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  • February 10, 2025 UPDATE 3

    February 10, 2025 UPDATE 3

    A roundup of local and international news.

     

    BUCHAREST – Romania’s President Klaus Iohannis resigned on Monday, a day before an impeachment vote in Parliament, demanded by the opposition parties. Iohannis said that the resignation would take effect on February 12 and that he made the decision to step down in a bid to limit the fallout of what he believed would have been a divisive and damaging vote for the nation. At the same time, externally, none of the country’s allies would have understood why Romania was impeaching its president, after, in fact,  the procedure for electing a new president had already started, Iohannis also said. His second term expired on December 21, 2024, but was extended by the Constitutional Court with the annulment of the first round of the presidential elections in November. In keeping with the law, Senate speaker and Liberal leader Ilie Bolojan will assume the role of interim president on Wednesday, until the new president is elected. The interim president of Romania can promulgate laws, request their reexamination by the Constitutional Court, appoint and dismiss ministers and serve as supreme commander of the Armed Forces. However, he cannot dissolve Parliament, initiate a referendum and appoint another prime minister.

     

    REACTIONS – The opposition parties in the Bucharest Parliament, which had initiated the procedure to impeach outgoing President Klaus Iohannis, welcomed the latter’s decision to resign. MP Dan Tanasa, with the Alliance for the Union of Romanians (AUR) said that Iohannis was in office illegally and that the Romanians no longer wanted him. Also from the opposition, the head of the Save Romania Union (USR), Elena Lasconi, said that the president’s resignation does not offer answers regarding the annulment of last year’s election and that, thorough changes are further needed in the relation between citizens and the state institutions. Representing the governing coalition, the Liberal mayor of Cluj-Napoca, Emil Boc, said that resignation is preferable to impeachment, which would have complicated both the domestic political scene and Romania’s credibility abroad. The Social Democratic mayor of Craiova, Olguţa Vasilescu, pointed out that, as regards the presidential elections, the ruling coalition’s candidate continues to be the former Liberal leader Crin Antonescu. The latter said that Klaus Iohannis’ resignation was a wise decision as it pre-empted the impeachment bid and a referendum. Senate speaker Ilie Bolojan, head of the Liberal Party, a member of the ruling coalition, will take over as interim president with limited powers until the election.

     

    INVESTIGATION – Five people were taken in for questioning following the 15 house searches that Romanian police carried out on Monday in Ilfov, Prahova, Buzau and Arges counties, in the case of the conflict in Urziceni, not far from the capital Bucharest, in which two people died. Also, after a series of searches carried out Monday in Brasov county, another nine people were taken to the police station for questioning. Interior Minister Catalin Predoiu signaled the fact that the involvement of several state structures was needed to combat organized crime and dismantle crime groups. He said that although hundreds of organized crime groups have been dismantled in recent years, they are regenerating, and solving this problem may take years. We remind you that, at the end of last week, two people died and five were injured, following a shooting incident involving over 25 people, members of two families in Urziceni and Prahova.

     

    ECONOMY – An International Monetary Fund delegation concluded its discussions in Bucharest with the main institutions in charge of Romania’s monetary and fiscal policies. It was not an assessment mission, but only a fact-finding one, and PM Marcel Ciolacu assured the IMF experts of the government’s determination to comply with the budget deficit target of 7% of the GDP and to implement the reforms undertaken in the National Recovery and Resilience Plan. The IMF made public its latest forecasts regarding the Romanian economy last autumn, when it estimated a 7% deficit for the end of 2025, the same as predicted by the government. However, the IMF’s estimates are more optimistic both as regards the economic growth rate and the inflation. In turn, World Bank officials welcomed the government’s reform plan and the attention paid to investments, noting that Romania is a strong and resilient partner.

     

    SUPERMARKETS –  PM Marcel Ciolacu said legislation should be introduced so that all products in major stores should have the same mark-ups. One day ahead of a boycott on supermarkets announced for Monday by the supporters of the former presidential candidate Călin Georgescu, PM Ciolacu presented, in an online post, the Romanian products he had bought. Roughly 800,000 Romanians work in the over 4,500 large stores in the country, and the taxes paid by such chains account for 13% of the revenues to the state budget. Moreover, according to data from the agriculture ministry, 70% of the products in retail stores in Romania are made in Romania. Early this month, customers in several Balkan countries joined a large-scale boycott on supermarkets, amid rising food prices. The protests that started in Croatia have spread to Bosnia, Montenegro and Serbia.

     

    KOSOVO – Kosovo’s left-wing nationalist PM Albin Kurti claimed victory in Sunday’s parliamentary elections, saying he was optimistic about forming a new government. Unlike in the previous term, however, his party will not be able to form a parliamentary majority on its own. Kurti and other Kosovo party leaders have made it clear that they have no intention of working together, making it unclear how a ruling coalition could be formed in Pristina.

     

     

     

  • February 10, 2025

    February 10, 2025

    PRESIDENT A third request to impeach president Klaus Iohannis may be analysed today by the leaders of the Romanian parliament in a joint meeting of the two chambers’ standing bureaus. The request is signed by 178 MPs, most of them from the self-proclaimed sovereigntist opposition (the Young People’s Party, AUR and SOS Romania) but there are also 26 signatories from the pro-EU Save Romania Union. Under the Constitution, the president can be removed from office only with a majority of the votes of senators and deputies, and only if the president breaches the Constitution. A total of 234 votes are needed, which the opposition does not have. On the other hand, the presidential candidate of the ruling coalition, the former Liberal leader Crin Antonescu, admitted that the coalition leaders could have a meeting with president Iohannis today, concerning the opposition’s impeachment attempt. In an interview on the public television station, Antonescu said that the meeting was not announced publicly and that the president may decide to step down. Mr. Iohannis has announced twice so far that he did not intend to resign. On December 21, his second and last five-year presidential term under the Constitution came to an end, but his term was extended until a new head of state has been elected and validated by the Constitutional Court.

     

    BUDGET President Klaus Iohannis Monday signed into law the 2025 state budget and social security budget bills. These were endorsed last week by the joint chambers of Parliament. The budget is based on a 2.5% economic growth rate and a budget deficit of 7% of GDP. The finance minister Tanczos Barna stated in the joint parliament meeting that the 2025 state budget is ‘modest’ and is based on a prudent increase in revenues, ‘without exaggeration’. He also pointed out that the social security budget law provides ‘primarily for pension payments’.

     

    SUPERMARKETS PM Marcel Ciolacu said legislation should be introduced so that all products in major stores should have the same mark-ups. One day ahead of a boycott on supermarkets announced for today by the supporters of the former presidential candidate Călin Georgescu, PM Ciolacu presented in an online post the Romanian products he had bought. Roughly 800,000 Romanians work in the over 4,500 large stores in the country, and the taxes paid by such chains account for 13% of the revenues to the state budget. Moreover, according to data from the agriculture ministry, 70% of the products in retail stores in Romania are made in Romania. Early this month, customers in several Balkan countries joined a large-scale boycott on supermarkets, amid rising food prices. The protests that started in Croatia have spread to Bosnia, Montenegro and Serbia.

     

    ECONOMY An International Monetary Fund delegation concluded its discussions in Bucharest with the main institutions in charge of Romania’s monetary and fiscal policies. It was not an assessment mission, but only fact-finding one, and PM Marcel Ciolacu assured the IMF experts of the government’s determination to comply with the budget deficit target of 7% of the GDP and to implement the reforms undertaken in the National Recovery and Resilience Plan. The IMF made public its latest forecasts regarding the Romanian economy last autumn, when it estimated a 7% deficit for the end of 2025, the same as predicted by the Government. However, the Fund’s estimates are more optimistic both as regards the economic growth rate and the inflation. In turn, World Bank officials welcomed the government’s reform plan and the attention paid to investments, noting that Romania is a strong and resilient partner.

     

    POLICE Romanian police are still searching for the attackers involved in Saturday’s violent incident in Urziceni (not far from Bucharest), in which 2 people were killed and 5 others wounded. On Sunday, police found several weapons buried in a courtyard in the town, including a hunting rifle, a pistol with non-lethal ammunition and a belt with 5 cartridges. According to initial reports, the conflict broke out between members of two clans, and the reason is said to be related to the relationship between two youngsters. Over 25 people were involved in the clash.

     

    KOSOVO Kosovo’s left-wing nationalist PM Albin Kurti claimed victory in Sunday’s parliamentary elections, saying he was optimistic about forming a new government. Unlike in the previous term, however, his party will not be able to form a parliamentary majority on its own. Kurti and other Kosovo party leaders have made it clear that they have no intention of working together, making it unclear how a ruling coalition could be formed in Pristina. (AMP)

  • February 8, 2025 UPDATE

    February 8, 2025 UPDATE

    A roundup of local and international news.

     

     

    SIE – The Foreign Intelligence Service (SIE) has significantly contributed to meeting the national strategic objectives and honoring the commitments made by Romania within allied and European formats, President Klaus Iohannis said on Saturday, in his message on the 35th anniversary of SIE. According to the President, the information supplied by SIE on national security matters has been critical in making decisions for the Romanian state and in handling the increasingly complex security challenges, as part of the efforts to turn Romania into a resilient state, able to face diffuse and unpredictable challenges. Among others, Russia’s illegal war in Ukraine and its subversive hybrid actions in Romania and across Europe, the persistence of classic security risks, such as cyber, terrorism and hostile information activities, have continued to generate national and international security challenges and to shape the activity of the SIE, along with that of other institutions part of the National Security System, the President explained. He also said it is vital to strengthen inter-institutional cooperation and the one with external partners, in order to increase the Romanian state’s capacity to respond effectively to multiple security challenges, with an emphasis on hybrid threats.

     

    IMF- The International Monetary Fund (IMF) mission in Bucharest concluded talks with representatives of the main institutions responsible for Romania’s monetary and fiscal policies. Prime Minister Marcel Ciolacu told the IMF experts that the Romanian Government is committed to comply with the budget deficit of 7% of the Gross Domestic Product and to implement the reforms assumed under the Recovery and Resilience Plan. Last fall, the IMF published its latest forecast on the Romanian economy, estimating a deficit at the same level as the one set by the government, 7%, for the end of 2025. The IMF estimates are more optimistic both in terms of economic growth, 3.3%, compared to only 2.5% expected by the authorities in Bucharest, and inflation, calculated at 3.6%, below the 4.4% target set by the government.

     

    WAGES – Romania, Lithuania, Bulgaria and Poland, from January 2015 to January 2025, had the highest average annual rate of increase in the minimum wage in the EU, Euronews reports. They reported increases between 10% and 14%, according to Eurostat data. On the other hand, the lowest average annual rate of increase in the minimum wage in the EU was in France (2.1%) and Malta (2.9%). 22 of the 27 EU member states have established a national minimum wage, the exceptions being Denmark, Italy, Austria, Finland and Sweden. The monthly minimum wage varies significantly across EU member states. Thus, Luxembourg, Ireland, the Netherlands, Germany, Belgium and France are the countries where the minimum wage exceeds 1,500 euros per month, while Croatia, Greece, Malta, Estonia, the Czech Republic, Slovakia, Romania, Latvia, Hungary and Bulgaria have the lowest minimum wage, below 1,000 euros per month.

     

    INVICTUS – A team of soldiers will represent Romania at this year’s Invictus Games Vancouver and Whistler 2025. The Invictus Games is an international sports competition that was first held in 2014 and aims to raise awareness about the gratitude we owe to the wounded soldiers. This year’s event will take place from February 8-16 in Vancouver and Whistler, Canada, and will bring together over 500 competitors from 23 nations around the world. The delegation that will accompany the Romanian team to Canada will be led by the Director of the Defence Staff, Major General Valentin Brînzei.

     

    DISCONNECTION – More than three decades after the collapse of the Soviet Union, Estonia, Latvia and Lithuania have begun to disconnect from Russia’s electricity grid and join the EU’s grid. The two-day process began on Saturday morning, with residents told to charge their devices, stock up on food and water and prepare for severe weather, Reuters reports. A giant, specially built clock will count down the final seconds before the transition, at a landmark ceremony in the Lithuanian capital on Sunday, attended by EU chief Ursula von der Leyen. The three Baltic nations will then officially disconnect from the grid that has connected them to Russia since the years after World War II.

     

    TENNIS – Romanian tennis player Gabriela Ruse suceeded to reach the main singles draw of the WTA 1,000 tournament in Doha (Qatar) after defeating Australian Daria Saville 6-3, 6-4, on Saturday, in the final round of the qualifiers. Ruse (aged 27, 112 WTA), who in the first round defeated the American Taylor Townsend (28 years old, 81 WTA), with 6-3, 6-7 (4/7), 6-2, also defeated Saville in 2022, in the first round at the US Open. Gabriela Ruse will be the only Romanian representative on the main draw of the competition in Qatar, held on February 9 to 15. In Cluj-Napoca (north-west Romania), Russian Anastasia Potapova and Italian Lucia Bronzetti qualified on Saturday for the final of the Transylvania Open (WTA 250). Potapova, the main favorite, defeated Belarusian Aleksandra Sasnovici, 6-3, 7-5 in the semifinal. In the other semifinal, Bronzetti took advantage of the withdrawal of Czech Katerina Siniakova.

     

  • February 7, 2025 UPDATE 1

    February 7, 2025 UPDATE 1

    INVESTIGATION – The Romanian Prime Minister’s inquiry corps has uncovered irregularities and evidence of negligence in the organization of the exhibition at the Drents Museum in Assen, where Dacian treasure items were stolen. The report, which was submitted to the Prosecutor General’s Office, shows that the National Museum of History of Romania and the Ministry of Culture accepted less rigorous security measures than those established for the exhibitions in Madrid and Rome, such as the lack of permanent security. Another irregularity refers to the fact that the exhibition did not have the approval of the Museum’s Board of Directors, as required by the regulations in force, and the loan contract was not concluded in authentic format. In addition, the insurance value of the goods exhibited in the Netherlands was the last to be established, and for certain items the assessment was based on a revaluation carried out 14 years ago. According to Dutch Police, hundreds of tips have been received in connection to the heist, mostly information about the locations where the suspects were seen after the robbery and the people they met with. Dutch law enforcement has arrested three suspects last week, two men and a woman, who refused to say where the stolen objects were. All three suspects are still in custody. Dutch art detective Arthur Brand believes there is a 50% chance that the thieves have already melted down the artifacts (a helmet and three bracelets, all heritage items), for their corresponding gold value.

     

    IMF – Maintaining macroeconomic stability and investments, in addition to continuing reforms are among the priorities of the Romanian government for this year, Prime Minister Marcel Ciolacu said during Friday’s meeting with the IMF delegation in Bucharest. During the talks, the Romanian Prime Minister underlined the government’s commitment to observing the 7% budget deficit target and continuing the trend of reducing the deficit over the coming years, in line with the fiscal plan agreed jointly with representatives of the European Commission. In this context, Marcel Ciolacu highlighted measures designed to cut personnel spending in the public sector, restructure the state budget and operate a territorial-administrative reorganization as the government’s top priorities for the coming period. IMF experts also discussed with officials of the National Bank of Romania, including Governor Mugur Isărescu. The IMF delegation did not call on Romania to take drastic financial measures, introduce tax increases or other austerity measures, Finance Minister Tánczos Barna in turn gave assurances after meeting on Thursday with the new IMF head of mission to Romania, Joong Shik Kang. At present, Romania has no standing agreement with the IMF, although the international lender conducts annual assessments of Romanian economy based on consultations, which is a mandatory oversight requirement applied to all IMF members. (VP)

  • February 7, 2025

    February 7, 2025

    GDP Romania has overcome Poland in terms of the GDP per capita against purchasing power says a survey conducted by experts with the Romanian Academy of Economic Studies in Bucharest. According to the same sources, Romania is also ahead other economies in the region, such as Hungary, Croatia or Greece and the nominal GDP per capita has risen by 11% in the past five years, exceeding 80% of the EU average. We’ll be having more on this after the news

    WAGES According to the latest economic forecasts of the European Commission in Romania wages will moderately increase in 2025 and 2026. The European Commission has based its forecasts on the already significant increases in the minimum wages already made by the government in Bucharest, the lower inflation and the labour market relaxation, which is expected to reduce the unemployment rate. European Commission experts are expecting price hikes in energy and food to significantly decrease. The inflation rate is expected to drop down to the Central Bank’s target of 2.5% towards the end of 2026.

    THEFT The Dutch police have announced they have received hundreds of hints regarding the theft of the precious Romanian artefacts from the Drents Museum in Assen. Many of these are about the places where the suspects have been seen and their contacts. The police last week apprehended three suspects, two men and a woman who refused to say where the stolen objects are stashed. All the three suspects are still in police custody. Art detective, Arthur Brand says there is 50% risk the suspects have already melted the golden artefacts: an ancient helmet and three bracelets dating back to the old kingdom of Dacia, 25 hundred years ago, which had been loaned out by the National History Museum in Bucharest.

    VISIT The head of the US diplomacy, Marco Rubio, will be travelling to Israel and several Arab countries in mid-February, the US Department of State has announced. This would be Rubio’s first trip as a Secretary of State to the region after the US President, Donald Trump’s statement on resettling the Palestinians outside the Gaza Strip under US monitoring. Trump’s resettlement idea has prompted a series of accusations that he is planning ethnic cleansing and has drawn condemnation from the UN, human rights groups and Arab leaders. Rubio insists that Donald Trump proposed the reconstruction of the aforementioned territory, which at present offers improper dwelling conditions. According to AFP, Rubio will be participating in the Security Conference in Munich and is going on a Middle East tour, which will take him to Israel, the United Arab Emirates, Qatar and Saudi Arabia over February 13 and 18.

    IMF Romania’s Prime Minister, Marcel Ciolacu, is meeting an IMF team, whose four days trip to Bucharest ends today. The IMF experts are having talks with Central Bank officials, including governor Isarescu. The IMF delegation hasn’t called for strict financial measures, like tax hikes or other austerity measures, Finance Minister Tanczos Barna says. Barna met the new head of the IMF mission to Romania, Joong Shik Kang on Thursday. At present Romania doesn’t have an IMF funding agreement underway, but the institution is presently monitoring Romania’s economy, under Article Four, which provides for a mandatory monitoring exercise involving all member states. The consultations’ main purpose was financial and economic assessment at national level as well as recommendations concerning monetary, financial and economic policies with a view to achieving economic stability and development.

    (bill)

     

  • February 3, 2025 UPDATE 2

    February 3, 2025 UPDATE 2

    Defense – Europe must assume greater responsibility for its own defense in order to strengthen our strategic resilience, said President Klaus Iohannis, present, on Monday, in Brussels, at the informal meeting of EU leaders on defense issues. The discussions focused on military capabilities and the European defense industry. President Iohannis evoked, in this sense, the need for adequate financing seen not only as the allocation of more money, but also as the effective use of the already existing tools. Regarding defense, Romania’s president emphasized the need for complementarity between the European Union and NATO.

     

    EU funds – Attracting European funds for financing social projects for the benefit of the Romanian citizens, for protecting the rights and increasing the skills of Romanian workers are the topics tackled during Monday’s meeting between Prime Minister Marcel Ciolacu and Roxana Mînzatu, the executive vice-president of the European Commission, responsible for social rights, skills, quality jobs and training. Visiting Bucharest on Monday and Tuesday, in her first official visit in this capacity, Roxana Mînzatu emphasized the openness to support the Romanian administration in attracting as many European funds as possible. During the talks, the two officials also referred to the debate taking place at the European level regarding the Consolidation of EU emergency preparedness. In this context, the head of the Romanian government mentioned that Bucharest must be part of this debate, considering the contribution that Romanian specialists have in managing such situations, like fires and floods. On Tuesday, Roxana Mînzatu will meet with president Klaus Iohannis and will have talks with the speakers of the Senate and of the Chamber of Deputies, Ilie Bolojan, and Ciprian Şerban respectively.

     

    Meeting – The Romanian Interior Minister, Cătălin Predoiu, had an official meeting with his Bulgarian counterpart, Daniel Mitov, on the occasion of the official launching ceremony of the joint patrols at the Bulgarian-Turkish border together with the counterparts from Bulgaria, Hungary and representatives of the management of the Austrian Federal Ministry of the Interior. According to an Interior Ministry press release, published on Monday, they tackled the issue of the bilateral commitment to work together in addressing the challenges of cross-border crime, for the protection of the external borders of the EU and of the common one. The most important aspects of the Romanian-Bulgarian cooperation in the field of Internal Affairs were reviewed, with an emphasis on the latest developments recorded after the lifting of internal border controls on January 1, 2025. Cătălin Predoiu was decorated by the Bulgarian minister with the Badge of Honor “Value and Merit” of the Bulgarian Interior Ministry, for special merits in the development and consolidation of cooperation in the field of security and internal affairs. He is the first Romanian Interior Minister to receive this distinction.

     

    Budget – Romania’s 2025 budget bill will enter Parliament’s debate as of Tuesday, and the final vote is expected to take place by the end of the week. The vote is predictable as the parliamentarians of the ruling coalition (PSD-PNL-UDMR) have the majority. However, the document met with much criticism from the opposition parties, which submitted over 1,000 amendments. Adopted by the government at the end of last week, Romania’s budget bill for 2025 is based on an economic growth of 2.5%, an average inflation rate of 4.4% and a deficit of 7% of the GDP. According to the Finance Minister, Tanczos Barna, the budget focuses on investments, with record allocations of 150 billion lei (about 30 billion Euros).

     

    IMF – An International Monetary Fund mission is paying a visit to Bucharest, between February 3-7. The IMF team will meet with representatives of the new Romanian Government and the National Bank of Romania to analyze recent financial and economic developments and update macroeconomic perspectives. Currently, Romania does not have a financing agreement with the International Monetary Fund, but the financial institution annually evaluates the evolution of the Romanian economy, based on consultations on Article IV, which represents a mandatory surveillance exercise for all member states. The purpose of the consultations is to examine the financial and economic situation at the national level and formulate some general recommendations regarding monetary policies, financial and economic policies to be followed so as to ensure stability and a positive evolution of the economy.

     

    Investigation – The prosecutors from the Directorate for Fighting Organized Crime (DIICOT) carried out, on Monday, dozens of searches in Romania and Monaco, in a case involving fraud with particularly serious consequences, embezzlement, money laundering and tax evasion, related to what the press called the Nordis real estate business. The investigations targeted a number of about 70 suspects, natural and legal persons. Among the people interviewed are Laura Vicol, former head of the Legal Commission in the Chamber of Deputies, and Ioana Băsescu, the daughter of the former president of Romania, Traian Băsescu, who was called at the DIICOT headquarters to give explanations regarding her involvement as a notary in the Nordis business. Starting in 2018, three of the suspects allegedly initiated and set up an organized criminal group, which conceived and implemented a complex criminal mechanism, consisting, mainly, in the promotion and development of real estate projects under the cover of several commercial companies, followed by collecting money from clients, misleading buyers during the execution of pre-contracts and sale-purchase contracts. The leaders of the organized criminal group are said to have collected over 957,000,000 lei (over 195 million Euros) from customers as an advance payment within the framework of bilateral sale-purchase promises, respectively sales-purchase agreements. (LS)

     

  • February 3, 2025

    February 3, 2025

    A roundup of local and international news.

     

    DEFENSE – Europe must assume greater responsibility for its own defense in order to strengthen our strategic resilience, President Klaus Iohannis has said. The Romanian head of state is participating in an informal meeting of EU leaders on defense issues, held in Brussels today. The talks focus on military capabilities and the European defense industry. President Iohannis mentioned in this respect the need for adequate financing, regarded not only as an allocation of more money, but also as an efficient use of the instruments we already have. Regarding defense, the Romanian president emphasized the need for complementarity between the European Union and NATO. The meeting will also address issues regarding the importance of the transatlantic relationship and the Strategic Partnership between the EU and the US, the relationship between the EU and the United Kingdom, and the European Union’s defense partnerships. The debates also aim to identify basic principles needed for the development and adoption of a programmatic document related to the future of European defense – the ‘White Paper’, which is to be developed in the first part of 2025 by the European Commission.

     

    BUDGET – Romania’s 2025 draft budget is in Parliament, to be debated in an emergency procedure. The debates and the endorsement are given as sure, with the MPs of the PSD-PNL-UDMR coalition forming the majority. Passed by the Government at the end of last week, Romania’s 2025 draft budget is built on an economic growth rate of 2.5%, an average inflation rate of 4.4% and a deficit of 7% of GDP. According to the Minister of Finance, Tanczos Barna, the budget prioritizes investments, with record allocations of 150 billion lei (about 30 billion euros).

     

    EU – Attracting European funds to finance social projects for the Romanian citizens, protecting the rights and increasing the skills of workers in Romania are the topics of today’s meeting between Prime Minister Marcel Ciolacu and Roxana Mînzatu, Executive Vice-President of the European Commission, responsible for social rights, skills, quality jobs and training. Prezent in Bucharest on Monday and Tuesday, during her first official visit in this capacity, Roxana Mînzatu emphasized the openness to supporting the Romanian administration to attract as many European funds as possible. During the discussions, the two officials also referred to the debate taking place at European level on strengthening the EU’s emergency preparedness. In this context, Ciolacu said that Bucharest must be part of this debate, given the contribution that Romanian specialists have in managing such situations, such as fires and floods. On Tuesday, Roxana Mînzatu will meet with President Klaus Iohannis and will have talks with the President of the Senate, Ilie Bolojan, and the President of the Chamber of Deputies, Ciprian Şerban.

     

    IMF – An International Monetary Fund mission is in Bucharest from February 3rd to 7th. The IMF team will meet with representatives of the new Romanian Government and the National Bank of Romania to review recent financial and economic developments and update the macroeconomic outlook. Romania does not currently have a financing agreement with the International Monetary Fund, but the financial institution annually assesses the evolution of the Romanian economy, based on consultations on Article IV, mandatory for all member states. The purpose of the consultations is to examine the financial and economic situation at the national level and to formulate general recommendations regarding monetary, financial and economic policies to be followed, to ensure stability and positive developments in the economy.

     

    UNIONS – The unionists at the Bucharest metro are on a Japanese strike today, to warn passengers and decision-making staff about the situation the company is in. If their demands are not met, on February 10 they will launch other protest actions. The unionists are dissatisfied with the ordinance adopted by the government at the end of last year, which canceled their negotiated salary increases provided for in the Collective Bargaining Agreement signed at the beginning of December 2024, and also with the fact that the company is underfinanced.

     

    CRIME – Prosecutors with the Directorate for Combating Organized Crime and Terrorism are carrying out searches in Romania and Monaco today, in a fraud case that includes embezzlement, money laundering and tax evasion, related to what the press has called the Nordis real estate business. The investigations target around 70 suspects, individuals and legal entities. Starting in 2018, three of the suspects are said to have initiated and constituted an organized crime group, which orchestrated and implemented a complex crime mechanism, consisting mainly of promoting and developing real estate projects under the cover of several commercial companies, followed by collecting sums of money from clients, misleading buyers during the execution of pre-contracts and sale-purchase contracts. The result, prosecutors say, was the unlawful gain of sums of money as reimbursements or refunds from the state budget or compensations due to the general budget, causing damage to commercial companies, purchasing clients and the state budget. The leaders of the organized crime group allegedly collected from clients as advance payment under bilateral sales-purchase promises, respectively sales-purchase contracts, over 195 million euros.

     

     

  • November 5, 2024 UPDATE

    November 5, 2024 UPDATE

    Visit – The European commissioner for agriculture, Janusz Wojciechowski, is paying an official visit to Romania on Wednesday, the EC announced in a statement. The commissioner will participate in the conference themed “Multi-sectoral Pact for an Integrated Agricultural Policy of Romania – objective 2035”. At the same time, the official is a special guest in the EU-Romania Interactive Dialogue on the Future of Agriculture. According to the press release, the commissioner will talk about the perspectives of European farmers in the context of environmental and geo-political challenges and of the EU enlargement. At the same time, he will have an intervention in the plenary session, with the theme “Vision and action for the sustainable transformation of agriculture”. Janusz Wojciechowski was quoted as saying that ‘First of all, it will be an opportunity to thank Romanian farmers for their vital contribution to food security, both in Europe and outside it. In recent years, farmers in Romania have shown remarkable resilience, passing well through a pandemic, through economic recessions and through the energy crisis, besides climate-related challenges,” said commissioner Wojciechowski.

     

    Commissioner – Roxana Mînzatu, proposed for the position of European Commissioner from Romania, received a favorable opinion, on Tuesday, in the specialized commissions of the Romanian Parliament. At the hearings, she stated that the “People, Competences and Training” portfolio, which she will handle, accounts for almost 20% of the EU’s multiannual budget. She mentioned that, as executive vice-president of the European Commission, she will also coordinate the area of ​​preparation for emergency situations. Roxana Mînzatu will be one of the six vice-presidents of the future European Commission, led by Ursula von der Leyen.  Mînzatu aims to make the teaching career more attractive, in a Europe where at least 24 states are facing a crisis of teachers and, at the same time, she wants to improve the Erasmus+ program, considered far too expensive by many Romanian students. On November 12, Roxana Mînzatu will be heard in the specialized commissions of the European Parliament.

     

    IMF – The International Monetary Fund representatives started, on Tuesday, technical talks with the Romanian authorities to analyze the economic and financial developments of Romania in the last period. The delegation will have meetings in particular at the Central Bank and the Finance Ministry. The officials will discuss the evolution of inflation and the economy, the balance of payments, public debt and budget deficit, monetary and fiscal policy. Although Romania currently does not have an agreement with the Fund, the financial institution annually evaluates the country’s economy and makes recommendations. The IMF mission in Romania will end on Friday.

     

    Spain – The Romanian Foreign Ministry (MAE) announced on Tuesday that, according to the information sent by the Spanish authorities, so far, two Romanian citizens have died and seven are reported missing, following the meteorological phenomena that affected Spain. The MAE also informs that the representatives of the Romanian Embassy in Madrid and the Romanian Consulate in Castellon de la Plana remain in permanent contact with the competent Spanish authorities regarding the Romanians affected by the recent meteorological phenomena. At the same time, Romanian citizens can request assistance from the Romanian consulates in the main Spanish cities – the MAE also announced. In Spain, the Madrid government has declared a state of natural disaster in the affected areas and has pledged to cover all the urgent expenses of the affected municipalities. A first emergency plan worth 10.6 billion Euros was adopted, with direct aid and fiscal facilities for citizens and 30,000 companies.

     

    Meeting – The Romanian PM Marcel Ciolacu had a meeting in Bucharest on Tuesday with a delegation of Japanese investors from the fields of energy, research and technology, industry, infrastructure and banking. The head of the executive appreciated the level of bilateral relations, developed on the basis of the Strategic Partnership. He emphasized Romania’s role as a factor of stability in Europe and in the region, as well as the geostrategic, economic and political advantages that qualify it as a destination for investors. The Japanese delegation expressed its interest in strengthening financial support for Romania in projects in the fields of transport infrastructure, energy, digitization and high technology. Previously, during a bilateral Energy Forum that took place in Bucharest, the Romanian Energy Ministry and the Japanese company Itochu Corporation signed a Memorandum of Understanding for the development of the Tarnița-Lăpuștești investment (in central Romania). It is a project of strategic importance for balancing the energy system in Romania, necessary in the context of increasing the share of energy from renewable sources. (LS)

  • October 28, 2024

    October 28, 2024

     

    AGING The population of Romania in mid-2024 was 21,779,000, down 1% compared to June 1, 2023. According to the National Statistics Institute, demographic aging is deepening, with the over-65 age bracket now almost 1 million people larger than the under-14 segment. 55% of the Romanians live in urban communities, but urban-to-rural migration continues, and over 90,000 people moved to the countryside within a year. The number of women is now half a million larger than the number of men, and the national average age is close to 43.

     

    NATURAL GAS Romania has become the EU’s largest natural gas producer, with an output of 2.3 billion cubic metres in Q2, the energy minister Sebastian Burduja announced. According to him, Romania has outperformed the Netherlands, which reported 2.2 billion cubic metres, and compared to last year Romania’s natural gas output was 1% higher. Burduja added that most of the credit for this should go to the Romanian natural gas company, Romgaz, which in the first semester reported a 5% higher gas output than in the corresponding period of last year. The Romanian official explained that Romgaz intends to earmark EUR 120-160 million to increase production. This year alone, the Romanian company started operations with 7 new drilling rigs.

     

    FUELS The average petrol price in Romania has gone up by 3.3% in the past month, to approx. EUR 1.44 per litre in Bucharest. During the same period, average diesel prices rose by 2.3%. Romania has the 7th-lowest petrol prices and the 9th–lowest diesel prices in the European Union.

     

    IMF An IMF mission led by Jan Kees Martijn will be in Bucharest between November 5 and 8, for a review of the latest economic and financial developments and of macroeconomic forecasts. In its latest “World Economic Outlook” report, released recently, the IMF lowered to 1.9% its estimate on Romania’s economic growth rate this year, from the July 2.8% forecast. According to the institution’s latest figures, in 2025 Romania is expected to see a 3.3% economic growth rate.

     

    DEBT According to the Romanian finance ministry, the country’s governmental debt reached approx. EUR 175 bln this July, accounting for 52% of GDP. Romania’s governmental debt is split between domestic debt (roughly EUR 85.7 billion), and foreign debt (approx. EUR 89.5 billion). On the other hand, the budget deficit estimated for 2024 is nearly 8% of GDP. Since 2020, Romania has been subject to an excessive deficit procedure, after in 2019 the country exceeded the 3% of GDP ceiling set under the Stability and Growth Pact. In 2021 the EU Council recommended that Romania bring its deficit below 3% by 2024.

     

    TENNIS The former WTA leader Simona Halep takes on Yue Yuan (China) today, in the first round of the WTA 250 tournament in Hong Kong. This is for the first time that the Romanian player (aged 33, currently no. 869 WTA) plays against Yuan (26, no. 44 WTA). If she wins, Halep is next to take on the winner of the match between Nao Hibino (156 WTA) and Aliaksandra Sasnovich (143 WTA). The main draw of the Hong Kong tournament also includes Romania’s Ana Bogdan (109 WTA), who plays in the first round against Kimberly Birrell of Australia (111 WTA). (AMP)

  • October 22, 2024 UPDATE

    October 22, 2024 UPDATE

    Montenegro – Romania’s President Klaus Iohannis, will pay an official visit to Montenegro on Wednesday, at the invitation of his counterpart Jakov Milatovic. Talks between the two presidents will focus on political-diplomatic and defense cooperation, support for Montenegro’s European path and the main regional and global security challenges. As regards the sectoral areas of cooperation, opportunities for increasing investments and commercial exchanges and boosting contacts in the fields of energy, tourism, agriculture, internal affairs, research, education and culture will be addressed.

     

    Salaries – The Chamber of Deputies adopted, on Tuesday, as a decision-making body, a draft law that ensures a new mechanism for establishing the level of the minimum wage, according to the provisions of a European directive in the field. Employees have access to minimum wage protection, in the form of a legal minimum wage or in the form of decent wages and working conditions established under collective labor contracts, collective agreements or other written agreements. According to the bill, the gross minimum basic salary per country guaranteed in payment is established annually by Government decision and is applied from January 1 of the following year, with periodic updating once a year, after consultations with the representative trade union and employer confederations at the national level. The minimum gross basic salary per country guaranteed, in payment, established by Government decision can be granted to an employee for a maximum period of 24 months, from the date of conclusion of the individual employment contract.

     

    IMF – The International Monetary Fund has revised downwards the estimates regarding the growth of the Romanian economy this year, from 2.8% as forecast in April, shows the latest report published on Tuesday by the international financial institution. According to the IMF, after an increase of 2.1% last year, the advance of the Romanian economy will slow down to 1.9% this year, and will accelerate up to 3.3% in 2025. The institution also expects a continuation of the worsening of Romania’s current account deficit, up to 7.5% of the GDP this year. As regards inflation, the IMF forecasts that Romania will register an average annual price increase of 5.3% this year, followed by a 3.6% increase in 2025. As for the unemployment rate, the IMF estimates that it will remain stable, to 5.6% this year and to 5.4% next year.

     

    Moldova – The Romanian Foreign Ministry hails the organization by the Chisinau authorities, at high democratic standards, of the presidential election and the constitutional referendum of October 20 in the Republic of Moldova. The entry into the second round of the election, with a solid score, of the candidate with the most authentic and deep pro-European commitment, President Maia Sandu, as well as the result of the constitutional referendum, proves, despite the challenges, the citizens’ attachment to the European, democratic future of the Republic of Moldova”, reads a press release. Maia Sandu won the first round of the election and will face the candidate of the Socialist Party, Alexandr Stoianoglo, in the 2nd round. The referendum on the country’s EU accession passed with a difference of less than 12,000 votes. The EU and the White House welcomed the election results, while Moscow, accused of meddling in the election process, denied its interference and said that the elections had not been free.

     

    Loan – The European Parliament approved, on Tuesday, a loan of up to 35 billion Euros to Ukraine, which will be financed from the profits generated by the Russian assets frozen in Europe, AFP reports. The sum represents the EU’s contribution to the assistance package worth almost 45 billion Euros, agreed upon in June by the world’s major economies, gathered in the G7 group. The US, Canada, Great Britain and Japan are yet to decide to what extent they will participate in this loan. According to AFP, Russian assets worth around 280 billion Euros were frozen in the EU following the Russian invasion of Ukraine in February 2022.

     

    Visit – The Romanian Defense Minister, Angel Tîlvăr, is paying a working visit to Turkey, in Istanbul, between October 22-24, at the invitation of his counterpart, Yaşar Guler. The two officials will have a bilateral meeting, during which they will discuss the results recorded since the implementation of the MCM Black Sea project and the necessary steps to follow in the creation of the military mobility corridor between Bulgaria, Romania and Turkey, according to the Letter of Intent signed last week at Meeting of NATO defense ministers in Brussels. On the sidelines of the visit, minister Angel Tîlvăr had a meeting with Haluk Gorgun, the president of the Defense Industry Agency (SSB) and participated in the SAHA EXPO 2024 International Defense and Aerospace Exhibition, a reference event in the field of defense and the aerospace industry organized at the Center Exhibition in Yeşilkoy, Istanbul.

  • July 16, 2024 UPDATE

    July 16, 2024 UPDATE

    Weather – Romania is under a code red alert for extreme heat, extended in almost the entire country until Thursday, except for 11 counties in the northern half that are under a code orange alert for extreme heat. Highs of 42 degrees C are announced, and the lows will not drop below 22 degrees Celsius. Thermal discomfort will be particularly intensified, and the temperature-humidity index (ITU) will exceed the critical threshold of 80 units. The sky will be variable. There will be periods of atmospheric instability, at first in the mountainous areas, then locally and in the northern half, and only in isolated areas possibly in the rest of the territory. There will be temporary, increased cloudiness, showers that will turn into torrential rains, frequent electrical discharges and wind gusts of 50…70 km/h.

     

    EP – The new European Parliament started its activity on Tuesday. The first plenary session takes place in Strasbourg and, according to the agenda, MEPs have three days to choose their president, vice-presidents and the makeup of the specialized committees. On Thursday, the MEPs will vote on the renewal of Ursula von der Leyen’s mandate as president of the European Commission. To be re-elected, Ursula von der Leyen, who already has the support of the heads of state and government from the EU member countries, needs the votes of at least 361 MEPs. The European People’s Party, which she is a member of, is still the first political force in the European Parliament, having 188 elected members after the June elections. The Social Democrats obtained 136 seats, and the liberals from Renew, 77 seats. The grand coalition that traditionally brings together these three parties would thus provide enough votes to ensure Ursula von der Leyen’s re-election, but, as in the case of the 2019 vote, it is not certain that all the MPs of the majority coalition will vote for her, so she is also looking for support from the Greens. On Tuesday, Roberta Metsola secured, with broad support, a new mandate as president of the European Parliament, thus leading the EP for another two and a half years. Ms Metsola’s appointment was approved by a large majority of MEPs. The Romanian MEPs, Victor Negrescu, from the Social Democrats and Nicolae Ştefănuţă, supported by the Greens were elected vice-presidents of the EP. There is a total number of 14 vice-president posts.

     

    Tennis – The Romanian tennis player Irina Begu qualified for the round of 16 of the WTA 250 tournament in Palermo (Italy), with total prizes up for grabs worth 232,244 Euros, after defeating the Spanish Marina Bassols Ribera 6-0, 6-0. Begu won in just 58 minutes. In the second round, she will meet the Italian Martina Trevisan or the Dutch Arantxa Rus, seed no. 5. The Romanian Jaqueline Cristian is also on the singles table from Sicily, seed no. 7, and she will play in the first round against the Argentinean Julia Riera.

     

    IMF – The International Monetary Fund (IMF) has maintained its estimates that the world economy will register an advance of 3.2% this year, amid improved growth forecasts for China and India, according to the latest update of the “World Economic Outlook” report, published on Tuesday. At the same time, the IMF slightly improved its growth estimates for 2025, when the world economy is expected to register an advance of 3.3%, 0.1% more than the previous forecast. The forecasts for emerging Europe (a region where Romania is included) were also improved by 0.1%, up to an advance of 3.2% this year. The most recent forecasts of the IMF for Romania date back to April, when the international financial institution estimated that the Romanian economy would grow at 2.8% this year, accelerating to 3.6% in 2025.

     

    Chişinău – The acting president of the Republic of Moldova (with a majority Romanian speaking population), Maia Sandu, is the favorite in the presidential election due in October, shows a new opinion survey published in Chişinău. Maia Sandu – of pro-European orientation – would obtain 34% of the votes, while her political rival, the former president of the state, the socialist Igor Dodon, of pro-Russian orientation, would gather 18% of the votes, according to the survey. Regarding the EU accession referendum, which will take place on the same day as the presidential election, 53% of the respondents plan to vote “Yes”. (LS)

  • The IMF reviews Romania’s economic growth

    The IMF reviews Romania’s economic growth

    The International Monetary Fund revised downwards the estimates regarding the growth of the Romanian economy this year, from 3.8%, as it estimated in October, to 2.8% – shows the latest report of the international financial institution, made public on Tuesday, in Washington. As regards the world economy, the International Monetary Fund announced that it would grow a little more than expected, by 3.2 percent, but warned the central banks against reducing the reference interest rates too quickly. According to the international financial institution, the escalation of the conflict in the Middle East risks leading to an increase in energy and food prices. Returning to Romania, the country will register this year, the IMF estimates, an average annual inflation rate of 6% and 4% in 2025. In October, the IMF estimated for Romania an average annual inflation increase of 5.8% in 2024. Recently, the National Bank decided to maintain the monetary policy interest rate at the level of 7%, the highest in Europe. The annual inflation rate will continue to drop in the coming months, the Central Bank claims, at a slower pace as compared to last year and on a slightly higher trajectory than anticipated.

     

    According to the National Bank, the risks arising from the future conduct of the fiscal and revenue policy are amplified in the short term by the result of the budget execution in the first two months of the year, as well as by the wage dynamics in the public sector and the consequences of the new pension law. As for the current account deficit, the IMF expects it to remain at 7.1% of the GDP this year, similar to the level forecast in October and the level reported last year. For 2025, the international financial institution predicts a slight reduction of the indicator in Romania. Regarding the unemployment rate, the IMF estimates a level of 5.6% this year, similar to that of last year.

     

    An IMF mission was in Bucharest in January to analyze the country’s economic and financial developments and to review macroeconomic forecasts. The Fund’s mission’s then consultations included numerous meetings with the Romanian authorities, and the discussions also approached the recalculation of pensions. At the end of the visit, Jan Kees Martijn, who led the mission, concluded that economic growth slowed in 2023, primarily due to weaker consumption. Core and headline inflation dipped into single digits in the second half of 2023, while the monetary policy interest rate was kept cautiously on hold. Although the current account deficit remains high, it has dropped to around 7% of the GDP due to slower domestic demand and low prices for imported goods. Currently, Bucharest does not have a financing agreement running with the IMF, but the international financial institution’s representatives periodically carry out missions in all member states. (LS)

  • January 30, 2024 UPDATE

    January 30, 2024 UPDATE

    Tribute. Romanias president, Klaus Iohannis, will be in Brussels on Wednesday and Thursday for a ceremony paying tribute to Jaques Delors (1925-2023), former European Commission president over 1985-1995, and for a special meeting of the European Council. The main topic on Thursdays agenda is securing consensus at community level over the main elements in the package set to reform the Multiannual Financial Framework 2021-2027. The most anticipated decisions regard support for Ukraine at all levels, including military assistance via the European Peace Facility, in line with Ukraines specific needs. President Iohannis will firmly argue in favor of Ukraine remaining a top priority on the EU agenda.



    IMF. A special IMF delegation led by Jan Kees Martijn is in Bucharest to conduct a new assessment of the Romanian economy. The mission takes places four months after the previous visit and has an advisory role. The IMF estimates a 2.3% economic growth for Romania this year and a budget deficit of 6% of the GDP. IMF experts have urged Bucharest to implement additional reforms, particularly in the field of taxation. Last autumn, the IMF argued that Romanian authorities should first and foremost seek to eliminate tax exemptions and privileges, implement more efficient VAT-related measures, reform property taxes and encourage the transition to a carbon-neutral economy. Romania has no standing agreement with the IMF at present.



    Trains. On Tuesday, the Romanian Transport Ministry signed a 640-mln-EUR contract for the purchase of 62 new electric short-track trains. The contract was signed with the Polish manufacturer PESA, the same company expected to deliver 20 long-track trains in early 2026, as per the contract signed in December 2023. The trains will enter circulation on the main electric rails or segments that underwent modernization works in western and northwestern Romania. Romania has purchased another 37 electric trains from Alstom, France. On Monday, the Transport Ministry signed a contract with the French company worth 150 mln EUR, for the purchase of 16 new electric engines, with money from the fund of the National Recovery and Resilience Plan.



    Aurescu. Romanian President Klaus Iohannis signed, on Tuesday, the decree for the release of Bogdan Aurescu from the position of presidential advisor as of February 1. On November 9, 2023, the UN General Assembly and Security Council elected Bogdan Aurescu as a judge of the UN International Court of Justice (ICJ) for a term beginning on February 6, 2024. The ICJ, based in The Hague, is the main judicial body of the UN, being the most prestigious and respected international court. The ICJ was established in 1945, based on the UN Charter. It is made up of 15 permanent judges, elected for a term of 9 years, with the possibility of being re-elected, who meet the conditions required for the exercise of the highest judicial positions in their countries of origin or who are jurists with a recognized competence in the field of international law. The 15 judges are chosen in such a way as to ensure the representation of the main forms of civilization and the main legal systems of the world.



    CPI. The 2023 Corruption Perception Index, published by Transparency International, shows that most countries have reported little to no progress in combating corruption in the public sector. The EU as a whole is either flat or showing signs of decline in this respect. The EU average in the last five years stood at 64. With a score of 46, Romania remains one of the underperformers at EU level, alongside Bulgaria (45) and Hungary (42), which reflects a dysfunctional rule of law. In several countries, including Romania, there are huge gaps between legal provisions and the way they are enforced, the document states. With respect to Romania, Transparency International recommends updating legislation in the field of public integrity, improving organizational and decision-making transparency, including through efficient public consultations and improving access to public information.



    Protest. Farmers protests continue across Europe against the current environmental policies, fuel excises and unfair competition. In France, farmers have blocked the main motorways in and out of Paris and other large cities, warning they wont leave unless their demands are met. President Emmanuel Macron is expected to present a number of proposals on the sidelines of the European Council summit in Brussels on Thursday. Paris has accused some EU partners such as Spain or Italy of “unfair competition”, France Presse and EFE report. Also German farmers blocked on Monday access roads on several segments across the country, particularly in the Hamburg region, disgruntled with the governments decision to scrap diesel tax breaks. Farmers protests have also been reported in Greece and North Macedonia.



    Championship. A total of eight athletes will represent Romania at the World Aquatics Championships hosted by Doha over February 2-18, five in swimming events and three in diving. The big absentee is swimmer David Popovici, European champion in the 100m and 200m freestyle events. Constantin Popovici, the defending high diving world champion, and Cătălin Preda, world vice-champion, will lead the Romanian delegation. (MI)

  • January 29, 2024 UPDATE

    January 29, 2024 UPDATE

    PUTIN The incumbent president
    of Russia, Vladimir Putin, is running for another term in office in the
    presidential election due over March 15 and 17, the Central Election Committee
    has been quoted by the Russian and international press agencies as saying.
    According to these sources, both the supporters and opponents of the Kremlin
    leader are expecting him to win a new 6-year mandate. If Putin completed this
    mandate he could become the longest-lived Russian leader since the 18th
    century. A former agent of the Soviet political police, the KGB, and former
    Prime Minister, Putin got his first mandate as a president in 2000, a
    designated successor of Russia’s post-soviet president Boris Yeltsin. In 2008,
    when the Constitution didn’t allow him a third consecutive mandate, he formally
    ceded his seat to Dmitri Medvedev, but he remained the strongman of the Russian
    politics. Since the amended Constitution of 2012 Vladimir Putin has
    uninterruptedly held the presidential seat of the Russian Federation. His
    regime has been marked by the bloody reprisals against the breakaway
    insurrection in Chechnya, the elimination of his domestic opposition, the
    invasion of Georgia in 2008 and Ukraine in 2022.




    ORDINANCE Romanian Prime Minister Marcel Ciolacu on Monday announced
    that he decided to extend for another 60 days the ordinance on capping trade
    mark-ups in basic staple. Ciolacu says that according to data released by the
    National Institute for Statistics, prices in December 2023 were 5.8% higher
    than a year before, whereas before the introduction of the aforementioned
    measure, the difference in prices between June 2023 and June 2022 was nearly
    18%.




    FUNDS The
    Romanian Foreign Ministry on Monday voiced maximum concern about the latest
    severe accusations regarding the alleged involvement of some of the personnel
    of the UN Agency for Relief and Works for Palestinian Refugees (UNRWA) in the
    Hamas terrorist attacks on Israel on October 7th. The Romanian
    Ministry says that until the completion of the investigation into the
    aforementioned allegations it will not release new procedures for volunteer
    contributions to the UNRWA. The Ministry recalls that Romania has firmly
    condemned the terrorist attacks on October 7th and voiced regret for
    the victims, the hostages taken, and made an appeal for their release. We
    recall that several countries, including the USA, Canada, the UK, Italy and Germany
    have suspended their funding to the UNRWA until the completion of the
    investigation into the aforementioned allegations.




    IMF An
    International Monetary Fund mission headed by Jan Kees Martijn arrived in
    Bucharest on Monday to review the latest economic and financial developments.
    This is a regular consultation based on Romania’s relation with the IMF, and it
    comes 4 months after the previous visit. The IMF expects a budget deficit of 6%
    of GDP and an economic growth rate of 2.3% this year. IMF experts also
    recommend a number of additional reforms, and in the previous assessment visit
    they mentioned the scrapping of the remaining exemptions, privileges and
    loopholes, a more efficient VAT implementation, a reformed property tax system,
    and the use of fiscal policies in order to promote efficient energy and the
    clean energy transition. Romania has no ongoing agreements with the IMF at
    present.


    (bill)

  • January 29, 2024

    January 29, 2024

    PARLIAMENT This week sees the start of this
    year’s first parliamentary session in Romania, marked by a special election
    context in which Romanian citizens are expected to take part in 4 types of
    elections-for the European Parliament, for the national parliament, as well as
    presidential and local elections. The Senate’s agenda includes, among others,
    emergency orders concerning the farmers and carriers who have been protesting
    across the country. The Chamber of Deputies has a number of bills pending
    endorsement, including legislation concerning drug trafficking and gambling. This
    weekend the justice minister Alina Gorghiu said 3 bills have been submitted to
    Parliament, which are aimed at curbing drug trafficking. They concern the
    set-up of a national drug trafficking register and of regional rehab centres, while
    the so-called 2 Mai Bill eliminates suspended sentences for drug trafficking
    and increases penalties to up to 10 years in prison. Other bills pending
    approval introduce 10-year driving bans for DUI, and healthcare and
    psychological assistance for people found in possession of illegal drugs.


    ECONOMY An International
    Monetary Fund mission headed by Jan Kees Martijn arrives
    in Bucharest today to review the latest economic and financial developments.
    This is a regular consultation based on Romania’s relation with the IMF, and it
    comes 4 months after the previous visit. The IMF expects a budget deficit of 6%
    of GDP and an economic growth rate of 2.3% this year. IMF experts also
    recommend a number of additional reforms, and in the previous assessment visit
    they mentioned the scrapping of the remaining exemptions, privileges and
    loopholes, a more efficient VAT implementation, a reformed property tax system,
    and the use of fiscal policies in order to promote efficient energy and the
    clean energy transition. Romania has no ongoing agreements with the IMF at
    present.


    BRANCUSI Some 100 works were included in the largest
    exhibition in 50 years in Romania devoted to the sculptor Constantin Brâncuși.
    Opened in late September in western Romania as part the Timişoara – European
    Capital of Culture, the exhibition came to an end on Sunday night. Sculptures,
    photographs, arhive documents and footage were on display in Timişoara’s National
    Art Museum. To mark the end of the exhibition, the National Bank of Romania
    launched a commemorative silver coin honouring the sculptor Constantin Brâncuşi.


    PROTESTS The French farmers’ protests have
    reached a new stage today, with major roadways into Paris and other large
    cities to be blocked indefinitely as of today. The main trade union in the sector threatened
    large-scale operations, including a complete obstruction of food supply flows
    to the capital city’s supermarkets, so that the locals may feel the effects of
    the protests. According to Radio Romania’s correspondent in Paris, the plan
    includes the use of tractors to shut down motorways and slow down traffic. Similar
    steps are also planned for France’s second-largest city, Lyon. Farmers protest the
    inadequate payments for their produce, the red tape and the competition coming
    from cheap imports. In a move to address the situation, PM Gabriel Attal admitted
    that a first set of measures, announced on Friday, was insufficient and
    promised new decisions to increase farmer revenues would be made this week.


    MIDDLE EAST Iran denies involvement in
    Sunday’s drone attack on a US military base in north-eastern Jordan, near the
    Syrian and Iraqi borders, in which 3 US troops were killed. The Islamic
    resistance in Iraq claimed responsibility for the attack, and the US president
    Joe Biden said these are groups known to be supported by Iran. Biden warned
    that the US would respond to the attack. These are the first US troops killed
    in the Middle East since the start of the war in Gaza, prompting fears of an
    extended conflict in the region. Meanwhile, Paris hosted a meeting of officials
    from the US, Egypt, Qatar and Israel, aimed at brokering a new ceasefire in Gaza
    and the release of the hostages taken by Hamas. Negotiations will continue this
    week. Violence continues in Gaza, and locals say Israeli air raids and shelling
    have increased in recent days in the region’s north and centre. According to
    the Israeli Army, its troops are involved in heavy fighting in the south, in Khan
    Younis, where they have taken out a number of terrorists. The humanitarian
    crisis is worsening, and UN calls on nations to resume their donations. (AMP)