by Ursula von der Leyen. The European Parliament will give its final vote on the new EC membership on November 27, in a plenary session in Strasbourg.

21 November 2024
November 6, 2024

US ELECTION The president of Romania Klaus Iohannis and PM Marcel Ciolacu today congratulated Donald Trump on his victory in the US presidential elections. “Romania is a strong and committed strategic ally of the USA. Through our joint efforts, we will bring peace and prosperity to our countries and beyond, defending our common interests,” the Romanian president wrote on a social network. The Republican Donald Trump claimed an “unprecedented mandate,” in a speech held at West Palm Beach, Florida, after Fox News called the election for Trump, the only US news outlet to do this so far. Although technically the vote count is not yet over, Donald Trump thanked the Americans for electing him. “We made history,” he said, and promised to help the country “heal.” Donald Trump’s running mate, JD Vance, said in his turn that “we have witnessed the greatest political comeback in US history.” His opponent, the Democrat Kamala Harris, has not yet addressed her supporters.

SENATE The Republicans appear to have have gained control of the US Senate, previously held by the Democrats, with a majority of at least 51 seats out of 100, according to projections. The US Senate has 100 seats (2 for each US state) and 34 members are replaced following the vote organised concurrently with the November 5 presidential election. In the House of Representatives, neither party seems to have a decisive advantage, as the vote count in the 50 states continues today. The control of the two chambers of the US Congress is a major stake, as the room for maneuver of the country’s president depends largely on the laws they are able to get passed in the Senate and the House of Representatives. Both vote on federal laws, but the Senate also has important exclusive powers, especially in the appointment or removal of key government members or in the confirmation of federal magistrates.

EUROPEAN COMMISSION The Social Democrat Roxana Mînzatu, Romania’s nomination for vice-president of the new European Commission, received a positive review from the specialist committees of the Romanian parliament. Next week, she will also be heard in the committees of the European Parliament. In addition to the position of vice-president, the Romanian commissioner will also serve as Commissioner for People, Skills and Preparedness.

INVESTMENTS PM Marcel Ciolacu had a meeting with a delegation of Japanese investors on Tuesday in Bucharest. They expressed their interest in strengthening financial support for Romania in transport infrastructure, energy, digitisation and high techn projects. Previously, at a bilateral Energy Forum also held in the Romanian capital city, the energy ministry and the Japanese company Itochu Corporation signed a Memorandum of Understanding on a hydropower plant project in Cluj county (northwest Romania).

VISIT The European Commissioner for Agriculture, Janusz Wojciechowski, is on an official visit to Bucharest, where he takes part today in the national conference of the Romanian Farmers’ Club. According to a press release issued by the European Commission, the commissioner is a special guest in the interactive EU-Romania Dialogue on the Future of Agriculture, where he talks about the prospects of European farming in the context of the current environmental and geo-political challenges and of the EU enlargement. At the same time, the European official is to address a plenary session on “Vision and action for the sustainable transformation of agriculture”. Among other things, Janusz Wojciechowski will thank Romanian farmers for their vital contribution to food security, in Europe and beyond.

FLOODS Another person on the list of Romanian nationals missing following the recent floods in Spain has been found dead. The Romanian foreign ministry announced that, according to the information sent by the Spanish authorities, up to this moment 2 Romanian citizens are dead and 7 are still missing. The Romanian embassy in Madrid and the consular office in Castellón de la Plana are checking public information regarding the death of some Romanian citizens, but no official confirmations have been received so far. Meanwhile, the Spanish government has declared a state of natural disaster in the affected areas and has pledged to cover 100% of the urgent expenses of the affected municipalities. A first emergency plan worth over EUR 10 billion was adopted. (AMP)

6 November 2024
October 3, 2024

DEFICIT The Romanian minister for investments and European projects, Adrian Câciu, said a 7-year plan to reduce the budget deficit would be presented by the October 15 deadline set by the EC. According to Câciu, the plan is accompanied by reforms included in the National Recovery and Resilience Plan. The measures mainly consist in cutting unnecessary expenditure by public institutions and improved collection of government revenues.

EUROPEAN COMMISSION The commissioners nominated by member states and by the EC president Ursula von der Leyen will be interviewed by the European Parliament’s specialized standing committees next month. According to France Presse, the new College of Commissioners might therefore take office in early December. Romania’s representative Roxana Mînzatu was nominated for executive vice-president for skills, education and culture, quality jobs and social rights.

YOUTH European youth born in 2006, including in Romania, may enroll in the 2024 DiscoverEU programme, which provides free travel across the Union. A dedicated European Commission webpage is available for young people to enroll in order to win one of the 35,000 free travel permits and discount accommodation and meal cards. Each permit allows for one trip between March 2025 and May 2026. Winners may choose certain destinations in Europe, including ones on the DiscoverEU cultural route that connects EU capital cities, UNESCO sites and European heritage sites. Applications may be submitted until October 16. More than 300,000 youth have benefitted from this programme since its launch in 2018.

WB The country partnership framework between the World Bank and Romania for 2025-2029 was launched in Bucharest. PM Marcel Ciolacu says that in the next 3 years the estimated funding for Romania from the WB group will be over USD 6 bln, in favourable financial terms. The money is intended to help bridge the gap between the more developed and integrated urban communities and the poorer and more isolated rural environment. A USD 500 mln loan agreement has also been signed, for the funding of disaster risk management policies.

FOOTBALL Romania’s football champions, FCSB, play tonight away from home against PAOK Thessaloniki in the Europa League group stage. In the first round, the Greek champions coached by the Romanian Răzvan Lucescu were defeated by Galatasaray Istanbul, 3-1 in Turkey, while FCSB won against RFS (Latvia) 4-1 in Bucharest. (AMP)

3 October 2024
September 26, 2024 UPDATE

FLOODS The Danube flood tide is expected to reach Romania on October 2-3, when the river flow rate is expected to reach 9,500 cubic metres per second, the manager of the Romanian Waters National Agency, Sorin Lucaci, announced. The Emergency Directorate announced measures have already been prepared, and will be adjusted to the new circumstances triggered by the heavy rainfalls announced for this weekend. The Emergency Directorate chief, Raed Arafat, said at the end of today’s Cabinet meeting that citizens will be kept informed, including through the Ro-Alert emergency service, and that local authorities have been instructed to identify vulnerable citizens and to plan for their timely evacuation. The Danube has so far caused major floods in the countries it transits, as Storm Ashley has hit Europe, bringing low temperatures, strong wind and massive rainfalls.

UN Insecure as today’s world may be, the answer to our problems will always be more cooperation and more solidarity, said Romania’s president Klaus Iohannis in his address at the UN General Assembly on Wednesday. He also highlighted Romania’s efforts and contribution to solving current global challenges, from security crises such as the war in Ukraine and the Middle East conflict to the major challenges facing the world. Iohannis pointed out that security is not a regional, but a global matter, and that the war waged by Russia in Ukraine has affected nations and people around the globe.

ECONOMY The European Bank for Reconstruction and Development significantly revised downwards its economic growth forecast for Romania this year, as the lower outsourcing demand has hit the IT sector, according to a report released on Thursday. The EBRD expects Romania’s GDP to grow by 1.4% this year, down from its previous estimate of 3.2% in May. For next year, the EBRD expects a 2.6% growth rate, down from the 3.4% figure proposed in May. The increase in the minimum wage in Romania and Bulgaria has stimulated demand but led to a growth in the trade deficit and added to inflationist pressure, the report also says. The EBRD mentions that the latest forecasts of the Tax Council in Bucharest indicate an increase in the budget deficit to around 8% of GDP this year. The International Monetary Fund also revised downwards its forecast concerning Romania’s economic growth this year, from 3.8% last October to 2.8% in its World Economic Outlook released in April this year. Last week, the National Commission for Strategy and Prognosis revised its estimates concerning the GDP growth down to 2.8% from 3.4% previously.

EU The European Commission has initiated 2 infringement procedures against Romania, and requests notification on the progress in implementing 2 directives. The infringement package targets 26 member states, with Denmark as the exception. The first procedure against Romania concerns its failing to fully transpose into national law the provisions of the revised Renewable Energy Directive related to the simplification and acceleration of permitting procedures. Romania and the other 25 notified states should have transposed the directive by July 1, 2024. The second notification, received by a total 17 member states, has to do with failing to notify their national measures transposing the Accounting Directive, the Transparency Directive and the Audit Directive. The deadline was July 6, 2024. In both cases, Romania has 2 months to fully transpose the directives and to notify the European Commission.

IMMIGRATION Romania is becoming more and more attractive to foreign workers, according to a survey conducted by the Foundation for the Development of Civil Society. The home countries of most foreign workers in Romania include Nepal, Turkey, Italy, Moldova, Sri Lanka and India. They work in constructions, the hospitality industry and retail, and according to the Immigration Inspectorate General 80% of them get unskilled jobs. Integrating foreign workers is not easy, but it is important for Romania’s economic development, says the head of the EU representative office in Romania, Ramona Chiriac. She said foreign workers are facing language barriers and abuse by employers. In this respect, several ministries are working together on legislation to help immigrants, the PM’s office has announced. In 2023, the number of foreign workers employed in Romania was 200,000.

BUSINESS Members of the Romanian business community complain that, in spite of their investments in dual education, many of the youth completing such programmes leave the country. The deputy chair of the Romanian Association of Small and Mid-sized Traders, Feliciu Paraschiv, says there are no guarantees that those who provide financial support to a student for 2-3 years will eventually benefit from the knowledge they have gained, and that Romanian entrepreneurs end up training the future employees of more developed countries. Paraschiv believes education institutions should be more connected to the actual demand in the economy and highlighted the need for a change in the public perception of certain jobs.

CITIES The city of Braşov, in central Romania, is viewed as the most attractive city to live in, according to an urban attractiveness survey conducted by the Institute for Visionary Cities. Braşov is followed by Cluj-Napoca and Oradea, in the north-west, Sibiu, in the centre, Timişoara (west), Constanţa (south-east), the capital city Bucharest, Iaşi (north-east), Alba Iulia (centre), and Piatra Neamţ (north-east). The survey looks at moving plans and the overall perception of the quality of life. The authors highlighted that leisure opportunities have proved to be the most important element for interviewees, overshadowing traditional factors such as well-paying jobs and infrastructure. The latter still ranks second, followed by a city’s capacity to encourage creativity and innovation.

TENNIS The Romanian tennis player Irina Begu Thursday defeated China’s Ye-Xin Ma, 1-6, 6-4, 6-1, in the WTA 1000 tournament in Beijing. Begu (34, ranked 103^rd WTA) is next to take on seed no. 17, Mirra Andreeva (Russia). In the same competition, another Romanian player, Jaqueline Christian, defeated Ana Bondar (Hungary), 1-6, 6-7, whereas Gabriela Ruse lost to Sijia Wei (China), 4-6, 6-7. (AMP)

26 September 2024
September 17, 2024

EUROPEAN COMMISSION The EC president Ursula von der Leyen today unveiled the new college of commissioners. Romania’s nominee for one of the 27 European Commissioner posts, the former minister for EU funding and incumbent MEP Roxana Mînzatu, was appointed Executive Vice-President for People, Skills and Preparedness and will also be the new Commissioner for Skills, Education, Quality Jobs and Social Rights. The team proposed by Ursula von der Leyen will next be interviewed by the European Parliament. Given the length of the procedures, the new commission might begin their term in office later than scheduled, possibly as late as December.

FLOODS The government of Romania approved direct financial aid for the victims of the recent floods in the east of the country, which left 7 people dead and nearly 6,500 homes damaged. Hydrologists warn that the risk of flash floods is not over, and have issued code red, orange and yellow alerts for the counties already affected by heavy rainfalls and floods. People are still accommodated in the temporary sites arranged by the local authorities, and interior ministry personnel are helped by emergency inspectorate staff from other counties, who have brought over intervention vehicles and large capacity pumps to take out the water and mud from the flooded houses. Meanwhile, water and food supplies are being distributed to the victims, both from the state reserve and from private citizens and companies that have donated clothes, footwear, blankets and mattresses. The Red Cross also dispatched trucks with water and food to the area.

LAW The Constitutional Court of Romania is to review today, after several postponements, a notification lodged by the High Court of Cassation and Justice with respect to the so-called Fugitives Act. The law endorsed by the Chamber of Deputies in November 2023 stipulates that citizens subject to a final court sentence who fail to turn themselves in within 7 days to be incarcerated are to be declared fugitives and receive a further 6 month to 3 year sentence. The supreme court believes the law comes against the right to fair trial and individual freedom. Sorin Oprescu, a former mayor of Bucharest, and Alina Bica, a former chief of the Directorate Investigating Organised Crime and Terrorism Offences, are some of the high-profile officials who managed to leave the country in order to escape a prison sentence. Italy and Greece are the countries preferred by the fugitives.

CLIMATE Romania plans to be carbon neutral by 2045, as opposed to its previous target, 2050, according to a new version of the National Integrated Plan on Energy and Climate Change. Bucharest also intends to cover 38% of the country’s total energy demand from renewable sources by 2030. The energy ministry announced on Tuesday additional policies and measures to increase the share of renewable energy, to reduce greenhouse gas emissions substantially and to implement innovating solutions in all economic sectors. The revised plan includes measures to cut emissions in essential sectors such as energy, transport, housing and industry, and aims to implement advanced technologies such as the use of renewable hydrogen.

ENESCU The 19^th edition of the “George Enescu” International Classical Music Competition takes place in Bucharest until September 27, under the high patronage of the Romanian Presidency. Enrolled in this year’s competition are a record 667 musicians aged 13 to 35. The “George Enescu” International Competition, initiated in 1958, is one of the most important events of this kind in the world, providing a platform for rising musicians to prove their skills. Over the years, the competition has consolidated Romania’s standing in the global cultural arena, and is the only competition in the country affiliated to the World Federation of International Music Competitions. The Romanian Radio Broadcasting Corporation is one of the co-producers of the event.

FESTIVAL The 12^th edition of Bucharest Music Film Festival continues until September 22^nd. The event has been redesigned to include concerts in a variety of music genres, from classical to jazz, film music and pop fusion, and it brings together hundreds of celebrated artists and orchestras. The festival is organised by the Bucharest City Hall’s cultural centre ARCUB, and is part of the Days of Bucharest series that marks 565 years since Bucharest was first mentioned in official documents. (AMP)

17 September 2024
September 10, 2024

EC – Romania could receive, in the future European Commission makeup, the portfolio for social rights and housing, a position also with competences related to salaries, pensions and benefits, according to Romanian government sources. According to the same sources, Prime Minister Marcel Ciolacu had a discussion with the European Commission President, Ursula von der Leyen, in which MEP Roxana Mânzatu also participated, the latter being Romania’s proposal for the position of European Commissioner. Ursula von der Leyen will announce the allocation of portfolios in the future European Commission on Wednesday.

SENATE – The Romanian Senate starts debating an emergency order that sets a three-day deadline for toxicology test results, following the testing of drivers in traffic. If the results of the anti-doping tests, carried out only by forensic medicine institutions, will not be ready in time, the drivers will get their driving licenses back. Also in the Senate, the draft law on the introduction of the European minimum wage in Romania is being debated by the expert committees. The normative act establishes a new mechanism by which the minimum salary will be updated annually, so that it accounts for at least half of the average salary. On the other hand, deputies from the labor committee have on their agenda this week several legislative projects with measures for people with disabilities, which concern facilitating their access to public transportation or to polling stations.

CARMAKING – At the Dacia-Renault factories in Pitesti (southern Romania) a program of voluntary departures has begun, with employees being compensated with substantial sums of money, proportional to their seniority in the unit. The management of the factory hopes to thus reduce the staff by several hundred employees, especially from the sections that will be reorganized following some automation processes. The premiums are 22,000 lei for seniorities of up to two years and can reach 150,000 lei for those with more than 16 years. During the campaign of voluntary departures two years ago, approximately 500 employees benefited from these financial rights.

CHISINAU – 16 national theaters from Romania and the Republic of Moldova have met starting today until September 22, in Chisinau, where the 9th edition of the “Reunion of Romanian National Theaters” is taking place. During this period, the public in the Moldovan capital can take part in 46 cultural events, indoor and outdoor performances, eight radio show auditions and six premieres. There will also be book launches, meetings with people of culture and personalities from the theater world. The event in Chisinau takes place under the slogan “European Connections” and benefits from the high patronage of the presidents of Romania and the Republic of Moldova, Klaus Iohannis and Maia Sandu, respectively. The guest of honor of the festival is the “Ivan Franko” National Drama Theater from Kyiv.

FOOTBALL – The Romanian national football team defeated the Lithuanian national squad, 3-1, on Monday evening, in Bucharest, in Group C2 of the Nations League. Winners also in Kosovo, on Friday ( 3-nil), the Romanians are group leaders, with 6 points. Romania will play the following matches next month, on October 12 against Cyprus and on October 15 against Lithuania, both away. The 2024/25 Nations League will also have a direct effect on the European qualifiers for the 2026 World Cup. The best four group winners from the Nations League, excluding the teams that finished in the top two places in the qualifying groups, will participate in the play-off matches for the 2026 World Championship, along with all 12 second place teams from the classic preliminaries.

SCHOOL– In Romania, the new school year comes with a series of important provisions. Students from the 8th and 12th grades will finish school earlier, and the exam calendar, both for the National Assessment and for the Baccalaureate, has been changed. For those who will not take the exams, the courses will last 36 weeks and will end on June 20, 2025. Also from this year, students will receive a grade at the end of each module, access to education institutions will be prohibited with the mobile phone and special rooms will be created for students who disturb classes. In the new school year, the national plan to combat school violence is applied in all education units in Romania.

COMPETITION – The HBFS Robotics team of the Politehnica Bucharest National University of Science and Technology returned to the country with two gold, two silver and one bronze medals from the biggest robotics championship in the world, “RobotChallenge” 2024, held in Beijing, China. More than 5,000 participants from 31 countries took part in the competition. Romania ranked fifth in the general ranking of countries in terms of number of medals obtained, leaving behind numerous states with tradition and influence in the field of robotics.

10 September 2024
August 19, 2024

HEAT WAVE A persistent heat wave is reported in Romania, with code red, orange and yellow alerts issued in most regions of the country. The temperature-humidity index is above 80%, while highs range between 29 and 39 degrees Celsius. In Bucharest, the temperature is expected to reach 37 degrees Celsius, after 31 degrees Celsius reported at noon.

EU PM Marcel Ciolacu makes a visit to Brussels on Wednesday and Thursday, to talk with the head of the European Commission, Ursula von der Leyen, about the seats Romania will hold in the future Commission. According to governmental sources, Bucharest may appoint the new commissioner for enlargement, who will be nominated from among the Social Democratic MEPs. Meanwhile, also this week, the government is scheduled to discuss the national strategy for the defence industry. Its goals are to ensure the development, revamping and upgrading of defence facilities, and to promote research, development and innovation by opening excellence centres and by attracting foreign and Romanian investors.

CAR SCRAPPING A new session of the “Rabla Plus” national car scrapping programme, aimed at facilitating the purchase of electric and hybrid vehicles by individuals, public institutions and local administration units, has been launched today. According to the Environment Fund Authority, applicants receive a voucher for the purchase of a new vehicle, in return for scrapping 1 or 2 vehicles older than 6 years. The voucher for the purchase of an EV is worth approx. EUR 5,000, and the one for a hybrid car or electric motorcycle is around EUR 2,600, irrespective of the number of cars scrapped. For public institutions, the voucher amounts to EUR 24,000.

PENSIONS Millions of Romanian pensioners will receive pension benefits based on a new calculation formula as of September 1. The authorities promise this new system would remove all inequities in the pension system. According to official data, after recalculation the average public pension benefits will increase from around EUR 460 to around EUR 540. The finance minister, Marcel Boloș, says that in the forthcoming period the pressure on the public deficit will increase. Under the new regulations, in order to receive public pension benefits in Romania the minimum payment contribution period will be 15 years, with the retirement age planned to reach 65 for both men and women in 2035.

BACCALAUREATE The autumn session of the baccalaureate exam is under way in Romania. After the Romanian language and literature test on Monday, written tests will be held in mathematics and history in the next few days, followed by tests in the subjects chosen by the applicants. The final results will be announced on August 30. Over 33,000 applicants have enrolled for the exam this autumn, following an over 78% pass rate at the June session.

UKRAINE Ukraine continues its attacks in Russia’s Kursk region, where it destroyed a second strategic bridge on Sunday. Military analysts quoted by Reuters say there are 3 strategic bridges facilitating military supply for the Russian forces in Kursk. Kyiv claims to have seized some 1,150 square km and over 80 settlements so far. This is the 14^th day of the Ukrainian strike, the first by a foreign army in Russia since WWII, with Moscow seemingly unable to initiate large-scale defence operations. The Ukrainian president, Volodymyr Zelenskyy, reiterated that Kyiv’s goal is to create a buffer zone to protect Ukraine’s border regions from Russian bombings. Meanwhile, Belarus announced the mobilisation of one-third of its army at the border, in response to the Ukrainian operations. At the start of the offensive in Kursk, Belarus, Russia’s closest ally and the country that allowed Russia to use its territory to attack Ukraine, claimed that Ukrainian military drones had violated its air space. (AMP)

19 August 2024
July 24, 2024 UPDATE

Diplomacy – Romania is a credible, involved and respected regional, European and international actor, a provider of security and stability, said the Romanian President Klaus Iohannis, in the opening of the Annual Meeting of Romanian Diplomacy, which takes place in Bucharest. He pleaded for the consolidation of the role and influence in the European Union and NATO and for the deepening of the strategic partnership with the US. About the partnership with the US, Iohannis said that it is an essential pillar of Romania’s foreign policy, that it has become more robust and acquired more substance. Regarding the relationship with the neighboring Republic of Moldova, Romania’s President showed that this represented a strategic priority, and bilateral cooperation reached “the highest level in history”. Also, Iohannis stated, Bucharest also promoted a constructive relationship with the Kyiv administration. Last but not least, the Romanian president stated that the accession to the Schengen Area also with the land borders, as well as the accession to the Organization for Economic Cooperation and Development remain priority objectives of the Romanian diplomacy.

Odobescu – The Romanian Foreign Minister, Luminiţa Odobescu, reiterated, on Wednesday, that Romania remains a firm supporter of the Republic of Moldova and Ukraine at the European level and emphasized that the two countries must continue the reforms necessary for European integration. She condemned the war waged by Russia in Ukraine and stated that the Republic of Moldova remains the state most affected by this war after Ukraine. ‘I reiterate that Romania firmly and steadfastly supports the independence, sovereignty and territorial integrity of Ukraine and the Republic of Moldova within their internationally recognized borders’, Odobescu also said.

Venice Commission – Romania should complete the process initiated in view of taking into account the recommendations of the Venice Commission on the justice laws and of accelerating its efforts to ensure effective public consultations before the adoption of the legislation, the European Commission recommends in the annual report on the rule of law, published on Wednesday. Although some progress has been made in this area, the EC recommends Bucharest to continue its efforts to ensure adequate human resources for the justice system, taking into account European standards. Another recommendation is to take measures to ensure the effective investigation and prosecution of crimes in the judicial system, including acts of corruption. The EC recognizes, however, that Romania has made some progress in this regard. The Romanian Justice Minister, Alina Gorghiu, states that the report on the rule of law in Romania is the best so far. The main conclusion of the fifth edition of the Commission’s annual report on the rule of law in member countries is that they and the Union as a whole are much better prepared to detect, prevent and address emerging challenges, which contributes to the resilience of European democracies and supports mutual trust in the EU as well as the smooth functioning of the single market.

Alert – The General Inspectorate for Emergency Situations issued, last night, a RO-ALERT message for the north of Tulcea county (south-east), informing the population about the possibility of objects falling from the sky on the territory near the border with Ukraine. The message was issued after the structures with the role of defense and border surveillance noticed several Russian drones, involved in attacks on the Ukrainian infrastructure, which were approaching the Romanian border. The Defense Ministry reported that, currently, its teams are continuing the search for possible remains of drones that have fallen on the national territory. The same source stated that two F-16 aircraft of the Romanian Air Force flew in the area to monitor the situation.

Meeting – The Deputy Prime Minister of Luxembourg Xavier Bettel on Wednesday expressed his conviction, in a joint press statement held together with the Romanian Foreign Minister, Luminiţa Odobescu, on the sidelines of the Annual Meeting of Romanian Diplomacy, that Romania’s place is in Schengen and that “controls must stop” at the border. Xavier Bettel mentioned, on the other hand, that he visited the Cincu military base (center), after a similar visit in September, to show the “support and solidarity” of the government towards the young people of Luxembourg. Minister Luminiţa Odobescu said, in turn, that Romania wants more substantial cooperation with the Grand Duchy of Luxembourg, including in the field of the defense industry. She thanked for the presence of troops from Luxembourg on Romanian territory as part of strengthening NATO’s deterrence and defense posture on the Eastern Flank and the Black Sea. (LS)

24 July 2024
State aid for companies affected by the war in Ukraine

The European Commission has approved the reintroduction of a state aid scheme in Romania of approximately 2.5 billion Euros (12.5 billion RON) to support companies in the context of Russia’s war against Ukraine. The aid consists of loans as well as of non-reimbursable funds that will be granted to Romanian companies until June 30. The amount of support is divided into categories. Thus, companies in the agricultural field can receive up to 280,000 Euros, companies in the fishing and aquaculture field, up to 335,000 Euros, and companies operating in the rest of the sectors can benefit from aid worth up to 2.25 million Euros. According to the Commission’s analysis, the request made by Romania complies with the conditions provided for in the crisis and transition framework. The Romanian state requested such an agreement for the first time on September 9, 2022, which was approved in January 2023 for the entire year. Following the expiry of this deadline, the Commission once again approved the reintroduction of the state aid scheme to ensure sufficient liquidities for companies on the Romanian market.

The measure is seen as necessary and proportionate to remedy the irregularities in the national economy. Moreover, the Romanian Prime Minister Marcel Ciolacu had announced, a few days ago, that the government would extend this year the IMM INVEST PLUS state aid scheme, to overcome the economic difficulties created by Russia’s invasion of Ukraine. This is a government lending program for working capital and investments aimed at SMEs and large companies in Romania. Approximately 11,500 companies can receive such funds. The program was initiated to ensure, until June 30, access to financing by companies that do not have the necessary sums for investment projects and for the continuation of their activity, the Finance Ministry announced. We want to support vital sectors such as agriculture, constructions and production and to make sure that we offer innovative Romanian companies the opportunity to reach their potential, said the finance minister, Marcel Boloş.

The EU imposed unprecedented sanctions on Moscow and adopted a series of support programs and allowed member states to provide special subsidies to mitigate the economic and commercial effects of the Russian military invasion of Ukraine in February 2022. Europe was subsequently faced with an explosion of prices and turbulence in the financial markets. The war has had enormous economic costs so far. It was not just the economies of the two countries in conflict that suffered, but the entire planet. Already rated as one of the costliest wars in human history, the price of this conflict has so far been estimated at over two and a half trillion dollars, that is over two thousand five hundred billion. Comparatively, this sum is equivalent to Romania’s GDP for seven and a half years. And it represents, in just two years, more than half the estimated costs of World War II, which lasted six years and was the most devastating conflict in history. (LS)

9 April 2024
Romania’s economy under scrutiny by the European Commission

Romania is among the six states for which the European Commission published in-depth reviews on Monday, the aim being to assess whether the respective states are facing macroeconomic imbalances in the context of the European Semester. The other states are Cyprus, the Netherlands, Slovakia, Spain and Sweden, which are part of the group of 12 member states selected in the Alert Mechanism Report 2024. Based on a set of indicators, the report was adopted last November in the framework of the autumn package of the European Semester – the EU framework for the coordination and supervision of economic and social policies. The other six in-depth reports, for France, Germany, Greece, Hungary, Italy and Portugal, will be published in the coming weeks.

As for Romania, the in-depth review shows that it continues to face vulnerabilities related to the accounts of public finances and the external balance. “Large public and current account deficits, as well as the high inflation rate, which are all above pre-pandemic levels, make the economy potentially vulnerable to shocks. There was some progress in narrowing the current account deficit in 2023, mainly on the back of monetary policy tightening and weaker private consumption. However, if the policies remain unchanged, the risks related to the external position are to remain high in the coming years, the European Commission warned. The document states that pursuing a credible fiscal consolidation strategy is the key priority of the policies aimed at mitigating the risks to the stability of the economy. This strategy will require the full implementation of the fiscal-structural reforms included in the National Recovery and Resilience Plan, especially those aimed at a structural increase in government revenues and a much stricter budget execution than in recent years.

The Commission believes that Romania’s macroeconomic vulnerabilities have expanded following the pandemic, in a context in which an extremely solid growth was recorded. The strong post-pandemic recovery in the economic activity, supported by the easing of the monetary policy and financial conditions, as well as the supportive fiscal stance led to a GDP growth of over 4% in both 2021 and 2022, higher than Romania’s potential growth rate. Inflation averaged 12% in 2022 and the current account deficit continued to grow to over 9% of the GDP, reflecting the energy price shock. Despite the extremely solid economic expansion and rising government revenues, the public deficit remained high at 6.3% of the GDP in 2022, down only slightly from 7.2% in 2021, following the rapid advance of government spending. So far, the review also shows, Romania has not faced difficulties in covering its financing needs, and its foreign exchange reserves seem generally adequate, covering almost 5 months of imports and more than 100% of the short- term external debt at the end of 2023. (LS)

26 March 2024
Talks on the NRRP

The Bucharest government amended, on Thursday, the multi-year budget related to the reforms and investments assumed through the National Recovery and Resilience Plan. Also, the Executive took a series of measures for the faster spending of funds from the NRRP, but also for the reorganization of the National Fiscal Administration Agency, in order to improve its ability to collect money to the state budget. The government also adopted a normative act that aims for the European funds from the NRRP to stay as little as possible in the accounts of the Romanian state and to reach the investment sites in the shortest possible time. The Minister of European Projects, Adrian Câciu explains:

“We mainly approve the distribution of the sums due to Romania, under the REPowerEU chapter, and, here, it is very important that 1.2 billion euros will be made available to the households of Romanian citizens this year through vouchers for energy efficiency and vouchers for photovoltaic panels and batteries. And in May we will start the procedure for distributing these support programs for the population.”

According to the minister, also through this redistribution of amounts, agriculture will also have access, for the first time, to the money from the NRRP. As for the information appearing in the public space regarding the blocking of payment request number 3 from the NRRP by the European Commission, due to the non-fulfillment of certain milestones, the minister announced that it is not blocked. The minister has stated that he is having talks with the representatives of the European Commission on the third request for payment within the NRRP, in the amount of 2.7 billion euros, and he expects the successful completion of the process and the entry of the money in the country’s budget.

‘There is nothing blocked. The relationship with the European Commission works very well and I want us to find solutions to carry out all the reforms’, Prime Minister Marcel Ciolacu also said. In addition, the head of the Government has announced that the reform coordinating ministers will meet, next week, with Celine Gauer, responsible for managing the NRRP at the European level, to analyze the important milestones in payment request number 3. The opposition in Bucharest has announced, recently, that Brussels officials would have objections in particular to the appointments made to the management of energy companies and to the agency that is to monitor state companies.

Out of five payment requests that Romania could submit from the NRRP, according to the calendar agreed with the European Commission, the PSD-PNL government submitted only three and collected the money for only two. Payment request number 3, the last one submitted, also has problems, just like the previous ones, because the benchmarks were not met according to the commitments assumed’, said Cristian Ghinea, coordinator of the Public Policy Department of Save Romania Union. We recall that Romania benefits from a total allocation of around 30 billion euros for the implementation of the NRRP, in the form of grants and loans, which it should use until the end of 2026.(MI)

15 March 2024
March 7, 2024

CONGRESS The congress of the European People’s Party continues in Bucharest today, when the party’s nominee for president of the European Commission is to be chosen. On Tuesday the party’s Political Assembly validated Ursula von der Leyen’s candidacy for a new term in office. On Thursday, president Klaus Iohannis and other EU heads of state and government are scheduled to address the Congress. Over 2,000 delegates from more than 40 countries, including the president of the European Commission, the president of the European Parliament, presidents and prime ministers, party presidents and European commissioners in the EPP have convened in Bucharest for the congress. The main goals of the event are the selection of the EPP president and decisions on the party’s main policy documents and election platforms. The meeting is hosted by the National Liberal Party, a member of the ruling coalition in Romania, jointly with the EPP. Bucharest last hosted an EPP congress in October 2012.

MEETING The president of Romania Klaus Iohannis has a meeting scheduled today with Austria’s federal chancellor, Karl Nehammer, the Romanian Presidency announced. According to Agerpres, the two officials are expected to discuss Romania’s full Schengen accession. The European People’s Party unanimously adopted, during its congress in Bucharest on Wednesday, a manifesto demanding Romania’s accession to the Schengen area as soon as possible, after the Austrian delegation of the People’s Party, in power, renounced voting against. According to the manifesto, “we need full accession to Schengen for Bulgaria and Romania, by lifting as soon as possible not only the air and maritime checks, but also the checks at the land borders”.

ELECTIONS The government of Romania is to analyse today a draft emergency order on merging the local elections and the elections for the European Parliament on June 9. According to an INSCOP poll commissioned by News.ro, the Social Democratic Party and the National Liberal Party, in power in Romania and running on joint lists of candidates, would get 43.7% of the votes. Next in the poll come the nationalist party AUR with little over 20%, and the United Right Alliance, also in Opposition, with 13.7%. As for the local elections, the poll indicates the Social Democrats would get 30.6% of the county and local council seats, the Liberals 25.6%, AUR 17.4%, and the United Right Alliance 9.8%. With respect to merging the two elections, the poll suggests over 57% of citizens are in favour of the idea. More than one-third of the interviewees are in favour of joint candidate lists for the Social Democrats and the Liberals in the European elections and separate lists for the local elections, while 51.3% disagree with the decision. Romania’s presidential elections are scheduled in September, and the general elections are due in December.

MOLDOVA France and the Republic of Moldova are set to sign economic and defence cooperation agreements today. The documents will be signed in Paris by president Emmanuel Macron and president Maia Sandu. According to Radio Romania’s correspondent in Paris, Macron and the French foreign ministry have repeatedly voiced concern with Russia’s threats against Ukraine’s neighbour, Moldova. A spokesperson for the French foreign ministry, Christophe Lemoine, said Moldova was facing “increasingly aggressive attempts at destabilization” by Russia. This agreement is aimed at supporting the modernization of Moldova’s armed forces, and our support will not be limited to defence. We have mobilized the international community by creating the support platform co-chaired by France, Germany and Romania, launched shortly after the start of Russia’s aggression in Ukraine, when Moldova was highly vulnerable to the aftermath of the war, the French official also said.

MINES A sea dredger, a PUMA Naval helicopter and a team of combat divers with the Romanian Naval Forces specialising in the clearing and disposal of explosives are today inspecting the southern part of the Romanian sea coast, to detect a suspected naval mine, the Romanian Defence Ministry announced. A floating item was spotted in the region by the Coast Guard, which requested the intervention of the Naval Forces, in line with relevant national procedures. According to the defence ministry, since the start of Russia’s military aggression against Ukraine, 95 naval mines have been destroyed in the Black Sea, and this one is the 6^th mine disposal mission during this period. (AMP)

7 March 2024
February 13, 2024 UPDATE

VISIT The PM
of Romania, Marcel Ciolacu, will be on an official visit to Rome on February
14-15, and will take part in the 3rd joint government meeting of Romania and
Italy, held 13 years after the previous inter-governmental summit. PM Ciolacu
will have meetings with the PM of Italy, Georgia Meloni, and will attend a
meeting of the 2 official delegations and the signing of bilateral documents. His
agenda also includes talks with the Mayor of Rome, Roberto Gualtieri, and a
meeting with the Romanian community in Italy. Italy is one of Romania’s most
important economic partners, and the Economic Forum focusing on areas such as IT&C,
energy, the processing industry, infrastructure and the agri-food industry is
another excellent opportunity to improve our economic cooperation, PM Marcel
Ciolacu said. Marcel Ciolacu will also be received by His Holiness Pope Francis
at the Vatican.

INTERESTS The
National Bank of Romania Tuesday decided to keep the monetary policy interest
rate at 7% per year, the institution announced. The central bank will also keep
the credit facility interest rate at 8% per year and the deposit facility
interest rate at 6% per year, and also maintain the current levels of the
compulsory minimum reserve rates for banks’ national and foreign currency
liabilities. The key interest rate has not been changed since last January, when
the National Bank decided to raise it from 6.75% to 7% per year. A balanced mix
of macroeconomic policies and structural reforms, including the use of EU
funding to encourage the country’s growth potential in the long run, are vital
to maintaining macroeconomic stability and to strengthening the Romanian
economy’s capacity to withstand negative developments, the institution said. An
updated forecast by the central bank reconfirms the prospects of an increase of
the annual inflation rate in the first months of this year, following the
increase of existing indirect taxes and the introduction of new ones, and of a
subsequent downward trend, at a slower pace than in 2023 and than originally
expected.

CYBERSECURITY On Tuesday 4 more hospitals in
Bucharest and elsewhere in the country were added to the list of 21 public and
private healthcare units affected since last weekend by a large-scale cyber
security incident, the National Cyber Security Directorate (DNSC) announced. A crypto
currency ransom demand has been received, amounting to approx. EUR 157,000, but
the attackers only provided an email address, without disclosing the name of
the group claiming the attack. Both the DNSC and other cyber security
authorities involved urge the victims not to contact the perpetrators and not
to pay the ransom. The healthcare minister, Alexandru Rafila, has told Radio
Romania that some of the hospitals have managed to fix the problems, and the
authorities will come up with a new technical standard designed to prevent such
actions. Other public institutions in Romania have been targeted by cyber-attacks
in the past.

FARMERS On
Tuesday the European Commission officially endorsed a regulation which grants a
partial exemption for farmers from the rule binding them to keep 4% of their
arable land fallow. In exchange, they are required to grow nitrogen fixing
crops such as lentils or peas. The measure comes after large-scale farmer
protests across the EU, including in Romania. Member States who wish to apply
the derogation at national level need to notify the Commission within 15 days
of entry into force of the Regulation so that farmers can be informed as soon
as possible.

WRD World Radio Day was celebrated on Tuesday, and this year’s theme
was A century of information, entertainment and education. To mark this
celebration, Radio Romania’s stations broadcast interviews with journalists,
media experts, teachers, public figures and listeners, and their programmes
featured debates on the future of radio and broadcasts from the European
Broadcasting Union. The UNESCO declaration on World Radio Day, entitled Radio,
the Trusted Guide in a Changing World, can be found on the websites of all
Radio Romania’s stations.

WRESTLING The
Romanian athlete Denis Florin Mihai won the bronze in the Greco-Roman style 55
kilo category of the European Wrestling Championship in Bucharest on Tuesday, after
defeating Georgia’s Nugzari Tsurtsumia. Mihai ranks 4th in the world
standings and was the bronze winner in last year’s European Championships. Romania
takes part in the event in Bucharest with 30 athletes, 10 in each style.

POLO Romania’s men’s water polo team will play for the 9th
place at the World Championships in Doha, Qatar, after defeating China 9-7 on Tuesday. In
the match for the 9th and 10th places, scheduled on
February 15, Romania takes on the USA. Romania finished 8th last
month in the European Championships held in Croatia, and the team’s best performance
to date at a World Championship is a 5th place in 1975. (AMP)

13 February 2024
A new payment request within the National Recovery and Resilience Plan

On Friday, the Romanian government submitted to the European Commission the third payment request under the National Recovery and Resilience Plan – PNRR, which involves a net funding of 2.7 billion Euros. Out of this amount, more than 1.85 billion euros represent grants, and 811 million will come from loans. According to the Ministry of Investments and European Projects, the third payment request, as provided for in the adjusted plan, covers a total number of 74 targets related to 3rd quarter of 2022 and 4th quarter of 2022. Among the most relevant reforms and investments with a socio-economic impact are the adoption of the 2020-2030 national forestry strategy and the signing of contracts for 50% of the works related to the modernization and renewal of the railway infrastructure.

Also the PNRR includes the Law on Defense and Cyber Security of Romania, as well as the legislative framework for reducing expenses for special pensions. On the other hand, 450,000 cash registers will be connected to the information system of the National Agency for Fiscal Administration. Other reforms and investments target the coming into force of the Single Industrial License law, the signing of contracts for the renewal of public transport vehicle fleets and the purchase of non-polluting vehicles. At the same time, amending the Criminal Code and the Code of Criminal Procedure and the coming into force of the legislation on social dialogue, which provides for social dialogue and significant and opportune collective negotiations, are two other reforms included in the National Recovery and Resilience Plan. Last but not least, the coming into force of the law amending the Administrative Code and establishing administrative consortia in neighboring rural or predominantly rural administrative-territorial units, existing as functional rural areas, is included in this plan.

The Ministry of European Investments and Projects announced that the amounts related to the payment request no. 3 will be added to the 9.1 billion euros collected under the PNRR so far by Romania. The money represents pre-financing of 13% with a value of 3.79 billion euros, payment request number 1, with a value of 2.56 billion euros, and payment request number 2, with a value of 2.75 billion euros. The Ministry officials also pointed out that, once the payment procedure for the third request is completed, Romania will send the fourth one worth approximately 2.7 billion euros related to the fulfillment of 46 targets and milestones. The PNRR allocation is 28.5 billion euros. The money will be used to carry out 66 reforms and 111 investments. (LS)

18 December 2023