Radio România Internațional

Tag: IMF

  • March 16, 2018

    March 16, 2018


    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, are today presenting the conclusions of the visit that IMF experts have paid to Bucharest for a week. The IMF recommends a balanced mix of monetary and fiscal policies and support for investments, for the growth rate registered last year to be maintained this year. During talks with Romanian officials, the international experts highlighted the importance of improving budget collection and maintaining expenditure within reasonable limits. Currently, Bucharest no longer has a financing agreement with the IMF, but the latter carries out an annual assessment of the Romanian economy. This is a surveillance exercise that all member states must undergo.



    DNA – The Superior Council of Magistracy has published the motivation for the negative opinion it issued with regard to the Justice Ministers request to remove Laura Codruta Kovesi from the office of Chief-Prosecutor of the National Anticorruption Directorate (DNA). The Council states in the motivation that the request for dismissal made no reference to any violation of responsibility or to the managerial component targeted by the request. According to the prosecutors department of the Council, carrying out certain criminal procedures in a manner that is different from a previous interpretation of the Constitutional Court cannot be interpreted as a violation of responsibilities. The opinion issued by the Council of Magistracy is only advisory. According to the law, president Klaus Iohannis must make a decision with regard to Kovesis dismissal. He has stated though that both the National Anticorruption Directorate and its Chief Prosecutor have done a good job. We recall that Minister Tudorel Toader requested last month the removal of Laura Codruta Kovesi and presented 20 arguments to support his request. However, at the meeting of the Superior Council of Magistracy held two weeks ago, the Chief Prosecutor Laura Codruta Kovesi stated that the reasons invoked by Toader were unreal, ungrounded and unproven.



    POVERTY – The risk poverty among the employed population in Romania was almost double in 2016 as compared to the EU average, according to data made public by Eurostat on Friday. Romania registered the highest rate in the EU (18.9%), followed by Greece, Spain, Luxembourg, Italy and Bulgaria. The lowest risk of poverty was registered by Finland, the Czech Republic, Belgium and Ireland. On the other hand, the annual inflation rate in the EU dropped in 18 member states, stayed flat in two countries, and increased in seven, including Romania. In Bucharest, data published earlier by the National Statistics Institute show that in February the annual inflation rate went up to 4.7%, from 4.3% in January 2018, against the background of consumption goods becoming more expensive. For the end of the year 2019, the National Bank of Romania estimates an inflation rate of 3.1%.



    INVESTIGATION – British authorities have announced the resumption of investigations into a string of suspect deaths that have occurred in the past years on British soil, and also after the poisoning of the former Russian spy Serghei Skripal and his daughter. Great Britain, Germany, France and the US have issued a joint statement, saying that the only plausible explanation is Russias involvement. On the other side, Russia has termed the allegations a nonsense. The Salisbury attack will be the main subject on the agenda of the meeting that the NATO Secretary General Jens Stoltenberg will have with the British Foreign Secretary Boris Johnson. Stoltenberg has stated that the incident is evidence of Moscows reckless behavior for years. The NATO report presented on Thursday states that Russia is the main threat to the organization, against the background of Crimeas annexation, the support provided to the separatists in eastern Ukraine, the military presence in Georgia and the Republic of Moldova, the interference in the Western Balkan area and the attempts to undermine democratic elections and institutions.



    BOOK FAIR – As of today, Romania is one of the 45 participants in the Paris Book Fair, which has reached its 38th edition. Under the logo “Romania as you have never read it before”, the Romanian stand presents more than 50 recent titles and some 20 events, enjoying the participation of writers, translators, editors and diplomats. Also, Romania is a guest of honour at the International Book Fair in Leipzig, Germany, which started on Thursday. “Zoom in Romania” is the motto of Romanias participation, aimed at promoting Romanian contemporary authors in more than 70 events.




  • January 23, 2018

    January 23, 2018


    SCHENGEN – Romanias President Klaus Iohannis has today stated, at the annual meeting with the heads of the diplomatic missions accredited to Bucharest, that Romanias joining the Schengen area is essential. He has also stated that the logistics needed for Romanias holding the presidency of the EU Council in 2019 must be properly prepared. The head of state has given assurances that Romania will keep taking part in the debates on strengthening the economic and monetary union and has added that, unless it joins the Schengen area, Romania will not enjoy all the benefits ensured by its EU integration. The president has also stated that Romanias foreign policy pillars are the strategic partnership with the US and its membership to the EU and NATO. Klaus Iohannis has also stated that Bucharest firmly pleads for strengthening trans-Atlantic ties.



    OPPOSITION – The National Liberal Party, the main opposition party in Romania, has today presented the so called “black book of the PSD-ALDE governing”. The president of the party Ludovic Orban has stated that 2017 was a lost year for Romania and the country is heading in the wrong direction from a democratic, economic and social point of view. According to the analysis made by the liberals, out of the 724 measures that the government formed by the Social Democratic Party and the Alliance of Liberals and Democrats committed to implementing, only 33 were actually implemented, and as regards major fields such as education, health and the economy, less than 5% of the promised measures were taken. Also, budget expenditure exceeded revenues and the money was not used for development, it was mainly spent on personnel expenditure. The National Liberal Party also claims that, when the coalition started ruling, the inflation rate was 0.2%, to then reach 3.3% in 2017. Previously, Orban had announced that the liberals would establish the way in which they were going to act in Parliament to prevent the validation of the new governmental team, headed by the Social Democrat MEP Viorica Dancila. More on this after the news.



    JUSTICE LAWS – The Constitutional Court is today debating claims filed by the High Court of Cassation and Justice and the opposition National Liberal Party and Save Romania Union regarding the changes brought to the justice laws. One of the notifications concerns the setting up of the Special Prosecutors Office responsible for investigating judges and prosecutors. Magistrates believe that this breaks the principle of equality before the law, as they would become the only professional category in Romania to have a special office for their own prosecution. In turn, the liberals say that the changes brought to the justice laws break several constitutional principles, including the senators and deputies right to have legislative initiatives. On Saturday, dozens of thousand of people protested again against the ruling coalition in Romania, whom they blame for trying to subordinate magistrates and to put an end to the fight against corruption. The changes in the justice laws have also been criticized by president Klaus Iohannis, the media and some of Romanias western partners. The Constitutional Court will probably issue its final ruling on the matter next month.



    IMF – In an update on its bi-annual “World Economic Outlook”, the International Monetary Fund estimates that world economy will increase its growth rate to 4% in 2018 and 2019. Also, the report reads that last year, economic activity in Europe and Asia was surprisingly better than estimated, so the fund has revised upwards its estimates for the Eurozone, in particular for Germany, Italy and the Netherlands. According to the IMF, the US economy would register an economic growth rate of 2.7% in 2018, but that would slow down to 2.5% in 2019. The Chinese economy would register a rate of 6.6% this year, and 6.4% in 2019. As regards Romania, in its “World Economic Outlook”, published in October 2017, the IMF revised the growth rate estimated for Romania in 2018, from 3.4% to 4.4%.



    FLU – A 40-year old woman has died in Botosani, north-eastern Romania, of complications triggered by the flu. This is the third death caused by flu viruses this year in Romania, after a 69 year old woman in Bucharest and a 15-year old boy in Salaj, north-western Romania. The Health Minister Florian Bodog has called on family doctors to continue the anti-flu vaccination campaign this month too, especially of people who are at risk. According to the National Centre for Disease Surveillance and Control, the total number of cases of acute respiratory infections has reached 75,000. Specialists say that, as compared to the same period last season, the total number of ill people is smaller by some 25%.



    AUSTRALIAN OPEN – The pair made up of the Romanian tennis players Irina Begu and Monica Niculescu has qualified for the semifinals of the Australian Open, the first Grand Slam of the year, after a 3 set victory against the US couple Jennifer Brady/Vania King. Next, Begu and Niculescu will take on the Russians Ekaterina Makarova/Elena Vesnina, who won the title in Melbourne back in 2014. On Wednesday, Romanias only representatives in the singles, Simona Halep, takes on Karolina Pliskova of the Czech Republic. Halep is the worlds number one player and also first-seed at the Australian Open.


    (translated by Mihaela Ignatescu)


  • January 12, 2018

    January 12, 2018

    CONTRACT A contract has been signed in Bucharest today for the purchase of 227 Piranha armored fighting vehicles. Under the contract, the first 30 vehicles are to be delivered from Switzerland and the rest will be produced in Romania. The total cost of the purchase stays around 895 million euros. These vehicles offer the highest protection to personnel and can be equipped with various weapons. They are mainly used as personnel carriers but can be adjusted for medevac or other specific missions. The Defence Ministry is to also purchase 173 trucks that will be used as troops carriers or to provide logistics support.




    TENNIS Romanian tennis player Mihaela Buzarnescu has today defeated Ukrainian Lesia Tsurenko 6-1, 6-2 in the semifinals of the WTA tournament in Hobart, Australia with 225 thousand dollars in prize money. Mihaela, who on Monday is to join the worlds top 50 players for the first time in her career will be playing Belgian Elise Mertens (WTA 36) in the finals. Australian Open, the years first Grand Slam tournament is to commence on Monday with the worlds best player, Romanian Simona Halep, as the odds-on favourite. The Romanian will be playing Australian Destanee Aiava in the competitions first round. Besides Halep, the singles main draw has another five players from Romania, Sorana Cirstea, Irina Begu, Mihaela Buzarnescu, Monica Niculescu and Ana Bogdan. Marius Copil (ATP 93) will be representing Romania in the mens singles.




    TOUR Japans Prime Minister Shinzo Abe has today left Tokyo on a diplomatic tour to Central and Eastern Europe, which takes him to Estonia, Latvia, Lithuania, Bulgaria, Serbia and Romania. The Japanese official is trying to rally support for Tokyos firm stand against North Korea, France Press reports. This is the first such visit paid by a Japanese Premier to the region. The Japanese official is to be received by president Klaus Iohannis in Bucharest on Tuesday. The talks agenda includes the stage and prospects in the process of strengthening the very good relations of the Renewed Partnership between Romania and Japan at political, economic and cultural level as well as in terms of security and human relations, the Romanian presidency has announced. Other issues, such as the cooperation between the EU and Japan, regional developments with emphasis to the North Korean file as well as the Romanian-Japanese multilateral cooperation, are also to be tackled. This is the first visit to Romania by a Japanese Prime Minister and comes against the background of celebrating five years since the 2013 Renewed Partnership between Romania and Japan.




    GDP According to data released today by the National Institute for Statistics, in the third quarter of 2017, Romanias GDP registered an 8.8% growth as compared to the same period of 2016. The same data reveal the GDP saw a 7% rise in nine months. As compared to the second quarter of 2017, the GDP was 2.6% higher in the third quarter. The World Bank announced two days ago that it expected Romania to report a 6.4% GDP growth for 2017 against a June forecast of 4.4%. In November 2017, the National Forecast Committee revised up its forecast on Romanias economic growth from an earlier 5.6% to 6.1%. The IMF has also revised up its forecasts on Romanias economic development in 2017 from 4.2% to 5.5%.




    HANDBALL In Bolzano, Italy, Romanias national handball side will be playing the Faeroe Islands in the qualifiers for the 2019 World Handball Championship due in Germany and Denmark. On Thursday, the Romanian side coached by Spanish Xavier Pasqual, outperformed Italy 34 – 24 and is to take on Ukraine on Saturday. The games are played in the qualifiers group 3. 13 teams from Europe will be playing in the World Championships. Three European sides have already been qualified: champion side France as well as the host countries, Germany and Denmark.





    Translated by Daniel Bilt

  • October 10, 2017 UPDATE

    October 10, 2017 UPDATE

    RESHUFFLE — A decision on the relations between the Romanian Government and the main ruling party, the Social Democratic Party, PSD, as well as another decision on a prospective reshuffle of the Government will be made on Thursday by the National Executive Committee of PSD, Prime Minister Mihai Tudose and the PSD leader, Liviu Dragnea, announced on Tuesday. Earlier, the Prime Minister had made public his decision to reshuffle his cabinet. He underlined that several members of the Government who are involved in criminal investigations or whose performance has been unsatisfactory will be replaced. According to the Prime Minister, these Ministers mar the image of the Government and in some cases its relationship with the European Commission. Also on Tuesday, PM Mihai Tudose met with President Klaus Iohannis for talks about his intention to replace several members of his cabinet. According to the spokesperson for the Presidency, Klaus Iohannis considers that the ministers who have problems should either withdraw or be sacked from the Government. The Liberal Opposition has also called on the Prime Minister to replace all ministers who are involved in criminal investigations. We recall that three members of the Government, Deputy Prime Minister and Minister for Regional Development Sevil Shhaideh, Minister Delegate for European Funds Rovana Plumb and Minister Delegate for Liaison with Parliament, Viorel Ilie, are being investigated by anticorruption prosecutors.



    MOTION — The Chamber of Deputies in Bucharest on Tuesday debated a simple motion filed by the right-wing opposition against Health Minister Florian Bodog. The National Liberal Party, the Save Romania Union and the People’s Movement Party are calling for his resignation and for quick solutions in the field of healthcare. The opposition is criticizing the vaccine crisis and the ministry’s failure to implement infrastructure projects, in particular as regards emergency hospitals in Cluj, Craiova and Iasi. The vote is scheduled on Wednesday. The opposition also wants Bodog to step down amidst allegations of plagiarism over his PhD thesis, which Bodog has firmly dismissed.



    ROMANIAN ECONOMY- The International Monetary Fund has revised the outlook for the Romanian economy upward, from 4.2% to 5.5%, according to the institution’s “World Economic Outlook”, released on Tuesday. The IMF has also improved the forecast for the growth rate of the Romanian economy in 2018, from 3.4% as was estimated in April, to 4.4%. According to the institutions’ world economic outlook, Romania and Iceland will report the biggest economic growth in Europe, of 5.5%. Also on Tuesday, the National Institute for Statistics upgraded Romania’s economic growth rate from 5.9 to 6.1% for the second quarter of the year, as compared to the same period of last year.



    DEFENSE COOPERATION — Bucharest authorities on Tuesday signed a memorandum of understanding with the US security giant General Dynamics for the manufacturing of armoured vehicles in Romania, the Government has announced. Defence Minister Mihai Fifor recently said that based on the contract with General Dynamics, the Bucharest Mechanical Factory will make 8×8 Piranha transporters for the Romanian Army.



    FINANCE — Finance Minister Ionut Misa is as of Wednesday taking part in the annual meeting of the World Bank and the International Monetary Fund. According to a ministry release, Misa will meet with representatives of the European Bank for Reconstruction and Development, First Vice President Philip Bennett and Vice-President Alain Pilloux. The agenda of talks will focus on Romania’s fiscal and budget strategy in the 2017-2019 period.

  • September 7, 2017 UPDATE

    September 7, 2017 UPDATE

    COMMISSIONER The European Commissioner for Regional Policy, Corina Cretu said in Bucharest on Thursday that Romania could attract by the end of the year one billion euros from development and cohesion funds. The European official has hailed the fact that the month of August saw the accreditation of all the national authorities in charge of the management and control of the 23 billion euro budget earmarked to Romania for the 2014 — 2020 period. The commissioner went on to say that in terms of European funds, Romania has registered delays caused by the slow process of preparing and implementing these projects. The European Commissioner’s statements were made upon the meeting she had with the country’s Prime Minister Mihai Tudose.




    IMF The IMF recommends the Romanian government to aim for a medium-term budget deficit of 1.5% in order to keep public debt at a lower level. The statement was made in Bucharest on Thursday by the IMF representative for Romania, Alejandro Hajdenberg. He added that the positive evoloution of the Romanian economy recently is mostly based on consumption and this tends to cause a higher fiscal deficit. We recall that Romania doesn’t have an agreement with the IMF at present.




    GROWTH Romania has reported the biggest annual economic growth in the EU in the period April-June 2017, thanks to a 5.7% rise, show the new revised estimates published by Eurostat on Thursday. Thus, the GDP reported a 5.7% growth both in the first and second quarters of 2017 as compared to the same period of last year. The data recently published show that Eurostat slightly revised up the estimates regarding the economic growth rate reported annually both in the Euro zone and in the EU.




    MEETING Romania’s Foreign Minister, Teodor Melescanu, is participating on Thursday and Friday in Tallinn, Estonia, in the informal meeting of the foreign ministers of the EU member states, hosted by the Estonian presidency of the EU Council. A Foreign Ministry communiqué shows that the main topics to be approached are the North Korean file and the Middle East peace process, among other things. The EU foreign ministers will discuss with the EU defense ministers about the implementation of the European defense package. Also a meeting will be held with the foreign ministers of candidate countries regarding the prevention and combating of radicalization and violent extremism. The Romanian foreign minister will also meet with Johannes Hahn, the Commissioner for European Neighborhood Policy and Enlargement Negotiations to discuss the developments in the Republic of Moldova.




  • Romania supports reforms in Moldova

    Romania supports reforms in Moldova

    Still dramatically divided between those fostering Soviet nostalgias, on the one hand, and supporters of Western values, on the other hand, the Moldovan society was bound to generate conflicting political forces. The latest elections have led to a difficult cohabitation of a pro-Russian, Socialist president, Igor Dodon, and a heterogeneous coalition Cabinet supporting European integration, headed by the Democrat Pavel Filip. Since taking office, Dodon has travelled to Russia 3 times in less than half a year. Fillip on the other hand feels a lot more comfortable in Bucharest, Brussels and Strasbourg.



    The 2014 signature of the association and free-trade agreements between the Republic of Moldova and the European Union has irritated Moscow, which banned imports from Chisinau. In turn, the countrys Western partners have difficulties tolerating the corruption in Moldova, culminating with the surreal vanishing of one billion US dollars, accounting for 15% of the countrys GDP, from the Moldovan banking system.



    For fear that their money would be swallowed into a corruption black hole, the IMF, EU and World Bank have temporarily suspended credit lines for Chisinau. At that time, Romania was the only one willing to give its neighbouring country a 150 million euro loan, with a 4 and a half years maturity and a preferential 1.45% interest rate.



    Attending the meeting of the Parliamentary Assembly of the Council of Europe on Monday, the PM of the Republic of Moldova acknowledged, in a statement for Radio Romanias correspondent in Strasbourg, the importance of Bucharests support:



    Pavel Filip: “Romanias support is very important to us and I would like to express my gratitude to our friends in Bucharest. We can see this support not only here, at the Council of Europe, but also at home, on a daily basis. When the Republic of Moldova went through its most difficult times, namely last year when our financing sources were all cut out, Romania was the one that gave us a first loan, which was necessary if we were to return to a normal course of events in Chisinau. Not to mention a lot of other forms of help that Romania gives to the Republic of Moldova, such as the refurbishing and building of hundreds of kindergartens, or the provision of school buses. But I think the most important thing for us is the constant support that Romania offers for our efforts to join the EU.



    This support is in fact a constant element of Bucharests foreign policy. Created on a part of Romanias eastern territory annexed by Stalins Moscow in 1940, the Republic of Moldova proclaimed its independence on august 27, 1991, and Romania was the first country in the world to recognise the new state. And ever since, regardless of the political affiliation of its governments, Romania has been the most steady supporter and advocate of the independence, integrity and European integration of the Republic of Moldova.

  • Economic Developments in Romania

    Economic Developments in Romania

    The IMF forecasts a 4.2% growth of Romania’s economy for 2017 and encourages the Romanian authorities to keep up the pace of the anti-corruption fight. In its Thursday’s report, the IMF hails the progress made by Romania in reducing economic imbalances after the global financial crisis, but it recommends a reorientation of policies from boosting consumption to supporting investments.



    As regards risks, the IMF underlines that the unitary pay bill, the increase in pensions and the new tax cuts could negatively affect the budget deficit, that could reach this year 3.7% of the GDP to further increase to 3.9% in 2018. In order to prevent the increase in deficits from endangering fiscal stability, the IMF recommends economic consolidation on medium term, supported by reforms that should boost the efficiency of the public sector. Also, a potential relaxation of fiscal prudence might negatively affect market confidence, and this risk, cumulated with an increase in political tensions, might affect consumption and investments, increase loan costs and put pressure on the currency exchange rate.



    On the other hand, upon the presentation of the report on financial stability in 2017, the governor of the National Bank of Romania, Mugur Isărescu, said that a fast economic growth, as has been reported in Romania over the past months, even in a stable macroeconomic context, could equally imply growth risks. The governor explained that the central bank had the duty to pay attention to these risks and make them public, in order to diminish possible negative outcomes and avoid worrying the population.



    Mugur Isărescu: “The fact that risks are reduced should not lead to the conclusion that ‘the national bank was wrong when it communicated a risk potential’. We do not intend to show that we are always right and bad things should happen. It is not our purpose and we don’t intend to scare the people. This is a European practice, because, in a sophisticated world, with sophisticated financial institutions risks are inherent.”



    The vice-governor of the national bank, Liviu Voinea, says that, in comparison with the previous report, financial stability has remained robust in Romania, and risks have diminished in intensity and number, but have nevertheless diversified.



    Liviu Voinea: “We consider that we are facing a potential, high systemic risk which is an external risk, but its evolution is slower than in the previous months. This risk refers to a rapid deterioration of investors’ trust in emerging economies. We have also identified three moderate risks, which are internal risks, namely tensed macroeconomic balances, the risk of maintaining a modest evolution of lending activities in the sector of non-financial companies and the legal framework in the financial and banking field.”



    Liviu Voinea also said that a recently emerged risk, which is low for the moment, is that of an increase in real estate prices.


    (Translated by Lacramioara Simion)

  • Economic Developments in Romania

    Economic Developments in Romania

    The IMF forecasts a 4.2% growth of Romania’s economy for 2017 and encourages the Romanian authorities to keep up the pace of the anti-corruption fight. In its Thursday’s report, the IMF hails the progress made by Romania in reducing economic imbalances after the global financial crisis, but it recommends a reorientation of policies from boosting consumption to supporting investments.



    As regards risks, the IMF underlines that the unitary pay bill, the increase in pensions and the new tax cuts could negatively affect the budget deficit, that could reach this year 3.7% of the GDP to further increase to 3.9% in 2018. In order to prevent the increase in deficits from endangering fiscal stability, the IMF recommends economic consolidation on medium term, supported by reforms that should boost the efficiency of the public sector. Also, a potential relaxation of fiscal prudence might negatively affect market confidence, and this risk, cumulated with an increase in political tensions, might affect consumption and investments, increase loan costs and put pressure on the currency exchange rate.



    On the other hand, upon the presentation of the report on financial stability in 2017, the governor of the National Bank of Romania, Mugur Isărescu, said that a fast economic growth, as has been reported in Romania over the past months, even in a stable macroeconomic context, could equally imply growth risks. The governor explained that the central bank had the duty to pay attention to these risks and make them public, in order to diminish possible negative outcomes and avoid worrying the population.



    Mugur Isărescu: “The fact that risks are reduced should not lead to the conclusion that ‘the national bank was wrong when it communicated a risk potential’. We do not intend to show that we are always right and bad things should happen. It is not our purpose and we don’t intend to scare the people. This is a European practice, because, in a sophisticated world, with sophisticated financial institutions risks are inherent.”



    The vice-governor of the national bank, Liviu Voinea, says that, in comparison with the previous report, financial stability has remained robust in Romania, and risks have diminished in intensity and number, but have nevertheless diversified.



    Liviu Voinea: “We consider that we are facing a potential, high systemic risk which is an external risk, but its evolution is slower than in the previous months. This risk refers to a rapid deterioration of investors’ trust in emerging economies. We have also identified three moderate risks, which are internal risks, namely tensed macroeconomic balances, the risk of maintaining a modest evolution of lending activities in the sector of non-financial companies and the legal framework in the financial and banking field.”



    Liviu Voinea also said that a recently emerged risk, which is low for the moment, is that of an increase in real estate prices.


    (Translated by Lacramioara Simion)

  • May 25, 2017 UPDATE

    May 25, 2017 UPDATE


    NATO SUMMIT – Romania stands for a strong, yet well balanced eastern flank of NATO, said Romanias President Klaus Iohannis at the summit of the North Atlantic Alliance in Brussels. He also stressed the fact that Romania believes that transatlantic cooperation and, in particular, the ties between the US and Europe must become stronger. The Romanian head of state also pointed out that Romania is interested in a unitary approach to the relation with Russia. On the sidelines of the summit, Klaus Iohannis talked on Thursday with his Polish counterpart Andrezj Duda about the strategic partnership between Romania and Poland and cooperation within NATO.



    TRUMP – On Thursday in Brussels, the US President Donald Trump called on the NATO member countries to focus on terrorism, migration and Russias threats. Attending for the first time a NATO Summit, after having been rather critical of the Alliance in the past, the US leader reiterated his call for all the member countries to observe their financial committments. The US has repeatedly called on the NATO members to raise their defence budgets to 2% of the GDP. Also on Thursday, the NATO Secretary General Jens Stoltenberg announced that the Alliance would join the international coalition fighting the Islamic State jihadist group, without taking part in combat operations. Belgium is the last but one leg of Trumps first international tour as president, after Saudi Arabia, Israel and the Palestinian territories, Italy and the Vatican. The US President will next attend the G7 summit in Sicily.



    GLOBSEC – The Romanian Foreign Minister Teodor Melescanu will attend in Bratislava, on Friday and Saturday, the 12th Global Security Forum. According to the Romanian Foreign Ministry, Melescanu will talk about European security developments, as part of the panel titled “European Force Awakens”. On the occasion, the Romanian Foreign Minister will present Romanias vision with regard to consolidating the EUs role in the field of security and defence and boosting cooperation with NATO.



    MANCHESTER ATTACK – On Thursday, the Manchester Police arrested two suspects in connection with Mondays night terror attack, taking the number of arrests to 8. Another woman suspected of having been involved in the attack was released without being indicted. We recall that a blast on Manchester Arena on Monday killed 22 people and injured more than 110, being claimed by the Islamic State terrorist organization. On Tuesday, British authorities identified the suspect as being 22-year-old Salman Abedi, a Lybian-born British national born in Manchester. According to Home Secretary Amber Rudd, Abedi was on the British intelligence services list of suspects and most likely did not act alone.



    EXERCISE – Four thousand military, heavy equipment and helicopter gunships will be deployed to the Cincu shooting range in central Romania, to take part in one of the biggest NATO military exercises in recent years. The troops are part of NATOs Very High Readiness Joint Task Force. The main aim is defending Romania as part of emergency interventions on the Alliances eastern flank. Joining Romanian troops will be military from Great Britain, Germany, the Netherlands, Spain, Poland, Norway, Albania and Bulgaria.



    IMF – Romanian economy will report a 4.2% growth rate in 2017, with fiscal relaxation likely to affect market trust, reads an IMF report made public on Thursday. The international lender has hailed the progress Romania has made in reducing economic imbalances, after the financial global crisis, mentioning however that Romania should reorient its policies from boosting consumption towards supporting investors. IMF believes that fiscal relaxation, doubled by growing political tension in Romania, might affect consumption and investment. On the other hand, the unified pay scale bill, currently under debate in Parliament, as well as the latest tax cuts, pose certain risks to the budget deficit, which the IMF expects to stand at 3,7% this year. The report is based on the talks IMF officials had with Bucharest authorities in March.



    STRIKE – On May 30th, air traffic controllers in Romania will start an indefinite all-out strike, the president of the Air Traffic Services Trade Union Gabriel Tudorache announced on Thursday. He said that during the strike, at least one third of the planes transiting Romanias air space will be guided, which is some 3,000 planes per day. On May 12th, air traffic controllers held a 2 hour warning strike, and dozens of planes were delayed upon taking off from and landing on the Henri Coanda airport in Bucharest. They are unhappy with the lack of a new collective employment agreement and that employment has been frozen, particularly since, after the conflict in Ukraine, the number of planes flying through Romanias airspace has increased significantly.



    ASCENSION DAY – Orthodox, Greek-Catholic and Roman-Catholic believers in Romania on Thursday celebrated the Ascension of Christ. According to Christian beliefs, 40 days after Resurrection, Lord Jesus departed from Earth into the presence of God from the Mount of Olives, telling his disciples to remain in Jerusalem until the coming of the Holy Spirit. Since 1920, when, after WWI, all Romanian historical provinces united under Bucharests authority, Ascension Day has been celebrated alongside Heroes Day. On Thursday at noon, church bells were rung in all Orthodox churches across Romania to honour the memory of those who gave their lives for the Romanian people, their faith and country, and the names of the soldiers killed in WWI were solemnly read out in most garrisons which also hosted military and religious ceremonies.



    FOOTBALL – English giants Manchester United have for the first time won the Europa League Trophy. Wednesday night, in the final hosted by the city of Stockholm in Sweden, Manchester United grabbed a 2-nil win against their Dutch challengers Ajax Amsterdam. The Europa League final was played ahead of the Champions League final, scheduled for June 3 in Cardiff, where Spanish giants Real Madrid will take on the no less famous Italian contenders Juventus FC. This coming Saturday in the town of Ploiesti, southern Romanian team Astra Giurgiu for the first time ever is pitted against FC Voluntari, in Romanian Cup Final. Also as an absolute first, the domestic championship title went to FC Viitorul, a team from south-eastern Romanias Constanta. The team was founded in 2009 by the former great Romanian footballer Gheorghe Hagi. The League Cup, a competition exclusively created for first-tier teams, went to Dinamo Bucharest. In the final, Dinamo defeated Poli Timisoara 2-nil.




  • May 2, 2017 UPDATE

    May 2, 2017 UPDATE

    AIR DEFENCE – US ambassador to Bucharest, Hans Klemm, has said talks on Romanias purchasing some US Patriot air defence systems might be finalised by the end of the year. He has explained that Romanian PM Sorin Grideanu has recently met with a delegation of the Romanian-US Business Council, during which the officials discussed ways to boost cooperation in the field of defence industry, as well as investments in Romania. In another move, Hans Klemm has said the US hails Romanias decision to increase defence spending to 2% of the GDP, in agreement with the commitments it has made within NATO. This also grants opportunities to US companies to cooperate with the Romanian ones in the field of defence, to develop new, state-of-the art equipment, to help Romania and the Alliance, including the US, to provide better defence, Hans Klemm has said.



    UNIFIED PAY BILL – The Romanian Senate on Tuesday decided to debate the unified pay bill, in an emergency procedure. Also on Tuesday, the bill was sent by the Senates Standing Bureau, for endorsement, to the Government, the Economic and Social Council, the Legislative Council and to other institutions. The deadline set for securing these endorsements is of one week. The bill provides among others for the gradual increase, in the following five years, of the salaries of state sector employees. The first pay rise is to be applied as of July 1st.



    MOLDOVA – The IMF Executive Board has completed the first reviews under the Extended Credit Facility and Extended Fund Facility Arrangements for the Republic of Moldova, that allow for the disbursement of 21.5 million dollars for that country. According to the report, the authorities continue to make significant progress in tackling long-standing vulnerabilities in the financial sector and advancing structural reforms. These efforts have helped strengthen financial stability and growth has been resumed. The report also says that the 2017 budget and the medium-term budget framework are consistent with the program targets. In November 2016 the Republic of Moldova signed a new programme with the IMF, worth almost 179 million dollars for a three-year period.



    BREXIT – Britains plan to leave the European Atomic Energy Community (Euratom) when it exits the European Union will severely hinder nuclear trade and research, and threaten power supplies, a UK parliamentary committee said in a report on Tuesday. The government says Britain must leave Euratom as part of its goal to end the jurisdiction of the European Court of Justice when the country leaves the EU. Experts have said that if Britain leaves Euratom, there is a risk of new projects being delayed or put on hold while new stand-alone nuclear cooperation treaties are negotiated with countries in the EU and outside it.



    UNEMPLOYMENT – The unemployment rate registered in Romania in March 2017 stood at 5.3%, down by 0.1% as against February, while the number of unemployed people went down to 486,000, according to the National Institute for Statistics. The figure is by 3,000 people smaller than in February, and also smaller than in March 2016, when it stood at 561,000. The unemployment rate among men is 5.7% while among women is 4.9%.



    LABOUR MARKET – Of all EU member states, Romania registered in 2016 the lowest number of people in the 15-64 age bracket who had an employment contract on a definite period of time, that is 1.4%, whereas the European average stood at 14.2%, a report issued by Eurostat on Tuesday shows. According to the figures, Spain is ranking at the opposite end of the classification with 26.1% and Poland with 27.5%. As regards the 15-24 year age bracket, the European average of people who have an employment contract on a definite period of time stood at 43.8%. The lowest percentage points were also reported by Romania – 5.3%.



    TRAVEL ALERT – The U.S. Department of State issued a travel alert for Europe on Monday, citing the continued threat of terror attacks. In the alert, the Department of State mentioned recent incidents in France, Russia, Sweden and the United Kingdom, saying Islamic State and al Qaeda have the ability to plan and execute terrorist attacks in Europe. Malls, government facilities, hotels, clubs, restaurants, places of worship, parks, airports and other locations are all possible targets for attacks, the State Department’s alert said. The alert is valid until September the 1st. Washingtons previous alert of this kind expired in February.



    EUROVISION – Over 200 competitors from 20 countries have arrived in Kiev these days to get ready for the Eurovision Song Contest, including Romanias representatives, Ilinca and Alex Florea. In the second semi-final, due on May 11, the two will be performing the song “Yodel it! composed by Mihai Alexandru. The head of the Romanian delegation, Iuliana Marciuc, told a press conference that the song has already caught public interest.

  • May 2, 2017

    May 2, 2017

    VISAS — Starting May 1st, 2017, Romanian and Bulgarian citizens who have held a Canadian visitor visa in the past 10 years or currently have a valid US non-immigrant visa are allowed to travel to Canada by only filling in a form for travel authorization. This has become possible, following the approval by the European Parliament in February in Strasbourg, of the EU-Canada Comprehensive and Free Trade Agreement. (CETA). The Government of Canada will entirely lift the visa requirements for Romanian and Bulgarian citizens starting December 1st, 2017.




    TRAVEL ALERT — The U.S. State Department issued a travel alert for Europe on Monday, citing the continued threat of terror attacks. In the alert, the State Department mentioned recent incidents in France, Russia, Sweden and the United Kingdom and said Islamic State and al Qaeda “have the ability to plan and execute terrorist attacks in Europe.” Malls, government facilities, hotels, clubs, restaurants, places of worship, parks, airports and other locations are all possible targets for attacks, the State Departments alert said. The alert is valid until September the 1st. Washington’s previous alert of this kind expired in February.




    MOLDOVA — The IMF Executive Board has completed the first reviews under the Extended Credit Facility and Extended Fund Facility Arrangements for the Republic of Moldova, that allows for the disbursement of 21.5 million dollars for the latter. According to the report, the authorities continue to make significant progress in tackling long-standing vulnerabilities in the financial sector and advancing structural reforms. These efforts have helped to strengthen financial stability, and growth has returned. The report also says that the 2017 budget and the medium-term budget framework are consistent with program targets. In November 2016 the Republic of Moldova signed a new programme with the IMF, worth almost 179 million dollars for a three-year period.




    EUROVISION – Over 200 competitors from 20 countries have arrived in Kiev these days to get ready for the Eurovision Song Contest, including Romania’s representatives, Ilinca and Alex Florea. In the second semi-final, due on May 11, the two will be performing the song “Yodel it!” composed by Mihai Alexandru. The head of the Romanian delegation, Iuliana Marciuc, told a press conference that the song has already caught public interest. Find out more about it, after the news.




    BREXIT – Britain’s plan to leave the European Atomic Energy Community (Euratom) when it exits the European Union will severely hinder nuclear trade and research, and threaten power supplies, a UK parliamentary committee said in a report on Tuesday. The government says Britain must leave Euratom as part of its goal to end the jurisdiction of the European Court of Justice when the country leaves the EU. Experts have said that if Britain leaves Euratom, there is a risk of new-build projects being delayed or put on hold while new stand-alone nuclear cooperation treaties are negotiated with countries in the EU and outside it.




    UNEMPLOYMENT — In Romania, the unemployment rate reported in March this year stood at 5.3%, down by 0.1% as against February, while the number of unemployed people went down up to 486,000, according to the National Institute of Statistics. The figure is by 3,000 people smaller than in February, and also smaller than in March 2016, when it stood at 561,000. The unemployment rate among men is 5.7% while among women is 4.9%. In March 2017, of the total number of people without a job, over 74% were aged between 25 and 74.


    (Translated by Elena Enache)



  • The Week in Review, April 17-22

    The Week in Review, April 17-22

    The first vice-president of the European Commission Frans Timmermans pays a formal visit to Bucharest


    The Romanian legal system has become a model for other members of the EU, and Romanian citizens should be proud of it, said the first vice-president of the European Commission Frans Timmermans, who was on a formal visit to Bucharest. After talks with Prime Minister Sorin Grindeanu and Justice Minister Tudorel Toader, the European official gave assurances that Brussels will acknowledge the fulfillment of the 12 recommendations set under the mechanism for monitoring the Romanian judiciary as soon as soon as this has happened. Frans Timmermans has also voiced confidence that the best guarantee that the fight against corruption will continue are the Romanian citizens themselves. Under the Cooperation and Verification Mechanism set up by the European Commission, the judicial systems in Romania and Bulgaria have been monitored ever since accession, in 2007, with the aim of overcoming deficiencies existing in the justice system and fighting corruption in these countries. In turn, Prime Minister Sorin Grindeanu has stated he would like to see the Mechanism completed before Romania takes over the presidency of the EU Council. We will carry on with the major progress registered in the field of the judiciary and we will make sure justice in Romania is fair and independent, the Romanian Prime Minister also said.




    The IMF improves its forecast regarding Romanian economy in 2017


    The IMF has revised upwards, from 3.8% to 4.2%, its forecasts regarding the Romanian economy this year, according to the latest economic outlook report made public ahead of its spring meeting. According to the IMF, in 2017 Romania will have the second-highest growth rate in Europe, after Iceland (5.7%). Next year, Romania is expected to record a growth rate of 3.4%. As regards world economy, the IMF estimates a good growth rate next year as well. Acceleration will be largely felt both in the developed and in the emerging economies, but also in the weaker ones, in particular in the manufacturing and trading sectors.




    Romania strengthens its defense sector


    Romania plans to buy Patriot missile systems and HIMARS rocket launchers, the Romanian Army Chief of Staff Nicolae Ciuca has announced. The Defense Ministry has already sent an application to the US government, given that both systems are manufactured by US companies. Procurement procedures are scheduled to start this year. The Romanian Chief of Staff has stated that the Patriot system fits Romanias integrated multi-level air defense system. General Ciuca made the statement at the Smardan shooting range in Galati County, south-eastern Romania, which on Thursday hosted a tactical shooting drill, with real ammunition. 350 Romanian and US soldiers participated in the drill. Here is the Army Chief of Staff Nicolae Ciuca speaking of the importance of the drill:



    Nicolae Ciuca: “This is a drill that helps increase the level of interoperability and reach the joint standards of our armies. Also, it is part of a process under which the Romanian army is consolidating its status as member of NATO and of the EU. The US soldiers are in Romania as part of the operation Atlantic Resolve, aimed at strengthening NATOs eastern flank and deterring any potential act of aggression in the Black Sea area.




    As of May 1st, Romanians will travel to Canada without visas


    The Canadian embassy in Bucharest announced on Wednesday that the first stage in the process of lifting mandatory visas for Romanians traveling to Canada starts on May 1st. As of that date, the Romanian citizens who have had a visa in the past ten years or who have a visa to entry the USA, can apply for an electronic travel authorization, ETA, which replaces the visa and is valid for a period of five years. The provision only applies to those who travel by plane or transit a Canadian airport. People who want to enter Canada using other means of transport will still need visas. These requirements are to be waived in December, when the Canadian government intends to lift restrictions for all the Romanian citizens.




    Bad weather hits Romania


    Three quarters of Romanias territory has been under codes orange or yellow alert for snow or heavy rain, strong wind and low temperatures, which is quite unusual for this time of the year. Romanian weather experts have explained that the bad weather was triggered by a trans-Balkan cyclone, which is crossing Romania these days. Strong gusts of wind cut off electricity in dozens of villages in the east and south-east. Also, because of the blizzard, several national road sectors were closed in the east, but also in the south and centre, were local and county roads were also affected. The bad weather also affected the railways. Several trains were delayed by blizzard and strong winds. Also because of the wind, the Romanian ports on the Black Sea were temporarily closed and several international flights were cancelled.


    (translated by: Mihaela Ignatescu)

  • International Economic Forecasts

    International Economic Forecasts


    The IMF has upgraded its forecasts regarding the world economy in 2017 and 2018, according to its World Economic Outlook report made public on Tuesday, ahead of its spring meeting. The IMF expects a global economic growth rate of 3.5% this year and 3.6% in 2018, as against 3.1% in 2016. Acceleration will be largely felt both in the developed and in the emerging economies, based on investment, manufacturing and trade. The positive outlook is prompted in part by an accelerated growth rate and is owing to the progress reported in Europe, Japan, China and the US. Moreover, many banks, including in Europe and developing countries, have restored their capital and thus gained further elasticity.



    There are, however, risks as well, the IMF warns. The institutions chief economist Maurice Obstfeld says the major risks come from the worlds two leading economies, the USA and China. He explained that the Federal Reserves policy to give up the zero interest rate and the new administrations announcement regarding an extensive investment policy may deepen inflation risks, leading to an appreciation of the US dollar and thus creating difficulties for the emerging countries with dollar-denominated bonds. As regards China, the risks are related to Beijings trade rebalancing process and to its plans to boost the services sector at the expense of the industrial output. Adding to this is a substantial growth in domestic credit, which may cause financial stability problems and spill over to other economies as well, the IMF official explained, and added that protectionist policies jeopardise the recovery process.



    According to the IMF report, Europe will see a 2% economic growth rate, with 3% growth in emerging Europe, Romania included. The Fund has upgraded its growth forecast for Romania, from 3.8 to 4.2% in 2017, and from 3.3 to 3.4% in 2018. The IMF expects Romania to have the second-highest growth rate in Europe this year, only outpaced by Iceland (5.7%). The main engine of growth is consumption, as a result of the cuts in taxes, salary increases, and lower interest rates for both the domestic currency and the euro. The IMF also expects the countrys unemployment rate to fall significantly this year, to 5.4%, as opposed to the 6.2% in its previous forecast, and to 5.2% in 2018. On the other hand, the Fund also revised its inflation estimates, from negative 1.6% last year to 1.3% in 2017 and over 3% next year. The Funds main concerns, as far as the Romanian economy goes, have to do with the sustainability of public finances in the context of the recent salary increases.




  • March 17, 2017 UPDATE

    March 17, 2017 UPDATE

    VISIT The head of the IMF mission for Romania, Reza Baqir presented in Bucharest on Friday the conclusions over the country’s economic developments. According to him the successive cuts in taxes and duties and the pay raises exceeding productivity start threatening the accomplishments of the past years hindering the potential growth of the Romanian economy. Baqir went on to say the IMF forecast a budget deficit of 3.7% for this year and 3.9% for 2018. The IMF delegation’s agenda included meetings with the country’s President and Prime Minister, Klaus Iohannis and Sorin Grindeanu respectively. Romania doesn’t run an agreement with the IMF presently but it is having periodical consultations with its representatives.



    MEASURE Collective labour agreements are to become compulsory both in state-owned and private institutions in Romania, the country’s Minister for Public Consultations and Social Dialogue, Gabriel Petrea said on Friday. According to him, the measure will be included in the new Law on Social Dialogue to be put up for debates shortly after the law on unitary payment has come into effect. There is a request from all representative trade unions nationwide and we have to create a system of protecting the employees so that their rights may be observed, Petrea said. In another development he stood for the registration of the NGOs with the National Trade Registry and not with the courts as they are under the present legislation. The minister says that such a measure would ease the setting up of these organisations and streamline their activity.



    TALKS Igor Dodon, the pro-Russian president of the Republic of Moldova, an ex-soviet Romanian-speaking country held talks in Moscow on Friday with president Vladimir Putin of Russia; high on the agenda were economic cooperation and regional developments. This is Dodon’s second visit to Moscow in less than three months during which he attended a business forum and also met the Patriarch of the Russian Orthodox Church, Kirill. Pundits quoted by Radio Romania correspondents in Chisinau said the visit’s purpose seems to be exclussively electoral; Dodon’s socialists are seeking Russian support for the upcoming Parliamentary election next year. In January Dodon said in Moscow that he considered denouncing the association agreement with the EU and strengthening relations with the Eurasian Economic Union; he also sees the federalisation of the Republic of Moldova as a solution for instating peace in the breakaway pro-Russia region of Transdniester.



    FUNDS Romania can absorb some 250 million euros worth of funds for the modernization of 280 hospitals and healthcare units, the European Commissioner for Regional Policy Corina Cretu has said during her latest visit to Bucharest. The funds are mainly aimed at rehabilitating and expanding 42 county hospitals. The goal is to help the population in rural areas get direct access to quality healthcare services.

  • March 17, 2017

    March 17, 2017

    EXPERTISE – The Chief Prosecutor of the Romanian Anti-Corruption Directorate (DNA), Laura Codruta Kovesi, has been invited by the Bulgarian High Court of Cassation and Justice to share her expertise in the battle against corruption. Kovesi presented before Bulgarian magistrates, journalists and NGO representatives the role that the DNA plays in the Romanian justice system. She reminded that in 2006, only 360 high level corruption cases were brought to Court, while in 2016 their number reached 1273. 880 state employees, such as ministers, MPs, mayors and magistrates received definitive Court sentences last year.




    FUNDS – Romania can absorb some 250 million euros worth of funds for the modernization of 280 hospitals and healthcare units, the European Commissioner for Regional Policy Corina Cretu has said during her latest visit to Bucharest. The funds are mainly aimed at rehabilitating and expanding 42 county hospitals. The goal is to help the population in rural areas get direct access to quality healthcare services. Find out more about it, after the news.




    MEETING – German Chancellor Angela Merkel is today holding talks with the US President Donald Trump in Washington DC. The two heads of state will discuss, among other things, about transatlantic trade and about NATO. Ahead of today’s meeting, the American side underlined the strength of its relationship with Germany and insisted on the fact that President Trump is keen to seek the Chancellor’s advice on how to manage relations with Russian President Vladimir Putin.




    IMF — The IMF delegation presents its conclusions on the economic evolutions and on the policies promoted in Romania, at the end of its assessment mission. The Fund says Romania must increase the absorption rate of EU funds and the tax collection to the state budget and further support the fight against corruption. Romania does not currently have any financing accord with the IMF. The most recent accord, that expired without a clear conclusion in September 2013, stood at 2 billion euros, but the Bucharest authorities did not accessed these funds.




    SLAVERY – Romanian Minister for Romanians Abroad, Andreea Pastarnac, continues talks, in Italy, with Italian authorities and Romanian workers at farms in Sicily. Talks are held in the context of disclosures indicating cases of exploitation of Romanian citizens who are working in the regions of Sicily and Calabria. As many as 7,500 women, mostly Romanian, are the victims of slavery in farms in southern Italy, according to estimates made by the Italian police. The women are victims of abuse, including threats and sexual assault, which is perpetrated with almost total impunity, shows an investigation published on Sunday by the British weekly “The Observer”. Romania and Italy have agreed to set up a support and assistance center, aimed at helping the victims of trafficking and at preventing people from becoming victims of abuse.




    COALITION — In Holland, the process of forming a new government coalition is under way, following Wednesday’s parliamentary election won by the pro-European parties. The incumbent Prime Minister, Mark Rutte, whose party won most seats in parliament, will have the final say on the government’s membership. Political analysts say that negotiations over the new government coalition’s membership might last up until after the summer holiday.




    MOLDOVA – Moldovan President Igor Dodon is today discussing in Moscow with his Russian counterpart, Vladimir Putin, about economic cooperation and the regional situation. The agenda of the visit, the second such visit in less than three months, includes Dodon’s participation in a business forum and a meeting with the Patriarch of the Russian Orthodox Church, Kiril. Political analysts say that the stake of Dodon’s visit to Moscow is an electoral one, and is aimed at ensuring Russian support for the socialists at next year’s parliamentary election.


    (Translated by Elena Enache)