Radio România Internațional

Tag: IMF

  • January 22, 2017 UPDATE

    January 22, 2017 UPDATE

    FIRE INVESTIGATION – The Romanian authorities have initiated criminal investigations, involving charges of wanton destruction of property, in relation to the fire that Friday night destroyed one of the best known nightclubs in Bucharest, Bamboo. According to the Healthcare Ministry, 44 people received assistance for smoke inhalation injuries, hypothermia, and fractures, but none of the patients reported burns. Only one person is currently in a serious condition. The victims include foreign citizens, most of them from Israel. The causes of the fire that destroyed the building are yet unknown. The owners of the nightclub had not yet obtained the premises license and the fire safety permit for the nightclub. Several witnesses have been heard and fresh inspections have been initiated in all buildings that host activities involving large attendance. We remind you that in October 2015, a fire taking place during a rock concert at the Colectiv nightclub in Bucharest killed 64 people. The tragedy sparked large-scale protests to denounce corruption in the public administration.



    IMF – An International Monetary Fund delegation headed by the chief of the mission for Romania, Reza Baqir, is in Bucharest these days for a first meeting with the members of the new Cabinet. The delegation has discussed this years public budgets with the Finance Minister Viorel Ştefan. The mission carries on with technical talks at expert level, including at the National Bank of Romania, where a meeting is scheduled to take place on Monday. Romania does not have a loan agreement with the IMF at present.



    MOURNING – Hungary has announced a day of national mourning on Monday, to commemorate the victims of the crash that took place in Italy on Friday night and which killed 16 people and injured another 26. The coach was taking students and teachers from a Budapest high school back home from a ski holiday in France, and near Verona it crashed into a bridge pillar and burst into flames. The causes of the accident are still to be determined.



    TRUMP ADMINISTRATION – The US President, Donald Trump, is to receive the British Prime Minister Theresa May at the White House on Friday, the press secretary Sean Spicer confirmed on Sunday. The previous day Sean Spicer had announced May was the first foreign leader to visit Trump. Sean Spicer also announced that the President of Mexico, Enrique Pena Nieto, will be received by the new President of the USA on January 31. Meanwhile, millions took part on Saturday in anti-Trump protests organised by women organisations around the world. Trump is criticised, among other things, for his anti-immigration rhetoric and sexist statements. In Los Angeles, organisers estimate 750,000 people took part, including dozens of Hollywood stars. 400,000 people took to the streets in New York, 200,000 in Boston, 150,000 in Chicago, and rallies were also held in New Zealand, Japan, Australia and major European cities. The largest protest took place in Washington, where nearly a million people attended the anti-Trump rally, including, among others, the former Secretary of State John Kerry.



    AUSTRALIAN OPEN – The Romanian tennis player Sorana Cîrstea (78 WTA) was outperformed on Sunday by Spains Garbine Muguruza Blanco (7 WTA), in two sets, in the eighth-finals of the Australian Open. Also on Sunday, the Romanians Horia Tecău and Florin Mergea, playing with separate partners, were eliminated from the eighth-finals of the mens doubles competition in Melbourne. Tecău and the Dutch Jean-Julien Rojer, seeded 11, were defeated in 2 sets by the Australians Marc Polmans/Andrew Whittington. In turn, Florin Mergea and Britains Dominic Inglot, seeded 16, lost in 3 sets to the top seeds of the doubles event, the French Nicolas Mahut and Pierre-Hugues Herbert.


    (translated by: Ana-Maria Popescu)

  • January 20, 2017

    January 20, 2017

    ANTI-GOVERNMENT PROTESTS – Romanias President Klaus Iohannis said there are sufficient arguments to prompt the Government to withdraw its ordinances on amending the blanket pardon legislation and the Criminal Code. In a message posted on a social networking site, the President said the measures are ‘ineffective and ‘targeted. On Thursday, protests continued in Bucharest and other large cities against the Governments plans. Thousands of protesters fear the modifications are targeting major influential politicians and lawmakers, aimed at writing off their sentences. Similar charges were launched by opposition parties, civil society or magistrates associations. On the other hand, the Government claims the modifications are necessary to avoid prison overcrowding as well as to harmonize the existing legislation with Constitutional Court rulings.



    2017 BUDGET – The Government is today meeting to discuss the draft budget for 2017. The session will be chaired by Deputy Prime Minister and Minister for Regional Development Sevil Shhaideh, who will serve as interim Prime Minister until Monday, pending Prime Minister Sorin Grindeanus return from Washington, where he is attending the official swearing-in of Donald Trump as President of the United States. Sorin Grindeanu said the draft budget will maintain the budget deficit below 3%. A delegation of the International Monetary Fund, led by mission chief for Romania Reza Baqir, on Thursday held a first meeting with Finance Minister Viorel Stefan concerning the state budget for 2017. At present Romania has no ongoing agreement with the IMF.



    SWEARIN IN CEREMONY – Republican billionaire Donald Trump will be sworn in today as the 45th president of the United States of America. Attending the swearing-in ceremony held in Washington will be some 900,000 people. The businessman won the presidential elections after an election campaign marked by a series of very controversial declarations, as well as Russias alleged involvement in the campaign. According to the US intelligence agencies, the Russian Federation launched a series of cyber-attacks targeting the Democratic Party during the campaign. The swearing-in ceremony will be held against the backdrop of numerous protests in Washington, but also in Boston, Los Angeles and outside the US, in London and Sydney.



    AVALANCHE – At least four people were killed and another 25 are missing in the wake of an avalanche that hit a Hotel in Pescara province, central Italy. The Romanian Embassy was informed that three Romanian citizens, an adult and two minors, were in the hotel when the avalanche hit, and has immediately contacted local authorities. The Romanian Foreign Ministry reports that Romanias embassy and general consular office in Bologna are watching the developments and remain in permanent contact with the local authorities, being ready to provide any necessary consular assistance. Meanwhile Italian rescue teams continue to search for survivors on the ground, although the possibility of finding anyone still alive is very low.



    TENNIS – Romanian tennis player Sorana Cirstea, Romanias last representative in the womens singles at the Australian open, on Friday qualified to the round of 16 for the first time in her career. In the third round, Cirstea defeated Alison Riske of the United States, 6-2, 7-6, 7-2. In the mens doubles, Horia Tecau of Romania and Jean-Julien Rojer of the Netherlands moved past Matt Reid and Jordan Thompson of Australia, 2-6, 6-4, 10-5. In the quarterfinals, the two will take on Wesley Koolhof and Matwe Middlekoop of the Netherlands. Also qualified in the quarterfinals are Florin Mergea of Romania and Dominic Inglot of the United Kingdom, who knocked out Julien Benneteau and Jeremy Chardy of France, 6-3, 6-7, 6-7. (Translated by V. Palcu)

  • January 18, 2017

    January 18, 2017

    FOREIGN POLICY – The fundamental pillars of Romanias foreign policy continue to be the strengthening of the Partnership with the US and the consolidation of the EU and NATO, Romanias President Klaus Iohannis has today said at a meeting with the foreign ambassadors accredited to Bucharest. He has added that Bucharest should further be a pillar of stability and predictability in the region. The Romanian President has also said that Romania should increase defence expenditure of up to 2% of the GDP, according to the commitments it has made. In another move, Klaus Iohannis has reiterated Romanias support for the Republic of Moldovas European path. He stood for a Brexit which should defend the interests of the Romanians living in Great Britain. Other priorities of the Romanian foreign policy will be the fight against terrorism and illegal migration.



    IMF – A delegation of the International Monetary Fund, led by the head of the mission for Romania, Reza Baqir, has today started a one week visit to Romania, to establish contact with the new government in Bucharest. The members of the mission are due to meet high representatives of the Finance Ministry and of the National Bank of Romania, the prime minister and other ministries who hold economy-related portfolios. The agenda of the talks will also cover issues related to the construction of the state budget for 2017. Currently, Romania doesnt have a financing agreement underway with the IMF.



    BORDER POLICE – Romanian border police officers have rescued 52 people, among whom a nine months pregnant woman and an injured man, in the Aegean Sea, as part of a FRONTEX mission. According to a communiqué issued by the General Border Police Inspectorate, those rescued were Syrian, Malian and Nigerian nationals, onboard a drifting vessel. They have been brought to safety and handed over to the Greek authorities. The Romanian policemen, currently on a mission in Greece, as part of Joint Operation “EPN Poseidon Sea, coordinated by the FRONTEX Agency also rescued on January 12, jointly with Greek policemen, 47 foreign citizens, who reached the Greek territorial waters onboard a small vessel.



    EUROPEAN PARLIAMENT – Italian conservative Antonio Tajani (63), the candidate of the European Peoples Party, has been elected president of the European Parliament for a mandate of two and a half years. He defeated his compatriot, Socialist Gianni Pitella. Tajani was the spokesperson for the Italian prime minister, Silvio Berlusconi, and European Commissioner for Industry in the 2010 – 2014 period. He will take over the mandate from the German Socialist-Democrat Martin Schulz, who has withdrawn from the position to be able to return to the German political scene.



    TENNIS – Romanian woman tennis player Sorana Cîrstea has today qualified, in Melbourne, in the third round of the Australian Open, the first Grand Slam tournament of the year, after defeating tenth seeded Carla Suarez Navarro of Spain. Cîrstea remains the only Romanian tennis player in the competition, after Irina Begu has sustained defeat earlier today. In the doubles, the pair made up of Romanian Monica Niculescu and American Abigail Spears got eliminated in the first round by the pair Lucic-Baroni (Croatia)/Andrea Petkovic (Germany). Two other Romanians will also play in the doubles, Irina Begu alongside Lara Arruabarrena of Spain, against the pair Louisa Chirico (the US/Elise Mertens (Belgium), and Raluca Olaru, alongside the Ukrainian Olga Savciuk, who will play in the first round against the pair Naomi Osaka (Japan) and Monica Puig (Puerto Rico). In the mens competition, Romanian tennis players Horia Tecău and Florin Mergea, playing in different pairs, on Wednesday qualified for Melbourne in the second round of the mens doubles event. (Translated by D. Vijeu)

  • November 8, 2016

    November 8, 2016


    US ELECTION 145 million registered voters are expected to elect the 45th president of the US today, after a year and a half of electoral fighting of an unprecedented violence, international news agencies report. Agencies recall the surprise made by the Republican Party when announcing its candidate, the 70 year old tycoon Donald Trump, the scandal triggered by the Democrat candidate Hillary Clinton’s e-mails, and the fierce debates that the two had. According to the latest polls, Hillary Clinton, who might soon become the first woman president in the history of the US, benefits from an advantage of 3 to 4%. Therefore, the winner will be decided by the votes from the so-called ‘swing states’, such as Ohio, Florida and North Carolina. Barack Obama’s successor will take over the office in January 2017.



    PAY RISES The Romanian Government has decided to challenge at the Constitutional Court the law providing for 15% pay rises for doctors and teachers as of January 1st 2017, the Prime Minister Dacian Ciolos has announced. He has explained that the Government was not asked for an opinion about the measures, as the procedure in force would have required, and there was no transparent debate on the bill. The Social Democratic Party, the initiator of this law, supported by the Democratic Union of Ethnic Hungarians, the national minorities’ group and the Alliance of Liberals and Democrats in Romania, claims there is enough money for such pay rises. The liberal opposition did not support the law and did not take part in the final voting.



    NATO The foreign ministers of 9 NATO countries from the Eastern Flank – Bulgaria, the Czech Republic, Estonia, Lithuania, Latvia, Poland, Romania, Slovakia and Hungary – have gathered in Bucharest to attend a meeting organized by the Romanian and Polish foreign ministries. The participants are discussing the security situation in the region and will analyze the stage of implementation of the decisions made at the NATO summit in Warsaw. The meeting is also attended by the new NATO Deputy Secretary General Rose Gottemoeller. On Monday, she met in Bucharest with the Romanian Foreign Minister Lazar Comanescu, and the two talked about the anti-missile system in Deveselu and the activation by Romania of a multinational division within the NATO Division Southeast, aimed at supporting defense and security in this part of Europe. Mrs. Gottemoeller also held talks with the Defense Minister Mihnea Motoc about the importance of the Black Sea for the Euro-Atlantic security and stability. Gottemoeller stressed the interest in maintaining the unity, effectiveness and solidarity of the allied countries, against an extremely complex security background.



    TV-RADIO FEE On Thursday, Romania’s President Klaus Iohannis will attend the debate titled: The elimination of the TV-radio license fee, support for or threat to the mission of public broadcasting?. The event, organized by ActiveWatch, is aimed at facilitating a dialogue between the head of state and journalists, representatives of media organizations and civil society representatives about the situation of public broadcasting companies, especially following the endorsement by parliament of the law providing for the elimination of several taxes and fees, including the TV-radio one. Radio Romania and the Romanian Television on Monday held a joint debate on the issue. The director of the Center for Independent Journalism Ioana Avadanei has stated that, by eliminating this contribution, the direct link between citizens and the public service is severed, and people will keep on paying from budget money.



    ECOFIN The Romanian Finance Minister Anca Dragu is attending today the Economic and Financial Affairs Council (Ecofin) in Brussels. The European Commission will present a new package of proposals for the implementation of a fair, competitive and sustainable taxation system for companies in the EU. According to a communiqué issued by the European Commission, a modification of budget regulations in the EU is envisaged, under which the Eurozone member states must submit annually to the EC, in October, the draft budgets for next year. Also, the participants will tackle the draft directive that would grant fiscal authorities access to information held by the authorities responsible for the prevention of money laundering. The new set of rules, aimed at helping authorities hamper tax evasion and fraud, will come into force in January 2018.



    IMF The IMF has approved a funding program for the Republic of Moldova, the former Soviet country with a predominantly Romanian-speaking population, worth more than 180 million dollars. Chisinau has not had an agreement with the IMF since 2013, and the signing of a new one depended on the resumption of funding from the EU, the WB and the disbursement of the next tranche from the loan offered by Romania. The decision was made in the run-up to the second presidential ballot in Moldova. According to the latest poll on voters’ intentions, 55.6% of them would vote for the pro-Russian socialist Igor Dodon, and 44.4% for the pro-Western Maia Sandu. The authors of the poll, quoted by Radio Romanian correspondents, say that the survey did not cover the representatives of the large Moldovan diaspora, of whom 75% voted in favour of Maia Sandu in the first round.




  • November 2, 2016 UPDATE

    November 2, 2016 UPDATE

    BILL – Romanian President Klaus Iohannis said on Wednesday that he would organise, by November 15, at least one public debate on the radio and TV licence fee, attended by experts in the field. The head of state has said that, over the past few days, a large number of European media organisations, trade unions and experts’ associations have called on him not to sign the into law the bill eliminating this fee because, if the public Radio and Television were to be financed by the state, the might turn into a political tool. 88 years from its first broadcast, Romanian public radio and television are faced with an unprecedented situation. A bill slashing the public radio and TV fees was passed by Parliament last week; it eliminates in bulk 100 more types of taxes, and was sent to President Klaus Iohannis for endorsement. Some observers have pointed out its populism, ahead of the Parliamentary elections in December, and the lack of public debate around a law of national and strategic significance.




    LOAN — Romania will sign a loan agreement with the International Bank for Reconstruction and Development, worth 500 million euros, according to a memorandum discussed at a Romanian government meeting on Wednesday. This is the second loan to be taken out by Romania for development policies after the one in 2014 worth 750 million euros. The loan will be taken out for a period of 20 years and should be reimbursed in 2036.




    REVOLUTION CASE – Military prosecutors on Wednesday decided to extend the prosecution in the 1989 Revolution case to crimes against humanity. The extension was made “in rem”, meaning that it is the act and not people that are targeted. According to prosecutors, the incidents that happened after December 22nd, 1989 in a big number of Romanian localities indicates that things had been orchestrated so as to allow the new leaders take over power and offer them legitimacy. According to official statistics, over 11 thousand people lost their lives and around three thousand were wounded during the Romanian 1989 Revolution.




    EUROPEAN UNION – EU Commissioner for Digital Economy and Society, Günther Oettinger, is on a two-day official visit to Romania starting on Wednesday. On Thursday he will deliver a speech at the Digital Romania International Forum held in Bucharest. The event, staged by the Prime Minister’s Chancellery, is attended by President Klaus Iohannis, PM Dacian Ciolos and 250 representatives of the IT sector.




    PUBLIC SECTOR PAY RISE – The budget-finance and labour committees of the Chamber of Deputies on Tuesday amended an ordinance on public sector pay rises to extend the rise to education and healthcare employees. The Chamber of Deputies will vote on the bill next week. The technocratic prime minister Dacian Ciolos said the salary rises and the elimination of a number of taxes recently proposed by Parliament ahead of the parliamentary elections of December 11th will have a great impact on the state budget.




    IMF REPORT – The economic growth rate remains solid in much of Central, Eastern and Southeastern Europe, credit will pick up again and inflationary pressures are still low, according to the International Monetary Funds autumn report. The shadow economy has been shrinking in all states in the region since 2005, in particular in Latvia, Lithuania and Romania, the IMF notes. The report also highlights the significant progress made by some states, including Romania, in reducing non-performing loans. With respect to consumer prices, the IMF estimates that Bulgaria and Romania will have some of the highest negative average annual inflation rates in the European Union, but that in Romania, consumer prices will return to positive values in 2017. The IMF also projects a minus 2% current account deficit in 2016 and a minus 2.8% in 2017. In the case of the Romanian economy, the IMF expects a GDP growth of 5% in 2016 and of 3.8% in 2017, the highest economic growth rate in Europe.




    MILITARY EXERCISE – Romanian and American military are taking part in the Patriot Shock V exercise at the Capul Midia shooting range in south-eastern Romania, until November 12. A battery of US Patriot missiles are participating for the first time in an exercise in Romania. This is an advanced surface-to-air defence system that can be used in the event of an attack with aircraft, ballistic missiles and cruise missiles and which, according to the Romanian defence ministry, can detect around 100 targets and guide up to nine missiles. The US and Romanian military will be testing the reaction speed in the event of a crisis. The two army detachments will test their response as part of a fictitious air defence scenario. Also for the first time, the F-16 aircraft recently purchased by Romania took part in the Scorpions Fury multinational exercise which ended on Wednesday at a shooting range in Cincu, in Brasov county, central Romania. 1,300 military from Canada, Germany, the Republic of Moldova and Romania have taken part, as well as 200 pieces of technical equipment and 13 Romanian Air Force planes.




    FOOTBALL – Two Romanian football teams will play in the Europa League on Thursday. In Group E, champions Astra Giurgiu face the Czech side Viktoria Plzeň at home. AS Rome and Austria Vienna top the group, with 5 points each, followed by Astra with 3 points and Plzeň with 2. In Group L, vice-champions Steaua Bucharest play against FC Zurich away. In this group, Villareal lead with 5 points, followed by Osmanlıspor and Zurich, each with 4 points, and Steaua at the bottom of the ranking with 2 points.


    (Translated by Elena Enache)















  • Economic Growth in Romania

    Economic Growth in Romania


    This year, Romania will register the highest economic growth rate in Europe: 4.9%. This optimistic estimate was made by the International Monetary Fund, which revised upwards, to 5%, its forecast regarding Romanias economic development this year. In April, the National Forecasting Committee, subordinated to the Romanian Finance Ministry, whose forecasts are the basis on which the Government makes its own budgetary and economic planning and forecasting, estimated a 4.2% growth, just like the IMF and the European Commission had done.



    In September, the National Forecasting Committee also revised its forecast up to 4.8%, following the unexpected growth in the first half of the year. According to the latest World Economic Outlook report, made public on Tuesday, the IMF warns that the economic growth peak that Romania registered in 2016 will be followed in 2017 by a slowdown expected to reach 3.8%, slightly above the estimated 3.6% rate announced in April. But even so, next year the country will register the highest economic growth rate in Europe.



    At the same time, for 2018, the IMF estimates that the Romanian economy will register a 3.3% growth rate. On the other hand, the IMF has also changed its forecasts regarding the evolution of consumption prices in Romania this year. Thus, the minus 0.4% forecast in April was revised upwards to minus 1.5%, which means that Romania and Bulgaria will rank first in the EU in terms of annual negative inflation rate.



    Still, for 2017, the IMF believes that consumption prices in Romania will go up, registering a growth of 1.7%, and will keep on growing in 2018 as well, up to 2.5%. The IMF has also revised upwards the forecasts regarding the current account deficit in 2016, from 1.7% in April to 2%. The deficit will grow next year, to reach an estimated 2.8% as compared to the 2.5% rate estimated in April. In 2018, the deficit would exceed the threshold of 3% of the GDP, to reach 3.2%.



    As regards the unemployment rate, the IMF has maintained the forecast of 6.4% this year, and 6.2% next year.




  • October 4, 2016 UPDATE

    October 4, 2016 UPDATE

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



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



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

  • IMF Recommendations for Romania

    IMF Recommendations for Romania

    The IMF and the World Bank have warned once again against tax cut policies, which the Romanian economy supposedly does not need. The two financial institutions believe that there is a significant risk for Romania to exceed its deficit threshold. In a debate on economic themes, IMF head for Romania, Reza Baqir, told the authorities in Bucharest to cancel or postpone the tax cuts they planned for 2017.



    Reza Baqir said that they would come at a moment when consumption is still high, which could overheat the economy. This is a danger warned about by the former representative, Jeffrey Franks. He pointed out that Romania has to be cautious in terms of economic policies, to avoid past mistakes. He said that it was comforting that Romania is once again growing economically, though not at a level similar to that before the crisis years. At the same time, he pointed out that those levels were not sustainable to begin with. The question, according to him, is whether or not tax rules and salaries over the last year bring us closer or further from sustainability.



    The government in Bucharest is attempting to cut down deficit. Finance Minister Anca Dragu said that reducing the healthcare contribution by 5%, a measure that recently passed the Senate, cannot be applied starting next year. She explained that the measure would cost almost 1.8 billion Euro, in a year when the pressure on the budget runs high.



    “According to our estimates, next year the budget deficit will stand at 2.8, maybe 2.85% with the measures in the Fiscal Code, if we dont take into account the five percent healthcare cut. This is not included in next years budget deficit.”



    World Bank economist for Romania, Catalin Pauna, pointed out that Romania risks being penalized for excessive deficit in 2017, and end up raising taxes. He admitted, however, that the executive still has time to apply compensatory measures, as well as improve its public spending and tax collection. At the same time, IMF representative, Alejandro Hajdenberg said that the raise in the minimum wage in Romania threatens domestic competition and investment, pushing companies towards the gray economy. The official said that the negative impact of raising the minimum wage gets worse when it reaches 25 to 45% of the minimum wage, and in Romania it is almost 45%. The minimum wage in Romania was raised in May to 1,250 lei, the equivalent of 280 Euro.

  • IMF Recommendations for Romania

    IMF Recommendations for Romania

    The IMF and the World Bank have warned once again against tax cut policies, which the Romanian economy supposedly does not need. The two financial institutions believe that there is a significant risk for Romania to exceed its deficit threshold. In a debate on economic themes, IMF head for Romania, Reza Baqir, told the authorities in Bucharest to cancel or postpone the tax cuts they planned for 2017.



    Reza Baqir said that they would come at a moment when consumption is still high, which could overheat the economy. This is a danger warned about by the former representative, Jeffrey Franks. He pointed out that Romania has to be cautious in terms of economic policies, to avoid past mistakes. He said that it was comforting that Romania is once again growing economically, though not at a level similar to that before the crisis years. At the same time, he pointed out that those levels were not sustainable to begin with. The question, according to him, is whether or not tax rules and salaries over the last year bring us closer or further from sustainability.



    The government in Bucharest is attempting to cut down deficit. Finance Minister Anca Dragu said that reducing the healthcare contribution by 5%, a measure that recently passed the Senate, cannot be applied starting next year. She explained that the measure would cost almost 1.8 billion Euro, in a year when the pressure on the budget runs high.



    “According to our estimates, next year the budget deficit will stand at 2.8, maybe 2.85% with the measures in the Fiscal Code, if we dont take into account the five percent healthcare cut. This is not included in next years budget deficit.”



    World Bank economist for Romania, Catalin Pauna, pointed out that Romania risks being penalized for excessive deficit in 2017, and end up raising taxes. He admitted, however, that the executive still has time to apply compensatory measures, as well as improve its public spending and tax collection. At the same time, IMF representative, Alejandro Hajdenberg said that the raise in the minimum wage in Romania threatens domestic competition and investment, pushing companies towards the gray economy. The official said that the negative impact of raising the minimum wage gets worse when it reaches 25 to 45% of the minimum wage, and in Romania it is almost 45%. The minimum wage in Romania was raised in May to 1,250 lei, the equivalent of 280 Euro.

  • May 12, 2016

    May 12, 2016

    INAUGURATION NATO must permanently prove its unity, solidarity and determination — Romanian president Klaus Iohannis said this morning following talks with NATO Secretary General Jens Stoltenberg. The Romanian official went on to say that Romania would continue to strengthen its profile of a European ally with transatlantic vocation and with a stabilizing role in the region. In turn Stoltenberg has described Romania as a very committed and staunch ally, which has along the years largely contributed to the collective defence and security of NATO members. Stoltenberg has arrived in Romania to attend the inauguration of the US anti-missile shield in Deveselu, southern Romania.



    IMF The International Monetary Fund has forecast an economic growth of more than 4% for Romania this year and of 3.6% in 2017. According to the IMF experts, the economy is on a cyclic upward trend boosted by the latest pay-rises in the public sector and the VAT cut, which gave an impetus to consumption. The latest IMF report shows that these favorable circumstances of growth cannot be kept in the absence of reforms. Experts say that authorities should not cave in to social pressure.



    FILM Romanian director Cristi Puiu’s latest production Sieranevada, which is running in the Palm d’Or race of the Cannes international film festival will be screened today on the festival’s first day of screening. The film is about a successful neurologist who is attending a remembrance ceremony for his late father in his parents’ old apartment and the conversations taking place between the participants while waiting for the priest. This is Cristi Puiu’s first participation in the Palme d’Or contest. We recall that his production ‘The death of Mr. Lazarescu’ reaped the Un certain regard trophy back in 2005. Another Romanian filmmaker Cristian Mungiu is at his third participation in the festival with a film entitled Baccalaureate. In 2007, Mungiu won the Palm d’Or prize with a film entitled ‘4 Months, 3 Weeks and 2 Days’. 3 other Romanian productions are running in the festival; Bogdan Mirica’s ‘Dogs’, Catalin Rotaru and Gabi Sarga’s ‘The end of the World’ and Alexandru Badea’s short reel ‘All Rivers flow into the sea.’



    TENNIS The only Romanian left in the single tennis competition, the 35th-WTA seeded Irina Begu has today qualified for the finals after a two-set win against Russian Daria Kasatkina in the eighth finals of the tennis tournament in Rome, a competition with 2.7 million dollars in prize money. Also today Begu will join Monica Niculescu in the doubles game against the pair made up of Yung-Jan Chen of Taiwan and Anna-Lena Groenfeld of Germany.



  • May 11, 2016

    May 11, 2016

    HEALTHCARE – Hexi Pharma, the company involved in the Romanian hospital disinfectant scandal, applied for insolvency with the Bucharest Tribunal. Following inspections checking the quality of the disinfectants used in public hospitals, in tens of Romanian healthcare units non-compliant samples were found. The checks were triggered by a journalist investigation that revealed that the substances provided by Hexi Pharma were even ten times diluted compared to the standard concentration. The General Prosecutors Office initiated an investigation in the case. The PM Dacian Cioloş has said that as of today the first concentration reports concerning the Hexi Pharma samples will be available.




    IMF – The International Monetary Fund will make public today the conclusions of the Board on the latest mission report in Bucharest, of March 2016. The IMF team stated at the time that Romania had made significant progress in addressing the imbalances and resuming economic growth, but that the tax relaxation at a time when consumption is already on the rise and the adoption of legislative initiatives like the debt discharge law jeopardise these accomplishments. International experts advised Romanian authorities to maintain prudent policies and resume structural reforms so as to keep the budget deficit under control, to ensure the efficiency and restructuring of state-owned companies and to improve administration. Romania does not have an on-going agreement with the IMF at present.




    ANTI-CORRUPTION – Romanias deputy PM Costin Borc and the Justice Minister Raluca Prună are taking part on Wednesday and Thursday in London in the Anti-Corruption Summit and the conference that precedes it. According to the Romanian Justice Ministry, taking part in the Summit hosted by the British PM David Cameron are international leaders and representatives of civil society and the business community. The participants will discuss topics like governmental transparency, the international enforcement of anti-corruption laws, means to strengthen international institutions and corporate data confidentiality.




    BREXIT – The GDP of the European Union without the UK is estimated to drop from over 14 trillion euro, as it was in 2015, to 12.1 trillion, according to DPA. Exports will likely drop from 1.8 to 1.56 trillion euro, whereas imports — from 1.7 to 1.47 trillion euro. Also, the EU budget is estimated to fall from nearly 144 billion euro, earmarked for 2016, to around 124 billion euro. The number of official languages in the EU would stay at 24. On June 23 Britons are to vote, in a referendum, on the countrys EU membership, DPA says.




    CANNES – Five Romanian films are taking part in this years International Film Festival in Cannes, which begins today accompanied by exceptional security measures, following the terror attacks in Paris. Graduation by Cristian Mungiu and Sierra Nevada by Cristi Puiu, both of the two directors already awarded in Cannes, compete for the Palme d’Or, whereas “Dogs, the feature film debut of Bogdan Mirică, was selected in the “Un Certain Regard section. In the short film section the Romanian directors Cătălin Rotaru and Gabi Virginia Şarga have entered the film “4:15 P.M. The end of the world. Finally, this years Cinéfondation selection includes the short film “All Rivers Flow into the Sea by Alexandru Badea.




    TENNIS – The top ranking Romanian tennis player, Simona Halep, no. 5 ATP, is playing today against Russias Daria Gavrilova, in the second round of the tournament in Rome. In the same stage of the competition, the Romanian Irina Begu (no. 35 WTA) takes on Viktoria Azarenka, of Belarus. On Saturday, Halep won the final of the WTA tournament in Madrid, after defeating the Slovakian Dominika Cibulkova 6-2, 6-4. In the quarter-finals she had defeated Irina Begu.

  • The IMF and the fight against tax evasion

    The IMF and the fight against tax evasion

    Finance ministers from the G20 leading economies who gathered in Washington DC last week for the spring meetings of the International Monetary Fund and the World Bank agreed on a crackdown on international tax dogging, in the wake of the Panama Papers scandal. The Group has unanimously agreed that transparency in managing international finances is the only efficient instrument in fighting tax evasion, money laundering and the financing of terrorism. We remind you that an investigation conducted jointly by around one hundred publications worldwide has exposed the offshore holdings of an impressive number of politicians, celebrities and criminals.



    These giant leaks of offshore financial records, exposing a global array of corruption and crime, have been grouped under the name of Panama Papers. Against this background, the G20 countries have agreed that secrecy around offshore companies will be lifted and an international blacklist of tax havens will be drawn up. The Group has called on the OECDs Global Forum on Transparency and Exchange of Information for Tax Purposes to take some measures, by October, which should ease states access to information on the identity of the people hiding behind shell companies in tax havens.



    The IMF chief, Christine Lagarde, hailed the initiative, saying that international efforts to fight tax evasion have been constant in the past few years. Lagarde has said: The IMF very strongly welcomes and supports this new momentum to fight corruption and tax evasion… we at the IMF will question whether the technical assistance that we provide to anti-money laundering and to counter-terrorism financing can be better leveraged to identify what more is needed in terms of implementation.



    According to NGOs and the media, the amounts hidden in tax havens between 2008 and 2014 exceed the GDP of Spain, Russia and South Korea put together. In Romania, authorities have decided to open an investigation into the Romanian citizens whose names are mentioned in the Panama Papers. Over 100 natural persons and companies are currently investigated.


    (Translated by E. Enache)

  • March 1, 2016 UPDATE

    March 1, 2016 UPDATE

    Romania’s population is getting older, shows a latest report by the National Institute of Statistics. There are more than 210 thousand adults aged over 65 than children between 0 and 14 years, and the population’s average age has reached almost 41 years, slightly on the rise as compared to the figure reported last year. The National Institute of Statistics also announced that over 22 million people reside officially in Romania but not all of them are living or working in Romania. According to concordant assessments, as many as 3 million Romanian citizens have settled abroad, most of them in Italy and Spain.



    An IMF mission is expected in Bucharest, between March 2nd and 15th, for an annual assessment of the Romanian economy. Headed by the new IMF chief for Romania, Reza Baqir, the mission will be holding talks with representatives of the political parties, trade unions and business associations, representatives of the academic environment and bankers. The assessment, under article 4 in the institution’s statute, is a mandatory monitoring mechanism, for all member countries. The assessment is followed by general recommendations regarding monetary, financial and economic policies in order to ensure economic stability and growth.



    The Bucharest University officials are asking for the withdrawal of the PhD in Law title granted to the former Social Democrat PM Victor Ponta. In a press release issued on Tuesday, the Bucharest University officials announced they forwarded to the Education Ministry the documents proving the accusations of plagiarism made by the committee of experts in law and by the ethics committee of the University, and they once again asked for the cancellation of the order through which Ponta received the PhD title. The former Social Democratic PM claims the University officials’ request is based on political reasons. In a message posted on a social network he expressed conviction that he would win in court. In June 2015 Ponta was the first acting PM of post-Communist Romania to be accused of corruption. In November he resigned his PM position against the backdrop of street protests against the corruption of the political class.



    The labor committee in the Romanian Chamber of Deputies has approved the draft law elaborated by the Social Democrat senator Georgică Severin, which modifies the law on the functioning of the public radio and television corporations. The Social Democratic deputies believe that the positions of President of the Board of Directors and of Director General should be separate. They claimed that a manager appointed following a contest could be more efficient than one appointed by Parliament on political reasons. The Liberal MPs voted against the draft law and accused the Social Democrats of wanting to take advantage of the public television’s bad financial situation, in order to control it. The draft law is to be approved also by the budget, legal and culture committees.



    The Romanian Foreign Minister, Lazăr Comănescu, was received on Tuesday in Teheran by president Hassan Rouhani. The Romanian Foreign Minister hailed the openness policy promoted by Iran towards the international community. According to Radio Romania’s correspondent, minister Comănescu said that signing nuclear agreements with Iran and the start of the process of lifting international sanctions would have a positive impact on the re-launch of Romanian — Iranian relations in all domains. Comănescu also met with his Iranian counterpart Javad Zarif with who he analyzed the prospects of cooperation between the EU and Iran. Also on Tuesday the Romanian official participated in an economic forum where 49 representatives of several big Romanian companies talked about resuming cooperation with Iran in such fields as agriculture, metallurgy, energy, the production of rolling stock and the car industry. Lazăr Comănescu is the first foreign official to visit Teheran after last week’s elections whose result shows a balance between Reformists and Conservatives.



    Bucharest hosted the first meeting of the Romania- Moldova Mass Media Consultative Council, which aims at creating a joint communicational space between the two states and the implementation of European norms in the Moldovan media. The minister delegate for the Romanians in the Diaspora in the Romanian Government, Dan Stoenescu, underlined that the Republic of Moldova needed balanced information, from credible sources. Romania, as a EU member state, will do its best to help the population of Moldova, including the Russian-speaking population, to have access to correct information, he added. The Moldovan ambassador to Bucharest, Mihai Gribincea, in turn, deplored the fact that so far the Moldovan and Romanian press have not done enough to counteract the Russian propaganda in the Republic of Moldova. The Mass Media Consultative Council is made up of 31 members including representatives of the mass media channels in the two states, the civil society and communication experts. They will meet alternatively in Bucharest and Chisinau. (translation by Lacramioara Simion)

  • February 29, 2016 UPDATE

    February 29, 2016 UPDATE

    VISIT-The Romanian authorities are carrying on with the measures meant to reform the judiciary and have set as their main priority to observe the recommendations made in the European Commissions latest report issued under the Cooperation and Verification Mechanism, the Romanian justice minister, Raluca Pruna, said in Bucharest Monday, fresh from a meeting with the European Commissioner for Justice, Consumers and Gender Equality, Vera Jourova. The Romanian official added that Romania was ready to assume its own assessment within internal mechanisms, which mainly consist in the strategy for the development of the legal system and in the new National Anti-Corruption Strategy. Previously the European Commissioner had met with the Romanian Prime Minister, Dacian Ciolos. The two officials talked about cooperation with the European Commission in the field of justice, the anti-corruption fight, the lifting of the Mechanism for Cooperation and Verification as well as about the consumer protection policy, gender equality, the social inclusion of the Roma population and the proposal of setting up, at EU level, the position of European Prosecutor General.



    ECONOMY– An IMF mission is expected in Bucharest between March 2 and 15, for the annual assessment of the Romanian economy. The mission, led by the new head of the IMF mission for Romania, Reza Baqir, will meet with Romanian high officials, with representatives of the political parties, of trade unions, business associations, of the academic environment and the banking system. The assessment of the economy is, according to Article IV of the IMF Statute, a compulsory monitoring exercise for all member states. After the examination of the national situation, general recommendations are made related to monetary, financial and economic policies to be acted upon so as to ensure stability and a positive development of the economy. At present, Romania has no running agreement with the IMF.



    APPOINTMENT-The former deputy governor of the National Bank of Romania, Cristian Popa, has been appointed Vice-President and member of the Management Committee of the European Investment Bank. He will take office on March 1. The EIB is the financial institution of the EU and the Banks Board of Governors consists of 28 European Union Finance Ministers. The bank grants loans mainly to the EU states at very advantageous interest rates for investments in such domains as transport, communications, industry, agriculture, energy, education, healthcare and SMEs. The Romanian Vice-President coordinates the funding activities in Romania, Bulgaria, Cyprus, Greece, Macedonia and the countries of the European Free Trade Association (EFTA).



    HEALTHCARE-One of the children hospitalized at the “Marie Curie hospital in Bucharest with the hemolytic uremic syndrome is still in intensive care, but his condition is stable, sources with the healthcare ministry report. The cause of infection is the E.Coli bacteria which has generated an epidemic in Arges county, in the south, since the beginning of February. In Arges county more than 50 children are still in hospital with serious digestive infections. The National Sanitary-Veterinary Authority has announced that the E.Coli bacteria has been found in cow cheese in Curtea de Arges, a town in the same county, and in poultry products made in a household in Bacau county, eastern Romania.

    LAW ON DEBT DISCHARGE-
    The Romanian Senate on Monday unanimously adopted the law on debt discharge,
    which provides for discharging someone’s debt if they give the mortgaged dwelling
    to the bank. The draft law is to be debated by the Chamber of Deputies, which
    is the decision making body in this case.


    SURVEY- More than 9 in 10 Romanians say they have little or very little confidence in the political parties, a survey conducted by the Romanian Evaluation and Strategy Institute, shows. Three quarters of the respondents have unfavourable opinions of the parties and only 6% of them say these parties are representing the citizens interests. Political leaders are believed to be the main beneficiaries of the parties activity. Some 6 in 10 Romanians prefer an independent politician and only 3 in 10 favour a politician affiliated to a political party. The sociological survey was conducted ahead of the local elections due in summer and of the legislative ones, due in autumn. The elections will be organised by the technocratic government led by Prime Minister Dacian Ciolos, which took office in November, following the resignation of the cabinet led by Social-Democrat Victor Ponta, as an outcome of the street protests against the corruption of the political class.



    MASS MEDIA– The Speaker of the Romanian Senate, Calin Popescu Tariceanu, has said the Romanian Television Company (TVR), which is facing severe financial problems, can redress itself only by a joint effort of the Romanian Government and Parliament. He said the separation of the two positions of Chairman and CEO, respectively, is not a solution to the issue. Tariceanu has also said the National Radio Broadcasting Corporation has had a totally different evolution from that of the Romanian Television Company, in terms of both ratings and financial results, although it functions based on the same law and with the same organizing structure, that is the formula: Chairman and CEO. The deadline for the public debate on the draft bill meant to amend the law regulating the organization and functioning of the Romanian Radio and Television Corporations expired on Monday. The initiator of the law proposes the separation of the positions of Chairman and CEO, in the two media institutions.


    (Translated by Lacramioara Simion and Diana Vijeu)

  • January 12, 2016 UPDATE

    January 12, 2016 UPDATE

    ISTANBUL BLAST– The Romanian Foreign Ministry firmly condemns the terrorist attack carried out in Istanbuls historical district of Sultanahmet on Tuesday, which left dead and wounded. In a press release, the Romanian Foreign Ministry reiterates Romanias solidarity with the Turkish people and its support for the Turkish authorities in the effort to fight terrorism under all its forms. The perpetrator of the suicide bombing which killed over 10 people, among whom nine German nationals, is a Jihadist member of the Islamic State group, said Turkish Prime Minister Ahmet Davutoglu. An emergency government meeting was summoned shortly after the blast, which occurred not far away from the Topkapi Palace and the Blue Mosque, two monuments that are very popular with tourists. According to “CNN Turk, tourists from Germany and Norway are among the injured. Some months ago, a double suicide bombing killed 103 people in front of the central railway station in Ankara. The attack, the severest on Turkish soil ever, was blamed on the Islamic State Jihadist group.



    DIPLOMACY – Romanian Foreign Minister, Lazar Comanescu, paid a visit to Berlin on Tuesday, at the invitation of his German counterpart, Frank-Walter Steinmeier. The talks focused on bilateral relations as well as on issues of topical interest on the European, regional and international agenda. One of the focal points of the talks was the cooperation between Bucharest and Berlin in the context in which Germany is holding the presidency of the OSCE this year. Lazar Comanescu underlined Germanys importance as an economic engine at European level and as a partner of Romania. Over 20% of Romanias foreign trade is bound for Germany and the Romanian-German trade balance is reasonably balanced, the Romanian Foreign Minister said. Over 20,000 companies running on German capital operate in Romania at present, employing over 300,000 people.



    NEW IMF MISSION CHIEF FOR ROMANIA – The new head of the IMF mission to Romania, the Pakistani Reza Baqir, is currently on a four-day visit to Bucharest, as of today, to meet the Romanian authorities. He replaces Andrea Schaechter, who completed her two and a half year term in office. Reza Baqir has been working with the IMF for 15 years, and was previously employed by the World Bank. At present Romania does not have an on-going agreement with the IMF. The latest accord came to an end in September 2015, after several failed attempts to reconcile the divergent views of the Romanian authorities and the international financial institution with respect to the fiscal relaxation promoted by Bucharest. Meanwhile, on Monday Romania signed a new memorandum with the World Bank, concerning the improvement of public administration efficiency. Under the new deal, WB will continue to provide technical assistance to Romanian public institutions until 2023 and will support the Government in enforcing structural reforms and public administration modernisation programmes.



    MOLDOVA – The leader of the Democratic Party in the Republic of Moldova, Marian Lupu, announced, after consultations with President Nicolae Timofti, the formation of a new parliamentary majority which could get a new cabinet endorsed. According to Lupu, the new coalition includes 56 out of the total 101 MPs: Democrats, Liberals, some members of the Liberal-Democrat floor group, which was part of the former pro-Western government coalition, as well as the 14 ex-Communist MPs who created a so-called Social Democratic Platform. Until Wednesday, Lupu said, this majority would also nominate a new candidate for the PM post. Moldovan media quoted by Radio Romania correspondents suggest this might be Vlad Plahotniuc, a controversial businessman and the one who finances the Democratic Party. Unless a new cabinet is sworn in by January 29, President Timofti will have to dissolve Parliament and call snap elections. The governmental crisis started in autumn, when the three-party government headed by the Liberal Democrat Valeriu Strelet was dismissed under a no-confidence motion tabled by the pro-Moscow left wing and backed by the Democrats.



    COUNTER-TERRORISM – The global counter-terrorism forum and the international coalition against the IS group convened on Monday for the first time, in the Hague, to coordinate efforts to fight terrorism. Officials from 50 countries concluded at the Europol meeting, initiated and chaired by the Netherlands, that fighting terrorism does not require new structures, but rather the implementation of all agreements and improved cooperation. The issue of young people recruited by terrorist groups into Syria and Iraq was also discussed. Countries are urged to step up and strengthen intelligence sharing concerning such youth. The Dutch Foreign Minister, Bert Koenders, emphasised that the efforts to counter terrorism must stay within the limits of both legal and moral principles.


    (Translated and edited by Diana Vijeu)