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Tag: IMF

January 28, 2024 UPDATE

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

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

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

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

GAC The state secretary for European affairs with the
Romanian foreign ministry, Daniela Gîtman, takes part in the General Affairs
Council (GAC) meeting in Brussels on Monday. The agenda includes a policy
debate on the legislation devoted to safeguarding European democracy, and the
presentation of the priorities of the Belgian presidency of the EU Council,
followed by an exchange of opinions between the participating ministers and
state secretaries for European affairs. The GAC meeting will also include a new
round of talks on country reports, under the annual rule of law dialogue.

UKRAINE Six months after the start of the Russian invasion, Ukrainian
defence officials and corporate executives tried to embezzle USD 40 mln
intended for arms procurement, according to SBU, Ukraine’s main security and
intelligence agency, quoted by international
news agencies. The attempted embezzlement took place in August 2022, with the
money originally earmarked for the procurement of 100,000 mortar rounds, which
were never delivered. One of the suspects was apprehended while trying to leave
the country, SBU announced. Ukraine has seen several corruption scandals since
the start of the war in February 2022. In August 2023, president Volodymyr
Zelenskyy dismissed all the regional officials in charge with army enrollments, on
grounds that they were providing recruitment exemptions for money. Curbing
corruption is one of the main conditions that Ukraine must meet in order to
join the European Union.

RUGBY The new manager of Romania’s rugby team, David Gerard
(FR), announced the 32 players selected for the national team’s debut match in
the 2024 Rugby Europe Championship. According to the website of the Romanian
Rugby Federation, only 26 of them will travel to Poland. In Rugby Europe
Championship, Romania plays in Group B, alongside Portugal, Belgium and Poland.
The first match, in Poland on February 4, will be followed by 2 home games,
against Belgium (February 10) and Portugal (February 17). (AMP)

28 January 2024
January 28, 2024

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

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

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

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

28 January 2024
January 22, 2024

Visit. The Romanian Prime Minister, Marcel Ciolacu, has stated that the time has come for relations between Romania and Vietnam to move to the ‘next level’, after almost seven and a half decades since the establishment of diplomatic relations between the two countries. After the discussions in Bucharest with his Vietnamese counterpart, Pham Minh Chinh, Ciolacu pointed out that Romania was one of the main promoters of the development of Vietnam’s relations with the European Union and stated that he wanted Romania to become the main partner of that country in terms of its commercial access on the European market. He also proposed to his Vietnamese counterpart a partnership aimed at promoting medicines produced in Romania in the Southeast Asian area. For his part, Vietnamese Prime Minister Pham Minh Chinh emphasized his country’s interest in developing partnerships in fields such as science, technology, innovation, agriculture. The head of the Hanoi government will be received by President Klaus Iohannis.

Senate. In Bucharest,
the Senate was convened, today, in an extraordinary session to adopt the
emergency ordinances recently issued by the Government, in the context of the
farmers’ and transporters’ protests. There are several normative acts,
including one on the excise duty on diesel fuel, and another modifying
regulations in the field of road transport. The emergency ordinances were
approved by the executive during the parliamentary recess and, according to the
Constitution, Parliament must be convened within five days to turn them into
laws. On the other hand, the first day of the three-day rally authorized by the
Capital City Hall in front of the Parliament building was, on Sunday, a
failure. Only a few people came and it was not about farmers or transporters.
The protest continues, however, near the capital and across the country. The
demands of farmers and transporters remain the same, from the reduction of the mandatory
insurance fees and the recovery of a percentage of the excise duty on fuels, to
fiscal fairness and the shortening of border crossing times.

IMF. An IMF mission
will come to Bucharest next week, approximately four months after the previous
visit, to analyze the latest economic and financial developments. According to
a press release, the institution estimates an economic growth of 2.3% for
Romania this year and a budget deficit of 6% of the GDP. The IMF recommends authorities
in Bucharest to implement additional reforms, of some two percent of the GDP.
At the end of the previous visit, the head of the mission for Romania, Kees
Martijn, said that the fiscal package adopted by the government was a step in
the right direction, but other reforms were needed, especially regarding taxes,
to increase revenues, efficiency and fairness.

FAC. The head of Romanian
diplomacy, Luminiţa Odobescu, is participating, today, in Brussels, in the Foreign
Affairs Council. The main topics on the agenda are Russia’s aggression against
Ukraine and the situation in the Middle East, reads a press release issued by Ministry of Foreign Affairs in Bucharest.
There will be both formal debates in the EU-27 format, as well as informal,
separate discussions, with the participation of several foreign ministers from
the region. On the sidelines of the FAC meeting, there will be an informal
breakfast with the Minister of Foreign Affairs of Egypt, S.H. Shoukry, in
preparation for the tenth meeting of the EU-Egypt Association Council, on
January 23, 2024. Minister Odobescu also has a meeting with the Secretary
General of NATO, Jens Stoltenberg.

Gaza. Intense Israeli
air raids and street fighting with Hamas militants continue in the Gaza Strip,
where Palestinian medical officials have reported that the death toll has
exceeded 25,000. As street fighting intensifies between Israeli forces and
Hamas militants in Jabalia, in the northern Gaza Strip, the southern town of
Khan Yunis is being hit by heavy Israeli bombardment. Meanwhile, the United
States, Qatar and Egypt continue their attempts at mediation, but Hamas demands
that Israel end the war and withdraw its forces before the hostages are
released, an option rejected by Israeli Prime Minister Benjamin Netanyahu.
During the night, the hostages’ relatives and sympathizers gathered near the
prime minister’s official residence to demand an agreement for their release.
The French Minister of the Armed Forces, Sébastien Lecornu, is meeting today
with the families of the hostages, and then with Prime Minister Benjamin
Netanyahu and his Israeli counterpart, Yoav Gallant. (MI)

22 January 2024
October 11, 2023

Visit — Romania’s President Klaus Iohannis is visiting Hungary today at the invitation of his Hungarian counterpart, Katalin Novák. It is the first official visit to Budapest by a Romanian president in the last 14 years. Romania’s Presidential Administration explained that the visit takes place in the context of increased dynamics of high-level contacts, after the official visit made by Katalin Novák to Bucharest, in September 2022, and the participation in the 8^th Summit of the Three Seas Initiative, hosted by the President of Romania in September 2023. The Strategic Partnership and its development prospects, as well as the concrete ways to deepen the bilateral dialogue, are on the agenda of talks. At the same time, the two presidents will analyze the current situation at the regional, European and global levels, through the lens of the war launched by Russia against Ukraine, with an emphasis on the consequences for security, energy, food and distribution chain. As regards the European agenda, they will discuss the priorities of the Presidency of the EU Council, which Hungary will hold in the second part of 2024.

Israel – The US has promised Israel all the support it needs to respond to Hamas actions. A first plane loaded with American ammunition has already landed in Israel, and the Secretary of State Antony Blinken is going today to meet with Israeli leaders to find out how they can be better supported, including in the perspective of a ground offensive in Gaza. Last night, the US President Joe Biden strongly condemned the attacks and reiterated that Israel has every right to defend itself against what he called “the absolute evil unleashed by Palestinian terrorists”. The death toll after Saturdays massive attack launched by the Palestinian group Hamas is increasing, the number of Israeli dead reaching 1,200. The Israeli army revealed to the international media the horrors perpetrated by the terrorists in a small Jewish settlement near the border, where entire families, including dozens of children, were killed, and their homes were looted and set on fire.

Parliament – The two chambers of Romania’s Parliament, gathered in a joint session, adopted today a Declaration regarding the terrorist attacks against Israel and the civilian population. According to the document, the parliamentarians express their full solidarity with the State of Israel, strongly condemn the attacks of the terrorist organization Hamas, the crimes and violence unleashed on the civilian population and express their deep regret for the victims of these attacks. On the other hand, the Romanian ambassador to Israel, Radu Ioanid, stated that the situation of the Romanians in Israel is under control. He pointed out that there are hundreds of repatriation requests per day, and the flights that transport them are operated by the national company TAROM, as well as by other private companies. Radu Ioanid also recalled that Romanian Foreign Ministry teams went to the airport in Tel Aviv to provide assistance to those who have problems.

Pilgrimage — As of Sunday more than 72,000 people have already passed in front of the shrine with the relics of Saint Parascheva, which was taken out in the yard of the Metropolitan Cathedral in Iaşi, the saint being considered the protector of the eastern region of Romania and of the needy. The Romanian Orthodox Church celebrates Saint Parascheva on October 14, which is why, every year, around this day, Iasi becomes the largest pilgrimage center in the country and equally in Central and Eastern Europe. Many people from the country and abroad come to pray at the relics of Saint Parascheva and of other relics of saints specially brought for the pilgrimage. This year, it was decided to bring to Iasi the relics of Saint Andrew of Crete.

Declaration – The presidents of Romania and Ukraine, Klaus Iohannis and Volodimir Zelenski, signed, on Tuesday, in Bucharest, a political declaration according to which they want to raise bilateral relations to the level of a strategic partnership. The Ukrainian leader, who paid his first visit to Romania since the beginning of the war, thanked for the help given to his country. Klaus Iohannis has assured him that Romania will continue to support Ukraine at all levels, including military.

IMF – In the latest report published on Tuesday the International Monetary Fund (IMF) estimates for Romania an economic growth rate of 2.2% this year, compared to 2.4% as previously estimated. Regarding the next year, the IMF anticipates a growth rate of 3.8%. The average annual inflation rate expected by the international financial institution for Romania is 10.7% in 2023 and 5.8% in 2024. An IMF mission in Bucharest recently announced that the deficit is to be 6% this year and 5% next year.

Pensions – On Wednesday, the Romanian Senate gave a favorable vote for the modification of the law on special pensions, by putting it in agreement with the decision of the Constitutional Court of Romania. The bill will also be re-examined by the Chamber of Deputies, as a decision-making body. The Prime Minister Marcel Ciolacu has recently stated that the amendments made to this law end the anomalies regarding the payment of pensions higher than the earnings during the period of activity, enjoyed by some professional categories. At the same time, the Speaker of the Senate, Nicolae Ciucă, stated that the law on special pensions had to be finalized in Parliament within two weeks, pointing that it will be a solution that must be assumed politically so that Romania can benefit from the money from payment request number 3 of the National Recovery and Resilience Plan. In August, the Constitutional Court decided to send back to Parliament the law amending the special pensions, after declaring some articles unconstitutional. (LS)

11 October 2023
The IMF economic forecast for Romania

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

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

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

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

(bill)

11 October 2023
Conclusions of the IMF mission in Romania

The recently adopted fiscal package is a step in the right direction but further adjustment is need, the International Monetary Fund (IMF) delegation that assessed, until Wednesday, the state of the Romanian economy said in a press release. IMF experts have forecast a 2.3% economic growth for Romania this year and a budget deficit of 6% of the GDP and recommended the Romanian authorities to implement additional reforms accounting for 2% of the GDP. To this end, key measures to be considered are the elimination of remaining exemptions, privileges and loopholes, further VAT streamlining, implementing the reformed property tax and using tax policy to promote the efficient use of energy and, more broadly, foster the transition to a carbon-neutral economy.

According to the international experts, the new tax package improves policy design in some areas. It broadens the tax base and improves revenues by limiting exemptions for workers in the agricultural, construction, food processing and IT sectors, and by limiting the number of goods subject to reduced VAT rates. The new fiscal package will improve public finances in 2024 and beyond by about 1 percent of GDP, resulting in a deficit of just above 5 percent of GDP, in 2024. However, fiscal deficits will need to fall below 3 percent of GDP, as agreed with the European Commission, to stabilize public debt over the medium term, help secure necessary market financing at lower interest rates, and support ongoing disbursement of EU funds. According to the IMF experts, increasing the predictability of expenditure with salaries and pensions is welcome, but the Governments decision to control the price of food products is not the right strategy to lower the prices.

Moreover, the head of the IMF mission, Jan Kees Martijn, warned that it could be challenging to implement fiscal consolidation and the next steps under the National Recovery and Resilience Plan (NRRP) during a year with multiple elections such as 2024. He also said that additional taxes for banks put increase the burden on companies and could impact their financial results.

Among the measures recommended by the IMF mission, is also improvement in administration and a good planning of fiscal policy, which should be communicated in a clear manner, so as to offer predictability to both companies and the population. Also needed is, according to the international experts, new investment and budget allocations to education and healthcare, to bring them to EU level.

On their last day in Bucharest, the IMF experts met with the Romanian PM Marcel Ciolacu. He said the IMF recommendations, which are similar to those of the World Bank and the European Commission are already taken into account. At present, the Government focuses on reducing budget spending and fighting tax evasion and the bill for which it took responsibility in Parliament creates the general framework for the fiscal reform the Government wants to conduct. Marcel Ciolacu estimates that Romania will have one of the biggest economic growth rates in the EU this year and that the measures taken will help the country overcome the difficult situation experienced lately. (EE)

5 October 2023
September 25, 2023

POLL According
to a poll conducted by the Center of Urban and Regional Sociology, (CURS) most
of the Romanians believe that things are rather going wrong in Romania. 69% of
the respondents share this opinion, whereas only 22% of them believe the
country goes in the right direction. 41% of those questioned believe their
situation will be more difficult next year, 38% that it will remain the same whereas
18% says that things will improve. According to the CURS poll, the main issues
the Romanians are presently facing are the inflation, the higher prices and their
low incomes, the dropping standard of living, corruption and theft. The most
trusted institutions remain the firefighters (73%) followed by the army (68%)
and the church (63%). If elections were to take place next Sunday, 50% of the
interviewees would be voting for the parties presently ruling Romania, the PSD
and PNL.

FESTIVAL The concert of the Concertgebouw Royal
Orchestra of Amsterdam on Sunday night ended the 26th edition of the
George Enescu International Music Festival. The Academic Radio Choir and the
Children Radio Choir have also participated in the aforementioned event, which
brought together over 40 orchestras from 16 countries and over 35 hundred of
the world’s most renowned musicians. This festival, one of the world’s most
important, will be followed by Remember Enescu, a contest devoted to the young
musicians. This year’s edition kicks of on Monday in Timisoara, western
Romania.

IMF A team of the International Monetary Fund comes to
Bucharest today for the annual round of talks over the Romanian economy. Until
October 4th, international experts will be holding talks on the
economic policies and the latest developments in the field with representatives
of the Finance Ministry, the Central Bank and various NGOs. The IMF team will
also be meeting representatives of the private sector for talks, which are
taking place periodically in all member states with a view to presenting
recommendations for ensuring stability and a positive development at the level
of the economy.

LAWS The completion of the measure package aimed
at balancing the state budget will be preceded today by a new round of talks in
Bucharest between Prime Minister Marcel Ciolacu and Finance Minister Marcel
Bolos followed by another round of consultation with employers associations and
trade unions on the matter. Also today, the Executive is to endorse a draft law
for which it will assume responsibility in Parliament. The government’s
intention is to effectively combat tax evasion, ensure fiscal equity and curb
red tape. The VAT will remain low for a series of products and goods – 5% for
firewood, thermal energy, natural gas and other things related to household
consumption. The VAT will stay at 9% for food stuff and medicine, whereas
products destined for people with abilities will remain exempted from the VAT.
Holiday vouchers will be given only to state employees with incomes up to 16
hundred euros.

(bill)

25 September 2023
September 24, 2023

FISCAL MEASURES – The Bucharest government will set in the upcoming days the final form of the package of fiscal measures for which it plans to take responsibility in Parliament. On Monday, a new meeting of the Economic and Social Council is scheduled, where talks between the executive and the social partners on the topic of fiscal reform will be held. A series of provisions in the new fiscal bill are contested both by trade unions and employers organizations. Criticisms focused, among other things, on the provision that allows employers to offer money instead of meal vouchers or holiday vouchers, while the Council of Foreign Investors claims that the planned taxation of turnover creates the prerequisite of unfair competition.

CORRUPTION – Dumitru Buzatu, one of the oldest and most influential leaders of the Social Democratic Party (PSD) is under preventive arrest for 30 days, as of Saturday, in a case in which he is accused of bribery. President of the Vaslui County Council (east) and leader of the PSD organization in the county, Dumitru Buzatu had been detained by anti-graft prosecutors for receiving a 250 thousand euro bribe to favor a company to obtain a contract. He was a parliamentarian from 1992 until 2012 and was part of the circles of former head of the PSD, Liviu Dragnea, convicted a few years ago. After the arrest Dumitru Buzatu was expelled from the PSD.

IMF – An International Monetary Fund mission will travel to Bucharest on Monday to assess, until October 4, the Romanian economy. The IMF experts will discuss with the Romanian authorities about economic policies and the latest developments in the field and will have meetings with representatives of the private sector and non-governmental organizations. At the end of the visit to Romania, it is expected that the international experts will present the conclusions in a press conference.

COMPETITION – An electric car built by a team of students and professors from Cluj-Napoca (north-west) will participate, for the first time, in the most important profile competition in the world, organized in Australia. The event will start next month, on October 22, and will last seven days. The three-wheeled vehicle will be piloted by six students, one at a time, for two hours each. They will cover, in total, more than 3,000 kilometers in difficult conditions, in the desert. The solar vehicle is the third prototype built at the Technical University of Cluj-Napoca. It is extremely light, is made of carbon fiber and weighs about 200 kilograms.

ENESCU – The “George Enescu” International Festival, one of the most important international classical music events, comes to a close today, after almost a month of concerts. The theme of the 26th edition of the festival was “Generosity through Music”. On the last day of the festival, the pianist Raluca Ştirbăt and the French violinist David Grimal will perform music by Enescu, in a recital held at the National Art Museum in Bucharest. The festival’s program included over 3,500 of the worlds most famous artists, over 40 orchestras from 16 countries, first performances and educational concerts for children

HANDBALL – Romanias vice-champion in womens handball, Rapid Bucharest, is playing today at home against the Danish team Herning Ikast. In the previous match, Rapid defeated, also at home, the Polish team Zagblebie. On Saturday evening, the Romanian womens handball champion, CSM Bucharest, was defeated by the Hungarian team Gyor, 27-23, at home, in the Champions League’s Group A. The Romanians suffered their second consecutive failure, after a winning debut. CSM will play its next match on October 1, away from home, against the Swedish team IK Savehof. (EE)

24 September 2023
April 15, 2023 UPDATE

Easter. Orthodox Christians, the majority in Romania, and Greek Catholics, celebrate, on Sunday, Easter or the Resurrection of Jesus, the biggest celebration of Christianity. Easter takes its name from the Hebrew word “Pesah” of the ancient Jews, which means “passing”. First, the word designated the bringing of the world by God from non-being into being, and then, the passing of the Israeli people from Egyptian slavery to full freedom. “Let the Easter holiday inspire us, let us be with a good thought and a gesture of solidarity closer to our fellow people in suffering, hit by war or misfortunes, affected by the loss of loved ones or the burden of loneliness” – president Klaus Iohannis said in a message conveyed on this occasion. He wished health, peace and prosperity to all Orthodox, Greek-Catholic, Armenian and Neo-Protestant Romanians in the country and abroad. In turn, the Patriarch of the Romanian Orthodox Church, Daniel, made an appeal to peace, joy and good thoughts and deeds for the sick, the poor, the lonely or the estranged.

Safety. In Romania, more than 24,000 policemen, gendarmes and firefighters are ensuring order and safety measures during the free days of the Easter holidays. During this period, high traffic is expected on the roads, as well as approximately 800,000 believers attending the religious services. Every day, over 2,700 gendarmes will be present at all the religious and cultural-artistic events taking place during this period, so that crowding or other incidents are avoided.

Art. On World Art Day, celebrated on April 15, the Romanian Minister of Culture, Lucian Romaşcanu, stated that art remains an expression of freedom and urged people to honor artists and enjoy their creations. “This year, World Art Day takes place on Holy Saturday, an extremely important day for the Orthodox believers who await the Resurrection of the Lord, another occasion in which we take care to feed our souls”, said the Minister of Culture, Lucian Romaşcanu. World Art Day was established by the International Art Association at its 17th General Assembly in Guadalajara, Mexico. Celebrated for the first time in 2012, the date was symbolically chosen to honor the memory of sculptor, painter, architect and inventor Leonardo da Vinci, born on April 15, 571 years ago.

Visit. Between April 18-26, Romanias president Klaus Iohannis, will pay formal visits to Brazil, Chile and Argentina. According to the Presidential Administration, these visits are aimed at relaunching high-level dialogue with Latin American states and boosting bilateral interactions at the political-diplomatic level. They are intended to open up new opportunities for collaboration in areas of increased interest, including those regarding the common response to a series of challenges at global level. One of the main goals of these visits is the promotion of sectoral contacts and the development of concrete bilateral projects in the fields of economy, trade, research, environmental protection and climate change, agriculture, education, culture, civil protection.

IMF. The European economy has done reasonably well in recent weeks, but growth is now slowing and faces multiple risks, the International Monetary Fund (IMF) has warned. The inflation rate remains at a high level and exceeds 10% in most countries in emerging Europe and in some advanced economies. According to the institution, a drop in inflation is expected following the drop in energy prices and the improvement of the situation in the supply chains, even if household expenses continue to go up. The IMF expects an average inflation rate of around 5.6% this year in advanced European economies, and 11.7% in emerging Europe. According to estimates, in Romania the annual inflation rate will probably accelerate its decrease in the next period. The Central Bank specified that the annual inflation rate decreased to 15.52% in February, from 16.37% in December 2022, which is relatively in line with forecasts.

Rating. Fitch Ratings confirmed on Friday, the BBB minus ratings for the long-term debt in foreign currency and local currency of the municipality of Bucharest and improved the outlook from negative to stable. Last month, Fitch reconfirmed Romanias government debt rating at BBB-/F3 for long- and short-term foreign currency debt and revised the countrys outlook from negative to stable. Fitch also revised the individual credit profile of the Romanian capital from BBB plus to A, reflecting the revision of the risk profile from low medium level to medium level, the solid operational performance and the ambitious investment plan . Bucharest is responsible for more than 30% of the countrys economy, and the local level of wealth is more than four times higher than the national average, the release states. The citys capital expenditures are expected to remain high during 2023-2025, leading to an average deficit of 3% of total revenues, Fitch estimates. (MI)

15 April 2023
January 3, 2023 UPDATE

IMF The IMF expects 2023 to be tougher than
2022 for most of the global economy. The main economic growth engines, namely
the United States, the European Union and China will see their economic
activity slow down, so that 2023 will be difficult for the global GDP, the head
of the International Monetary Fund (IMF), Kristalina Georgieva, told the
American TV station CBS. In October, the
IMF downgraded its global economic outlook for 2023, following the war in
Ukraine, sharply rising interest rates and inflationist pressure. Georgieva
said that China, which sees a surge in COVID-19 cases following the dismantling
of its strict zero-COVID policy, may have its economy affected. Meanwhile,
the EU has been especially hard hit by the war in Ukraine, with half of the
bloc expected to be in recession this year, Georgieva said. Also, the global
growth rate will slow down from 3.2% in 2022 to 2.75 this year, while
governments will have to make sure they have sufficient revenues for
expenditure, as they will no longer be able to borrow money in advantageous
conditions. As regards Romania, the economic growth rate will slow down to 2.8% this year, from more than 5% in 2022.

NATO NATO allies will discuss, in the
upcoming months, about the share earmarked for defence, given that some of them
have requested that the current 2% share of national output to be the minimum
target spent on defence, NATO Secretary General Jens Stoltenberg told the
German news agency DPA. The chief of the Alliance also said he would chair a
number of meetings on this topic, and that his goal was to reach an agreement
ahead of the next summit in Vilnius in July 2023.

SURVEY 2023 starts on a pessimistic note for
most Romanians, according to a survey conducted by the Romanian Institute for
Evaluation and Strategy. More than half of the participants in the poll believe
2023 will be worse for Romania than the year before. Active people aged 36 to
65 are the most pessimistic, while the less educated respondents are more optimistic
in this respect. In terms of living standards, half of respondents have little
expectations from the year that has just started. People aged over 51, with
monthly revenues below 400 euros, have the darkest view of the future. Unlike
them, those with incomes above 800 euros a month say 2023 will be the same as
2022. However, the most optimistic in terms of financial future are young
people aged below 35. As for the changes they would like to see in their
country, most respondents indicated the politicians, the political class or the
country leaders, followed by the Government and the ruling parties.

CORRUPTION The European Parliament has
launched an urgent procedure to wave the immunity of two members of the
European Parliament – Italian Andrea Cozzolino and Belgian Marc Tarabella,
following a request from the Belgian judicial authorities. A number of current
and former European officials or employees are investigated in this case. The
scandal began in December, with the arrest of the Greek MEP Eva Kaili, who is
accused of accepting large sums of money to peddle influence for Qatar and
Morocco at the European Parliament.

FOOTBALL FIFA will ask every country in the
world to name a stadium in honour of Pelé, said FIFA president Gianni Infantino,
attending the funeral in Santos, Brazil. Edson Arantes do Nascimento by his
real name, Pelé, the only footballer who won three world titles, died aged 82.
Throughout his career he scored almost 1,300 goals. He was designated
footballer of the 20th century by the International Olympic Committee in 1999,
Player of the Century by FIFA in 2000 and won the Golden Ball. (EE, AMP)

3 January 2023
The EBRD improves estimates for Romania

Romanias economy evolved in the first half of the year much better than expected. This is confirmed by the latest EBRD report, which shows that after a 5.9% rebound in 2021, boosted by private consumption, the GDP registered a surprising growth of 5.8% in the first months of 2022. The international financial institution says that all private consumption, especially of services, was the trigger of growth this time as well, being stimulated by the removal of restrictions related to the pandemic. The GDP growth for the whole of 2022 is estimated somewhere at 5.4% and follows the trend recently indicated also by the assessment mission carried out by the IMF in Romania. The IMF estimated a growth rate of the Romanian economy of 4.8%, higher by more than 2%.

Things will look completely different next year, though, the European Bank for Reconstruction and Development officials believe. For 2023, the bank estimates an economic growth rate of only 1.9%, which was itself revised upwards from the May estimate. The spring estimates showed that Romanias Gross Domestic Product was to report an increase of 2.9% in 2022 and a contraction of 1.1% in 2023. The EBRD puts the blame for the modest growth forecast for next year mainly on the deterioration of household incomes and on financing and energy costs, which constrain investments. Adding to this is the weak external demand, particularly from Germany, the EBRD report shows.

At the same time, financial experts even warn that there are still risks of a decline in Romanias economy, in the event of a more serious recession than expected in the euro zone. The EBRD shows that in all three EU member states in Southeastern Europe – Romania, Bulgaria and Greece – which recorded solid economic growth in the first half of 2022, signs of a significant slowdown are beginning to emerge. Inflation has reached two-digit figures, and uncertainty about energy supplies in the coming months is affecting confidence and investment.

The international financial institution estimates that economies in its region of activity will register growth of 2.3% in 2022, above its May forecasts, thanks to solid activity in the first half of the year, when households spent the savings accumulated during the pandemic quarantines, despite a decline in real wages. However, the reduction in Russian gas supplies led the EBRD to reduce its growth forecasts for next year to 3%, from 4.7% as previously estimated. Ukraines GDP is estimated to contract by almost one third in 2022, while Russias economy is expected to shrink by 5%, instead of the 10% as the EBRD had previously estimated. (LS)

29 September 2022
September 26, 2022 UPDATE

ITU – More than 3,000 leaders and delegations from 193 countries are gathering in Bucharest, as of Monday until October 14, to set the global direction of digital transformation and to choose the future leadership of the International Telecommunication Union (ITU), the UN agency for information technology and communications. During the three weeks, the delegations will include representatives of private companies, academic institutions and national, regional and international bodies involved in the organizations activities regarding radio communications and the standardization or promotion of digital transformation in line with the UN Sustainable Development Goals. Romania is the first country in the EU to organize this large-scale event and where the general policies of the ITU will be established, as well as the strategic and financial plans for the period 2024-2027.

Tokyo — The Romanian Prime Minister, Nicolae Ciucă, and the Speaker of the Chamber of Deputies, Marcel Ciolacu, are in Japan, where, on Tuesday, they will participate in the state funeral organized in honor of the former Japanese Prime Minister Shinzo Abe, who contributed decisively to the start of actions meant to raise the relations between the two countries at the level of a strategic partnership. Shinzo Abe was killed on July 8 by a former officer with a homemade gun during a campaign speech. During Monday’s talks with the Japanese Prime Minister, Fumio Kishida, Nicolae Ciuca said that raising the relations between Romania and Japan to the level of the Strategic Partnership is an opportune political act in the current international context, which materializes the remarkable vision of the former Prime Minister Shinzo Abe in the foreign policy field. An important point of the meeting was the security and defense component, one of the four cooperation pillars of the future Strategic Partnership, the talks also focusing on economic cooperation, given that Japan is the largest Asian investor in Romania. The Japanese Prime Minister appreciated the presence of his Romanian counterpart in Tokyo and assured him of his full support for the conclusion of the Strategic Partnership and the consolidation of bilateral cooperation, including at external level, in the regional and international context that requires the protection of democracy and the rule of law.

IMF — The International Monetary Fund (IMF) has revised upwards Romania’s economic growth forecast for 2022 up to 4.8%, the Finance Ministry announced on Monday. In June, the chief of the IMF mission for Romania, Jan Kees Martjn, announced that the IMF had improved Romania’s economic growth forecast at almost 3.5%- 4.5% for 2022 and 2023. The reforms included in the National Recovery and Resilience Plan are on schedule and will significantly contribute to our mission, as well as the fiscal sustainability measures, the management of public investments and the budget consolidation, the Romanian finance minister Adrian Câciu said. An IMF team, led by Jan Kees Martijn, visited Bucharest, between May 30 and June 10, for the annual analysis of the Romanian economy, known as the Article IV Consultation.

Refugees – The Border Police General Inspectorate informs that, on Sunday, more than 90 thousand people, of whom almost 10 thousand Ukrainian citizens, entered Romania through border points throughout the country. The figure represents a decrease of 7.6% as compared to the previous day. As of February 10, 2022 (a pre-conflict period), more than 2.4 million Ukrainian citizens have crossed the border into Romania, the Border Police General Inspectorate also announced.

Flu – Health experts expect a significant impact of the flu in the 2022-2023 cold season. They draw attention that vaccination against the flu remains extremely important in reducing the risk of double infection – with the classic flu virus and with SARS-CoV-2, especially among vulnerable categories. In Romania, the first tranches of flu vaccines have already arrived. They can be administered in family doctors offices.

Rome – Italys far-right leader, Giorgia Meloni, claimed victory in Sundays election on behalf of the right-wing bloc that won most of the seats in Parliament, according to exit polls. Georgia Meloni, who leads the most voted party, Fratelli dItalia, could become the first woman prime minister in the history of the country, if the president entrusts her with the mandate. The alliance of conservative parties, which also includes Matteo Salvinis League and Silvio Berlusconis Forza Italia party, obtained between 41.5% and 45.5%, enough to guarantee control of both Houses of Parliament. The center-left could win between 25 and 29 % of the vote, while the populist Five Star Movement, which ran alone, between 14 and 18 %. The new parliament in Rome will have a smaller number of deputies, 400 instead of 630, and 200 senators, instead of the current 315.

Parliament — On Monday, the debates on the articles related the status of magistrates were resumed in the Romanian Parliament. It is the third bill from the package of new justice laws, drafted by the justice ministry and assumed by the government. The marathon debates in the special parliamentary committee for justice laws have led to the adoption, so far, of over 140 of the 294 articles of the law on the status of judges and prosecutors. Most articles passed in the form proposed by the Government. This week, Parliament also resumes the debates on the energy ordinance, a document currently debated by the Senate’s specialized committees. The Social Democrats (in the governing coalition) say that the bill must be improved and demand that the price cap be related to current consumption and not to last years consumption, as requested by the opposition USR. The PNL (also in the governing coalition) wants the ceiling to be set according to the consumption of the last three years for each individual month. At the debates in the Senate, the representatives of the Romanian Energy Regulatory Authority said that the fairest way to establish the cap is to take as reference the consumption registered over a certain period of time, because a calculation of the energy price based on the current bill would be complicated for suppliers. (LS)

26 September 2022
June 10, 2022 UPDATE

NATO
Romanian president Klaus Iohannis said that the leaders participating in the B9
Summit held in Bucharest on Friday had a substantial exchange of opinions on
the latest developments in terms of security, underlining the necessity that the alliance be able to defend each centimeter of its territory. The Romanian
official underlined that the NATO’s future strategic concept must reflect as
adequately and realistically possible the new security parameters, make the
collective defence a top priority, define Russia as a threat and strengthen the
alliance on all levels. Iohannis has also spoken about a boosted NATO presence
on the Eastern Flank, mainly at the Black Sea, ‘the most exposed region to the
Russian threats’. In turn, Polish president Andrzej Duda said the participant
countries wish a ‘more advanced and stronger NATO presence in the region. In a
twitter post, US president Joe Biden pledges to defend NATO’s eastern flank
strengthening the region’s energy security and work together to support
Ukraine. The summit in Bucharest was attended by the presidents of Poland,
Estonia, Hungary, Lithuania, Latvia and Bulgaria. The Czech and Slovak
presidents had online interventions as well as NATO Secretary General, Jens
Stoltenberg.

VISIT French president Emmanuel Macron will be
visiting Romania on Tuesday to meet with the French troops deployed here. This
regional tour will be taking him to the Republic of Moldova, where he is
expected to voice support for this country affected by the war in Ukraine, the
Elysee Palace announced on Friday. According to sources in Paris, Macron will
be visiting Ukraine in the future, but the date of this visit hasn’t been set yet.

IMF The
International Monetary Fund has improved Romania’s economic growth forecast to
3.5%-4.5% for 2022 and 2023, said the head of the mission for Romania Jan Kees
Martijn. He said the uncertainty associated with this forecast is high, with
risks of the war escalating and Russian gas deliveries being cut leading to a
further rise in energy costs and reducing trade exchanges between European
partners. The IMF official also said GDP reached the level before the crisis in
the first quarter of the year after last autumn’s Covid wave. According to
provisional data published on 7th June by the National Institute of Statistics,
Romania’s GDP rose by 6.5% in the first quarter of the year compared with the
same period last year.

FOOTBALL Romania’s
national football side are preparing for their Saturday match against Finland
in Bucharest, in Group 3 of League B of the UEFA Nations League. Romania has
lost their first two group matches, nil-2 to Montenegro and nil-1 to Bosnia and
Herzegovina. Romania will next face Montenegro in Bucharest next week and will
play their final two matches in September, against Finland away and against
Bosnia and Herzegovina at home.

(bill)

10 June 2022
June 9, 2022 UPDATE

OCDE Romania’s Foreign Affairs Minister, Bogdan
Aurescu, hailed the completion of the roadmap for Romania’s OCDE accession during
his Thursday’s participation in the Organisation’s Ministerial Council in
Paris. According to a Foreign Ministry communiqué, Romania’s firm commitment to
completing the domestic preparations for ensuring the best conditions for unfolding
the OCDE accession talks has been highlighted by Aurescu in his speech during
the meeting. Aurescu has also mentioned the main present challenges to the
objectives assumed at global level concerning the environmental protection, the
COVID-19 pandemic as well as the illegal war Russia is presently waging on
Ukraine. The head of the Romanian diplomacy said that the Russian aggression
has among effects a higher emphasis on the use of fossil fuels, the destruction
of the environment and marine ecosystems. On the sidelines of the event Aurescu
held talks with his French counterpart Cathernie Colonna on the bilateral
relations as well as topical issues at European and international levels with
emphasis on security and the multiple implications of the Russian invasion in
Ukraine.

IMF Prime Minister Nicolae Ciuca on
Thursday received an IMF delegation currently on an annual assessment mission
in Romania. On the occasion of celebrating this year 50 years of IMF
membership, Ciuca thanked the IMF representatives for the technical and
financial assistance Romania has benefitted in all these years. According to a
communiqué, Ciuca appreciated the positive IMF assessments and the counseling in
the field of fiscal policies with a view to curbing deficits and ensuring a
healthy economic growth against the difficult background caused by the latest
crises at European and international levels. Ciuca presented the governmental
measures aimed at providing support for both the economy and the vulnerable
citizens affected by the latest price hikes. In turn, the IMF representatives
appreciated the Romanian authorities’ efforts to keep inflation and deficits at
bay.

DEFICIT Romania’s trade balance deficit stood at around 10 billion Euros
in the first four months of this year, by almost 3 billion Euros more than the
one registered between January 1st and April 30th, 2021, according to data made
public today by the National Institute of Statistics. In April 2022 exports totaled
6.886 billion euro and imports 9.711 billion euro.

(bill)

9 June 2022
May 24, 2022

MEASURES A new set of social and economic measures agreed on by the ruling
coalition made up of the Social Democratic Party and the National Liberal Party
will take effect in Romania as of July 1. The measures include postponements of
bank loan repayments for citizens and businesses struggling with financial
problems, as well as support for low-income pensioners. The government will
also take steps to ensure fiscal consolidation and public deficit commitments. The
costs of this set of measures reach EUR 1.1 bln.

POLL Six out of 10 Romanians (58%) believe cutting consumption is the
easiest solution for the financial difficulties caused by the rising inflation,
says a survey made public today. In April, the inflation rate reached a record
13.8%, well above the National Bank’s 12.5% forecast for 2022. According to the
survey, 67% of the respondents see the government of Romania as responsible for
this inflation rate. Three-quarters of Romanians also believe inflation is
higher in Romania than in other countries. The respondents say the most
substantial price rises are witnessed for foodstuffs (77%), fuel (77%) and
utilities (electricity and gas) – 70%. In this context, 58% say reducing
consumption could solve the inflation problem, but pay raises are also
considered as solutions, and so is emigration. The survey was conducted online,
between April 20 and 26.

IMF The International Monetary Fund managing director Kristalina
Georgieva said on Monday that while a recession of the world’s major economies
is not expected, it is not out of the question either. The global economic
prospects have worsened since the IMF’s downward adjustment of its 2022
forecasts, owing to the war in Ukraine, the slow-down of China’s economy and
the global price shocks, especially in the foodstuff sector. ‘In a short period
of time…the horizon has darkened,’ Kristalina Georgieva said. In January, the
IMF estimated that this year the global economy will grow by 4.4%, but last
month the forecast was adjusted to 3.6%.

NATO NATO fighter jets deployed to military bases in Romania carry on their
missions to ensure the integrity of the Allied air space, the Romanian defence
ministry said. In less than 6 months, Italian Eurofighter Typhoon aircraft
stationed at the Mihail Kogălniceanu base in south-eastern Romania reported a
combined 1,000 hours of flight in NATO missions protecting the Romanian air
space. Air missions are paired with missions of the NATO Battlegroup set up in
Romania in the wake of Russia’s invading neighbouring Ukraine.

REFUGEES The number of Ukrainian nationals entering Romania on Monday was 2.4%
smaller than on the previous day, reaching 7,709, the Romanian border police
announced. Since the start of the crisis, more than one million refugees crossed
the border into Romania. Meanwhile, new checkpoints will be opened on Romania’s
border with Ukraine, allowing the Siret checkpoint, in the north-east, where
trucks are currently waiting up to 14 hours to leave the country, to give
priority to humanitarian assistance shipments. In a first stage, a checkpoint
will be opened at Vicovu de Sus (north) for vehicles up to 3.5 tonnes, and
another one at Racovăţ (north-east) for vehicles of up to 7 tonnes. Later on, a
new checkpoint will also be operational in Ulma (north-east).

TENNIS The Romanian tennis player Ana Bogdan Ana Bogdan (93 WTA) was
defeated on Monday by Victoria Azarenka of Belarus (15 WTA), 6-7 (7-9), 7-6
(7-1), 6-2, in the first round of the Roland Garros Grand Slam tournament. Irina
Begu was also scheduled to play on Monday against Jasmine Paolini of Italy, but
the match was suspended because of the rain in the 3rd set. On
Tuesday 3 other Romanians, Simona Halep, Irina Bara and Mihaela Buzărnescu will
play in the main draw. Sorana Cîrstea qualified in the second round on Sunday,
while Gabriela Ruse lost her first round. Halep, seed no. 19, is a Roland
Garros champion in 2018 and a finalist in 2014 and 2017. (AMP)

24 May 2022