Radio România Internațional

Tag: European Commission

Romania’s Interior Minister, in Brussels

Migration, border management and strengthening the security of the
Union are the home affairs priorities Romania has set for its presidency of the
Council of the European Union, between January 1 and June 30, 2019. The
interior minister Carmen Dan went to Brussels to present them on Thursday, at
the last meeting of the Justice and Home Affairs Council under Austrian
presidency.

The visit was preceded on Wednesday by a joint meeting of Viorica
Dancila’s Cabinet and the European Commission, whose president Jean-Claude
Juncker voiced his confidence that Romania is able to hold the rotating
presidency successfully.

According to a news release issued by the Interior Ministry, a
central element in the field of migration and border management is the
strengthening of the European border agency, Frontex, by means of enhanced
personnel and logistical capabilities provided by the member states. Other
aspects on which the Romanian Interior Ministry will focus include fighting
online content that promotes terrorism and developing the concept of Community
Policing across the EU.

Community Policing is an initiative of the Romanian Interior
Ministry designed to facilitate relations between police and expat communities
in EU member countries. According to the news release, Romania has considerable
experience in the field, and is already conducting missions in countries like
Italy, Spain, France and Bulgaria. Such operations have been quite successful
in terms of preventing and fighting offences with Romanian victims or
perpetrators living in the respective states.

On the sidelines of the JHA Council, Minister Dan also had bilateral
meetings with her counterparts from Bulgaria, Germany and the UK. Key topics
included the rights of the Romanian citizens in Britain and of the British
citizens living in Romania after Brexit, which is scheduled to take effect
during Bucharest’s presidency of the EU Council. In turn, Romania and Bulgaria
undertook to work together on sensitive issues such as migration. The two
interior ministers also agreed to deploy Romanian police forces this month on a
new mission in Bulgarian resorts, where many Romanian tourists are expected to
spend their winter holidays.

The next informal meeting of the Justice and Home Affairs Council is
due to take place in Bucharest on February 6-8, 2019. In the first 6 months of
next year, Romania is also set to host tens of other high-level events in the
field of home affairs, including the EU – US Justice and Home Affairs
Ministerial Meeting.

7 December 2018
November 13, 2018 UPDATE

REPORTS – In its CVM report issued on Tuesday, the European Commission recommends that Romania should immediately suspend the application of the amended justice laws and the subsequent emergency ordinances passed by the Government. They should be revised in keeping with the provisions set by the Venice Commission, the Group of States Against Corruption and the European Commission. According to the Commission, the procedures for the dismissal of prosecutors should be suspended and the implementation of the changes brought to the Criminal Code and the Code of Criminal Proceedings frozen. The First Vice-President of the European Commission Frans Timmermans has stated that Romania used to make progress in terms of reforms, but, unfortunately, that has stalled in the past months. As regards the justice field, steps have been taken backwards, by amending the justice laws, putting pressure on judges and also with regard to the fight against corruption, Timmermans has said. He has also spoken of the freedom of the press and its importance in watching the reform of the judiciary and the fight against corruption. Also on Tuesday, the European Parliament adopted a resolution that stresses the deep concern for the reform of the judicial and criminal legislation in Romania, which might structurally undermine the independence of the judiciary and its capacity to effectively combat corruption in this country, and therefore weaken the rule of law. The European Parliament urges Bucharest authorities to stop any measures that might decriminalize corruption and to implement the national anti-corruption strategy. Also, the MEPs urge the Romanian Government and Parliament to implement all recommendations made by the Venice Commission, the Group of States Against Corruption and the European Commission and to refrain from any reform that has the potential of harming the rule of law, including the independence of the judiciary. The European Parliament has also condemned the violent and disproportionate intervention of the gendarme forces during the anti-Government protest held in August.

REACTIONS – Romania is back to where it was 11 years ago, before its EU accession, and the Dragnea – Dancila Government has erased all the efforts made for integration, said president Klaus Iohannis on Tuesday, after the publication of the critical report on Romania drawn up by the European Commission in relation to the Cooperation and Verification Mechanism and the European Parliaments critical resolution on the rule of law in Romania. Prime Minister Viorica Dancila believes that Romania should not be judged by such resolutions, which are more or less based on reality, and has stated that Bucharest will respond to the criticism. In turn Liviu Dragnea, the president of the Social Democratic Party, the main party in the ruling coalition, has stated that beyond any resolution or report, there are other things that are important to Romania: education, health, infrastructure, agriculture, higher incomes and a predictable and favorable business environment. Calin Popescu-Tariceanu, the president of the Alliance of Liberals and Democrats, the junior partner in the coalition, has stated that the EC has unjustifiably stepped into the political area, and the CVM report is mainly technical. The president of the opposition National Liberal Party, Ludovic Orban, has stated that the European Commission and the European Parliament have clearly shown that the Romanian government and the ruling coalition have no interest in the European principles and values. The European Parliaments resolution and the CVM report are not against Romania, they are against the Romanian Government and the parliamentary majority, which for two years have done nothing but undermine the independence of the judiciary and try to take Romania out of the EU, the president of the opposition Save Romania Union, Dan Barna, has also stated. The signal send by Brussels is unprecedented and shows that the current power has crossed the red line, said the president of the Peoples Movement Eugen Tomac, also stressing that the warning could turn into something harsher if the Government does not take into account the recommendations made.

APPOINTMENT – On Tuesday, president Klaus Iohannis signed the decree appointing George Ciamba Minister Delegate for European Affairs. Ciamba replaced Victor Negrescu, who resigned last week. The president stated he would take a quick decision regarding Ciamba, given Romanias preparing to take over the rotating presidency of the EU Council on January 1st. Also on Tuesday, the standing bureau of the Social Democratic Party, the senior party in the ruling coalition, nominated Ecaterina Andronescu for the office of minister of education. The seat became vacant after the resignation of Valentin Popa in September.

DEFICIT – In the first nine months of the year, Romania registered a 6.6 billion Euro balance of payments deficit, up by 38.5% as compared to the same period last year. According to data centralized by the National Bank of Romania, foreign direct investment stood at 3.5 billion Euro on the first three quarters, 6% less than in 2017. Also, in the first three quarters of 2018, the overall foreign debt went up by 634 million Euros, reaching 98 million, of which 30.5% is short-term debt.

POVERTY- The lowest decrease in the number of people at risk of poverty as a result of unemployment benefits from the state or dwelling aid was registered last year in Greece (16%) and Romania (17%), data released by Eurostat on Tuesday show. In nine member states the decrease rate was below 25%, whereas the European average stood at some 32%. According to the latest report made public by Eurostat last month, over a third (35.7%) of Romanias population was at risk of poverty and social exclusion in 2017, a worse situation in the EU being registered only in Bulgaria, where 38.9% of the population runs this risk.

EBRD – Transparency in drafting government policies in the 38 countries where the European Bank for Reconstruction and Development is activating has not improved since the start of the decade, with some exceptions, like Kazakhstan, Romania and Ukraine, the annual transition report issued by that financial institution shows. The document underlines the progress made by countries in six key domains, from competitiveness and resilience, to the way they are governed. According to the latest forecast issued this month by EBRD, Romanias economy will register a growth rate of 4.2% in 2018, to go down to 3.6% next year. EBRD is one of the major institutional investors in Romania. The bank has invested so far some 8 billion Euros in the country, in over 400 projects. In 2017 alone, EBRD invested some 550 million Euros in Romania. Over 500 million have been invested in the private sector, thus reaching the highest level of investment in the past seven years.

GAUDEAMUS – The 25 edition of the Gaudeamus International Fair, a landmark of the book market in Romania, an event organized by Radio Romania opens its doors on Wednesday. Gaudeamus 2018 will unfold under the auspices of a triple anniversary: the Great Union Centennial, 9 decades since the first broadcast aired by Radio Romania, one of the oldest radio stations in Europe and the 25th edition of the Gaudeamus Fair.

13 November 2018
November 8, 2018 UPDATE

MEETING – The Romanian Interior Minister Carmen Dan is attending in Washington the EU-US Justice and Home Affairs Ministerial Meeting. At the meeting, Carmen Dan will present Romanias priorities in the field during its presidency of the EU Council in the first half of next year. The EU is represented in Washington by the Austrian ministers of the interior and justice, on behalf of the current Presidency of the Council of the European Union, the members of the delegation representing Romania, the country that is to take over the Presidency in January 2019, and the European Commissioners for migration, home affairs and security.

ACCUSATION – The National Anticorruption Directorate claims that the Speaker of the Romanian Senate, Calin Popescu-Tariceanu, indirectly received 800,000 USD dollars worth of material benefits from an Austrian company while he was Romanias Prime Minister, in 2007-2008. The amount accounted for a 10% commission from the value of addenda and was used for the benefit of the dignitary. The case was opened in 2018, by bringing together three criminal cases, of which one was taken over by the anticorruption prosecutors, at the request of the Austrian judicial authorities. In a communiqué issued at the request of Agerpress News Agency, the Directorate also mentions the fact that, in keeping with the legal and constitutional provisions in force, prosecuting Tariceanu for bribe-taking is possible only if endorsed by the Senate. Previously, Calin Popescu-Tariceanu had stated the Government made no payment in relation to the Microsoft licenses during his term as prime-minister. We recall that several people, including ministers, have been prosecuted in the so-called Microsoft case, for acts of corruption in relation to license agreements concluded for schools, worth hundreds of millions of dollars.

EC – On Thursday, the European Commission decided to send Romania a formal letter calling on the Romanian authorities to stop using the split VAT payment mechanism. According to the Commission, the mechanism runs counter to both the EU regulations in the field and the freedom to provide services. In another move, also on Thursday, the Commission noted that an energy producer in Romania – the Hunedoara Energy Complex – has received incompatible state aid amounting to 60 million Euros. According to the EC Representation in Romania, the state must recover the illegal aid and the related interests.

JUDGE PANELS – On Friday, the High Court of Cassation and Justice will designate, by drawing lots, the members of the five-judge panels for 2018. There are four panels consisting of five judges, two for criminal and two for civil matters. On Wednesday, the Constitutional Court admitted the notification filed by prime-minister Viorica Dancila regarding the formation of the 5-judge panels and decided there was a constitutional conflict between Parliament and the High court of Cassation and Justice. The Constitutional Court has decided that the latter should urgently take measures to form the 5-judge panels.

EPP – On Thursday, the German politician Manfred Weber was elected candidate of the European Peoples Party (EPP) for the seat of president of the future European Commission (2019-2024). Weber, who got 80% of the votes, defeated the Finish Alexander Stubb. The Romanian parties members of EPP, the National Liberal Party, the Democratic Union of Ethnic Hungarians and Peoples Movement Party supported Weber. On Wednesday, the first day of the Congress, EPP adopted a resolution calling for the observance of the EUs fundamental values. The document reads that nationalist and populist extremism, disinformation, discrimination and failure to observe the rule of law are the biggest threats against freedom and democracy in Europe, after the fall of the Iron Curtain. We recall that the next EC is to be formed after next years elections for the European Parliament, due in spring.

AIR BASE – On Friday, the Romanian Defense Minister Mihai Fifor and his Canadian counterpart Harjit Singh Sajjan pay a visit to the Mihail Kogalniceanu air-base in south-eastern Romania. According to the Romanian Defense Ministry, the two officials will meet with the Canadian detachment deployed in Romania. The 135 Canadian soldiers are taking part in air policing missions, under NATO command.

HANDBALL – The Romanian mens handball team Dinamo Bucharest defeated Ademar Leon of Spain on home turf on Thursday, in a match part of Champions Leagues Group D. The victory brought Dinamo 10 points and made it top of the group. The main contenders for the qualification to the play-offs, are Ademar Leon, with 9 points, and Wisla Plock (Poland) and Elverum (Norway) with 8 points each. This is the third season for Dinamo Bucharest in the most important inter-club competition in the world.

8 November 2018
October 18, 2018 UPDATE

EU COUNCIL MEETING – Romania’s
president Klaus Iohannis on Friday is attending the 12th Asia-Europe
Summit in Brussels. On Wednesday and Thursday, President Iohannis attended the
European Council meeting. Talks focused on migration, security and the future
of the Eurozone. According to Radio Romania’s correspondent, EU leaders agreed
on a set of measures to prevent cyber-attacks and protect EU citizens against
aggressions of any type. With respect to migration, EU leaders highlighted the
need to cooperate with transit countries and set clear objectives for Eastern
Mediterranean, so as to put a stop to the flow of migrants. In his address, the
president said that preventing and combating radicalization and terrorism
should remain top concerns for Member States.

OMBUDSMAN – The Ombudsman on Thursday demanded additional
information from the Government and the Justice Ministry over the notifications
regarding the Government emergency decree on the justice laws, filed by the Prosecutor
General’s Office, the Save Romania Union and National Liberal Party in
opposition, who claim that several points in the decree go against the
Constitution. The Ombudsman was requested to challenge the decree at the
Constitutional Court. The emergency decree stipulates, among other things, that
prosecutors with the Prosecutor General’s Office, the National Anticorruption
Directorate and the Directorate for Investigating Organized Crime and Terrorism
should have a seniority of at least 10 years. Prosecutor General Augustin Lazar
said the new regulations could result in numerous irregularities in the system,
while Justice Minister Tudorel Toader said the decree only transposes the
points of view of the European Commission, the Venice Commission and the
Superior Council of Magistracy.

VISIT – Romanian Prime Minister Viorica Dancila on
Thursday continued her visit to the Arab Emirates. The Romanian official had
talks with Dr. Sultan Ahmed Al Jaber, State Minister for Economic Affairs and
Trade, the chairman of the Abu Dhabi National Oil Company. Talks focused on new
ways of consolidating bilateral relations in terms of economic cooperation and investment.
On Wednesday, the heads of government in Bucharest and Abu Dhabi adopted a
joint declaration on the establishment of a strategic economic partnership
between the governments of Romania and the United Arab Emirates. The document
underlines the important regional role played by the latter and Romania’s
membership of the EU, which provides significant opportunities of bilateral
cooperation in priority sectors for Bucharest, such as trade, investments,
industry, agriculture, the financial and banking sector, energy, transport and
infrastructure, the IT sector, education, culture, research and innovation and
tourism. The declaration also highlights the important role of the Romanian and
Emirati communities in the respective countries in the economic, social and
cultural development of the two states. Also on Wednesday, the Romanian prime
minister visited the Sheikh ZayedMosque,
after on Tuesday she travelled to Dubai for talks with the ruler of Dubai, Sheikh Mohammed
Bin RashidAlMaktoum,
whom she presented with the most recent investment opportunities in Romania.
Viorica Dancila will next travel to Kuwait, the last leg of a tour that also
took her to Turkey. She said the purpose of these official visits is to promote
economic relations.

AFRICAN SWINE FEVER VIRUS – A delegation of the European Commission
will carry out an audit in Braila, southeastern Romania, until October 25, to
see if the authorities have taken the appropriate steps in combating the
African swine fever, the virus that led to over 200,000 pigs being culled in
this county. A report will be made public compiling their conclusions on the
European Commission website. The audit
follows as Romania has been taking part, since 2015, in a multiannual European
programme designed to combat the African swine fever, 75% of which is funded by
the EU. Bucharest pledged to spend the money, along with its own contribution,
to prevent the spread of this disease. The number of outbreaks has reached
1,021 in 260 towns in villages in 14 counties, the National Veterinary and Food
Safety Authority announced on Thursday. According to centralized data, some 107
boars were reported as infected, while the total number of pigs culled so far
stands at 350,000.

REGIONAL DEVELOPMENT – Romania has managed to recover 220 million
euros accounting for around a quarter of the European funds allocated under the
Regional Operational Programme, the European Commissioner for Regional Policy
Corina Cretu told Radio Romania. Thus, some of the 800 million euros available under
this programme and which Romania was no longer able to spend by the end of the
year due to a lack of applications, have been redirected to the development of
small and medium sized enterprises and to purchasing medical equipment and
ambulances for all counties in Romania. In another development Commissioner
Cretu attended the 7th edition of the Annual Forum of the EU
Strategy on the Danube Region (EUSDR), hosted by Sofia. The EU official said
the Danube Delta boasts huge potential with tourism bringing great economic
benefits to the entire region. On November 1 Romania will take over the
presidency of the EUSDR for a year.

TENNIS – Romanian and world no. one in
women’s tennis Simona Halep has withdrawn from the WTA Finals held in Singapore
between the 21st and the 28th of October and which brings
together the world’s best eight players in 2018. Halep was recently diagnosed
with a herniated disk injury which also forced her to forfeit the Moscow
tournament and withdraw in the first round in Beijing. Halep, who won the
French Open this year, ends the year in the top position regardless of the
result in Singapore. Playing in the WTA Finals are Caroline Wozniacki of Denmark, Angelique Kerber of Germany, Naomi Osaka
of Japan, Karolina Pliskova of the Czech Republic, Elina Svitolina of Ukraine, Petra
Kvitova of the Czech Republic, Sloane Stephens of the United States and Kiki
Bertens of The Netherlands.

(Translated by C.
Mateescu & V. Palcu)

18 October 2018
July 8, 2018 UPDATE

MEETING — Romania’s Prime Minister Viorica Dancila on Tuesday is to meet EU officials, including the European Commission president Jean-Claude Juncker and vice-president Frans Timmermans, the European Commission reports. On Friday, Justice Minister Tudorel Toader announced he would meet EU Commissioner for Justice Vera Jourova in Austria. The European Commission previously announced it was closely monitoring the developments in Romania regarding the justice system and would not hesitate to take action to ensure the modifications brought to the Criminal Code observe the legislation in the field. Backed by the ruling coalition, the modifications sparked criticism from President Iohannis, the right-wing opposition and civil society, who claim that the new provisions favor criminality and are aimed at benefiting certain people, including Social-Democrat leader Liviu Dragnea.

IMPEACHMENT — The left-wing opposition in Romania made up of the Social-Democratic Party and the Alliance of Liberals and Democrats on Monday will decide whether they will move to impeach President Klaus Iohannis. Social-Democrat leader Liviu Dragnea, who is also the Chamber of Deputies speaker, accused the president of violating the Constitution, excessively delaying a decision to dismiss the head of the National Anticorruption Directorate, Laura Codruta Kovesi. On May 30, the Constitutional Court ruled the president must sack Kovesi, noticing a constitutional conflict between the head of state and the Government. Justice Minister Tudorel Toader had previously notified the Court after the President dismissed his request to remove Kovesi from office as ungrounded. The Court’s ruling has sparked fierce reactions from the opposition and magistrates, as well as anti-government protests.

EXTREME WEATHER — The National Weather Administration has issued a code orange alert against heavy rain for 18 counties in the south and southwest, in place until Tuesday evening, as well as a code yellow alert for the entire country, including the capital-city Bucharest. During the interval large quantities of rainfall are expected in local areas. Hydrologists have also issued a code yellow warning against floods, in place until Monday, for the rivers in 13 counties. Temperatures are also expected to drop sharply during the interval. The National Emergency Intervention Inspectorate has announced over 20,000 firefighters with over 7,000 technical equipment are ready to intervene in calamity-stricken areas. The heavy rainfall last week caused devastating floods killing five people, destroying hundreds of homes and flooding numerous national or county roads, also affecting large areas of farmland.

OLYMPIAD — Some 1,500 high school students from over a hundred countries on five continents are taking part in the International Mathematics Olympiad in Cluj-Napoca. The event lasts a week and is the oldest and most prestigious event of its kind. The first edition was held in 1959 in Romania. Romania and Bulgaria are the only countries that have taken part in every edition of the Olympiad. Attending the opening ceremony was President Klaus Iohannis, who expressed hope Romania would become an attraction for research in the field of mathematics.

LIST — The Sanitary and Food Safety Authority in Romania made public a list of frozen foodstuffs sold in neighboring Hungary, infected with Listeria, a foodborne disease-causing bacteria that can lead to blood poisoning or meningitis. Nine people died in Europe after having consumed these products, with dozens of other cases reported in Great Britain, Austria, Denmark, Finland and Sweden. The incubation period goes up to 70 days, with the risk of spreading still active. The European Food Safety Authority recommends the thermal processing of frozen ready-to-eat products.

AWARD — Radu Jude’s I Do Not Care If We Go Down in History as Barbarians won the Crystal Globe award at the Karlovy Vary Film Festival in the Czech Republic, as well as the Europa Cinemas Label award, set up in 2003 to help improve the distribution and promotion of European films. This is Radu Jude’s sixth feature film, and the first Romanian film to win the grand prize in this festival.

WIMBLEDON — The tennis pair made up of Romanian Mihaela Buzarnescu and Marcin Matkowski of Poland qualified to the round of 16 of the mixed doubles at Wimbledon, after defeating Divij Sharan of India and Alicja Rosolska of Poland, 6-3, 7-5. The two will next play Henri Kontinen of Finland and Heather Watson of Great Britain. Buzarnescu has also advanced to the women’s doubles’ round of 16, alongside another Romanian, Irina Begu. She was unfortunately knocked out from the singles’ main draw, the same as world number 1 Simona Halep.

(Translated by V. Palcu)

8 July 2018
The European report on product quality

What Romanians
had long found out has ultimately been agreed upon in Brussels too: the quality
of food products sold in East European countries, including Romania, as well as
Bulgaria, Slovakia, Hungary or Poland, is inferior to that of similar products
sold in Western countries.

Formerly,
officials from all those East European countries demanded that multinationals
be no longer allowed to use low quality ingredients on the cheaper markets
where they deliver their products. For instance, 9 of the 29 food products
under scrutiny by the Institute of Hygiene and Veterinary Public Health in
Bucharest last year were different.

Those products
included canned fish, ham, bacon and bologna. These days, a report debated by
the MPs in the Committee on the Internal Market and Consumer Protection in the
European Parliament says that the problem of dual quality has been reported in
East European countries and the phenomenon must be made known at all levels, so
that pressure should be put on producers.

The question
which raises itself automatically is whether there was the producers’ intention
to cheat consumers. Moreover, the food labeling law must be amended because, as
Euro MPs say, the products sold with a similar packaging across the EU must be
the same.

Actually, the
discussion should start from the fact that all EU consumers should be treated
in the same way. Furthermore, Euro MPs argue that quality tests should be extended
to other products too and not only to the food products because there are
differences in those cases too.

According to the
Brussels correspondent for Radio Romania, the measures taken by the European
Parliament add up to those already announced by the European Commission, which
has developed a new methodology of comparing the quality of food products sold across
the EU. That new methodology aims to clarify and strengthen the consumers’
rights, prohibiting the practices of applying double standards in the matter.

The national
authorities in charge of food security and consumers’ protection are
responsible for ensuring that the food placed on the Single Market complies
with the relevant EU legislation. Consumers must also be informed about key
characteristics set in the EU food labeling law and should not be misled by the
packaging.

Under the
coordination of the Joint Research Centre, laboratories in several EU member
states will apply that methodology in a pan-European testing campaign to
collect data on the scope gained by the dual product quality. The first results
are to be made public at the end of this year.

19 June 2018
The EU Gathers Ranks

This is a European rule dating back to 1996, when Europe
went around an embargo against Cuba, a disagreement that was eventually settled
at a political level.

This law is back at the forefront as the US decided to
pull out of the Iran nuclear deal, and has to be adjusted by August 6, when
Washington starts applying sanctions. This set of blocking status rules allows
European companies and courts to avoid third party sanctions, and stipulates
that no foreign court rules need apply to EU countries. It is about protecting
international companies where there is European involvement in the face of
decisions from the American administration, as explained by Euro MP Iuliu
Winkler.

Iuliu Winkler: The
United States has parted with multilateralism. The US is in a process of
attacking the World Trade Organisation. They are discontent with the
Organisation, they are discontent with the multilateral trade agreements into
which, according to president Trump, the US has been duped. Now the US is
pulling out of an accord that, in my opinion, is crucial for the Middle East.
This assault on multilateralism is the expression of the lone wolf tactics that
President Trump follows. Multilateralism is essential for Europe and the EU
both for trade and the economy, as well as for geopolitical and strategic
international relations.

Brussels has also decided to allow the European
Investment Bank to facilitate European investment in Iran. The head of European
diplomacy, Federica Mogherini, said that there was no alternative to the
agreement with Iran, in reply to Secretary of State Mike Pompeo, who invoked 12
drastic conditions for a new accord with Tehran, which limited the Iranian
nuclear programme in exchange for lifting sanctions.

German Chancellor
Angela Merkel said that no one in the EU believes that the Iran deal is
perfect, but that it is needed, and there is a need to continue negotiating
with Iran on various other themes, including that of ballistic missiles.
Analysing the EU reaction to the decision made by the White House, Adrian
Mitroi, professor of international relations with the Bucharest School of
Economics, said that Europe’s swing between trade and global strategy is very
complicated.

According to
him, we are in a very interesting, and possibly critical area, an area in which
the pressure is on the price of oil, which on short term would probably result
in a slight economic slowdown. One should not forget in this equation the
dependence of Europe on Russian natural gas, and the fact that Washington is
against these trade relations. We asked Adrian Mitroi if the EU may hope to
become one of the powerhouses of the planet alongside the US, Russia, and
China.

Adrian Mitroi:
Honestly, I don’t think so. The EU has lost a lot in terms of foreign policy.
Europe is not too active in foreign policy terms. The American continent has
managed quite well, the EU does not have a single treasury, which means that
policies are slightly offset. Here we are more sensitive to a stronger dollar or
higher interest rates on the dollar. The fact that we are in a full process of
reforming the EU, and I include here the economic part, a common treasury, all
these good things that would have granted us economic strength, are slowing us
down.

However,
according to Adrian Mitroi, Europe has the great advantage of having more
things that tie people together than the other way around.

1 June 2018
The Week in Review (April 30-May 4)

Doina Cornea, a symbol of anti-communist resistance, has passed away

A symbol of anti-communist resistance in Romania, Doinea Cornea passed away on Thursday night after a long suffering. Born 89 years ago into a family of high moral and religious stature, Doina Cornea was a university professor with the French Department of the Babes-Bolyai University in Cluj and in the 1980s she became famous for her public criticism of the Communist regime. Her letters were read on international radio stations and stirred the anger of the Romanian officials. As a result, she was fired from the university, and was arrested and beaten by the political police, the Securitate. She became one of the central figures of the anti-communist Revolution of 1989 and was one of the first to protest against the way in which the National Salvation Front, which took the reigns of power after the fall of the Communist regime, ruled the country. Pope John Paul II awarded her the Order of Saint Gregory the Great and King Michael I awarded her the Order of the Star of Romania. She also received the National Order of the Legion of Honor, the highest French order of merit for military and civil merits.

President Iohannis sends the justice laws back to the Constitutional Court

Romania’s President Klaus Iohannis has decided to send to the Constitutional Court the recently adopted justice laws. Rushed through parliament in December, in the form proposed by the ruling coalition made up of the Social Democratic Party and the Alliance of Liberals and Democrats, the laws had reached the stage where they were to be promulgated by the president. The president, however, has announced that he will send the laws to the Constitutional Court and will notify the Venice Commission. According to the head of state, the laws are not in line with either the domestic constitutional framework or the European standards regarding the status of magistrates, judicial organization and the functioning of the Higher Council of the Magistracy. Klaus Iohannis has stated that the new provisions damage the prosecutors’ status and enhance the risk of the justice process as such being blocked. Also, the president has stressed, structures are being created with the aim of controlling the magistrates and eliminating guarantees of the judiciary’s organizational independence, by enhancing the role of the Justice Minister, to the detriment of the Higher Council of the Magistracy. The ruling coalition believes that the head of state merely wants to delay the application of the laws, but the opposition has hailed the president’s move and has called for the resignation of the Justice Minister Tudorel Toader. In parliament, the Special committee in charge of analyzing the justice laws has started talks on the changes brought to the Criminal Code, the Criminal Procedure Code and the Civil Procedure Code.

The European Commission maintains its forecasts regarding Romania’s economic growth in 2018 and 2019

The European Commission has maintained its forecasts regarding Romania’s economic growth this year and next year, to 4.5% and 3.9% respectively. In its spring economic forecast published on Thursday, the Commission also signals the fact that the budget deficit would reach 3.4% of the GDP in 2018, also as a result of the significant increase in salaries in the public sector. At the same time, the inflation rate, which has been growing since 2017, will maintain its upward trend, though the pace will not be that fast in 2019. As regards the European level, economic growth is still solid, and that has helped reduce the level of unemployment down to the lowest rate in the past 10 years, as the European Commissioner for Economic and Financial Affairs Pierre Moscovici has announced. The EU and the Eurozone economy will keep growing by 2.3% this year and 2% in 2019, which confirms the Brussels officials’ statement that Europe is not just in a stage of economic re-launch, but it is also solidly expanding.

World Press Freedom Day was celebrated across the world on may 3rd

World Press Freedom Day was celebrated across the world through various events. The UN Secretary General Antonio Guterres said in a message conveyed on the occasion that the promotion of a free press represents everybody’s right to know the truth. In the past years, however, the media has been faced with several challenges, in particular the ‘fake news’ phenomenon, and in some countries even prestigious institutions have been accused of promoting this phenomenon. Moreover, according to the 2018 World Press Freedom Index, established by the Reporters Without Borders organization, the feelings of hate and hostility towards journalists have grown in the past years. World Press Freedom Day is also an opportunity to pay homage to those journalists who died while doing their job. According to the latest toll, 65 journalists were killed across the world in 2017. in Romania, the latest report, launched by Active Watch, shows that the mass-media in Romania is still used for propaganda, disinformation and intoxication. In the World Press Freedom Index Romania ranks 44th out of 180, ahead of the US and Italy, but after South Korea.

5 May 2018
May 2, 2018 UPDATE

JUSTICE LAWS – Romania’s president Klaus Iohannis on Wednesday announced he would submit the package of justice laws to the Constitutional Court and notify the Venice Commission. According to Iohannis, in its present form, the package of laws meets neither the standards of the rule of law, nor the expectations of the Romanians. The laws do not fit the legal framework and do not meet the European standards, Iohannis also said. The Romanian head of state has argued the new amendments may hinder the justice process allowing for the setting up of new structures that may put pressure on the magistrates. The president also said that after the Constitutional Court has its say over the issue he would make a new assessment and decide if a new revision of the amendments is needed. The ruling coalition, made up of the Social Democratic Party and the Alliance of Liberals and Democrats, says that the President’s move is an attempt to postpone the enforcement of the justice laws which have already been adjusted in keeping with the Constitutional Court’s and the Venice Commission’s rulings.

CENSURE MOTION — The National Liberal Party, the main opposition party in Romania, on Wedensday tabled a simple motion against the health Minister Sorina Pintea. The Liberals reformulated the text after the Chamber of Deputies’ leadership rejected the document last week, as it also addressed the labout Minister, which is against the rules. The Liberals argue that Sorina Pintea is handling in a faulty manner the problems in the health system.

HEALTHCARE – Romania’s Health Minister Sorina Pintea announced she would inform Prime Minister Viorica Dancila about the problems signalled by the representatives of the healthcare trade unions. Last week, thousands of medical employees staged large-scale protests in Bucharest. Numerous categories of personnel had seen significant pay cuts after the implementation of new regulations aimed at capping their benefits. Trade unions have threatened with a token strike on May 7th that can be followed by an all-out strike four days later.

EC – European Union members that fail to meet EU standards on the rule of law could lose access to its financing, according to a proposal by the European Commission on Wednesday. The European Commission President, Jean Claude Junker explained that the plan has general application and is not aimed against any member state. On May 2nd the European Commission started negotiations on the next EU budget, proposing to plug the gap left by the UK’s living the community bloc by cutting traditional policies and focusing on migration and security challenges.

PROSECUTION – Former deputy prime minister and interior minister, Gabriel Oprea, is being prosecuted for manslaughter in the case regarding the road accident that caused the death of police officer Bogdan Gigina in October 2015. The police officer died while providing official escort to Oprea, who was serving as interior minister at the time.

LAW – The Romanian Minister Delegate for European Affairs, Victor Negrescu has hailed the coming into force of a directive on the consular protection for European citizens, including Romanians, who live or travel outside the EU. Under the document, the EU citizens, who are in difficulty in a third country, have the right to benefit the protection of embassies and consulates of other countries in the community zone, if their own country isn’t represented. The EU countries must offer the non-represented European citizens the same assistance they offer their own citizens such as, assistance in case of death, severe accidents or disease; assistance in case of arrest or detention, assistance when a citizen falls victim of an attack or crime, assistance and repatriation in emergency cases. The origin country of the applicants will always be consulted by the country, which offers assistance. Applicants can get information concerning the available assistance and to any agreements in force between consulates by contacting the EU delegation in the respective country. (Translated by Elena Enache)

2 May 2018
Action plan on military mobility

In accordance with the commitment made by Jean-Claude Juncker on building a genuine Defense Union by 2025, the European Commission and the EU High Representative for Foreign Affairs and Security Policy, Federica Mogherini, presented at the end of March an action plan aimed at improving military mobility inside and outside the European Union. Facilitating the movement of troops and military equipment is essential for the security of European citizens and for building a more efficient, integrated Union with better response capabilities, Brussels explained.

The document identifies measures aimed at removing physical, procedural and regulatory barriers. Close cooperation among states is viewed as essential for implementing this action plan. The action plan builds on a roadmap on military mobility drafted within the European Defense Agency. The European Commissioner for Transport Violeta Bulc explained the reasoning behind these measures:

Violeta Bulc: “Improving military mobility in the European Union is one of the very practical steps towards a fully fledged defense union by 2025. Second, we must be able to quickly deploy troops either within the EU or able to launch military operations abroad, and of course to do so we need infrastructure that is fit for this purpose. The EU is still facing a number of physical, procedural, regulatory barriers hampering military mobility, which is why we are here today.

International political developments are hard to predict, but, as we said before, the European Union needs a common defence approach and good coordination of activities, the European Commissioner also said. The Commission Vice-President and High Representative for Foreign Affairs and Security Policy Federica Mogherini said: “Promoting peace and guaranteeing the security of our citizens are our first priorities as European Union. By facilitating military mobility within the EU, we can be more effective in preventing crises, more efficient in deploying our missions, and quicker in reacting when challenges arise. It will be another step in deepening our cooperation at EU level, also in the framework of the Permanent Structured Cooperation we have formally launched recently, and with our partners, starting with NATO. For us, as EU, cooperation remains the only way to be effective in today’s world.

Conducting an analysis of the situation of road and railway networks in Europe to identify suitable routes for military transport is one of the proposals made by the Commission. European officials say this is necessary, among others, because many bridges in the EU have not been designed to withstand the weight or height of oversized military vehicles. On the other hand, the railway infrastructure does not have enough load-carrying capacity for military use. A list will then be made of priority projects and the needed financial support will be established. What does this action plan imply in practice?

Commissioner Violeta Bulc: “We are taking actions on two major fronts: the first front is infrastructure, transport infrastructure. And the main objective here is to make full use of our transport network for dual purposes, military and civilian. Looking back, one of the main purposes of transport networks was to transport armies. Today I am very happy that the primary reason for transport infrastructure in Europe is a civilian reason. But, of course, joint planning for the needs and of course to have infrastructure fit for purpose makes a lot of sense and it will also help us optimise our investments. So, the plan is as follows: first, by this summer, member states are invited to agree on a detailed list of military needs, requirements, and then secondly we will compare these with our transport infrastructure plans and its technical requirements. And this will cover the whole network and all modes. The next, third step, on the basis of what I just said, we will draw a priority list of dual-use projects. This work will be completed in the course of 2019.

The second action front is the regulation and procedures section, the European commissioner went on to say. This focuses on customs and VAT procedures for the transport of dangerous goods, cross-border transportation and other aspects such as combating hybrid threats. In practical terms, it all comes down to harmonising fragmented national regulations, simplifying procedures to ease the administrative burden and cut costs, as all these may cause delays hindering military mobility. Brussels believe that by improving military mobility the EU can become more efficient in crisis-prevention and improve its response time to various challenges.

(translated by: Mihaela Ignatescu)

13 April 2018
March 21, 2018 UPDATE

LETTER — The head of Romania’s left-of-centre government, Viorica Dancila, on Wednesday conveyed the European Commission President Jean – Claude Junker a letter concerning Brussels’ request for clarifications in a number of corruption cases in Romania. Dancila explained that the letter was written after the Romanian press had published a document of the European Commission from October 2012, in which the Justice Ministry in Bucharest was asked to provide information from some of the legal cases opened against some famous Romanian politicians and business people. PM Dancila said the Justice Ministry confirmed that between 2012 and 2018 the European Commission had a number of similar requests. The Romanian PM specified that asking for such information does not comply with the Mechanism for Cooperation and Verification. We remind you that the Mechanism for Cooperation and Verification has been monitoring the justice system in Romania ever since the country’s EU accession in 2007.

EURO – The Bucharest Government on Wednesday passed an emergency decree setting up a committee tasked with drafting a national plan for the country’s adoption of the European currency. According to the Government, the commission will draft a timetable for Romania’s accession to the mechanism for euro adoption and will take the necessary measures to prepare the Romanian economy and society for this important step. The commission will be led by the prime minister and the head of the Romanian Academy as presidents, while the central bank governor and the deputy prime minister for economic affairs will be vice-presidents.

PRESIDENCY – Romanian President Klaus Iohannis will attend on Thursday and Friday the Spring European Council in Brussels. The head of state will point out the fact that Romania wants a close partnership between the Eurpean Union and the UK after Brexit, a partnership that should include economic and commercial cooperation and also cooperation in fields like security, defense and foreign policy. The Spring European Council will focus on economic affairs, in particular on trade. The heads of state or government will also look at a number of the other pressing issues, including taxation, Western Balkans, Turkey and Russia. Under the Leaders Agenda, EU leaders will hold a debate on taxation, in particular in the digital economy. They will focus on how to adapt taxations systems taking into account the growing digital economy what more can be done to fight tax evasion, and how best to ensure synergies at the EU and international level. Finally, EU leaders will also discuss Eurozone and Brexit.

HEARINGS — The Speaker of the Chamber of Deputies, the leader of the ruling Social Democratic Party, Liviu Dragnea, on Wednesday was heard by the High Court of Cassation and Justice in Bucharest in a case in which he is tried for inciting to abuse of office. Three defendants, who had already pleaded guilty in the same file, were also heard on Wednesday. The case refers to the employment of two PSD members at the General Social Welfare and Child Protection Directorate in Teleorman County, in the south, when the incumbent Social-Democratic leader was the County Council President. According to anti-corruption prosecutors, the two employees didn’t go to work and didn’t carry out any of the activities stipulated in their employment agreement, actually doing their job exclusively at the headquarters of the PSD county organisation, led by Liviu Dragnea. He also got a suspended two-year sentence in another file, for attempted electoral fraud.

EP ELECTIONS — The future elections for the European Parliament will be held over May 23-26, 2019, according to a decision issued by the EU European Affairs ministers who gathered in Brussels to attend the General Affairs Council. European parliamentary elections are held every five years. The structure of the new European Parliament will have 705 seats, as compared to 751 at present. The difference is the result of Great Britain’s leaving the community bloc. 46 of the 73 seats held by Britons will be slashed and the rest of 27 will be distributed to the EU member states which are under-represented in the European Parliament. Romania will hold 33 seats, that is one more seat than in the current legislature.

HANDBALL — Romania’s national women’s handball team on Wednesday was defeated by Russia, 25-30, away from home, at Togliatti, in its third match of the Euro 2018 qualifiers. The round match will be played in Cluj, north-western Romania on Sunday. With two earlier wins, the Romanians coached by Spaniard Ambros Martin have 4 points, just like Russia, followed by Austria, with 2 points, and Portugal with zero points. The first two teams in the group will qualify for the final tournament due in France in December. (Translated by Elena Enache)

21 March 2018
Romania sees record economic growth

The economic growth that Romania posted last year is definitely impressive. The National Statistics Institute (INS) announced on Wednesday that the country’s economy went up by 7% in 2017 as against the previous year. This is the most significant advance since 2008, a period also marked by sustained economic growth and followed by recession and austerity. According to the INS, in the last quarter of 2017 Romania had the biggest growth of all the 28 EU member states. An Eurostat report confirms this situation.

But how can we explain this significant economic growth in a country where the living standard is one of the lowest in Europe? According to the European Commission, the main engine for growth has been household consumption, stimulated by smaller taxes and an increase in salaries, but with little public investment for the second consecutive year. Economist Mircea Cosea says that Romania’s economic growth is a sign that real economy, the private economy, has results in Romania irrespective of difficulties.

Mircea Cosea: “If the economy continues to grow due to consumption or mainly due to consumption, this upward trend will not be maintained in the following years. That is because this type of growth is not sustainable, it goes up to a certain maximum level, as it happened in 2017, and then it starts to decrease, possibly as much as up to half its level in the previous year.”

Also on Wednesday, the Central Banks’ Board announced that the expected dynamics of economic growth remains robust in 2018, but it goes down in 2019. The National Commission for Prognosis has recently revised upwards, to 6.1%, the GDP advance estimated for this year, after an initial 5.5% forecast for 2018. Also, the World Bank has recently announced Romania is expected to report a 6.4% increase in its GDP for 2017 as compared to the 4.4% forecast in June.

Economic analyst Cristian Paun has signaled that economic growth is not always the same thing with development and that Romania’s economy has progressed due to the loans it took out, without any single new kilometer of motorway being built recently. He has also said that, if we take a look at the country’s economic growth in the past 25 years we see increased volatility, which means periods of sustained growth, followed by periods marked by spectacular economic decrease.

15 February 2018
February 6, 2018 UPDATE

REP. MOLDOVA – Romanias strategic objective in the relation with the Republic of Moldova is the European integration of the neighboring state, Romanian foreign minister Teodor Meleşcanu said in Bucharest on Tuesday, fresh from the talks with his Moldovan counterpart, Tudor Ulianovschi. The two ministers talked about ways to consolidate Romanias investments in the Republic of Moldova and about prospects of interconnecting the power-grids. The Romanian foreign minister also mentioned the initiative taken by the authorities of several Moldovan towns to collect signatures for the unification with Romania, a move that has been described by the Moldovan President Igor Dodon as being liable to trigger “a civil war. The declarations that are being made at local level on the unification with Romania are, from Bucharests point of view, only the expression of the Moldovan citizens wish to get closer to the citizens of Romania, without any legal implication. In turn, foreign minister and minister of European integration, Tudor Ulianovschi, has hailed Romanias efforts to consolidate the sovereignty of the Republic of Moldova. He underlined that Romania is Moldovas largest trade partner. Ulianovschi has said Moldovas European orientation continues to be an unchangeable and major objective of Moldovas domestic and foreign policy.

STOCK EXCHANGES – The Bucharest stock exchange closed on Tuesday 2% below most indices, in line with European stocks. Stocks the world over, Romania included, fell sharply, after the Dow Jones Industrial Average plunged 1,175.21 points, or 4.6%, causing the biggest financial crisis since 2008. Even though they closed in the red, Europes stock markets avoided Mondays sharp plunge in the USA and Asia, especially in Japan, where the Nikkei lost almost 7%, falling below the key 8,000 technical level for the first time in three weeks. In other Asia markets, the Hang Seng index in Hong Kong reported a sharp 3.9% drop, while the Shanghai stock exchange closed in the red, down by 3.40%.

JUSTICE LAWS – The Romanian Justice Minister Tudorel Toader on Tuesday met in Strasbourg with European Commission Vice-President, Frans Timmermans, to discuss the current stage of the justice laws and the modifications to the criminal codes. Another topics on the agenda was the Romanian Constitutional Court’s ruling on integrity of public office. The European Parliament in Strasbourg on Wednesday will be hosting debates on the rule of law and the reform of the judiciary in Romania. On January 24, the European Commission voiced concern about the latest developments in Romania and called on the Romanian Parliament to reconsider the modifications to the justice laws. The independence of the judiciary and its capacity to fight corruption efficiently are the cornerstones of a strong Romania within the EU, a joint declaration issued by the President of the European Commission, Jean-Claude Juncker, and the First Vice-President of the European Commission, Frans Timmermans, reads. The commission will analyse in detail the final modifications to the justice laws to establish their impact on the efforts to guarantee the independence of the judiciary and the fight against corruption, the joint declaration also reads. Late last year, the ruling majority in Bucharest made up of the Social Democratic Party-the Alliance of Liberals and Democrats in Romania adopted changes to the justice laws, which have been vehemently criticized by magistrates associations and the opposition, on ground they would be aimed to politically subordinate the judicial system.

SALARY LAW – The salary law passed last year was meant to balance the irregularities in the salary scheme, such as being paid different salaries for carrying out the same tasks in public institutions, Labour Minister Lia Olguta Vasilescu says. The Romanian official pointed out the law observes a basic European principle, that of equal pay for equal work. Bonuses have been capped, as in most cases they exceeded the basic salary. Minister Vailescu went on to say that people working half time will be switched to the 8-hour workload. The Government plans to adopt an emergency decree on this, given that people working half time pay minimum-wage contributions to the state budget, exceeding their real-time paygrade.

SECURITY – The Directorate for Investigating Organized Crime and Terrorism has announced, in its 2017 activity report, that Islamic radicalisation in Romania is one of the major risks. Anti-terror prosecutors say the phenomenon has gained ground over the past few years and the law on preventing and fighting terrorism should be updated. According to them, last year Romania didnt face any concrete and consistent terror threats. In another move, anti-drug prosecutors say they seized over 2,000 kilograms of drugs in 2017, with cannabis being the most smuggled drug, brought over particularly from Spain and the Netherlands, by road. As regards cross border drug trafficking, Romania has remained a transit country, placed on the “Balkan route of transport, especially of heroin, cocaine and ecstasy.

ACCORD – The Radio Broadcasting Corporation and the Public Television Station today signed a partnership accord, which will underlie cooperation in terms of informing Romanian citizens, with cultural, educational and social connections. The purpose of the accord is to mutually promote the two institutions and humanitarian campaigns, implementing joint cultural and artistic projects and cooperating with a view to promoting other projects. The accord also recognizes the two institutions major role in society, by promoting national values, providing audiences with innovative and easily accessible cultural programs.

(Translated by D. Vijeu & V. Palcu)

6 February 2018
Economic Forecasts

Just like most European Union Member
States, Romania has reported a significant economic growth for 2017 and is
anticipating similar results for 2018. Our country has all the more reason to
feel proud, as there is a wide percentage gap separating it from the other
Member States. Take France, for instance, whose GDP last year hit its highest
level in the last six years, standing at merely 1.9%. Romania on the other hand
had a 6% growth rate, which made France Press news agency label it as Europe’s
tiger.

On Sunday, the National Forecast Commission made public its
predictions for 2018, upgrading to 6.1% its GDP growth forecast. At the same
time the Commission maintained its forecast for 2019 and 2020 at 5.7% and at 5%
for 2021. Although positive, the forecasts of Romania’s external partners are
less optimistic. The European Commission expects Romania’s economic growth to
stand at 4.4% in 2018, which mirrors the latest forecast of the International
Monetary Fund. The World Bank estimates a 4.5% GDP growth rate, whereas the
European Bank for Reconstruction and Development estimates a growth rate of
4.2%.

Yet what makes Romanian economy so competitive? What is the secret behind
this success, in a country facing severe labour shortage, rising migration and
waning demographics? While the repeated Governments of the ruling coalition in
Romania, made up of the Social-Democratic Party and the Alliance of Liberals
and Democrats, have taken credit for Romania’s bolstering growth in 2017,
Romanian citizens themselves are more likely to have contributed to this
phenomenon, by increasing consumption.

Both economic pundits and Central Bank
experts agree that Romania’s growth rate is likely to slow down in 2018,
evidence of which can be found in the latest forecasts by international
financial institutions. It’s unlikely, experts argue, that the authorities will
be able to uphold the current growth parameters, given that this was the effect
of salary increases. In a recent report, a commercial bank in Romania points
out that the recent fiscal uncertainty and populist measures have kept
investments away.

Moreover, should the Government resort to additional tax
increases and cuts in public spending so as to observe the 3% budget deficit
target, this might further slow down economic growth. As for the industrial
output, it is expected to go up due to the rising demand on European markets.
Still, imports are expected to rise faster than exports, as they cover a large
part of the domestic demand. Therefore the coming years might prove relatively
difficult for the Romanian economy, and the tiger might turn out to be yet
another bubble.

5 February 2018
Economic Forecasts

Just like most European Union Member
States, Romania has reported a significant economic growth for 2017 and is
anticipating similar results for 2018. Our country has all the more reason to
feel proud, as there is a wide percentage gap separating it from the other
Member States. Take France, for instance, whose GDP last year hit its highest
level in the last six years, standing at merely 1.9%. Romania on the other hand
had a 6% growth rate, which made France Press news agency label it as Europe’s
tiger.

On Sunday, the National Forecast Commission made public its
predictions for 2018, upgrading to 6.1% its GDP growth forecast. At the same
time the Commission maintained its forecast for 2019 and 2020 at 5.7% and at 5%
for 2021. Although positive, the forecasts of Romania’s external partners are
less optimistic. The European Commission expects Romania’s economic growth to
stand at 4.4% in 2018, which mirrors the latest forecast of the International
Monetary Fund. The World Bank estimates a 4.5% GDP growth rate, whereas the
European Bank for Reconstruction and Development estimates a growth rate of
4.2%.

Yet what makes Romanian economy so competitive? What is the secret behind
this success, in a country facing severe labour shortage, rising migration and
waning demographics? While the repeated Governments of the ruling coalition in
Romania, made up of the Social-Democratic Party and the Alliance of Liberals
and Democrats, have taken credit for Romania’s bolstering growth in 2017,
Romanian citizens themselves are more likely to have contributed to this
phenomenon, by increasing consumption.

Both economic pundits and Central Bank
experts agree that Romania’s growth rate is likely to slow down in 2018,
evidence of which can be found in the latest forecasts by international
financial institutions. It’s unlikely, experts argue, that the authorities will
be able to uphold the current growth parameters, given that this was the effect
of salary increases. In a recent report, a commercial bank in Romania points
out that the recent fiscal uncertainty and populist measures have kept
investments away.

Moreover, should the Government resort to additional tax
increases and cuts in public spending so as to observe the 3% budget deficit
target, this might further slow down economic growth. As for the industrial
output, it is expected to go up due to the rising demand on European markets.
Still, imports are expected to rise faster than exports, as they cover a large
part of the domestic demand. Therefore the coming years might prove relatively
difficult for the Romanian economy, and the tiger might turn out to be yet
another bubble.

5 February 2018