Radio România Internațional

Tag: financial

  • February 22, 2025 UPDATE

    February 22, 2025 UPDATE

    ELECTIONS The Central Electoral Bureau of Romania announced that it decided on Saturday to admit the registration of the Protocol on the establishment of the electoral alliance “Romania Forward”, signed by the Social Democratic Party (PSD), the National Liberal Party (PNL) and the Democratic Union of Ethnic Hungarians in Romania (UDMR), in the ruling coalition, in order to support Crin Antonescu’s candidacy in the presidential elections. Antonescu is also backed by the group of ethnic minorities in the Romanian Parliament. The Central Electoral Bureau for the election of the president of Romania in May was selected on Friday. The Bureau is made up of 5 judges with the High Court of Cassation and Justice, the president and vice-presidents of the Permanent Electoral Authority and one representative of each party in Parliament. Parties, political or electoral alliances, ethnic minority organisations and independent candidates will be able to submit their candidacies by March 15, after which the Central Electoral Bureau is to rule on their validity. The election campaign begins on April 4 and ends on May 3, with the vote scheduled on May 4 and the second round on May 18. In December the Constitutional Court cancelled the presidential election over foreign interference in the electoral process. Thousands of Romanians, supporters of the independent sovereigntist candidate Călin Georgescu, who came out first in the first election round in December, took to the streets again in Bucharest on Saturday to demand that the elections be resumed with the second round.

     

    MIDDLE EAST Romania’s interim president Ilie Bolojan said on Saturday that Romania welcomes the release of the 6 Israeli hostages held captive in Gaza, one of whom has dual, Israeli and Romanian citizenship. “We take this opportunity to reiterate our support for implementing the ceasefire agreement and releasing the hostages, as well as for the urgent provision of humanitarian aid to the population of Gaza,” president Bolojan posted on social media. He also mentioned that Romania thanks the US, Qatar, Israel and Egypt for the efforts made to free the hostages. On Saturday, Hamas handed over the last 6 hostages in a first phase of the ceasefire agreement with Israel in Gaza, which provided for the release of a total of 33 captives. Hamas, in turn, receives over 700 Palestinian prisoners from Israel.

     

    RATING Fitch has sent a clear signal that Romania must carry on its fiscal consolidation measures and restore budgetary balance, in order to improve its fiscal credibility, the finance minister Tanczos Barna said after the international financial rating agency announced on Friday that it is keeping Romania in the investment grade category. In a statement, the agency confirmed Romania’s long-term rating at ‘BBB minus’, with a negative outlook. According to Fitch, the rating relies on the country’s EU membership and capital inflows that contribute to public revenues and macro-stability. The gross domestic product per capita and the governance and human development indicators are also higher than in countries in the same rating category, the agency explains. These strengths are overshadowed, however, by a significant deterioration of public finances and a sharp slowdown in economic growth in 2024. Adding to this is a possible adverse effect of political uncertainty. In December last year, Fitch announced that it had downgraded the outlook assigned to Romania from stable to negative. The same announcement came later from Standard & Poor’s.

     

    ENERGY Electricity and natural gas tariffs could be offset in Romania even after April 1, when the current aid scheme is set to expire. The energy ministry has posted for public review a draft act extending the capping period, under which the scheme for electricity is extended until July 1, and for natural gas by one year, until April 1, 2026. The capping extension proposal comes as prices on European electricity and gas exchanges have increased significantly, and also as the low temperatures in Romania this winter entailed a significant increase in consumption. As a result, the line minister Sebastian Burduja announced that the government had decided to protect Romanians and support the competitiveness of Romanian companies. After the energy market was deregulated on January 1, 2021, Romania was among the European countries the most severely affected by record-high electricity and natural gas prices. Thanks to the government’s price capping decisions, households and businesses were protected from excessive prices.

     

    GERMANY Germany holds federal elections on Sunday that are crucial to the country’s future, as the far-right is on the rise and the economy is heading for a third year of recession. The vote comes after the coalition of the Social Democrats, Liberals and Greens led by the Social Democratic Chancellor Olaf Scholz collapsed late last year. According to polls, the Conservatives are expected to win. With the far-right in second place in the polls, however, analysts say that in order to govern, the Conservatives will have to reach a compromise with the Social Democrats or the Greens, overcoming their differences.

     

    AIRCRAFT US aircraft deployed at the Mihail Kogălniceanu base (southeastern Romania) are performing low-altitude training flights in and around Constanţa County these days, the Romanian Air Forces announced. They say that the exercises will continue until February 28 and promised that all safety measures have been taken to reduce the noise impact on civilians. Officials say that these trainings aim to increase the response capacity of aeronautical personnel.

     

    CORRUPTION A company and 2 individuals are prosecuted in a case handled by the Romanian National Anticorruption Directorate (DNA), together with investigators from the US Department of Defence, the DNA announced today. The company owned by a Greek national has allegedly bribed a foreign official to get a EUR 9 mln contract to refuel aircraft at the NATO military base in Mihail Kogălniceanu. Two other individuals are suspected of complicity in continuing bribery in connection with an official of a foreign country.

     

    HANDBALL CS Minaur Baia Mare qualified for the quarterfinals of the men’s handball competition EHF European Cup, although they were defeated by the Finnish team BK-46, 32-31, on Saturday, in Karis, in the second leg of the round of 16. Minaur also played the first match in Finland, on Friday, winning 33-30. Last season, Minaur Baia Mare reached the semifinals of the European Cup. (AMP)

  • How can TAROM be saved?

    How can TAROM be saved?

     

    Romania’s national airline, TAROM, is to receive aid from the European Commission until the end of April, and then it will undergo an economic reorganisation process, the Romanian transportation minister Sorin Grindeanu announced.

     

    The air operator owned by the Romanian state has been struggling with economic instability for several years, and successive rescue plans have failed to lead to the results expected by the government.

     

    According to data for the first half of 2023, TAROM had losses of over EUR 10 million, significantly lower than those reported for the corresponding period of 2022, when the company was reporting losses of over EUR 41.8 mln.

     

    In this context, the transportation minister says the new rescue plan is aimed at “placing TAROM on sound economic foundations.”

     

    Sorin Grindeanu: “Once we have received this aid from the European Commission, TAROM must switch to a reorganisation stage, and we are open to any kind of proposals that would help place TAROM on sound economic foundations. Our willingness to save this company is beyond question, and so is our willingness to find any kind of solutions, including partnerships, that would lead to this positive outcome.”

     

    Grindeanu also suggested that the TAROM reorganisation plan may entail making around 50% of the staff redundant, given that the state-owned airline currently has an unsustainable number of employees.

     

    Sorin Grindeanu: “A company the size of TAROM, which rests on correct economic principles, normally has some 500-600 employees, 90% of them being flight and cabin personnel. We have almost double that figure.”

     

    The transportation minister also emphasised that the Romanian government cannot provide direct aid to TAROM because this would come against competition rules and the EU directives on state aid. So, he believes, alternative solutions must be identified in order to break what he called “a vicious circle,” and one of these solutions may be to find investors for newer aircraft and for TAROM to improve its services.

     

    Grindeanu explained that solutions had also been explored during the 4-day visit made by a governmental delegation headed by the PM Marcel Ciolacu in the Middle East.

     

    Set up in 1954, TAROM has been operating under the authority of Romania’s transportation ministry. The airline has been a member of the International Air Transport Association since 1993, and of SkyTeam Alliance since 2010. TAROM operates 18 aircraft and flies to 70 destinations, using both its own air fleet and partner services. (AMP)

  • January 28, 2024

    January 28, 2024

    IMF An International Monetary Fund mission
    headed by Jan Kees Martijn will be in Bucharest
    between January 29 and February 1, to review the latest economic and financial
    developments. The previous IMF visit to Romania was last autumn, when IMF
    experts conducted their annual analysis of the Romanian economy. At that time, Jan
    Kees Martijn said estimates were pointing to a budget deficit of 6% of GDP for
    the end of 2023, and of 5% in 2024, as well as to an economic growth rate of 2.3%.
    Romania has no ongoing agreements with the IMF at present, but the Fund
    conducts regular visits to review financial and economic indicators. The PM Marcel Ciolacu voiced optimism with
    respect to the IMF’s assessment. He explained that Romania still has problems
    meeting a benchmark in the National Recovery and Resilience Programme, as the
    EC believes Romania has too low SME taxation levels.


    DRUGS The Romanian justice minister Alina Gorghiu requested the
    emergency endorsement of the bills against drug trafficking and drug use. A
    first bill concerns the set-up of the Drug Trafficking Register and of regional
    rehab centres for drug addicts. A second bill eliminates suspended sentences
    for drug trafficking. On Friday, after the Justice and Home Affairs Council,
    the interior minister Catalin Predoiu announced that Romania set up a task
    force integrating several institutions involved in the fight against drug
    trafficking. He said Romania is on the front line of the crackdown on
    international drug trafficking networks, and welcomed the Council’s decision to
    include Romania’s and Bulgaria’s air and maritime borders in the Schengen area.
    According to the Romanian official, EU member countries should focus on curbing
    drug trafficking in ports, through an integrated international platform.


    PRICES In Romania, the mark-up for basic foodstuff prices may be capped
    for another 3 months. The announcement was made by Marcel Ciolacu recently, as
    the capping scheme is due to come to an end soon. According to the PM, a
    decision will be made following talks with all stakeholders. The agriculture
    minister told Radio Romania that a discussion in this respect will be held on
    Monday. He explained that according to data made public by the National
    Statistics Institute and the Competition Council, the measure has been
    effective. The agriculture minister added that the introduction of further
    products in the list is being considered. The emergency order passed by the
    government last summer in order to contain the effects of inflation saw the
    temporary capping of mark-ups for several basic foodstuffs, including bread,
    milk, yogurt, flour, eggs, chicken and pork. The measure was subsequently
    extended and further products were included.


    UN The UN secretary general, Antonio Guterres, Sunday called on the
    countries that have suspended funding for the UN agency for Palestinian
    refugees (UNRWA) to ‘ at least guarantee’ the continuity of UNRWA operations,
    which are vital for 2 million people, AFP reports. The UN body, which is the
    main provider of humanitarian aid in Gaza, Friday announced firing a number of
    employees accused of involvement in the Hamas attack in Israel on October 7,
    2023. In turn, the director of the UN body, Philippe Lazzarini, warned that the
    vital assistance granted by UNRWA is about to end because of funding issues. Israel
    demands the resignation of Philippe Lazzarini and the termination of the
    agency’s work in Gaza after the war. A number of countries, including the US, Canada,
    UK, Italy and Germany, have suspended all future funding the UNRWA. (AMP)

  • June 2, 2022 UPDATE

    June 2, 2022 UPDATE

    GOVERNMENT On Thursday the
    Government of Romania passed an emergency order under which pensioners with
    pension benefits below roughly EUR 400 will benefit in July from financial aid
    amounting to EUR 140. The measure is intended to offset the drop in spending
    power for vulnerable people, generated by the recent increase in fuel, food and
    utility prices. Around 3.3 million people will benefit from the aid. Wednesday
    also saw the start of a social voucher distribution programme called ‘Support
    for Romania’. The EUR 50 vouchers are intended for over 2.5 million vulnerable
    Romanians, and can be used for food purchases.


    HOLIDAY Romania, a country
    with an Orthodox majority, Thursday celebrated the Ascension of Lord Jesus
    Christ, 40 days after his resurrection. Orthodox believers celebrated the event
    with painted eggs and traditional Easter meals. Since 1920 Romanians have also
    paid homage to their war heroes on Ascension Day. A series of events have been
    staged to the memory of Romania’s heroes like religious services as well as
    moments of silence in all major institutions across the country. In a message on Heroes Day, the country’s
    Prime Minister Nicolae Ciuca said ‘our thoughts of gratitude are today directed
    towards those who made the supreme sacrifice for the better destiny of the
    generations to come.’


    POLL Over 70% of Romanians
    blame the war in Ukraine on Russia, according to a poll conducted by INSCOP
    Research over May 16th and 21st. Over 87% of the Romanians believe that Russian
    leaders must be convicted for war crimes and 65% believe the presence of NATO
    and US troops in Romania is a good thing. 50% of the respondents believe
    Ukraine will win the war, whereas 26% believe Russia will be the victor.
    According to the poll, only 25% of Romanians believe Russia is defending
    traditional values against the decadence of the West, as compared to 41% in
    February. 67% of the respondents believe that extraction of natural gas from
    the Black Sea will significantly reduce the country’s dependence on Russian
    gas.


    LETTER Romania’s president
    Klaus Iohannis has sent a congratulation letter to Her Majesty Queen Elizabeth
    II of the United Kingdom of Great Britain and Northern Ireland on her
    anniversary and the platinum jubilee, the presidential administration in
    Bucharest has announced. The Romanian president voiced his belief that the
    Strategic Partnership between Romania and the UK will continue to be
    consolidated in the future, for the mutual benefit of both nations. Starting on
    Thursday, Britain is celebrating for 4 days the Queen’s 70 years of rule, the
    longest in the kingdom’s history. The government has exceptionally approved a
    four-day bank holiday allowing millions to participate in various events staged
    on this occasion, such as street parties, concerts and military parades.
    According to the BBC, the 96-year-old monarch, who has mobility issues and has
    recently cancelled several public appearances, is likely to join members of the
    Royal Family on the balcony at Buckingham Palace to watch the display.


    REFUGEES The government of
    Romania Thursday approved the provision of new emergency humanitarian aid
    amounting to EUR 185,000 for the management of the Ukrainian refugee crisis. Also
    as of Thursday, a governmental information platform is available to Ukrainian
    nationals benefiting from temporary protection in Romania. At
    protecţieucraina.gov.ro, refugees can find all the necessary information on the
    rights and services they can receive, how they can enter Romania or answers to
    frequently asked questions in the legal field. The Romanian Border Police
    announced that on Wednesday little over 10,000 Ukrainian citizens entered
    Romania, down 13% since the previous day. Since the start of the crisis in
    Ukraine on February 24, nearly 1.1 million refugees have entered Romania. Most
    of them transited the country towards Western Europe, but several tens of
    thousands applied for asylum or temporary protection from the Romanian
    government. (AMP)

  • International aid for Moldova

    International aid for Moldova

    Until December 2020, the ex-Soviet Republic
    of Moldova, led by pro-Russian officials, was constantly in Moscow’s tow. Pro-European
    voices were however present, as confirmed by the country’s signing in 2014 an
    association agreement with the European Union, providing for cooperation in areas
    like trade and culture.


    But Moldova categorically broke with Russia less than 2 years ago, with
    the election of the pro-European Maia Sandu as head of state, replacing the
    pro-Russian Igor Dodon.


    Geographically, Moldova stands between the eastern part of the EU (neighbouring
    Romania) and Ukraine, with some of its territory occupied by Transnistria, a
    small self-proclaimed breakaway republic backed by Moscow.


    Quite a few political and military analysts voiced concerns that in the
    context of the invasion of Ukraine, Russia might take advantage of its military
    presence in Transnistria to launch an offensive in that region as well. Fortunately,
    at least for the time being, this is only a hypothetical plan.


    Nonetheless, with millions of Ukrainians fleeing the war, the Republic
    of Moldova is receiving the largest number of refugees per capita in Europe,
    which puts tremendous pressure on Europe’s poorest state.


    Under these circumstances, Germany, France and Romania Tuesday
    co-chaired an international conference in Berlin, aimed at putting together a
    support platform for that country. Around 50 delegations took part,
    representing international organisations and some 30 states, including EU
    members, the US, Canada and Japan.


    Donors pledged with over EUR 695 million in aid for Moldova, 100 million
    of which will be non-reimbursable financial assistance. They also agreed to
    take over nearly 12,000 of the almost 100,000 Ukrainian refugees currently in
    that country.


    Our message is clear: the Republic of Moldova is not alone, said Germany’s
    foreign minister Annalena Baerbock, alongside her French and Romanian
    counterparts, Jean-Yves Le Drian and Bogdan Aurescu, talking to the Moldovan PM
    Natalia Gavriliţa.


    According to the German official, this assistance will be the start of a
    sustainable support platform, with further aid to follow in areas like
    diversifying energy sources, border management and political reform. All of
    these are designed to help Moldova ease out its dependence on Moscow.


    Moldova is the most vulnerable among Ukraine’s neighbours, Natalia
    Gavriliţa said, and added that her country has no security umbrella to rely on
    and therefore it needs good friends and reliable partners.


    The next donor conference for Moldova may be hosted by Bucharest. (A.M.P)

  • July 23, 2021 UPDATE

    July 23, 2021 UPDATE

    Covid-19 In Romania, 104 new cases of people infected with SARS-CoV-2 were reported on Friday, out of over 26,000 tests performed. Authorities have also announced 2 Covid-19 related deaths and 38 people admitted to intensive care. The number of cases started to increase on July 12 and, according to an analysis by the National Center for Surveillance and Control of Infectious Diseases, last week almost half of the cases were reported in Bucharest, Cluj (center-west), Iasi (northeast), Ilfov and Constanta (southeast). According to data from the European Covid-19 Forecast Hub, it is estimated that by the end of the month, in Romania, up to 200 new cases will be registered per day. Experts say vaccination is the way out of this pandemic. Regarding immunisation, the authorities announced that almost 16,000 people have been vaccinated in the last 24 hours. Currently, over 4.7 million Romanians have been fully vaccinated.



    Report Accessing EU funds must be a priority for authorities, in order to support investments and to modernize the economy, the National Bank of Romania recommends in a report on financial stability. The NBR mentions that Romania can access funds of over 52 billion euros from the multiannual budget of the Union, adding to which will be another 32 billion euro, after the National Recovery and Resilience Plan is approved. The report also shows that in order to maintain easy access to and low costs of borrowing from foreign financial markets, Romania must engage in fiscal reforms that improve the sustainability of public finances and ensure better predictability of the legal framework. The document also shows that the net wealth of the population reached an all-time high after increasing this year by 6% compared to 2019. Real estate assets still account for most of the wealth of Romanians (75%), while financial assets account for approximately 24% of the total.



    Visit Not only will Romania continue to support the Republic of Moldova, but it will accelerate the provision of support in all fields, the Romanian Foreign Minister Bogdan Aurescu said at a joint press conference with Moldovas President Maia Sandu. He talked about the implementation of several long-term projects especially in the fields of energy and infrastructure. In turn, Maia Sandu said she appreciated a lot the Romanian authorities’ availability and support. Bogdan Aurescu’s visit takes place just days before the first meeting of the new Parliament and the formation of a new government in Chisinau. He is the first official from an EU member state to visit Moldova after the parliamentary elections of July 11th, won by pro-Europeans. Also in Chisinau, Mr. Aurescu attended the ceremony granting new humanitarian aid to the Republic of Moldova, consisting in 100,000 doses of anti-Covid-19 vaccine.



    Pandemic The European Medicines Agency (EMA) Friday approved the use of the Moderna COVID-19 vaccine for the 12-17 age bracket. Moderna becomes the second vaccine authorised for EU teenagers, after Pfizer/BioNtech. Two hundred million Europeans have been fully vaccinated against Covid-19, which is more than half of the adult population, the European Commission announced on Thursday. The Commission had set the goal of 70% of adults to be vaccinated by the end of this summer. At a meeting of health ministers and officials in Athens, the WHO warned that the COVID-19 pandemic would have a long-term impact on people’s mental health. In another development, following the increase in the number of infections in Europe, countries are taking additional measures to prevent the spread of the virus. Greece announced on Thursday that all unvaccinated workers in tourism and hospitality would have to undergo regular coronavirus tests. In turn, Italy has announced that it will introduce a compulsory health permit as of 6 August for access to enclosed spaces such as clubs and restaurants. Worldwide, over 193 million people have been infected with the novel coronavirus so far. According to worldometers.info, nearly 176 million have recovered and more than 4.1 million have lost their lives to this disease.



    Olympics The Summer Olympics, the world’s largest sports competition, kicked off in Tokyo on Friday. Japans tennis superstar Naomi Osaka, no 2 in the world, was the one to light the Olympic flame. Due to COVID-related restrictions, the opening ceremony was simple and restrained, with no public on the National Olympic Stadium, except for 950 people, including Emperor Naruhito of Japan, the president of the International Olympic Committee Thomas Bach, the president of France Emmanuel Macron, and First lady Jill Biden. The public will not have access to any of the Olympic events, as Tokyo is in a state of emergency. Nearly 2,000 new infections were reported on Thursday, the biggest figure in six months. Despite the restrictions, the number of cases has also increased in the Olympic Village by the day. Romania is represented by 101 athletes at this 32nd edition of the games, who will compete in 17 events. Canoeist Simona Radiş and swimmer Robert Glinţ were the bearers of the national flag. (tr. A.M. Popescu)

  • Economic measures in times of crisis

    Economic measures in times of crisis

    As of Wednesday, in Romania employers may apply for governmental funds to pay their employees in idle time. The applications may be submitted online, to the county employment agencies. The same type of aid is available not only for companies with employees, but also to the self-employed. In order to benefit from these funds, employers must submit to county employment agencies an application, a sworn statement and a list of the employees on idle time.



    The Labour Minister, Violeta Alexandru, promised that all applications will be processed as quickly as possible. Idle time benefits are capped at around 800 euros per month, before tax and healthcare and pension contributions. According to the latest data, over 500,000 employees have already seen their employment contracts temporarily suspended over the coronavirus crisis. Tax analysts warn however that the idle time benefits, accounting for maximum 75% of the gross salary, will be subject to the same tax rates as the regular salaries.



    Meanwhile, the governor of the National Bank of Romania, Mugur Isărescu, says that the tensions created by the COVID-19 crisis in the monetary, financial and banking sector have already reached the peak and will subside. Isărescu explained in a news release that after successive days with substantial cash withdrawals, the situation is now stable.



    According to the central bank governor, there were isolated, temporary bottlenecks shortly after the state of emergency was announced. Between March 11 and 20, banks withdrew some 900 million euros in cash from the central bank, in order to cover the demand for cash from their clients. This was double the figure reported during the winter holidays in December 2019.



    Over the past few days, however, the National Bank says, withdrawals fell substantially, and at present banks are able to cover their ATM and payment needs from their own resources. The cash reserves of the National Bank also stayed within prudential limits and increased slightly in the last several days.



    According to the central bank, there are no problems in covering the demand for cash in local currency. The bank recommends nonetheless that individuals and companies try and use non-cash payment instruments as much as possible these days.



    After the National Bank announced its monetary policy decisions, interest rates were cut considerably, and the exchange rate for the national currency stabilized within a 1% range, with a slight upward trend reported lately, the central banks news release also reads.


    (translated by: Ana-Maria Popescu)

  • February 5, 2020 UPDATE

    February 5, 2020 UPDATE

    MOTION Romanias Liberal government was dismissed on Wednesday under a no-confidence motion tabled by the Social Democrats in Opposition. The motion got 261 votes, which was more than the required 233-vote threshold. The document signed by the Social Democratic Party and the Democratic Union of Ethnic Hungarians in Romania, accuses the Orban Cabinet of breaching democratic principles, by changing the electoral legislation too close to the scheduled election date. As a result, the bill reintroducing the 2-round voting system in local elections is also rejected. President Klaus Iohannis invited political parties to consultations on Thursday, and said he may announce his proposal for a PM on the same day. Iohannis made it clear that he is in favour of early elections and that the best solution for Romania is to turn to voters. Iohannis also said that if parliamentary parties do not agree with early elections, he will insist for a government with a reform agenda, built by and around the Liberal Party.




    MOLDOVA International Monetary Fund experts Wednesday announced that the 3-year plan agreed with the Republic of Moldova has run according to expectations and has met all performance criteria. The reforms implemented by the authorities helped rehabilitate the banking sector and strengthen macroeconomic and financial stability. The progress is particularly commendable considering the unstable domestic political scene, with 3 governments succeeding each other during the implementation period, the IMF also says. According to the institution, in 2019 Moldovas GDP grew by 4.2%, and it is expected to stay around 4% in the medium run. The budget deficit in late 2019 was 1.5% of the GDP, below the cap set under the programme.



    WHO – The director general of the WHO said the world
    still has time to prevent the new coronavirus from spreading and causing a
    larger-scale global crisis. Dr. Tedros Adhanom Ghebreyesus pointed out that the
    epidemic is first of all an emergency for China, and managing the situation at
    the virus epicentre is the best way to stop its spreading. On Wednesday the WHO
    requested over 610 million euros in funds for fighting the epidemic in the next
    3 months. So far over 24,000 people have been contaminated with the new
    coronavirus and almost 500 have died from the virus. In Bucharest, the
    government approved the setting up of emergency care stocks for epidemic
    situations and the required quarantine measures, through an emergency order
    which also provides for the purchase of thermal scanners to equip the country’s
    16 airports.


    GERMANY For the first time in post-WW2 Germany, the prime minister of a state was elected thanks to the votes of a far-right party on Wednesday. The Liberal candidate Thomas Kemmerich was elected in Germanys eastern state of Thuringia with help from Angela Merkels Christian Democrats and the anti-immigration and anti-elite party Alternative for Germany. So far Germanys traditional parties had rejected any cooperation with the far-right, or even agreed to various alliances in order to isolate the far-right. Wednesdays result is seen by the German media as a “political earthquake.



    (translated by: Ana-Maria Popescu)

  • December 29, 2019

    December 29, 2019

    VISIT PM Ludovic Orban will be on a working visit to EU and NATO institutions in Brussels between January 7th and 9th, the Government announced today. The Romanian PM will have meetings with the European Commission chief Ursula von der Leyen, and with the NATO secretary general Jens Stoltenberg. The agenda also includes talks with the president of the European Council Charles Michel and with the president of the European Parliament David Sassoli.




    PENSIONS The Romanian public pension system is in imminent danger, given that the number of employed contributors has dropped significantly, and people need to be encouraged to save money in privately-managed pension funds, which ensure more safety, transparency and traceability, the Labour Minister Violeta Alexandru said in an interview to AGERPRES news agency. She also warned that there is a trend across Europe to increase the retirement age, but she did not suggest that the Government plans to take any measures in this respect in the current term in office. The Labour Minister also expressed concern with the budgetary impact of the planned 40% pension raise as of September 2020, as decided by the previous, Social Democratic cabinet dismissed in October, but said that as long as she is the labour minister the law will be complied with.




    CUSTOMS The customs offices on the Romanian – Moldovan border will be revamped and upgraded as part of a EU-funded project. Included in the project are the check points in Albiţa, Sculeni and Giurgiuleşti, which are seen as strategic points for the Unions security policy. The programme has a 36-month deadline for implementation, a total budget of 10 million euros, and is designed to enhance institutional and operational efficiency in customs offices by modernising the infrastructure and streamlining the transit of goods and persons. A number of 347 customs workers will also be trained to use special equipment to fight cross-border organised crime.




    FINANCIAL Most analysts in CFA Romania Association expect the national currency to depreciate in the next 12 months, to 4.8663 leu for the euro, with an average inflation rate of 3.52%, according to data in the Macroeconomic Confidence Indicator for November. CFA Romania is an organisation of chartered financial analysts certified by the CFA Institute (USA). At present CFA Romania has over 240 members. The Macroeconomic Confidence Indicator was launched by CFA Romania in May 2011 and is designed to measure the financial analysts expectations regarding Romanias economy for the coming 12 months.




    UKRAINE The Ukrainian governmental forces and the pro-Russian separatists in eastern Ukraine have initiated a prisoner exchange, thanks to which all people taken captive in the conflict 5 years ago should be able to return home, Russian news agencies report. The prisoner exchange agreement was reached in Paris this month by the Russian leader Vladimir Putin and Ukraines president Volodimir Zelenskiy, in the first Ukraine peace summit since 2016. The French-German brokered deal includes a number of measures such as consolidation of the cease-fire, massive prisoner swaps by the end of December, new troop pull-outs from the 3 zones by the end of March 2020. The conflict between the Ukrainian army and pro-Russian separatists—backed by Moscow, according to the West and to Kiev—dates back to 2014 and has left behind over 13,000 dead and nearly 1.5 million displaced. The peace agreements signed in Minsk in 2015 allowed for a substantial decrease in violence. This September Moscow and Kiev also swapped an important number of prisoners.




    HANDBALL Romanias mens handball team is playing today against North Macedonia in the Carpati Trophy final. In their first match with French top league Saint Raphaels coach Rareş Fortuneanu as a manager, Romania defeated Netherlands on Saturday, 27-25. In the first match of the competition, North Macedonia outplayed Algeria 25-24. Netherlands and Algeria will face each other for the 3rd place. The games are part of the preparations for the first stage of the 2021 Egypt World Championships qualifiers, in which 32 teams are taking part. Next month, in the preliminary tournament in Italy, Romania will play against the host country, Georgia and Kosovo.


    (translated by: Ana-Maria Popescu)

  • From a weak leu to bank interest rates

    From a weak leu to bank interest rates

    The Romanian currency, the leu, finished the week at a new record low against the euro. The leu has depreciated constantly in recent days. On Friday, the exchange rate set by the National Bank of Romania was 4.6975 against the euro. Under the circumstances, the president of the parliaments economic committee Daniel Zamfir asked the National Bank to change the regulation and method of establishing the ROBOR index, which is used for the calculation of consumption credits in lei.



    He also invited the National Bank governor Mugur Isarescu and the president of the Competition Council Bogdan Chiritoiu to provide explanations on the subject. Zamfir, who is a senator of the Alliance of Liberals and Democrats, the junior member of the ruling coalition, says he has information originating from a hushed-up investigation of the Competition Council according to which this index is faked with the direct involvement of the National Bank and does not represent the result of a free market.



    Daniel Zamfir: “The banks act in concert to raise the ROBOR level and thus make up for their own hard currency speculations. How? Its very easy, they raise the ROBOR level, thus leading to a rise in the rate paid by people who have credits and thats how they cover the holes they made elsewhere.



    The senator says these allegations are based on information coming from the banking market and a report of the Competition Council that began ten years ago and which has never been published. The representatives of the Competition Council say no proof was discovered about a possible understanding between banks in 2008, and that the investigation was finalised in 2013.



    The spokesman for the National Bank Dan Suciu has reacted to the allegations saying the ROBOR market functions in a very transparent manner and is constantly made public by the National Bank: “The National Bank has as main objective the stability of prices, that is inflation. The main instrument it uses is the monetary policy interest rate. It is around these monetary policy interest rates that the variation corridor is established. The ROBOR fluctuates on the market depending on this variation corridor. Thats how the market works all over the world.



    The representatives of the National Bank of Romania also say that the depreciation of the national currency in recent days should not be a reason for concern. The Banks strategy advisor Adrian Vasilescu says that since the start of the year the leu has only depreciated by 0.6% and that the National Bank can only intervene if this level is in the region of 4 or 5%. Economic analysts say an exchange rate that is closer to the realities of the Romanian economy would be 4.75 lei for one euro. In their opinion, the leu will continue to depreciate in the coming period. (Translated by C. Mateescu, edited by D. Vijeu)

  • February 24, 2014

    February 24, 2014

    PROTESTS – Around 100 people Friday picketed the Government headquarters, protesting against the leftist Social Democratic Party in power and against its Justice Minister, Tudorel Toader. It was the second night of protests since Toader announced he formally asked for the dismissal of the chief prosecutor of the National Anti-corruption Directorate, Laura Codruţa Kovesi. In a report covering the activity of the institution between February 2017 and February 2018, Minister Toader criticised Mrs. Kovesi for an excessively authoritarian management style, her involvement in cases investigated by the Directorate and the failure to investigate prosecutors suspected of abuse. The Justice Minister also claimed the DNA chief defied Parliament and challenged rulings made by the Constitutional Court. The request for dismissal has been forwarded to the Superior Council of Magistracy, which must be consulted on the matter, but the decision is in the hands of President Iohannis. On Friday President Klaus Iohannis reiterated his support for Laura Codruţa Kövesi. Backed by the parliamentary majority, made up of the Social Democrats and the Alliance of Liberals and Democrats in Romania, Toaders report was strongly criticised by the right-wing opposition.




    GRECO – The Romanian Justice Minister, Tudorel Toader, this week had a meeting in Bucharest with a delegation of the Group of States against Corruption – GRECO, which traveled to Romania for an emergency assessment of the new justice laws in respect of the fight against corruption. The talks focused on the amendments to the justice laws and the practical consequences that they may have on the judiciary. The GRECO team also had meetings with representatives of other governmental agencies, the legislative power and the judiciary, as well as of relevant NGOs. GRECO said, at the end of the talks in Bucharest, that those in charge of investigating, prosecuting and trying corruption offences should benefit from adequate independence and autonomy, including in terms of disciplinary mechanisms. The delegation recommended that Bucharest requested the opinion of the Venice Commission regarding the planned judicial reform.




    EDUCATION – Over 70 foreign education institutions are attending this weekend the 28th World Education Fair in Bucharest. Last year over 6,000 young Romanians chose to further their education abroad. Most of them went to Britain, the Netherlands, Denmark, Germany and Spain.




    EU FUNDING – EU funding, particularly the cohesion and the agriculture funds, might be lowered by up to 15% in the next EU multi-annual budget, beginning 2020 when the UK will no longer be a member. The announcement was made by the president of the European Commission Jean-Claude Juncker on Friday, at the end of an informal meeting of EU leaders. He added that 15 out of 27 member states were willing to raise their national contributions to the common budget. President Klaus Iohannis said at the meeting that Romania was open to the idea of contributing more than 1.1% of the GDP instead of 1%, so that the current levels of the cohesion and Common Agricultural Policy funding be maintained, which countries like Romania need in order to bridge the gaps in social and economic development compared to Western Europe. EU leaders have agreed that the Union must spend more on defence and security, for the Erasmus education programme and for curbing illegal migration. The President of the European Council Donald Tusk has announced that EU leaders are willing to step up negotiations on the next multi-annual financial framework, but that an agreement is unlikely to be reached this year.





    MILITARY – The Kandahar military base in southern Afghanistan has today hosted a ceremony to transfer authority from the Romanian Battalion 280 Infantry, Fearless Hearts, to Battalion 30 Mountain Troops, the Carpathian Eagles. For one month, the members of the two task forces conducted joint missions to enable the Mountain Troops to take over each segment of the theatre of operations. Among other things, the Romanian military are conducting land patrol missions on an area of 1,200 sq km, assisted by drones operated by the American partners and working together with the Afghan forces. Kandahar is Afghanistans second-largest town after the capital city Kabul. The area managed by the Romanian troops is densely populated, and threats are significant, the Radio Romania envoy reports. Analysts expect this summers parliamentary election to strengthen the Taliban presence in the region. A suicide attack by the Islamic State group in Kabul has killed 3 and wounded 5 people today.


    (translated by: Ana-Maria Popescu)

  • February 24, 2014

    February 24, 2014

    PROTESTS – Around 100 people Friday picketed the Government headquarters, protesting against the leftist Social Democratic Party in power and against its Justice Minister, Tudorel Toader. It was the second night of protests since Toader announced he formally asked for the dismissal of the chief prosecutor of the National Anti-corruption Directorate, Laura Codruţa Kovesi. In a report covering the activity of the institution between February 2017 and February 2018, Minister Toader criticised Mrs. Kovesi for an excessively authoritarian management style, her involvement in cases investigated by the Directorate and the failure to investigate prosecutors suspected of abuse. The Justice Minister also claimed the DNA chief defied Parliament and challenged rulings made by the Constitutional Court. The request for dismissal has been forwarded to the Superior Council of Magistracy, which must be consulted on the matter, but the decision is in the hands of President Iohannis. On Friday President Klaus Iohannis reiterated his support for Laura Codruţa Kövesi. Backed by the parliamentary majority, made up of the Social Democrats and the Alliance of Liberals and Democrats in Romania, Toaders report was strongly criticised by the right-wing opposition.




    GRECO – The Romanian Justice Minister, Tudorel Toader, this week had a meeting in Bucharest with a delegation of the Group of States against Corruption – GRECO, which traveled to Romania for an emergency assessment of the new justice laws in respect of the fight against corruption. The talks focused on the amendments to the justice laws and the practical consequences that they may have on the judiciary. The GRECO team also had meetings with representatives of other governmental agencies, the legislative power and the judiciary, as well as of relevant NGOs. GRECO said, at the end of the talks in Bucharest, that those in charge of investigating, prosecuting and trying corruption offences should benefit from adequate independence and autonomy, including in terms of disciplinary mechanisms. The delegation recommended that Bucharest requested the opinion of the Venice Commission regarding the planned judicial reform.




    EDUCATION – Over 70 foreign education institutions are attending this weekend the 28th World Education Fair in Bucharest. Last year over 6,000 young Romanians chose to further their education abroad. Most of them went to Britain, the Netherlands, Denmark, Germany and Spain.




    EU FUNDING – EU funding, particularly the cohesion and the agriculture funds, might be lowered by up to 15% in the next EU multi-annual budget, beginning 2020 when the UK will no longer be a member. The announcement was made by the president of the European Commission Jean-Claude Juncker on Friday, at the end of an informal meeting of EU leaders. He added that 15 out of 27 member states were willing to raise their national contributions to the common budget. President Klaus Iohannis said at the meeting that Romania was open to the idea of contributing more than 1.1% of the GDP instead of 1%, so that the current levels of the cohesion and Common Agricultural Policy funding be maintained, which countries like Romania need in order to bridge the gaps in social and economic development compared to Western Europe. EU leaders have agreed that the Union must spend more on defence and security, for the Erasmus education programme and for curbing illegal migration. The President of the European Council Donald Tusk has announced that EU leaders are willing to step up negotiations on the next multi-annual financial framework, but that an agreement is unlikely to be reached this year.





    MILITARY – The Kandahar military base in southern Afghanistan has today hosted a ceremony to transfer authority from the Romanian Battalion 280 Infantry, Fearless Hearts, to Battalion 30 Mountain Troops, the Carpathian Eagles. For one month, the members of the two task forces conducted joint missions to enable the Mountain Troops to take over each segment of the theatre of operations. Among other things, the Romanian military are conducting land patrol missions on an area of 1,200 sq km, assisted by drones operated by the American partners and working together with the Afghan forces. Kandahar is Afghanistans second-largest town after the capital city Kabul. The area managed by the Romanian troops is densely populated, and threats are significant, the Radio Romania envoy reports. Analysts expect this summers parliamentary election to strengthen the Taliban presence in the region. A suicide attack by the Islamic State group in Kabul has killed 3 and wounded 5 people today.


    (translated by: Ana-Maria Popescu)

  • December 27, 2017

    December 27, 2017

    JUDICIAL OVERHAUL – Romanian PM Mihai Tudose is today having talks with
    representatives of 43 civic organisations, which are actively involved in the
    protests against the criminal laws in Romania, who asked the prime minister to
    have a meeting on the justice laws and the amendments to the criminal codes.
    The organisations have expressed readiness to contribute solutions, so that the
    rule of law, democratic principles and fundamental rights be observed. The
    Senate, as a decision-making body, has recently adopted the draft which amends
    the Law on the organisation and functioning of the Higher Council of
    Magistracy, the draft on judicial organisation and the one on the Status of Magistrates.
    The amendments, backed by the ruling coalition made up of the Social-Democratic
    Party-the Alliance of Liberals and Democrats, are vehemently contested by the
    right wing opposition, part of civil society and hundreds of magistrates, who
    consider the reform process is not transparent. Among others, a legislative draft proposal submitted at the Chamber of
    Deputies on December 18 by several Social-Democratic MPs provides for house
    arrest for those who receive sentences of up to three years and sets a 200,000
    Euro threshold for abuse of office. It also provides for shorter sentences
    for bribe taking and giving as well as for influence peddling. On Friday, the
    Secretary General of the Council of Europe, Thorbjorn Jagland, sent a letter to
    Romania’s President, Klaus Iohannis, urging him to call for an opinion from the
    Venice Commission on the legislative reforms adopted by Parliament. Earlier,
    the Bucharest embassies of Belgium, Denmark, Finland, France, Germany, the
    Netherlands and Sweden had issued a common letter, calling on all sides
    involved in the judicial overhaul to avoid any sanction which might lead to the
    weakening of the independence of the judiciary and of the fight against
    corruption. In response, the Foreign Ministry said that strengthening the rule
    of law and intensifying the fight against corruption are two of the priorities
    set by the Romanian Government




    FINANCIAL– Romania has paid back over 1.263
    billion Euros in 2017 of a stand-by loan agreement contracted in 2009 from the
    EU and the World Bank. The sum of money represents cap-rates, interest rates
    and commissions, data issued by the Finance Ministry show. The largest sum of
    money was paid back to the EU, that is 1.254 billion Euros. September was the
    payment peak, when over 1.179 billion Euros were reimbursed to both the EU and
    the World Bank. Romania should still pay back 3.5 billion Euros to the WB and
    the EU, until 2023.




    POVERTY -Approximately two in five people who had a job last year
    were living under the poverty line, the Romanian National Institute of
    Statistics shows. Of the people who carried out economic-social activities and
    got a salary, one in five men and one in seven women lived under the poverty
    line in 2016. As regards the unemployed, one in two is poor.




    SPLIT VAT – President Klaus Iohannis has
    promulgated the law on the payment of split VAT. As of January 1, 2018,
    companies which are undergoing an insolvency process and those which have
    failed to pay the VAT in due time must open separate accounts for the payment
    of the VAT. Firms, which have reported delays in paying the VAT will have the
    right to renounce to the payment of the split VAT after a six month-period since
    they paid back all their debts. Companies which willingly choose this system
    should contribute money for at least a year and afterwards can renounce to the
    option. They benefit from tax cuts during the year when they choose to pay the
    split VAT. Also under this law, debt ceilings for firms have increased ten
    times, and consequently, the ceiling for big contributors stands at some 15
    thousand lei (3.2 thousand Euros) and for medium-sized contributors at 10,000
    lei.




    NUCLEAR PROGRAM- The North-Korean nuclear missile program runs counter to the
    requirements set by the UN Security Council, Moscow and Washington say. At the
    initiative of the US, the Russian foreign minister and the US Secretary of
    State, Sergey Lavrov and Rex Tillerson, respectively, have had a phone
    conversation on the issue and agreed that it is necessary to move from the
    language of sanctions to the negotiation process as soon as possible.
    According to Moscow, Lavrov has underlined that it is unacceptable to
    exacerbate tensions around the Korean peninsula with Washington’s aggressive
    rhetoric toward Pyongyang and increasing military preparations in the region.
    The UN Security Council on Friday adopted a resolution which imposes new
    sanctions on Pyongyang, particularly restrictions on oil imports, which are
    instrumental for its ballistic and nuclear programs, deemed by North Korea as
    an act of war.







  • Central Bank Warns against Economic Risks

    Central Bank Warns against Economic Risks

    Romania remains financially stable, however the risks that might threaten this stability have grown since the previous year, reads the annual report of the National Bank of Romania, which maps the risks against the countrys financial stability and the dangers faced by its economic performance. This year, the National Bank added two new risks to the ones mentioned in its 2015 report. One of them is a severe systemic risk related to the uncertain legislative framework. The Governor of the central bank, Mugur Isarescu, explained:



    Mugur Isarescu: “Over the past six months, there has been a growing number of legislative initiatives aimed at regulating the financial and banking market through retroactive intervention on the contracts signed between banks and their clients. The best known of them is the debt discharge bill. When Parliament revisited the bill, it passed a number of amendments that addressed some of the problems the original text raised, but the central issues are, on the one hand, the retroactive application of the law, and on the other hand the stability and predictability of the legislative environment. Another element that prompted us to identify all legislative proposals in the financial-banking sector as a severe systemic risk is the information we have about other legislative initiatives that may seriously affect the countrys financial stability, some of them motivated by 2016 being an election year.



    Another new risk mentioned in the report is the so-called Brexit, the effects of which would question the very functioning of the European Union and would entail possible capital outflows, reductions of EU funds, the depreciation of the national currency, and higher financing costs. Also viewed as systemic risks are the possible decrease in investors confidence in the emerging markets and the refugee crisis. The deputy Governor of the National Bank, Liviu Voinea, spoke about other possible problems:



    Liviu Voinea: “The growing foreign uncertainty must not be deepened by domestic weaknesses that we might create for ourselves. The banking sector has been strengthening, contagion risks have lowered, loans in the national currency have come to account for the largest share of the total loans. On the other hand, although payment discipline has improved, it is still a vulnerable point for non-banking financial companies. Similarly, access to home loans has improved, but it risks decreasing because of the recent legislative initiatives.



    As of next year, the central bank will issue bi-annual reports, to be released in April and October, Governor Mugur Isarescu announced. This is on the one hand because the Romanian central bank adopted the model of the European central bank, and on the other hand because it seeks to provide updated and accurate data on the domestic and foreign challenges facing the countrys financial stability.


    (translated by: Ana-Maria Popescu)