Radio România Internațional

Tag: growth

  • November 25, 2019 UPDATE

    November 25, 2019 UPDATE

    Congratulations — President Klaus Iohannis received messages of congratulation from the European leaders for obtaining a new term in office. The president of the European Council, Donald Tusk, said he was happy that Romania would continue to benefit from Klaus Iohannis’ responsible and trustworthy leadership while the president of the EC Jean-Claude Juncker expressed conviction that he could count on Romania’s active role in carrying on with the European project, adding that the Romanians’ powerful support for his unequivocal pro-European views came at an important time for Europe. Chisinau counts on a close cooperation with Bucharest after the reelection of Klaus Iohannis, said the president of the Republic of Moldova Igor Dodon. The Ukrainian president Volodimir Zelenski congratulated Klaus Iohannis underlining that the trust of an overwhelming majority of voters was very important for a new mandate. The Serbian president said Serbia was a sincere friend and a trustworthy partner of Romania, expressing persuasion that the good political relations will be accompanied by a better economic cooperation.



    Colectiv — The prosecutors of the National Anti-corruption Directorate on Monday called on the Bucharest tribunal to sentence the former mayor of Bucharest’s sector 4 Cristian Popescu to 15 years in prison for such crimes as abuse of office in relation to the issuance of operation authorization for the Colectiv nightclub. The Bucharest tribunal started hearing the closing arguments in the Colectiv trial. On trial among others are the mayor of the Bucharest sector in which the club was located, Cristian Popescu, the clubs owners and the pyrotechnic workers. The trial into the tragedy at Colectiv nightclub began in April 2016. After two years of delays based on procedural issues, the magistrate in charge of the case retired. The new judge sped up the hearings, setting weekly hearing dates. 64 people were killed in the fire, one committed suicide because of the trauma, and almost 200 suffered injuries.



    CSAT — The Supreme Council of National Defense of Romania convenes on Wednesday in Bucharest under the chairmanship of president Klaus Iohannis. High on the agenda of the meeting are issues related to proposals for the budget adjustment for institutions with responsibilities in national security in 2019, to the approval of the new chief of the defense staff as well as to Romania’s objectives at the NATO summit to take place in December in London. The meeting will also tackle the plan for use of the Romanian Defense forces which will be sent to missions and operations outside Romania’s borders in 2020. This is the first meeting of the country’s Supreme Defense Council which will be attended by members of the government led by the Liberal leader Ludovic Orban. The previous meeting of the Supreme Defense Council was held on July 30.



    Strasbourg — The Council of the EU adopted the list of persons who will occupy the position of European Commissioner in the future European Commission. Monday’s decision is the last stage ahead of Wednesday’s vote in the EP on the program and membership of the EC headed by Ursula von der Leyen. Adina Valean with the European People’s Party Group is the Romanian Commissioner who will manage the Committee on Transport. Member states decided that the new EC would start its activity on December 1 with 27 commissioners, without Great Britain, which refused to make a proposal for commissioner in the context of Brexit. (translation by L. Simion)

  • November 14, 2019

    November 14, 2019

    FINANCE For the past 3 years, Romanias economy has been managed according to 2 budgets, one presented in Parliament and for which no PM or finance minister in the former Social Democratic governments has taken responsibility, and another one containing accurate data and used for financing party barons, the new Finance Minister Florin Cîţu told a press conference on Thursday. The added he would notify the competent authorities. According to the minister, the budget deficit for the first 10 months of the year is 2.84% of the GDP, above the estimate for the entire year, and unless measures are taken in the next one and a half months the figure will exceed 4%. Some 500 million euros in the public pension budget is unaccounted for, Cîţu added, and explained that this years budget should be adjusted downwards.




    ORDER The Government of Romania passed an emergency order on the status of the British citizens living in Romania in the event of a no-deal Brexit. Romania was the only EU member state still to regulate the matter. The Prime Ministers chief of staff, Ionel Dancă, explained that the order was necessary and had been requested by the British side.




    COMMISSIONER The Romanian MEP Adina Vălean, nominated for the transport commissioner post, is heard today in the European Parliaments specialist committees, along with the commissioners nominated by France and Hungary. On Tuesday she was given the green light by the Committee on Legal Affairs, which looked at possible conflicts of interest. Also on Tuesday, Vălean was heard by the joint European affairs committees of the Romanian Parliament, whose opinion is advisory. When the formal hearings are over, the president elect of the European Commission Ursula von der Leyen will present the full commission and its programme to the European Parliament on the 27th of November.




    GROWTH Romanias GDP is up 4% in the first 9 months of this year, compared to the corresponding period of 2018, the National Statistics Institute announced. However, the economic growth rate slowed down in the 3rd quarter, to 3% as against 4.4% reported for the 2nd quarter. In its autumn economic forecast made public recently, the European Commission estimates a 4.1% economic growth rate for Romania in 2019, and expects the rate to drop to 3.6% in 2020 and 3.3% the following year.




    TRAVEL 230 operators from 16 countries are attending until Sunday the largest Tourism Fair in Romania, organised in Bucharest. Taking part are representatives of travel agencies, tour operators, and associations and local authorities promoting their regions. Visitors can purchase holiday packages for this winter and for 2020, with discounts of up to 45%.




    FOOTBALL Romanias Under 19 football team is playing today at home against Finland, in Group 8 of the 2021 UEFA European Under 19 Championship qualifiers. Denmark tops the group with 9 points, followed by Finland with 7 and Romania with 6 points. In the Euro 2020 qualifiers, Romanias senior team are facing Sweden at home on Friday. Group F is dominated by Spain with 20 points, who have already secured their qualification, followed by Sweden with 15 points and Romania with 14. To qualify, Romania need to defeat Sweden and draw against Spain away. The two best-placed sides in each group will qualify. The drawing of lots for Euro 2020 will take place in Bucharest on the 30th of November. The Romanian capital will also host four European Championship matches, three group matches and a quarterfinal.




    HANDBALL Romanias mens handball champions, Dinamo Bucharest, are undefeated in the Champions League, after a draw against the Swedish side IFK Kristianstad, 29-29, in Group D. Dinamo, already qualified into the play-offs, ranks first in the group with 13 points, followed by GOG Gudme (Denmark), with 9 points, Orlen Wisla Plock (Poland) with 7, Kadetten Schaffhausen (Switzerland), with 6, IFK Kristianstad (Sweden) with 5 and Cehovskie Medvedi (Russia) with 4 points. Dinamo is next to take on Cehovskie Medvedi at home on November 20.


    (translated by: Ana-Maria Popescu)

  • European economic forecasts

    European economic forecasts

    The growth rate of the Romanian economy will increase slightly this year, to 4.1% of the GDP, but will slow down to 3.6% and 3.3% in 2020 and 2021, according to the autumn economic forecast released on Thursday by the European Commission. Private consumption is expected to go down, but it will remain the main growth engine during the period in question, while available incomes will continue to be supported by an expansionary tax policy and a sound increase in salaries.



    The European Commission also expects the inflation pressures to ease in the forthcoming period. From an annual peak of 4.1% in 2018, the institution says, the consumer price index dropped to 3.5% in September this year, as energy and food prices decreased. The level is expected to stay around 3.9% this year and to get back within the National Banks target of 2.5% next year.



    On the other hand, the European Commission says both domestic developments and external factors may entail some risks. A possible slowdown affecting Romanias main trade partners, for instance, could impact the countrys exports. Domestically, a busy election calendar until the end of 2020 and the recent political uncertainties may defer the start of structural reforms and may affect the efforts to reduce macroeconomic imbalances.



    The European Commission also warns that the budget deficit will widen significantly on account of the public pensions expenditure. According to the autumn economic forecast, the government deficit is expected to go from 3% in 2018 to 3.6% this year, as a result of substantial pay raises in the public sector. The government deficit is likely to reach 4.4% of the GDP in 2020 and 6.1% of the GDP the following year, following the significant pension increases regulated this summer.



    As regards the Eurozone and the European Union on the whole, growth forecasts for this year and for the next 2 years were adjusted downwards. The GDP of the Eurozone is expected to increase by 1.1% in 2019 and by 1.2% in 2020 and 2021, whereas EU-wide the figure is put at 1.4% for each of the 3 years. The European Commission warns however that in the future member states may face difficulties triggered by trade conflicts, growing geopolitical tensions, Brexit and lingering deficiencies in the processing industry.


    (translated by: Ana-Maria Popescu)

  • World Bank forecasts

    World Bank forecasts

    The World Bank has announced an upward adjustment of its estimates regarding the growth of the Romanian economy, with the new figures standing at 4.2% for this year, 3.6% for 2020 and 3.2% for 2021. Experts expect a slow-down in the medium-term economic growth, particularly in the context of a rise of employment rates among higher education graduates at the expense of job seekers with lower education, which is predicted to feed into rising inequality.



    The World Bank also says the government will have difficulties keeping the budget deficit below 3% of GDP. The newly passed Pension Law and the planned public sector salary increases will put pressure on the consolidated budget deficit and reduce the resources for investments. The institution recommends that the governments priorities should include reforms in public administration and state-owned companies, as well as policies addressing social and regional disparities.



    The World Bank also suggests renewed efforts to reduce unemployment among youth and low-skilled workers, which will help reduce the constraints on demand and contribute to sustainable economic growth. “In the medium term, the focus of fiscal policy should be rebalanced, from increasing consumption to mobilizing investments, especially from European funds, to support sustainable convergence to the EU and social inclusion. Reforms in public administration and state-owned companies, enhancing the predictability of regulations, as well as appropriate policies for addressing social and spatial disparities should be on the governments priority agenda, the institution added.



    Meanwhile, another World Bank report shows that nearly 40% of the Romanian emigrants are higher education graduates, and warns that this generally leads to problems in the field of skilled workforce and consequently to a slow-down of the economic growth in the countries of origin. According to the report, the share of immigrants in Europe has risen sharply over the past 4 decades, with 1 in 3 immigrants now going to Europe. Intra-regional migration is also high in Europe and Central Asia, with 80% of the people choosing to move to other countries in the same region. “Migration also raises concerns of ‘brain drain of skilled-labour from countries of origin, as people with more education tend to emigrate more often around the region, the report also shows.


    (translated by: Ana-Maria Popescu)

  • Public pensions go up

    Public pensions go up

    As of September 1, the value of the pension point, against which pension benefits are calculated in Romania, was raised by 15%. Five million pensioners benefit from the increase. The new law stipulates a gradual increase of the pension point value between 2019 and 2022, as well as the updating of millions of pension benefits paid at present.



    The new act also provides for including Ph.D. and M.A. programmes in calculating length of service, and the possibility to “buy a maximum of 5 years of service. Minimum pensions will only be paid to people who have contributed to the public pension fund for at least 15 years.



    Under the new law, the minimum guaranteed pension goes up from 640 to 704 lei. With an exchange rate of around 4.7 lei for the euro, Romanian pensioners remain some of the poorest in Europe, observers note, adding that over the past few years the steady rise in consumer prices has affected spending power substantially.



    Even so, on Friday the International Monetary Fund recommended that Romanian authorities revise the new Pension Law, initiate a sustainable fiscal consolidation process and improve the management of public institutions. IMF experts argue that the new law jeopardises fiscal sustainability. According to the IMF assessment, Romanias economic growth rate will stay at 4% in 2019 and drop to 3% in the medium run. Estimates also show that the countrys budget deficit is set to reach 3.7% of GDP this year.



    The Social Democrats candidate in this Novembers presidential election, PM Viorica Dancila, promised that the government has all the funds required to cover the measures taken by her Cabinet. She says the pension increase is an act of justice, and that never will a Social Democratic government measure pensioners incomes against macroeconomic indicators.



    Analysts are not surprised with this move, given that pensioners make up an overwhelming majority of the voters of the Social Democratic Party. On the other hand, the Liberal vice-president, Senator Florin Citu, whose party supports the incumbent president Klaus Iohannis for a new term in office, criticises the Prime Ministers statement. It is not true that pensioners incomes are not correlated to the macroeconomic deficit, the Liberal economist said in a Facebook post, and added that the recent budget amendment approved by the Finance Minister indicates the measure will result in an estimated 2.9 billion lei deficit in the public pension budget, and the actual deficit will likely be at least double the estimated figure.


    (translated by: Ana-Maria Popescu)

  • The Romanian and world economy in 2019

    The Romanian and world economy in 2019

    Romania’s economy will grow by 3.5% in 2019 and by 3.1% in 2020, down one percent as compared to the forecast of June 2018, as indicated by the 6-month report Global Economic Prospects recently published by the World Bank. This international financial institution estimates that in Europe and Central Asia, the economy slowed to 3.1% in 2018, down from 4% in 2017, reflecting slumping economic activity in Turkey in the second half of last year. If we discount Turkey, regional growth is stable at 2.9% in 2018, because slowing economic activity in Bulgaria and Romania was compensated for by increased activity in the east of the region, which benefited from higher crude oil prices last year, according to the World Bank.




    The rise in the world economy is expected to slow down to 2.9% this year, as compared to 3% last year and 3.1% in 2017, while the growth rate of world trade is expected to slow down to 3.6% this year as compared to 3.8% last year and 5.4% in 2017. The World Bank expects that this will affect industries all across the world and that there is a growing risk for the global economy, with worsening prospects against the background of harsher financial conditions, growing trade tensions, and turbulence on financial markets in some emerging or developing countries. World Bank Chief Executive Officer Kristalina Georgieva has pointed out that “At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead.



    At the same time, the trade war between the US and China will have repercussions across the world, and could also increase instability on financial markets, which will affect developing economies. Computations show that the growth of the largest economy in the world, the US, would slow down to 2.5% this year from 2.9% in 2018, while China is supposed to have 6.2% this year from 6.5% in 2018. The Eurozone is expected to grow by 1.6% this year, as opposed to 1.9% last year, the report indicates. As for Romania, the World Bank expects it to see a 4.1% growth in GDP for 2018, down one percent from the June 2018 forecast. The growth rate is expected to go down even further in 2021, when it is forecast to reach 2.8%. Romania continues to be a dependent economy and to have a trade deficit, with Romanians spending on average 48% of their family budget on food, centralised data indicate. Speaking on Radio Romania, professor Mircea Cosea did an analysis of foreign trade right now:



    “We have specialised in an industry that overwhelmingly manufactures equuipment and parts for the car-making industry. Romanian has become a great producer of components and parts, all that has to do with car manufacture, meaning an industry that is detached from the technical progress. While others lead by designing and conceiving the product, we manufacture it in factories where workers assemble it. This is not bad, either, because it creates jobs. Romanian exports today depend 50 to 70% on industrial exports to a few developed countries, usually three, Germany, France, and Italy, to which we export parts for cars, engines, components, all sorts of things. If the car market collapses in the West, and that moment is not far off considering whats going on with movements in France and Germany, but also because of Mr. Trump’s trade war. We might find that there will be no more orders for cars, and we won’t even be able to export that. What else are we exporting right now? We also export various other types of industrial products, even from the IT area, but over 60% of the value of these products are imports. We have an economy dependent on developed countries, generally the core of the EU, and we depend on them for the good running of the market.



    On the other hand, experts are expecting a rise in banking interest rates this year, after a long period of time in which, in an attempt to combat the effects of the financial crisis, central banks have kept interest rates at unusually low levels. The effects will probably make themselves felt in Romania too, according to financial analyst Aurelian Dochia:



    “I believe the prospects for 2019 are fairly good, but they are strictly dependent on the evolution of the Romanian economy. Many economists and international institutions believe that the growth rate will fall, including in Romania, even if it will be much higher than in other European countries, especially in the Eurozone. And that means that the pace of growth in the banking system and in lending might see a more moderate rate.



    Aurelian Dochia believes that the measures taken by the National Bank of Romania on limiting lending to private individuals, which came into effect on January 1, will only affect a small category of persons, and will not have an overall negative effect on bank lending.

  • Romania’s economic growth continues

    Romania’s economic growth continues

    Converging with the specialised Romanian institutions, the European Office for Statistics (Eurostat) has confirmed the growth of Romanias economy. According to the revised estimates published on Thursday by Eurostat, in the third quarter of 2017 Romania reported the most significant GDP increase of the 28 EU member states, both compared to the same period of last year and to the second quarter of this year.



    Economic growth has been reported practically across the community space: the GDP of the Euro zone and of the European Union has increased by 2.6% as against the same period of 2016 and no member state has reported any drops. Romania is in the lead, with 8.6%, followed by Malta with 7.7% and Latvia with 6.2%. Also according to Eurostat, Romania has the second lowest taxation level in the EU after Ireland, with the revenues from taxes only accounting for 26% of the GDP.



    Therefore, macroeconomic data fuel the optimism of the Social Democrat PM Mihai Tudose, who said that it was for the first time that Romanias GDP exceeded 200 billion Euros, which would allow for the salary and pension increases that have been promised repeatedly by the governing coalition made up of the Social Democratic Party and the Alliance of Liberals and Democrats.



    But the right-wing opposition, trade unions and economic analysts are less exuberant. They argue that Romanias economy is a much more vulnerable “tiger than it seems, that the economy is overheated and that the record growths reported are based on consumption and on imports. In turn, the leaders of the big trade union federations organised several protest rallies in Bucharest this autumn. They say the fiscal reform planned by the Government will lead to decreases in salaries and even to job losses, because of the transfer of social security payments from employers to employees.



    Previously, President Klaus Iohannis had labeled the government project a fiscal chaos, following which people earning an average salary will only receive 70 eurocents more to their salaries.



    In reply, the PM Mihai Tudose and his party chief, the Social Democrat leader Liviu Dragnea, said they did not understand the opposition to the measures announced by the government for next year, since both employees and employers would be at an advantage.



    According to commentators, we will know more about the real prospects of the Romanian economy after the endorsement of the state and social security budgets for 2018. Based on an estimated economic growth rate of 5.5% and on an average annual inflation rate of 3.1%, the budgets are to be adopted by Parliament on December 21. According to the timetable set Thursday by the joint standing bureaus of Parliaments two chambers, amendments can be brought to the draft laws put forward by the Government between December 7th and 16th, and on December 18 debates will be held in a plenum session.


    (translated by: Lacramioara Simion)

  • November 16, 2017 UPDATE

    November 16, 2017 UPDATE

    PRESIDENCY – Romanias president Klaus Iohannis travels to Gothenburg, in Sweden, on Friday, to attend a social summit on fair jobs and economic growth. The event brings together EU heads of state and government, social partners and other key players. The summit consists of an introductory meeting and three other meetings focusing on specific themes that will discuss access to the labour market, the situation of the labour market and the transition between jobs. The Romanian president Klaus Iohannis is to give a talk on the access to the labour market.




    NO-CONFIDENCE MOTION – The National Liberal Party, the main party in opposition in the Parliament of Romania, announced that it would table a no-confidence motion on Friday against the government made up of the Social Democratic Party and the Alliance of Liberals and Democrats in Romania. The Liberals main criticism against Mihai Tudoses Cabinet concerns the changes in the tax code. The new version of this law switches the responsibility for social security payments from employers to employees and cuts income taxes from 16 to 10%, as of January 1, 2018. Over the past few weeks, street protests have been held in Bucharest and other major Romanian cities against the governments plans to change the tax code and the laws on the judiciary. On the other hand, PM Tudose claims that the new fiscal reform would result in more money to the state budget and social security budget, and will reduce bureaucracy.




    JUDICIARY – The Constitutional Court of Romania postponed to next week the ruling on a notification filed by the Senate Speaker Călin Popescu-Tăriceanu with respect to an alleged conflict between the Government and the Public Ministry over government resolutions. The notification was tabled against the backdrop of an investigation by the National Anti-Corruption Directorate, concerning 2 former members of the current Cabinet, namely the former deputy PM and minister for regional development Sevil Shhaideh, and former minister for European funds Rovana Plumb. They resigned a month ago, after being accused in this case. The National Anti-Corruption Directorate claims that in 2013 two plots of land in the Danube plains were illegally transferred, under a government resolution, from state property into the property of Teleorman County and the management of the Teleorman County Council. At that time, Shhaideh was a secretary of state with the Ministry for Regional Development, and Plumb was minister for the environment.




    EU AGENCY – The assessment made by the European Medicines Agency on its possible relocation from London to Bucharest exceeds its responsibilities, says the Romanian foreign ministry. The assessment made by the Agency, argues the Romanian ministry, should have only covered a number of specific aspects to facilitate a final assessment of the European Commission. The Romanian side is also unhappy with the content of the Agencys report. The winner of the bid to host the European Medicines Agency after the UK leaves the European Union will be announced on the 20th of November. Now based in London, the European Medicines Agency is considered one of most important of the European Unions 40 specialised agencies. It employs 900 people and receives visits from around 35,000 national regulation authorities and scientists every year given its essential role in approving new medicines on the European market. Bucharest has made a bid to host this agency along with other big cities in the EU.



    AUTOMOTIVE – The sale in Europe of Dacia cars made by Renault in Romania saw a 20.3% growth in October compared with the same month last year, while its market share grew from 2.6 to 2.9%, according to statistics made public on Thursday by the European Automobile Manufacturers’ Association. In the first ten months of the year, deliveries of Dacia cars saw an 11.3% increase in Europe. The Dacia car factory was taken over by Renault in 1999. Relaunched in 2004 with the Logan model, Dacia has become an important player on the European car market.


    (translated by: Ana-Maria Popescu, Cristina Mateescu)

  • October 20, 2017 UPDATE

    October 20, 2017 UPDATE

    DEFENCE Romanian Defence Minister, Mihai Fifor said in Krakow on Friday that it was time for Romania and Poland to step up their cooperation including in the field of defence. The Romanian official made the statement during a meeting he had with members of the Romanian community and Polish students who are studying Romanian at the Jagiellonian University. Fifor underlined the old friendship relation between the two countries and their very good cooperation inside the Strategic Partnership. On Thursday, the Romanian Minister participated in the inauguration of the NATO Counterintelligence Center of Excellence together with his counterparts from Poland, Slovakia and Hungary. On this occasion, Fifor said Romania had supported the project of setting up this centre from the very beginning, as this institution is needed for the training of NATO experts in the field. During his visit to Poland, the Romanian official has also met Romanian officers deployed to this country as part of the US-led NATO Battle Group for the period September 2017 — March 2018.




    SUMMIT The European Council president Donald Tusk announced on Friday, the last day of the Brussels summit, the beginning of the interior procedure for the second phase of the Brexit negotiations with Britain’s representatives. Romanian president Klaus Iohannis said after the summit that the message conveyed by the EU leaders was a positive one, as they want to create ‘a better Union closer to the citizen.’ Asked by the journalists what he thought about the fact that British Prime Minister Theresa May had admitted that talks with the EU had reached a deadlock, the Romanian official said that nobody was trying to halt the negotiations, but there was no guarantee that headway would be made until December this year. The Romanian president said that the latest European Council session also included talks on migration, which in his opinion, was the first in a positive and optimistic tone. Iohannis added that this summer saw an increased number of migrants coming via the Black Sea without this being a mass phenomenon. Iohannis announced that Romania had decided together with the countries participating in the summit to back the Nuclear Agreement with Iran. The EU’s digital agenda, security and defence, the EU’s relations with Turkey and North Korea’s nuclear programme were also discussed during the summit.




    MIGRATION 28 citizens from Afghanistan, India, Iran and Iraq have been stopped by border police at Romania’s border with Hungary. The group was made up of nine women, eight men and eleven minors with ages between one and 17 years. All of them were asylum-seekers who said their intention was to cross the border into Hungary in order to make it to countries in Western Europe. The perpetrators are to be investigated for illegal entry and if found guilty legal measures are to be taken against them. Over 1000 migrants have been trying to cross Romania’s border into Hungary since the beginning of the year.



    GROWTH According to a World Bank report Romania’s economy is to register unexpected growth in 2017 and 2018. The country’s GDP will supposedly rise by 5.5% this year thanks to the fiscal incentives and the improved European economy. Increased consumption will also lead to a current account deficit as well as inflation estimated at 2% at the end of this year. The report also says that Romania’s GDP will rise by 4.1% in 2018 and 3.6% in the following year. The World Bank cautions against accumulated fiscal pressure and excessive domestic demand, which could make Romania’s economy vulnerable to shocks also limiting the authorities’ future actions.



  • March 7, 2017

    March 7, 2017

    STATISTICS — Romanias GDP in 2016 went up 4.8% against 2015, according to preliminary data published by the National Institute of Statistics. The estimated GDP for 2016 was over 759 billion lei, approximately 169 billion Euro, as compared to 160 billion in 2015. All branches of the economy contributed to the growth in 2016, except for agriculture and construction, which stagnated. The economy was principally driven by consumption. For 2017, the European Commission estimates growth to be 4.4%, with a slowdown to 3.7% in 2018. The IMF expects the GDP in 2017 to be 3.8%, the highest rate of growth expected in Europe. This years national budget is based on an expected growth of 5.2% of the GDP.



    REVIEW — Romanias General Prosecutor, Augustin Lazar, presented the general review of activity for last year, declaring that 2016 was a year with considerable results in judicial activity, considering the legislative instability in the country. In his opinion, the Public Ministry fulfilled its important mission in the institutional architecture of the rule of law. The General Prosecutor said that the institutional approach of his office is based on the National Defense Strategy for 2015-2019, as well as the National Anti-corruption Strategy and the National Strategy for the Reform of the Judiciary 2015-2020. For this year, he said, priorities will be mainly fighting corruption and tax evasion, fighting against environmental violations, especially in forestry, as well as violations regarding the national heritage. The event was attended by President Klaus Iohannis, who said Romania has made significant progress in terms of the justice system, but that it still awaits the final results of investigations into the 1989 Revolution and the miners raids of the early 1990s.



    POLICE — In Bucharest today, police union representatives hold a new round of discussions regarding the Unitary Salary Law, attended by Interior Minister Carmen Dan, and Finance Minister Viorel Stefan. Yesterday, police unions negotiated the law with Labor Minister Lia Olguta Vasilescu, but said they did not reach a conclusion, announcing protests for mid-March. Their main complaint is that incentives are not calculated based on the present minimum wage of around 320 Euro, but on the minimum wage as it stood in December. Interior Minister Vasilescu said that the Unitary Salary Law will be ready in July, as provided by the government platform.



    COUNCIL — Romanian Minister Delegate for European Affairs, Ana Birchall, takes part today in Brussels in the meeting of the General Affairs Council. Under discussion is the draft conclusion of the council regarding the Cooperation and Verification Mechanism report, which acknowledges the major progress made by Romania, and emphasizes support for the Romanian authorities in meeting the demands of the mechanism. The meeting in Brussels is in preparation for the European Council agenda scheduled for March 8 and 9. The ministers will analyze a draft recommendation on Eurozone economic policies supporting economic growth, and will focus on reaching an accord on a European banking insurance system. Another point on the agenda is the update provided by the Maltese presidency of the Council on applying the inter-institutional accord for better legislation, passed in March last year. This accord is supposed to make the EU legislative process easier to monitor and more transparent.



    TENNIS — Several Romanian women tennis players are present at the Premier Mandatory tournament in Indian Wells in the US, with 6.9 million USD in prize money. Patricia Țig, 99th seeded, went to the final qualifiers by defeating Japanese player Shuko Aoyama, 212th seeded, 6-0, 6-2. Țig plays next American Julia Boserup, 97th seeded. Ana Bogdan, ranked 124th, was eliminated by Japanese player Nao Hibino, ranked 81st, 6-4, 2-6, 6-7. Sorana Carstea, 66th seeded, and Monica Niculescu, 45th seeded, plays against each other in the inaugural round, while Simona Halep, 4th in the world, and Irina Begu, ranked 32nd, play in the second round, with adversaries yet to be established.



    FOOTBALL — In Romania, the premiere football league regular season is over, with the play-offs and play-outs starting on March 10. The top six teams will contend for the title, while the last eight will have to fight to stay in the league. Viitorul, Steaua, standing champions Astra, Craiova, CFR Cluj and Dinamo are in the play-offs. Gaz Metan Medias, FC Botosani, FC Voluntari, CSM Poli Iasi, Concordia Chiajna, Pandurii Tg. Jiu, ACS Poli Timisoara and ASA Tg. Mures remain in the play-outs.

  • January 23, 2017

    January 23, 2017

    BUDGET – The main opposition party in Parliament in Bucharest, the National Liberal Party, said they were considering a no confidence motion against the governing coalition between the Social Democrats and the Liberal-Democrat Alliance. Interim Liberal chairman Raluca Turcan said that the proposed blanket pardon of inmates and changes to the Penal Code are simply a cover for getting out of prison political clientele, and not solving issues with prison overcrowding, as claimed. The Save Romania Party said they support the Liberal initiative, and would introduce a censure motion against Justice Minister Florin Iordache. At the same time, the Romanian Intelligence Service categorically rejected serious allegations regarding its involvement in Sunday’s protests against the executive orders, telling the public that it remains non-partisan and focused on carrying out its mission strictly within the bounds of the law.



    BUCHAREST – Romania’s 2017 budget bill relies on a 5.2% economic growth this year, and a projection of over 5% for the 2018-2020 interval. The deficit relied on is 2.96% of the GDP, according to the report on the macroeconomic situation for this year and the upcoming 3, published by the Finance Ministry on its website. For the 2017 budget bill, the macroeconomic indicators considered were an expected average annual rate of inflation of 1.4%, net wages around 2,274 lei (around 505 Euro), and an average exchange rate of 4.46 lei against the Euro. Employment is expected to go up by 4.3% by the end of 2017.



    UNION – Bucharest and other Romanian cities are holding events dedicated to celebrating 158 years since the union of the Romanian Principalities. On January 24th, 1859, the Principality of Wallachia’s Election Assembly in Bucharest elected as a ruler Alexandru Ioan Cuza. He had been elected ruler of the Principality of Moldavia a week before. This constituted the de facto union of the two Romanian territories. Three years later, on January 24th, 1862, the union was internationally recognized. Radical reforms were instituted during Cuza’s reign, which lasted until 1866, laying the basis for modern Romania.



    CLUB FIRE – 4 people injured in Saturday’s fire in a popular Bucharest club are still in hospital in the Romanian capital. According to the Ministry of Health, 44 people were treated for smoke inhalation, hypothermia, and bone fractures. None of the patrons suffered burns. The investigation into the causes of the fire is ongoing. We recall that the fire in the Colectiv club in October 2015 during a concert left 64 dead and injured over 100. This latest fire led to the authorities running inspections all over the country in places open to the public, uncovering irregularities and issuing fines.



    TENNIS – In tennis, the Romanian pair Irina Begu and Horia Tecau missed on Monday the qualification to the quarter finals of the mixed doubles in the Australian Open, the first Grand Slam of the year. The two lost against the US-Colombia pair Abigail Spears- Juan Sebastian Cabal, 0-2. Romania has no representative left in the Australian Open, after Sorana Carstea lost on Sunday in the singles the game against Garbine Muguruza of Spain in the eighth finals.



    MALTA – Ministers of foreign affairs from EU states start their two day informal meeting in Malta. They are debating the priorities of the Maltese presidency of the EU, such as migration, the single market, security, social inclusion, neighborhood policy, as well as economic issues. Malta took over the rotating EU presidency from Slovakia on January 1st, 2017. This presidency will oversee, among other things, the ongoing candidacy for EU membership of Albania, Macedonia, Montenegro, Serbia and Turkey.


  • October 4, 2016 UPDATE

    October 4, 2016 UPDATE

    ECONOMIC GROWTH – The International Monetary Fund has updated its estimates on Romanias economic growth rate from 4.2% in April to 5% in its latest report, released on Tuesday. According to the IMF forecast, this year Romania will have the highest economic growth rate in Europe, followed by Ireland with 4.9%. IMF experts warn that this years peak growth will be followed by a slow-down to 3.8% in 2017, slightly over the 3.6% rate estimated in April, but even so, next year as well Romania is expected to see the highest growth pace in Europe.



    COUNTRY PROJECT – The country project will be a strategic document, a “brief, clear, easy to understand text outlining the broad directions of development for Romania, President Klaus Iohannis said on Tuesday, at the end of the first meeting of the Presidential Committee tasked with drawing up the project. President Iohannis came up with the idea of setting up this task force after consultations with political leaders regarding Brexit revealed the need for a country project in the new European context. The committee, made up of two representatives of each parliamentary party and a representative of the government, is coordinated by two presidential advisers. Eleven specialists in various expert fields, well connected to European realities, are also part of the committee.



    TENNIS – The Romanian Simona Halep (no. 5 WTA), seeded fourth, Tuesday qualified into the eighth-finals of the WTA tournament in Beijing, after defeating the Belgian Yanina Wickmayer (no. 56 WTA), 6-2, 6-2. Halep and Wickmayer had played 4 other times against each other, with the Belgian player winning three of the games. China Open has 5.4 million USD in total prize money.

  • Government report

    Government report

    Romanias economic growth rate estimated for this year is 4.8%, as against the initial 4.2% forecast. The announcement was made by Prime Minister Dacian Ciolos who on Monday presented to Parliament this countrys economic situation. According to the Prime Minister, throughout its short term in office, the technocratic government has tried to ensure a predictable economic environment, favouring investment, as well as an efficient and transparent management of public money. Prime Minister Ciolos said that the economic growth rate of 5.2% of the GDP in the first half of the year reflected in a larger number of jobs, a lower unemployment rate and higher wages.



    Prime Minister Dacian Ciolos: “ We dont intend to increase any taxes or fees by the end of our term in office. We dont intend to change any benefits or allowances, as the word was spread. On the contrary, this year, we have cut the VAT down to 9% for farm works and inputs in agriculture and to support the agricultural sector, small producers in particular, we intend to simplify the Fiscal Code, proposing a special VAT for small farmers.



    Dacian Ciolos announced that a state aid plan supporting small and medium-sized businesses would be implemented by the end of the year. The government is also preparing the reform of the system of social welfare and tax facilities for those investing in professional training.



    The Prime Ministers speech in Parliament requested by the Social Democratic Partys leader, Liviu Dragnea, was not to the liking of that party, apparently uncomforted about the loss of power less than a year ago with the resignation of former prime minister, Victor Ponta. That is why, Liviu Dragnea criticized the governments performance, accusing Prime Minister Ciolos that he had not spoken Romanian, but the “technocrats language, which sounds strange and getting away from reality.



    Liviu Dragnea: “You used the word growth, instead of the word failure and Romanians are increasingly perceiving the failure of this government.



    Prime Minister Dacian Ciolos retorted promptly: “I do not speak, nor do I want to learn the Romanian language of demagogy and populism. Dacian Ciolos went on to say:



    Dacian Ciolos: “You said that this economic growth did not reflect in the peoples living standard. It may not reflect in peoples living standard yet. The thing is that this years growth has not reflected in the living standard of the political cronies either and that is probably a bigger problem.



    Moreover, Prime Minister Dacian Ciolos said that addressing Parliament he had not aimed to win over votes. In the run up to the parliamentary elections due in December, political struggle is intensifying and every party is taking any opportunity of winning over voters. For the parliamentary parties, the Prime Ministers speech seems to have been such an opportunity.


  • Encouraging Economic Prospects

    Encouraging Economic Prospects

    For Europe and Central Asia, a region that includes Romania, but not the Eurozone, the WB forecasts a 3% growth rate for 2016 and 3.5% for the next two years.



    In its latest report on global economic prospects, released on Wednesday, the World Bank raised its forecasts regarding Romania’s economic growth rate from 3.2 to 3.9% for this year and from 3.5 to 4.1% for 2017. The World Bank thus joins the European Commission and the International Monetary Fund, which in late 2015 made public equally optimistic projections, confirming the positive trend of the Romanian economy in the past few years. The EC estimated, in its autumn forecast, an annual 4.1% increase of Romania’s GDP this year and 3.6% in 2017. The IMF makes similar forecasts, namely an estimated 3.9% growth rate this year, while the Government of Romania expects the economy to grow by around 4%.



    The World Bank also improved its estimates regarding last year’s economic growth, from 3 to 3.6%. For the Europe and Central Asia region, which includes Romania, but not the Eurozone, the World Bank expects a 3% economic growth rate in 2016 and 3.5% for 2017 and 2018. The Bulgarian economy is expected to go up by 2.2% this year and 2.7% next year, Hungary will see 2.5 and 2.7% growth rates in 2016 and 2017 respectively, and Poland is to expect 3.7 and 3.9% growth rates. The World Bank remains optimistic as concerns Romania’s economic growth rate in 2018 as well, when it projects a 4% rise in the GDP.



    On the other hand, the World Bank warns that the region is facing many risks, including a possible deepening of geopolitical tensions, persistent low commodity prices as well as a decline in remittances from developed countries. The international financial institution argues that more rapid growth in the region will depend on supporting a rebound of investment, which is still below the pre-crisis levels.



    In many countries, public investments are constrained by limited fiscal space, and private investments are affected by companies still struggling to work off debts. In some EU Member States, like Bulgaria and Romania, investment is supported by the EU structural funds, but the absorption capacity remains a problem.



    According to the World Bank, one of the regional factors that might affect Romania and Bulgaria is the slow-down in Turkey’s growth. At global level, according to the report, growth will be affected by the problems of the emerging economies, but the GDP increase should see a modest pick-up, from 2.4% in 2015 to 2.9% this year, thanks to the more substantial growth of the developed economies.


    (Translated by Ana Maria Popescu; Edited by Diana Vijeu)

  • 8 December, 2015

    8 December, 2015

    Romania had the highest economic growth in the EU in the third quarter of this year, as compared to the previous. This data was published by Eurostat. Romania, with a growth of 1.4%, is followed by Croatia, with 1.3%, Malta, 1.1%, and Latvia, with 1%. Recently, the European Commision upgraded its economic growth forecast for Romania in 2015 up to 3.5%. The EC estimated that Romanias GDP would grow by 4.1% in 2016 and 3.6% in 2017 as consumption grows and taxation is lowered.



    Austria has started building a metal fence two meters high and 3.7 km long on the border with Slovenia, to thwart the inflow of migrants in the country, though it has been dwindling of late, according to AFP. This is the first time this occurs within the Schengen space, according to the agency. In September, Hungary also erected barbed wire metal fences at its borders with Serbia and Croatia. Subsequently, Slovenia erected another such fence on its border with Croatia. According to the World Migration Organization, Austria and Germany had this year around one million applications for asylum. 878,000 migrants crossed the Mediterranean in 2015, four times more than last year. Over 3,500 people have drowned in the sea, and almost 600 trying to cross from Turkey to Greece.



    Romanias womens national handball team will today be taking on the similar team of Spain, with the game counting as the third fixture Romanian is playing the at the World Championships final tournament, underway in Denmark. In its first two games, Romania trounced Puerto Rico, 47-14 and secured a stout 36-20 win over Kazakhstan. Also joining Romania in group D are Norway and Russia. The first four teams in each group will go through to the eighth finals. Romania is the only country that as early as 1957 took part in all World Championships final tournaments, where they won three medals, gold in 1962 and silver in 1963 and 2005, respectively.



    24 people injured in the fatal fire in the Bucharest club Colectiv are still under care in hospitals in the capital, 3 of them still in critical state, according to the Health Ministry. 28 others are under care abroad. Their state will be evaluated by a special committee in order to facilitate their full access to medical services. The committee will also see if the patients abroad still need monitoring, and will assess the needs of the patients within the country. The Health Ministry also evaluates next week a report on infections developed during in-patient care, subsequent to information that three of the victims of the Colectiv fire died from such infections. As of now, the Colectiv incident left 60 dead.



    The Romanian government called for a public debate on the 2016 budget, attended by the ministers of finance, transportation, European funds and agriculture. The selection of the ministers was made in relation to messages received by ministries. This is the first time that the executive holds such a dialog with citizens. More funding is as of now provided for the ministries of defense, interior, education and health, with budgets slashed for the ministries of labor and transportation. Stay tuned for more after the news.



    Romanian Finance Minister Anca Dragu joins today in Brussels her EU counterparts in the Council for Economic and Financial Affairs. The main topics are fighting financing of terrorism and the deposit and insurance scheme in case of bankruptcy. Yesterday, Eurozone finance ministers have decided the base principles of community taxation of financial transactions, which could be applied starting next year. The so-called Obin tax would apply to banks, investment firms, insurance agencies, pension funds and brokers. This tax is supposed to generate annual revenues worth 57 billion Euro.



    US Vice-President Joe Biden, on an official visit to Ukraine, addresses today the Ukrainian Parliament. Yesterday, after meeting President Petro Poroshenko, Biden said that Ukraine has to rid itself of corruption by speeding up reform, increasing transparency at all levels of governance, and strengthening the rule of law. Upon arrival in Ukraine, Biden said that the US would boost its assistance to that country by 200 million dollars, to be used to fight corruption and further reform.