Radio România Internațional

Tag: inflation forecast

January 14, 2025

MEETING – Romania’s Prime Minister, Marcel Ciolacu, is today meeting James O’Brien, US Assistant Secretary of State for European and Eurasian Affairs. On Monday, the US official visited Moldova, where he said that the development of transport infrastructure of Romania, Moldova and Ukraine will create development opportunities for the three states. On the sidelines of the QUINT ministerial meeting, Secretary O’Brien said that Russia’s attacks on Ukraine were designed to “devastate the economy of the region”. Attending the event in Chișinău were also the deputy Prime Minister and Minister for Infrastructure and Regional Development in Moldova, Vladimir Bolea, Romania’s Transport Minister, Sorin Grindeanu, deputy Minister for the Development of Communities, Territories and Infrastructure of Ukraine, Serhiy Derkach, as well as the head of the EU Directorate-General for Mobility and Transport, Magda Kopczynska.

INFLATION – The annual inflation rate went up to 5.14% in December 2024 from 5.11% the previous month, amidst a 5.09% increase in the price of foodstuffs, 4.38% in the price for non-food products and 7.10% in the cost of services, according to National Statistics Institute data made public today. Compared to 2023, the annual inflation rate in December last year stood at 5.5%. The National Bank of Romania upgraded its inflation forecast for the end of 2024, from 4% previously to 4.9%, and estimates the inflation rate will go down to 3.5% at the end of 2025.

SPENDING – Household spending went up in the third quarter of 2024. From the average income of roughly 1,650 EUR of a household, over three quarters are spent on taxes, food and utilities. Conversely, spending for education and investments remains really low.

CONVICTION – US president elect Donald Trump would have been convicted for his attempt to influence the result of the 2020 presidential election had he not won the 2024 ballot, a report drawn by Special Counsel Jack Smith made public by the Justice Department shows. According to the report, Trump was involved in an “unprecedented criminal effort” “to overturn the legitimate results of the election in order to retain power” in 2020. Donald Trump, who will return to the White House on January 20, was the target of a criminal investigation into the January 6, 2021 assault on the Capitol, when a crowd of supporters of Trump protested in Washington against Joe Biden’s win in the 2020 election. Special Counsel Jack Smith left the Justice Department last week, a few days after submitting his final report. Trump and another two individuals were suspected of having tried to prevent the report from being published, but the court ruled against their request.

NATO – Europe cannot afford to suspend its defense cooperation with the United States, NATO Secretary General Mark Rutte has said. He explained that, without the United States, the EU would have to increase its defense spending four times, while military security would only be achieved some 15 years later. The NATO official urged EU lawmakers to stop considering the autonomy of the community bloc and instead come up with ways of cooperating more closely with the US on military spending and avoid a media war regarding the introduction of new taxes. To increase the share of national arms industries on global markets, Mark Rutte wants to increase defense spending, considering that the current reference level, 2% of the GDP, seems insufficient in the context of the war in Ukraine.

CULTURE DAY – Employees of cultural institutions in Romania are expected to stay protests tomorrow on National Culture Day, demanding the payment of extra hours and a bonus for working weekends, equal pay for all employees in the sector as well as lifting the hiring freeze. National Culture Day will be celebrated in Romania, the Republic of Moldova as well as in Romanian communities abroad, this year marking 175 years since the birth of Romania’s greatest poet, Mihai Eminescu.

TENNIS – Romanian tennis player Gabriela Ruse ousted another Romanian player, Irina Begu, 6-4, 6-0 in the opening round at the Australian Open on Tuesday. In the next round, Ruse will take on Madison Keys of the United States, who knocked out Ann Li of the USA in the first round. This is the second time Gabriela Ruse reaches the main draw in Melbourne after 2022. Another Romanian player, Jaqueline Cristian, is playing Lucia Bronzetti of Italy in the second round. (VP)

14 January 2025
September 12, 2022

GRAIN EXPORTS – France’s Transport
Minister, Clement Beaune, has today announced the signing of an agreement with
Romanian authorities designed to boost the export of grain from Ukraine to
developing countries, particularly in the Mediterranean. According to Reuters,
France is expected to help enhance the efficiency of the port of Galați, modernize
border crossing points in northern Romania, max out the effective use of grain
silos in the port of Constanța and boost the operability of this port and on
the Sulina Canal. Ukraine’s Agriculture Minister has recently estimated his
country’s grain exports could go up to 6.5 tons in October, which is double the
volume reported in July after the gradual opening of Ukrainian ports in the
Black Sea, based on the agreement signed in Istanbul. Russia’s president,
Vladimir Putin, has recently criticized the fact that only a small part of
Ukrainian grain will be exported to poor countries based on this agreement,
accounting for 2 of the 87 cargo ships that transported as much as 60 thousand
tons of grain. However, analysts with the British Defense Ministry have
disproved Putin’s statement, citing data centralized by the UN, according to
which approximately 30% of Ukraine’s grain exports have reached low- and
middle-income countries in Africa, the Middle East and Asia.

SESSION – The European Parliament
starts a new session today in Strasbourg. European Commission president, Ursula
von der Leyen, will deliver her state of the union address, presenting the
impact of the Commission’s activity in the last year and future plans for the
community bloc, particularly those related to solidarity with Ukraine,
sanctions against Russia, energy security and curbing the EU’s reliance on
Russian fossil fuel, as well as the latest energy price hikes. President Von
der Leyen will also address the Green Deal and green transition, digitization,
the EU’s response to the COVID-19 pandemic and preparing for future pandemics,
as well as the Next Generation EU recovery plan.

ENERGY – The European Commission is
this week expected to present the set of proposals agreed upon in Friday’s
meeting of EU Energy Ministers, designed to combat the energy crisis. The
package might include a cap on energy prices and taxing the excess profits of
fossil fuel companies and redistributing the revenues to state-aid schemes.
Romania’s Energy Minister, Virgil Popescu, says Romania supports a balanced
approach towards all Member States. Capping natural gas prices at community
level would significantly curb volatility on the EU energy market, the Romanian
official said.

KING CHARLES – King Charles III this
morning appeared in the British Parliament, where the House of Commons and the
House of Lords met in a joint sitting to present condolences to the new
monarch. The King is today expected to attend a sitting of Scottish Parliament
as well. The coffin of her Royal Majesty Queen Elizabeth II was in Edinburgh
yesterday, and today it will be moved to from Throne Room in Holyroodhouse
Palace, the official residence of the royal family in the Scottish
capital-city, to Saint John’s Cathedral, as part of somber journey through the
Scottish countryside. Attending will be the new king and other members of the
royal family. The coffin will remain at Saint John’s until tomorrow, allowing
locals to pay their last respects. Tomorrow, the coffin will arrive at Buckingham
Palace in London. The state funeral will take place on September 19 at
Westminster Abbey. Meanwhile, people from all across Britain continue to lay
floral tributes at the residences of the royal family from all across the
country.

INFLATION – Romania’s annual inflation
rate went up to 15.32% in August from 14.96% in July. According to data
published by the National Statistics Institute on Monday, foodstuffs prices
went up by 18.22%, while those for non-food products also went up by 15.98%.
Prices for services increased by 8.26%. The Central Bank has increased its inflation
forecast for 2022 to 13.9%, estimating an inflation rate of 7.5% for 2023. The
Central Bank expects the deflation trend to temporarily stop in the second
quarter of 2023, once the current state-aid schemes targeting the energy sector
end. The Central Bank expects an inflation rate of 2.3% for June 2024. (VP)

12 September 2022
December 11, 2020

COVID-19 – In its session
today the Government decided to extend the state of alert by another 30 days
starting December 14. State Secretary Raed Arafat said all restrictions remain
in place, including the nighttime curfew. One new measure will be introduced,
regarding cable transport operators in ski resorts. Cable transport facilities
will remain open, although the Government intends to avoid overcrowding in
order to limit the spread of the virus. Therefore aerial trams with 20 seats
will only carry 10 people. Raed Arafat called on Romanians to limit their
visits, avoid going caroling or to New Year’s Eve parties during the winter
holidays. 545 thousand Romanians got infected with COVID-19 since the start of
the outbreak, of whom 80% have recovered. So far over 13,100 people have died
to the virus. 6,460 new infections were reported on Friday, most case being
signaled in Bucharest. Some 1,300 patients are in intensive care.

TALKS – President Klaus
Iohannis on Monday invited political parties to consultations with a view to
designating the new Prime Minister. Taking part in consultations will be the
Social-Democratic Party, the National Liberal Party, the Save Romania Union -
PLUS Alliance, the Alliance for the Union of Romanians and the Democratic Union
of Ethnic Hungarians. The Social-Democrats have nominated Prof. Alexandru
Rafila, Romania’s representative at the WHO, whom they want to lead either a
Social-Democratic Cabinet, or a technocratic government. The Liberals, in turn,
have nominated Florin Cîţu, the current Finance Minister and say they will hold
official talks with a view to forming a majority in Parliament with the Save
Romania Union – PLUS Alliance and the Democratic Union of Ethnic Hungarians
starting Saturday.

INFLATION – The annual
inflation rate went down to 2.1% in November, from 2.2% in October, considering
foodstuffs, non-essential products and services registered price hikes, the
National Statistics Institute announced on Friday. In its inflation report, the
National Bank of Romania has estimated a 2.1% inflation rate for the end of
2020, down by 0.6% compared to its previous forecast.

INTERNET USAGE – Over 5.3 billion
Gigabytes of Internet were used in Romania in the first half of 2020, of which
90% in home connections. A report of the National Authority for Management and
Regulation in Communications in Romania (ANCOM) reveals that total broadband
traffic registered a major increase in the first six months of the year as an
effect of the coronacrisis, and went up by 33% compared to the previous
semester, the biggest increase since 2015. At the same, mobile data usage
reported a 12% increase, the lowest reported so far. During the state of
emergency, Internet traffic moved to broadband connections, with remote work
and online teaching becoming the norm. People staying at home also connected to
WI-FI home connections for accessing the Internet, the President of the
Authority, Eduard Lovin, explained.

EUROPEAN COUNCIL – At the European
Council meeting in Brussels, EU leaders, including Romania’s President Klaus
Iohannis, adopted the Union’s seven-year budget and the post-pandemic recovery
package, worth €1.8 trillion, after Poland and Hungary initially refused to
vote in favor due to disbursements being tied to the observance of the rule of
law. From the upcoming EU budget, Romania will receive €46.7 billion for
various sectors, such as agriculture, cohesion, rural development,
infrastructure or transports. From the recovery package, Romania will get €33.5
billion in grants and loans. Another topic on the meeting’s agenda is the
reduction of greenhouse gas emissions by at least 55% by 2030. The Romanian
President called for the creation of a flexible framework allowing all Member
States, irrespective of their development, to effectively meet climate change
goals. EU leaders also agreed to sanction Turkey for its aggressions in the
Mediterranean Sea against Greece and Cyprus.

SPORTS – Romania’s women’s
handball team lost 25-20 to Croatia on Thursday in its first game in the second
main group at the European Handball Championship in Denmark. Romania is bottom
of the group tables with zero points and has lost all chances of qualifying to
the semi-finals. Romania will play two more games, against Hungary and the
defending world champions, the Netherlands. In news from football, Romania’s
champions CFR Cluj failed to qualify to the Europa League knock-out phase after
losing 2-1 away from home to Young Boys Berne of Switzerland. CFR Cluj ranked 3rd,
after AS Rome, in top position, and Young Boys in runner-up position. (V.
Palcu)

11 December 2020
February 11, 2020 UPDATE

EARLY ELECTIONS – The investiture vote for the new Cabinet will be held in Parliament on February 24. Ministers will appear before the specialist committees starting next week. Prime Minister designate Ludovic Orban said he wants to trigger early elections, by enabling citizens to elect a new Parliament, which should be fairer, more honest and more representative. Ludovic Orban is holding talks with parliamentary party officials, in an attempt to garner support for the organization of early elections. Snap elections may only be called if 2 Cabinet nominations are rejected by Parliament within 2 months. Orban, whose Liberal Cabinet was recently dismissed under a no-confidence motion, Monday sent to Parliament a list of ministers, with no changes whatsoever from the previous team, and a slightly updated government programme. The main party in Parliament, the Social Democrats, announced they will not take part in the talks with the Liberals. The Social Democratic Party filed a challenge with the Constitutional Court, arguing that the President designating a prime minister who has already been dismissed comes against the will of Parliament. The idea of early elections is mainly supported by the National Liberal Party and Save Romania Union. Regular general elections are scheduled for this autumn.

JUDICIARY – The incumbent Justice Minister Cătălin Predoiu on Tuesday presented European Commission experts with a bill on dismantling the special division investigating magistrate offences as well as the progress of debates on this topic. In its latest Cooperation and Verification Mechanism report the Commission criticized the establishment and the activity of this division, which it said was an instrument of political pressure. The latest report under the Mechanism was released in October 2019, and suggested the extension of verification on the Romanian judiciary, on grounds that in 2019 Romania backslid in terms of the fight against corruption and the independence of the justice system. A team of European Commission experts met in Bucharest with members of Parliament’s judicial committees. According to the chairman of the judicial committee in the Chamber of Deputies, talks focused on identifying the best solutions regarding the criminal and criminal procedure codes and appointing chief prosecutors.

INFLATION – The central bank has lowered Romania’s 2020 inflation forecast from 3.1% to 3%, Governor Mugur Isărescu announced on Tuesday. For next year the National Bank expects a 3.2% inflation rate. A number of elements have been taken into account, which might lead to a decrease of the inflation rate from the forecast value. These elements include developments in the Eurozone economy, including geopolitical tensions and weaknesses in emerging markets, a possible escalation of trade conflicts, the completion of Brexit, as well as the accommodating monetary policies of the European Central Bank and the Fed. On the other hand, liberalization of the electricity and natural gas markets may push inflation higher than expected, as do the problems in the labor market, such as the shortage of labor and the mismatch between demand and supply in this respect.

COVID-19 – China announced that the novel coronavirus has already killed more than 1,000 people, and the number of cases exceeds 42,000. In the last 24 hours alone, over 100 deaths have been reported, which is the largest number of victims in just one day since the epidemic broke out. Most deaths were reported in the Hubei province. A team of physicians with the World Health Organization has arrived in China to help in the research. Meanwhile, the WHO organizes a 2-day meeting in Geneva, with renowned physicians, public healthcare experts and scientists, in an attempt to encourage a better response of the international community to the new coronavirus outbreak. On opening the meeting, the WHO director general Tedros Adhanom Ghebreyesus said the coronavirus epidemic was a major threat, and called on scientists to work together to develop vaccines or medication to fight the virus. The official code name for the virus is Covid-19. In Romania, several people, including Chinese nationals, are under house monitoring, and the authorities continue to take measures to prepare for possible infection cases. A special unit was set up in Bucharest for the Romanians who return from China and have to be quarantined for 14 days.

TENNIS – Romania’s Fed Cup team will take on Italy in a playoff match that will decide which team remains in the World Group, according to Tuesday’s draw held in London. The match will be played in Romania over April 17-18. Romania last weekend lost 3-2 to Russia at home, counting towards the final tournament. Simona Halep, world no. 2, did not represent Romania. Italy currently leads 2-1 in matches against Romania.

(translated by V. Palcu)

11 February 2020
November 12, 2019 UPDATE

EUROPEAN PARLIAMENT – The
European Parliament Committee on Legal Affairs has approved the candidacies of
the commissioners designated by France, Romania and Hungary. In a special
session on Tuesday, the Committee analyzed any potential or real conflicts of
interest in each of the case. After getting the endorsement of the Legal
Affairs Committee, the three candidates, Thierry Breton, Adina Valean and
Oliver Varhelyi, will be heard by the specialized committees on Thursday. Once
the hearings completed, the EC President Elect Ursula von der Leyen will
present the list of designated commissioners and the program of the Commission
during a plenary session on November 27. Also on Tuesday, Adina Valean has been
heard by the joint European Affairs Committees of the Romanian Parliament,
whose role is advisory. She has announced that, as a European Commissioner, she
will keep supporting the mechanisms for interconnection, by means of which 1.24
billion Euro have been invested in the Romanian transport infrastructure, and
another 500 million in the energy infrastructure. The mechanism is aimed at
interconnecting the EU’s transport, energy and telecommunication grids.

PRESIDENTIAL ELECTION – The
leaders of the National Liberal Party and the Social Democratic Party, whose
candidates will run in the second round of the presidential elections in
Romania, on November 24, met on Tuesday to discuss their campaign strategies.
In the first round, the current president Klaus Iohannis, supported by the
Liberals, got 37.5% of the votes, and the head of the Social Democratic Party,
Viorica Dancila, got approximately 23%. Viorica Dancila said she wants a public
debate head-to-head with Klaus Iohannis. The latter has dismissed the idea of a
debate with Viorica Dancila, whom he considers the candidate of an unreformed
party that tranmpled the rule of law and sidetracked Romania’s pro-European
projects. At the end of Tuesday’s meeting of the Socialist Party Executive Committee, Viorica Dancila said former Justice Minister Ana Birchall and Cozmin Gusa, as well as all MPs who voted the investiture of the Orban Cabinet, have been excluded from the party ranks.

MOLDOVA – Romania’s President
Klaus Iohannis believes the collapse of Maia Sandu’s Cabinet in the Republic of
Moldova at a very important time for the reform of the judiciary goes against
the country’s medium- and long-term interests. According to a Presidency
release, the Romanian President warned that in the current context, Romania’s
support, including its financial assistance, will be strictly dependent on the
continuation of key reforms for the democratic development of the Republic of
Moldova and its European track. In turn, Prime Minister Ludovic Orban believes
the decision to dismiss Maia Sandu’s Cabinet by means of a no-confidence motion
raises many questions as to the subsequent evolution of this country. Prime
Minister Orban warned that the chances of the Romanian Government cooperating
with a Moldovan Government that offers no real guarantees in defense of a
genuine democracy are very slim. Invested 5 months ago, Maia Sandu’s pro-western
Government did not survive Tuesday’s no-confidence motion in Parliament, filed
by the pro-Russian Socialist Party and the Democratic Party. The motion was
filed last week by the Socialist Party, a junior coalition party, after the
Government pledged to modify the procedure for appointing the prosecutor
general. The EU High Representative for Foreign Affairs, Federica Mogherini,
reiterated that the EU’s relations with Moldova will continue to rely on the
observance of the rule of law and democratic standards.

RADET – Bucharest’s heating
supplier RADET has officially gone bankrupt, following a final ruling by the
Bucharest Court of Appeal, but the municipality and representatives of ELCEN,
the company that produces heat and hot water for the centralized system, has
assured the citizens of Bucharest that they will not be affected by this
situation. The company that provides heating in the capital has been under
insolvency for three years, and the causes that have led to the current
situation are many. Among them, the huge debt, of more than 840 million Euro,
to the producer ELCEN, the state not paying the due subsidies and also the old
installations owned by RADET.

INFLATION – The annual rate of
inflation in Romania dropped in October to 3.4%, from 3.5% in September,
against the background of an increase in the prices of non-food products and
services. The National Bank has decreased to 3.8% the inflation forecast for
the end of this year and it estimates an inflation rate of 3.1% next year. The
International Monetary Fund has revised upwards the forecasts regarding
consumption prices in Romania this year, up to an average annual increase of
4.2%, as to the 3.3% estimated in spring.

(Translated by M. Ignatescu & V. Palcu)

12 November 2019
November 8, 2019 UPDATE

INFLATION – Romania in neither in the
precipice, nor on the verge of it, Central Bank Governor Mugur Isarescu has
said upon presenting the quarterly report on inflation. According to the
Romanian official, the country’s main vulnerability is that most of the
economic growth is based on consumption. Mugur Isarescu also said that
Romania’s deficit of 6.1% for 2021, as estimated by the European Commission,
cannot be taken into account, because it would endanger Romania’s position on
the external markets, where it has incurred significant debt. Isarescu has said
that the Central Bank has decreased to 3.8% the inflation forecast for the end
of the year and estimates a 3.1% inflation rate for end-2020. The Central Bank
estimated, in August 2019, a 4.2% inflation rate for the end of 2019 and of
3.4% for December 2020.

ELECTION – The campaign for the first
round of the presidential election comes to an end on Saturday morning. Voters
will hit the polls on Sunday in Romania, but Romanians living abroad will vote
over the course of three days, starting Friday at noon and ending Sunday
evening. Postal voting was for the first time introduced for the voting process
abroad. These measures were taken to avoid the long waiting hours, which were
reported at the last presidential election and the European Parliament
election. A total of 14 candidates have enrolled in the race. The second ballot
is scheduled for November 24.

MEETING – Prime Minister Ludovic Orban
on Friday met US Ambassador Hans Klemm. The parties agreed to deepen and
develop the Strategic Partnership between the two countries in all its aspects,
with a focus on military and security cooperation, reads a Government release.
Ludovic Orban underlined Romania’s openness towards dialogue in order to ensure
a stable and investor-friendly environment.

MOTION – The Socialist Party in the
Republic of Moldova, a ruling coalition party, on Friday filed a no-confidence
motion against Maia Sandu’s Cabinet. The Socialists decided to withdraw their
political support for the government, claiming the Government’s bill on the
regulation of the Prosecutor’s Office is in breach of the Constitution and
international standards. Igor Dodon’s Socialist Party has two representatives
in the Government, the Deputy Prime Minister for Reintegration, Vasile Sova,
and Defense Minister Pavel Voicu.

HEARINGS – The hearings of the new
commissioners designated by Romania, Hungary and France will held on November
14, the European Parliament’s leaders decided on Friday. Once the candidates
are greenlit by the JURI Committee on Legal Affairs, which will investigate any
potential conflcits of interest, the three candidates, namely Adina Valean from
Romania, Olivier Varhelyi from Hungary and Thierry Breton from France, will
appear before Parliament’s special committees. Adina Valean will appear before
the Transport and Tourism Committee, Olivier Varhelyi will appear before the
Foreign Affairs Committee, while Thierry Breton will appear before the
Industry, Research and Energy Committee. The European Commission’s President
Elect Ursula von der Leyen will subsequently present her team and governing
program in a joint Parliament session. We recall the nomination of Romanian MEP
Adina Valean for the position of EU Commissioner for Transport was accepted by
Ursula von der Leyen on Wednesday.

FILM – The film Queen Marie of Romania directed by Alexis Sweet
Cahill is as of Friday screened in cinemas across Romania. Based on true
events, the film follows a landmark of the year 1919, the Paris Peace
Conference. The script relies on excerpts from the Queen’s diary, period press
articles as well as testimonies of politicians at the time. The film was shot
in genuine locations from Bucharest and Paris, recreating the mood of 1919.
Relying on an international cast, the film features Romanian actress Roxana
Lupu in the lead role. The granddaughter of Queen Victoria of England, Queen
Marie (1875-1938) was wife to King Ferdinand I. She constantly sought to
strengthen ties between Romania and the UK. Following the Paris Peace
Conference, she undertook diplomatic efforts for the international recognition
of enlarged Romania.

TABLE TENNIS – The Romanian women’s
table tennis team, the defending European champions, lost nil-3 to Japan in the
quarterfinals of the World Cup venued in Tokyo. In September, Romania won gold
at the European Table Tennis Championships in Nantes, France, after defeating
Portugal in the final.

(Translated by
V. Palcu)

8 November 2019