Radio România Internațional

Tag: policy

  • Eurobarometer on energy

    Eurobarometer on energy

     

     

    Russia’s military aggression against Ukraine forced the European Union as a whole and most of its member states to gradually give up Russian natural gas, so as not to fuel Moscow’s war machine. This, added to the goal of phasing out polluting fossil fuels in a reasonable timeframe, has pushed the energy issue quite high on the Union’s agenda.

     

    More than three-quarters of Europeans believe the EU should have a stronger coordination role on energy matters, and according to a Eurobarometer on this topic, made public on Tuesday, EU citizens support the Union’s energy policy.

     

    Eight in ten Europeans agree that implementing a climate neutrality target will spur new jobs and attract investments in the clean energy sectors, while three-quarters of them agree that climate neutrality will reduce dependence on energy imports.

     

    Europe, said most of the interviewees, should diversify its energy sources, including thought renewable energy investments, and over 50% of Europeans argue we should save energy whenever possible.

     

    40% of respondents answered that a European energy policy means ‘ensuring more affordable energy prices for consumers’, with another 33% saying the EU should invest in innovative energy technologies. Also, 30% said measures should focus on reducing energy consumption across Europe.

     

    More than three-quarters of Europeans say they have considerably changed their habits to consume less energy at home in the last five years. When asked to choose from a list of options to reach climate neutrality, a majority of the respondents said the EU should encourage member states to focus on measures to support households in energy poverty, reduce energy consumption and make it easier for citizens to produce and consume their energy from renewable sources.

     

    In a matter of a few years, the Union has redesigned almost every piece of its energy legislation, in line with the European Green Deal and in response to Russia’s illegal aggression against Ukraine and to Moscow’s weaponising its energy resources. Building revamping has been encouraged, and the operation of the electricity and natural gas markets has been reformed.

     

    Due to the new EU financing instruments, impressive progress has been made to support citizens and the economy in reaching the climate neutrality goal by 2050.

     

    In recent years, record-high energy bills for households and businesses, triggered by the rise in demand following the COVID-19 pandemic and by the war in Ukraine, have put pressure on national budgets and fuelled a rise in inflation, the Eurobarometer also reads. (AMP)

  • EU’s New Pact on Migration and Asylum

    EU’s New Pact on Migration and Asylum

    The European Union tightens its migration policy, one of the most toxic political topics facing the bloc over the past years, by restricting the number of those who seek to enter its territory and rejecting asylum applicants that do not meet the requirements. The EU Council and the European Parliament agreed on a new Pact on Migration and Asylum, which should take effect next year.



    The deal reached at the end of the negotiations concerns 5 aspects of migrant management, including the screening of migrants, asylum procedures and crises when migration increases.



    The screening regulations introduce uniform rules concerning the identification of non-EU nationals upon their arrival and a shared data base system. Combined, the two elements will increase security in the EU, because the system will identify the unauthorised people or travels across the Union.



    Asylum procedures are also changed, to the effect that the return of those who cannot be accepted in the EU may be quicker. The regulation also comprises a solidarity mechanism for member states, which is particularly helpful in crisis situations. When a particular Member State is under migration pressure, it may request other countries to help by taking over some of the applicants. Should that state refuse to assist, it will have to pay EUR 20,000 for each rejected migrant.



    Apart from the regulations endorsed in the final negotiation between the European Parliament and the Council, the Pact also includes instruments for reducing migration, in cooperation with the countries of origin, and the European Commission earmarked funding in this respect.



    The document was subject to heated debate and negotiation since September 2020. The next step now is the formal endorsement of the document, which will take effect after its publication in the Official Journal.



    Several countries, including those where large numbers of migrants come every year, such as Greece and Italy, praised the agreement, but also voiced doubts that the new system would be effective, given the opposition of some of the EU member countries to taking over migrants. Examples include Hungary and Slovakia, which announced they refused both the compulsory relocation quotas and the “fines” for failure to observe them.



    The new pact on migration was also criticised by the search and rescue NGOs, which warned that the number of victims would increase, and by Amnesty International, according to which with the new deal the European migration legislation has been set back decades.



    The number of migrants in the EU saw a peak in 2015, when one million people, most of them war refugees, entered the European territory. The number dropped below 300,000 in 2020, but since then it has risen steadily, particularly on the Mediterranean route towards Italy. (AMP)


  • December 20, 2023 UPDATE

    December 20, 2023 UPDATE

    BUDGET Romania’s Parliament Wednesday endorsed the 2024 state budget
    and social security budget bills, backed by the parliamentary majority made up
    of the Social Democratic Party and the National Liberal Party. Next year,
    Romania’s budget will focus on investments of roughly 7% of GDP and a 3.4%
    economic growth rate, while the estimated budget deficit is 5% of GDP. According
    to PM Marcel Ciolacu, the 2024 budget is aimed at development and equity, is based
    on investment and secures the required funding for the promised pension and
    salary increases. The opposition on the other hand argues that the budget is
    built on unrealistic estimates which will fail to ensure economic development.


    EVASION The Romanian Chamber of Deputies passed new measures to curb
    tax evasion. Failure to withhold taxes and charges, submitting accounting
    documents for fictitious expenses, keeping double accounting records or the use
    of cash registers that are not connected to the National Information Control
    System will be considered offences. Punishments, which range from one to ten
    years in prison, are harsher for repeat offenders.


    TIMIŞOARA The western Romanian city of Timişoara Wednesday marked 34
    years since it declared itself the first city free of communism in Romania. To
    celebrate the victory against communism, several events took place, including
    short film and documentary screenings, and a marathon tour at the Brâncuşi
    exhibition at the Art Museum. 34 years ago, after the repression of the
    uprising that started on December 17, big factory workers went on strike and
    gathered in the centre of the city. In front of the crowd, the army withdrew to
    the barracks, the people arrested were released and the Romanian Democratic
    Front was established. From Timisoara, the people’s uprising against the regime
    led by the dictator Nicolae Ceauşescu spread to several other cities in the
    country. Over 1,000 people lost their lives and around 3,000 were injured in
    the events.


    AWARD The president
    of the Republic of Moldova, Maia Sandu, was awarded on Wednesday the Timişoara
    for European values prize. The award and the EUR 30,000 prize will be handed
    to her on January 12-13. According to Timişoara’s Mayor Dominic Fritz, in
    selecting Maia Sandu as the recipient of this prize, the jury appreciated her
    clear stand on Moldova’s integrity, and her determination in pursuing the goal
    of Moldova’s European integration.


    MIGRATION MEPs and
    the representatives of EU member states have reached an agreement on a
    comprehensive approach to the Union’s migration and asylum policies, one of the
    most toxic political topics facing the bloc in recent years. The document is
    aimed at standardising and stepping up migrant verification procedures at the
    EU’s external borders, a solidarity mechanism and the repatriation of the
    migrants ineligible for the refugee status. (AMP)

  • December 29, 2022

    December 29, 2022

    ENERGY The government of Romania passed a bill lifting the
    obligation for owners of more than one house to submit sworn statements in
    order to benefit from energy price caps. On the other hand, the government also
    decided that the 10 Eurocent governmental discount on fuel prices will no
    longer be applied as of January 1, 2023. PM Nicolae Ciucă promised that the
    authorities are prepared to reintroduce this measure in the future, should
    prices go up beyond citizens’ spending power.


    FOREIGN POLICY In 2023, ‘Romania’s foreign ministry will continue to
    give special attention to Romania’s Schengen accession and to joining the
    Organisation for Cooperation and Economic Development (OCDE)’. The announcement
    was made by the foreign minister Bogdan Aurescu in a Report on Romania’s
    diplomatic activity released on Thursday. As far as 2022 is concerned, the
    Report says the year was marked at both a regional and a global level by the
    war of aggression launched by the Russian Federation against Ukraine. The
    report also covers the outcomes of the NATO Summit in Madrid in June 2022, and Bucharest’s
    successful hosting of the meeting of NATO foreign ministers and of the Munich
    Leaders Meeting in November 2022.


    COVID The
    European Commission organises today a meeting of healthcare officials to
    discuss a coordinated EU approach of the surge in Covid cases in China, AFP
    reports. After China loosened its strict zero-tolerance rules earlier this
    month, which triggered an explosion of cases in the country, states around the
    world are worried that new variants of the virus would spread from there. Italy
    has already on Wednesday introduced compulsory testing for incoming travellers
    from China, a measure also adopted by other countries, including the US and Japan.


    UKRAINE Ukraine suffered
    ‘massive’ attacks involving over 120 Russian missiles on Thursday morning in
    several cities including the capital Kyiv, the Ukrainian Army and Presidency announced.
    Air raid alerts sounded across the country. According to Ukraine’s head of
    intelligence services, the war is currently at a deadlock, as neither Ukraine
    nor Russia are able to make significant progress. In an interview to the BBC, Kyrylo
    Budanov said Russia was at a dead end, suffering significant losses, but he
    admitted that Ukraine lacks the resources to move forward. He added that Kyiv
    was waiting for more advanced weapons. Ever since October, Russia has been regularly
    hitting Ukraine’s energy and other critical infrastructure. Kremlin warned that
    there will be no New Year ceasefire in Ukraine.


    SOLIDARITY
    In the Republic of Moldova, neighbouring both Romania and Ukraine, lights will
    be turned off in the government’s and other public buildings, in solidarity
    with the millions of people in Ukraine left without electricity, water supply and
    heating. Last week, the Rome Colosseum, the Sydney Opera House, the European
    Parliament and the Wembley went dark in solidarity with Ukraine. In Bucharest, the
    City Hall discontinued holiday lighting for one hour during the winter solstice
    night.


    HANDBALL Romania’s
    men’s handball team takes on Algeria today in the 3rd place playoff
    of the Carpaţi Trophy, a competition
    traditionally hosted by Romania and taking place this year in Oradea. On Wednesday, Romania lost to Slovakia, 31-30, and
    Algeria was defeated by Egypt 38-27. The trophy
    final pits Egypt against Slovakia. (AMP)

  • August 6, 2022 UPDATE

    August 6, 2022 UPDATE

    INFLATION
    The National Bank of Romania Friday raised the monetary policy interest rate
    for the 6th time this year, in an effort to keep inflation in check.
    The key interest went up 0.75%, to 5,5% per year, and takes effect on Monday. The
    central bank also decided to raise the interest rates for loans and for
    deposits. Keeping a firm control on cash flows in the monetary market and
    maintaining the current levels of minimum compulsory reserves for banks’
    domestic and foreign currency liabilities are also decisions made on Friday by
    the National Bank. Experts expect a steady annual inflation rate in Q3 and a
    gradual decrease later on. In June the inflation rate reached 15.1%.


    DIASPORA
    The Romanians in the diaspora who plan to return and invest in a business that
    creates at least 2 new jobs may obtain funding of up to EUR 40,000 under the 3rd
    edition of the Start-Up Nation programme, the Romanian tourism ministry
    announced. Applicants whose start-ups create only one job may receive up to EUR
    20,000. To benefit from the EUR 4 million programme, applicants must submit
    proof of their residence abroad.


    BUDGET
    A state budget adjustment is scheduled for next week in Romania, according to
    PM Nicolae Ciucă. Among other things, expenses with supplies and services will
    be cut by 10% for each ministry. An analysis will also be conducted to ensure
    the coherence of the forthcoming budget adjustment and of the funding programmes
    for Romania.


    ECONOMY
    East-Europeans started to feel the effects of the war in Ukraine later than the
    major Western economies, due to 2-digit salary increases and generous
    subsidies. Now however, they have to reduce their expenses in order to make
    ends meet, reads a Reuters analysis, according to which the 2-digit inflation,
    the over 15% rise in foodstuff prices and the growing energy costs are affecting
    the spending power of people in Eastern Europe. In Poland, people are
    shortening their holidays, Czechs are saving by eating out less and looking for
    a second job, while in Hungary people are buying less food and a lot fewer
    durable goods. According to analysts, the risk of 2-digit inflation extending
    into 2023, as well as the new revised estimates regarding the Eurozone point to
    a risk of recession.


    NATURAL
    GAS An EU-wide 15% reduction of natural gas consumption will come into force
    early next week, the Czech presidency of the EU Council announced. The
    regulation was adopted officially, and the text will be published in the
    Official Journal on Monday and will take effect the next day. The president of
    the European Commission, Ursula von der Leyen, called on member states to
    prepare for the worst-case scenario of Russia suspending gas supplies. Member
    states must also secure 80% of their winter needs ahead of time.


    COVID-19 Over 6,400 new COVID-19 cases were confirmed on Saturday in
    Romania. More than 3,800 patients are hospitalised, nearly 260 of whom in ICUs,
    and 28 Covid-related deaths were reported.Since
    the start of the pandemic, nearly 66,200 people have died of COVID-19 in
    România.


    UNTOLD Cluj Napoca, north-western Romania, is hosting the most eagerly
    awaited music festival this summer, Untold. The event takes place on several
    stages, with over 200 Romanian and foreign artists, as well as the world’s best
    DJs, performing until Sunday night. This year’s theme of the festival is Temple
    of Luna, an artistic concept that highlights the mythological side of
    Transylvania, seen as a land of the night and magic. Scores of stands sell
    food, drinks, clothing and gadgets. The organisers expect over 400,000 people
    to attend this year’s edition.

  • January 12, 2022 UPDATE

    January 12, 2022 UPDATE

    COVID-19 Romania reported
    8,600 new Covid cases and 44 related deaths on Wednesday. The incidence rate is
    on the rise around the country, including the capital Bucharest, where it
    passed 3 cases per 1,000 inhabitants, the city now being in the red tier. This
    means that restaurants, cinemas, gyms and other venues can open at 30%
    capacity. Also, schools where the vaccine uptake among staff is under 60% will
    switch to online teaching. The National Public Health Institute confirmed the
    sustained community transmission of the Omicron variant, saying almost half of
    the cases did not have contact with someone infected. In the meantime,
    preparations are being made for opening outpatient Covid evaluation centres
    around the country.


    CORRUPTION The Interior Ministry’s Anti-Corruption Directorate
    Wednesday conducted 25 home searches in the counties of Neamţ and Iaşi (north-east),
    as part of investigations concerning forgery and fraud offences involved in the
    obtaining of COVID vaccination certificates. Physicians and nurses received
    bribes in exchange for fictitious vaccination certificates. Late last year the Anti-Corruption
    Directorate announced that since the start of the pandemic 168 criminal cases
    were initiated with respect to fictitious vaccination and other offences. According
    to the institution, Romania saw the largest-scale frauds in the EU in this
    respect, with over 3,000 fake COVID certificates issued at Petea border
    checkpoint. Some 1.8 million COVID-19 cases have been reported in Romania
    since the start of the pandemic, and around 60,000 COVID patients died. Amid
    anti-vaccine feelings fuelled by certain media outlets, politicians and opinion
    leaders, Romania has the second-lowest vaccination rate in the EU.


    EU FUNDING Over 1.9 billion euros will be transferred to Romanian
    government accounts on Thursday, as part of the loans given to Romania under
    the National Recovery and Resilience Plan, after the targets for Q4 2021 were
    reached, the Ministry for EU Projects and Investments announced. The funds will
    add to the 1.85 billion euros in grants paid by the European Commission on
    December 2, 2021. Bucharest is to receive over 29 billion euros under the
    National Recovery and Resilience Plan. The loans in the programme will be used
    for the funding of large-scale projects, including motorways, water supply and
    sewage networks, the digitisation of SMEs and reforestation, the Ministry
    explained.


    GROWTH The
    National Institute of Statistics confirmed its 0.4% estimate with regard to the
    growth of the Romanian economy in the third quarter of last year compared with
    the previous quarter, but changes were made to the share of investments and
    consumption in GDP growth. Also, in the third quarter, the net added value saw
    important changes in the sectors of information and communications,
    constructions, financial mediation and insurances and real estate transactions.


    ECONOMY The Romanian economy is expected to grow by 4.3% this year,
    as against a 4.5% growth rate forecast in June 2021, reads the World Bank’s report
    on Global Economic Prospects, released on Wednesday. For 2023, the World Bank
    forecasts a 3.8% GDP growth for Romania, while for last year the institution
    estimates the country’s economic growth rate stood at 6.3%. The institution
    expects the global economy to grow by 4.1% in 2022 and by 3.2% in 2023.


    FOREIGN POLICY
    Romania will continue to develop as an active, trusted, involved and
    respected member of the EU and NATO. Romania’s approach is focused on
    continuity, based on the three essential pillars of its foreign policy:
    consolidating the country’s role and influence in the EU and NATO and
    developing and deepening the strategic partnership with the US, said
    president Klaus Iohannis at his annual meeting with foreign diplomats in
    Bucharest. He also said strengthening the US military presence in Romania is a
    major goal. Given the recent security challenges, it is obvious that we need
    stronger action in terms of defence and deterrence, the Romanian president
    added. Iohannis also said Romania is worried about the security situation in
    Ukraine and its implications for Euro-Atlantic security and added that Romania
    will continue to support the efforts of the Republic of Moldova to join the
    European Union. (tr. A.M. Popescu)

  • Central Bank tries to keep inflation in check

    Central Bank tries to keep inflation in check

    The National Bank of Romania (BNR) has raised its benchmark interest rate to 2% per year from 1.75%, and decided to further retain firm control over money market liquidity. This is the third consecutive meeting of the Central Bank Board, which focused on raising the benchmark interest rate, in an attempt to keep inflation in check, which followed a higher-than-expected upward path. Experts have estimated that interest rates on bank loans for individuals and companies will go up, just like the interest rates on deposits, which are still at a very low level. BNR has also decided to maintain the present levels of the minimum reserves interest rates.



    Dan Suciu, the Central Bank s spokesman, said on Radio Romania: “Unfortunately, inflation is worrisome, because we have witnessed increases of this indicator lately. This is not an issue only in Romania, but all over the world, being triggered mostly by the energy prices. We have all seen how the price of power, natural gas and fuels went up. This has a huge impact on the inflation index and it generates increases in other price categories. This is what inflation is, a general rise in prices. Unfortunately, the energy price accounts for more than 70% of our inflation index. The monetary policy decisions, taken by the Central Bank, such as the interest rate increase, have little effect on energy prices. However, what we are trying to do, which will be more visible in the second half of the year, is to anchor inflationist expectations, to alleviate the increase in the prices of other components. “



    According to the BNR, the economic activity slowed down its growth considerably in the third quarter of 2021 to 0.4%, from 1.5% in the second quarter. At the same time, the GDP went down more than expected in the third quarter, but was still high due to private consumption and the unusual high stock fluctuation. Moreover, the inflation rate in September only partially corrected its strong increase in the previous two months, and was stabile in October, thus keeping its level above the pre-pandemic one. According to a Central Bank communiqué, the recent decisions are aimed at decreasing and keeping the annual inflation rate in line with the stationary target of 2.5% (+/- 1%), in a manner likely to contribute to sustainable economic growth. (EE)


  • January 10, 2021

    January 10, 2021


    COVID-19 Over 4,100 new COVID-19 cases and 16 related fatalities were reported on Monday out of around 30,700 tests. At least 400 patients are in intensive care. In 11 cities the COVID-19 infection rate is above 3 per thousand, with the capital city Bucharest and Ilfov County in the south now on the yellow list, alongside Cluj (north-west), with rates of over 2 per thousand. Meanwhile, the vaccination rate remains low. Only 2,700 people got the first dose in the last 24 hours, nearly 3 times below the average of the last few days. So far, approx. 42% of the population have received at least one vaccine dose. The spread of the Omicron variant triggered a number of protection measures. 160 outpatient evaluation centres will be operational as of this week, to reduce pressure on hospitals.



    INTEREST The Board of the National Bank of Romania may decide today to further raise the policy interest rate, currently standing at 1.75% per year. The increase is expected, given the rise of the inflation rate in Romania and abroad. The policy interest rate was last increased in November, but only by 0.25%, which is less than analysts had expected.



    DIPLOMACY Romanias foreign minister Bogdan Aurescu has talks today with his Pakistani counterpart Makhdoom Shah Mahmood Hussain Qureshi in Bucharest. The visit takes place in the context of recent positive developments in bilateral relations, including Islamabads support for the Romanian authorities efforts to evacuate Romanian and Allied citizens as well as 156 vulnerable Afghan nationals from Afghanistan in August and September 2021. The 2 officials are to discuss means to strengthen bilateral relations, to consolidate political dialogue and economic cooperation. A cooperation agreement between the Romanian Chamber of Commerce and Industry and the Association of Pakistani Chambers of Commerce and Industry, as well as a framework agreement on student exchanges between the Polytechnic University in Bucharest and the University of Islamabad are some of the documents signed during this visit.



    KAZAKHSTAN Monday is a day of national mourning for the victims of the recent violent protests in Kazakhstan, where the situation seems to have stabilised. However, president Kassym Tokayev carried on removing suspected opponents from the countrys security services, with 2 more top-level officials dismissed. They were the deputies of the former head of the National Security Committee, Karim Masimov, dismissed and arrested last week on charges of treason. Masimov was an ally of former president Nursultan Nazarbaev. The latter stepped down in 2019, but he preserved control on key posts until a few days ago. The crisis in Kazakhstan started early this month, after gas prices were raised. The originally peaceful protests quickly spiralled into violent clashes resulting in human casualties and many buildings damaged, especially in the countrys economic centre Almaty. Thousands were arrested. Tokaev requested and received the support of a military alliance headed by Russia, whose troops are currently protecting strategic sites in Kazakhstan.



    TALKS Talks are held in Geneva, Switzerland today by US and Russian officials over the situation in Ukraine. The parties have voiced reserves with respect to a prospective compromise. Russia said on Friday it would not yield to pressure, and warned that talks may be suspended, while Washington said hopes for success were rather low. The talks take place amid worries over Russias military build-up close to its border with Ukraine and fears that Moscow may once again attack the country, after having occupied and annexed Crimea in 2014. Ukraine is seeking NATO membership, but Moscow wants guarantees that NATO would not continue to expand eastwards. The meeting in Geneva will be followed this week by talks between Russian and NATO officials in Brussels, while an OSCE meeting due in Vienna is also scheduled to focus on the situation in Ukraine.



    HANDBALL Romanias national mens handball team qualified into the second round of the 2023 World Championship qualifiers, after defeating the Republic of Moldova 33-23, on Sunday night, at home in Cluj-Napoca, in the last match of the first preliminary round, Group 3. In the previous group matches, Romania defeated Israel 33-30, which in turn beat Moldova 42-31. Romania came out 1st with 6 points, followed by Israel (4), Moldova (2), and Cyprus, (0). Cyprus was unable to take part in the tournament because of a COVID-19 outbreak in its team, and all its games were forfeited with a score of 10-0 for the opposing team. The top 2 teams in each group moved into the second round of the qualifiers. Four times a world champion, Romania has so far taken part in 14 mens handball World Championships, but its last participation dates back to 2011. (tr. A.M. Popescu)

  • January 10, 2021

    January 10, 2021


    COVID-19 Over 4,100 new COVID-19 cases and 16 related fatalities were reported on Monday out of around 30,700 tests. At least 400 patients are in intensive care. In 11 cities the COVID-19 infection rate is above 3 per thousand, with the capital city Bucharest and Ilfov County in the south now on the yellow list, alongside Cluj (north-west), with rates of over 2 per thousand. Meanwhile, the vaccination rate remains low. Only 2,700 people got the first dose in the last 24 hours, nearly 3 times below the average of the last few days. So far, approx. 42% of the population have received at least one vaccine dose. The spread of the Omicron variant triggered a number of protection measures. 160 outpatient evaluation centres will be operational as of this week, to reduce pressure on hospitals.



    INTEREST The Board of the National Bank of Romania may decide today to further raise the policy interest rate, currently standing at 1.75% per year. The increase is expected, given the rise of the inflation rate in Romania and abroad. The policy interest rate was last increased in November, but only by 0.25%, which is less than analysts had expected.



    DIPLOMACY Romanias foreign minister Bogdan Aurescu has talks today with his Pakistani counterpart Makhdoom Shah Mahmood Hussain Qureshi in Bucharest. The visit takes place in the context of recent positive developments in bilateral relations, including Islamabads support for the Romanian authorities efforts to evacuate Romanian and Allied citizens as well as 156 vulnerable Afghan nationals from Afghanistan in August and September 2021. The 2 officials are to discuss means to strengthen bilateral relations, to consolidate political dialogue and economic cooperation. A cooperation agreement between the Romanian Chamber of Commerce and Industry and the Association of Pakistani Chambers of Commerce and Industry, as well as a framework agreement on student exchanges between the Polytechnic University in Bucharest and the University of Islamabad are some of the documents signed during this visit.



    KAZAKHSTAN Monday is a day of national mourning for the victims of the recent violent protests in Kazakhstan, where the situation seems to have stabilised. However, president Kassym Tokayev carried on removing suspected opponents from the countrys security services, with 2 more top-level officials dismissed. They were the deputies of the former head of the National Security Committee, Karim Masimov, dismissed and arrested last week on charges of treason. Masimov was an ally of former president Nursultan Nazarbaev. The latter stepped down in 2019, but he preserved control on key posts until a few days ago. The crisis in Kazakhstan started early this month, after gas prices were raised. The originally peaceful protests quickly spiralled into violent clashes resulting in human casualties and many buildings damaged, especially in the countrys economic centre Almaty. Thousands were arrested. Tokaev requested and received the support of a military alliance headed by Russia, whose troops are currently protecting strategic sites in Kazakhstan.



    TALKS Talks are held in Geneva, Switzerland today by US and Russian officials over the situation in Ukraine. The parties have voiced reserves with respect to a prospective compromise. Russia said on Friday it would not yield to pressure, and warned that talks may be suspended, while Washington said hopes for success were rather low. The talks take place amid worries over Russias military build-up close to its border with Ukraine and fears that Moscow may once again attack the country, after having occupied and annexed Crimea in 2014. Ukraine is seeking NATO membership, but Moscow wants guarantees that NATO would not continue to expand eastwards. The meeting in Geneva will be followed this week by talks between Russian and NATO officials in Brussels, while an OSCE meeting due in Vienna is also scheduled to focus on the situation in Ukraine.



    HANDBALL Romanias national mens handball team qualified into the second round of the 2023 World Championship qualifiers, after defeating the Republic of Moldova 33-23, on Sunday night, at home in Cluj-Napoca, in the last match of the first preliminary round, Group 3. In the previous group matches, Romania defeated Israel 33-30, which in turn beat Moldova 42-31. Romania came out 1st with 6 points, followed by Israel (4), Moldova (2), and Cyprus, (0). Cyprus was unable to take part in the tournament because of a COVID-19 outbreak in its team, and all its games were forfeited with a score of 10-0 for the opposing team. The top 2 teams in each group moved into the second round of the qualifiers. Four times a world champion, Romania has so far taken part in 14 mens handball World Championships, but its last participation dates back to 2011. (tr. A.M. Popescu)

  • Scandal in the insurance sector

    Scandal in the insurance sector

    City Insurance, Romania’s leading issuer of civil liability insurance for
    car owners, went under the special administration of the Insurance Guarantee
    Fund in early June, and has failed to submit in due time the amount stipulated
    in the relevant minimum capital requirements. ASF has announced that without this amount, of over 150 million
    euro, the company, which has issued some 3 million car insurance policies, can no longer
    continue to operate in Romania. Dan Apostol, spokesman for the Financial Supervising Authority:




    Dan Apostol: The authority ordered the
    company to submit, by the deadline stipulated by law, a short-term financing
    plan-in other words, to prove it has the money to cover the minimum capital
    requirement. Then they were supposed to come up with a recovery plan to prove
    they meet the solvency capital requirement. Also, to ensure a prudential
    management of this company, the Financial Supervising Authority appointed the
    Insurance Guarantee Fund as a temporary administrator.




    The
    investigation into the company’s bankruptcy points to possible frauds and
    operations conducted in tax haven countries, says the head of the Insurance
    Division of the Financial Supervising Authority. According to Valentin Ionescu, City Insurance
    declared fictitious amounts in its accounts, and the reinsurance was conducted
    via offshore accounts difficult to verify:




    Valentin Ionescu: This company placed
    outwards reinsurance on 90% of its contracts, going to tax havens. We
    investigated with the authority in the Cayman and Barbados, the answers took a
    year to reach us, and we found there are also problems with respect to the
    insurance of this company.


    The Financial Supervising Authority cancelled City Insurance’s license,
    declared the company insolvent and initiated the bankruptcy procedure.




    At
    present, there are tens of thousands of cases involving damaged cars with City
    Insurance policies, and the claims will be taken over by the Insurance
    Guarantee Fund, which will cover the damages.




    Meanwhile,the government is
    working on 2 emergency orders on the insurance sector, which are currently
    pending approval by the Competition Council, PM Florin Cîţu announced. One of
    the orders concerns policy prices, and the other one provides for some form of
    protection for the clients of City Insurance, if necessary. The latter is aimed
    at stepping up the payment of claims for policy owners.




    Under the current legislation, car owners have to wait
    months and even years for the court to rule the company bankrupt, as it was the
    case with 2 other companies, Carpatica and Astra, which left the insurance
    market several years ago. (tr. A.M.
    Popescu)

  • Romania’s foreign policy in 2020

    Romania’s foreign policy in 2020

    Romania aims to remain a stability factor and a firm promoter of democracy in the international community, President Klaus Iohannis said in Bucharest, at the annual meeting with the chiefs of diplomatic missions in Bucharest. The head of state presented the 3 main directions of the countrys foreign policy this year:



    Klaus Iohannis: “Our EU and NATO membership, together with our strategic partnership with the USA, remain the core pillars of our foreign policy or, as I described them last year, the strategic conceptual triad of Romanias foreign policy. These pillars complement each other. At the same time, we will continue to work for Romanias Schengen accession, which will contribute significantly to strengthening security in the EUs visa-free area, and for joining the Euro zone, when all conditions have been met. In a short while Britain will exit the EU. It is something we havent wished for, but we will work to make sure that the friendship and alliance that have brought us together so far remain strong between Britain and the EU. We will also do our best to modernize the strategic partnership between Romania and Britain, something we are currently working on.



    Romanias foreign policy will be defined, as it has been so far, by continuity and predictability, but naturally some nuances and emphases will shift, so as to provide more coherence and consistence, the head of state also said.



    What are these nuances and emphases, and how can more coherence and consistence be ensured? Analyst Cristian Diaconescu, a former foreign minister, attempted a few answers for Radio Romania:



    Cristian Diaconescu: “A country project overlapping a project for the entire region, and obviously in line with Romanias security and stability interests in one of the most complicated parts of the world, and on the other hand in line with the partnership relations, the standards and values that we all share as members of the EU and the North-Atlantic Alliance. This means more creativity in the area bordering the Black Sea and the Western Balkans, with a very complicated eastern neighbourhood and, more importantly, at the crossroads of the energy corridors—and implicitly the security corridors coming from Eastern Europe or from the Middle East.



    In the current international context, facing risks, challenges and threats old and new, the need for a strong, united and efficient North-Atlantic Alliance is greater than ever, President Iohannis said:



    Klaus Iohannis: “NATO is a successful military alliance and we will continue to work very closely with the other Allies to make it even stronger. This is the main message of the London anniversary summit of December 2019, and Romania will focus on this direction with renewed efforts, as an important ally on the eastern flank in NATO. We are determined to continue to fulfil our commitments to earmark 2% of the GDP to Defence, and we will continue to work to consolidate the Alliances determent and defence posture, particularly in the eastern flank. At the same time, in addition to the Allied effort at the Black Sea, Romania will support NATOs enhanced involvement in the Middle East and in fighting terrorism.



    The President also mentioned the UN and the OSCE as platforms for consolidated dialogue and compliance with international law, and as commentators have noted, he used the word “multilateralism quite frequently.



    Cristian Diaconescu: “First of all, because multilateralism is a key element in promoting and protecting Romanias interests. Secondly, because indeed, if we talk about the UN and OSCE, we can notice some political relaxation, a decrease in the role and the activity of these multilateral bodies, although they still remain relevant in many respects, which are important to Romania. And thirdly, because there is this tendency, especially among the great powers, to have separate dialogues and to make decisions irrespective of these international institutions, which raises concerns among countries, such as Romania, which are located in complicated regions and which end up receiving ready-made decisions in whose negotiation they have not taken part.



    As regards the recent developments in the Middle East, the President of Romania said that the negative effects of this crisis impact the European and global security. Klaus Iohannis also said that Bucharest will resume full cooperation with the neighbouring Republic of Moldova when the Moldovan Government has proved its commitment to the countrys European accession, to reforms in the judiciary and public administration, and to fighting corruption.


    (translated by: Ana-Maria Popescu)