Tag: European Commission

  • The winter economic forecast of the European Commission

    The winter economic forecast of the European Commission

    Awaited with interest, the winter forecast of the European Commission has brought good news for the first time in the last nine years, saying that all EU economies will grow during the period under scrutiny, that is 2016-2018. According to estimates, even the European countries deeply hit by economic downturn will register economic growth, while unemployment will go down to the lowest rates after the 2008 economic crisis.



    The forecast says that in the Eurozone the GDP has been growing for 15 quarters in a row. Employment is on the rise at an encouraging pace and unemployment keeps plummeting. Private consumption continues to be the engine of recovery and investments keep growing, at a modest pace though. Those prospects are however overshadowed by an uncommonly greater uncertainty triggered by the new US administration, the future elections in certain European countries, as well as by Brexit. According to the European Commissions forecast, the economic growth rate in Romania is one of the highest in the European Union and it is estimated to stay that way until 2018, being backed by fiscal relaxation and pay rises. However, figures are fairly lower than the ones considered in drafting the budget and experts say that there is the danger of the budget deficit target being exceeded. Economic analyst Aurelian Dochia:



    For a few months now, the European economy has been showing signs of recovery. It is obvious that at the level of the European economy, Romania ranks among the countries with the highest economic growth rate. The European Commission predicts that in 2017, the growth rate of Romanias GDP will be 4.4%; although it is a very high rate in the European Union, it is lower than the governments forecast and the figures underlying the budget, which has recently been debated by Parliament. That obviously questions the way in which 2017 is going to end. If the economic growth rate is going to be below the 5.2% rate forecast by the government, it means that the budget revenues will be much lower than expected.



    Senate Speaker Calin Popescu-Tariceanu said on Monday after the winter economic forecast of the European Commission had been made public that Romanias budget deficit in 2017 would be higher than in 2016 but that it would not exceed 3%. (Translated by A.M. Palcu)

  • February 13, 2017 UPDATE

    February 13, 2017 UPDATE

    FORECAST — The European Commission on Monday upgraded its economic growth forecast for Romania in 2017 to 4.4%, with an estimated slowdown in 2018 to 3.7%. Last autumn, the Commission estimated economic growth to stand at 3.9% in 2017 and at 3.6% in 2018. On the other hand, the Commission expects all EU economic to grow over the next two years for the first time in nine years, although has warned against the high level of uncertainty underlying the forecast, also tied to the new administration in the United States, the upcoming elections in some EU states and Brexit.



    REFERENDUM — Parliament on Monday greenlighted the President’s request to hold a referendum on the fight against corruption. The vote was unanimous. On January 24, President Iohannis launched proceedings to hold a referendum, leaving Parliament 20 days to issue a consultative opinion. If the deadline was not met, the President could set a referendum anyways. Under the law, the president must set a date and decide on the question the people will be summoned to answer.



    MEETING — President Klaus Iohannis has sent a letter to Prime Minister Sorin Grindeanu calling a meeting on Tuesday with respect to the draft budget for 2017 and the draft social security budget. Talks will also be attended by Finance Minister Viorel Stefan. The president is expected to sign the two bills voted by Parliament into law. Prior to the vote in Parliament, the president had voiced concern that the budget deficit might exceed the limit of 3% imposed by the EU, saying that the economic growth forecast underlying the budget is much too optimistic. Also, the president wants 2% of the GDP to be allotted to defence, in line with Romania’s commitments at NATO level.



    ENERGY — Romania will have to rely on imports to secure its power consumption, reads a release of Romania’s main electricity supplier Transelectrica. The biting cold this month has got up energy consumption to historic highs, both in terms of electricity and natural gas. On Monday morning Romania’s electricity output of 8,600 was lower than the 9,100-megawat demand. The difference was covered by imports from Ukraine, Hungary and Serbia. In turn, the Energy Ministry claims Romania has no trouble in covering the demand from internal production, while Monday’s imports were to the benefit of the end user.



    INVESTIGATION — Romania’s Prosecutor General’s Office on Monday called on the National Integrity Agency to check the financial statements of Romania’s former president Traian Basescu. The request comes as the money laundering investigation involving Traian Basescu was closed. The decision was taken as there was no evidence attesting to a criminal offence that led to the money laundering. Still, prosecutors have launched another investigation regarding forgery of official statements and has called on the Agency to check the former president’s financial statements filed in 2000.



    STATISTICS — Romania has one of the lowest national minimum wages at EU level, standing at 322 euros after the salary increase operated as of February 1, second-last ahead of Bulgaria, where the national minimum wage stands at 235 euros. In January 2017, ten EU member states from Eastern Europe had minimum wages below 500 euros — Bulgaria, Romania, Latvia, Lithuania, the Czech Republic, Hungary, Croatia, Slovakia, Poland and Estonia. According to Eurostat, the national minimum wage exceeds 1,000 euros in Great Britain, France, Germany, Belgium, the Netherlands, Ireland and Luxembourg.



    MOLDOVA — Ukraine might resume its electricity exports to Moldova, while new border crossing points might be opened on the Moldovan-Ukrainian border. The decision was taken during talks held in Kiev between Moldovan Prime Minister Pavel Filip, his Ukrainian counterpart Volodimir Groisman and Ukrainian President Petro Poroshenko. The agenda for talks included the Transdniestr issue, defining borders and the mutual recognition of properties. The two Prime Ministers also signed a roadmap for developing Moldovan-Ukrainian cooperation in 2017. (Translated by V. Palcu)

  • European Commission Support for Romania

    European Commission Support for Romania

    On Monday the Romanian Foreign Minister, Teodor Meleşcanu, participated, in Brussels, in the EU Foreign Affairs Council meeting. On the sidelines of this meeting Minister Meleşcanu tried to explain the situation in Bucharest and the EU officials responded promptly. The European Commission believes that Romania needs to make progress in the anti-corruption fight and not to cancel the results obtained so far, the First Vice-President of the European Commission, Frans Timmermans told Meleşcanu against the backdrop of the acute tension caused by the attempt of the Government made up of the Social Democratic Party and the Alliance of Liberals and Democrats to amend the Criminal and Criminal Procedure Codes through an emergency government decree.



    Initiated under the pretext that the current Codes should be harmonized with the Constitutional Court rulings but perceived as a way to shield top politicians and officials from the central and local administration from being prosecuted for corruption, the decree, which was eventually withdrawn, prompted hundreds of thousands of angry Romanians to take to the streets and caused consternation in Brussels. Following his meeting with Frans Timmermans and the European foreign policy chief Federica Mogherini, minister Meleşcanu told Radio Romania:



    There are two conclusions drawn after these talks. Firstly, the European officials expressed appreciation for the government’s decision to repeal the decree that sparked the protests. The European officials both agreed that such amendments should be transparent and discussed in a larger context, prior to reaching Parliament. Secondly, the European Commission showed availability to support Romania in finding the best solutions to keep Romania on the path of democracy”.



    Minister Meleşcanu also said that the European Commission was willing to help Romania build new prisons. When asked whether the European officials were concerned with Romania’s vulnerability in the aftermath of the political crisis, minister Meleşcanu answered:



    On the contrary, they had a positive approach, and showed availability to cooperate with Romania so that it should consolidate its present status, which is important not only for our region but also for the EU as a whole.”



    The spokesperson for the European Commission, Margaritis Schinas, pointed out that Brussels was ready to provide Romania with expertise in order to finalize the targets included in the Mechanism for Cooperation and Verification in the field of the judiciary. The mechanism was set up upon Romania’s joining the EU and it has been maintained all these years because the Romanian officials did not seem to persuade the EU of their official commitment to combating corruption.


    (Translated by L. Simion)

  • Concrete solutions to security challenges

    Concrete solutions to security challenges

    This is the first NATO meeting at this level after the US presidential election won by Donald Trump and the last one to enjoy the participation of John Kerry in his capacity as US Secretary of State. Allies approved a series of more than 40 measures to advance how the two organisations work together — including on countering hybrid threats, cyber defence, and making their common neighbourhood more stable and secure. NATO Secretary General Jens Stoltenberg.



    Jens Stoltenberg: “In Warsaw in July, I signed a Joint Declaration with Presidents Tusk and Juncker. We said at the time that we had never done so much together. Now we are going to do even more together. We have identified over forty proposals in several key areas. They are pragmatic, but they are ambitious. On hybrid, we agreed on concrete measures to increase situational awareness. And to bolster our nations’ resilience. On maritime, we enhanced cooperation between Operations Sea Guardian and Sophia in the Mediterranean. Through logistical support and information sharing. On cyber, we will strengthen our mutual participation in exercises, and foster research. NATO and the EU will also work more closely together to build the capacities of our partners. And we have committed to pursue greater coherence in the development of our defence capabilities. So these are only some examples of how we now are strengthening the cooperation between NATO and the EU in a very concrete and pragmatic way.”



    The security of Europe and North America is interconnected. A stronger NATO is good for the EU and a stronger EU is good for NATO. And strengthening this strategic partnership is more important than ever, said the Alliance’s Secretary General Jens Stoltenberg:



    Jens Stoltenberg: “First, we all face new threats and new security challenges, which combine military and non-military means of aggression. Such as hybrid, cyber, terrorism. And neither NATO nor the EU has the full range of tools to respond to these challenges, so therefore we have to cooperate. Second, the EU is taking steps in strengthening European defence, which we welcome. It is important that these steps are complementary with NATO efforts. And third, the strength of the transatlantic bond is vital to our security. Strong ties between NATO and the EU bring North America and Europe closer together. “



    The EU High Representative for Foreign Affairs and Security Policy, Federica Mogherini, has recently announced the initiative regarding the European Defense Fund and a series of measures aimed at helping the EU member states develop research and improve the way in which funds are being spent on common defence capabilities and on setting up an innovative and competitive industrial base in the field of defense.



    After 2020 the European Commission plans to include in the Union’s multi-annual budget a yearly amount of 500 million euros earmarked for a research programme in the field of defense. As for a new NATO-Russia Council Meeting, the US Ambassador to NATO, Douglas Lute, who attended the meeting in Brussels, said it was likely to take place in the following weeks.



    Pundits say the dialogue with Russia is essential, at least over issues regarding the transparent exchange of information related to various military drills, in the context of a high risk of accidents, given that, at NATO’s eastern border, there is an increasing number of troops, military technique and military drills. In November in Istanbul NATO’s Parliamentary Assembly called on the allied governments to increase the Alliance’s defense capabilities, maintain their firm stand on Russia and enhance cooperation in the fight against terrorism, with the deputies adopting several resolutions in this respect.



    NATO must increase its deterrence capacity by increasing the number of troops in the Baltic countries, Poland and Romania by sending over military equipment and by investing in infrastructure so as to allow for the quick movement of NATO troops in case of emergency, the US congressman Michael Turner, former head of the US Parliamentary Assembly said.



    In turn, the Parliamentary Assembly’s new president, Italian Paolo Alli, has asked for solidarity in the current security context while Jens Stoltenberg has called on the allied nations to increase their efforts to reach the set goal of allotting 2% of the GDP to defense. If the European allies and Canada reach the 2% threshold, this means 10 billion dollars will be made available, to improve NATO’s military capacity, Stoltenberg has explained.


  • A project with a major impact

    A project with a major impact

    As much as 310 million euros has been
    invested in this project, called ELI-NP, eagerly awaited by both the European
    Union, and the rest of the world, and 50 scientists from Romania and abroad
    have so far been hired to work on it.






    The European Commissioner for Research,
    Science and Innovation, Carlos Moedas, who has recently visited the Magurele
    Platform, has described it as one of the projects that define his open science
    strategy. I started my career as an engineer, so this project is music to my
    ears, Moedas said. The important thing is for information to reach people in
    the most intelligible form and to help them, the Commissioner said, mentioning
    a chain of scientific breakthroughs, from the discovery of antimatter, which
    led to the possibility to diagnose cancer, to Eistein’s 1915 Theory of
    Relativity, which enabled us to use the GPS technology today.






    Carlos Moedas pleaded for better
    promotion of the ELI-NP, which he sees as a link between sciences and a magnet
    for researchers. He has also said the project is one of the most important on
    the continent and an opportunity for Europe to promote itself as a platform for
    sciences. It is also something that connects science with people’s day-to-day life,
    and we should talk about it more and attract as many people as possible to
    experiment and to make the invisible world observable, Carlos Moedas added.






    The complex in Magurele hosts the nuclear
    physics section of the ELI (Extreme Light Infrastructure) project. The Romanian
    pillar complements the other 2 components of the project, namely the
    high-energy beam science facility in Prague, and the Attosecond Light Pulse
    Source component to be hosted by Szeged in Hungary. The Romanian facility will
    focus on fundamental research on ultra-high intensity laser and laser-matter
    interaction.




    The laser power will reach an impressive
    10 million billion watt each, the equivalent of 100,000 billion light bulbs of
    100 W each. As experts explained, if a laser pulse of such power lasted for one
    second, it would require the entire amount of electricity produced in the world
    for nearly 2 weeks to fuel it. This means the over 1,000 times the combined
    power of all power plants in the world. But, because the light pulse is extremely
    short, of just tens of femtoseconds (one millionth of one billion second), the
    average energy consumption level is reasonable. The Magurele project sets an
    example, scientifically and financially, according to the head of the Atom
    Physics Institute attached to the platform,




    Nicolae Zamfir: This is a symbolic project
    for the European Commission, it is the first piece of major infrastructure
    financed by regional development funds. This is one of the most highly
    appreciated projects in Brussels.






    While attending a meeting dedicated to
    this project, Prime Minister Dacian Ciolos said that involvement was needed on
    the part of local authorities and private businesses to reap the full benefits
    that the Magurele laser could grant:






    Dacian
    Ciolos: This
    research project can generate technological development, it can generate the
    development of university learning, of a university campus, start-up
    enterprises, SMEs working in various domains, using the technology and the
    facilities offered by this laser. There is already an urban development project
    for developing this area. We now have a study of the economic and social
    development potential of the region. Within a few months, by mid-December, we
    aim to have a governance concept for this territorial development project.






    According to the Prime Minister,
    investing in the Magurele laser could generate annual revenues of six hundred
    million Euro, and around seven thousand jobs. Dacian Ciolos added that Romania
    wants to go beyond research and applied research, using the laser as a source
    for local development. One example to this end is the competition for urban
    development for rebuilding the town of Magurele around the laser facility. Four
    students from the Bucharest School of Architecture won first prize with the Sun
    Valley Project, with streets, squares, parks and a balanced approach to
    technology, public transportation and office buildings.

  • May 3, 2016

    May 3, 2016

    The Prime Minister of Romania, Dacian Cioloş, is to submit to President Klaus Iohannis today a request to discharge Vlad Alexandrescu as Culture Minister and a nomination for his replacement. According to political sources, one of the favourites for this appointment is Corina Şuteu, former head of the Romanian Cultural Institute in New York, and currently a state secretary in the Culture Ministry. The dismissal comes against the backdrop of a scandal at the Romanian Opera House in Bucharest, triggered by discontent with the successive appointments for the director post as well as with the substantial imbalances between the salaries paid to the Romanian and the foreign dancers. Protests led to the cancellation of three shows, and PM Ciolos asked for Vlad Alexandrescus resignation. In messages posted on Facebook or published in the media, Vlad Alexandrescu says he was forced out because he upset various interest groups. The head of government said he had not been informed of the problems Vlad Alexandrescu claimed to have been facing and promised he would urge the new minister to carry on the reforms initiated by Alexandrescu.



    The second International Light Festival, Spotlight 2016, will take place in Bucharest between May 5 and 8. Apart from captivating shows, including 15 art installations, building lighting and video-mapping sessions prepared by the guest artists will transform representative buildings in Bucharest, such as the CEC Building, the National History Museum building and the National Military Society buildings. This year, Spotlight is part of the events supporting the candidacy of Bucharest for European Capital of Culture in 2021.



    May 3 is the World Press Freedom Day. On this occasion, the Council of Europe Secretary General, Thorbjorn Jagland, called on the 47 member countries to make sure that their national legislation on defamation does not silence the media and does not weaken public debate. The Council of Europe says it is critical for democracy that the media carry on its monitoring and criticising of those in power. In Romania, some people continue to abuse the journalist profession in order to intimidate, blackmail or trade influence, and some public authorities have attempted to block the access to information on major topics in the recent history of Romania – the 1989 Revolution, the miners riots of June ’90 or the Colectiv tragedy, reads the latest FreeEx report released by ActiveWatch. The document also reveals that the global Press Freedom Index worked out by Reporters without Borders puts Romania in the 49th place in the world, up three positions since the previous year.



    In Romania, companies that pay less than roughly 280 euros per month, the new national minimum wage for full-time employees, will be fined. Under a government resolution endorsed late last year, more than 1.1 million employees benefit from this increase, which took effect on May 1. The raise is intended to bring national minimum wages up to nearly 60% of the national average salary. Still, salaries in Romania remain some of the lowest in the EU, only higher than in Bulgaria, but below those in other former communist states. At the opposite pole, the highest national minimum wages are paid in Luxemburg, 1,923 euro/month, followed by Belgium, Netherlands, Germany and Ireland, where national minimum wages are around 1,500 euro per month.



    The European Commission has warned Turkey that the prospective lift of visa requirements for Turkish citizens may be quickly suspended in case Ankara fails to meet the criteria set by the European bloc. Turkey, which wants its citizens to be able to travel freely in the EU in exchange for enforcing the migrant deal, must meet 72 criteria set by Brussels. The European Commission will decide on Wednesday whether these criteria are complied with, and should the report be positive, it will draft a legislative proposal to be endorsed by the European Parliament and the EU member states.



    Norway, as part of a US-headed international coalition with operations in Syria and Iraq, will deploy 60 troops to train Syrian rebels fighting against the terrorist groups in that country, the Norwegian PM, Erna Solberg announced, according to Le Figaro. The Norwegian troops selected into this special task force will be sent to Jordan, and the name of the groups they will train has not been disclosed. Norway is already present in areas where the international coalition is fighting against the IS group, particularly in Erbil (Iraq), where soldiers are training peshmerga fighters for countering terrorist groups.



    The Romanian Irina Begu (no. 34 WTA) managed a surprising win against Spains Garbine Muguruza (4 WTA), 5-7, 7-6, 6-3, in the second round of the WTA tournament in Madrid, with 4.7 million USD in prize money. In the eighth-finals, Irina will be facing the American Christina McHale (59 WTA). Also qualified in the eighth-finals is another Romanian player, Patricia Ţig (134 WTA). Two other Romanians have qualified into the second round of the Madrid tournament, Simona Halep, no. 7 WTA, and Sorana Carstea (no. 127 WTA). Halep played the final of the Madrid tournament in 2014, when she lost to Russias Maria Sharapova.

  • April 7, 2016 UPDATE

    April 7, 2016 UPDATE

    The European Commissioner for internal market, industry, entrepreneurship and SMEs, Elżbieta Bieńkowska, who is on a two-day visit to Bucharest, had a meeting on Thursday with PM Dacian Ciolos and the economy minister, Costin Borc. The main topics approached were the Governments goal to improve the investment climate and the measures designed to ensure the predictability, transparency and stability of the business environment in Romania. Ciolos and Bienkowska also discussed ways to improve the public procurement system and the industry digitisation project. Ciolos talked about the importance of the automobile parts production facilities in Romania and reaffirmed the interest in the European Commissions work in the GEAR 2030 High Level Group.



    The Romanian interior minister, Petre Tobă, and his Polish counterpart, Mariusz Blaszczak, discussed in Bucharest on Thursday about ways to enhance security at the EUs external borders. Both Romania and Poland are responsible for protecting EU external borders, which makes them security providers not only to their own citizens, but for the Union as a whole, Polands interior minister said. In turn, minister Toba said Poland is a major partner for Romania, a traditional ally with shared strategic interests within the EU and NATO, which helps strengthen the bilateral relation, including in terms of safety and security.



    Romania remains financially stable, but the risks to this stability have grown since the previous year, indicates a report on financial stability made public by the National Bank of Romania. Governor Mugur Isarescu warned that for the first time Romania is facing a severe systemic risk, which has to do with the uncertain and unpredictable legislative framework in the financial-banking sector. According to Isarescu, over the past six months the number of legislative initiatives aimed at regulating the sector, through a retroactive intervention on contracts signed between banks and their clients has increased. Other risks mentioned in the report concern a prospective change in investors confidence in the emerging markets and the refugee crisis.



    The EC announced it would consider re-introducing travel visas for the citizens of the US and Canada. Reuters quotes an EU source saying the matter will be discussed by the Commission next Tuesday. The two North-American countries refuse to waive visa requirements for 5 EU member states, namely Romania, Bulgaria, Croatia, Cyprus and Poland. The analysis comes one week before President Barack Obama is due to travel to Europe to discuss the so-called trans-Atlantic investment and trade partnership, and commentators believe the topic might make negotiations on the free-trade agreement between the EU and the USA more tense. Negotiations are at a crucial point, and the parties believe the agreement stands chances of adoption before the end of Obamas term in office, in January 2017.



    Romanias National polo team drew against Russia, 8-8, in its last game in Group A of the Olympic qualification tournament in Trieste (Italy), and qualified into the quarter-finals. In the previous four matches, Romania beat Slovakia 13-11, tied against Canada 10-10, and lost against France (11-12) and Hungary (8-12). The first four teams in each group will qualify for the quarter finals. The semi-finalists will qualify to the Olympics in Rio de Janeiro this summer.

  • The Europe Direct Internship and Scholarship Gala

    The Europe Direct Internship and Scholarship Gala

    The Europe Direct Information Center of Bucharest, hosted by the European Institute in Romania, offers undergraduates and graduate students in Bucharest universities the possibility of specializing in European affairs. Recently, Bucharest hosted the second edition of the Internship and Scholarship Gala. 20 young students or graduates were awarded social media scholarships. The scholarship is a month, with the possibility of extending it to 3 months, by mutual agreement of the parts, depending on the activities of the center, the scholarship holders availability and willingness to get involved. We found out more about this project from Diana Filip, coordinator of the Europe Direct Center of Bucharest:


    This is a program we began in early 2014. The first scholarships were granted in 2014, and we thought that the interns who work at the European Institute and the Europe Direct Center should be rewarded for their work, considering that they work alongside us 3 to 6 hours a day. We make a selection, once or twice a year, depending on the number of people we need and the number of applications we receive. The number of places available is two per month, we had 20 places this year and in 2015, while in 2014 we had fewer places because the program started later. The call for applications is posted on our website. This is a European opportunity that we also disseminate on social media too, on Facebook and Twitter. The applications get sent by e-mail and have to contain a CV, a form we supply which has to be filled in with details of interest to us. Also, they should submit a creative paper on a European topic, focusing on the European priorities of that particular year. Recently, we have just finished the call for applications under the 2016 scholarship program.



    Madalin Blidaru studies political science and had a scholarship at the Europe Direct Center in June last year.



    I had the opportunity to get up to speed on everything about Europe, to see what goes on in the European Parliament and how this is received in Romania, to see what activities the European Commission has, including opportunities for financing, which are promoted among citizens, opportunities for young people, scholarships, study programs, and other EU news. This internship was on communication. It was an interesting one, because we know how useful it is for information to reach citizens, younger and older alike. When I was there I interacted with people who were there to get information on various topics on the European agenda. At school I specialized mostly in European studies, therefore this internship helped me organize my knowledge, and it also helped me with my exams.



    Ioana Vorochevici is also a political science student, and is working on her PhD right now:



    I was on a one-month internship at the Europe Direct Information Center last year. It was an extremely useful internship, both in terms of technical elements learned there related to social media, but also in terms of the new perspectives I encountered due to taking part in events. I am very grateful for the opportunity I have, and I hope to continue my collaboration with the Center.



    Marina Penciu is a doctoral student with the University of Bucharest School of History, and in spring last year she had the opportunity of getting an internship with the European Institute:



    This was one of the most productive activities I have taken part in outside school, especially considering that I very much liked the centers mission. I think it is very important how you communicate with citizens, and not generally and declaratively, but punctual, concrete communication, in a manner which is easily understood by them. We tried to transform the EUs general messages in punctual, clear, concise messages to help citizens understand Europe better. I think people have to understand what the purpose is, and what leverage they have, as citizens of the Union, especially in this crisis context. We have to become aware that, in the end, the European project is to everyones advantage. In my PhD thesis I focus on international organizations, not the EU, but NATO. I believe, however, that working in an international organization, such as the EU, is one of the ideal jobs right now. I think this type of job is most suitable for our way of being and for the plans our generation has.



    The Europe Direct network is one of the main instruments used by the European Commission to inform its citizens and communicate with them at local level. Ioana Marchis – coordinator of the Europe Direct network in Romania – urges students to register for the scholarships offered by the European Commission Representation in Romania too:



    The Commission has lots of programs running in partnership or through the relevant state institutions. This project, called Europe Direct, runs in all member states. Practically there are 550 such centers as the one in Bucharest, all over Europe. Romania has 31 such centers. On this occasion, I invite interns to also apply for an internship at the Representation. This opportunity is open for applications until June- July, and I hope as many of you will show passion and will get involved in all that has to do with communication, the topic of our internship. At this point we, at the European Commission, are starting to work on some reference terms, namely what we would like to happen with these centers over the next financial framework.



    Some of the people who took part in these European communication courses managed to get jobs in this domain. They are communicators for European policies for Romania.


    (Translated by C. Cotoiu)

  • The increase of the EU fund absorption rate

    The increase of the EU fund absorption rate

    The exponential development of such countries as Portugal, Ireland or Spain shortly after their EU accession made Romanians hope that once they joined the EU, they would enjoy at least a similar well-being, due to the EU funds they would be allocated. However, the reality has contradicted them! The over-bureaucratic procedures of access to the funds or unpredictable procedural changes are just two of the drawbacks condemned by many of those who asked for European money.



    Early this year, according to the European Commission representation in Bucharest, Romania reported the lowest absorption rate, far below the EU average. However, the situation might change and by the end of the year, this country might absorb 70% of the funds it has been earmarked, since at present the absorption rate stands at 65%, as the Minister for European Funds, Marius Nica told the Chamber of Deputies. Three months before the closure of the 2007-2013 financial year, Romania has absorbed 12.8 of the 19 billion Euros it has been earmarked for that period. As Minister Nica said, Bucharest has failed to spend more European money, due to the slow absorption rate reported in the previous years. Minister Marius Nica:



    In 2009, the absorption rate stood at 0.7%, in 2010 – 1.1%, in 2011 – 3.6%; so, its no wonder that well reach only an absorption rate of about 70%. Let me go on: in 2012, the rate was 5.9%, in 2013 – 15.14% and in 2014 – 18.56%.



    In the meantime, measures have been taken to benefit the end-users. Minister Marius Nica again:



    Over 2007-2009, the period of assessing a project of the Sectoral Operational Programme “Human Resources Development ranged from one year to one and a half year, during which time, the beneficiary no longer existed. At present, we pledged that the evaluation period should be 70 work days starting the moment the project was submitted until the evaluation and signing of the funding contract.



    Although the opposition has criticized the government for Romanias losing European money, representatives of all parliamentary groups have agreed that the flaws in the system should be done away with, so that this financing source might no longer be lost. Both the Democratic Union of Ethnic Hungarians in Romania and the National Liberal Party have expressed their readiness to help simplify procedures and prepare the next financial year. Liberal MP Mircea Toader:



    “Give us the package of laws on tenders and public procurement! Were all interested in using those funds and Ive often said, even within my party, that it is nonsensical for any minor company to be able to block all sorts of public tenders.



    For the 2014-2020 financing period, all operational programmes for Romania are approved, 23 billion Euros being allocated.

  • Economic missions in Bucharest

    Economic missions in Bucharest

    A European
    Commission delegation is in Bucharest as of Tuesday to assess the situation of
    the Romanian economy. Finance Minister, Eugen Teodorovici, pointed out that the
    result of the talks was essential for the coming to Romania of an IMF mission
    on July 15. The European Commission representatives are interested in assessing
    the evolution of structural reforms, the streamlining of the transport and
    energy sectors, a process that is still lagging behind, the way in which the
    professional management system was applied in the state-owned companies, as
    well as the stage of listings and of the privatisation process.




    Another issue to be
    discussed is related to the relaxation measures laid down in the new Fiscal
    Code, with focus on their impact on the observance of the medium-term target
    regarding the budget deficit assumed by Romania as part of the ongoing
    precautionary agreement which is to end in September. In late May, a technical
    mission made up of representatives of the IMF, the European Commission and the
    World Bank was in Bucharest for talks on the same topic.




    The IMF recommended
    to the Government to adjust the fiscal relaxation measures, since the cut in
    expenses to compensate for those measures will not be enough to cover the
    significant gap in the budget revenues starting in 2016. Then, the Government
    insisted that Romania needed fiscal relaxation, a fact acknowledged by
    international financiers, who want guarantees, though, related to the
    observance of the budget deficit target assumed.




    Early this month the
    IMF representative to Bucharest, Guillermo Tolosa, said that the draft Fiscal
    Code which is currently being debated by Parliament would have to be revised
    significantly because, the current form would not allow the Government to reach
    the established budget deficit targets. Tolosa said there were heated debates
    also regarding the structural reforms, mainly in the energy sector, which
    reports big losses.





    The
    ongoing precautionary agreement is the 3rd Romania has asked from
    the IMF since the start of the economic crisis in 2009. The agreement was
    concluded in September 2013 for a period of 2 years and is worth almost 2
    billion Euros. The authorities announced they wanted to successfully finalise
    the current agreement and would then make a decision regarding the continuation
    of the partnership with the IMF in the context in which Romania is stable from
    a macroeconomic point of view and borrows money from the international markets
    at relatively small costs.

  • European Economic Forecast

    European Economic Forecast

    The European Commission is optimistic with respect to the EU economy. Its spring forecast points to moderate growth in Member States, although the rate varies from one country to another. Brussels has improved its estimates regarding the Eurozone growth to 1.5% as against the 1.3% announced in February, whereas the forecast for the 19-member zone in 2016 remained constant at 1.9%.



    The reason behind this optimism is that the Eurozone has benefited from the drop in oil prices, from the good global economic prospects, from the depreciation of the euro and the new monetary policy measures taken by the European Central Bank, all of which have boosted business confidence. The domestic demand is the main engine of the rise in GDP, and this year private consumption is expected to strengthen across the EU, while next year investments should start recovering, the Commission says.



    Commenting on the figures, Valdis Dombrovskis, European Commissioner for the European currency and social dialogue said,The recovery of Europes economies is strengthening. While this is encouraging, we have to make sure economic growth is lasting and sustainable.”



    Contributing to the recovery is Germany, Europe’s largest economy, which is expected to grow by 1.9% this year and by 2% in 2016. Spain’s GDP is also likely to increase by 2.8% in 2015 and 2.6% next year. Experts say the economic growth will lead to lower unemployment rates, but also to an increase in inflation.



    However, the European Commission has lowered its forecast for Greece to 0.5%, from the earlier 2.5% estimate. The Greek economy has worsened since the beginning of the year, the Commission warns, and that country still depends on foreign financial support.



    For Romania, the expected economic growth rate remains strong, at 2.8% this year, fuelled by good private consumption and a recovery in investments. A more robust domestic demand, facilitated by the cut in indirect taxation, is expected to push Romania’s economy by a further 3.3% next year. Inflation should reach a record low level, and employment rates should improve for the first time since the onset of the economic crisis. The unemployment rate estimated for this year is 6.6%, possibly down to 6.4% next year. Private investments will also continue to grow, and so will public investment, thanks to the European funds. The European Commission’s spring economic forecast also indicates a budget deficit of 1.6% of the GDP for this year and 3.5% next year.

  • May 5, 2015 UPDATE

    May 5, 2015 UPDATE

    The Prime Minister of Romania, Victor Ponta, Tuesday carried on his official visit to the United Arab Emirates, the last stop in a tour in Gulf countries. The Romanian head of government had meetings in Abu Dhabi with senior officials and representatives of the business community. The main topic on the agenda was the Government’s plan to list the Otopeni Airport in Bucharest and to restructure the Romanian airline TAROM. Proposals regarding investing in this project were also discussed on Monday with the PM of the UAE, Sheikh Mohammed bin Rashid Al Maktoum. PM Ponta’s tour also included Saudi Arabia and Kuwait, and was designed to boost Romania’s political dialogue and economic relations with the countries in the Persian Gulf region.



    The judicial and administration committees in the Romanian Parliament’s Chamber of Deputies issued a favourable report on a bill aimed at amending the law on the country coat of arms and the state seal. The bill provides that the eagle on the national coat of arms should be crowned. According to the initiators, the bill is designed to “emphasise the idea of continuity, sovereignty and unity of the Romanian state and of the period when they were achieved.”



    The European Commission has improved its Eurozone economic growth estimates for this year, but lowered its forecast for Greece. In a document released on Tuesday, EC estimates for Romania point to a strong economic growth rate for both the current year and the next. According to Radio Romania’s correspondent in Brussels, Romania is the only EU country where an increase in employment figures is estimated. The unemployment rate is expected to drop this year to 6.6% and in 2016 to 6.4%. The GDP is expected to grow by 2.8%, primarily thanks to private consumption and investments.

  • The European Union invests in Romania’s transport infrastructure

    The European commissioner for regional policy Corina Cretu urged the Romanian authorities, politicians and the entire Romanian society to commit to the transport master plan to allow for the implementation of major projects in the field able to boost the country’s development.



    The European Commission is interested in building infrastructure in its less developed members that “stringently” need better road infrastructure, said the European commissioner for regional policy Corina Cretu on Wednesday in Cluj.



    The Trans-European Transport Network TEN-T is a priority for the Commission, said Cretu, who visited, together with transport minister Ioan Rus, a section of the Sebes-Turda motorway, a project that forms part of TEN-T. The motorway is to be finalised by mid 2016, will have a total length of 70 km and will connect the Transylvania motorway, in the centre, to the European Corridor IV that runs all the way to the Black Sea.



    To build the first section of the Sebes-Turda motorway, Romania will receive around 150 million euros from the European Commission. Commissioner Corina Cretu also urged the authorities, politicians and Romanian society to commit to the national transport master plan allowing for the implementation of major transport projects and providing the European Commission with a needed guarantee of stability. Efficient and sustainable infrastructure must be a priority if we wish to secure Romania’s connection to the main European transport corridors, Cretu also said. She held talks with minister Ioan Rus about the Large Infrastructure Operational Programme. Under the European Union’s 2014-2020 long-term budget, Romania has been allocated 9.5 billion euros to finance a number of projects in the area of transport, the environment and energy.



    Most of the money, 7.5 billion euros, is earmarked for the development of transport infrastructure. Romania will have access to these funds as soon as the European Commission approves its transport master plan, which, said minister Rus, is almost finalised. He also announced that the Transylvania motorway linking Brasov, in the centre, to Bors, in the west, on the border with Hungary, would be finalised in 2017 or 2018.



    A portion of the European funds will be invested in Romania’s 7 international airports and the rehabilitation of railroads. Ioan Rus also said the Romanian authorities would pay special attention to the Bucharest-Iasi-Chisinau high-speed rail. The European commissioner for regional policy Corina Cretu said Romania’s transport master plan would be approved by the European Commission by the end of May.


  • Romanians and their state of mind in the EU

    Romanians and their state of mind in the EU

    Romanians are optimistic about the future of the European Union. 74% are satisfied with the present situation in the EU, 12% on the rise as compared to 2013, shows a public opinion Eurobarometer conducted in the autumn of 2014 and recently presented by the European Commission. Most of the Romanians believe the economic situation in the EU will improve this year, but only 35% of them expect an economic improvement in their own country.



    At the same time the Romanians are familiarized with European institutions and supportive of the European Commission’s priorities. 72% of them are backing the EU enlargement policy as compared to the European average of 39%, being at the top of the table. The EU enjoys a positive image in Romania as expressed by 59% of the interviewees, in this respect ranking second only to Poland. Here is Angela Filote, head of the European Commission Representation in Romania with more on the issue.



    Angela Filote: “The Euro-optimism of the Romanians as compared to other EU citizens has again been confirmed. Of course the fact the Romanians trust the EU and its future and the union’s positive image in Romania makes us very happy. At the same time this is a burden of responsibility for us, as we’d like not to let them down. It remains to be proved whether this trust is based on realistic or less realistic expectations about what the EU can do in order to improve the lives of the Romanians.”



    According to the aforementioned poll, 53% of the Romanians appreciate the freedom of movement inside the EU, 29% of the respondents referred to the values of democracy, while 25% appreciate the single currency.



    The most significant EU achievement for 39% of the Romanians is the free movement of workers, goods and services within he Union. More than a half of the interviewees are satisfied with how democracy functions in the EU. At the domestic level however only a quarter of them has shown satisfaction. 77% of the Romanian citizens believe the EU fosters the right conditions for jobs in Europe and for the business environment.



    Most of the interviewees share a negative opinion about the labour market in Romania only 34% of them believe the country is heading in the right direction. However, in comparison to the previous Eurobarometer, sociologists have highlighted a tendency of improving the social climate, the Romanians being more optimistic and pleased with their standard of living. A possible explanation for this optimism was the period in which the poll was conducted, November 2014, between the two presidential election rounds, which significantly influenced the Romanians’ optimism. Sociologist Dumitru Sandu believes that another possible explanation is the liberalization of the EU’s labour market for the Romanian workers beginning January 1st 2014. In less than a half a year, the number of those who believe that things go in a wrong direction has dropped from 61% to 43%.



    Dumitru Sandu: “The year 2014 has completely taken me aback…The Romanians who believe their lives will improve in a year’s time accounted to 32% of the total interviewed in spring, while in November their number stood at 40%. Social life doesn’t take leaps though. An 8% leap in less than six months is big. Another big difference was noticed regarding the question whether things were moving in the right direction: 20% in spring and 34% in autumn, a huge 14% increase in only six months. This is a positive change from many points of view, but where does it come from? There is this idea that people are more prone to giving gifts in election years…And data for the Eurobarometer was gleaned right between the first and the second rounds of the presidential election in November. People’s hope in the outcome of those election was reflected in the latest opinion poll.”



    The Eurobarometer shows that 88% of the respondents believe that Romania is in need of reforms to face future challenges, an opinion also shared by most of the Europeans — the European average standing at 87% in this issue. Also worth noting is the support the anti-graft campaign enjoys in Romania, a fact also explained through the trust the Romanians have in their new president.



    Dumitru Sandu: “Between the autumn of 2010 and the same period of 2014, the Romanians’ trust in justice rose from 23% to 46%, which is also a huge leap! This means that everything we see on TV is not only mere television shows, but has a deep impact ramping up support. Trust also translates into support from people.”



    At domestic level the Romanians are concerned with inflation, unemployment, the country’s medical system and continue to show a low trust in state institutions.



    Dumitru Sandu: “Romania’s population is extremely sensitive to institutional changes, to pledges regarding these changes. People react to measures aimed at streamlining these institutions, but the causes of these reactions have also changed. Romanians are no longer fearing the future, or unemployment, the lack of income or other shortages…The Romanians are increasingly concerned with administration, healthcare and education in their country. Workers will no longer come back from abroad unless you provide similar salaries with what they get in Spain, Italy, Germany and France. They also want institutions and services to function properly, like in those countries…So the institutional component becomes crucial.”



    Sociologists have called into attention the fact that the poll was done only a week after the new European Commission had taken office with Jean Claude Juncker at the helm. Autumn economic forecasts also revealed slight economic growths in all 28 member countries and a dropping unemployment rate against 2013.


    1016 people have been interviewed for this poll with an error margin of 3%.






  • EU Funding for Transport Infrastructure

    Until 2020 the European Commission will contribute 6.8 billion euros for the infrastructure projects included in Romania’s Transport Master Plan, the European Commissioner for Regional Policy Corina Cretu announced in Bucharest on Tuesday, after talks with Transport Minister Ioan Rus. According to Corina Cretu, the European Commission pays special attention to Romania’s Transport Master Plan, a strategic document whose endorsement is a prerequisite for the disbursement of EU funding for large-scale transport projects in 2014-2020.



    Corina Cretu: “In the opinion of the Commission, the top priority of this Master Plan is to ensure the completion, in due time, of the projects that are part of the TEN-T network, the trans-European transport network.”



    Secondly, Cretu added, the Commission expects the document to identify the most important projects for the broadened TEN-T network, which in turn may benefit from European funding. This means that the Master Plan should include the most important projects, in economic terms, and ensure that they will receive financial support not only for construction as such, but also for maintenance, the EC official explained. She emphasized that the Master Plan is relevant not only for the current 7-year financing cycle, but also for Romania’s economic development in the next 15 to 20 years.



    According to Corina Cretu, Brussels is waiting for Romania to submit the final version of the document as soon as possible, hopefully next month, so that the Operational Programme “Large-Scale Infrastructure” may be signed in May.



    In his turn, Transport Minister Ioan Rus said a list of projects has been finalized, for all the components of the transport sector which will be included in the Transport Master Plan, namely road, naval, railway, and air transport. According to the minister, 25% of the costs will be covered by the European Union, 15% by the Romanian state, and the balance will come from loans taken from the European Investment Bank and the EBRD. Moreover, Rus added, the Government approved an additional contribution of 7 billion euros, to enable Romania to start as many of these projects as possible this year.



    Rus also said that on Wednesday and Thursday representatives of his ministry will have technical talks with EC officials in Brussels, concerning the final text of Romania’s Transport Master Plan and the Implementation Strategy, a key document that lays down project priorities, a calendar for implementation and the structure of funding sources for each project.