Radio România Internațional

Tag: growth

  • Economic forecast for Romania

    Economic forecast for Romania

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


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


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


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


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


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


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


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


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

  • Economic forecast for Romania

    Economic forecast for Romania

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


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


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


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


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


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


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


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


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

  • Economic forecast for Romania

    Economic forecast for Romania

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


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


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


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


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


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


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


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


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

  • August 17, 2021

    August 17, 2021

    PULLOUT In his first public address after the Taliban’s conquest of
    capital Kabul, US president Joe Biden says he stands ‘squarely behind’ his
    decision to pull out troops from Afghanistan. Biden has blamed the Taliban takeover
    on the Afghan political leaders who fled as well as on the security forces who
    refused to fight. Biden’s decision to pull out the US troops from Afghanistan
    has attracted criticism from both Republicans and Democrats and his address
    comes after a dramatic day at Kabul’s international airport where hundreds of
    civilians desperate to leave the country forced their way inside. According to
    Reuters, flights were cancelled on Monday, when at least five people were
    killed, although it was unclear whether they had been shot or crushed in a
    stampede. The Taliban captured Afghanistan’s biggest cities in days rather than
    months as the US experts had predicted.








    REPATRIATION Romania is going to fly a
    plane to Afghanistan as soon as possible to repatriate the 27 Romanian citizens
    who are still in that country, the country’s Prime Minister Florin Citu has
    announced. 16 Romanian citizens managed to leave the country last night. According
    to Citu those to be repatriated aren’t part of the embassy personnel but people
    working in the private sector and for the UN. The Romanian official has called
    on all the Romanian citizens to leave that country while the Foreign Ministry
    in Bucharest firmly recommends that they refer to Romania’s embassy in
    Islamabad and provide data about their location so that they may be contacted in
    emergency situations.








    GDP According to a report made public today by the
    National Institute for Statistics (INS), Romania’s Gross Domestic Product rose
    by 6.5% in the first half of the year as compared to the same period of 2020.
    In the second quarter of 2021, the country’s GDP grew by 1.8% compared to the
    same period last year against a 13% economic growth. According to the European
    Commission, Romania’s economy is to see a 7.4% growth in 2021 and 4.9% next
    year, exceeding the forecasts made in spring. Under the budget readjustment
    project published by the Finance Ministry late last week, Romania’s GDP should
    stay around 239 billion Euros, out of a real growth of 7% this year.






    FOOTBALL Romania’s football champions,
    CFR Cluj are today up against Serbian side Red Star Football Club in an away
    match counting towards the first round of the Europa League’s play off. The
    Romanians failed to qualify for the Champions League’s play-offs after being
    defeated by Swiss side Young Boys Bern. If they are eliminated from Europa
    League, CFR will be playing in the groups of Europa Conference League.








    COVID-19 The Covid-19 infections are on the rise in Romania where authorities
    reported over 24 hundred new cases between August 9th and 16th.
    280 fresh cases were announced on Monday out of 18,700 tests conducted as well
    as five new fatalities. The number of
    those admitted to hospitals has also risen to over 940 with 120 of them in
    intensive care. On the other hand, people’s interest in getting the vaccine
    remains low in this country in spite of the authorities’ repeated appeals. Only
    12 thousand people reportedly got the jab on Monday. Almost 5 million Romanians
    have been fully vaccinated since the country’s vaccine rollout kicked off in
    December last year.






    (bill)







  • July 28, 2021 UPDATE

    July 28, 2021 UPDATE

    HEAT WAVE Meteorologists have issued a code orange alert against extreme heat and thermal discomfort in seven counties in the south and the capital Bucharest, in place until Saturday. Maximum temperatures are expected to reach 40 degrees Centigrade locally. A code yellow alert against extreme heat is in place until Saturday for all other regions, with highs ranging from 34 to 39 degrees. Passenger and freight trains will travel at reduced speeds during this period. Road traffic authorities have also warned some
    restrictions will be introduced due to the extreme heat, on Thursday, Friday
    and Saturday, between noon and 8 pm in most of the country.




    COVID-19 The number of COVID-19 infections in Romania remains low, although it has gone up in recent days. The authorities announced 159 new cases on Wednesday, one new COVID-related casualty and 47 patients in intensive care. According to the head of the vaccination campaign, medical doctor Valeriu Gheorghiţă, nearly 90% of the people currently diagnosed with COVID-19 are not vaccinated, while over 91% of related fatalities were people who hadn’t taken the anti-COVID jab. At present, some 30% of Romania’s total population is immunised. Starting August 2, young people aged 12-17 can also receive the Moderna vaccine, Valeriu Gheorghiţă said. The Romanian official went on to say that, by mid-September, Romania might start administering the third dose of the vaccine for at-risk categories, such as health workers, chronically ill and people over 65 years of age. So far, 4.8 million people have been fully vaccinated in Romania.




    GOVERNMENT The Government Wednesday approved plans to further ease COVID-related restrictions starting August 1. PM Florin Cîţu mentioned, among others, that outdoors cultural and entertainment events may be attended by a maximum of 75,000 people, in places where the COVID-19 infection rate is under 2 per thousand, on condition that participants are vaccinated, recovered from the disease or have tested negative for it. For indoor and outdoor sports events, crowd attendance is limited to 75% of the venue’s full capacity, provided a physical distance of at least 1 m between viewers is ensured. In areas with an infection rate below 2 per thousand, bars, nightclubs, restaurants and gambling venues will also be open between 5 am and 2 am.




    IMF The International Monetary Fund on Tuesday maintained its 6% economic growth estimate for the world economy this year and upgraded its outlook on the United States and other developed economies, while downgrading its forecast for a number of developing countries affected by the fallout of COVID-19. In the case of Romania, in October last year the IMF estimated a growth rate of 4.6% this year. The new outlook expects Romanias economic growth rate to reach 6% this year. Additionally, the IMF has upgraded its forecast for 2022, from 3.9% as originally estimated, to 4.8%. According to the new report, Romania’s economic growth rates for 2021 and 2022 will stand above the European average.




    INFRINGEMENT The European Commission decided to start infringement procedures against 12 Member States, including Romania, for failure to transpose EU rules banning unfair trade practices in the agricultural and food supply chain. The deadline for transposing the regulations into national law was May 1, 2021. The Commission sent letters of formal notice to Austria, Belgium, Cyprus, the Czech Republic, Estonia, France, Italy, Poland, Portugal, Romania, Slovenia and Spain, requesting them to adopt and notify relevant measures. The Member States have now two months to reply.




    BEAR CENSUS A bear census worth 11 million euro was launched on Wednesday in Romania. The Minister for Investments and European Projects Cristian Ghinea explained the project is funded under the Large Infrastructure Operational Programme. There will be two lines of investment, one focusing on the bear census itself, while the other will help implement state-of-the-art technologies aimed at limiting the interaction of bears with humans. Last week the Government had passed an order regulating human intervention in situations involving bears, under which bears can be driven away in low-risk cases, and tranquilized and relocated or even shot if they attack people or livestock.




    OLYMPICS Romania won two medals in Wednesday’s rowing finals at the Tokyo Olympics: Ancuţa Bodnar and Simona Radiş won gold in the women’s double scull event, while Romania’s four crew, made up of Mihăiţă Ţigănescu, Mugurel Semciuc, Ştefan Berariu and Cosmin Pascari scooped the silver. Adding to the two medals is Ana-Maria Popescu’s silver medal in the women’s epee event. Romanian fighter Maria Claudia Nechita Wednesday failed to qualify into the 57 kg boxing semi-finals, after losing to Japans Sena Irie, 3-2. A victory would have secured her an Olympic medal. Also on Wednesday, Romanias under-23 football team drew with New Zealand, in its last Group B match, and failed to move forward into the quarter-finals. The Romanians came out 3rd in the group, after South Korea and New Zealand and ahead of Honduras.



    FESTIVAL The 2021 edition of the largest cinema event in Romania, the Transylvania International Film Festival (TIFF) continues in Cluj-Napoca (north-west), until Sunday. Over 170 films are screened in this years festival. Concerts and meetings with film industry representatives are also organised as part of the event. TIFF aims to promote cinema by presenting some of the most important contemporary works which reflect the originality of their authors, less common forms of cinematic expression and new cultural trends. This years special guest in the festival is international star Sergei Polunin, regarded as the most talented ballet dancer of his generation. (tr. A.M. Popescu)

  • Optimistic economic forecast

    Optimistic economic forecast

    Romania will have the highest economic growth rate in the EU this year, according to the summer forecast of the European Commission, which predicted the Romanian economy will grow by 7.4% this year and by 4.9% next year.



    The new forecast for 2021 is 2.3% higher than the spring estimates, because, according to the European institution, the Romanian economy performed strongly in the first quarter. The confidence of consumers and business people has also remained high so far. Private consumption is expected to stay sound, backed by the lifting of COVID restrictions, particularly in the fields hit severely by the pandemic, and by the increase in salaries in the first months of the year, the Commission said.



    Moreover, investments will remain strong in 2021-2022, supported by both the private and public sectors. Exports are set to improve in line with the ongoing recovery in Romanias main trading partners but the contribution of net exports to growth is expected to remain negative over the forecast horizon, the Commission believes. Growth is projected to continue into 2022, although at a slower pace.



    PM Florin Cîţu says these forecasts are the consequence of the private sector responding well to the measures implemented so far, and having confidence that all the reforms announced by the government will be implemented.



    Meanwhile, professor Mircea Coşea, Ph.D., explains what these figures actually mean for Romania, in his opinion:


    Mircea Coşea: “This 7% growth is actually not growth but recovery. In macroeconomic terms, there is a major difference between recovery and economic growth. What we are actually doing is recovering, that is, getting back to where we were. This is not necessarily to mean we will live better. Moreover, if we look at whats behind these figures, we will see things are rather disquieting. A recovery at this record-rate for the EU is not healthy. Compared to other countries around us, this extremely high figure means that in fact Romania does not rely on a proper economic foundation, but on loans.



    At EU level, the economy is expected to grow by 4.8% this year and 4.5% in 2022, after economic activity above expectations in the first quarter and after the easing of COVID containment measures in the second quarter. (tr. A.M. Popescu)

  • Encouraging economic figures

    Encouraging economic figures

    The National Statistics Institute (INS) announced on Tuesday that Romanias GDP went up 2.8% in the first quarter of this year compared to the last quarter of 2020. The same figure was made public by the EU statistics office, Eurostat, which noted that Romanias economy in the first quarter of the year was the most dynamic in the EU.



    Also, according to the National Statistics Institute, the quarter-on-quarter economic growth rate was negative 0.2% in nominal terms, whereas the seasonally adjusted rate was zero.




    At the end of April, the National Strategy and Forecast Committee had operated an upward adjustment to its economic growth estimate for this year, and similarly improved figures came from the European Commission and the International Monetary Fund.




    After Tuesdays announcement by the INS and Eurostat, the Liberal PM Florin Cîțu spoke about the quickest economic recovery in history after the most severe crisis of the last century. He also said his right-of-centre coalition cabinet is working on new measures to ensure the post-pandemic economy is stronger and more competitive. And, PM Cîțu added, for the forthcoming years an economic growth rate is foreseeable that will “beat all previous estimates.




    The economic analyst Aurelian Dochia confirms that figures are better than expected:




    Aurelian Dochia: “We are already close to the maximum the Romanian economy saw in the first quarter of 2020. In other words, we have recovered all we lost last year, and the prospects for 2021 will likely be some of the best weve ever had.




    Marcel Ciolacu, the head of the Social Democratic Party in opposition, argues that what is truly historic is the collapse of peoples spending power. The Social Democrat mentioned 17% higher electricity bills, 9% more expensive fuel, skyrocketing food prices and an inflation rate above 3%, which, he says, has “ripped through the peoples incomes already frozen by PM Cîțu.



    His party colleague Mihai Fifor, a former defence minister, also states in a news release that behind the economic growth rate reported for the first quarter of the year as against the last quarter of 2020, publicised as a victory for the Liberals in power, is the truly relevant indicator, namely the comparison between Q1 2021 and Q1 2020. What PM Florin Cîţu sees as an accomplishment is in fact, according to Mihai Fifor, “the worst economic result for a first quarter in the past 5 years, worse even than last year when Romania went into lockdown. (tr. A.M. Popescu)

  • March 31, 2021 UPDATE

    March 31, 2021 UPDATE

    WB Romania’s economy is expected to grow by 4.3% this year after last year’s 3.9% contraction, says the latest World Bank report published on Wednesday. According to the same report, the economic growth would be supported by the improved economic activity in the second half of 2021. This economic growth will also depend on the success of the vaccination rollout, the political response to the medical crisis as well as by the EU performances. World Bank also expects a 4.1% economic growth for the next year with an inflation rate around 3% in 2021 and of 3.2% in 2022. Inflation is expected to go down to 2.9% in 2023.



    COVID-19 As many as 6,156 new COVID-19 infections were reported on Wednesday in Romania out of 41,000 tests. 14 counties are in the red zone, meaning they have infection rates above 3 per thousand. Ilfov County near Bucharest has the highest infection rate, over 9 per thousand, and the capital city is over 7 per thousand. The autorities also announced 129 deaths and 1,412 patients in intensive care, a new record since the start of the pandemic. Authorities have again pointed out that only through vaccination and observance of the prevention rules will Romania be able to get rid of the pandemic. According to physician Andreea Moldovan, state secretary with the Health Ministry, the third wave is different than the others, with a higher number of cases and increased gravity. In her opinion, if containment measures are relaxed or ignored by people, they would stay in force for longer. Meanwhile, the vaccine rollout is in full swing in Romania with over 2 million vaccinated; half of them with the booster dose.



    PROTESTS For the third night in a row, Bucharest and several big cities across Romania on Tuesday saw large-scale protests against the anti-Covid measures imposed by the authorities. Chanting anti-government slogans, the protesters called on the authorities to cancel the mandatory wear of face masks and reopen gyms and fitness facilities. Romanias president Klaus Iohannis on Tuesday said that he understands the discontent of the Romanians after a year of restrictions, adding these measures are the only means that can help Romania to contain the pandemic. The Romanian president also said that protests are normal in a functioning democracy but violence, extremism and xenophobia are intolerable and completely unacceptable. The president’s statement came after clashes in some of Romania’s cities. Opposition leader Marcel Ciolacu said that people took to the streets out of poverty and despair caused by the ongoing medical crisis.



    TALKS The Romanian foreign minister Bogdan Aurescu and the US secretary of state Antony Blinken Tuesday had talks over telephone about Romania’s contribution to NATO, energy security and the rule of law. Washington praised Romania for being a staunch NATO ally and for its commitment to strengthening security at the Black Sea, while Bucharest gave assurances these approaches would continue. The two officials also tackled the developing bilateral cooperation in the field of nuclear energy and the efforts to diversify gas supplies in Europe. Minister Aurescu mentioned the priority of Romania’s government related to the country’s OECD accession and voiced his belief that the US would support Romania’s intention. He also highlighted the interest in the rapid progress of the Visa Waiver programme and an increased US military presence in Romania.



    ANTI-SEMITISM The Chamber of Deputies Wednesday adopted a joint statement condemning anti-Semitic messages in Romania and attempts at rehabilitating war criminals. The response comes after actress Maia Morgenstern, head of the State Jewish Theatre in Bucharest, received death threats. Anti-Semitism is a threat to democracy, and acknowledging the past is a key element of responsibility, both in the present and in the future, reads the statement signed by the Deputies at the initiative of the representative of Jewish communities in Parliament, Silviu Vexler.


    AIR POLICE The Spanish Air Forces unit deployed to Romania in early February, at the Mihail Kogălniceanu air base, has completed its mission. The 130-strong team of pilots and technicians with 6 Eurofighter Typhoon conducted air police missions under NATO command jointly with Romanian Air Forces troops using F-16 and MiG-21 LanceR. The Spanish unit will be replaced by a British Royal Air Force unit currently being deployed to Romania. (tr. A.M. Popescu)

  • March 7-14, 2021

    March 7-14, 2021


    The evolution of coronavirus in Romania


    The government in Bucharest decided to extend the state of alert by 30 more days, coming into effect on March 14, as the number of COVID-19 infections rises. According to PM Florin Citu, all restrictions already in place are here to stay. In addition, night circulation is forbidden between 22:00 and 5:00, one hour earlier than before. Another decision limits occupation in tourist accommodation to up to 70% of capacity. This measure is mostly aimed at accommodation in areas with skiing or winter sports facilities. At the same time, in order to speed up the vaccination campaign and contain the pandemic, on Thursday the third stage opened for people in localities with a rate of infection of over 4.5 to a thousand inhabitants. This stage will be applied nationally starting Monday, in which anyone who wishes to vaccinate can do so as well. Romania has immunized over 1.3 million people since the start of the vaccination campaign, on December 27, and over half have had the follow-up. On Thursday, the authorities in Bucharest have decided to temporarily suspend the use of the Astra-Zeneca vaccine up until the end of the evaluation run by the European Medicines Agency. The decision comes after several European countries registered severe reactions, even deaths, after the administration of these vaccines, part of a certain allotment.



    Conclusions in the fire at the Matei Bals hospital


    The Romanian government will file a case with the National Anti-Corruption Directorate following the conclusion of the Control Body in relation to the fire at the Matei Bals Institute in Bucharest. Inspectors who investigated the area after the 29 January reached the conclusion that the fire was caused by the poor and antiquated infrastructure, the undersized wiring, and the poor supervision of the patients. We recall that over 20 people have died in the fire in one pavilion of the hospital, causing over 100 COVID patients to be relocated.



    The 2021 budget passes


    President Klaus Iohannis endorsed this week the state budget and social insurance law for 2021. According to the Presidency, investment, reforms, and economic growth are the pillars of the 2021 budget, observing all the principles of fiscal responsibility and sustainability of public finance. The budget deficit target of 7.16% of the GDP indicates a considerable effort towards budget consolidation, without unduly burdening citizens with new taxes, the release also indicates. Considerable amounts of money are earmarked for the transportation infrastructure, schools and hospitals, but also for managing the vaccination campaign, as well as the risks associated with the economic crisis caused by the COVID-19 pandemic. Major investments are aimed at supporting businesses, new opportunities for development, and creating better paying jobs, the document states. Last week, Parliament passed the budget bill in the form issued by the government, without accepting amendments. This year, the budget is based on an economic growth of 4.31%.



    Romania reports record economic growth for 2020 4th quarter


    Romania had the highest GDP growth of any EU country in the fourth quarter of the past year compared to the previous quarter. According to data published on Tuesday by Eurostat, the Romanian economy grew by 4.8% during that period. Previously, the Romanian National Institute of Statistics reviewed downwards its expectation for growth from 5.3% to 4.8% for the GDP in the last quarter of last year. It did not, however, adjust its estimate for 2020, according to which the Romanian economy shrank by 3.9% in real terms. The shrinkage in the GDP was caused by industry, trade, agriculture, and entertainment related activities.



    The authorities in Bucharest want to eliminate cumulative pensions


    Romania has launched a public debate on a bill to ban cumulative pensions with state wages. Minister of Labor Raluca Turcan announced that around 35,000 tax payers are receiving both a pension and a salary. There will be exceptions to this, however, such as teachers, members of the Romanian Academy, and elected officials. The bill also provides for the possibility of continuing work up until 70 years of age, applying to both state and private employees. Another bill was submitted for public debate, along with an emergency executive order, allowing for parents who return to work earlier than their parental leave allows to receive a higher bonus for returning.



    The Green Friday campaign is launched


    The Romanian Ministry of the Environment launched on March 12 the Green Friday initiative, encouraging the use of alternative transportation for going to and from work in order to reduce pollution, especially in the big cities. The campaign provides that every Friday people should not use their personal vehicles and go to and from work using public transport, bicycles, or just on foot. Minister of the Environment Tánczos Barna announced he would launch an invitation to everyone to take part, while town halls were extended a proposal to offer free public transportation on Fridays. (tr. C. Cotoiu)

  • The State of Alert has been prolonged in Romania for another month

    The State of Alert has been prolonged in Romania for another month

    Romanians will have to wait to get back to the life
    without restrictions, the lifestyle they enjoyed before the pandemic outbreak.
    The announcement was made on Wednesday by the country’s president Klaus
    Iohannis.




    Klaus Iohannis: ʺUnder the
    present circumstances when the number of infections isn’t going down but on the
    contrary is on the rise, it is only normal that the state of alert be extended for
    another 30 days. However, only the restrictions now in force will be kept. No further restrictions are to be added but as
    I said, under the present circumstances we cannot speak about relaxation
    either.




    Prior to the president’s announcement, the government
    passed a resolution in this respect. Let’s have a look at some of the restrictions
    still in place: wearing masks in indoor public spaces, like supermarkets,
    public transportation and workplaces is still mandatory. And so is hand hygiene
    and physical distancing.


    Outdoor events like rallies and demonstrations are
    banned, while groups larger than 6 cannot travel around the cities unless they
    are a family.




    Private indoor events cannot exceed 20 people while
    outdoor events with more than 50 participants are not permitted. Restaurants
    remain closed but outdoor beer gardens are open.


    Malls and supermarkets are open, whereas cinemas and playgrounds
    remain closed. Indoor religious services are permitted but participants are to
    wear masks and observe physical distancing. Last but not least, some flights
    are still cancelled and some border checkpoints remain closed. Against this
    restrictive background, Romania’s president Klaus Iohannis has given assurances
    that measures aimed at the country’s economic recovery and growth are likely to
    continue.


    Klaus Iohannis: ʺThe
    government is working on and going to present fresh laws and regulations aimed
    at supporting the country’s economic recovery programme, which has been
    presented. Economic recovery is extremely important after this difficult period
    we have been through.


    Economic recovery is also expected to be high on the
    agenda of the European Council session on Friday and Saturday and according to president
    Iohannis, it is very important for Romania to obtain a significant amount of
    money to jump-start its economy.



    (translated by bill)

  • June 9, 2020 UPDATE

    June 9, 2020 UPDATE

    MEASURES President Klaus Iohannis announced on Tuesday that extending the state of alert beyond June 15 is necessary, given the absence of a significant drop in the number of new COVID-19 cases. The head of state also announced further easing of containment measures starting mid-June, including a possible reopening of shopping malls, kindergartens, private schools, gyms and outdoor pools. However, hygiene and physical distancing measures will have to be strictly complied with. The extension of the state of alert must be approved by Parliament, which is why the president called on MPs to be responsible, and said this is the only way the authorities can contain the spread of the novel coronavirus.



    COVID-19 In Romania, 9 more people infected with the novel coronavirus died, taking the death toll to 1,354, the Strategic Communication Group announced on Tuesday. According to the latest data, the total number of COVID-19 cases in Romania is over 20,700. Of these, more than 14,900 have recovered, while 152 patients are in intensive care units. Around 3,300 Romanian nationals living abroad have so far tested positive for the virus, mostly in Italy, Germany and Spain, and 114 of them died. The head of the Emergency Department, Raed Arafat, emphasised that full relaxation is, for the time being, out of the question.



    PARLIAMENT The simple motion tabled
    by the Social Democratic Party in opposition against labour minister Violeta
    Alexandru was discussed and passed by the Senate on Tuesday. The Social
    Democrats requested the Labour Minister to step down over the emergency order
    on furlough and other measures concerning vulnerable categories, which was
    poorly written and required several successive changes. The minister was also
    criticised for how she handled the situation of the Romanian nationals who left
    the country to work abroad. Violeta Alexandru dismissed the accusations. The
    Chamber of Deputies decided on Tuesday to discuss and vote on the motion
    against the development minister Ion Stefan at a later date. The finance
    minister Florin Cîţu is also invited on Wednesday to present explanations to
    the Senate’s economic and budget-finances committees concerning Standard&Poor’s decision with
    respect to including Romania in their investment-grade category.



    ECONOMY The year-on-year economic growth rate in the first quarter of this year, 2.4%, is primarily owing to consumption, which went up 3.8%. According to preliminary data made public on Tuesday by the National Statistics Institute, the GDP was 0.3% higher in the first quarter, in real terms, than in the 4th quarter of 2019. Romanias trade balance deficit also deepened by roughly 201 million euros in Q1 compared to the previous quarter.



    EU PM Ludovic Orban took part on Tuesday in a conference call organized by the Croatian presidency of the Council of the EU, with the ambassadors of EU countries in Bucharest. The PM emphasised that the Government now focuses on economic recovery, and mentioned measures to support the companies and the employees affected by the pandemic. Ludovic Orban also said the Cabinet is considering measures to ensure cashflows, to support investments in vital sectors and to improve the efficiency of EU fund absorption. In turn, the ambassador of Croatia to Romania and the Republic of Moldova, Marija Kapitanovic, commended the Government of Romania for its handling of the health crisis and the repatriation of Romanian citizens from the countries affected by the pandemic.




    FESTIVAL This year, the Sibiu International Theatre Festival (FITS) will hold a special, online edition, scheduled between June 12th and 21st, the organisers have announced. FITS #online Empowered will be fully accessible online, on the Festivals homepage and Facebook and YouTube channels. According to the organisers, for 10 days the public will be able to watch some of the best ever theatre, dance, music, and opera performances online. Between June the 15th and 17th, over 100 performing artists and companies will take part online in the Sibiu Performance Exchange, the only event in Romania that brings together performing arts professionals, cultural managers and agents.



    REPATRIATION Romanias Foreign Ministry announced on Tuesday that 166 Romanian nationals were repatriated from the UK, including students, airline personnel as well as people who could no longer extend their stay for various reasons. A special flight by the Romanian airline Tarom was used for this operation, and 3 British citizens were taken to the UK on the same occasion.



    PARTNERSHIP A Romanian defence ministry team will return to the country on Wednesday after a mission to support the Alabama state authorities in the context of the COVID-19 pandemic. According to a Defence Ministry news release, the 15 military and civilians in the team work in emergency military hospitals in the country and in the field of chemical, biological, radiological and nuclear defence. The cooperation between Romania and the state of Alabama is part of a State Partnership Program initiated in 1993 and coordinated by the US European Command. So far more than 200 bilateral operations have been conducted, with an emphasis on interoperability between military structures, at NATO standards, support for civilian authorities, aid provision and support in the deployment of Romanian units to theatres of operations.


    (translated by: Ana-Maria Popescu)

  • May 17, 2020 UPDATE

    May 17, 2020 UPDATE

    LAW A law regulating the state of alert takes effect in Romania on Monday, after being endorsed on Wednesday by the Chamber of Deputies and promulgated by President Klaus Iohannis. Under the new law, the state of alert cannot be longer than 30 days and may only be extended for justified reasons, at the proposal of the Interior Ministry. The state of alert replaces the state of emergency introduced 2 months ago over the coronavirus pandemic. For 30 days, wearing protective face masks in shops, public transportation, at work and in other public enclosed areas will be compulsory. People may leave their homes, but they need a sworn statement and justified reasons to leave their home locality.




    COVID-19 In Romania 1,104 SARS CoV-2-related deaths have been reported, out of a total of over 16,800 cases, according to the latest data made public by the authorities. More than 10,000 patients have recovered. Among the Romanians living abroad, nearly 3,000 have tested positive and 103 have died because of this disease since the start of the pandemic.




    BORDER Checkpoints on Romanias Hungarian border, in the west, were overcrowded on Sunday as border checks require longer times because of the epidemiological checks conducted by the Public Health Directorate on incoming travellers. In Nădlac 1, cars had to queue for as long as 8 hours to be able to come into Romania and around 1.5 hours to be able to go out. At the Borş checkpoint in the north-west, the waiting time was 3 hours to enter the country and 40 minutes to exit. As of May 15th, when the state of emergency was replaced by a state of alert, all people coming into Romania from abroad must self-isolate. Those who cannot do so at home or who choose to protect their families may be accommodated in special facilities made available by the authorities.




    PARLIAMENT Senate will debate on Monday a simple motion tabled by the Social Democratic Party (in opposition) against the Romanian agriculture minister Adrian Oros. The Social Democrat Petre Daea, former agriculture minister, argues that since the Orban Cabinet took power, the normal course of agriculture programmes has been hindered. He warns that farmers are now in a difficult position, among others because the authorities have either blocked or delayed some ongoing programmes. The Social Democrats also claim that the agriculture minister failed to take concrete measures with respect to the drought and the grain exports during the corona crisis. In response, Adrian Oros argues that the motion is proof that he has disrupted certain groups of interests which controlled the ministry in recent years. Meanwhile, the Social Democrats announce they are considering motions against other Cabinet members, including the education, healthcare and interior ministers.




    ECONOMY Romania saw the highest economic growth rate of the 27 EU member states in the 1st quarter of this year, compared to the corresponding period in 2019, according to preliminary data released by the EUs statistics office, Eurostat. The countries with the largest year-on-year growth in Q1, 2020 were Romania, with 2.7%, Lithuania with 2.5% and Bulgaria with 2.4%. The most severe contraction was reported by France, negative 5.4%, followed by Italy and Spain. The Eurozones GDP dropped by more than 3% in the first 3 months of this year compared to 2019, and also saw the biggest fall since 2009. Also, in the first 3 months of 2020, compared to the previous quarter, the Eurozone saw a 3.8% drop, the most severe since 1995, when this type of data was first released. Forecasts for the coming months are even more alarming. The latest report of the European Bank for Reconstruction and Development says Romanias economy might shrink by 4% this year, as against the 3.2% increase forecast in November 2019. The European Commission expects Romanias economy to fall by a substantial 6% in 2020, and the IMF forecasts a 5% drop. However, all major international financial institutions estimate that the Romanian economy will recover next year, with growth rates between 3.9 and 4.4%.




    PANDEMIC The total number of novel coronavirus infections worldwide is over 4.7 million, with the death toll standing at over 313,000 and nearly 1.8 million people recovered from the disease. The situation remains critical in the USA, where the number of deaths reported since the start of the pandemic has passed 88,700. The US has so far reported over 1.4 million cases. Official figures indicate that Brazil is now the 4th worst hit country in the world in terms of total cases, after the US, Russia and the UK. In Brazil, the total number of cases is over 230,000. Experts say testing in that country is rather limited, which means the actual infection rate may be even 5 times higher. Italy, which has so far reported over 31,000 deaths, Monday reopens shops, bars, restaurants, hotels, beaches, pools and gyms, as well as beauty salons. Rome has also announced that on June 3rd it will open borders for tourists coming from the EU and Schengen countries, including Switzerland and Monaco, without compulsory quarantine for these travellers.


    (translated by: Ana-Maria Popescu)

  • Active measures to support the economy

    Active measures to support the economy

    The economic downturn has not been as serious as the government had expected for the duration of the state of emergency in Romania, the Romanian PM Ludovic Orban told a press conference. Budget receipts were not as small as predicted by pessimists and this was due, according to the PM, to the good measures taken to support the economy, such as the VAT return with subsequent control actions and the continuation of activity in constructions.



    PM Orban also talked about new measures to re-launch the economy. According to him, Romania could take advantage of an international economic context in which it could be a pole of attraction for substantial relocations of production facilities from certain countries. Romania is ready to provide very good conditions to attract those companies willing to relocate their production facilities, and received signals in this respect, the PM said, adding that relocations could be an engine for growth.



    The PM Ludovic Orban also believes that investments are critical to economic recovery, and announced that a mechanism would bet set up in the coming period, to guarantee the working capital and investments of big companies, after the model of SMEs Invest program, which allows SMEs to take out loans to ensure their liquidities.



    The prime minister also announced that the EBRD would support projects of economic recovery in the private and public sectors by a maximum amount of 4 billion Euros, and that a state-aid scheme would soon be made available by the Romanian government, for which it received the support of the European Commission. The measure targets mainly the big electricity consumers, and helps companies to access natural gas and electric energy, at least, at the average European price.



    Another instrument the Romanian government is going to use to support investments is the ‘greenfield’ state aid for investments, which, according to PM Orban, are either made by new companies on the Romanian market, or are development projects of new industrial facilities of certain companies that are active on the Romanian market. The government is equally working on a state-aid scheme to guarantee and ensure commercial credits, a mechanism that is already operational in Germany and Italy.



    The Romanian government is also trying to channel substantial European funds to support small and medium sized enterprises, especially their investment projects. The government’s target is to exceed the amount of 6% of the GDP allotted to public investments for a maximum period of 2 years. The PM also said that the government is considering massive growth for all types of infrastructure — transport, energy, health, communications and agriculture. (translation by L. Simion)

  • March 10, 2020

    March 10, 2020

    COVID-19 In Romania there are 52 people in quarantine facilities, to be tested for the COVID-19, the Strategic Communication Group has announced today. 11,235 other people are under home monitoring. So far 17 cases of infection have been reported nation-wide. Five of them have recovered and have been discharged. All the patients are in a good medical state, while the elderly and people with chronic conditions are closely monitored. On Monday, the National Committee for Emergencies decided to suspend classes in under-graduate schools between March 11 and 22, and the period may be extended in order to prevent the coronavirus from spreading. The authorities also approved the suspension of road passenger transport to and from Italy. The measure will be in force until March 31. Between March 12 and 31, railway transport to and from Italy is also suspended. Under a previous order all flights to and from Italy had been grounded until March 23. Airlines have to inform the citizens boarding direct flights from Italy, China, Iran or South Korea to Romania that they will be quarantined once they reach Romania. Those who enter the country through border checkpoints, coming from the aforesaid 4 countries, are quarantined either in the border county or will stay under home monitoring.



    EPIDEMIC The entire population of Italy, nearly 60 million people, were put under lockdown because of the COVID-19 epidemic, after the government decided to extend the restrictions introduced in northern Italy across the country. According to the Radio Romania correspondent, the order signed last night by PM Conte urges companies to allow employees to take annual leaves, so as to reduce travelling even for professional purposes. The decision comes after the number of coronavirus cases in Italy has reached over 9,000, with over 460 deaths. The new action plan, dubbed by PM Conte “Im staying home, takes effect today and will stay in force until April 3. Travelling across the Peninsula is restricted, except for emergencies, healthcare or business purposes. All schools and universities will be closed until April 3, public gatherings are forbidden, the football championship is suspended, and bars and restaurants will only be open until 6PM.



    CONSULTATIONS The acting PM Ludovic Orban is having consultations today with the parliamentary parties and groups, with respect to the roadmap for early elections. The vote could be held in June, but coronavirus concerns have prompted proposals to postpone it to this autumn, when parliamentary elections are also due. The only party that announced it would not take part in the talks is the Social Democratic Party, which claimed the political agenda of the National Liberal Party is completely at odds with the current priorities of the Romanian citizens. Meanwhile, on Thursday Parliament will hold the investiture vote for the Cabinet headed by the PM designate Florin Citu.



    ECONOMY The Gross Domestic Product went up 0.1% in the Euro zone and 0.2% in the EU in the 4th quarter of 2019 compared to the previous quarter, according to data released on Tuesday by Eurostat, AFP reports. Among Member States, the strongest growth was reported in Ireland (1.8%), Malta (1.7%) and Romania (1.5%). In year-on-year terms, in Q4 2019 compared to the corresponding period of 2018, the GDP rose by 1% in the euro zone and 1.2% in the EU. The member countries with the highest growth rates were Ireland (6.3%), Hungary (4.6%), Malta (4.3%) and Romania (4.2%). For Romania, figures made public previously by the National Statistics Institute indicate that in 2019 the GDP rose by 4.1% since 2018.



    MEETING The interim foreign minister, Bogdan Aurescu, is taking part today and tomorrow in Vilnius in a meeting of the foreign ministers of B9 countries. According to a news release issued by the Romanian Foreign Ministry, attending the event are also NATO officials and US State Department representatives. The meeting focuses on the implementation of the decisions made at the London summit in December 2019, with an emphasis on the reflection process on the consolidation of NATOs political dimension, on a fair distribution of responsibilities and on the Allied approach to security risks in the region. Recent developments related to NATOs role in fighting terrorism and to the management of new challenges, such as cybercrime or energy security, will also be discussed. The B9 Format is an initiative launched by Romania and Poland, with Bulgaria, Hungary, the Czech Republic, Slovakia, Lithuania, Latvia, and Estonia also taking part.

  • Government resorts to exceptional procedure to pass 3 bills

    Government resorts to exceptional procedure to pass 3 bills

    Tuesdays Government meeting was, for the first time in history, held in 2 sittings, with an intermission in the afternoon to allow PM Ludovic Orban and some of his Cabinet members to take part in a roundtable organised by trade unions with respect to next years economic prospects. Later in the day, the Government resumed its meeting, with a first reading of a bill for which the Cabinet is to request Parliaments confidence within 10 days.



    The bill concerns the repeal of provisions in the infamous Order 114, dubbed the “greed tax order, under which a year ago the Social Democratic cabinet had introduced additional taxes for banks and ceilings on electricity prices for households. Unhappy with the consequences of that order, the Liberals are now seeking to cancel it. In the talks with business people ahead of the Government meeting, PM Ludovic Orban spoke about the provisions to be cancelled:



    Ludovic Orban: “We want to repeal the provisions regarding ceilings on the price of electricity for households, as well as the current energy export limitations and the overcharges introduced in the energy sector. We also intend to cancel all the provisions concerning privately-managed pension funds in the public pension system, the financial-banking system, and charges in the communications sector. There are a number of other provisions we have in mind, but facilities for consumers will not be affected.



    All these changes will be discussed with the social partners, prior to being pushed through Parliament. Meanwhile, however, the Government initiated an extraordinary procedure, requesting Parliaments confidence on 3 other pieces of legislation: a bill amending the justice laws, the repeal of Order 51/2019 on county transportation, and a bill setting public budget ceilings.



    Back when they were in Opposition, the Liberals constantly criticised the justice laws, which they now want amended to the effect of deferring the early retirement of magistrates, the extension of the seniority requirement for entry-level magistrates from 2 to 4 years and the increase in the membership of judge panels from 2 to 3. The Orban Cabinet, which is now trying to have these provisions deferred, may seek to fully repeal them next year.



    Secondly, the Government wants to define in-county transportation as a public service subordinated to local authorities, so as to make sure that transport companies provide free school transport for children.



    Last, but not least, the Orban Cabinet will take responsibility before Parliament for a bill setting the public budget ceilings on which the 2020 state budget law will be based. Posted for public review on the home page of the Finance Ministry, the bill stipulates a budget deficit of maximum 3.6% of GDP, and a 9.7% cap on personnel expenditure. Next years public budget will also rely on an expected 4% economic growth rate.


    (translated by: Ana-Maria Popescu)