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  • September 23, 2024 UPDATE

    September 23, 2024 UPDATE

    BUDGET The government in Bucharest on Monday endorsed the first budget adjustment this year. The new positive adjustment will be bringing the GDP deficit up to 6.9%, even though the Finance Ministry also forecasts income raises. The money will be mainly used for co-funding investment projects and also for pay rises approved amid a series of protests this year. According to Prime Minister Ciolacu, Europe’s developed countries, Germany and France, supported investment concurrently with the rising budget deficit. Ciolacu described this raise as sustainable, given that 8.5 lei out of 10 will be used for funding motorways, hospitals, schools, gas and water distribution networks and other objectives of local interest. Ciolacu went on to say that the invested sums would be returned eightfold to the budget as it happened in the case of the motorways built.

     

    FUNDS Romania is to receive 21.6 million Euros from the European Commission for the farmers who incurred losses from the bad weather this summer. The decision was made at the AgriFish Council, which takes place in Brussels and where Romania is being represented by the Minister of Agriculture and Rural Development, Florin Barbu. The European Executive has proposed the allotment of 120 million Euros out of its agriculture reserve in order to directly support farmers from Romania, Bulgaria, Germany, Estonia and Italy. According to Barbu, it’s for the first time when farmers get compensations in the same year with the calamities. Data released by the Agriculture Ministry in Bucharest says that over 16 thousand farmers have applied for investigations and the assessment of their destroyed crops. Minister Barbu says that roughly 2 million hectares of corn and sunflower crops have been affected by the extreme weather in Romania plus 100 thousand hectares of autumn crops like wheat and rape.

     

    UN President Klaus Iohannis will be heading Romania’s delegation at the 79th session of the United Nations General Assembly taking place in New York on the 24th and 25th September. The main theme is “Unity in diversity, for the advancement of peace, sustainable development and human dignity for everyone everywhere”. According to a statement from the Romanian president’s office, Klaus Iohannis will give an address on Wednesday, in which he will call for maintaining multilateral dialogue, especially in a UN format, as an essential element of regional and global security. He is also expected to highlight his country’s efforts and contribution, at all levels, to finding solutions to current global challenges, from security crises like the war in Ukraine or the conflict in the Middle East, to major challenges facing the world, including the climate emergency and cyber threats.

     

    HANDBALL The Romanian women’s handball vice-champions CS Rapid Bucharest lost 37-29 to the German side HB Ludwigsburg at home on Sunday evening, in a Champions League Group B match. Rapid will next play Team Esbjerg away on 6th October. The Romanian side are in 4th place in their group, with 3 points in 3 matches. Previously, the Romanian champions CSM Bucharest defeated the Croatian side RK Podravka Vegeta Koprivnica 29-28 away, while CS Gloria Bistriţa-Năsăud lost at home to the Slovenian side Krim Mercator Ljubljana 30-35. CSM have four points in three matches played, and Gloria two points. The latter will play their next match away against FTC-Rail Cargo Hungaria on 5th October, while CSM will face the Danish side Nykobing Falster Handbold at home on 6th October.

     

    ELECTIONS The Romanian foreign ministry has published a guide for postal voting ahead of the presidential and parliamentary elections this year. The voter registration deadline for Romanian citizens with their domicile or residence abroad is 10th October for the presidential elections and 17th October for the parliamentary elections. Registration is made by filling in an online form available at votstrăinătate.ro, a website managed by the Permanent Electoral Authority.

    (bill)

     

     

     

  • Government made its first budget revision this year

    Government made its first budget revision this year

    The Bucharest Government approved the first budget revision of this year, which will trigger an increase in the budget deficit. According to Prime Minister Marcel Ciolacu, the revision is sustainable, because 84% of the deficit represents expenses for investments, and the money will return multiplied to the budget state. The correction is positive and is based on the increase in revenues and the increase in the deficit to 6.9%. The Prime Minister pointed out the fact that investments and not consumption would continue to be supported. He gave as an example the highways, which will bring back eight times more money than was spent on their construction.

     

    Marcel Ciolacu: “It is natural for the state to first transfer the money to the Minister of Transport, Sorin Grindeanu, who gives it to the companies, they finish our highways, which we have been waiting for for 30 years, and, with a delay of a month or two, taxes return to the state. Moreover, in the next period, at least what it is invested in the infrastructure multiplies in the economy up to eight times. You put in one euro, you get 6 or 8 euros back, in the area where we have directed a lot of investments at the moment.”

     

    The Prime Minister also said that the reduction of unnecessary public expenditure would continue. In his opinion, the budget deficit must be an exclusively general investment deficit. Following the revision, health, transport and education receive additional funds.

     

    Social insurance budgets are also being increased for the payment of recalculated pensions, which have increased since September 1, but also for unemployment allowances and related social insurance contributions. The Ministries of Health, Internal Affairs, European Projects, Agriculture and Energy will also receive additional funds.

     

    On the other hand, other main authorizing officers will have smaller budgets. These include the General Secretariat of the Government, the Ministry of Economy, the Senate and the Chamber of Deputies, the Special Telecommunications Service, but also the Ministry of Development. The budget revision proposal is based on the increase in revenues and expenses, which have gone up significantly. According to specialists, this will lead to a deficit of 2% above the authorities’ estimate of 5% at the beginning of this year. All these in the context of a revised downward economic growth forecast, from 3.4 to 2.8% of GDP. The National Strategy and Forecast Commission (CNSP) estimates a GDP growth of 3.5% for 2025, and 3.7% for 2026. Inflation at the end of the year is forecast at 4.5%, above the Central Bank target of 4%, to decrease to 3.8% next year and to 2.9% in 2026. The trade deficit will increase, according to the Forecast Commission, to 32.7 billion euros this year, from 28.9 billion euros last year, after an advance in exports (1.8%) and imports (4.5%). The average exchange rate is projected at 4.98 lei/euro for this year, and the average net monthly salary could rise by 14.8% in 2024, to 5,066 lei (approx. 1020 euros).

  • September 4, 2024 – UPDATE

    September 4, 2024 – UPDATE

     

    VISIT PM Marcel Ciolacu makes a one-day visit to Israel on Thursday, to express solidarity with the authorities of that country in the current context in the Middle East. He is accompanied by the foreign minister Luminiţa Odobescu, and by the economy minister, Radu Oprea. The Romanian PM will have a meeting with his Israeli counterpart, Benjamin Netanyahu, and will be received by the Israeli president, Itzhak Herzog, and the Parliament speaker. The Romanian delegation travels to Israel on a military aircraft.

     

    DEFENCE A meeting of the B.9 defence ministers will be hosted by Bucharest this September, under a resolution passed by the Government on Wednesday. B.9 meetings are held regularly at head of state, foreign minister and defence minister level, as “opportunities to harmonise” member states’ national positions on topics to be included on the agenda of NATO summits and assemblies. Launched at the initiative of Romania and Poland in 2015, the Bucharest 9 format is a platform to strengthen dialogue and cooperation between the Allies on NATO’s eastern flank: Bulgaria, Czechia, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia and Hungary.

     

    BUDGET The Romanian government Wednesday passed measures to improve the collection of budget claims, to better utilise the funds earmarked for public services and to support investments implemented by local and central authorities from foreign financing sources. Bonuses are stipulated for those who pay their taxes on time. Another set of measures concerns taxpayers with debts at the end of August 2024. In their case, interests and late filing and late payment penalties are written off, provided that the principal debt is paid by November 25, 2024. The budget deficit target for this year could be reached, the finance ministry says, if measures are implemented to improve the collection of debts to the state budget, which were over EUR 14 bln at the end of August. Economists expect the budget deficit to be over 7% of GDP this year.

     

    UKRAINE Ukraine needs “fresh energy” after two and a half years of war against Russia, president Volodymyr Zelenskyy said on Wednesday, to explain an on-going government reshuffle that includes the country’s foreign minister, AFP and Reuters report. The reshuffle is the largest in Ukraine since the start of the Russian invasion in February 2022. The Ukrainian foreign minister Dmytro Kuleba, 5 other ministers and deputy PMs, as well as the official in charge of the privatization of state assets, have submitted their resignations to Parliament. Dmytro Kuleba has been one of the most vocal Ukrainian officials since the start of the war against Russia. He has constantly requested stronger Western assistance for Ukraine, and has tried to win over the countries wooed by Moscow, especially in Africa and Asia.

     

    FOOTBALL Romania’s national football team Friday begin their new season in the UEFA Nations’ League. The Romanian footballers will play their first match away from home against Kosovo, and on Monday, September 9, they will face Lithuania at home. Cyprus is also part of Romania’s group, C2. First place in the group means direct promotion to League B in the next edition of the League, while second place leads to play-offs for promotion. On the other hand, the 4th place leads to direct relegation to League D, while the 3rd place keeps the national team in League C for the next edition as well. Being ranked in the League of Nations groups also has a direct influence on the European qualifiers for the 2026 World Championship. The new coach of the national team is Mircea Lucescu, who returns to this post after almost 4 decades. Edward Iordanescu left the post after Euro 2024, in which Romania qualified for the round of 16. (AMP)

  • July 25, 2024

    July 25, 2024

    Paris – Romania’s president, Klaus Iohannis, is participating, today, in the inauguration of the House of Romania in Paris, an event organized by the Romanian Embassy in France. Tomorrow, he will attend the Opening Ceremony of the Summer Olympic Games in Paris, as well as the reception offered on this occasion by the French President, Emmanuel Macron. Last week, Iohannis received, at the Cotroceni Palace in Bucharest, the Romanian Olympic team that will compete in the Olympics. He handed the athletes the national flag, which will be carried during the opening ceremony by rowers Ionela and Marius Cozmiuc. The Romanian Olympic team has 106 athletes.

     

    Elections – The Romanian government is meeting today to discuss the organization of the parliamentary and presidential elections in November and December, respectively. The government will also analyze several draft emergency ordinances regarding the field of competition, the Romanian citizenship law and setting the maximum number of posts for the National Institute of Magistracy and the National School of Clerks. On the agenda of talks is also a bill that will bring a series of amendments and additions to the law on the public service of thermal energy supply, and the Interior Ministry is to benefit from a series of donations consisting of equipment, consumables and IT equipment. Also today, the budgets of the Ministries of Research, of the Environment, of the Legislative Council and the General Secretariat of the Government for the National Sports Agency will be supplemented. Last but not least, the Romanian government is to adopt a draft emergency ordinance regarding the implementation of the Start-Up Nation program for stimulating small and medium-sized enterprises, the 2024 edition.

     

    Diplomacy – Bucharest is hosting the Annual Meeting of Romanian Diplomacy. On this occasion, President Klaus Iohannis met, on Wednesday, with the heads of diplomatic missions, the heads of consular offices and the directors of Romanian cultural institutes. Romania, the president said, has become, in the last ten years, a credible, involved and respected regional, European and international actor, a real provider of stability and security. He told the Romanian diplomats that Romania’s major foreign policy objectives remain the consolidation of the role and influence in the EU and NATO and the deepening of the strategic partnership with the US. The second day of the meeting begins with a thematic session dedicated to hybrid threats and how to respond to them, with the participation of the Secretary General of the European External Action Service, Stefano Sannino and Oana Lungescu, Royal United Services Institute (RUSI) expert and former spokesperson for NATO. The debates will continue in a session with an economic theme, attended by guests from the government apparatus and the business environment. On this occasion the opportunities and perspectives regarding the stage of Romania’s accession process to the OECD and current topics on the diplomatic agenda will be addressed, as well as Romania’s economy in the current geopolitical context.

     

    Eurobarometer – More than 72% of the EU citizens believe that the community forum plays an important role in supporting the rule of law in their country, according to a recent Eurobarometer. In Romania, the proportion is 65%. The poll was released on Wednesday at the same time as the Rule of Law in the EU report, and shows that almost 9 out of 10 Europeans think it is important for all member states to respect the Union’s core values, an opinion unchanged from 2019 to present. Compared to 5 years ago, the proportion of those who feel informed about these values ​​has increased, from 43% to 51%. Through these fundamental values, Europeans understand the observance of human rights, the rule of law and democracy. The survey also shows that for 86% of Europeans it is important that the press and civil society organizations can work freely, without any pressure, even if they are critical of the government.

     

    Drone – Remains of a Russian drone were found in the north of Tulcea county, in the southeast of Romania, after the attacks from Tuesday night to Wednesday on the civil and port infrastructure in Ukraine, near the border with Romania, the Defense Ministry (MapN) reported on Thursday. According to MapN, the locations identified as possible areas of incidence are outside inhabited areas, with no infrastructure elements being affected. The Ministry announced that it has intensified the monitoring and surveillance measures of the national airspace. At the same time, MApN has sent a firm message of condemnation of these attacks by Russia on objectives and elements of Ukrainian civil infrastructure, which are unjustified and in serious contradiction with the norms of international law. We remind you that on the last two nights, the residents of the northern part of Tulcea County received RO-ALERT messages, informing them about the possibility of objects falling from the sky on the Romanian territory near the border with Ukraine. Similar incidents, in which fragments of Russia n drones fell on Romanian soil, were reported in the fall of 2023 and this year, in March.

     

    US – The US President Joe Biden said he withdrew from the race for a new term as president because he needs to unite the Democratic Party before the November elections. “I’ve decided the best way forward is to pass the torch to a new generation” he said. Biden said his domestic and foreign policies deserved another term, but American democracy must be saved, a statement that observers interpreted as an allusion to former Republican President Donald Trump’s despotic tendencies. He has said that he is now supporting Vice President Kamala Harris to become the new Democratic candidate in the electoral battle against Trump. In this context, the Democratic Party Committee agreed on a plan to officially nominate Harris as a presidential candidate on August 1, 20 days before the party convention. It is going to nominate its vice-president by August 7. (LS)

  • Romania’s trade deficit

    Romania’s trade deficit

     

    In the first 4 months of this year, Romania’s trade deficit (imports minus exports) was over EUR 9.3 bln, that is, EUR 440 mln deeper than in the corresponding period of last year, the National Statistics Institute announced on Monday.

     

    During this period, exports reached a rough EUR 31.3 bln, and imports exceeded EUR 40.6 bln. According to the National Statistics Institute, in the first 4 months of the year a big part of Romania’s imports and exports was accounted for by vehicles and transport equipment, as well as other manufactured products. Intra-EU trade accounted for approx. 73% of both imports, and exports.

     

    In this context, analysts believe the trade deficit is, alongside the budget deficit, one of the major weaknesses of the national economy. On the one hand, the government spends more than it makes, and on the other hand exports are lower than imports. Experts say that after a period in which the trade deficit showed signs of improvement, the trend now is for it to resume its negative trend, which also puts pressure on the national currency’s exchange rate.

     

    However, the same specialists argue, Romania’s foreign currency reserves should offset the trade deficit, which has stayed rather deep for several years, making the exports more competitive.

     

    Just days ago, the National Statistics Institute announced that the country’s forex reserves had exceeded EUR 65 bln, as against roughly 62.5 bln at the end of April, which is an all-time high for an indicator that impacts directly on the stability of the exchange rate and, consequently, on price stability. This has positive effects both in terms of strengthening the confidence of financial markets and of investors in Romania, and in terms of supporting the exchange rate stability.

     

    Analysts also point out that the rising trend in currency reserves has already been evident for a long time, and is a positive trend for Romania in the face of the highly volatile international situation and the uncertainty of the world’s financial markets as regards future developments. They also explain that a large chunk of the foreign currency reserves comes from European funds, which are exchanged into lei and used by the Finance Ministry to finance various investment projects.

     

    As financial experts argue, international reserves work as a safety net against prospective disruptions. But, they also warn, the rise in foreign currency reserves may also have less favourable effects. Romania’s currency exchange rate stability, all the more remarkable in the last few years given the various disruptions in the markets, has its downsides as well. Specifically, with a national inflation rising steeply to 16%, but a currency exchange rate staying roughly the same, Romania’s exports are affected, as they are less competitive in terms of prices. (AMP)

  • February 14, 2024

    February 14, 2024

    VISIT A Romanian
    delegation headed by PM Marcel Ciolacu is on a visit to Rome as of today. The
    main item on the agenda is the 3rd joint meeting of the 2 countries’
    governments, held 13 years
    after the previous inter-governmental summit. An economic forum will also be organised,
    attended by business people from the 2 countries. PM Ciolacu has meetings today with
    members of the Romanian community in Italy, and is to be received by His
    Holiness Pope Francis at the Vatican. Also today, the Romanian official has
    talks with the Mayor of Rome, Roberto Gualtieri. On Thursday Marcel Ciolcacu
    will have an official meeting with the PM of Italy, Georgia Meloni, followed by
    joint press statements. Italy is home to the largest Romanian community abroad,
    comprising more than 1.1 million citizens, and is Romania’s second-largest
    trade partner, with exchanges accounting for approx. 9.5% of the country’s
    foreign trade.


    CYBER ATTACK Several hospitals in Romania, including
    in Bucharest, have been targeted by a cyber-attack that encrypted data on their
    servers, the National Cyber Security Directorate (DNSC) announced. Most of the
    healthcare units affected by the incident had safety copies of their data.
    According to the health ministry, exceptional security measures have been
    implemented, with many units in the healthcare system disconnected from the
    internet for further inquiries. The Directorate Investigating Organised Crime
    and Terrorism Offences has started a criminal investigation.


    FARMERS The European Commission has officially endorsed a regulation which
    grants a one-year exemption from the rule requiring farmers to keep 4% of their
    arable land fallow. The rule, designed to help improve environment
    conditions, had sparked protests across the EU, including in Romania. In exchange, farmers
    are now required to grow nitrogen fixing crops such as lentils or peas. The new
    regulation is intended to give farmers more flexibility, while also protecting
    biodiversity and land quality. The measure is to be applied for the year 2024. Member
    States have 15 days to notify the Commission of the implementation option that they
    choose out of the 2 alternatives available.


    STUDENTS Romanian schoolchildren may
    have free of charge access to museums, concerts, theatre and opera shows,
    movies and other cultural and sports events organised by public institutions,
    within approved budgets, under a new bill passed in the Senate and backed by
    all parliamentary parties. In a society threatened by the absence of role
    models, museums and other informal learning venues should be available to
    students free of charge, and this facility is an investment in their
    educational future, the bill authors argue. The draft law is to be forwarded to
    the Chamber of Deputies for the decisive vote.


    TRANSPORTS Special lanes for EU and third-country lorries will be
    operational in several Romanian checkpoints as of this week, the public road
    company has announced. This is one of the measures agreed on with the carriers
    that have been protesting in Romania over the past month, and it is designed to
    reduce waiting times at the border. Moreover, carriers will no longer be
    charged additional fees for weight 5% over the accepted ceiling. A new round of
    talks on separate flows for EU and non-EU lorries was held on Tuesday by the
    transport ministry, the public road company and road transport operators.


    INTERESTS The
    National Bank of Romania has decided to keep the monetary policy interest rate
    at 7% per year, the institution announced. The key interest rate has not been
    changed since last January, when the National Bank decided to raise it from
    6.75% to 7% per year. A balanced mix of macroeconomic policies and structural
    reforms, including the use of EU funding to encourage the country’s growth
    potential in the long run, are vital to maintaining macroeconomic stability and
    to strengthening the Romanian economy’s capacity to withstand negative
    developments, the institution said.

    NATO Eighteen NATO member states will reach the 2% of GDP defence allocation
    target in 2024, the NATO secretary general Jens Stoltenberg announced on
    Wednesday, ahead of a meeting of NATO defence ministers. According to Reuters, he
    also said that EU member states will invest a combined USD 380 bln in defence
    this year. The decision to earmark at least 2% of GDP to defence dates back to
    2006, but only some member states have reached this target. After Russia
    invaded Ukraine in February 2022, NATO member countries reiterated this
    commitment. Romania has channelled over 2% of its GDP for defence for several
    years, and after the start of the war in Ukraine it has committed to invest
    2.5% of GDP in Army equipment. (AMP)

  • January 18, 2024 UPDATE

    January 18, 2024 UPDATE

    LAWS The government
    in Bucharest on Thursday endorsed a series of bills to implement the solutions
    agreed upon after the talks it had with transporters and farmers following the
    latter’s protests of late. Among them there are amendments to the ways of
    weighing products at the border checkpoints. Aspects regarding the periodical
    technical checking of the vehicles registered in Romania and the professional
    certification of the specialized personnel in the field of road transportation
    have also been clarified. Under the new amendments, the prices of the mandatory
    insurance for trucks will go down. In another development, the government is
    granting a direct support of 100 Euros per hectare to the producers of
    vegetables in order to offset the losses they incurred due to the war in
    Ukraine. Farmers and transporters of Romania carried on their protests on
    Thursday for the ninth day in a row. They took to the streets of Afumati, a
    commune close to Bucharest, and to the checkpoints at the border with Ukraine. Also
    on Thursday, the mayor of Bucharest, Nicusor Dan, announced the local
    authorities approved a fresh protest on Sunday, Monday and Tuesday in
    Bucharest. Five thousand people, 100 tractors and 100 tractor heads are to
    participate in the aforementioned protest. Another professional category who is protesting against the
    government’s austerity measures these days is the family physicians and the
    medical personnel in the outpatient care units.




    RATE According
    to data released by the EU statistical office, EUROSTAT, Romania was among the
    EU countries with the highest inflation rate, in December last year. The average
    inflation rate at EU level stood at 3.4 % in December higher than a month
    before, when it reached 3.1%. The EU members with the highest inflation rates
    were the Czech Republic with 7.6%, Romania with 7% and Slovakia with 6.6%. The
    lowest inflation rates were reported in Denmark, 0.4%, Italy and Belgium, each
    with 0.5%. As compared to November 2023, the annual inflation rate went down in
    15 member states, was stable in Spain and rose in 11 countries.




    DEFICIT Romania’s
    budget deficit this year will be around 5% of the GDP, Finance Minister Marcel
    Bolos has announced. He said that Romania is among the countries with significant
    deficits, and that ten countries, including Poland and France will enter the excessive
    deficit procedure. According to Bolos, the government in Bucharest has to carry
    on its fiscal-budgetary measures, projects related to digitization, or aimed at
    implementing an improved collection of taxes and fighting tax evasion.




    EU The
    European Commission has announced it kicked off a detailed research into the
    legislation of Ukraine and the Republic of Moldova, the first step in the process
    of the two countries’ EU accession. The Commission is concurrently assessing
    the way in which, Ukraine and the Republic of Moldova have already applied what
    the EU has requested as a preliminary condition. The Community Executive is
    working on a draft of the negotiation framework with the two states, a document
    to be submitted to the Council for approval, which will also mark the formal
    opening of the accession negotiations. The decision to launch this process was made
    by the European Council in December 2023.


    (bill)

  • January 4, 2024 UPDATE

    January 4, 2024 UPDATE

    Meeting – The Romanian government met Thursday in the first session of 2024. The government members adopted, among other things, an initiative to optimize the process of issuing passports. The elaborated draft law, which will be sent to Parliament for debate and approval, makes concise and clear the role of the General Directorate of Passports in relation to attesting the quality of Romanian citizenship, in cooperation with other institutions. In order to optimize the process of issuing travel documents, they consider giving the General Directorate of Passports the possibility to verify the collection of the amount representing the value of simple passports, and to return the amount respectively, in situations where it was not paid properly or the related service was not provided. Another draft law adopted on Thursday stipulates that disputes resulting from contracts of mandate concluded by state companies in Romania must be settled in the country. The move transposes European Union norms into the law on international judicial cooperation in criminal and criminal procedure matters. Also on Thursday, the Government adopted a modification of the funding from the state budget of the earthquakes and landslides natural risk mapping.



    Missiles – NATO has announced its decision to support a group of member countries including Germany, the Netherlands, Romania and Spain to purchase up to 1,000 Patriot anti-aircraft missiles. According to NATO, the European production will be increased to cover the growing demand, being also aimed at strengthening the European Sky Shield. The contract stands at 5.5 billion dollars and the cost of each Patriot missile is around 4 million dollars. The contract also covers the maintenance of the Patriot defense systems. NATO Secretary General Jens Stoltenberg has underlined that raising the ammunition production is essential for the security of the allied countries and Ukraine.



    Agreement — A person’s period of work and their rights to pension have mutually been recognized by Romania and the United States, after the law ratifying the agreement on the issue was promulgated by Romania’s president Klaus Iohannis. Under the new agreement, it will be possible to capitalize on the periods worked both in Romania and the United States, in order to open the pension right on the principle of accumulation, with the proportional granting of the pension by each state, depending on the contribution periods completed. The document also provides for the export of pensions, a major facility regarding the mobility of pensioners in the two countries and maintaining their access to the pension rights being paid. The bill also includes provisions for the posted workers who have been exempted from paying health and social security contributions to the country where they were sent to work.



    Priorities – Solving the problem of resident physicians who passed the specialty exam at the end of 2023 was mentioned as a priority for the beginning of the year by Romania’s Prime Minister Marcel Ciolacu. At the start of the first Government meeting in 2024, the Prime Minister recalled that there are approximately 4,500 doctors in which the Romanian state has invested hundreds of millions of Euros and stated that the government must ensure that they remain in Romania. Ciolacu asked the Ministries of Health and Development to update the lists of vacant positions and to come up with memoranda for organizing contests to fill these vacancies, and he also asked the Finance Ministry to cooperate so that this should happen as soon as possible. According to the data of the European Statistical Office, Romania had 350 active physicians per 100,000 inhabitants in 2021. The ranking was led by Greece with 629 physicians per 100,000 inhabitants, and the lowest rate was recorded in France with 318 doctors per 100,000 inhabitants. All in all, in 2021, there were 1.82 million doctors in the European Union.



    Chisinau – Almost 81% of the primary and secondary school children in the Republic of Moldova are taught in Romanian, according to data recently published by the National Bureau of Statistics in Chisinau. Besides this percentage, 19% are taught in Russian and 0.1% study in English. In the 2023-2024 school year, over 1,200 general primary and secondary education institutions operate in the Republic of Moldova, of which almost 900 are in rural areas. Statistical data also show that the number of students studying in public schools decreased this school year compared to the previous one, and more and more students are studying in private schools. Also, last year, the number of secondary school graduates decreased by almost 5%, and that of high school graduates increased by 4%. (LS)

  • October 29, 2023

    October 29, 2023

    GOVERNMENT PM Marcel Ciolacu announced that
    preparations have started for drafting the 2024 public budget. The government
    will analyse the projects and programmes that went well, as well as the
    investment applications for next year. On the other hand, the PM dismissed the
    idea of other fiscal changes in addition to the ones for which his Cabinet has
    taken responsibility before Parliament. The law on measures to ensure Romania’s
    long-term financial sustainability, promulgated by president Klaus
    Iohannis on Thursday, introduces
    new taxes and tax raises and cuts off tax facilities.Some of the measures take effect
    on November 1, while the others will be enforced as of January 1. Marcel
    Ciolacu also estimated that the new pensions law will be endorsed in Parliament
    by the end of next month and will take effect on January 1, 2024.


    VISIT
    The European Commission vice-president for Values and Transparency, Věra
    Jourová, will be on an official visit to Romania on Monday, when she will have
    meetings with president Klaus Iohannis, PM Marcel Ciolacu and other Cabinet
    members. According to the European Commission, the EU official will discuss the
    rule of law and reforms in the judiciary, Romania’s goals in the digital
    decade, the digitisation projects included in the National Recovery and
    Resilience Plan, as well as AI and fighting disinformation.


    ISRAEL
    Israel has moved to the second stage of the war against Hamas, namely the land
    operation in Gaza Strip, the Israeli PM Benjamin Netanyahu announced. In a
    televised address, he warned that this was going to be a long and difficult
    war, aimed at freeing the hostages taken by the Palestinian terrorist group and
    at destroying the military and leadership capabilities of Hamas. An Israeli
    tactics expert described Israel’s current operation as modular, with
    alternating attacks from 4 directions (water, air, land, and virtual). So far
    the Israeli Army resorted to air strikes to hit Palestinian territory, after
    the Hamas attacks of October 7 killed over 1,400 people in Israel. In turn, Hamas
    says the Israeli retaliatory strikes killed over 8,000 people. According to an
    Israeli army spokesman, the number of hostages held by Hamas was updated at 130.
    The UN secretary general, Antonio Guterres, voiced his surprise at the escalation
    of Israel’s military attack on the Gaza Strip after the UN General Assembly issued
    a resolution calling for immediate humanitarian ceasefire. Guterres said that
    in spite of this international consensus, the bombing has reached unprecedented
    levels. Pro-Palestinian rallies were organised on Saturday in many cities in
    the world.


    PEACE
    The president of Ukraine Volodymyr Zelenskyy, attending a meeting in Malta,
    called for a global model based on his 10-point plan for peace with Russia, Reuters
    reports. An official list of the participants in the meeting is not yet
    available, but attending were officials for European, South-American, Arab,
    African and Asian countries. The plan includes clauses concerning the
    restoration of Ukraine’s territorial integrity, the pull-out of Russian troops,
    protection of food and energy supplies, nuclear security and the release of all
    prisoners. The co-chairs of the meeting, Ukraine and Malta, issued a joint
    declaration that mentions the participants’ commitment to just and sustainable
    peace, based on the UN Charter. The parties will take steps to arrange for a
    possible peace summit at a later date.


    DST On Saturday night, Romania switched to winter time, setting
    clocks back one hour from 4 AM to 3 AM. Sunday is thus 25-hour long. Daylight
    saving time, first suggested by the scientist Benjamin Franklin in 1784, is
    currently used in 70 countries. The concept has come under debate in recent
    years, with the EU asking member states to end seasonal clock changes and
    choose either winter time or summer time, but a decision in this respect is yet
    to be made. (AMP)

  • October 27, 2023 UPDATE

    October 27, 2023 UPDATE

    DECISIONS – The European Union will continue to support Ukraine with substantial funds. It is one of the decisions taken on Friday, in Brussels, on the second day of the European Council. Ukraine remains a priority for the European Union, proof of that being the fact that most funds from the multiannual budget revision will go into helping Kyiv, in this case 50 billion euros. The European Council President, Charles Michel, said that another priority is the prevention of terrorism and of other extremist actions in the community area, against the background of the conflict between Israel and Hamas, but also in the context of the pressure to which the Union is subjected to, due to increasing migration. Another concern of the EU is the relationship between Kosovo and Serbia, which is increasingly tense. A third topic of the Council meeting was Europes economic situation, and its goal to be a leader not only in terms of green technologies, but also as regards technologies in general. Romania was represented at the European Council by President Klaus Iohannis, who reiterated the need to continue supporting Ukraine, as long as needed. He spoke in favor of a clear and united vision, at EU level, on the situation in the Middle East and emphasized the importance of avoiding the escalation of the conflict. Iohannis also emphasized the need to review the EU budget, so as to reflect the new challenges.



    ORDER – The Bucharest Government on Friday adopted an emergency order that extends by three months the cap on the price of basic food products and expanded the list of such products. The Government also green lighted a project to reduce spending by local and central public authorities. Finance Minister, Marcel Boloş, announced that the budget deficit is now 3.55% of the GDP and that the target remains at 4.4% at the end of the year. He explained that, in the past years, budget expenditure with goods and services in the last two months of the year increased three, four or five times compared to the previous months. That is why it was decided that this year, the respective expenses cannot exceed the average of the previous months.



    ATTACK IN THE US – Romania’s president, Klaus Iohannis, has conveyed a message of condolence to his American counterpart Joe Biden in the wake of the armed attack in Lewiston, Maine. Romania stands with the American citizens and the families of the victims, to whom we convey our compassion. We also wish speedy recovery to the wounded, the president’s message reads. At least 22 people were killed and dozens of others were wounded in an armed attack in Maine, where the suspect is still at large.



    FEAST DAY – Orthodox Christians in Romania on Friday marked the feast day of Saint Demetrius of Basarabov, also known as Saint Demetrius the New, the patron saint of Bucharest. A pilgrimage to his relics and the reliquary of Saint Demetrius of Thessaloniki brought over from Greece continues in the capital-city. Saint Demetrius the New lived south of the Danube in present-day Bulgaria. After his death, his relics were found by locals after the saint appeared in the dream of an ill young girl, indicating the place where his body lay. The relics were given to Romania as a gift during the Russian-Turkish War, in 1774.



    DST – Daylight Saving Time ends on October 29 in Romania, when 4AM will become 3AM, making Sunday the longest day of the year. In 2023, Romania switched to DST on March 26 to benefit from daylight. (EE)

  • October 25, 2023 UPDATE

    October 25, 2023 UPDATE

    GOVERNMENT The government of
    Romania is ready to pass an emergency order on new minimum wages in
    constructions, agriculture and the food industry, PM Marcel Ciolacu announced.
    He made the statement after a meeting with trade unions and employer
    associations. Both in terms of the new minimum salary in constructions (around
    EUR 920) and of the ones in agriculture and the food industry (roughly EUR
    690), not a penny of the net wages is being cut, Marcel Ciolacu explained. On the other hand, the government drafted an order on
    reducing public sector expenditure at the end of this year.


    EU The president of
    Romania, Klaus Iohannis, takes part on Thursday and Friday in the meeting of
    the European Council and the inclusive Euro Summit meeting in Brussels, the
    Romanian presidency announced. The agenda of the European Council meeting
    includes topics like the situation in Ukraine, updating the Multi-Annual
    Financial Framework, economic issues, migration management and the EU foreign
    relations, with a focus on the situation in the Middle East, Kosovo and Serbia,
    and the developments in the Sahel region. As far as Ukraine is concerned, the
    EU leaders will also discuss the Union’s multidimensional support. President Iohannis
    will emphasise that Romania will remain a firm supporter of Ukraine and will
    plead for further support from the European bloc to that country for as long as
    necessary. Mr. Iohannis will also support opening accession negotiations with Ukraine
    and the R. of Moldova by the end of this year. At the Euro Summit, the
    participants will discuss the economic situation in the EU.


    REVOLUTION The case
    file concerning the December 1989 anti-communist uprising will be tried on its
    substance, the Bucharest Court of Appeals ruled after the magistrates dismissed
    all the objections made by the defendants. The decision is not final and may be
    challenged. The defendants in the so-called Revolution case include the
    former president Ion Iliescu, former deputy PM Gelu Voican Voiculescu and the
    retired general Iosif Rus, indicted by military prosecutors for crimes against
    humanity committed between December 22 and 30, 1989, when over 1,000 people died and some 3,000
    were wounded. Romania was the only Eastern Bloc country where the communist
    regime ended in violence and the communist leaders Nicolae and Elena Ceauşescu
    were executed.


    ARMY DAY In all military units in
    Romania and theatres of operations where Romanian troops are deployed, ceremonies
    were held on Wednesday to mark the Romanian Army Day. In Bucharest, president
    Klaus Iohannis said this is a very complicated period, with global peace and
    security threatened by regional conflicts. Europe is facing the worst crisis
    since WWII because of Russia’s military aggression in Ukraine, while the
    October 7 terrorist attack on Israel might destabilise the Middle East in the
    long run, Iohannis added. In turn, PM Marcel Ciolacu said Romania’s NATO
    membership is a guarantee that the security of Romanian citizens will never
    come under threat. The defence minister Angel Tîlvăr pointed out that the
    Romanian Army has risen to NATO standards in many respects, and added that
    earmarking 2% of GDP since 2017 and 2.5% of GDP this year to the defence sector
    enabled the implementation of ambitious procurement programmes. Meanwhile, the
    Romanian troops’ participation in UN, EU and NATO missions over the past
    decades has strengthened Romania’s security profile, Angel Tîlvăr added.


    ISRAEL Israel has demanded the resignation of the UN Secretary General, Antonio
    Guterres, over accusations of justifying terrorism and the crimes committed by
    Hamas. Guterres said in a Security Council meeting that the attacks of Hamas on
    Israel did not happen without reason. He made it clear, however, that the
    suffering of the Palestinians in what he called 56 years of suffocating
    occupation cannot justify the horrific attacks by Hamas, just as these
    attacks cannot justify the collective punishment of the Palestinian people. On
    Wednesday, Israel accepted a request from the US to delay its invasion of Gaza
    for the time being, so that the US may bring missile defence in the region, US
    and Israeli officials announced, quoted by the Wall Street Journal. The United
    States says it will work with China to de-escalate the situation in the Middle
    East. The US secretary of state, Antony Blinken, said he would work with
    the Chinese foreign minister, who is travelling to Washington at the end of this
    week, to prevent the conflict from expanding. The president of France, Emmanuel
    Macron, Wednesday concluded his two-day tour to the Middle East, which included
    Egypt, Israel, the West Bank and Jordan. His message was unambiguous, calling
    for preventing a spill-over of the conflict, for freeing the hostages taken by
    the terrorist group Hamas and for aid for the Palestinians in Gaza. (AMP)

  • October 18, 2023

    October 18, 2023

    GOVERNMENT The first joint meeting of the Romanian and Ukrainian governments takes place in Kyiv today. The agenda includes the development of
    infrastructure in the border region, economic cooperation and regional security.
    The main topic is a mechanism allowing Ukraine to export grains to Romania. First
    of all, the grain quality must be similar to that of grains in Romania and the
    EU, and secondly, only the Romanian farmers who prove they no longer have grain
    stocks will be authorised to import from Ukraine. Another topic is the ethnic
    minorities in Ukraine, with Bucharest requesting that their rights be the same
    as the rights enjoyed by minorities in Romania. The Romanian government
    believes Ukraine should no longer recognise the Moldovan language, arguing that
    in fact it does not exist. Marcel Ciolacu is accompanied by the minister of
    defence, Angel Tâlvăr, the minister of public health, Alexandru Rafila, the
    economy minister, Radu Oprea, the agriculture minister, Florin Barbu and the
    secretary of state with the interior ministry, Raed Arafat. The Romanian PM
    will have talks with his Ukrainian counterpart Denys Shmyhal, and with the
    chairman of the Ukrainian parliament, Ruslan Stefanchuk. Marcel Ciolacu is also
    scheduled to meet the Ukrainian president Volodymyr Zelenskyy, who was in
    Bucharest last week.


    BUDGET The Constitutional Court dismissed the
    notification filed by Save Romania Union and the Force of the Right in
    opposition in Romania with respect to the bill on fiscal and
    budget-related measures for which the Government has undertaken responsibility
    before Parliament. The Constitutional Court president, Marian Enache, said the
    Cabinet’s responsibility concerned a sole and unified purpose, namely to
    increase revenues to the public budget and to cut down on expenditure, and that
    the responsibility procedure was in line with the requirements of the
    Constitutional Court and its case law. Marian Enache also says the Court’s
    decision was made on a majority of votes. After the decision of the
    Constitutional Court, the bill may be signed into law by the president of
    Romania, Klaus Iohannis.


    GAZA
    The Romanian foreign ministry voices shock and deep sadness at the news of the
    blast and loss of innocent lives on Tuesday night at
    the Al Ahli hospital in Gaza. In a message issued on Wednesday, the
    ministry emphasises that all civilians and civilian infrastructure must be
    protected at all times, and that responsibility must be
    clearly identified. Hundreds of people were killed or wounded
    in a missile strike on the hospital in Gaza, for which Israel and the
    Palestinians blame each other. The Israeli army denies that its forces were
    responsible for the attack, and blames the incident on a failed launch of a
    missile from Gaza by the Islamic Jihad, another Palestinian armed group, which
    in turn denies the allegations. The attack was condemned by the international
    community, with several Arab leaders accusing Israel of war crimes. The US leader Joe Biden, who is on a solidarity
    visit to Israel today, has voiced regret and anger at the event. Jordan has
    cancelled a summit in which Joe Biden was to discuss the war with King Abdullah II, with
    Mahmoud Abbas and the president of Egypt Abdel Fattah al-Sisi. On the other hand, the UN secretary general
    Antonio Guterres will be in Cairo on Thursday, for talks with Abdel Fattah al-focusing
    on the delivery of humanitarian aid to Gaza. The talks take place as Egypt calls on Israel to allow aid
    shipments to that territory. On Tuesday,
    the US authorised its non-essential embassy staff to leave Beirut, as security
    worsens in Lebanon as well, in the context of the war between Israel and Hamas.


    ALERT Belgium,
    France, Italy and Spain have raised their terrorist alert levels to a maximum, following
    attacks in western Europe over the past few days. On Monday 2 Swedish nationals
    were killed in Brussels by a Tunisian illegal migrant, later on identified and
    shot by the Belgian police. The Islamic State group
    claimed the attack and said it targeted Sweden because of its affiliation to
    the global coalition against Jihad movements. On Tuesday, Versailles palace
    in Paris was evacuated and stayed closed for the day after a new bomb alert,
    just as it happened with the Louvre Museum on Saturday. The president of France
    Emmanuel Macron said Islamic terrorism is rising once again and that all
    European countries are vulnerable to this threat. Over 100 people have been
    arrested over the past week in France under anti-Semitism charges and for
    terrorism support. On Tuesday, EU leaders, including the president of Romania
    Klaus Iohannis, discussed the conflict between Israel and Hamas which killed more
    than 4,000 people in the last 10 days, and agreed to do whatever they can to
    avoid a regional escalation of the conflict. (AMP)

  • The IMF economic forecast for Romania

    The IMF economic forecast for Romania


    The International Monetary Fund has published its latest economic forecast, according to which the world economy continues to recover from the pandemic, the Russian invasion of Ukraine and the energy crisis of 2022 but the medium-term prospects are mediocre. So, the IMF has forecast a 3% global growth next year, with the US outgrowing Europe. Data shows that Germany is the single G7 economy to see contraction this year. The IMF estimates a 2.2% growth rate for Romania this year from an initial forecast of 2.4% and a 3.8% growth rate next year.



    According to the same forecast, the average annual inflation rate in Romania is to be around 10.7% in 2023 and 5.8% in 2024. The IMF expects an unemployment rate of 5.6% similar to last year and of 5.4% for the next year.



    Also worth noting is that an IMF mission that has recently visited Romania has announced the deficit will reach 6% this year and go down to 5% next year. According to the IMF experts, the objective of the government in Bucharest in the following years must be a budget deficit of roughly 3% of the GDP. The head of the IMF mission for Romania, Jan Kees Martijn, believes the fiscal measures package the government wants to implement is not enough and that it will be difficult to implement in an election year like the next one. He said the aforementioned package is meant to curb the budget deficit but other programmes are needed to increase the effectiveness and incomes. The priorities of the Romanian government must be, the IMF experts say, an improved tax collection and the elimination of the fiscal exemptions. Jan Kees Martijn also believes that the taxes levied on banks have added an additional burden on enterprises, which could bear on their financial performances. “Fiscal policy also needs to be well planned and clearly communicated to provide predictability for households and firms. Increased predictability of spending on public sector wages and pensions is also important, and the planned reforms in these areas in the context of thee NRRP are vital. These steps would help improve medium-term budgeting” – the IMF expert went on to say.



    He also believes that investment in Romanias education and healthcare systems need to continue in order to achieve the EU standards. Privileges in the public system must be eliminated and the green transition supported. We recall that last month the European Bank for Reconstruction and Development revised its forecasts regarding Romanias economic growth. According to the EBRD forecasts Romanias GDP would register a 1.8% growth rate this year and a 3.2% next year.


    (bill)


  • September 14, 2023

    September 14, 2023

    GOVERNMENT
    – The Bucharest government has several normative acts on its agenda today,
    among which emergency support for farmers affected by the increase in grain
    imports from Ukraine and supporting the production of vegetables grown in
    protected areas. The government also wants to green light procedures for the
    implementation of the National Program for the development and support of the
    food industry in the period 2023-2026 and to increase the domestic production
    of farm and food products and the volume of processed products with high added
    value intended for export. The executive also plans to grant emergency
    humanitarian aid to Syria.




    DRONES
    – The Russian Federation’s attacks on the Ukrainian Danube ports of Reni,
    Izmail and Chilia are unacceptable, State Secretary with the Romanian Defense
    Ministry, Simona Cojocaru, said. In recent weeks, we have witnessed an
    unprecedented escalation of this war of aggression, very close to Romania’s
    border the minister said, after new drone fragments, most likely Russian,
    were discovered in the Danube Delta, bordering Ukraine.




    STUDY
    – Seven out of ten Romanians are interested in having a sustainable lifestyle,
    but the price continues to be a major obstacle, so that only 38% find ‘green’
    products affordable, while 53% say these products are harder to find, according
    to the latest study on the benefits of sustainability. The data processed by
    Reveal Marketing Research highlights the fact that, for Romanian consumers,
    sustainability is mainly about using resources responsibly, especially by
    reducing waste and recycling, caring for the environment and endangered
    species, but also about taking measures to reduce pollution and carbon
    emissions.




    FESTIVAL -
    The State Philharmonics in Sibiu is today taking the stage of the George Enescu
    Festival under the baton of the American conductor Roderick Cox. Attending the
    event for the first time, and conducting a Romanian orchestra also for the
    first time, Roderick Cox will give two concerts during the festival: on
    September 14 in Sibiu and on September 16 in Bucharest. Together with the
    orchestra in Sibiu and violinist Ioana Cristina Goicea, Roderick Cox will offer
    the public in Sibiu and Bucharest a program centered on the Concerto for violin
    and orchestra in D major op. 25 by Erich Wolfgang Korngold, but also highlights
    of the Fourth Symphony in F minor op. 36 by P.I. Tchaikovsky, as well as a
    masterpiece of contemporary Romanian symphonic works: Gyorgy Ligeti’s
    Lontano. Radio Romania is co-producer of the George
    Enescu International Festival.






    EU – The war in Ukraine, the tensions with
    Russia and the energy crisis were mentioned by the president of the European
    Commission, Ursula von der Leyen, in her state of the union address that she
    held, on Wednesday, in the European Parliament in Strasbourg. Mrs. von der
    Leyen also spoke about the accession of Romania and Bulgaria to the Schengen
    area. She clearly said that the two countries deserve to be welcomed in the
    free movement area but she did not offer a clear solution to overcome Austria’s
    opposition. Romanian MEPs, regardless of political color, believe that
    Bucharest must put pressure on the European authorities to make Schengen possible by the end of the year. (EE)








  • The Government and measures to reduce public spending

    The Government and measures to reduce public spending

    The Bucharest Government plans to take responsibility in Parliament for the package of laws aimed at reforming the state institutions, fiscal balancing measures and measures to combat tax evasion. The waste of public money, not paying taxes and fiscal evasion hinder the country’s development, says Prime Minister Marcel Ciolacu: I will put my mandate on the table in Parliament for reforms and social justice. We have to separate the waters so that Romanians can see who really wants to make reforms and take this country forward and who is against that and fights for privileges and big fortunes. I believe that this is the way Im letting you know I will move forward with all firmness.



    Subject to excessive deficit procedure since 2019 and, after the data showed that the budgetary situation after the first months of this year is worse than the Government had anticipated, Romania is in the position of taking urgent adjustment measures, including to avoid losing the European funds. The Governments taking responsibility in Parliament for the fiscal measures means these measures will be adopted without any debate, so much faster.



    The Government has prepared more than 50 measures to reduce spending in the public system, and, according to the PM, this is the first real reform in this respect. Among the measures are cutting 200,000 vacant jobs in the public system, the reduction of the number of dignitaries and management positions, the merger between institutions, the decentralization of some services, as well as the prioritization of national investment programs, but also the capping of bonuses or cancellation of holiday vouchers for employees of the public system with incomes above a certain level. All these are measures meant to reduce public spending.



    The Government order will also drastically reduce the employees’ salaries, trade unions have argued, saying that the normative act is, in fact, a package of austerity measures. According to the Cartel Alfa trade unionists the solution is not to cut off the employees’ means of subsisting, taxing meal vouchers or food allowances, but rather to significantly reduce the overburdened central government apparatus or even cut public subsidies for political parties.



    PM Ciolacu and a number of ministers will go to Brussels next week to discuss with the chief of the European Commission, Ursula von der Leyen, the modification of the budget deficit target of 4.4% of the GDP assumed for 2023. Talks will also cover the package of fiscal measures. In Bucharest, USR (democratic opposition) have already announced that they will table censure motion against the PSD-PNL Government and that, in order for it to pass, they will collaborate with all the political forces in Parliament, except for AUR (a populist, ultranationalist party). The Alliance for the Union of Romanians will also table a censure motion to block the normative acts that, in the opinion of this party, are likely to push Romanian companies into bankruptcy. (EE)