Radio România Internațional

Tag: investment

  • Summit for Europe

    Summit for Europe

    European leaders met in Brussels on Thursday for an emergency summit, where they agreed on an arms plan meant to bolster defenses on the eastern flank of the Baltic and Black Seas. With the United States withdrawing its support for Ukraine amid a European campaign to support that country and to counter Russia’s expansionist tendencies, the 27 leaders of the community bloc gave the green light to a European Commission plan to strengthen defense. European leaders reiterated their support for Ukraine in Brussels and for providing security guarantees, together with the United States, in the event of a ceasefire. This week, EC President Ursula von der Leyen proposed a plan called “ReArm Europe” that could mobilize close to 800 billion Euros, of which 150 billion in the form of loans, to strengthen the continent’s defense capabilities.

     

    Several options are mentioned, including the possibility that member states significantly increase their military spending, without this being taken into account in the calculation of their deficit, limited in principle to 3% of their gross domestic product. These funds must be used to invest jointly, between at least two member states, in areas where the needs are most urgent, such as air defense, missiles, drones and anti-drone systems or even artillery systems. The EC President Ursula von der Leyen assured that with this equipment member states will be able to massively strengthen their aid to Ukraine. The Baltic states, Poland and Romania have imposed their point of view for prioritizing the eastern flank within the framework of projects with European funding worth 150 billion Euros. The details of this plan will be finalized together with the NATO teams.

     

    Attending the summit in Brussels, Romania’s interim president Ilie Bolojan said: “Certainly, a good part of this equipment, of these investments will be located in this area, and the production part, the consortium part, will be distributed throughout the European Union. And I think this is an opportunity for our defense industry as well, for part of these products to be made in factories in Romania, thus creating jobs”.

     

    Bucharest will not send troops to Ukraine, but it could become a regional military center, for organization and support for troops sent by other states. Romania’s presence will be necessary to know whether there will be elements related to the use of our country’s infrastructure, military bases, for example, on Romanian territory or elements of other military infrastructure such as ports and airports, Ilie Bolojan also said. (LS)

  • The benefits of Romania’s belonging in the EU

    The benefits of Romania’s belonging in the EU

    In January Romania marked 17 years of EU membership. In the same month an INSCOP poll showed that 9 out of 10 Romanians are against the idea that their country should get out of the community bloc, as compared to 72% in January 2022. Entitled “Romania between national and European in the misinformation era. Economic Patriotism, values and conspiracy”, the survey, ordered by Funky Citizens organization, has revealed a 67% trust rate in the European Union as compared to 56% in January 2022. The aforementioned survey was the first conducted after the shock caused by the cancellation of the presidential election in December last year.

    As if to respond to those who denigrate community institutions, who aren’t few nowadays, the Romanian Minister of Investment and European Projects, Marcel Bolos, writes on Facebook: “In a time when extremist voices are trying to downplay the benefits of Romania’s belonging in the European Union, let’s not forget that development is not an issue of naïve pride, but of pragmatism. Romania didn’t grow out of nothing; it didn’t change overnight and certainly didn’t develop by denying opportunities.”

    Since its accession, Bolos says, Romania has got over 100 billion Euros in European funds, gross value. And this is the engine that has fundamentally changed the structure of our economy, the minister says. According to him, Romania no longer relies on a peripheral economy, being a country that is rapidly bridging gaps and which has overcome Poland, Hungary, Croatia and Greece in terms of the GDP per capita, which is an essential indicator for the standard of living.

    “Figures are extremely relevant; the value of the investment made is nearly equal to the GDP at the time of accession. If we are unaware of this we tend to blame the European bloc, but the fact that we are presently at the highest level of our development, is something that we owe to our EU and NATO membership”, Minister Bolos also says.

    According to him, the European funds Romania received are reflected in the country’s infrastructure, with nearly 900 kilometers of motorways and roads built in the past two decades. Over two million Romanians have been connected to the water & sewerage networks and according to Minister Bolos, over 100 thousand companies have benefitted from development grants, thousands of schools and hospitals have been refurbished, fitted with proper equipment and enlarged. Stable jobs have been created and fresh investment made.

    All these have given an impetus to the economy and the annual pace of the private investment in the economy tripled in 2024 as compared to the time of accession from 20 billion Euros to 70 billion, Bolos says.

    He believes that without European money, Romania would have remained stuck into an endless cycle of underdevelopment, being dependent on a national budget, which is insufficient for strategic development. “There is one reality only: the EU has been our partner in development. And by belonging in the European bloc, Romania has opted for progress”, Minister Boloş’ post says.

    (bill)

  • February 4, 2025 UPDATE

    February 4, 2025 UPDATE

    Romania is ‘a politically and economically stable and safe country,’ oriented towards investment and reform, Prime Minister Marcel Ciolacu said on Tuesday at a meeting with World Bank officials in Bucharest. ‘Our country is a regional pillar of security and economic stability for Europe and for the Strategic Partnership with the US,’ the PM added. According to a news release issued by the government, Bucharest sees the WB as a partner for its goals and continues to rely on the funding and know-how provided by the group.

     

    During the meeting, the participants reviewed jointly-developed projects in the fields of healthcare and emergency management. The World Bank officials welcomed the Government’s reform plan and the attention paid to investments, noting that Romania is a strong and resilient partner. I am confident that together we will continue to implement the ongoing projects and expand the portfolio with new investments in energy, green transition, infrastructure and other areas with growth potential, WB executive director Eugene Rhuggenaath said. The institution’s representatives also appreciated the support offered by Romania to the neighboring Republic of Moldova and Ukraine, as well as its contribution to ensuring stability in the region.

  • November 6, 2024

    November 6, 2024

     

    US ELECTION The president of Romania Klaus Iohannis and PM Marcel Ciolacu today congratulated Donald Trump on his victory in the US presidential elections. “Romania is a strong and committed strategic ally of the USA. Through our joint efforts, we will bring peace and prosperity to our countries and beyond, defending our common interests,” the Romanian president wrote on a social network. The Republican Donald Trump claimed an “unprecedented mandate,” in a speech held at West Palm Beach, Florida, after Fox News called the election for Trump, the only US news outlet to do this so far. Although technically the vote count is not yet over, Donald Trump thanked the Americans for electing him. “We made history,” he said, and promised to help the country “heal.” Donald Trump’s running mate, JD Vance, said in his turn that “we have witnessed the greatest political comeback in US history.” His opponent, the Democrat Kamala Harris, has not yet addressed her supporters.

     

    SENATE The Republicans appear to have have gained control of the US Senate, previously held by the Democrats, with a majority of at least 51 seats out of 100, according to projections. The US Senate has 100 seats (2 for each US state) and 34 members are replaced following the vote organised concurrently with the November 5 presidential election. In the House of Representatives, neither party seems to have a decisive advantage, as the vote count in the 50 states continues today. The control of the two chambers of the US Congress is a major stake, as the room for maneuver of the country’s president depends largely on the laws they are able to get passed in the Senate and the House of Representatives. Both vote on federal laws, but the Senate also has important exclusive powers, especially in the appointment or removal of key government members or in the confirmation of federal magistrates.

     

    EUROPEAN COMMISSION The Social Democrat Roxana Mînzatu, Romania’s nomination for vice-president of the new European Commission, received a positive review from the specialist committees of the Romanian parliament. Next week, she will also be heard in the committees of the European Parliament. In addition to the position of vice-president, the Romanian commissioner will also serve as Commissioner for People, Skills and Preparedness.

     

    INVESTMENTS PM Marcel Ciolacu had a meeting with a delegation of Japanese investors on Tuesday in Bucharest. They expressed their interest in strengthening financial support for Romania in transport infrastructure, energy, digitisation and high techn projects. Previously, at a bilateral Energy Forum also held in the Romanian capital city, the energy ministry and the Japanese company Itochu Corporation signed a Memorandum of Understanding on a hydropower plant project in Cluj county (northwest Romania).

     

    VISIT The European Commissioner for Agriculture, Janusz Wojciechowski, is on an official visit to Bucharest, where he takes part today in the national conference of the Romanian Farmers’ Club. According to a press release issued by the European Commission, the commissioner is a special guest in the interactive EU-Romania Dialogue on the Future of Agriculture, where he talks about the prospects of European farming in the context of the current environmental and geo-political challenges and of the EU enlargement. At the same time, the European official is to address a plenary session on “Vision and action for the sustainable transformation of agriculture”. Among other things, Janusz Wojciechowski will thank Romanian farmers for their vital contribution to food security, in Europe and beyond.

     

    FLOODS Another person on the list of Romanian nationals missing following the recent floods in Spain has been found dead. The Romanian foreign ministry announced that, according to the information sent by the Spanish authorities, up to this moment 2 Romanian citizens are dead and 7 are still missing. The Romanian embassy in Madrid and the consular office in Castellón de la Plana are checking public information regarding the death of some Romanian citizens, but no official confirmations have been received so far. Meanwhile, the Spanish government has declared a state of natural disaster in the affected areas and has pledged to cover 100% of the urgent expenses of the affected municipalities. A first emergency plan worth over EUR 10 billion was adopted. (AMP)

  • Net investments on the rise in Romania

    Net investments on the rise in Romania

    The net investments made in the Romanian economy increased significantly in the first nine months of last year, reaching 118 billion lei (the equivalent of about 23.6 billion euros). It’s 14% more compared to the period January-September 2022 – reveals the data provided, in the first days of this year, by the National Institute of Statistics. Most of the investments belong to the majority private sector, almost 98 billion lei.



    According to the NIS, the money invested in new construction works and the purchase of machinery, including means of transport, totalled over 74 billion lei, representing 62% of all investments in the national economy. In the first nine months of last year, the number of building permits decreased, however, by approximately 8,000, to 26,000, mostly issued for rural areas, and the number of completed household units decreased to approximately 50,000, which was 3,000 less compared to the period January-September 2022.



    Romania, a construction site, headlines, however, the economic press in Bucharest, which takes a look at the large energy infrastructure or transport works financed by the state, as well as those launched by county councils or local administrations. Regarding the road network, for example, this year, for the first time, there will be three motorways fully under construction, at the same time: Moldova motorway (east), with 13 lots, Bucharest Highway (in fact, a bypass of the Capital), with four lots, and the Bucharest-Nădlac Motorway (west), with three lots, Transport Ministry officials have announced. In addition, works will begin on Unirea Motorway (center) and the first express road built in Romania, Craiova-Pitesti (south), which totals 120 kilometers, will be rendered operational.



    The cited sources also state that, currently, execution contracts are concluded for 760 kilometers of high-speed roads, tenders are in progress for another 120 kilometers, and the launch of tenders for more than 750 more is planned. The year 2024 must continue in the same direction, says Prime Minister Marcel Ciolacu. The Social Democratic head of the PSD-PNL Government promises that his executive team will continue to meet the milestones of the National Recovery and Resilience Plan, which will allow Romania to achieve an economic growth of 3.4%, the second highest in the European Union.



    This year will be the year of investments, says the prime minister, recalling that a record amount of 120 billion lei was allocated to this sector in the state budget, i.e. more than 7 percent of the Gross Domestic Product. The parliamentary opposition, on the other hand, believes that the government is overly optimistic about the Treasury’s ability to collect money for the budget, which will inevitably affect the investment sector as well. (MI)

  • Romania and nuclear energy

    Romania and nuclear energy

    The Romanian Chamber of Deputies adopted, as a decision-making body, the draft law on the approval of the signing of the Support Agreement between the Romanian state and the Nuclearelectrica National Company for the project of Units 3 and 4 at the Cernavodă Nuclear Power Plant (southeast). Nuclearelectrica has a major role at the national level, contributing over 18% to the total energy production and 33% to the total CO2-free energy production in Romania. It uses the Canadian CANDU 6 technology, based on natural uranium as a fuel and heavy water with a moderator and cooling role. The purpose of the agreement adopted by the Romanian deputies is to establish the effective methods of cooperation between the parties, by establishing commitments and obligations of the Romanian state regarding the provision of the necessary measures to finance the project, the implementation and adoption of support measures, including legislative measures.



    According to the data published on the Nuclearelectrica website, the project of the CANDU Units 3 and 4 CNE Cernavodă is included in the Energy Strategy Project of Romania 2019-2030 to be accomplished by 2050. It is also mentioned in the National Integrated Plan in the field of Energy and Climate Change, as a pillar of Romanias energy independence and of the fulfillment of the CO2 reduction targets assumed by Romania as a member state of the European Union. The adoption of this law was hailed by the energy minister Virgil Popescu. He emphasized that Unit 3 will come into operation at the end of 2030, and Unit 4 in 2031. Through the implementation of this law, Romanias energy independence and security will be ensured, Virgil Popescu pointed out. Through the implementation of the project, the contribution of nuclear energy to the total energy production, at the national level, will be 36%, and the contribution of nuclear energy to the total CO2-free energy production will be 66%. Consequently, the internal supply chain and other collateral industries will develop.



    “Nuclear energy, which is efficient, safe and clean, will make Romania an example at the regional and global levels, through various support partnerships associated with major investment projects”, the general director of Nuclearelectrica, Cosmin Ghiță highlighted. The intention of the Romanian state and of the Nuclearelectrica National Company, in accordance with the new strategy, is to implement this project within a Euro-Atlantic consortium based on the Agreement between the Government of Romania and that of the United States regarding cooperation in relation to the nuclear-power projects from Cernavodă and in the civil nuclear power sector in Romania, initialed in October 2020 in Washington DC. It’s worth mentioning that the US is interested in financing the Romanian energy projects, including nuclear power projects with 7 billion dollars. (LS)

  • December 26, 2021 UPDATE

    December 26, 2021 UPDATE

    CHRISTMAS New Style Orthodox Christians, and Greek and Roman Catholic Christians
    around the world Sunday celebrated the second day of Christmas. In Eastern
    Christianity, this day is devoted to Mary, mother of God. In his Nativity
    service on the 25th December, Daniel, Patriarch of Romania spoke about the
    meaning of the gifts presented by the 3 kings to the new-born Jesus.At the Vatican, Pope Francis warned that the world is growing so insensitive
    to crises and suffering that these now go unnoticed. Old Style Orthodox believers in Russia, Ukraine,
    Serbia, and Georgia celebrate Christmas on 7th January.


    COVID-19 As many as 349 new SARS-CoV-2 infection cases have been reported
    for the past 24 hours, along with 15 related fatalities, the Strategic
    Communication Group announced on Sunday. Some 450 patients are in intensive
    care, over 90% of them being unvaccinated. One year since the start of the Covid vaccine roll-out in Romania,
    nearly 7.8 million Romanians are fully vaccinated, and around 2 million also
    have the booster dose. This indicates that interest in vaccination has not been
    high, except for a few brief periods of enthusiasm or fear triggered by the
    pandemic’s successive waves.


    EXPENSES The president of Romania Klaus Iohannis travelled abroad 16
    times this year, with expenses totalling over 1.5 million euros, according to
    the Presidency’s response to a question sent by AGERPRES news agency. The
    President’s office also announced that by 14 December, 971 decorations were
    awarded by the President, and 2 of them were returned by their recipients.


    STRATEGY The EU has a new
    strategy in place to compete with China – Global Getaway is a response to China’s
    2013 New Silk Roads, under which investments of 140 billion euros have been
    made so far. With the new instrument, the EU seeks to consolidate the digital
    sector, transports and the healthcare, education and research systems around the
    world. The investments planned until 2027 amount to 300 billion euro. The EU is also
    considering the option of introducing a European export credit mechanism to
    help ensure fairer competition conditions for EU
    companies in 3rd markets.


    UKRAINE Germany and Russia have agreed on a
    meeting in early January, between the German Chancellor Olaf Scholz’s foreign
    and security policy adviser Jens Ploetner, and Kremlin’s negotiator for Ukraine,
    Dmitry Kozak, as part of the efforts to settle the Russian-Western crisis over
    the Ukrainian border, AFP reports. For over a month now, Western countries have
    been accusing Russia of deploying more than 100,000 troops on the Ukrainian
    border for a possible military intervention, and have repeatedly warned Kremlin
    on this topic. Russia claims its military is not a threat to anybody and
    demands security guarantees from the West, especially with respect to NATO’s
    eastwards enlargement.



    SPORTS Romania’s men’s handball
    team is taking part as of Monday in a new edition of the traditional Carpați
    Trophy, hosted by the city of Cluj-Napoca (north-west). In the opening match,
    Romania plays against Turkey. On Tuesday Turkey take on Iran, and on Wednesday
    Iran plays against Romania. Originally chosen as the 4th participant,
    Switzerland eventually declined the invitation over several COVID-19 cases
    found amid its players. After this training tournament, Romanian handballers
    are playing in Cluj on 7-9 January in the World Championship qualifiers,
    against the national teams of Israel, Cyprus and
    the Republic of Moldova. (tr. A.M. Popescu)

  • June 26, 2021

    June 26, 2021

    Covid-19. 62 new Covid cases
    from over 27,000 tests were reported in Romania on Saturday, as well as 6 new
    related deaths recorded in the previous 24 hours. 532 Covid patients are
    receiving hospital treatment, including 97 in intensive care. More than 4.7
    million Romanians have received at least one dose of the Covid vaccine, which
    accounts for 25% of the country’s eligible population. A further easing of
    coronavirus restrictions will come into effect from 1st July.






    Flag Day. On
    National Flag Day on Saturday, president Klaus Iohannis issued a statement
    saying the Romanian flag witnessed the most important events in modern Romanian
    history and symbolises the link between the country’s past, present and future.
    Together with the coat of arms and the anthem, the flag, the president also
    said, forms part of the national identity and represents the unity of the
    Romanian nation, the independence, sovereignty and indivisible nature of the
    state. The speaker of the Chamber of Deputies Ludovic Orban, who attended events in Iaşi to
    celebrate National Flag Day, spoke about the importance of the flag in the
    development of the Romanian state and the challenges faced by Romanians
    throughout history. Various military and cultural events were held to mark
    National Flag Day. In June 1848, the revolutionary government in Bucharest
    established, in its first decree, blue, yellow and red as the colours of the
    Romanian flag.


    Diplomatic tour. Romanian foreign
    minister Bogdan Aurescu and his Austrian and Lithuanian counterparts are in Georgia’s
    capital Tbilisi today, on the last leg of a tour of South Caucasus aimed at
    consolidating the European Union’s geopolitical profile in its own
    neighbourhood and boost its involvement and role in solving the region’s
    protracted conflicts. On Friday in Yerevan and Baku, the three ministers had
    talks with high officials from Armenia and Azerbaijan, respectively. The
    Romanian minister emphasised during talks that the trip to South Caucasus by
    three EU foreign ministers reiterates the priority given by both the European
    Union and member states to the stability and security of the states in this
    region, including through enhanced involvement to find sustainable solutions to
    protracted conflicts.




    Investment. Prime
    minister Florin Cîţu conveyed
    to German investors that he would like to see stronger economic ties between
    Romania and Germany. In a Facebook post, he said his government would carry out
    reforms and that its strategy is to gradually increase the budgets for
    development and investments on the international market leading to accumulation
    of technology and know-how. He emphasised that his government will keep its
    promise not to introduce new taxes and will focus on the efficient spending of
    the funds in the National Recovery and Resilience Plan. Cîţu attended on Friday
    an economic conference held in Bucharest by the Romanian-German Chamber of
    Industry and Commerce.




    Government. The government is today
    discussing the framework agreement for the conditions for providing medical
    care in Romania. The bill aims to increase the share of primary and outpatient
    care and reduce unjustified hospitalisation. The bill also introduces further specialist
    services provided through primary and outpatient care, such as remote
    consultations for chronic patients, psychiatric therapy and medical-related
    services provided by psychologists and speech therapists.

    Tennis. Romania’s
    Monica Niculescu reached the Wimbledon main draw after defeating the American
    player Kristie Ahn in straight sets on Friday in the last qualifying round.
    Romania has six players on the women’s singles main draw at Wimbledon, which gets
    under way on Monday: Sorana Cîrstea, Patricia Ţig, Irina Begu, Ana Bogdan,
    Mihaela Buzărnescu and Monica Niculescu. World no. 3 Simona Halep and the
    winner in London two years ago, on Friday pulled out of the tournament with
    calf injury.




    Weather. 50 localities in 22 counties were affected
    by the bad weather seen in the last 24 hours, with many households and
    basements being flooded. Road travel was disrupted on 35 county roads. The wind
    tore down the roofs of several buildings, felled over 200 trees and damaged electric
    power poles. The electricity supply was disrupted in 162 localities in seven
    counties. (CM)

  • June 12, 2021

    June 12, 2021

    G7
    Leaders of the world’s seven most developed countries are expected to endorse a
    proposal by US president Joe Biden for a global minimum corporate tax of at
    least 15%, the White House has announced. The Global Minimum Tax plan, also
    known as GMT, would effectively put an end to the practice of global
    corporations seeking out low-tax jurisdiction to move their headquarters to,
    even though their customers, operations and executives are located elsewhere. A
    decision on the GMT is going to be officially made during the G 7 summit, which
    kicked off in Cornwall, the UK, on Friday. The summit of G7 countries whose
    economies account for 40% of the global economy has an ambitious agenda.
    Leaders from the United States, France, the UK, Germany, Canada, Japan and
    Italy plus the EU leaders are trying to find solutions to global issues, such
    as vaccine supplies for the entire planet, solutions to the present economic
    crisis as well as ways to fight the global warming. Britain announced a
    donation of over 100 million vaccine doses to the poor countries while the USA
    is going to donate 500 million doses to 100 developing countries.








    COVID-19 The number of Covid-19 infections in Romania is still low with 127
    new cases reported on Saturday. 5 new Covid-related fatalities have been
    reported in the past 24 hours and 236 patients are in intensive care. The
    vaccine rollout continues at a lower pace though with only 41 thousand doses
    administered in the past 24 hours. Since the vaccine rollout kicked off in
    Romania in late December, over 4 million people have been fully vaccinated.








    RELAXATION New relaxation measures were imposed in Romania on Friday night
    when the state of alert across the country had been extended for another month.
    So, indoor private events can be attended by 200 people in regions with an
    infection rate below 3 per thousand only if the participants are all
    vaccinated, tested negative for the virus or already had the disease. Outdoor
    events may have an attendance up to the maximum capacity of the facility
    hosting the event. In Bucharest mask mandates are still in place around schools
    as well as indoor or crowded outdoor facilities.








    PNRR The European Commission has started assessing the recovery plans
    it has received from the member countries willing to access funds from the
    European recovery plan. The Commission has made a series of observations and
    called for additional information after it received the recovery and resilience
    plan made by Romania. The European Commission has two months to assess the
    national recovery plans, one of the main conditions being that the applicants earmark
    at least 37% to ecological transition and 20 % to the digital sector.
    Education, healthcare, transport and infrastructure as well as digitization and
    public administration reforms are the main domains the National Plan of
    Recovery and Resilience (PNRR) focuses on and where Romania pledges to invest
    all the roughly 30 million Euros it is going to attract. All investment must be completed by 2026.










    WEATHER Romanian meteorologists have issued a
    yellow alert for unsettled weather all over the country. Rain showers,
    thunderstorms and hail are expected in almost all regions. Temperatures are
    ranging between 20 and 29 degrees Celsius with a noon reading in Bucharest of
    24 degrees. Flood alerts have been issued for 15 counties until Monday at noon.






    (bill)





  • The European Investment Bank to triple support for Romanian economy

    The European Investment Bank to triple support for Romanian economy

    The European Investment Bank Group
    is tripling its support for Romanian companies from 500 million euros to 1.38
    billion euros. The bank’s vice-president Andrew McDowell said on Thursday that
    5,000 Romanian SMEs (small and medium sized enterprises) would benefit as a
    result. The Group has been working in Romania for 25 years, and during this
    time it has provided funding of around 15 billion euros for 300 different
    projects, McDowell also said. He explained that in the last five years, the
    bank’s investments in Romania had gone up to reach an average funding level of
    1 billion euros a year, with a third of this amount being for SMEs, while this
    year the amount of funding is likely to exceed 1 billion euros.

    The Initiative for
    SMEs combines structural funds with other resources of the European Union and
    the European Investment Bank to provide loans for 5,000 SMEs and thus
    contribute to the creation of jobs that are much needed in the private sector.
    The bank’s vice-president also emphasised that the European Investment Bank
    Group provides not only funding but also consultancy for the preparation and
    implementation of complex projects. He recalled the support given in the
    healthcare sector, where the European Investment Bank has provided the
    feasibility studies for regional hospital projects in Iasi (in the north-east),
    Craiova (in the south) and Cluj (in the north-west), and is now supporting the
    preparation of the application for structural funds.

    The vice-president of the European
    Investment Bank Andrew McDowell also participated in the signing of new
    contracts with financial intermediaries, namely banks from Romania, aimed at
    increasing the amount of funding. These new contracts will contribute,
    alongside the existing ones, to supporting SMEs and start-ups that need financing.
    According to the European Investment Bank, the agreements with these financial
    institutions aim to facilitate Romanian companies’ access to funding through
    60% guarantees for each loan and by decreasing the interest rates charged by
    banks. Following the successful implementation of the Initiative for SMEs in
    Romania, the Romanian authorities have allocated an additional 150 million
    euros from the Regional Operational Programme to reach an available budget of 250
    million euros.

    The Romanian finance minister Eugen Teodorovici said more than
    2,000 Romanian SMEs have benefited from this Initiative, with 500 million euros
    having already been allocated. The ambition of the Bucharest authorities is for
    SMEs to become the backbone of the economy. He also said he wished Romania
    followed Germany’s example, where SMEs make up 68% of the country’s exports.

  • May 22, 2019 UPDATE

    May 22, 2019 UPDATE

    EP ELECTIONS – In Romania, the campaign for the European elections due on May 26 continues. As many as 13 political parties are part of it. The candidates running in the elections are former ministers or experienced MEPs, former prime ministers or mayors, popular journalists and even an ex-president. The Romanians living abroad can cast their votes at 114 polling stations, most of them in Italy, Spain and the Republic of Moldova. A referendum on justice called by President Klaus Iohannis takes place at the same time with the European elections. The head of state pointed out on Wednesday that Romanians must not be afraid to vote for their European Parliament representatives and in the referendum, and once again urged them to come to polling stations on May 26.




    BLACK SEA Funds and financing systems for the “blue economy, investments in ecoports and smart connectivity for transport systems were among the topics approached on the first day of the Black Sea Investment Forum, hosted on May 22 and 23 by the Black Sea coast city of Constanta and organized by the Romanian Transport Ministry and the European Commission. Over 200 participants are looking at the future of regional transport businesses. The event is designed to support and encourage investments and the improvement of the EU business environment by removing barriers to investment and promoting sustainable funding. The Forum aims at facilitating connections between entrepreneurs and top-level authorities in the region, as well as between institutions or companies from EU member states and European and international financial institutions.




    OECD 42 members and partners of the Organisation for Economic Co-operation and Development (OECD) adopted in Paris on May 22 the Principles on Artificial Intelligence. The 36 OECD members and 6 partner countries, including Romania and 5 south-American countries, committed to comply with international standards promoting artificial intelligence (AI) that is innovative and trustworthy and that respects human rights and democratic values. The topic of the OECD Council Meeting held this week in Paris is “The digital revolution in service of sustainable development: opportunities and challenges. Taking part are the foreign, finance and economy ministers of the 36 member countries. Romania, which is not a member, takes part as a guest country and is represented by the Communications Minister Alexandru Petrescu. He said in Paris that Romania is currently drawing up its first national AI strategy, which will be posted for public debate by the end of the year.




    POPE – Online applications for attendance at the religious services held by Pope Francis in Romania will continue until May 31. Hundreds of thousands of people have already registered. Besides Romanians, Christians from neighboring countries such as Hungary, Serbia and Ukraine, but also from far away countries like Pakistan, Rwanda, South Africa, Australia and Israel, will come to Romania for the Popes visit. Pope Francis makes a three-day apostolic visit to Romania from the 31st of May to the 2nd of June following an invitation from President Klaus Iohannis and the Catholic Church in Romania. The motto of the visit is “Lets walk together. The Pontiff will travel to the capital Bucharest, Iasi, the biggest city in the east of the country and home to a sizeable Roman-Catholic community, Blaj, in the centre, the spiritual capital of the Romanian Greek-Catholics and the Marian shrine in Sumuleu Ciuc, in the centre, in an area with a majority ethnic Hungarian population.




    CULTURE The Romanian Culture Minister, Valer-Daniel Breaz, will chair on Thursday in Brussels the Culture and Audio-Visual section of the Education, Youth, Culture and Sport Council, which is scheduled to adopt 2 sets of political guidelines on supporting youth creativity and European co-productions. The Council will also discuss new prospective measures to fight disinformation and to regain the confidence of European citizens in the mass media. On Wednesday night, the Romanian official and the European Commissioner Tibor Navracsics announced the winners of the EU Prize for Literature.




    BREXIT – The British government approved PM Theresa Mays plan on Brexit, including the compromise measures that are to be included in the law that is to be voted on early next month. The draft law includes the idea of a temporary customs union until future general elections are held as well as measures to guarantee EU workers rights and to protect the environment. The passing of the Brexit law by the House of Commons is an almost impossible mission for the government, even though the measures proposed might persuade some of the Labour MPs to vote for it, newspapers write.


    (translated by: Ana-Maria Popescu)

  • November 27, 2018

    November 27, 2018

    ROMANIA-FRANCE CULTURAL SEASON — President Klaus Iohannis, on an official visit to Paris, is today launching at the Georges Pompidou Centre, alongside his French counterpart, Emmanuel Macron, the Romania-France Cultural Season. The two officials visit the Brancusi Workshop, the exhibition devoted to the famous Romanian blouse, called “ie” featured by works of the French and Romanian painters Henri Matisse and Theodor Pallady, respectively, as well as exhibitions of contemporary artists Ciprian Mureşan, Şerban Savu and Adrian Ghenie. Presidents Iohannis and Macron have had official talks aimed, among others, to confirm the special character of the bilateral relation, deepen the strategic partnership, boost economic cooperation and enhance the role played by the Romanian community in France. Yesterday, at the Romanian Embassy in France, president Klaus Iohannis attended a meeting with representatives of the Romanian diaspora in France. Over 400 events will be organized both in France and Romania during the Romania-France Cultural Season, which runs until July 14, 2019. The Cultural Season offers to the public events from various domains: culture, education, innovation, entrepreneurship, cuisine, tourism, sports and cooperation between local communities.



    UKRAINE VESSELS — Russian president, Vladimir Putin, has expressed deep concern about Kiev’s decision to put its armed forces on the alert and to instate the martial law, a communiqué issued by the Russian Presidency writes. Ukraine’s Supreme Rada approved on Wednesday, the instatement of the martial law in 10 regions, most of them alongside the border with Russia, as well as in two regions in the south-west of the country- Odessa and Vinitsa, neighboring the Transdniester region of the Republic of Moldova. In order not to impact the organization of presidential elections due on March 2019, the measure will be applied for 30 days and not for 60, Ukraine’s Security and Defense Council had earlier demanded. The martial law provides for limiting civil rights and imposing a curfew. Public assemblies are banned, radio and TV transmissions are censored. The decree signed by president Petro Poroshenko was issued following Sunday’s seizure by Russian coast guard of three ships of the Ukrainian naval vessels in the Black Sea, near the Kerch Strait. Kiev sources say the incident has left 6 Ukrainians injured, 2 of which severely.



    REACTION — Romania is ready for any scenario and any measure in the Russian-Ukrainian conflict, says president Klaus Iohannis, who pleaded however for the two sides involved to approach the situation with calm. Representatives of the Romanian Foreign Ministry on Monday expressed deep concern about the recent Russian-Ukrainian maritime conflict. The Foreign Ministry also says Romania expresses full support for Ukraine’s sovereignty and territorial integrity and its right to use international waters. The seizure by Russia of three Ukrainian naval vessels and the injuring of their crews is a dangerous escalation and an infringement of the international legislation, the US Secretary of State Mike Pompeo, also says, adding that the US condemns Russia’s aggressive action. NATO Secretary General Jens Stoltenberg has called on Russia to release the Ukrainian naval vessels and marines, adding that there is no explanation for Moscow’s actions. The President of the European Council, Donald Tusk, considers that Russia should return the seized vessels and marines back to Ukraine and called on Moscow to abstain from any other provocation.



    INVESTMENT— Romania competes with Bulgaria and Hungary for a new Skoda car factory. The over 1 billion Euro investment might generate at least 4,000 — 5,000 jobs, the Automotive News Europe publication writes. The president of the managing board of Volkswagen Group, Herbert Diess, said on November 18 that the group is looking for a new location in Eastern Europe for a Skoda factory, to start production post 2022. The need has emerged after VW’s decision to convert the factory in Emden, Germany, to the production of e-cars and to relocate the production of the Passat model in the current Skoda factory in Kvasiny (the Czech Republic), which is now producing Skoda Superb. The future factory, whose location should still be identified, will produce the Skoda Karoq and Seat Ateca SUVs, which are currently assembled in Kvasiny.



    VISIT — The Chairman of the Parliament of the Republic of Moldova, a former Soviet country with a predominantly Romanian speaking population, Andrian Candu, is today paying a working visit to Bucharest. He is due to meet the Speaker of the Chamber of Deputies, Liviu Dragnea, and is to be received by the Custodian of the Romanian Crown, Margareta. On this occasion, Her Majesty will receive, during a ceremony, the Medal for Democracy of the Parliament of the Republic of Moldova. The Custodian of the Crown is hosting the ceremony of signing “The Centenary Book”, an anniversary anthology of signatures devoted to the celebration of 100 years since the creation of the Romanian unitary state, on December 1.



    TENNIS – Australian Darren Cahill, who has trained the Romanian woman tennis player, Simona Halep, no 1. WTA, over the past few years, has been nominated by WTA for the title of best coach of the year 2018 in women’s tennis. This year, Cahill has helped Halep win her first Grand Slam title, at Rolland Garros. Halep has also won the finals in Shenzhen and Montreal and reached the finals at the Australian Open, in Rome and Cincinnati. Darren Cahill announced on November 9 that he will stop working with Simiona Halep in 2019, for family reasons. The winner of the WTA poll will be announced on December 4.

  • September 30, 2018

    September 30, 2018

    INDONESIA – The provisional death toll of the earthquake and ensuing tsunami which rocked the Indonesian island of Sulawesi on Friday stands at over 830 dead, the National Disaster Management Agency has today announced. Many people are caught in the rubble, after several buildings collapsed following Fridays earthquake which measured 7.5 degrees and caused tsunami waves of up to 6m in height. Rescue teams in the town of Palu, on the western coast of Sulawesi, are making huge efforts to take people out from under the rubble. Most victims have been identified in Palu. The Romanian Foreign Ministry has sent messages of condolence to the victims families. The ministry expresses compassion and solidarity with the Indonesian people and authorities and expresses deep regret over the high number of victims, as well as for the high volume of material damage caused by that natural disaster, the Romanian Foreign Ministry writes in a communiqué.



    SOVEREIGN FUND – The Romanian Finance Ministry has launched a public debate on the setting up of the Sovereign Development and Investment Fund. The document establishes the legal form, the registered capital, the strategy and management of this fund which, in the governments opinion, is needed to mobilise the available financial resources and channel them towards profitable projects. According to the relevant ministry, this Sovereign Fund is also aimed at developing and financing profitable and sustainable investment projects, from own funds and from attracted funds. The fund will include 33 state owned companies and the registered capital will stand at some 2 billion Euros.



    GUAM – The former Soviet states which are making up the GUAM group, namely Georgia, Ukraine, Azerbaijan and the Republic of Moldova, will join efforts and will better coordinate their positions to defend their territorial integrity, representatives of the GUAM member states have announced in Chisinau, during a session of the GUAM Parliamentary Assembly. The delegates have also criticised Russias involvement in fuelling territorial conflicts in the region. GUAM was set up in 2006, with the declared aim of developing cooperation between the member states, by boosting stability and common security in the European space. The Republic of Moldova, a country with a predominantly Romanian speaking population, is currently holding the presidency of this organisation.



    TRANSPORTS – Road passenger traffic in Romania increased by some 14% in the first half of the year, as against the similar period of 2017, and air traffic by 7.5%, data released by the National Statistics Institute show. The n umber of passengers who travelled by plane in the first six months of the year stood at some 10 million, 86.6% of whom were registered on international flights. In exchange, railway passenger traffic decreased by 2.7% in terms of the number of passengers. A 23.4% drop was also reported on Romanias internal waterways. No passenger sea traffic was reported in the aforementioned time span.



    TENNIS– Romanian tennis player Simona Halep, no.1 WTA, exits the Beijing tennis tournament in the first round, with back pain. She abandoned the match she played against Ons Jabeur, no.113 WTA, after the Tunisian player won the first set 6-1. Another Romanian, Sorana Cirstea no.57 WTA, is facing Dutch Kiki Bertens no.11 WTA, whom she has defeated in all matches they have played so far. Although she was defeated by Slovenian Polona Hercog, Cîrstea made it to the main tables, after Australian Ashleigh Barty withdrew from the competition, after Fridays defeat. In the doubles, Romanian women players Mihaela Buzărnescu and Monica Niculescu have qualified for the second round, after defeating the pair Hao-Ching Chan (Taiwan)/Zhaoxuan Yang (China). Buzărnescu and Niculescu will face in the eighth finals the pair made up of Abigail Spears (the US)/Alicja Rosolska (Poland).



    WORLD RECORD – Thousands of people-4807- particularly pupils and high-school students from all across Romania on Saturday set a new world record in the central Romanian town of Alba Iulia, by creating the largest human image of a country. Inside the map, they highlighted the number 100, by wearing white cloaks, as a way to celebrate 100 years since the setting up of the Romanian national unitary state. The old record belonged to Myanmar, where 3,466 people gathered in February 2018 to recreate the map of their country.

  • Disquieting Budget Figures

    Disquieting Budget Figures

    Romanias consolidated budget deficit stood at roughly 3.2 billion Euros in the first half of the year, accounting for 1.61% of the GDP. The deficit is twice as big as in the first six months of 2017, but remains below the level forecast by the government of 2.21% of the GDP. The figures have been made public by the Finance Ministry, which explained that in the first half of the year budget revenues were 13% higher, but expenditure grew significantly, at a 19% higher rate than in the same period of 2017.



    The data published by the Finance Ministry shows that revenues from social security contributions grew by 37%. The Ministry has also noted that the month of June saw an improved VAT collection rate, which also rose by over 15% as compared to the same month last year, but that on the other hand revenues from income and salary taxes went down by almost 22% against a reduced tax rate, from 16% to 10%. According to the same data, payroll expenditures saw the highest increase, by over 24% as compared to the first half of 2017, a situation caused by the pay rises granted to public employees. Expenses incurred for the procurement of products and services also went up by 10%, and the social assistance costs have also been significantly higher.



    Investment expenditure, which includes capital investments as well as expenses for development programmes funded from domestic and foreign sources, stood at 9.1 billion lei, 1.5 higher than the same period last year. A month ago, Ionut Dumitru, chair of the Fiscal Council, cautioned that the budget deficit in the first five months of the year is very big, being, first and foremost, the outcome of higher expenses. According to him, unless measures are taken the deficit could reach 3.5 – 3.6% of the GDP at the end of the year. According to the economic forecasts made public by the European Commission in mid-July, the budget deficit could reach 3.4% of the GDP in 2018 and make it to 3.8% in 2019.



    In another development, deputy Prime Minister Viorel Stefan has recently said that the budget deficit for 2018 will certainly be under the 3% ceiling specified in the EU treaties, and that the adjustment of the structural deficit with a view to meeting the mid-term objective is planned to begin in 2019.


    (translated by: Daniel Bilt)

  • July 16, 2018 UPDATE

    July 16, 2018 UPDATE

    JUSTICE – Justice Minister Tudorel Toader announced on Monday that Romania would provide the Venice Commission with its official position before the latter issued its final report on justice legislation. The commission is a consultative body for the Council of Europe, and last week it issued a preliminary opinion, recommending to the authorities in Bucharest, among other things, to reconsider the decision to amend the laws governing the justice system, especially regarding the appointment and dismissal of head prosecutors.



    SUMMIT – US President Donald Trump and his Russian counterpart, Vladimir Putin, met on Monday in Helsinki on the occasion of a bilateral summit. In a news conference after the meeting, Donald Trump said that the tense relations between the two countries were about to change. Trump also said that a number of highly important topics were approached, such as the war in Syria, global terrorism and Russia’s alleged meddling in the 2016 US election. In his turn, President Putin said the meeting was a good one.



    CRASH – A military plane crashed on Monday in Bacau, in eastern Romania, during a training flight, the Romanian Defense Ministry announced. The two pilots managed to eject. This is the second plane crash in Romania in the past 10 days. On July 7, a MiG 21 Lancer crashed at a military unit in Fetesti, southern Romania, during an air show.



    TRANSPLANT — Romanian Health Minister Sorina Pintea announced on Monday that in two months at the most she would come up with a new law on transplant. She also said that in the upcoming period she would sign an order for the setting up of a team of experts to work on law. The new law is aimed at increasing the number of donors, given that only 30 have been registered in Romania this year.




    INVESTMENT — Direct foreign investment in Romania went up 17.6% in the first five months of this year, as compared with the same period last year, reaching 1.7 billion Euro, according to the National Bank. The number of foreign capital companies set up in this period went down by 1.8%, according to the Trade Registry. On May 31, 2018, Romania had over 218,000 foreign capital companies registered.




    BREXIT — A new round of negotiations on Brexit started on Monday in Brussels. British Prime Minister Theresa Mays government issued recently a new series of proposals, while the head of the EU delegation, Michel Barnier, said he would study them closely. The proposals are in relation to harmonizing trade in order to avoid checks at the Irish-British border, as well as harmonizing British legal decisions with those of the European Court. The UK will impose tariffs, but favoring the EU. There will no longer be free circulation of persons, but an agreement will be signed easing access for workers, students, and tourists. Michel Barnier will present the stage of the negotiations to the General Affairs Council on Wednesday, when the negotiations end.




    TENNIS — Romanian tennis players Mihaela Buzarnescu and Raluca Olaru are the main favorites in the WTA BRD Bucharest Open, that kicked off on Monday, with prize money totaling over 226,000 dollars. The two players, who won a WTA world title as a pair this year in Strasbourg, will play their first game against Alena Fomina of Russia and Elena Rybakina of Kazakhstan. Raluca is current champion in Bucharest, after winning in the doubles with Irina Begu. Six Romanians are still in the top 100 of the WTA rankings. Simona Halep is still number one, while Buzarnescu is in 25th position, the best of her career. Irina Begu is 42nd seeded, Sorana Cirstea 57th, Monica Niculescu is 59th, while Ana Bogdan is 66th.