Radio România Internațional

Tag: EC

November 21, 2023 UPDATE

Investments — The European Commission has approved the modification of Romanias National Recovery and Resilience Plan, the Ministry of Investments and European Projects announced on Tuesday in Bucharest. According to the line minister, Adrian Câciu, the modified form no longer includes the limitation of 9.4% of the gross domestic product for the expenses of the public pension system. The elimination of this ceiling was also announced by the PM Marcel Ciolacu. On the other hand, Romanias modified plan attaches great importance to the green transition, allocating over 44% of the funds, compared to 41% in the original plan, for measures that support climate objectives. Also, the allocation of funds for the country’s digital transition increases from 20.5% to 21.8%. At the beginning of December, the revised form of the National Recovery and Resilience Plan will be approved at the meeting of European finance ministers, and then a new implementation decision will be issued by the Council of the European Union.

Israel — The Romanian senators and deputies watched on Tuesday, during a joint plenary session, a film made available by the Israeli armed forces regarding the attacks of the Hamas group on October 7. The images were unedited and several parliamentarians left the room, declaring themselves shocked by the atrocities committed against the civilian population in Israel. At the end of the meeting, which was secret, without access for the media, the Israeli ambassador in Bucharest, Reuven Azar, declared that his country had the duty to eradicate all the military capabilities of the Hamas group and to ensure that this terrorist organization will no longer represent a future threat. He once again thanked the Romanian Parliament, which was the first in the world to unanimously adopt a resolution condemning Hamas and reiterating support for Israels right to defend itself.

Tour — Romania’s president, Klaus Iohannis, is on an official visit to Senegal, the last stage of his African tour. He visited, in Dakar, the Senegalese Association for the Protection of Children with Mental Deficiencies, which will receive support from Romania. On Wednesday, President Iohannis will go to the island of Gorée, a UNESCO heritage site and former outpost of the slave trade, where he will meet with local officials. According to Radio Romania’s correspondent, the presidents official talks with his counterpart, Macky Sall, will take place on Thursday, when a series of official documents will be signed. Also on Thursday, Iohannis will participate in the inauguration of the United Nations House in Senegal and in the opening of an exhibition of traditional masks. He will also have a meeting with former students from Senegal who studied in Romania. The previous stages of the ten-day African tour of the Romanian presidential couple were Kenya, Tanzania and Cape Verde.

Gaudeamus – The Gaudeamus International Book Fair, organized by Radio Romania, begins in Bucharest on Wednesday. The event marks 95 years since Radio Romania’s first broadcast, 30 editions of the Gaudeamus Book Fair in Bucharest and over 140 national and local editions. Some 200 participants will organize more than 500 events as part of this years fair, which will come to an end on November 26. (LS, AMP)

21 November 2023
April 20, 2023

Aid. The Romanian Government is preparing to provide its own support to farmers who grow cereals, in addition to the compensation offered by the European Commission in the context of the cereal crisis in Ukraine. A draft decision in this regard is on the agenda of todays meeting, when the executive would discuss other measures related to the situation created by the import and transit of grain from the neighboring country at war. Yesterday, Romania decided to continue allowing the transit of grains from Ukraine, but introduced additional control measures to protect farmers. The decisions were announced after the discussions that the relevant Romanian minister Petre Daea had with his Ukrainian counterpart, Mikola Solski. On the same day, the ministers responsible for trade and agriculture from Poland, Hungary, Slovakia, Bulgaria and Romania analyzed the situation together with the vice-president of the European Commission, Valdis Dombrovskis, and the European commissioner for Agriculture, Janusz Wojciechowski. The head of the EC, Ursula von der Leyen, has announced that integrated measures will be taken and promised a new financial aid of 100 million euros for farmers affected by the facilities offered to grain producers in Ukraine.

Moldova. The European Parliament adopted, on Wednesday, in Strasbourg, with a large majority, a resolution stating that the accession of the Republic of Moldova would represent a strategic investment in a united and strong Europe and pleading for the start of accession negotiations with Chisinau by the end of the year. The document states that Moldova remains exposed to Russian pressure and energy blackmail, the economic turmoil caused by the war in neighboring Ukraine, as well as the attempts supported by the Kremlin to destabilize the countrys pro-European government.

Expulsion. The Republic of Moldova (ex-Soviet, predominantly Romanian-speaking) has expelled a Russian diplomat who was accompanying the president of Tatarstan, Rustam Minnihanov, in his attempt to enter the territory of the republic. The diplomat, declared persona non grata, and another employee of the Russian embassy were accused of inappropriate behavior towards the border police, who did not allow the Tatarstan leader to enter the Republic of Moldova. Tatarstan is an autonomous Russian republic, and its president is a supporter of Russias war in Ukraine. Prime Minister Dorin Recean has stated that those who help to kill children and women in Ukraine have no business in the Republic of Moldova. The head of government also stated that the Chisinau authorities will not accept any association between the Republic of Moldova and the atrocities of the war in Ukraine.

Visit. On a formal visit to Brazil, the president of Romania, Klaus Iohannis, met with the vice-governor of the state of Rio de Janeiro and the vice-mayor of the city and signed a memorandum of understanding aimed at cooperation in the field of environment. Radio Romania reports that in the discussions with the local authorities in Rio de Janeiro, President Iohannis presented the economic opportunities offered by Romania and invited investors from the region to come here, mentioning the fact that joint projects can be developed in several fields. The head of state appreciated the intense involvement of the authorities in aspects related to environmental protection and encouraged the intensification of collaboration in this field, which can become one of the pillars of sectoral cooperation between the two countries. This was the last item on the agenda of the Romanian presidents visit to Brazil. His South American tour will continue with official visits to Chile and Argentina.

Ukraine. A Ukrainian military spokesman accused Moscow of “provocation” after its allied separatist forces it said the Ukrainian military blew up four buildings in the eastern mining town of Bakhmut, killing 20 civilians. He has stated that the Ukrainian troops never target civilians. Russia also denies involvement in the explosions. The Russian invasion army has been besieging Bakhmut for more than half a year. Ukraine sees the fighting there as essential to block the Russian forces on the entire eastern front, while military analysts say the citys strategic importance is limited.

Navy. The maritime surveillance vessel MAI 1106 of the Romanian Border Police participates in Italian waters in the joint operation “THEMIS” 2023, organized by the FRONTEX Agency. The Romanian crew, made up of 28 members, performs patrol, search and rescue missions in the Mediterranean Sea, as the ships commander, police commissioner Nicolae Stignei, told the Radio Romania correspondent in Italy.

Dance. The Sibiu Ballet Theater (central Romania) was invited to participate in the third edition of the Poznan International Theater-Dance Festival called ” Poland – The boundaries of nature – The boundaries of culture”, organized by the Polish Dance Theater . The Sibiu Ballet will present in Poznan on April 25 for the general public and on April 26 in a closed-circuit event, the newest contemporary dance production made in Sibiu – the show “One way ticket”, created by choreographer Sandra Mavhima. The show is a choreographic essay about the challenges faced by Eastern Europeans who choose to emigrate to the West in search of a better life. Guest performances juxtapose different styles and understandings of the border concept. Along with the Sibiu Ballet Theatre, artists and dance companies from Ukraine, the Czech Republic and Poland will perform on the stage of the festival. (MI)

20 April 2023
April 12, 2023 UPDATE

Ordinance – The public expenditure reform bill should be ready next week, the Romanian Finance Minister Adrian Câciu announced. Until then, the Government members will present solutions to reduce expenses in their areas of responsibility. The Prime Minister Nicolae Ciucă asked them not to plan salary cuts or give up investments. He also said that he wanted to improve the collection of taxes, not to increase taxes. All in all, the cuts should amount to 20 billion lei – approximately 4 billion Euros – by the end of the year. On Wednesday, the Romanian government approved an emergency decree that provides for simplification and digitalization measures for the management of European funds for the 2021-2027 Cohesion Policy. Also on Wednesday, the program through which the Romanian state financially supports the refugees from Ukraine was modified: from now on they will receive an amount of money per person, for four consecutive months. After this period, they will be able to benefit from unemployment or enter the employment program, but before that, they must register with the employment offices. Those who host the refugees will no longer receive money for accommodation and food, as was the case until now.

Aid – The Romanian government will grant a first installment of the financial aid intended to compensate for the losses caused by the conflict in Ukraine to cattle breeders and the dairy market. More than 21 million Euros will be granted starting on May 15, with a second tranche, worth 22 million Euros, to be disbursed in the second semester. Following Tuesday evening’s consultations between the government team led by the Prime Minister Nicolae Ciucă and the representatives of dairy processors and big store chains, a price reduction for milk was agreed upon for the next six months. Also to support the consumption of milk produced in Romania, the Government wants to expand the “Hot Lunch in Schools” Program starting next year. Thus, pupils will receive milk every day at school, not just three times a week, as happens at present.

Visit – The European Commission has identified 15 companies, from 11 countries, where the production capacity in the defense industry could be increased, and Romania is one of these countries, said the European Commissioner for Internal Market, Thierry Breton. On Wednesday, he visited two factories in Romanias defense industry. Breton previously met in Bucharest with the Prime Minister Nicolae Ciucă, and, following talks, he stated that Romania would be able to play an even more important role in the defense industry, in the context of the war in neighboring Ukraine. Breton highlighted the fact that Romania increased the budget allocated to defense from 2% to 2.5% of the GDP, giving Romania as an example to follow. The discussions with Nicolae Ciucă also focused on cyber security, the European commissioner saying that the field should be competitive.

Gymnastics — Romania’s mens team ranked 11th, on Tuesday, at the European Championships in Artistic Gymnastics in Antalya (Turkey), thus qualifying for the World Championships in Antwerp, Belgium. The Romanian athletes needed to be ranked among the first 13 teams to obtain qualification for the World Cup, a competition that will decide the teams that will participate in the 2024 Olympics. Italy won the gold medals, the silver went to Turkey, and Great Britain got the bronze.

Motion — In Bucharest, Save Romania Union – USR and ‘Forţa Dreptei’ – Force of the Right party (both opposition) tabled a simple motion to the Chamber of Deputies against the Agriculture Minister, Petre Daea. The signatories claim that he is the weakest agriculture minister in the last 30 years, registering failure after failure and endangering both Romanias economy and development, as well as the countrys food security. They accuse him of willingly destroying Romanian agriculture. This is what people can see in the markets where the prices are the highest in the last 30 years, said the leader of the USR deputies, Ionuţ Moşteanu, who announced the initiative. The motion will be voted on next Wednesday.

NATO – The Romanian Defense Minister Angel Tîlvăr and the Chief of the General Staff General Daniel Petrescu, met on Wednesday with the Chair of the NATO Military Committee, Admiral Robert Bauer. He is visiting Romania from April 11 to 14. According to a press release from the Romanian Defense Ministry, talks will focus on the security situation in the Black Sea region, the dynamics of the implementation of allied measures to deter and defend the Euro-Atlantic area, NATO operations and missions, as well as major training events this year. (LS)

12 April 2023
Economic forecast of the European Commission

The winter forecast of the European Commission came with improved estimates regarding Romania’s economy. Economic growth is to reach 2.5% this year, compared to 1.8%, the percentage estimated in autumn, and the inflation rate is to decrease to 9.7% this year and to 5.5% in 2024, percentages that are lower than those estimated in the previous forecast. Private consumption, although affected by high inflation, will increase, the European Commission believes, and this will happen as a result of the increase in the minimum wage, pensions and salaries in the public sector and also as a result of the extension of energy price caps until 2025.

The Commission’s optimistic forecast is also based on the impact of the money from the National Recovery and Resilience Plan, while other European funds will support local investments. Last but not least, the European Commission recalls that Romania last year had a solid economic growth in the first three quarters, of 4.3%. The good evolution of the economy is accompanied, however, almost every time, by an increase in macroeconomic imbalances, financial analyst Dragoş Cabat explained on Radio Romania, and this is now happening also in the case of Romania.

Dragoş Cabat: While we have high economic growth, which we enjoy, this does not come with a reduction in deficits and the public debt, but, unfortunately, it comes with an increase in these deficits, which, at some point in the future, will need to be adjusted. And this usually happens in times of recession, that is the moment when we reduce deficits. And this means that recessions in Romania are felt much more strongly than they are felt in the rest of the European Union, for instance.

The data show that Romania’s current account deficit increased last year by more than 52%, now exceeding 26 billion Euros. The National Bank of Romania has shown that the increase comes mainly from the higher deficit recorded by the balance of goods, with imports being almost 9.2 billion Euros higher than exports. The analyst Dragoş Cabat believes that, if it continues on the trend of the last decades, Romania will record new negative records from one year to the next in terms of external deficit and public debt, because, he says, as the gross domestic product increases, there emerges a deficit multiplier effect. The data published by the Central Bank also reveal that, last year, Romania’s total external debt increased by more than 6.1 billion Euros, exceeding the value of 142.7 billion Euros, and that direct foreign investments amounted to almost 10.7 billion Euros. (LS)

14 February 2023
European money for the Romanian farmers

After more than a year and a half in which the Romanian Agriculture Ministry consulted with representatives of public and private organizations in the field and drafted 1,900 pages for the National Strategic Plan 2023 – 2027, the Romanian farmers and Romanian agriculture will benefit from help. The European Commission has approved the Plan worth almost 16 billion Euros. Of this amount, approximately 10 billion Euros represent direct payments and sectoral interventions, and the rest will be allocated for rural development. According to the Agriculture Minister, Petre Daea, Romania’s Plan is meant to improve farmers’ means of subsistence and their competitiveness. Romania uses about 40% of its budget for rural development to encourage ecological practices in areas of high natural value, in order to protect biodiversity. And in order to maintain the attractiveness of rural areas in Romania, the plan will support the creation of more than 12,000 jobs in these areas, with financing for enterprises and infrastructure.

Moreover, farmers will be supported to adopt new innovations, from precision agriculture to agroecological production methods – the minister promises. Petre Daea also stated that the new document includes a support instrument for farmers with losses, by which compensation is granted in case of disasters, the total amount allocated being almost 400 million Euros. According to Petre Daea, this support instrument must be implemented urgently, through a very strict timetable, and the expected completion date is the third quarter of next year. By the end of the year, however, Petre Daea promises that compensations will be paid to Romanian farmers for the drought-affected crops sown last fall. He admitted that the 2021/2022 agricultural year was a difficult one, which put Romanian farmers to the test, in a context in which ‘the pedological drought affected the whole country.

This is also seen in Romania’s corn production, which is the lowest in the last 15 years. Nevertheless, the minister has given assurances that the production obtained will ensure domestic consumption, estimated at approximately 7 million tons, with availability for export. Things were different in 2021, when according to the data of the National Institute of Statistics, Romania ranked on the first place in the EU both in terms of the area cultivated with corn and in terms of production, which was close to 15 million tons. As regards wheat, last year Romania occupied the fourth place in the EU in terms of cultivated area, but also in terms of production, with over 10 million tons, while the domestic consumption of wheat is estimated at 2.5 – 3 million tons per year. Since 2015, Romania has consistently taken the first place in the EU for the production and cultivated area of sunflower – according to data provided by the National Institute of Statistics. (LS)

8 December 2022
State of the Union Adddress 2022

The energy crisis and the support for Ukraine dominated the address on the state of the Union by the President of the European Commission, Ursula von der Leyen, in the plenary session of the European Parliament in Strasbourg. Vladimir Putin, she reminded, is solely responsible for the current crisis and for the uncontrolled increase in gas and electricity prices. The EC is looking for answers to the challenges of this crisis, and comes up with several proposals among which a reduction of electricity consumption by at least 5% during peak hours and a reduction in demand by at least 10% by March next year. The EC also proposes a temporary income ceiling of 180 Euros for one megawatt/hour for producers of electricity from renewable, nuclear and lignite sources. Revenues that exceed the ceiling will be collected by governments and used to help energy consumers reduce their bills, Mrs. von der Leyen said. The EC President also proposed capping profits for companies that produce low-cost electricity.

Ursula von der Leyen: “In our social market economy, profits are good. But in these times it is wrong to receive extraordinary record profits benefitting from war and on the back of consumers. In these times, profits must be shared and channelled to those who need it the most. Our proposal will raise more than 140 billion Euros for Member States to cushion the blow directly. And because we are in a fossil fuel crisis, the fossil fuel industry has a special duty, too. Major oil, gas and coal companies are also making huge profits. So they have to pay a fair share — they have to give a crisis contribution.”

The EC President also pleaded in favor of redesigning the electricity market, which should be decoupled from the gas market. She announced the creation of a European Hydrogen Bank, a moment that may represent a turning point for the European Union, which has pledged to leave behind its dependence on fossil fuels imported from Russia. In the presence of Olena Zelenska, the wife of the Ukrainian President, who was invited to attend the speech, Ursula von der Leyen stated that the financial aid would continue for Ukraine as a long-term commitment. The EU will grant 100 million Euros for the reconstruction of schools destroyed by the war, but besides funding, it will also provide the means the country needs to maximize its potential. Europe has provided Ukraine with financial assistance worth over 19 billion Euros, not to mention the military support. (LS)

15 September 2022
May 23, 2022 UPDATE

ECONOMY Seven countries, including Romania, continue to
experience imbalances, the European Commission announced on Monday, having
assessed the existence of macroeconomic imbalances for the 12 Member States
selected for in-depth reviews in the 2022 Alert Mechanism Report. The
Commission points out that vulnerabilities in Romania’s economy relate to
external accounts, linked to large fiscal deficits, and to competitiveness
issues that are re-emerging. Large fiscal deficits pre-date the COVID-19 crisis
and have driven up the current account deficit, which poses risks to external
debt sustainability. Government debt increased significantly, although from
moderate levels, sovereign borrowing costs kept growing, while bureaucracy and
a volatile legislative framework will be a burden for investments, the
Commission warns.

RECOVERY The first payment request under the National Recovery and
Resilience Plan, amounting to EUR 3 bln, will be submitted to the European
Commission, PM Nicolae Ciucă announced on Monday. The money will finance
projects in all the sections of the Plan and will impact several strategic
sectors for Romania. PM Nicolae Ciuca appreciated the efforts of the
institutions involved in the management of the RRP and asked for a steady pace
in the efficient and high-quality implementation of the reforms and investment
projects. This is an effort that must be carried on and extended in order for
Romania to benefit from the EUR 30 bln available under the RRP for
modernisation and development projects, Ciucă said.

UKRAINE The number of people forced to flee conflict, violence, human
rights violations and persecutions has exceeded 100 million for the first time,
as a result of the war in Ukraine and other deadly conflicts, shows a statement
from the UN High Commissioner for Refugees (UNHCR). The figure is staggering,
worrying and should have never been reached, said UN High Commissioner for
Refugees Filippo Grandi. By the end of 2021, the number of displaced people had
reached 90 million worldwide, due to new waves of violence or protracted
conflicts in countries such as Ethiopia, Burkina Faso, Myanmar, Nigeria,
Afghanistan and the Democratic Republic of Congo. On February 24, the Russian
President Vladimir Putin ordered the invasion of neighbouring Ukraine, throwing
further millions of people into the streets to flee fighting and reach less
exposed regions or other countries. Europe has not seen such a rapid inflow of
refugees since the end of World War II, UNHCR points out. Nearly 6.5 million
Ukrainians have left the country, mostly women and children, and the UN
estimates that their number could exceed 8 million by the end of the year.

CANNES The Romanian filmmaker Cristian Mungiu, competing at the Cannes Film
Festival, hopes that his film ‘R.M.N.’, in which a village in Transylvania is
like an explosive laboratory of populism, will open the eyes of Europeans to
this evil that has been gnawing at them, AFP reports. Mungiu is in the race for
a second Palme d’Or Prize, 15 years after his ‘4 months, 3 weeks and 2 days’.
The film title, ‘R.M.N.’, refers to the medical term MRI – magnetic resonance
imaging: Mungiu scans the underbelly of populism, an evil that has metastasized
in a still traditional village, on the borders of Europe, AFP reports. ‘I hope
that the public do not easily shy away from their responsibilities, do not
think that this is happening in a remote, wild land. I’m afraid that’s not the
case,’ said director Mungiu. The film takes place a few days before Christmas,
in a village in Transylvania, where the Roma population disappeared, driven
away by the inhabitants and the force of prejudice, and where the new ‘cursed
people of the Earth’ appeared: Sri Lankan workers, brought to work at the local
bakery after the Romanians went to work in the west. (AMP)

23 May 2022
May 16, 2022 UPDATE

NATO — The Romanian President Klaus Iohannis hails Swedens decision to apply for NATO membership, following the announcement made on Monday by Swedish Prime Minister Magdalena Andersson. In a Twitter message, president Iohannis states that Romania fully supports a rapid process of Swedens accession to the North Atlantic Alliance. He adds that, once they join the Alliance, Sweden and Finland will make NATO stronger than ever before. The two countries in northern Europe, located near Russia, have decided to go out of neutrality and demand to be admitted into NATO after Russia attacked and invaded Ukraine almost three months ago. NATO currently has 30 member states, 21 of which are part of the EU. The EU member states that have not joined the North Atlantic Alliance are Austria, Cyprus, Finland, Ireland, Malta and Sweden.

Forecast — Romanias Gross Domestic Product (GDP) will grow by 2.6% this year and by 3.6% in 2023, according to the European Commissions spring economic forecasts. This is a smaller increase than expected in the previous assessments, in February. The situation is valid for the whole of the European Union and is mainly due to the disruptions caused by the war waged by Russia in Ukraine. European Commissioner for the Economy Paolo Gentiloni has announced that the European average inflation rate will be 6.8% this year. He also said that in April European inflation averaged 7.5%, the highest value ever recorded in the monetary union. According to the Commission, inflation in Romania will reach 8.9% this year, double the percentage reported in 2021. Inflation is expected to fall to 5.1% next year, but the Commission warns that there are growing economic risks as the war in Ukraine is prolonged.

Visit — A delegation of the Romanian Interior Ministry led by minister Lucian Bode pays an official visit to the US between May 16-18, on the occasion of the 25th anniversary of the launch of the Romania-US Strategic Partnership. The Romanian official is to have meetings at the Department of State, the Department of Homeland Security and the US Congress. The discussions with the US officials focus on institutional efforts in line with the State Departments recommendations made in the Trafficking in Persons Report (TiP Report), Romania having the necessary tools for an adequate response to the challenges posed by this type of crime, namely structures, legislation, strategies and action plans, informs the Interior Ministry. The meetings are an opportunity to reconfirm the very good cooperation between the Romanian authorities and the US law enforcement agencies in the field of combating organized crime, with a focus on combating illegal migration and cybercrime, as well as intensifying the exchange of information. During the talks with members of the US Congress, Lucian Bode will discuss the challenges of the current regional context, both in terms of managing the humanitarian crisis generated by Russias aggression against Ukraine and in terms of security.

Tennis — Polands Iga Swiatek leads the world ranking of professional tennis players (WTA), published on Monday. Next in the ranking are the Czech Barbora Krejcikova and the Spanish Paula Badosa. The Romanian Simona Halep returned to the Top 20, climbing two positions compared to last week, from 21 to 19 position. Romania has six players in the top 100, the other five being Sorana Cîrstea – 27, Gabriela Ruse – 52, Irina Begu – 62, Jaqueline Cristian – 69, Ana Bogdan – 91. In the doubles ranking, Romania has five representatives in the first hundred: Monica Niculescu – 40, Raluca Olaru – 47, Irina Begu – 57, Irina Bara – 59, Gabriela Ruse – 87.

Football — CFR Cluj (northwest) won its fifth consecutive title as Romania’s football champions, after defeating the Universitatea Craiova (south), score 2-1, at home, in a match from the 9th stage, the penultimate of the First League play-offs. The vice-champion is FCSB, from Bucharest. On Thursday, Sepsi OSK Sfântu Gheorghe (center) and FC Voluntari (south, a satellite city of Bucharest) will play the final of the Romanian Football Cup. At the end of the domestic season, the Romanian national football team will have their first match in a new edition of the League of Nations, at the beginning of June, when it will meet the national teams of Montenegro, Bosnia and Finland. (LS)

16 May 2022
April 9, 2022 UPDATE

UKRAINE – Ukrainian President Volodymyr Zelensky said Saturday that Ukraine was ready to continue negotiations with Moscow, which have stalled since the discovery of atrocities in Bucha and other areas near Kyiv. “We are ready to fight and to look in parallel to end this war through diplomacy,” Zelensky said in a joint press conference with the Austrian Chancellor Karl Nehammer. The Austrian official paid a solidarity visit to the capital Kyiv and to Bucha, a town which became, according to France Press, the symbol of the Russian invasion’s atrocities. The Ukrainian authorities have announced that 10 humanitarian corridors were negotiated, to evacuate civilians from the conflict regions. A state of siege was declared in the port city of Odessa, at the Black Sea, during the weekend. According to Radio Romania correspondents, regional authorities fear an attack similar to that in Kramatorsk, where at least 50 civilians were killed in a missile attack on the train station. Moscow has warned western countries, through its ambassador in Washington, Anatoly Antonov, that the further delivery of weapons to Ukraine is dangerous and provocative, as it prologues the conflict and, being directed against Russia, can lead to direct confrontation between the US and Russia.

HUMANITARIAN AID – European Commission President, Ursula von der Leyen, has promised 1 billion euro from the Commission to support Ukraine and the countries taking in refugees who flee war following the Russian invasion of their country. The announcement was made Saturday, at an online fundraising event for the Ukrainian refugees, organized by the US and Canada and hosted by Warsaw. A total of 10.1 billion euro were raised during the event dubbed “Stand up for Ukraine”, to be used for the needs of those 4 million Ukrainian refugees in the EU countries. Moreover, the financing and donations will ensure vital humanitarian assistance to those 6.5 million displaced people in Ukraine, of whom 2.5 million are children.

ELECTION — France holds presidential elections on Sunday. The 49 million eligible voters will pick their favourite from among 12 candidates, four women and eight men. The most likely scenario for the runoff is incumbent president Emmanuel Macron running against Marine Le Pen, a representative of the far right. Opinion polls have recently shown Macron only 3-4 points ahead of Le Pen, from 12 points in mid-February, which means that some 26%-27% of the people would vote for Macron and 23% for his contender. Coming out third in opinion polls, with 16%, is the far left leader Jean-Luc Melenchon.

GAS — The ruling coalition in Bucharest has sped up talks on modifying the offshore law that regulates the exploitation of the natural gas reserves that Romania has in the Black Sea. The National Liberal Party, The Social Democratic Party and the Democratic Union of Ethnic Hungarians in Romania have agreed on a final version of the law. The document will be debated by Parliament next week and is to be adopted through emergency procedure. Thus, the Romanian state should receive at least 60% of the profit obtained after the extraction of natural gas, while private companies would get 40%. Energy Minister Virgil Popescu has recently said that as of this year, Romania will benefit an additional 1 billion cubic meters of natural gas by exploiting the deposits in the Black Sea.

RATING – Fitch Ratings has put Romania’s long-term foreign currency issue default rating (IDR) at BBB- with a negative outlook, the agency said in a statement. The negative outlook reflects “continued uncertainty regarding the implementation of policies to address structural fiscal imbalances” over the medium term and the impact of the Ukraine war and energy crisis on Romanias economic, fiscal and external performance, the agency said. Fitch Ratings expects Romania’s GDP growth to slow down to 2.1% in 2022 (from 5.9% in 2021), primarily reflecting a slowdown in private consumption and exports. Investment dynamics is expected to accelerate in 2023, which combined with the assumption of a normalisation of external trade and supply chains, will lift economic growth to 4.8%, the agency also said.

REFUGEES – More than 76 thousand people entered Romania on Friday, through the border checkpoints, of whom 8,623 Ukrainian citizens, down by 5.9% as against the previous day, the Border Police General Inspectorate announced on Saturday. Since the Russian invasion of Ukraine, almost 660 thousand refugees have entered Romania. Most of them only transited the country, heading for Western Europe. (EE)

9 April 2022
March 29, 2022 UPDATE

Talk. Romanias president Klaus Iohannis discussed on Tuesday, on the phone, with his counterpart Volodymyr Zelensky, the critical situation in neighboring Ukraine. “Romania will continue to take care of every citizen of Ukraine who arrives in this country”, the Romanian head of state wrote on Twitter. He added that more than 125 trucks carrying goods, ambulances and fire engines from Romania and other EU member states have arrived in Ukraine via the humanitarian hub set up in Suceava (northeast). President Zelensky informed his Romanian counterpart about the latest on Ukraines fight against the Russian aggression and Russias war crimes against Ukrainian civilians. Iohannis has spoken on the phone with Zelensky before, on February 24 and March 13. In all these talks, the Romanian president has assured his Ukrainian counterpart of Romanias full support, both bilaterally and within the EU.

Ukraine. Moscow will radically reduce its military activity in the direction of Kyiv and Chernihiv in Ukraine, the Russian negotiators said on Tuesday, after Russian-Ukrainian talks in Istanbul. According to AFP, they also said that negotiations on an agreement on Ukraines neutrality and non-nuclear status were entering a practical dimension. The head of the Russian delegation, Vladimir Medinsky, spoke of “substantial talks” between the two sides and said that Ukraines “clear” proposals for an agreement would be “studied very soon and forwarded to President Vladimir Putin.” For their part, the Kyiv negotiators said that Ukraine proposed the adoption of a status of neutrality in exchange for security guarantees, meaning that it would not join military alliances or host military bases on its territory. The proposal will also include a 15-year consultation period on the status of the annexed Crimea and will enter into force only in the event of a complete ceasefire. The Ukrainian side also wants security guarantees like Article 5 of the NATO treaty, which is a collective defense clause. Those who would guarantee Ukraines security could include the United States, the United Kingdom, France, Germany, Poland, Israel, Turkey and Canada. The proposals are the most detailed and concrete that Ukraine has made public so far, Reuters reports.

Commissioner. The effects of the war in Ukraine on the European economy cannot be quantified yet, but it is clear that estimates of economic growth, both in the EU and in Romania, need to be revised downwards, the European Commissioner for Economy Paolo Gentiloni said on Tuesday in Bucharest, where he attended a conference organized by The Economist. In turn, the Romanian Minister of Finance, Adrian Câciu, announced that Romania had obtained from the European Commission more flexibility in the use of European funds, so that 70-80% of the new measures to maintain the purchasing power of Romanians could be supported with community money. During his meeting with the European Commissioner, Prime Minister Nicolae Ciuca has said that Romania, as an EU and NATO member state, is a safe country, which guarantees the security of business and investment. The two analyzed the economic effects triggered by the Russian military aggression on Ukraine, and the Romanian Prime Minister presented the efforts made by Romania to manage the flow of refugees, as well as the solidarity shown towards the Ukrainians remaining in their country.

Refugees. The EU interior ministers on Monday approved a plan for better coordination with respect to Ukrainian war refugees. The EU Commissioner for Home Affairs, Ylva Johansson, has announced that so far 3.8 million people, especially women, children and elderly, have fled Ukraine. Member states have requested additional funding from the Commission to manage the inflows, with the Commission announcing furher aid is already being prepared. The EU interior ministers also agreed to launch a EU-wide platform for the registration of refugees arriving in the Union and applying for temporary protection. They also put together unified rules for receiving and supporting children, including unaccompanied minors, and a plan against human trafficking. In this context, Romania continues to support Ukrainian refugees and the authorities in that country. Since the start of the war, over 570,000 Ukrainian nationals have entered Romania. Most of them have only transited the country, while around 4,300 applied for asylum in Romania.

Visit. The Speaker of the Romanian Senate, Florin Cîţu, who is on a visit to the United States,has met with the Speaker of the US House of Representatives, Nancy Pelosi, with whom he discussed the importance of Romania in NATO, the strengthening of defense capabilities and the Visa Waiver program. On Monday, he held talks with the Republican leader Kevin McCarthy. The topics addressed were: increasing Romanias defense budget to 2.5% of GDP, the need for tougher sanctions against Russia and the status of Romanias energy security projects. Florin Cîţu is on a working visit to Washington, together with a delegation of parliamentarians, until March 30.

Covid-19 Ro. Over 4,000 new COVID-19 cases were confirmed for the past 24 hours in Romania, the authorities announced on Tuesday, almost double the previous days figure. Little over 2,700 patients are being treated in hospitals for Covid, of whom 400 in intensive care. The authorities also announced 45 related fatalities, one of which from a previous date. The health minister Alexandru Rafila has announced that COVID-19 hospitals will gradually resume their regular operations by the end of September. (MI)

29 March 2022
Romania and the crisis in Ukraine

Cyber-attacks, espionage activities and fake news phenomena have intensified in Romania, in the current regional context – said the director of the Romanian Intelligence Service – SRI, Eduard Hellvig. Heard in the standing joint committee of the Romanian Chamber of Deputies and the Senate in charge of exercising parliamentary control over SRIs work, Hellvig presented a security analysis from the perspective of SRIs legal responsibilities and in the context of the tense situation in neighboring Ukraine. According to a SRI statement, director Hellvig called for the updating of the national security law package, all the more so as the regional security environment is constantly changing.

Also in Bucharest, the defense minister Vasile Dîncu said that, in case of an armed conflict, Romania is ready to receive over 500 thousand refugees from Ukraine. “There is a plan in this regard that is being prepared in all major cities, there are areas dedicated to this purpose near the borders” minister Dîncu explained. Romania and the neighboring Ukraine share a common border of more than 600 kilometers.

The Romanian community in Ukraine numbers over 400 thousand people, most of them concentrated in northern Bukovina, northern and southern Bessarabia and Herța Land, the Romanian territories annexed by the former Stalinist Soviet Union in 1940 and taken over by Ukraine as a successor state in 1991, with the disintegration of the USSR.

In another development, Romania has decided to send medical products to Ukraine such as analgesics, anti-inflammatory drugs, antibiotics and disinfectants. The aid is provided through the European Union Civil Protection Mechanism and is a response to the request for emergency assistance made by the Kiev administration to the European Commission. Alongside Romania, Austria, France, Ireland and Slovenia will provide community aid to Ukraine. As the geopolitical crisis may worsen the energy crisis, the Romanian authorities have given reassuring signals on this issue.

A conflict in Ukraine will not cause problems with the gas supply of neighboring Romania, which, with the arrival of spring, can ensure its entire consumption from domestic sources – says the energy minister, Virgil Popescu. The decision-makers, he added, are looking into ways to diversify import routes and are also considering sources of gas other than the intermediaries of Russias energy giant Gazprom.

The local think tank Expert Forum (EFOR) writes, in its annual report for 2022, that energy prices have risen due to the gas deficit, deliberately deepened by Gazprom since the summer. According to EFOR, the Russian giant has honored its contracts with Europeans at the last minute, emptying its gas storage facilities in Europe since the summer, and has delivered as little gas as possible in the pipelines. In general, Gazproms strategy was to abuse European rules while formally respecting them, just to show that the European rules are faulty – concludes the report written by the Romanian experts. (LS)

23 February 2022
February 10, 2022 UPDATE

MILITARY President Klaus Iohannis and NATO’s secretary general Jens Stoltenberg
will visit the Mihail Kogălniceanu Air Base 57, the Romanian Presidency
announced. The 2 officials will also discuss with the troops deployed to the
military base and subsequently will have a joint press conference. Military
equipment for the US Task Force (TF) Cougar has already reached Romania. TF
Cougar will primarily consist of a
Stryker squadron relocated from Germany to Romania to protect the region in the
context of the Russia-Ukraine standoff. President Iohannis said
after a visit to the Headquarters Multinational Brigade South-East on Thursday
that the US and France deciding to strengthen their military presence in Romania
is a ‘firm sign of the coherence and consistency of Euro-Atlantic solidarity’ and
invited other Allied countries as well to consider contributing troops to the
multinational structures in Romania.

DRILLS Russia and Belarus Thursday began 10 days of military exercises near
the border with Ukraine and Poland. According to the Russian defence ministry, the drills are aimed at the tasks of repelling
external aggression while conducting a defensive operation, countering
terrorism and protecting common interests.
NATO is concerned that the Russian military build-up in Belarus is part of a
plan to attack Ukraine. Moscow denies plans to invade Ukraine, and says it will
pull out its troops from Belarus as soon as the drills are over. According to Radio
Romania’s correspondent in Moscow, Russia relocated troops and equipment from
as far as Siberia and the Far East, 10,000 km away, for the exercise in
Belarus.

GOVERNMENT The governments of Romania and the Republic of Moldova will hold their
first joint meeting in Chişinău on Friday, with the Romanian PM Nicolae Ciucă scheduled
to also have talks with president Maia Sandu and the Moldovan parliament
speaker Igor Grosu. A joint action and solidarity plan for the energy sector
will be put together within 6 months of signing a joint memorandum on energy
security, which is scheduled for Friday, the Romanian government spokesman Dan
Cărbunaru said. He added that a bill was passed on the mutual recognition of
diplomas. Over 12,000 students and 2,000 pupils from Moldova are currently
attending Romanian schools. The 2 governments are also to sign an agreement on
Friday concerning the building, maintenance, repair and use of a cross-border
bridge in Ungheni. Another agreement between the 2 states will concern roaming
and international call tariffs.

ECONOMY Romania’s economy went up by 6.3% in 2021, thanks to a
sound domestic demand, but the pace will slow down to 4.2% this year, to reach
4.5% in 2023, according to the winter economic forecast released by the
European Commission on Thursday. Last autumn the EC estimated Romania’s GDP
would grow by 7% in 2021, with rates of 5.1% and 5.2% forecast for 2022 and
2023 respectively. The most recent data concerning confidence in the economy
indicate positive, although moderated economic growth prospects, especially in services,
retail, constructions and industry. Private consumption is also expected to
recover in the second half of the year, when restrictions will be eased out and
inflation will slow down. Meanwhile, the EC substantially adjusted its 2022
inflation forecast for Romania, from 4% estimated in November to 5.3% this
winter, after a 4.1% inflation rate in 2021.

TENNIS The Romanian tennis player Irina Begu Thursday managed a
spectacular win against Petra Kvitova of the Czech Republic, 6-4, 6-0, which
secured her a place in the quarter-finals of the WTA 500 tournament in Sankt
Petersburg, Russia. Another Romanian, Jaqueline Cristian, lost to Aleksandra
Sasnovich of Belarus, 6-2, 6-3, and left the competition. (A.M.P.)

10 February 2022
Highlights of the 2022 budget

The draft state budget for 2022 is likely to reach Parliament and be voted on fast, before Christmas. It was launched for public debate on Sunday and aims to protect vulnerable groups, to reduce tax dodging and increase investment funds up to 7% of the GDP. According to the draft budget, in 2022 Romania will have revenues of 216 billion lei (43.8 billion Euros) and will spend 301 billion lei (61.4 billion Euros). The Finance Ministry expects sustained economic growth next year and hopes to meet the deficit target agreed upon with the European Commission. In the “Budget Allocations” chapter, the Transport Ministry will receive 20% more funds in 2022 than in 2021. The Ministry of European Investment and Projects will also have a substantially increased budget, alongside the Defense, Education and Culture ministries.

The Presidential Administration, the Senate, the Chamber of Deputies and the Government’s General Secretariat, as well as the secret services, will have additional funds. Among the institutions that receive less money are the Ministries of Finance, Development, Energy, Entrepreneurship and Tourism and the Public Ministry. The Health Ministry will have about the same budget as this year. According to data published by the Finance Ministry, the draft budget is based on an economic growth rate of 4.6% and a budget deficit of 5.8% of the GDP which has been estimated for 2022 at about 1.300 billion lei (265 billion Euros). At the same time, the average inflation rate has been forecast at 6.5%.

According to the budget strategy, the estimates for the next three years show an economic growth peak in 2023 of 5.3% and an average annual rate of 4.9% over the entire period 2023-2025. This is higher than the rate estimated in the EU and the Eurozone, of 4.3%, given that the economic shock caused by the pandemic is one of the most significant in recent history. Romania, however, has the advantage of a relatively rapid return of the GDP to the pre-pandemic level. The draft budget also stipulates that the worst moment of the crisis has been overcome by fiscal and monetary measures that boosted economic activity.

However, economic developments are dependent on the evolution of the vaccination campaign, on potential future pandemic waves, the specificities of the economic structure and the external influences caused by the degree of integration into the European and world value-added and production chains. At the same time, the measures adopted by the authorities in the context of the manifest twin imbalances — of the current account and fiscal account — will also have an influence. The support measures will be gradually withdrawn to reach the assumed 3% budget deficit target by 2024. (LS)

20 December 2021
Romania’s NRRP endorsed

Romanias National Recovery and Resilience Plan is now ready for implementation, following the endorsement it received from the Economic and Financial Affairs Council. Over the next six years Romania could benefit from 29.2 billion euros, money allocated to stimulate the green and digital transition and to build a more resilient economy.

The financing will be accessible starting December, and in the next period the first money can arrive in the country in the form of a pre-financing granted by the European Commission, independent of the political developments in Bucharest.

The European Commission Vice-President Valdis Dombrovskis has stated that the formal written approvals will be ready in a few days. This allows Romania to access 13% of the total amount it was allocated. Dombrovskis has also stated that, irrespective of the interim government, from the point of view of the European Commission, if the pre-financing request comes from Romania, normally the Commission can support this request, because the condition for granting pre-financing is the approval of the recovery plan. “This condition has been met. It is clear that recovery plans must coexist with various policy developments in the Member States. That is part of the reality of a Union of 27 democracies”, Dombrovksis also said.

The money will be disbursed in installments depending on the fulfillment of objectives that would allow modernization through reforms and essential investments. The phasing out of coal-based electricity production and the use of renewable energy sources, as well as investments and reforms in the areas of building renovation, railway modernization, water and waste management, and afforestation and reforestation are measures that Romania has set out to implement in order to achieve its climate goals.

The amounts at its disposal will also be used to digitize public services, but also to strengthen the resilience of the health system. Romanias plan includes over 100 investments and 15 public policies, and the largest allocation is in transport, over 7.5 billion euros. The interim prime minister, Florin Cîţu, has stated that, through this national plan, Romania will benefit from a strong infusion of European funds, which will give it the opportunity to develop in the coming years.Moreover, Florin Cîțu has said, the implementation of the National Recovery and Resilience Plan will include 64 reforms and over 100 investments in all areas, so transport, health and education in particular will benefit from massive funding. (MI)

29 October 2021
Energy prices, a postponed solution

Record electricity prices continue to be reported in Europe, and both the domestic and industrial consumers fear that, in the coming winter, they might have to pay huge bills — if they can afford. That is why the Community institutions are trying to reach a common solution for all the EU member states, which is not at all simple, as always happens when extremely sensitive issues are at stake. Gathered in Slovenia for an informal Council meeting, the European leaders have failed to agree on a response to the accelerating price rise. France and Spain, for instance, are calling for an in-depth reform, Romania wants an urgent solution, while other states are calling for patience.

Attending the meeting, the Romanian President Klaus Iohannis said: ʺWe had a first discussion about energy prices, especially electricity prices, and we agreed to speed up all efforts. The Commission has promised, and we expect it to respect its promise, to come with an approach, with solutions in one week at the most, because we cannot go through the winter season with rising prices.”

The energy price hike was also tackled in the European Parliament, where the representatives of the European Commission and the European Council were heard. Energy Commissioner Kadri Simson of Estonia provided the solution that by 2030, in Europe, 65% of electricity production should come from renewable sources. But what will people do until then? MEPs have accused that the measures to eliminate fossil fuels did not take into account the fact that there are insufficient renewable sources, that nuclear energy has been marginalized and that Europe is blackmailed by Russia in relation to energy. Almost all political groups in the EP have called for a single European energy market and the purchase of gas through a common scheme. There was also the opinion that prices should be capped.

MEPs also called for harsh measures against energy suppliers’ speculation. In Romania, the huge rise in electricity and gas prices coincided with the complete liberalization, from July 1, of the energy market and many companies took advantage of the situation. Heard in the parliamentary commission that investigates the causes of very high prices, the president of the National Authority for Consumer Protection, Claudiu Dolot, said that, in September, more than 30 companies broke the law, registering the worst irregularities regarding non-compliance with contractual clauses. (LS)

7 October 2021