Radio România Internațional

Tag: IMF

The Week in Review 17-24 November, 2018

Romania in the attention of the European Parliament

The European Commission and Parliament on Tuesday warned the ruling coalition in Romania made up of the Social Democratic Party and the Alliance of Liberals and Democrats that the observance of the rule of law and the fight against corruption in Romania have regressed in the past year. The European Commissions annual evaluation report under the Cooperation and Verification Mechanism includes 8 new recommendations for Romania, adding to the 12 made last year, out of the Commissions wish that the MCV process should be concluded during its current mandate. The Commission has asked Romania, in a very firm message, to call off the implementation of the changes to the justice laws and the subsequent emergency ordinances and revise them in line with the recommendations of the Venice Commission and the Council of Europe Group of States against Corruption (GRECO). In its turn, the European Parliament passed with a wide majority a resolution expressing concerns about the way in which the justice laws were modified and also about the weakening of the rule of law in Romania. The European assessments are like two bad grades for the current governance, says President Klaus Iohannis, a consistent critic of the cabinet made up of the Social Democratic Party and the Alliance of Liberals and Democrats:

Klaus Iohannis: “These multiple changes and intentions to change the justice laws and the Criminal Codes have drawn public attention in a negative way. These things are extremely detrimental to Romania. Obviously, these two documents are practically telling us that Romania slipped back to the point it was 11 years ago, before joining the Union.

The Social Democratic Prime Minister, Viorica Dancila has voiced her disappointment with the report:

Viorica Dancila: “We cannot agree with the setting of additional recommendations through which we are asked to ignore constitutional rules and accept what no other state would. Such a request makes the objectives of the Cooperation and Verification Mechanism impossible to reach, in the context in which rules change by the day.

Conclusions of the IMF mission in Romania

Economic activity in Romania remains strong, with unemployment at a record low, is one of the conclusions of an IMF staff visit to Romania, the head of the IMF mission to Romania and Bulgaria, Jaewoo Lee has said at the end of a one-week visit to Bucharest. He has also said that in spite of several years of economic growth, the budget deficit has gone up rather than down, as it should during good times, and the 2018 target remains at risk without further measures. IMF experts also argue that increases in public-sector salaries and planned changes to pension benefits should be reassessed for their negative implications for fiscal sustainability and long-term growth.

Romania and the EU Council presidency

George Ciamba is, as of this week, Romanias new minister delegate for European affairs. A career diplomat with the rank of ambassador, and, until recently, a state secretary with the Romanian Foreign Ministry, Ciamba is replacing Victor Negrescu, who resigned at the end of last week. Romania will take over, on January 1st 2019, the EU Council presidency and Victor Negrescu was the one in charge with its preparation and coordination. PM Viorica Dancila has given assurances that, in spite of the situation created by Negrescus resignation, Bucharest is fully prepared to carry out its 6-month EU Council presidency.

President Klaus Iohannis travels to Paris and London

President Klaus Iohannis has made two visits abroad in recent days. He first travelled to Paris, at the invitation of his French counterpart Emmanuel Macron, to attend the 100th celebrations of the end of WWI. The Romanian president used the opportunity of his French trip to hold a meeting, at the Romanian embassy, with Romanian university, MA and PhD students from the Paris region involved in academic research. The following day, he travelled to London to attend an official reception at the Buckingham Palace to celebrate the 70th birthday anniversary of Prince Charles, the heir to the British throne. Klaus Iohannis was also supposed to meet prime minister Theresa May, but the talks were cancelled by the UK side because a cabinet meeting to discuss the Brexit agreement took longer than expected.

Gaudeamus and RadiRo – two events produced by Radio Romania

Bucharest has been playing host since Wednesday to the Gaudeamus International Book Fair. Book lovers have until Sunday to attend the many events scheduled and take advantage of the considerable discounts offered by the over 300 participating publishers. On the day Gaudeamus ends, another major event produced by Radio Romania begins: the RadiRo International Festival of Radio Orchestras. Its line-up features eight symphonic and four jazz concerts. The participants include MDR Leipzig Radio Symphony Orchestra from Germany, the BBC Philharmonic from Great Britain, the Orchestra della Svizzera italiana in Lugano, Switzerland, and the RTÉ National Symphony Orchestra from Ireland.

17 November 2018
IMF mission to Romania ends

An IMF team was on a one-week visit to Bucharest,
where they discussed with the Romanian authorities about the country’s
macro-economic prospects and budget policies for next year.

The visit was also designed as a preparation for a
consulting mission due early next year. Economic activity in Romania
remains strong with unemployment at a record low, is one of the IMF experts’
conclusions. However, according to a news release issued by the international
financial institution, despite several years of strong growth, the budget
deficit has gone up rather than down, as it should during good times, and the
2018 target remains at risk without further measures.

The
2019 budget and the medium-term financial framework should target smaller
deficits, in line with the commitments to the European Union, and should keep
the public debt to GDP ratio on a downward trend. In this respect, current
initiatives to improve the efficiency of public spending, such as expenditure
reviews and centralized procurement, are welcome, says the IMF, adding that the
modernization of revenue administration is also essential.

IMF
experts also argue that increases in public-sector salaries and planned changes
to pension benefits should be reassessed for their negative implications for
fiscal sustainability and long-term growth.

Also,
in view of enhancing the economic growth potential, structural reforms and good
governance are needed. In this regard, strengthening the institutions in charge
with public investment is a priority, to help address Romania’s large
infrastructure gap, including by means of facilitating better absorption of EU
funds, reads the IMF news release.

The
Fund forecasts a 4% growth rate for 2018, a 3.5% year-end inflation rate,
relatively stable current account deficit in the medium run and a budget
deficit of over 3% of the GDP, both this year and in 2019, if current policies
are maintained.

In
turn, the European Bank for Reconstruction and Development estimates a 4.2%
economic growth rate in Romania this year, with a slow-down to 3.6% in 2019.
The IMF and EBRD forecasts are significantly higher than the ones made by the
European Commission, which expects Romania’s economic growth rate to go down to
3.6% this year and 3.8% next year, as the rise in private consumption will slow
down and the negative balance of trade will deepen.

13 November 2018
November 12, 2018 UPDATE

VISIT Romanian president Klaus Iohannis on Monday received in Bucharest the president of the European Economic and Social Committee, Luca Jahier; the two officials talked about the upcoming Romanian presidency of the EU, issues related to the future of the EU, its multiannual budget as well as social and cultural aspects. President Iohannis has said that during its EU presidency Bucharest wants to obtain concrete results for the EU citizens and contribute to the consolidation of the European project. In turn the EU official has said that the European Economic and Social Committee wants to play an active role during the future strategic meetings such as the Sibiu Summit on May 9th 2019.

TALKS The European Union and London have not reached an agreement yet over the way in which the United Kingdom will leave the bloc, but talks between the two parties continue, the EU chief negotiator for Brexit Michel Barnier has announced. The EU official on Monday presented before the General Affairs Council in Brussels the latest developments in the talks over Britains leaving the bloc. The event was also attended by Romanias permanent representative to the EU, Luminita Odobescu. The Irish border is a pressing issue in the Brexit talks as neither side wants to introduce a physical border in Ireland for fear of undermining the peace accords, which put an end to almost three decades of violence in Northern Ireland. The UK is to leave the European Union at the end of March 2019.

IMF Increases in public wage and planned changes to pension benefits should be reassessed for their negative implications for fiscal sustainability and long-term growth, says an IMF communiqué published on Monday. An IMF team led by Jaewoo Lee visited Bucharest between November 6th and 12th for talks over Romanias latest macroeconomic developments. According to Jaewoo Lee, ‘economic activity in Romania remains strong with unemployment at a record low. At the same time, spending composition is increasingly skewed towards rigid items to the detriment of public investment. According to the IMF official, “fiscal consolidation would enhance room for fiscal policy maneuver, thereby reducing the economys vulnerability to domestic and external shocks.

VOTE The European Parliament met on Monday in plenary session to vote on a resolution regarding the rule of law in Romania. They are set to vote on passing the resolution on Tuesday, and that same day the Mechanism for Cooperation and Verification report for 2018 will be published. According to the press, the draft resolution is critical of the Romanian Parliament and executive, and issues tough recommendations to the authorities in Bucharest regarding the judicial system.

(translated by bill)

12 November 2018
November 6, 2018 UPDATE

QATAR – Romanian Prime Minister Viorica Dancila who is heading a Romanian delegation to a three-day official visit to Qatar had talks on Tuesday with Sheik Abdullah Bin Nasser Bin Khalifa Al-Tahani, who is the country’s Prime Minister. The Romanian official evoked the important celebrations taking place in both countries this year, namely the anniversary of 140 years since the establishment of the state of Qatar and the celebration of 100 years since the Romanian modern state was formed.

MEETING – Federico Cafiero De Raho, Italy’s national anti-mafia prosecutor, met in Bucharest with Felix Banila, the chief prosecutor of the Romanian Directorate for the Investigation of Organized Crime and Terrorism (DIICOT). The purpose of the meeting was to set the priorities for the drawing up of a joint cross-border anti-mafia strategy. The meeting took place following the signing of a cooperation accord in Rome in December 2012. The next meeting will be held in the spring of 2019 in Italy.

EU – Romania supports the idea of a common solution at EU level as regards the taxation of digital services, and not individual solutions applied by each member state, Romanian Finance Minister Eugen Teodorovici said on Tuesday at the EU’s Council for Economic and Financial Affairs in Brussels. Teodorovici explained that different measures taken by member states might lead to a fragmentation of the domestic market. While proposals have been thoroughly discussed at technical level and progress has been achieved on a number of issues such as definitions, tax collection, and administrative cooperation, there are still differences between member states on several issues, including the precise scope of services which would be subject to the future tax. There will be further work at technical level in order to be able to reach an agreement at the Council meeting on 4 December.

INFLATION – Central Bank Governor Mugur Isarescu said Tuesday that the annual inflation rate will continue its downward trend in the upcoming months. Also, according to preliminary data from the Central Bank the annual inflation rate will go down to the level of 3.5%, Isarescu said at a press conference. He also said that the inflation rate is influenced by the evolution of the price of fuel, gas and electricity, food products and tobacco, the labor market conditions and the fiscal policy.

PROSECUTOR’S OFFICE – Romanian President Klaus Iohannis said Tuesday he would not take any decision as regards the request for the dismissal of the country’s Prosecutor General, Augustin Lazar, until the appeal that the latter filed is solved. Augustin Lazar required, in Court, the suspension of the procedure for his revocation, initiated by Justice Minister Tudorel Toader, and filed a complaint with the Justice Ministry against the evaluation report drawn up by Minister Toader.

IMF – An IMF delegation, led by the head of the mission for Romania Jaewoo Lee is in Bucharest over November 6th – 12th. The team is assessing the countrys latest economic and financial developments and holds talks on the 2019 budget. At present, Romania is not running an agreement with the IMF but this financial institution is yearly assessing the evolution of the Romanian economy. Talks are compulsory for all member states as they are aimed at issuing monetary, financial and economic guidelines, which enables a country to obtain stability and a positive economic development.

DEFENCE – Romanias Chief of Staff, General Nicolae Ciuca is paying a working visit to Greece starting on Tuesday. The agenda of the talks the Romanian official is going to have with his Greek counterpart includes issues such as the way in which Romania and Greece may contribute to strengthening security on the Alliances eastern flank. Concrete ways of cooperation between the armies of the two NATO allies are also to be discussed at both bilateral and regional levels.

VISIT The mayor of Bucharest Gabriela Firea is continuing her visit to Madrid where she will sign a cooperation agreement with her Spanish counterpart Manuela Carmela Castrillo. The agreement will include several domains, such as sustainable development, infrastructure, education, culture and tourism. On Monday, mayor Firea participated in an international forum, which brought together experts and mayors from 300 cities the world over, which focused on preventing city violence. During her visit, Firea will have a series of meetings with Spanish experts on smart-city and infrastructure as well as with representatives of companies specialized in urban planning.

6 November 2018
November 6, 2018

IMF An
IMF mission, led by the head of the mission for Romania Jaewoo Lee is in
Bucharest over November 6th – 12th. The team is assessing
the country’s latest economic and financial developments and holds talks on the
2019 budget. At present, Romania is not running an agreement with the IMF but
this financial institution is yearly assessing the evolution of the Romanian
economy. Talks are compulsory for all member states as they are aimed at
issuing monetary, financial and economic guidelines, which enables a country to
obtain stability and a positive economic development.

VISIT The mayor of Bucharest Gabriela Firea is continuing her visit to
Madrid where she is expected to sign a cooperation agreement with her Spanish
counterpart Manuela Carmela Castrillo. The agreement will include
several domains, such as sustainable development, infrastructure, education,
culture and tourism. On Monday, mayor Firea participated in an international
forum, which brought together experts and mayors from 300 cities the world over,
which focused on preventing city violence. During her visit, Firea will have a
series of meetings with Spanish experts on smart-city and infrastructure as
well as with representatives of companies specialized in urban planning.

TENNIS Romanian tennis player Simona Halep, who will keep her first position
in the world ranking for the second year in a row, boasts the best percentage
of wins in the professional women’s tennis circuit in 2018 – 80.7%. Halep, who
participated in 17 tournaments, has obtained 46 wins and lost 11 matches,
according to the WTA webpage. The Romanian won titles in Shenzhen, Roland
Garros and Montreal and played finals in the Australian Open, Rome and
Cincinnati. Halep has also won most of the money in the WTA circuit, 7.4
million dollars. Romania ranks third in terms of top-100 players, on the same
position with the Czech Republic, after the USA and Russia. In terms of the
titles won in 2018, Romania comes fourth, together with France and Russia, each
with four titles. The Czechs have reaped 7 titles, Ukraine 6 and Germany 5.

ELECTION American citizens are going to
the polls on Tuesday, November 6, voting in the midterms and in local
elections, but at the same time, this is believed to be to a large extent a
vote on the Trump presidency. In these elections, 35 Senate seats are being
contested, of a total of 100, and all the 435 members of the House. Dozens of
US states are holding regional and local elections. These midterms will
establish party dominance in the two chambers of Congress until 2020. Democrats
are expected to take back control of the House, while Republicans are expected
to hold on to their majority in the Senate.

DEFENCE As of today Romania’s Chief of Staff, General Nicolae Ciuca
is paying a working visit to Greece. The agenda of the talks the Romanian
official is going to have with his Greek counterpart includes issues such as
the way in which Romania and Greece may contribute to strengthening security in
the Alliance’s eastern flank. Concrete ways of cooperation between the armies
of the two NATO allies are also to be discussed at both bilateral and regional
levels.

QATAR Romanian Prime Minister Viorica Dancila is heading a Romanian
delegation to a three-day official visit to Qatar. The Romanian will be having
talks with his royal highness Sheik Abdullah Bin Nasser Bin Khalifa Al-Tahani.
Earlier the Romanian official had paid a visit to the Sultanate of Oman and
participated in the inauguration of the Romanian embassy in Muscat on Monday. The
Romanian official attended a business forum in the capital of Oman also on
Monday when she presented investment opportunities Romania offers in
agriculture, tourism, transport, education, healthcare, research and
innovation. The Romanian official underlined Romania’s friendly business
environment, which got improved through the latest legislative amendments to
the law on public-private. The Romanian Prime Minister also held talks with His
Royal Highness Sayyid Fahd bin Mahmoud al-Said, Prime Deputy Prime Minister
with the Ministers Council of the Oman Sultanate. (translated by bill)

6 November 2018
October 31, 2018

MOTION — The Chamber of Deputies has today rejected by voting the simple motion tabled by two opposition parties, the National Liberal Party and the Save Romania Union, against justice minister Tudorel Toader. He had been accused by the signatories of having abandoned justice in the hands of criminals. In response, Toader said during the debates held in a plenary session on Tuesday that he took action so that citizens be not sent to court unjustly. We recall that minister Tudorel Toader initiated the procedure to remove from office Romania’s General Prosecutor, Augustin Lazar, whom he reproached that he had stirred constitutional conflicts and of having a political public discourse, making accusations of the legislative and executive power. Toader’s arguments in favour of Augustin Lazar’s removal from power have been rejected by Lazar and a large part of the magistrates as ungrounded. Toader evoked similar arguments in the case relating to the request of sacking the former head of the National Anti-Corruption Directorate, Laura Codruta Kovesi, whom Klaus Iohannis had to revoke following a ruling issued by the Constitutional Court.

PITTSBURGH — The Romanian Foreign Ministry has firmly condemned the armed attack against a synagogue in Pittsburgh, the US, on October 27, which left many victims, a communiqué released by the Romanian Foreign Ministry reads. The Romanian Foreign Ministry firmly condemns any Anti-Semitic gesture and supports the efforts made by the international community in preventing, fighting and punishing acts of racial discrimination, xenophobia and intolerance, the communiqué also reads. 11 people have been killed and six injured on Saturday, when a man opened fire at the believers in a synagogue in Pittsburgh. The perpetrator of the attack will be prosecuted, among others, for anti-Semitic crime and he might get a death penalty. This has been the most violent anti-Semitic attack carried out in the US over the past decades.

ROMANIAN-SWISS RELATIONS –President Klaus Iohannis on Thursday will receive the President of the Swiss Confederation, Alain Berset, who is paying an official visit to Bucharest on October 31 and November 1. The two officials will approach ways to develop bilateral relations, aspects related to the focal points on the European agenda, including Switzerland’s financial contribution to the EU Cohesion Fund, as well as regional issues. The visit to Romania comes against the backdrop of efforts to boost bilateral dialogue and Romania’s holding the rotating presidency of the EU Council in the first half of 2019. Klaus Iohannis will assure the Swiss side of Romania’s further support for promoting an open, constructive and mutually advantageous dialogue, between the EU and the Swiss Confederation.

IMF — An IMF mission led by the head of the IMF mission to Romania, Jaewoo Lee, will be in Bucharest between November 6 and 12, the IMF Resident Representative in Romania and Bulgaria, Alejandro Hajdenberg has said. According to him, the IMF team will analyse the latest economic and financial evolutions in Romania, will update the macro-economic outlooks and will discuss about the 2019 budget. Romania has no ongoing financing agreement with the IMF, but that financial institution is analyses the evolution of the Romanian economy every year.

RADIO ROMANIA — On November 1, Radio Romania celebrates 90 years since the first broadcast was aired. The series of events organised on this occasion continues today with a concert given by the Radio Chamber Orchestra, conducted by Joseph Horvath. On Thursday, an extraordinary concert will be given by the National Radio Orchestra, alongside the Academic Choir and the Radio Children’s Choir, under the baton of Cristian Mandeal. Also on Thursday, the national public radio will air the inaugural episode of the first radio sitcom in Romania, titled “Undeva în 28” (literally, “Somewhere in 28” in Romanian).

PUMPKIN — Spain, France, Germany, Portugal, Poland, Bulgaria and Romania were the largest pumpkin and gourd producers in the EU, according to data released by Eurostat on Wednesday, when Halloween is being celebrated. Some 24 thousand hectares of land were cultivated with these vegetables. The largest producers of pumpkin and gourd from the whole of the EU last year were Spain with 115,000 tons and France with 96,000 tons. Romania ranked seventh with over 20 thousand tons.

WEATHER — Romania enjoys lots of sunshine today. The highs of the day range from 18 to 28 degrees Celsius. The noon reading in Bucharest was 25 degrees.

31 October 2018
June 7, 2018 UPDATE

TENNIS Romanian tennis player Simona Halep,
the world’s number one and the competition’s odds-on favourite, on Thursday
qualified for the finals of Roland Garros, the second Grand Slam tournament of
the year. In the semifinals, Halep outclassed 6-1, 6-4 Spanish Garbine
Muguruza, the world’s number three and winner in Paris two years ago. The other
semifinals game US player Sloane Stephens has defeated her compatriot Madison
Keys in two sets, 6-4, 6-4. We recall that Halep lost two finals in France, in
2014 and 2017 and has also lost the finals in Melbourne this year.

CCR Romania’s Constitutional Court (CCR) on
Thursday published the explanatory statement through which it had ruled that
the head of state must issue a decree on sacking the country’s anti-corruption
chief prosecutor, as a legal conflict of constitutional nature was detected.
The conflict was caused by the president’s refusal to greenlight a proposal on
sacking the prosecutor issued by the country’s Justice Minister. The Court
explains that under the Constitution, prosecutors are doing their jobs under
the authority of the Justice Minister who is also a decision-making factor in
the prosecutors’ activity. The CCR has also explained the president does not
have the constitutional competence to bring arguments against the sacking
proposal tabled by the field minister. We recall that Romania’s president Klaus
Iohannis had turned down as ungrounded a request by Justice Minister Tudorel
Toader to sack chief prosecutor Laura Codruta Kovesi, the head of the country’s
main Anti-corruption Agency (DNA). The CCR’s decision calling for Kovesi’s
dismissal has attracted a lot of heat from the opposition and civil society
alike at the same time fueling speculations that in its current form the
Court’s verdicts might be politically influenced.

GROWTH Romania posted solid economic
growth in 2017, low unemployment levels and an improving financial sector,
according to a report published on Wednesday by the International Monetary Fund
after consultations with Romania. The IMF experts warn, however, that the
Romanian economy is showing signs of overheating. Public investment fell
significantly in percent of GDP amid a low absorption of EU funds, while the
government and current accounts deficit widened to 2.8% and 3.4% of the GDP,
respectively, the IMF report also shows. Romania is expected to see a 5%
economic growth rate in 2018, accompanied by a current account deficit and
elevated inflation.

VISIT The Romanian president Klaus
Iohannis is paying an official visit to Poland to attend a top-level meeting of
the B9 Format that includes NATO members from central and eastern Europe.
Iohannis and his Polish counterpart Andrzej Duda on Thursday held talks on the
strategic partnership between the two countries and regional, European and
security cooperation. The two officials also reviewed the excellent bilateral
cooperation mainly in the economic and defence fields. Also on Thursday
Iohannis and Duda attended the opening of an exhibition entitled A centennial
of the Alliance. Romanian-Polish diplomacy 1918-1939 staged by the Romanian
Cultural Institute in Warsaw together with the Romanian Embassy and the support
of the Foreign Ministries of the two countries as part of the celebrations of
the 100th anniversary of the creation of modern Romania and the
centenary of Polish independence.

(translated by bill)

7 June 2018
7 June, 2018

B9 Format. The
Romanian president Klaus Iohannis is on an official visit to Poland to attend a
top-level meeting of the B9 Format that includes NATO members from central and
eastern Europe. Iohannis and his Polish counterpart Andrzej Duda are having
talks on the strategic partnership between the two countries and regional,
European and security cooperation, according to a release from the President’s
Office in Bucharest. The two officials are also expected to review the results
of the defence cooperation as part of the Bucharest Format to prepare the B9
meeting on Friday co-chaired by the two heads of the state. Also today,
Iohannis and Duda will be attending the opening of an exhibition entitled A
centennial of the Alliance. Romanian-Polish diplomacy 1918-1939 staged by the
Romanian Cultural Institute in Warsaw together with the Romanian Embassy and
the support of the Foreign Ministries of the two countries as part of the
celebrations of the 100th anniversary of the creation of modern
Romania and the centenary of Polish independence.

Trip. The Romanian prime minister Viorica Dancila is to be
received today by Portuguese president Marcelo Rebelo de Sousa on the last day
of her official visit to Lisbon. On Wednesday, she met her counterpart Antonio
Costa and had talks about ways to boost economic ties and cooperation in the
military, strategic and cyber security areas, as well as European cooperation
in the run-up to Romania’s holding the EU presidency in the first half of 2019.

NATO. A two-day
meeting of NATO defence ministers begins today in Brussels. Romania is
represented by its defence minister Mihai Fifor. The agenda of the first day
features a presentation of the stage of implementing the allied deterrence and
defence posture and ways to make it more efficient. Of particular interest for
Romania is the consolidation of allied advanced presence for NATO’s entire eastern
flank, including the Black Sea region. Another area discussed on the first day
of the meeting is the fair distribution of responsibilities within NATO. Talks
will also look at aspects related to the fight against terrorism and the
progress made for the launching of a new NATO training mission in Iraq.

Investigation. Romania saw the highest number
of investigations into the use of EU funds in 2017, namely 11, of which 8 ended
with recommendations, shows a report by the European Anti-Fraud Office (OLAF).
Hungary, Poland and Greece were next. Illustrative in Romania’s case are two
investigations conducted into projects financed by the European Regional
Development Fund. The representatives of a municipality, the
beneficiary, colluded with representatives of the company who designed the
technical specifications for a road, in order to establish restrictive criteria
in the tender documentation that would benefit one particular economic
operator. The two colluding organisations falsified a large number of
documents, including the technical project and memorandum for the road
construction, the report by the European
Anti-Fraud Office also notes. The damage caused to the EU budget has
been calculated at some 21 million euros.

IMF report. Romania
posted solid economic growth in 2017, low unemployment levels and an improving
financial sector, according to a report published by the International Monetary
Fund after consultations with Romania. The IMF experts warn, however, that the
Romanian economy is showing signs of overheating. Public investment fell
significantly in percent of GDP amid a low absorption of EU funds, while the
government and current account deficit widened to 2.8% and 3.4% of the GDP,
respectively, the IMF report also shows. Romania is expected to see a 5%
economic growth rate in 2018, accompanied by a current account deficit and
elevated inflation.

Tennis. The Romanian and
world no. 1 Simona Halep today faces the 2016 champion and world no. 3 Garbine
Muguruza of Spain in the semifinals of the French Open, the second Grand Slam tournament
of the year. The other semifinal is an all-American affair, with world no. 10
Sloane Stephens taking on the world no. 13 Madison Keys. Halep was in two
French Open finals, in 2014 and again last year, but lost both of them. She
played another Grand Slam final this year at the Australian Open, which she
again lost.

7 June 2018
April 22, UPDATE

FINANCES – Romania will keep its deficit below 3%, as undertaken before international financial institutions, and the measures taken in 2018 will secure sustainable economic growth both for this year and in the future, the Finance Minister Eugen Teodorovici said at a meeting with Poul Thomsen, director of IMFs European Department. According to a news release issued on Sunday by the Ministry for Public Finances, on April 20-21 Eugen Teodorovici took part in the spring meeting of the IMF and World Bank in Washington. The Romanian official also had a meeting with Cyrill Muller, World Bank vice-president for Europe and Central Asia. The Finance Minister proposed to the WB leaders a new approach on loan granting, which would make spending more flexible, depending on the stage of preparation and implementation of projects. According to the Ministry, the agenda of the Romanian delegation also included meetings with representatives of investment banks, rating agencies and officials of international financial institutions.

CONFERENCE – The Speaker of the Senate of Romania, Călin Popescu-Tăriceanu, and of the Chamber of Deputies, Liviu Dragnea, will take part on Monday and Tuesday in the Conference of Speakers of EU Parliaments, held in Tallinn, Estonia. Taking part will be over 40 speakers of national parliaments, as well as the President of the European Parliament, Antonio Tajani. The main topics on the agenda are the future of the European Union and the EU security and defence.

HUMAN RIGHTS – Corruption remains widespread in Romania, and bribe-giving is still common practice in the public sector, reads the 2017 Country Report on Human rights issued by the US State Department. Laws were not always implemented efficiently, and officials, judges included, sometimes engaged in corrupt practices with impunity. Immunity from criminal prosecution held by existing and former cabinet members who were also members of parliament sometimes blocked investigations, the report also reads. The same document notes that some Romanian politicians own or control media organisations, influencing their editorial policy. As regards prisons, the report mentions that they remained overcrowded and in breach of international standards, although the authorities took some steps to address the situation. In Romania, the US State Department says, some cases of police abuse were reported in 2017 as well, most of them going unpunished. So were cases of anti-Semitism, Holocaust denial, and discrimination against the Roma, people with disabilities and sexual minorities. Child abuse and neglect cases were also reported.

ANTI-CORRUPTION – The Government of Romania intends to notify the Constitutional Court with respect to President Klaus Iohannis decision not to dismiss the chief prosecutor of the National Anti-Corruption Directorate, Laura Codruta Kovesi. A meeting in this respect will be held on Monday by PM Viorica Dancila and the Justice Minister Tudorel Toader, the one who requested the dismissal. According to him, the President gave no judicial or managerial arguments to substantiate his decision, which was exclusively political in nature. The head of state said the dismissal request was ungrounded, which was also the official opinion of the Superior Council of Magistracy.

TENNIS – Romanias womens tennis team defeated Switzerland in the playoffs for the Fed Cup World Group, hosted by the north-western Romanian city of Cluj-Napoca, general score 3-1. In the last match of the competition, the Swiss pair Viktorija Golubic/Jil Teichmann defeated Sorana Cîrstea and Mihaela Buzărnescu. In the first match of the day, world no 1 Simona Halep outplayed the Swiss Patty Schnyder and won the decisive point for Romanias qualification. The previous day, Halep won against Viktorija Golubic, while Irina-Camelia Begu defeated Timea Bacsinszky. Demoted in 2016 from Fed Cups World Group, Romania thus returns to the world tennis elite in the 2019 season.

(translated by: Ana-Maria Popescu)

22 April 2018
IMF forecasts for Romania

According to the latest World Economic Outlook,
the International Monetary Fund has revised its forecast concerning the growth
of the Romanian economy up from 4.4% to 5.1%, which means Romania is expected
to have the second-highest growth rate in Europe this year. The IMF has also
revised up to nearly 5% its inflation rate forecast, one percentage point
higher than the estimates of last October. The report also says that consumer
prices are expected to grow at a slower pace next year, when the IMF expects a
slackening in the GDP increase of up to 3.5%. The Fund has also revised its
forecast on the current account deficit in Romania up by nearly one percentage
point compared with previous estimates. This year and the next, the
unemployment rate is estimated to stand at 4.6%.

In another development, a Deloitte Romania
survey warns that fiscal instability is the biggest threat to business. That is
the reason why financial managers in Romania say they focus more on
consolidating their companies rather than on expanding them. The survey looks
at various aspects such economic prospects, the business environment, financial
forecasts and digitalisation. Most financial managers foresee that, although
economic growth will continue, the inflation rate and financing costs will also
go up. Almost 60% of managers in Romania believe that
fiscal instability is the main threat to business and so they are willing to
take fewer chances. Zeno Caprariu, a manager with Deloitte Romania, explains:

Investors are still content with Romania
because if they hadn’t been, they would have left. However, as the survey
shows, they have reservations about the future. This is an alarm signal because
these reservations may later lead to their leaving the country, cutting down on
their activity or relocating it. A clearer fiscal and more substantial
environment with fewer taxes is desirable.

Overall, Europe will this year see a 2.7%
economic growth rate, while emerging Europe, which also includes Romania,
will see a 4.3% increase in the GDP in 2018, as the IMF estimates in its World
Economic Outlook.

18 April 2018
IMF forecasts for Romania

According to the latest World Economic Outlook,
the International Monetary Fund has revised its forecast concerning the growth
of the Romanian economy up from 4.4% to 5.1%, which means Romania is expected
to have the second-highest growth rate in Europe this year. The IMF has also
revised up to nearly 5% its inflation rate forecast, one percentage point
higher than the estimates of last October. The report also says that consumer
prices are expected to grow at a slower pace next year, when the IMF expects a
slackening in the GDP increase of up to 3.5%. The Fund has also revised its
forecast on the current account deficit in Romania up by nearly one percentage
point compared with previous estimates. This year and the next, the
unemployment rate is estimated to stand at 4.6%.

In another development, a Deloitte Romania
survey warns that fiscal instability is the biggest threat to business. That is
the reason why financial managers in Romania say they focus more on
consolidating their companies rather than on expanding them. The survey looks
at various aspects such economic prospects, the business environment, financial
forecasts and digitalisation. Most financial managers foresee that, although
economic growth will continue, the inflation rate and financing costs will also
go up. Almost 60% of managers in Romania believe that
fiscal instability is the main threat to business and so they are willing to
take fewer chances. Zeno Caprariu, a manager with Deloitte Romania, explains:

Investors are still content with Romania
because if they hadn’t been, they would have left. However, as the survey
shows, they have reservations about the future. This is an alarm signal because
these reservations may later lead to their leaving the country, cutting down on
their activity or relocating it. A clearer fiscal and more substantial
environment with fewer taxes is desirable.

Overall, Europe will this year see a 2.7%
economic growth rate, while emerging Europe, which also includes Romania,
will see a 4.3% increase in the GDP in 2018, as the IMF estimates in its World
Economic Outlook.

18 April 2018
April 17, 2018 UPDATE

REVOLUTION CASE – Army prosecutors have announced the extension of the interval for the criminal prosecution of the former president of the country Ion Iliescu to December 27-31, 1989, for which an endorsement of investigation is not necessary. Ion Iliescu has been summoned to the Prosecutor General’s Office to be informed about the start of his prosecution for crimes against humanity, in the 1989 Revolution Case. On April 13, the current president Klaus Iohannis endorsed the start of the criminal prosecution of Ion Iliescu, of the former Prime Minister Petre Roman and of the former deputy Prime Minister Gelu Voican Voculescu in the Revolution Case. The three ex-officials are now being prosecuted and can be sent to court for crimes against humanity, allegedly committed between the 22 and the 31 of December 1989, when they were holding positions in the National Salvation Front Council, which back then was holding both the executive and the legislative power. According to prosecutors, the armed incidents that occurred after December 22, in several towns and cities across Romania, are indicative of the fact that everything occurred as the result of a pre-established plan, aimed at helping the new leaders take over power and gain legitimacy. The three former officials, though, say they are innocent. According to official statistics, in December 1989 more than 1,100 people were killed and more than 3,000 were wounded, mostly after the arrest of dictator Ceausescu and his wife.

DIPLOMACY – Romanian President, Klaus Iohannis on Tuesday received the foreign minister of the United Arab Emirates, Sultan al Jaber. According to the Presidential Administration, on the occasion, the Romanian president had special words of appreciation for the stage of bilateral relations, which are very good at political level. Also, President Iohannis said efforts to give an impetus to the two way trade exchanges and to boost investments are further a priority in the relation with the United Arab Emirates, (UEA), which is Romanias largest economic partner in the Gulf area. In turn, Sultan al Jaber said there are potential investment projects, particularly in such domains as energy, transport, infrastructure, logistics, agriculture, tourism and real estate. Also on Tuesday, Sultan al Jaber had talks with his Romanian counterpart, Teodor Melescanu, on trade relations. The two officials also attended the proceedings of the first session of the Romania-UEA Joint Commission.

BUCHAREST FORMAT – Bucharest is hosting the first parliamentary summit of the Bucharest Format (B9), attended by representatives of nine European countries and high-ranking NATO officials. The summit is aimed at strengthening the role of national parliaments in the security and defence fields. The agenda of the event, which will last until Thursday, includes topics such as the future presence of NATO, the defence and deterrence posture, fighting terrorism, perceptions regarding the threats facing the participant countries and legislative consolidation in the defence field. The B9 summit is aimed at conveying a unitary and coherent message concerning the strengthening of NATO’s Eastern flank, ahead of the NATO summit to be hosted by Brussels in July.

IMF – The IMF has revised upward, from 4.4% la 5.1%, the outlook for the Romanian economy this year, according to the World Economic Outlook report, released on Tuesday. In 2019, the IMF expects Romanias economy will slow down significantly, down to 3.5% of the GDP. In terms of inflation this year, the forecast has been revised upward, from 3.3% to 4.7%. Also in 2018, the IMF estimated the current account deficit will stand at minus 3.7% and the unemployment rate at 4.6%.

SUMMIT – On May 4, the Bulgarian city of Ruse will play host to an informal meeting of the presidents of Bulgaria, Austria and Romania, the countries holding successively the rotating presidency of the EU Council as of January 1, 2018. According to the press office of the Bulgarian presidential administration, the three heads of state will debate topics of European interest, which are also among the priorities of the current Bulgarian presidency of the EU Council. The meeting in Ruse is an expression of the three countries’ political will to ensure a common stand with regard to the main topics on the EU agenda, such as the European prospects of the Western Balkans, the future of the cohesion policy and the interconnection of the energy networks in the region.

HANDBALL
– The Romanian women’s handball champions CSM Bucharest will meet the Hungarian
team Gyor ETO in the Champion League semi-finals, the so called Final Four. If it goes past the Hungarian team, CSM
Bucharest will face the winning team of the match between HC Vardar of
Macedonia and Rostov-Don of Russia. The semifinals and the final will be held
on May 12 and 13, in Budapest, where the Romanian team won the competition back
in 2016. (Translated by M. Ignatescu and D. Vijeu)

17 April 2018
March 11-16

IMF
recommendations for Romania

The International Monetary Fund recommends a
balanced mix of monetary and fiscal policies and support for investment, so
that Romania may be able to uphold the growth pace reported last year. An IMF
mission visited Bucharest this week. Fund officials met with Prime Minister
Viorica Dancila, highlighting the need to step up tax collection and maintain
public spending within sustainable limits. The Prime Minister said the economic
and fiscal measures adopted by the Government are viable, estimating an
economic growth of 6.1%, mostly based on investments made with EU funds. For
nearly two weeks the IMF made a comprehensive analysis of Romania’s economy, a
process that must be seen through every year in every EU Member State that has
no ongoing agreement with the IMF. Fund officials met with authorities,
representatives of political parties, trade unions, business associations,
academia and banks.

Fickle
weather across the country

The heavy rainfall and the massive snow
meltdown triggered by the unexpectedly soaring temperatures across the country
have caused a rise in the flow of several rivers in Romania. According to the
Interior Ministry, floods affected dozens of villages in various areas, the
most serious of which were reported in central Romania. Line Minister Carmen
Dan went to personally ascertain the damages, trying to convince the locals to
leave their homes until the danger has passed.

Regional
meetings in Bucharest

Romania’s Foreign Minister Teodor Melescanu
received his Bulgarian and Greek counterparts in Bucharest, Ekaterina Zaharieva
and Nikos Kotzias, respectively. The three held talks during the
Romania-Bulgaria-Greece trilateral meeting and discussed issues of strategic
regional relevance, such as the developments in the Western Balkans, the
eastern neighbourhood, the Black Sea area, the Danube Strategy and the
prospects of the Middle East peace process . The three ministers agreed that
community funds are grounded on the principle of European solidarity, and that
the future EU budget should be balanced and not sacrifice subsidies to
agriculture and cohesion. Also this week Bucharest hosted a meeting of NATO
Defense Ministers from nine former communist states. The Ministers agreed that
NATO’s eastern flank must be consolidated. Romania’s Defense Minister Mihai
Fifor said allied presence is robust alongside NATO’s entire eastern flank,
both in the northeast, in the Baltic States, as well as in the southeast, in
Romania and the Black Sea region. Bucharest and Warsaw are the engine of the
so-called B9 Initiative, which also comprises Bulgaria, the Czech Republic,
Estonia, Latvia, Lithuania, Slovakia and Hungary. The Foreign Ministers of the
nine countries wanted to reach a common approach ahead of the NATO Summit
scheduled to take place in Brussels in July.

Solidarity with the United Kingdom

In a message launched on Wednesday, the Romanian Foreign
Ministry has expressed solidarity with the United Kingdom and firmly condemns
the use of a military-grade nerve agent on the territory of an Allied state.
The reaction comes after British Prime Minister Theresa May has said Moscow was
guilty of the poisoning, in south-western Great Britain, of the former Russian
double agent Serghei Skripal, of his daughter and of a British police officer.
Many voices of the international community have deemed Skripal’s poisoning as a
severe breach of international norms and agreements on chemical weapons.

A unionist wave is sweeping the Republic of Moldova

The number of communes and towns in the
Republic of Moldova (a former Soviet state with a predominantly Romanian
speaking population) where mayors and local councils have adopted symbolical
declarations stating their wish to reunite with Romania has reached 120. These
local leaders as well as all those supporting the reunification idea are
expected in Chishinau this month, to attend a big people’s assembly to mark 100
years since Bessarabia united with Romania.
Initiated by the Alliance for the Centennial Anniversary, made up of
civic organisations from the Republic of Moldova, Romania and the diaspora, the
meeting is meant to reiterate their confidence that the Union is the only solution
to restoring historical truth, joining the EU and NATO, to ensuring welfare and
freedom. A province with a majority Romanian-speaking population and part of
the Tsarist Empire, Bessarabia united with Romania in the wake of WW I, on
March 27, 1918. The Soviet Union re-annexed it, in 1940, following an
ultimatum, and on part of its territory, the current Republic of Moldova was
set up.

Romanian
books in Germany

20 years on, since it was honorary guest
of the International Book Fair in Leipzig, in eastern Germany, Romania has
again enjoyed this status, this week. One of the oldest events of its kind in
the world, which promotes reading, has brought together over 2,500 exhibitors
from 48 countries. Visitors had the chance to meet Romanian writers who are
already well known in the German-speaking area such as Nora Iuga, Mircea
Cărtărescu, Norman Manea and Filip Florian, as well as budding writers like
Lavinia Branişte and Bogdan-Alexandru Stănescu.Over 40
translations from Romanian literature, most of them supported by the National
Book Centre with the Romanian Cultural Institute have been promoted.

17 March 2018
March 16, 2017 UPDATE

ARCTIC ULTRA – The Romanian Tiberiu Useriu, aged 44, last night won, for the third time in a row, the 6633 Arctic Ultra, the most difficult marathon in the world, organized in the polar circle area. The race started on March 8th, and Tiberiu Useriu managed to conclude it after 7 days and 5 hours. Another three Romanians participated in the marathon: Avram Iancu, the first Romanian to swim the English Channel, and also Florentina Iofcea and Polgar Levente. Unfortunately, all three of them had to pull out before the end of the race.

IMF – Jaewoo Lee, the head of the IMF Mission for Romania, together with Alejandro Hajdenberg, the Resident Representative for Romania, Friday presented the findings of the visit the IMF experts paid to Romania for a week. The IMF says without a change in the current policies, Romanias economic growth will be increasingly fragile, and recommends a balanced mix of monetary and fiscal policies. The institution also recommends increased efficiency in spending by prioritising major investment projects, increasing EU fund absorption and enforcing the fiscal responsibility law. During the meetings with Romanian officials, the IMF experts emphasised the importance of improving budget collection and of keeping public spending within sustainable limits. Bucharest does not have a financing agreement at present, but the international financial institution assesses the state of the Romanian economy on an annual basis, and its experts have come to Romania for the annual consultations, an exercise that all member states must undergo.

EDUCATION – Over 100 universities and education institutions in 18 countries will be represented on Saturday and Sunday in Bucharest in the 22nd Romanian International University Fair (RIUF). According to the organisers, attending will be institutions from Sweden, Norway, Denmark, Belgium, France, Switzerland, Romania, the UK, the Netherlands, Germany, Italy, Ireland, the USA, Singapore, the United Arab Emirates, Bahrain, Greece, and Bulgaria. Visitors will be able to get information on tuition-free education options in Scandinavian countries, as well as on a 3,000,000 euro grant fund for BA and MA programmes offered by institutions in Britain, the Netherlands and Germany. The fairs YouForum section comprises over 30 workshops, panel discussions and presentations. The topics approached during the 2 days will include online marketing, branding, gaming, IT, architecture, non-formal education and technology.

ARTEFACTS – The office of the Prosecutor General of Romania Friday announced that 164 ancient coins, of which 20 Koson-type Dacian coins stolen from the Orastie archaeology site, were recovered following searches conducted in Austria and Germania. According to a news release issued on Friday, the criminal justice division with the Prosecutors Office attached to the High Court of Cassation and Justice is investigating a case of money laundering and aiding and abetting aggravated theft, involving items from the Romanian national cultural heritage: bracelets, coins, shields and other artefacts stolen from the Orastie Mountains sites and illegally sold in the international market. With support from Eurojust, Romanian officers from the Cultural Heritage Protection Service worked together with relevant judicial authorities from Austria and Germany a large-scale international operation conducted in February – March this year.

SALISBURY ATTACK – British police Friday announced opening an investigation into the murder of Russian Nikholai Glushkov, a close friend of oligarch Boris Berezovsky, found dead earlier this week at his home in London. Previously, authorities announced that, in the wake of the poisoning of the Russian former double agent Sergey Skripal and of his daughter in Salisbury, police would resume inquiries into a number of deaths that have occurred in Britain over the past few years. The UK, Germany, France and the US issued a joint statement arguing that Russias involvement was the only plausible explanation for the incident. On the other hand, Moscow dismissed the allegations as groundless. The Salisbury attack will be the main topic of a meeting between the NATO Secretary General Jens Stoltenberg with the British Foreign Secretary Boris Johnson, in Brussels on Monday. Stoltenberg says the incident is evidence of Moscows years-long reckless conduct.

(translated by: Ana-Maria Popescu)

16 March 2018
March 16, 2017 UPDATE

ARCTIC ULTRA – The Romanian Tiberiu Useriu, aged 44, last night won, for the third time in a row, the 6633 Arctic Ultra, the most difficult marathon in the world, organized in the polar circle area. The race started on March 8th, and Tiberiu Useriu managed to conclude it after 7 days and 5 hours. Another three Romanians participated in the marathon: Avram Iancu, the first Romanian to swim the English Channel, and also Florentina Iofcea and Polgar Levente. Unfortunately, all three of them had to pull out before the end of the race.

IMF – Jaewoo Lee, the head of the IMF Mission for Romania, together with Alejandro Hajdenberg, the Resident Representative for Romania, Friday presented the findings of the visit the IMF experts paid to Romania for a week. The IMF says without a change in the current policies, Romanias economic growth will be increasingly fragile, and recommends a balanced mix of monetary and fiscal policies. The institution also recommends increased efficiency in spending by prioritising major investment projects, increasing EU fund absorption and enforcing the fiscal responsibility law. During the meetings with Romanian officials, the IMF experts emphasised the importance of improving budget collection and of keeping public spending within sustainable limits. Bucharest does not have a financing agreement at present, but the international financial institution assesses the state of the Romanian economy on an annual basis, and its experts have come to Romania for the annual consultations, an exercise that all member states must undergo.

EDUCATION – Over 100 universities and education institutions in 18 countries will be represented on Saturday and Sunday in Bucharest in the 22nd Romanian International University Fair (RIUF). According to the organisers, attending will be institutions from Sweden, Norway, Denmark, Belgium, France, Switzerland, Romania, the UK, the Netherlands, Germany, Italy, Ireland, the USA, Singapore, the United Arab Emirates, Bahrain, Greece, and Bulgaria. Visitors will be able to get information on tuition-free education options in Scandinavian countries, as well as on a 3,000,000 euro grant fund for BA and MA programmes offered by institutions in Britain, the Netherlands and Germany. The fairs YouForum section comprises over 30 workshops, panel discussions and presentations. The topics approached during the 2 days will include online marketing, branding, gaming, IT, architecture, non-formal education and technology.

ARTEFACTS – The office of the Prosecutor General of Romania Friday announced that 164 ancient coins, of which 20 Koson-type Dacian coins stolen from the Orastie archaeology site, were recovered following searches conducted in Austria and Germania. According to a news release issued on Friday, the criminal justice division with the Prosecutors Office attached to the High Court of Cassation and Justice is investigating a case of money laundering and aiding and abetting aggravated theft, involving items from the Romanian national cultural heritage: bracelets, coins, shields and other artefacts stolen from the Orastie Mountains sites and illegally sold in the international market. With support from Eurojust, Romanian officers from the Cultural Heritage Protection Service worked together with relevant judicial authorities from Austria and Germany a large-scale international operation conducted in February – March this year.

SALISBURY ATTACK – British police Friday announced opening an investigation into the murder of Russian Nikholai Glushkov, a close friend of oligarch Boris Berezovsky, found dead earlier this week at his home in London. Previously, authorities announced that, in the wake of the poisoning of the Russian former double agent Sergey Skripal and of his daughter in Salisbury, police would resume inquiries into a number of deaths that have occurred in Britain over the past few years. The UK, Germany, France and the US issued a joint statement arguing that Russias involvement was the only plausible explanation for the incident. On the other hand, Moscow dismissed the allegations as groundless. The Salisbury attack will be the main topic of a meeting between the NATO Secretary General Jens Stoltenberg with the British Foreign Secretary Boris Johnson, in Brussels on Monday. Stoltenberg says the incident is evidence of Moscows years-long reckless conduct.

(translated by: Ana-Maria Popescu)

16 March 2018