Radio România Internațional

Tag: economic

August 16, 2023 UPDATE

SECURITY Romanias security has been consolidated and the efforts to strengthen NATO structures on national territory, especially the NATO battle group established in 2022, will carry on, said President Klaus Iohannis, who attended the Navy Day ceremonies in Constanta on Tuesday. In turn, Prime Minister Marcel Ciolacu promised that the government would earmark the resources required for equipping and modernising the Romanian Naval Forces. Security at the Black Sea ensures the stability of the entire region and turns Romania into an important security provider, the speaker of the Senate, Nicolae Ciucă, also said.

ECONOMY The EU economy grew 0.5% and the Eurozone economy went up 0.6% in Q2 2023, compared to the corresponding period in 2022, with Ireland and Romania reporting the most significant growth rates, according to preliminary data released on Wednesday by the European Statistics Office (Eurostat). Among the EU member countries for which data are available, the highest growth rates in April-June 2023 are reported in Ireland (2.8%), Romania (2.7%), Cyprus and Portugal (2.3%), while the most important negative rates were in Estonia (-3%), Sweden (-2.4%), Hungary (-2.3%) and Poland (-1.3%). Across the ocean, the US GDP went up 0.6% compared to the previous 3 months and 2.6% against the corresponding quarter last year.

BACCALAUREATE Nearly 34,000 high school graduates in Romania, sitting the second session of this years Baccalaureate exam, Wednesday had the Romanian language and literature test, with papers graded digitally for the first time. The tests are scanned and uploaded on a platform, where they are assigned for grading to teachers in any part of the country except for the county where the student went to high school. The two tests in students major subjects are scheduled for August 17th and 18th. In order to pass the exam, candidates need an overall grade of at least 6 in their written tests. In the first Baccalaureate session, 75% of the candidates passed the exam.

TRAFFIC Over 2.2 million Romanians and foreigners crossed Romanias borders during the Assumption of Mary holiday period, up 24% compared to the corresponding period of last year, the Romanian Border Police announced. The most crowded checkpoints were those on the Hungarian and Bulgarian borders, and those in airports. During the same period, border police issued fines totalling over EUR 60,000 and seized assets of over EUR 600,000. More than 100 Romanian nationals were denied exit and 90 foreign nationals were not allowed to enter the country for various reasons.

UKRAINE The Romanian Defence Ministry strongly condemns the repeated strikes by Russian armed forces targeting critical infrastructure in Ukraine and regions inhabited by civilians in that country. The statement comes after on Wednesday morning the Danube River ports in Izmail and Reni, near the border with Romania, were hit by drone strikes. The war of aggression started by Russia against Ukraine is a blatant violation of international law, says the Defence Ministry, also adding that it has enhanced the monitoring of Romanias national territory and its maritime and airspace, jointly with NATO forces, to strengthen defence on the entire eastern flank and to deter possible aggressions against NATO member countries. (AMP)

16 August 2023
January 27, 2023

ECONOMY
Romania reports a record-high GDP increase for last year, from EUR 240 bln in 2021 to nearly
EUR 290 bln, according to the National Strategy and
Forecast Commission. For this year, however, the institution estimates a
slow-down of the economic growth from 4.9% in 2022 to 2.8%. The inflation rate
is also expected to drop significantly by the end of this year, from 16.4% in
2022 to 8%, and consumption growth is also predicted to drop to 2.4%, compared
to 4.6% last year. The figures in the winter forecast, made public on Thursday,
are not different from the ones in the autumn report, released in October.

HEALTHCARE The number of respiratory infections in Romania dropped last
week by almost one-quarter compared to the previous week, to 103,000 cases, the
National Public Health Institute announced. The number is nonetheless 21%
higher than the average weekly rate in 2015-2020. According to statistics,
nearly 5,000 of them were flu cases. Since the start of the cold season, 36
people died from the flu, and nearly 1.5 million people got anti-flu vaccines.

DIPLOMACY The Romanian
foreign minister Bogdan Aurescu had a bilateral meeting in Sibiu today with his
Dutch counterpart, Wopke Bastiaan Hoekstra. The talks focused on Romania’s
Schengen accession and the ongoing efforts to further this important goal. Bogdan Aurescu reiterated that Romania’s accession will help strengthen
the security of the EU as a whole and will give credibility to the Union. In
turn, ministrer Hoekstra reiterated the Netherlands’ active support for this
process. Wopke Hoekstra also reconfirmed the Netherlands’ commitment to
consolidating NATO’s deterrence and defence posture on the
eastern flank, in the context of Russia’s aggression in Ukraine, by
contributing troops to the NATO Battle Group in Romania. The 2 officials also
discussed the Romanian-Dutch bilateral relations. The meeting took place in the
context of the Dutch official’s visit to Romania for trilateral political
consultations in Bucharest, together with the French diplomacy chief Catherine
Colonna. Ahead of the talks, the 3 ministers made a joint visit to the French
and Dutch troops stationed at the Cincu military base as part of the NATO Battle
Group in Romania. In
Bucharest, Catherine Colonna will be received by president Klaus Iohannis and
PM Nicolae Ciucă.

COMMEMORATION
The International Holocaust Remembrance Day, or the International Day in Memory
of the Victims of the Holocaust, is marked every year on January 27, under a
resolution endorsed by the United Nations in 2005. In 1945, on January 27, Allied forces liberated
the largest Nazi extermination camp, in Auschwitz-Birkenau, Poland. According
to historians, the Holocaust resulted in the killing of 6 million Jewish people
in Europe and millions of other ethnics by Germany’s Nazi regime. Events and activities are organised on
this day every year at the UN headquarters in New York and UN offices around the world.
This year’s theme is Home and Belonging. In 2022, the UN General Assembly
adopted a resolution tabled by Israel, calling on all countries to condemn Holocaust
denial and anti-Semitism, especially on social networks.

TENNIS Gabriela Ruse (Romania) / Marta
Kostiuk (Ukraine) today lost to the defending champions, Barbora Krejcikova and
Katerina Siniakova (Czech Republic) 6-2, 6-2, in the doubles semi-finals of the
Australian Open. This is the best performance for Ruse and Kostiuk in a Grand Slam
event. Krejcikova and Siniakova hold a combined 6 Grand Slam doubles titles, 3
of them last year alone, when they only missed the Roland Garros. In the final,
the Czech players take on Shuko Aoyama/Ena Shibahara, of Japan, at their first
presence in a Grand Slam final after defeating Coco Gauff/Jessica Pegula (US). (AMP)

27 January 2023
Economic growth in Romania

Romania
reports the highest economic growth rate in the European Union compared to the
previous quarter, on the same level with Cyprus, while other member states have
seen growth rates below 1% or even negative rates.

The
first estimates made public by the National Statistics Institute indicate that
in the 3rd quarter of the year, the Gross Domestic Product went up 1.3%
compared to the previous quarter and by 4.7% compared to Q3 2021. The data, the
institution explains, was adjusted by seasonality and number of working days.

For
the first 9 months of the year, the economic growth was estimated at 4.3% compared
to the corresponding period of last year.

With
the new data included in the quarterly reports, the Statistics Institute has
revised downwards both the growth rate for the first quarter of this year, from
6.4 to 4.4%, and the rate for the second quarter, from 5 to 3.9%, compared to
the corresponding previous quarters.

The
economic analyst Constantin Rudniţchi believes that, while Romania’s economy
has a strong seasonal factor to take into account, such substantial corrections
are not desirable, because they may have a negative impact on companies’
business plans.

Constantin
Rudniţchi: An investor interested in opening a business in Romania may take
this decision based on this 6.4% economic growth rate, because obviously such a
rate, quite exceptional under the current circumstances, makes a market
attractive to investors. But if the growth rate is smaller, only 4%, of course
they will think twice. So these figures may influence an investment decision.

Economic
growth figures also influence all the decisions concerning pensions and wages, and
if statistics change so much, it means those decisions were mistaken, which is
by no means a good thing for the economy, Constantin Rudniţchi also says.

An
incurable optimist, the PM Nicolae Ciucă promises Romania does not risk a
recession:

Nicolae
Ciucă: We have taken measures to strengthen the economy, to keep it in balance
so as not to go into recession. The data we have available at this point
clearly indicates that by the end of the year Romania may well have a roughly
5% economic growth rate, and for next year we expect an economic growth rate of
around 1.5%.

Nonetheless,
forecasts coming from major international financial institutions are rather
gloomy and point to a slowdown of the global economy. And a perfect storm, i.e.
a mixture of elements such as the war in Ukraine, the rise in energy prices and
the inflation pressure, may hit hard some national economies. (AMP)

16 November 2022
Economic growth in Romania

Romania
reports the highest economic growth rate in the European Union compared to the
previous quarter, on the same level with Cyprus, while other member states have
seen growth rates below 1% or even negative rates.

The
first estimates made public by the National Statistics Institute indicate that
in the 3rd quarter of the year, the Gross Domestic Product went up 1.3%
compared to the previous quarter and by 4.7% compared to Q3 2021. The data, the
institution explains, was adjusted by seasonality and number of working days.

For
the first 9 months of the year, the economic growth was estimated at 4.3% compared
to the corresponding period of last year.

With
the new data included in the quarterly reports, the Statistics Institute has
revised downwards both the growth rate for the first quarter of this year, from
6.4 to 4.4%, and the rate for the second quarter, from 5 to 3.9%, compared to
the corresponding previous quarters.

The
economic analyst Constantin Rudniţchi believes that, while Romania’s economy
has a strong seasonal factor to take into account, such substantial corrections
are not desirable, because they may have a negative impact on companies’
business plans.

Constantin
Rudniţchi: An investor interested in opening a business in Romania may take
this decision based on this 6.4% economic growth rate, because obviously such a
rate, quite exceptional under the current circumstances, makes a market
attractive to investors. But if the growth rate is smaller, only 4%, of course
they will think twice. So these figures may influence an investment decision.

Economic
growth figures also influence all the decisions concerning pensions and wages, and
if statistics change so much, it means those decisions were mistaken, which is
by no means a good thing for the economy, Constantin Rudniţchi also says.

An
incurable optimist, the PM Nicolae Ciucă promises Romania does not risk a
recession:

Nicolae
Ciucă: We have taken measures to strengthen the economy, to keep it in balance
so as not to go into recession. The data we have available at this point
clearly indicates that by the end of the year Romania may well have a roughly
5% economic growth rate, and for next year we expect an economic growth rate of
around 1.5%.

Nonetheless,
forecasts coming from major international financial institutions are rather
gloomy and point to a slowdown of the global economy. And a perfect storm, i.e.
a mixture of elements such as the war in Ukraine, the rise in energy prices and
the inflation pressure, may hit hard some national economies. (AMP)

16 November 2022
Quarterly inflation report

In May this year the National Bank of Romania forecast
a 12.5% inflation rate for the end of this year and 6.7% for the end of next
year. Three months later, estimates were pointing to higher figures, i.e. 13.9%
for 2022 and 7.5% for end 2023.

These days, the central bank came up with new figures,
and adjusted its inflation forecast to 16.3% for this year and 11.2% for next
year, with the rate expected to go down to around 4% in September 2024.

Price increases have slowed down in the last few
months, central bank experts say, but significant differences compared to last
year will remain. According to the National Bank’s quarterly inflation report,
made public on Monday, a decrease in inflation will depend on a number of variables,
particularly the consequences of the war in Ukraine and the developments
related to raw materials, energy and food prices.

Governor Mugur Isărescu: As far as the war in Ukraine
is concerned, our position is, so to say, slightly positive, although not fully
optimistic. The effects of the war will be gradually mitigated, we do not
expect major declines. As for raw materials, data indicate prices are beginning
to settle. Bottlenecks in global value-added chains are likely to dwindle,
there are no indications of a resurgence of COVID infections, and the
macroeconomic policy mix is positive. So far we’ve worked well with the
government and the normalisation of the monetary policy continues.

Mugur Isărescu also said that key interest rate
increases in Romania have been comparable to the measures taken by other
central banks in the region. Interest rates are not very high in Romania
compared to other countries, and the national currency is one of the most
stable in the region, the governor explained, and added that, had the currency
depreciation put further pressure on the inflation, the situation would have
been a lot more difficult, as we see in Hungary, for example.

In Romania, interest rates have been raised gradually,
and the central bank sought to allow time for those who had taken out loans in
the national currency to get used to the new levels and with the fact that the
age of negative or very small interest rates is over, Mugur Isărescu
pointed out. The central bank official also voiced confidence that next year Romania’s
economy will only see slower growth, rather than technical recession, i.e. two
consecutive quarters of negative GDP growth, but that this mainly depends on
the government’s ability to attract EU funding. (AMP)

15 November 2022
Prices surge in Romania

For several months now, prices have been on an upward trend in Romania, worsening living standards especially for low-income citizens, who struggle to cope with the surges.

On the other hand, according to data made public by the European Statistics Office (Eurostat), Romania is one of the countries with the highest increases in agricultural yield, 25%, alongside Bulgaria and Czechia. The EUs agricultural yield went up 8% in 2021 compared to the previous year. According to Eurostat, Romania is one of the 7 member states with substantial contributions to the blocs agricultural yield.

And still, foodstuff prices have grown significantly this past year. Of these, sugar is one of the products with the highest price increase (62%). According to the National Statistics Institute (INS), sunflower oil prices also rose by nearly 44%, and potatoes are now sold for over 40% more.

In the non-foods category, the highest rises are reported for natural gas (40%), electricity (27%), heating (23%) and fuel (20%). Telecoms services are 0.76% less expensive, which is the only price decrease reported in October this year since October 2021.

Meanwhile, INS data indicate that the annual inflation rate was slightly lower in October than in the previous month, reaching 15.32%. The National Bank of Romania expects inflation to go up moderately towards the end of the year, and then to gradually go down to one-figure levels in the first half of 2024.

The central bank says the prospective reversal of the annual inflation trend after the plateau in the last quarter of 2022 relies on a dampening of global shocks in terms of supply, including the implementation of energy price-capping mechanisms until August 2023. According to the National Bank, the escalation of the war in Ukraine and the ever stricter sanctions against Russia nonetheless generate uncertainties and significant risks to economic operations, and implicitly to the medium-term inflation trends.

The European Commission also expects Romania to reach an inflation peak at the end of this year, followed by a decrease below 10% in 2024. It is one of the reasons why, the Commission says, the countrys economic growth rate will slow down to 1.8% next year and to 2.2% in 2 years time.

In the second quarter of 2022 and subsequently, the consequences of the Russian invasion of Ukraine, the high inflation rate, the tightened monetary policy and close control on cash flows is expected to have significantly slowed down the countrys economic growth. Nonetheless, the European Commission has upgraded its economic growth estimates, from 3.9% this summer to 5.8% in its autumn forecast made public last week. (AMP)

14 November 2022
September 28, 2022

ECONOMY The European Bank for Reconstruction and Development has
upgraded its estimates on Romania’s economic performance in 2022 and 2023, but warns that a significant slow-down is expected next year,
according to a report made public on Wednesday. According to the new forecasts,
Romania’s economy is expected to grow by 5.4% this year and 1.9% next year, a
significant improvement from the 2.9% for 2022 and negative 1.1% for 2023,
estimated in May. EBRD is a major institutional investor in Romania, running
nearly 500 projects with a combined budget of close to EUR 10 billion.

TRADE Trade
exchanges between Romania and the US reached USD 5.4 billion last year, as
against USD 2.4 billion in 2011, according to a report released by the American
Chamber of Commerce and Industry in Romania, AmCham, as part of the U.S. -
Romania Economic Forum on Wednesday. Direct and indirect US investment in
Romania went up from USD 6.5 billion in 2019, to USD 7.5 billion in 2020. The
US is Romania’s 5th-largest trade partner, accounting for 6.8% of the country’s
international trade, and the largest outside the EU. The biggest US investments
in Romania by turnover are in manufacturing, agriculture and healthcare. As
many as 900 companies in Romania are running on US capital, ranking 3rd after
Hungary and the Czech Republic.

PLAGIARISM The University of
Bucharest says the plagiarism accusations against the education minister Sorin
Cîmpeanu must be analysed thoroughly, outside any type of pressure, by the
relevant bodies in the university in question and other public institutions. The
University condemns any measure that breaches academic ethics and integrity. In
turn, the National School of Political and Administrative Studies condemns all
forms of plagiarism and highlights that the education minister’s decision to
dismantle the National Council Attesting
University Titles, Diplomas and Certificates is not constructive and does not
contribute to a true reform of the education sector. On the other hand, USR and Force of the Right MPs, in
opposition in Romania, have tabled a simple motion entitled Romania
educated to steal. Sorin Cîmpeanu is a disgrace for education. Plagiarism
allegations against the education minister have been circulated in the media. Cîmpeanu
denied the allegations and argued that they are a move to undermine the
education laws.

JUDICIARY A special parliamentary committee on the justice laws today
carries on talks on the draft statute regulating the judge and prosecutor
professions. On Tuesday, the committee accepted some amendments brought by the
National Liberal Party (in power) and the Higher Council of Magistrates, but
dismissed all the amendments tabled by the opposition. USR and AUR parties
requested changes in judge and prosecutor secondment and delegation procedures,
and in the procedures for dismissing magistrates. The bill is next to be
reviewed by the Chamber of Deputies. This is the 3rd act in the
justice law package to be discussed by the committee, after the ones concerning
the Higher Council of Magistrates and the organisation of courts, which have
already been endorsed by the Chamber of Deputies. The Senate is the
decision-making parliamentary body in this respect.

UKRAINE Ukraine’s foreign ministry Wednesday called for a substantial
increase of Western military support, one day after the so-called referendums
regarding the annexation of 4 Ukrainian regions by Russia. The ballots have
been criticised by a large part of the international community, France Presse
reports. Kyiv also urged all countries and international organisations to
condemn Kremlin’s illegal actions in the territories occupied in Ukraine. The
pro-Russian authorities in the Ukrainian regions of Donetsk, Luhansk,
Zaporizhzhia and Kherson Tuesday announced the votes were in favour of the
annexation by Russia. In the next stage, Russia’s parliament is to vote on a
document making the integration of the 4 regions in the Russian Federation
official. The EU announced it would
never recognise the results of the referendums. (A.M.P.)

28 September 2022
July 14, 2022 UPDATE

PARADE The National Day parade in France was marked this year by the
war in Ukraine. Troops from 9 countries on NATO’s eastern flank, including 12
from Romania, paraded jointly with French military as a token of the unity of
NATO Allies and of solidarity with Ukraine, Radio Romania’s correspondent in
Paris reports. According to her, this year’s celebrations unfolded under the
motto ‘Partager la flame’ (Divide the Flame), with a dual meaning: to pay
homage to Hubert Germain, the last member of the French resistance against the
Nazi occupation, who died this year, and to hail the Olympic flame ahead the
Olympic Games Paris is due to stage in 2024. Romanian president Klaus Iohannis Thursday
sent president Macron a letter of congratulations and wishes of prosperity for
the French people. Iohannis highlighted the solidity and consistency of the
Strategic Partnership between Romania and France, built on common values and
excellent cooperation both at bilateral level and within the EU and other
international bodies. Bucharest celebrated France’s national day with a
reception at the French Embassy, attended by Romania’s Prime Minister Nicolae
Ciuca and by senior French officials.

ECONOMY Thanks to a
surprising 5.2% growth rate in Q1, the European Commission decided to update
its estimates on Romania’s economic growth this year, from 2.6% forecast in
March to 3.9% in its summer economic forecast made public on Thursday. The Commission
also operated a downward adjustment of its forecast for 2023, from 3.6% to 2.9%,
given that the growth trend is expected to slow down both globally and at EU
level. Private consumption and investments are expected to be the main growth
engines both this year and the next, whereas net exports will lead to a deeper
trade deficit, the Commission says.

VISIT Germany’s
foreign minister Annalena Baerbock will be on an official visit to Bucharest
and Constanţa on Friday, the German embassy in Bucharest announced. Annalena
Baerbock will co-chair the second ministerial conference of the Support
Platform for the Republic of Moldova together with her Romanian counterpart,
Bogdan Aurescu and the French state secretary for development, Francophonie, and international partnerships Chrysoula
Zacharopoulou. Also on Friday Annalena Baerbock will have meetings with PM Nicolae
Ciucă and foreign minister Bogdan Aurescu, focusing on bilateral and European
policy topics. In the Black Sea port of Constanţa the German official will
discuss with local officials and representatives of German companies about
Ukraine’s grain exports via Constanţa.

CENSUS The deadline for finalising the national population
and housing census has been extended by a week, from July 17 to 24, as the
current completion rate is below 90%. The organisers are hoping to bring the
rate up to 100% using fixed census locations and door-to-door operators. For the
first time in Romania, a first stage of the national census was conducted
online, with 11 million respondents registered, which is little under half of
the estimated resident population of Romania.

DRILL Over July 14 and 25 three Romanian warships take part in the
international exercise ‘Breeze 22’ staged and coordinated by the Bulgarian Navy
in the country’s territorial and the international waters of the Black Sea and
the Bulgarian port of Burgas. This year’s edition of the exercise has brought
together navy and air forces from Albania, Belgium, France, Georgia, Italy,
Latvia, Poland, Turkey and the USA. The drill is aimed at strengthening
tactical interoperability between the navy personnel and participating units
and at practicing conventional and non-conventional war procedures.

UKRAINE Addressing an international conference on the war crimes in
Ukraine held in The Hague, the president of Ukraine Volodymyr Zelenskyy
Thursday requested the creation of a special tribunal to investigate Russia’s
invasion of Ukraine. The country’s foreign minister Dmytro Kuleba also asked
for a special court trying the crime of aggression, defined as an attack by one
state against another. All we want is for the crime of aggression to not go
unpunished, Dmytro Kuleba said during the same conference. Political,
diplomatic and judicial leaders from around the world convened on Thursday for
a conference on the crimes committed in Ukraine since February 24. The European
Commissioner for Justice Didier Reynders mentioned that 20,000 investigations
concerning war crimes in Ukraine have been opened. Around 14 European countries
are investigating these crimes, and a European Joint Investigation Team has
been set up, he added. Russia denies the abuses of which its troops are being
accused, which include shelling civilians, executions, and rapes, and in
exchange accuses Ukraine of crime wars. Meanwhile, scores of civilians were
killed or wounded on Thursday in a Russian missile attack on the town of Vinnytsia,
in central Ukraine. (AMP)

14 July 2022
May 24, 2022

MEASURES A new set of social and economic measures agreed on by the ruling
coalition made up of the Social Democratic Party and the National Liberal Party
will take effect in Romania as of July 1. The measures include postponements of
bank loan repayments for citizens and businesses struggling with financial
problems, as well as support for low-income pensioners. The government will
also take steps to ensure fiscal consolidation and public deficit commitments. The
costs of this set of measures reach EUR 1.1 bln.

POLL Six out of 10 Romanians (58%) believe cutting consumption is the
easiest solution for the financial difficulties caused by the rising inflation,
says a survey made public today. In April, the inflation rate reached a record
13.8%, well above the National Bank’s 12.5% forecast for 2022. According to the
survey, 67% of the respondents see the government of Romania as responsible for
this inflation rate. Three-quarters of Romanians also believe inflation is
higher in Romania than in other countries. The respondents say the most
substantial price rises are witnessed for foodstuffs (77%), fuel (77%) and
utilities (electricity and gas) – 70%. In this context, 58% say reducing
consumption could solve the inflation problem, but pay raises are also
considered as solutions, and so is emigration. The survey was conducted online,
between April 20 and 26.

IMF The International Monetary Fund managing director Kristalina
Georgieva said on Monday that while a recession of the world’s major economies
is not expected, it is not out of the question either. The global economic
prospects have worsened since the IMF’s downward adjustment of its 2022
forecasts, owing to the war in Ukraine, the slow-down of China’s economy and
the global price shocks, especially in the foodstuff sector. ‘In a short period
of time…the horizon has darkened,’ Kristalina Georgieva said. In January, the
IMF estimated that this year the global economy will grow by 4.4%, but last
month the forecast was adjusted to 3.6%.

NATO NATO fighter jets deployed to military bases in Romania carry on their
missions to ensure the integrity of the Allied air space, the Romanian defence
ministry said. In less than 6 months, Italian Eurofighter Typhoon aircraft
stationed at the Mihail Kogălniceanu base in south-eastern Romania reported a
combined 1,000 hours of flight in NATO missions protecting the Romanian air
space. Air missions are paired with missions of the NATO Battlegroup set up in
Romania in the wake of Russia’s invading neighbouring Ukraine.

REFUGEES The number of Ukrainian nationals entering Romania on Monday was 2.4%
smaller than on the previous day, reaching 7,709, the Romanian border police
announced. Since the start of the crisis, more than one million refugees crossed
the border into Romania. Meanwhile, new checkpoints will be opened on Romania’s
border with Ukraine, allowing the Siret checkpoint, in the north-east, where
trucks are currently waiting up to 14 hours to leave the country, to give
priority to humanitarian assistance shipments. In a first stage, a checkpoint
will be opened at Vicovu de Sus (north) for vehicles up to 3.5 tonnes, and
another one at Racovăţ (north-east) for vehicles of up to 7 tonnes. Later on, a
new checkpoint will also be operational in Ulma (north-east).

TENNIS The Romanian tennis player Ana Bogdan Ana Bogdan (93 WTA) was
defeated on Monday by Victoria Azarenka of Belarus (15 WTA), 6-7 (7-9), 7-6
(7-1), 6-2, in the first round of the Roland Garros Grand Slam tournament. Irina
Begu was also scheduled to play on Monday against Jasmine Paolini of Italy, but
the match was suspended because of the rain in the 3rd set. On
Tuesday 3 other Romanians, Simona Halep, Irina Bara and Mihaela Buzărnescu will
play in the main draw. Sorana Cîrstea qualified in the second round on Sunday,
while Gabriela Ruse lost her first round. Halep, seed no. 19, is a Roland
Garros champion in 2018 and a finalist in 2014 and 2017. (AMP)

24 May 2022
Economic growth estimates for 2022 go down

The National Commission for Strategy and Prognosis in
Bucharest has revised down its economic growth forecast for this year to only
4.3%, 0.3% down as compared to its previous estimate. The forecast is mainly
based on the growing inflation rate, presently at 8% and expected to hit two-digit
figures shortly, but also takes into account the fifth wave of the Coronavirus
pandemic and the energy crisis.

Authors of the aforementioned forecast have explained that all the estimates
have been done without taking into account a potential conflict caused by the
geopolitical tensions at the border with Ukraine.

The 4.3% growth has been done in keeping with the higher
energy prices, which may hamper activity especially in the chemical and steel
industry, known to be major energy consumers.

At the same time, dysfunctional supply chains, which
contribute to price hikes on the market, are believed to continue. Even if such
dysfunctionalities are diminished, they will continue to affect the car and
electric equipment manufacture.

Services are expected to register a low increase, especially
in the household sector, whereas constructions are to see a more significant
development than estimated in autumn. Growth in this sector is expected to become
visible against the same period last year, when activity slowed down but also
because of an envisaged impetus given by the incoming European funds.

The Commission has also forecast lower growth in private
consumption and investment against the previous estimates. Research has also been
made on the impact of the energy price hike upon the inflation rate, which translates
into higher consumer prices.

This increase is to be felt less in February thanks to the
new regulations aimed at capping these prices, but is to gain momentum in
April.

Slight
increases are also expected in July and at the beginning of the cold season.
Estimates point to an inflation rate of 9.5% at the end of the year within the annual
average of 9.9%. The estimates don’t take into account other protection measures
for the population though. Suchlike measures are to be quantified in the commission’s
further forecasts.

According
to data released on Tuesday by the National Institute for Statistics, Romania saw
a 5.6% economic growth last year whereas its GDP dropped 0.5% in the last
quarter of 2021 as compared to the previous quarter, but rose 2.2% against the
same period of 2020.

(bill)

17 February 2022
Government aid to help cover electricity bills

The price of electricity and natural gas in Romania followed the upward trend in Europe, and the government is currently looking for solutions to extend the aid schemes in the energy sector.

Last week 2 such schemes were approved, targeting energy producers and the local administration or inter-community development associations that put up or upgrade energy facilities.

A memorandum was also endorsed, extending the aid schemes for large energy consumers. According to the government spokesman Dan Cărbunaru, over EUR 82 million will be channelled to those investors that tap into renewable energy sources. The energy ministry was tasked to hold consultations with the European Commission regarding the extension of the state aid programme to support large energy consumers.

Dan Cărbunaru: “Everybody is affected, not only the smaller households, but big consumers as well. Obviously, we are talking about large amounts of money and the procedure requires the approval of the European Commission. The government was tasked with initiating talks as soon as possible, so that major consumers in Romania may continue to benefit from state aid in due time.”

Dan Cărbunaru also says that these measures are intended to preserve both the competitiveness of Romanian companies compared to other competitors in the EU and outside it, and to keep the around 200,000 jobs in these sectors.

Dan Cărbunaru: “These state aid schemes were implemented in Romania in 2019-2021. They were effective, given that these companies in energy-intensive sectors contribute an annual 6% of Romanias GDP. An important element to take into account are the jobs that a company benefitting from such state aid has to keep in place.”

In the forthcoming period, the government is to finalise new support measures for household consumers to cope with the surge in energy prices. Apart from the measures taken so far, the government plans to continue to shield the economy and households from the effects of the energy crisis after April 1 as well.

Dan Cărbunaru: “These support packages being prepared by the government are almost ready. I can confirm that the PM requested all stakeholders to find a solution which is as quick, as comprehensive and as easy to implement and to explain as possible.”

Within 2 weeks the government will have ready a set of measures concerning electricity bills, the finance minister Adrian Câciu said in his turn. (A.M.P.)

14 February 2022
January 12, 2022 UPDATE

COVID-19 Romania reported
8,600 new Covid cases and 44 related deaths on Wednesday. The incidence rate is
on the rise around the country, including the capital Bucharest, where it
passed 3 cases per 1,000 inhabitants, the city now being in the red tier. This
means that restaurants, cinemas, gyms and other venues can open at 30%
capacity. Also, schools where the vaccine uptake among staff is under 60% will
switch to online teaching. The National Public Health Institute confirmed the
sustained community transmission of the Omicron variant, saying almost half of
the cases did not have contact with someone infected. In the meantime,
preparations are being made for opening outpatient Covid evaluation centres
around the country.

CORRUPTION The Interior Ministry’s Anti-Corruption Directorate
Wednesday conducted 25 home searches in the counties of Neamţ and Iaşi (north-east),
as part of investigations concerning forgery and fraud offences involved in the
obtaining of COVID vaccination certificates. Physicians and nurses received
bribes in exchange for fictitious vaccination certificates. Late last year the Anti-Corruption
Directorate announced that since the start of the pandemic 168 criminal cases
were initiated with respect to fictitious vaccination and other offences. According
to the institution, Romania saw the largest-scale frauds in the EU in this
respect, with over 3,000 fake COVID certificates issued at Petea border
checkpoint. Some 1.8 million COVID-19 cases have been reported in Romania
since the start of the pandemic, and around 60,000 COVID patients died. Amid
anti-vaccine feelings fuelled by certain media outlets, politicians and opinion
leaders, Romania has the second-lowest vaccination rate in the EU.

EU FUNDING Over 1.9 billion euros will be transferred to Romanian
government accounts on Thursday, as part of the loans given to Romania under
the National Recovery and Resilience Plan, after the targets for Q4 2021 were
reached, the Ministry for EU Projects and Investments announced. The funds will
add to the 1.85 billion euros in grants paid by the European Commission on
December 2, 2021. Bucharest is to receive over 29 billion euros under the
National Recovery and Resilience Plan. The loans in the programme will be used
for the funding of large-scale projects, including motorways, water supply and
sewage networks, the digitisation of SMEs and reforestation, the Ministry
explained.

GROWTH The
National Institute of Statistics confirmed its 0.4% estimate with regard to the
growth of the Romanian economy in the third quarter of last year compared with
the previous quarter, but changes were made to the share of investments and
consumption in GDP growth. Also, in the third quarter, the net added value saw
important changes in the sectors of information and communications,
constructions, financial mediation and insurances and real estate transactions.

ECONOMY The Romanian economy is expected to grow by 4.3% this year,
as against a 4.5% growth rate forecast in June 2021, reads the World Bank’s report
on Global Economic Prospects, released on Wednesday. For 2023, the World Bank
forecasts a 3.8% GDP growth for Romania, while for last year the institution
estimates the country’s economic growth rate stood at 6.3%. The institution
expects the global economy to grow by 4.1% in 2022 and by 3.2% in 2023.

FOREIGN POLICY
Romania will continue to develop as an active, trusted, involved and
respected member of the EU and NATO. Romania’s approach is focused on
continuity, based on the three essential pillars of its foreign policy:
consolidating the country’s role and influence in the EU and NATO and
developing and deepening the strategic partnership with the US, said
president Klaus Iohannis at his annual meeting with foreign diplomats in
Bucharest. He also said strengthening the US military presence in Romania is a
major goal. Given the recent security challenges, it is obvious that we need
stronger action in terms of defence and deterrence, the Romanian president
added. Iohannis also said Romania is worried about the security situation in
Ukraine and its implications for Euro-Atlantic security and added that Romania
will continue to support the efforts of the Republic of Moldova to join the
European Union. (tr. A.M. Popescu)

12 January 2022
Instrument to protect EU member states

The European Commission is proposing a tool to
enable the Union to respond when a third country attempts to blackmail a member
state, to alter EU policies for their own interests, or when EU companies receive
unfair treatment in third markets.

The strategy does not target a particular
country, but it could be used even in case a country like Russia reduces or
suspends natural gas supplies, or in a situation similar to the one currently
faced by Lithuania, whose exports are now stopped at the Chinese border in
retaliation to Vilnius’s openness to Taiwan.

This is an anti-coercion tool, the EU vice-president
Valdis Dombrovskis explained. He insisted that the EU continues to support free
global trade, but that third countries do not embrace these values and pressure
member states in exchange for political and economic advantages.

The EU will work directly with the state
concerned, in order to put an end to economic intimidation. If the threat is not
immediately ended, the new tool will enable the EU to act quickly and
efficiently. According to the EC
official, this is a signal to EU members that the Union will push back when
under threat.

In recent years, the EU and its members have
been targets of economic intimidation, i.e. when a country tries to pressure another country
into changing their policies by restricting, or threatening to restrict, trade
or investment, Valdis Dombrovskis explained.

Since it is a part of the EU’s trade policy, it
does not require the vote of member states. According to analysts, this is not
seen with friendly eyes in capitals like Budapest, known for their close ties
with Beijing, which has often been accused of aggressive economic and political
conduct in the European market.

Under this strategy, when a third country acts
aggressively, the Commission may resort to services or investment restrictions, exclusion
from public procurement and access to Union-funded programmes. It may also suspend macro-financial assistance to that state, and
suspend any contribution or guarantee agreement with those entities or
individuals having ties with a third country that uses economic blackmail
against the EU, an EU company or a member state.

The strategy consolidates the set of tools used by the EU to better protect itself
in the global market. Its goal is to discourage states from weaponizing trade
in order to effect changes in EU policies regarding climate change, taxation or
food safety.

The proposal is to be
discussed and approved by the European Parliament and EU Council. (tr. A.M.
Popescu)

9 December 2021
Economic forecast for Romania

The European Bank for
Reconstruction and Development (EBRD) has substantially improved its estimate
on Romania’s economic performance for this year, and in a recent report it expects
a 7.2% growth rate as opposed to the 6% estimated in June.

Further on, in 2022, the
European funds earmarked under the Recovery and Resilience Plan are expected to
lead to an increase in investments and improvement of exports, which jointly
with the predicted fiscal consolidation and the slow-down in private
consumption may translate into a GDP growth by over 4%.

However, EBRD cautions
that these forecasts are rather tentative. The main risk, as far as Romania is
concerned, is the pandemic, given that the country has the second-lowest
vaccination rate in the EU.

Other risk factors are
the high prices for natural gas and oil, because Romania, just like other
countries, is forced to offset the high electricity expenses for low-income
households. Other alarm signs are related to possible disruptions in supply
chains, and the depreciation of the national currency.

According to the
international financial institution, 3 south-eastern EU member states-Greece,
Romania and Bulgaria-are currently seeing a significant economic recovery,
after a rather difficult year 2020. In Romania’s case, domestic demand is the
main engine for growth.

On the other hand, the high prices for raw
materials may undermine the post-pandemic recovery of European economies, insofar
as they strongly affect the trade balance of energy-importing countries like
Romania.

According to the report,
the high energy prices may be a test of the public’s support for a greener
future. While global support was strong and growing in the past few years, in
some economies, including Egypt, Lithuania, Kazakhstan, Poland and Romania the
support rate is lower than in the late 1990s.

According to EBRD,
economies in the region will see an average growth rate of 5.5% in 2021, which
accounts for a 1.3% upgrade since the bank’s June forecasts. In 2022, as
economies recover, the rate will slow down to an average 3.8%. These forecasts
come with a high uncertainty element, given the risks entailed by the Covid-19
pandemic, by a possible worsening of international circumstances and a more
modest growth rate among the main trade partners.

The EBRD was set up in
1991 to invest in former communist states and assist them in the transition to a
free market economy. After the fall of the communist regime in 1989, EBRD became
a major investor in Romania, where it focuses on funding infrastructure, improving
productivity and consolidating the financial sector. So far the institution has
invested nearly 9 billion euros in the Romanian economy, three-quarters of
which went into the private sector. (tr. A.M. Popescu)

5 November 2021
Economic forecast for Romania

The European Bank for
Reconstruction and Development (EBRD) has substantially improved its estimate
on Romania’s economic performance for this year, and in a recent report it expects
a 7.2% growth rate as opposed to the 6% estimated in June.

Further on, in 2022, the
European funds earmarked under the Recovery and Resilience Plan are expected to
lead to an increase in investments and improvement of exports, which jointly
with the predicted fiscal consolidation and the slow-down in private
consumption may translate into a GDP growth by over 4%.

However, EBRD cautions
that these forecasts are rather tentative. The main risk, as far as Romania is
concerned, is the pandemic, given that the country has the second-lowest
vaccination rate in the EU.

Other risk factors are
the high prices for natural gas and oil, because Romania, just like other
countries, is forced to offset the high electricity expenses for low-income
households. Other alarm signs are related to possible disruptions in supply
chains, and the depreciation of the national currency.

According to the
international financial institution, 3 south-eastern EU member states-Greece,
Romania and Bulgaria-are currently seeing a significant economic recovery,
after a rather difficult year 2020. In Romania’s case, domestic demand is the
main engine for growth.

On the other hand, the high prices for raw
materials may undermine the post-pandemic recovery of European economies, insofar
as they strongly affect the trade balance of energy-importing countries like
Romania.

According to the report,
the high energy prices may be a test of the public’s support for a greener
future. While global support was strong and growing in the past few years, in
some economies, including Egypt, Lithuania, Kazakhstan, Poland and Romania the
support rate is lower than in the late 1990s.

According to EBRD,
economies in the region will see an average growth rate of 5.5% in 2021, which
accounts for a 1.3% upgrade since the bank’s June forecasts. In 2022, as
economies recover, the rate will slow down to an average 3.8%. These forecasts
come with a high uncertainty element, given the risks entailed by the Covid-19
pandemic, by a possible worsening of international circumstances and a more
modest growth rate among the main trade partners.

The EBRD was set up in
1991 to invest in former communist states and assist them in the transition to a
free market economy. After the fall of the communist regime in 1989, EBRD became
a major investor in Romania, where it focuses on funding infrastructure, improving
productivity and consolidating the financial sector. So far the institution has
invested nearly 9 billion euros in the Romanian economy, three-quarters of
which went into the private sector. (tr. A.M. Popescu)

5 November 2021