Radio România Internațional

Tag: Romanian economy

  • Concern about Romania

    Concern about Romania

    Considered an essential partner in the Euro-Atlantic security framework, owing to its strategic position on NATO’s eastern flank, and a firm voice in a European Union, fully committed to supporting Ukraine, Romania not only lived up to expectations, but also offered no reason for concern so far. Things changed dramatically after the first round of the presidential election, won by an independent candidate, heavily promoted on TikTok, an opponent of NATO and the EU, an admirer of Putin’s Russia and some gloomy figures from the interwar period, anti-Semitic fascists, an advocate of resource nationalization and an autarchic economy. His victory in the first round was no accident: intelligence services later presented evidence pointing to serious Russian interference in the electoral process, stating that Russia is waging a hybrid war against Romania.

     

    The United States have expressed concern about reports of Russian interference in the elections. The State Department has warned that Romania’s break with Western alliances in terms of foreign policy might have serious negative effects on security cooperation with the United States. Secretary of State Antony Blinken said that Romanian authorities had uncovered a large-scale and well-funded Russian effort to influence the presidential election. In addition, six former US ambassadors to Bucharest conveyed a message to Romanians, expressing concern that Romania was the target of a massive social media and cyber-attack, orchestrated by a state actor. In the letter, Alfred Moses, James Rosapepe, Michael Guest, Nicholas Taubman, Hans Klemm and Adrian Zuckerman expressed confidence that the Romanian people will see these attacks by authoritarian states as failed coups d’état and will not allow them to erode the close relationship the United States has always had with Romania. “Romania has no better friend than the United States, and the United States deeply values ​​this relationship. Together, the people of Romania and the United States will achieve peace, democracy, and prosperity”, the letter reads.

     

    A reaction also came from Berlin: “Reports from the Romanian authorities show that Russian disinformation is influencing the presidential election in Romania: Putin wants to divide us and undermine unity within the EU and NATO. But Europe remains strong. Together, we will protect our democracies from hybrid threats”, the German Foreign Ministry said.

     

    The tense electoral context and uncertainty have also reduced analysts’ confidence in the Romanian economy. The CFA Romania Association’s Macroeconomic Confidence Indicator fell by 13.5% in November, to 31.4%, the lowest level recorded since July 2020 during the pandemic, amid extremely high political uncertainty and a sharp increase in investors’ risk aversion levels, the association’s president, Adrian Codirlaşu, has argued. A slight increase in inflation, around 5% in the coming year, higher interest rates on loans contracted by the state and a slight devaluation of the national currency, are equally anticipated, the CFA Romania president added. (VP)

  • January 25, 2021

    January 25, 2021

    COVID-19 IN ROMANIA – Restaurants, bars,
    cinemas, theatres and gambling outlets will reopen in Bucharest staring today.
    All these venues will work at reduced capacity and with limited working hours.
    The ease in restrictions follows a drop in the infection rate in the capital
    city, to under 3 per thousand inhabitants, thus taking Bucharest out of the red
    zone. Meanwhile the vaccination campaign continues. Over 860,000 people have
    made appointments so far, of whom over half have already been immunized. The
    sixth delivery of over 92,000 Pfizer-BioNTech vaccines arrived earlier today in
    airports in Bucharest, Cluj-Napoca and Timişoara. The vaccines will then be
    taken to regional centers for storing and administration. On Monday, the Group for
    Strategic Communication announced another 1,500 new confirmed cases of COVID-19
    and 65 related deaths. 1,000 patients are in intensive care.




    COVID-19 IN THE
    WORLD – There are over 10 million confirmed cases of COVID-19 in the world
    right now and over 2.1 million associated deaths, the latest worldometers.info
    update indicates. Meanwhile, the new coronavirus strains discovered in Great
    Britain and South Africa continue to spread around the world, and vaccination
    campaigns are slowing down after Pfizer reduced its production capacity, thus
    affecting its deliveries to European states. EU leaders assure pharmaceutical
    companies will observe delivery deadlines under the signed agreements.
    Meanwhile authorities in Germany, France, the Netherlands or Belgium are
    introducing harsh restrictions. In turn, Spain is facing a third wave of the
    pandemic. According to our correspondent on the ground, the regions of Madrid
    and Valencia, home to large Romanian communities, are as of today reintroducing
    restrictions due to the large number of COVID cases. Restaurants in Valencia
    are shut down and the Police in Madrid are using drones to check the observance
    of health safety measures. Nearly all regions will be isolated for the next two
    weeks. In the United States, President Joe Biden today will sign a decree
    reintroducing travel restrictions for citizens from the EU, Great Britain and
    Brazil. With this move the new White House leader wants to keep the mutated
    strains of COVID away from the United States.




    ECONOMY – Romania’s budget is
    under a lot of pressure right now, due to the need to observe the 7% deficit
    target agreed upon with the European Commission, Romanian Deputy Prime Minister
    Dan Barna said on Monday. The Romanian official said the Government is working
    on a Reconstruction and Resilience Plan which Romania will advance to the
    European Commission, under which our country is due to receive some €30 billion.
    On the other hand, the state budget for this year is still under discussion,
    and the Government wants to adopt it in the first half of February. The
    Government is also due to pass a law providing for a 3% increase in the minimum
    wage starting January 2021. In another development, Moody’s financial rating
    agency says the Government in Bucharest passed the most restrictive economic
    support package in Central and Eastern Europe in the context of the COVID
    pandemic. Thus Romania has allotted only 4% of its GDP to economic recovery.
    The report also reveals that half of this package accounts for direct measures
    or tax breaks or payment deferrals, while the other half represents Government
    guarantees.




    MEETING – Romania’s Foreign Affairs Minister, Bogdan Aurescu, is today attending a meeting of EU Foreign Ministers
    in Brussels. EU officials, alongside the High Representative for Foreign
    Affairs and Security Policy, Josep Borrell, will exchange views on the EU
    strategy for distributing vaccines to third-world countries, developments in
    the case of Russian dissident Alexei Navalny, prospects of consolidating
    trans-Atlantic ties and EU-Turkey relations. Minister Bogdan Aurescu will also
    notify his European counterparts regarding progress on setting up the
    Euro-Atlantic Resilience Center in Romania. During an informal breakfast
    meeting, EU Foreign Affairs Ministers will also tackle EU-UK relations in terms of
    foreign policy and security, considering the withdrawal of Great Britain from
    the community bloc on January 1, 2021.




    UNEMPLOYMENT – The
    unemployment rate stood at 3.38% in December 2020, up by 0.06% compared to the
    previous month and by 0.41% compared to December 2019, the National Employment
    Agency reports. The total number of unemployed was close to 300,000, two thirds
    of them reported in the rural area. People without studies and those with basic
    training account for the largest share in the number of unemployed.




    SUMMIT – World leaders are
    today meeting online in the first summit devoted to protecting the planet
    against climate change. The summit focuses on the effects of climate change.
    The previous such summits were devoted to combating the causes of climate
    change, carbon gas emissions in particular. The event is aimed at reducing the
    vulnerability of state in the face of rising sea levels, a surge in extreme
    weather phenomena and food shortages all over the world.




    PORTUGAL – Portugal on Sunday
    elected the moderate Conservative Marcelo Rebelo de Sousa as its new president,
    after a ballot held with the strict observance of COVID-related health safety
    measures. According to AFP, the current president, a 72-year-old law professor,
    earned public recognition as a TV sports commentator. Sousa won 60.7% of the
    vote, according to partial results covering nearly all constituencies. In his
    victory speech, President Sousa promised he would make it his priority to
    combat the COVID pandemic. (V. Palcu)

  • January 10, 2018 UPDATE

    January 10, 2018 UPDATE

    ROMANIA-UKRAINE — The Romanian Foreign Minister Teodor Melescanu will meet Thursday in Cernăuţi, western Ukraine, with his Ukrainian counterpart, Pavlo Klimkin. According to the Ukrainian Foreign Ministry, talks will focus on bilateral cooperation, on ensuring education rights for the Romanian minority in Ukraine and the implementation of the conclusions of the Venice Commission in the new education law of Ukraine. The agenda of the meeting also includes meetings with the leaders of the regional administration and of the local council of Cernăuţi, as well as with representatives of the Romanian community in the region. We recall that the version of the law passed by the Ukrainian Parliament and promulgated by President Petro Poroshenko in September 2017 severely limited the access of ethnic minorities to education in their mother tongue. The Romanian community in Ukraine numbers almost half a million people.



    JUSTICE — The Romanian justice minister, Tudorel Toader, announced that, on January 16, he would hold talks in Strasbourg with the president of the European Court of Human Rights — ECHR, Guido Raimondi, about the roadmap for complying with the requirements of the pilot-decision regarding conditions in Romania’s penitentiaries. Minister Toader pointed out that a memorandum on the issue would be submitted to the Romanian government for approval and that, on January 22, the document would be sent to the Court. In April 2017 the ECHR ruled a pilot-decision against Romania in which it notified the existence of problems related to overcrowding in penitentiaries and detention centers. On the same occasion, the ECHR recommended the authorities to take further measures, both related to logistics and criminal policy, and granted Romania a 6-month deadline for drafting a coherent plan on the matter. Also the Court decided to suspend the examination of all files that denounced the improper conditions in Romania’s penitentiaries.



    ECONOMY — Romania’s economy will report an economic growth rate of 4,5% in 2018 and of 4.1% in 2019 as against the June estimates of 3.7% and 3.5% respectively, World Bank officials say. In the ‘Global Economic Prospects’ report, the WB expects Romania to report a 6.4% growth of the GDP for 2017 as compared to the previous estimate of 4.4%. Economic growth is to diminish in 2020, when Romania’s economy will report an advance of 3.5%. The WB considers that new privatizations in Central Europe (which includes Romania, Poland, Hungary and Bulgaria) represent an opportunity for increasing productivity. In Romania, several state enterprises were depoliticised and their Boards of Directors were populated with professionals between 2013–2016, the report also shows.



    MINISTERS — The 7 new ministers appointed in the government of the Republic of Moldova were sworn in on Wednesday. The appointment decrees were signed by the speaker of Parliament, Andrian Candu, who has taken over the interim presidency of the state, after the pro-Russian president Igor Dodon refused to exert his constitutional prerogatives. Romanian Foreign Minister Teodor Melescanu talked to his new Moldovan counterpart, Tudor Ulianovschi, reiterating Romania’s firm and constant support for Moldova’s EU accession efforts, highlighting the need to intensify reforms. Melescanu extended an invitation to Ulianovschi to visit Romania, which the latter accepted. Also on Wednesday Andrian Candu promulgated the law against propaganda, which provides, among other things, for restrictions as to the re-broadcasting in the Republic of Moldova of political TV programs broadcast in Russia.



    AMBASSADORS – The Romanian Foreign Minister Teodor Meleşcanu on Wednesday met with the ambassadors of the Arab states accredited to Bucharest. On the occasion, minister Meleşcanu said that one of the priorities of Romania’s foreign policy was to develop political and economic relations with the Group of Arab states. At the same time, the Romanian Foreign Minister reiterated the need for the resolution of the Israeli-Palestinian conflict by implementing the solution of the two states, Israel and Palestine, which should co-exist in peace and security. In turn, the representatives of the Group of Arab states appreciated the role of Romania as an active promoter of a peaceful resolution of conflicts and Bucharest’s constant support for a policy of dialogue and negotiations.



    INVESTIGATION — Prime Minister Mihai Tudose on Wednesday gave Romanian Police chief Bogdan Despescu a week to report on the measures taken over a recent sex abuse scandal involving a Road Traffic police officer, who last week sexually abused two minors in Bucharest. Prime Minister Tudose wanted to talk to Despescu before making a decision concerning his position. Interior Minister Carmen Dar had previously called for his resignation, accusing the Police’s lack of reaction and insufficient explanations provided in this case. Minister Dan said several chiefs of department in the Police should be sacked, after investigation revealed the perpetrator had been employed in the Police since 2010, passing all psychological tests. The police officer has been put under a 30-day pre-trial arrest. The case has been taken over by the Prosecutor General’s office, currently investigating several cases involving the perpetrator, dating back to 2009.



    TENNIS — The Romanian tennis player Monica Niculescu on Wednesday defeated the American player Varvara Lepchenko 6-4, 6-2 in the eighth finals of the Hobart tournament of Australia. The tournament has total prizes up for grabs worth almost 225 thousand dollars. Another Romanian player, Mihaela Buzărnescu, qualified to the quarterfinals after she defeated the German Anna-Lena Friedsam. In the next match she will take on American Alison Riske. Monday will see the start of the first Grand Slam tournament of the year, the Australian Open, with Romanian Simona Halep, world’s no. 1, as main favorite.


    (Translated by L. Simion & V. Palcu)

  • September 16, 2017 UPDATE

    September 16, 2017 UPDATE

    FINANCIAL – Romania will keep the budget deficit below 3%, as was pledged under the Stability and Growth Pact, the finance minister Ionuţ Mişa said in a meeting with Valdis Dombrovskis, EC Vice-President for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union. The two officials have had a meeting on the sidelines of the informal meeting of the ECOFIN Council organized by the Estonian Presidency of the Council of the European Union, on September 15 -16. The Romanian official has also said the 5.6% economic growth rate in 2017 is based on consumption, an increase in the volume of the industrial output and a plummeting unemployment rate. According to a preliminary Autumn 2017 Forecast released on Friday by the National Prognosis Commission, estimates on Romania’s economic growth in 2017 have been revised upward from 5.2% to 5.6%.



    VISIT – EU Commissioner for the Security Union, Julian King, will pay an official visit to Bucharest on Monday, for talks with PM Mihai Tudose, justice minister Tudorel Toader and interior minister Carmen Dan. The focal points of the talks, to also be attended by members of the relevant parliamentary committees, will be the fight against terrorism, the exchange of information and the implementation of the recently adopted security legislation. The European Commissioner will also visit the Operational Coordination Centre of the Border Police.



    ROMANIAN TROOPS IN AFGHANISTAN– Romanias President, Klaus Iohannis, has granted corporal Mădălin Stoica the posthumous award “Romanias Star National Order in rank of knight. Mădălin Stoica died in the line of duty in Afghanistan on Friday, in an attack against a Romanian military patrol mission in the area. The award was offered in token of respect and appreciation for the commitment and courage proven in the line of duty, the decree signed by the head of state shows. The U.S. ambassador to Bucharest, Hans Klemm, has hailed the valor of Romanias soldiers in Afghanistan, in a message of condolence to the family of the Romanian military who died on Friday. “ I was saddened to hear of the death of Corporal Mădălin Stoica who was killed during an incident in Kandahar, Afghanistan, and of injuries to other two Romanian soldiers. I would like to extend my personal condolences and those of the United States to the family and friends of Corporal Mădălin Stoica, as well as to his fellow soldiers. I also wish a speedy recovery to the injured soldiers. The valor of Romanias soldiers in the NATO mission in Afghanistan continues to demonstrate the highest commitment to defending freedom and democracy, “ ambassador Klemm writes in the message of condolence. Corporal Madalin Stoica was on his first mission on theatres of operations. Two other soldiers were injured in the incident, but they are stable. In 2017, the Romanian Army is contributing over 620 troops to the NATO Resolute Support mission in Afghanistan, 300 other military being deployed to other regions of the world as part of NATO, EU, UN and OSCE-led missions. 29 Romanian military have lost their lives and over 180 others got injured so far, on missions abroad. The security situation in Afghanistan is still unstable, most incidents being reported in the east and the south.



    LONDON – The British Police make “significant arrest in London subway terror attack, claimed by the Islamic State terrorist group. On Friday morning, an explosion at Parsons Green underground station in the west of London injured tens of passengers and led to a terrorist attack being declared. British Prime Minister Theresa May has raised the UK’s terror threat level to critical, its highest level after London was hit by this new terror attack. Critical means an attack is expected imminently and soldiers will be put on the streets to guard key sites and free up police officers.



    MIGRANTS – The Romanian border police has stopped 19 Iraqi nationals, of which 4 minors, asylum seekers in Romania, upon trying to illegally leave Romania, the line authorities have announced. The Iraqis declared their intention to reach a Schengen country and said they made this choice because they were not holding a valid visa. The number of people trying to illegally cross Romanias western border with Hungary, in the west, has been on the rise over the past year. The number of foreigners trying to illegally cross the border into Romania, by boat, on the Black Sea, has also increased.



    TENNIS – Austria leads Romania 2-1 in the Davis Cup tennis matches played in Wels, in the first-round playoffs to remain in the Europe/ Africa Group I. On Saturday in the mens doubles, Horia Tecău and Nicolae Frunză defeated Dominic Thiem/Philipp Oswald, 3-1. On Friday in the singles, Gerald Melzer defeated Dragoş Dima and Dominic Thiem outperformed Bogdan Borza. On Sunday, Dominic Thiem will play Dragoş Dima and Gerald Melzer will face Bogdan Borza. In the direct matches, Romania leads Austria 3-2.



    RECORD-Romanian swimmer Avram Iancu, a librarian by profession, on Saturday finished the swimming race from Danube’s springs to the Black Sea, thus becoming the first man to ever cross the river from the place where the Danube rises to the place where the river empties into the Black Sea, without any additional equipment. The race ended in Sulina and covered a distance of 2,860 km.



    TABLE TENNIS – Romanias table tennis team on Saturday qualified for the European Championship final held in Luxembourg, after having defeated Russia, 3-0. On Sunday, Romania will play Germany, which has outperformed the Netherlands, 3-2, in the other semi-finals. Romanias womens table tennis team is the holder of three European titles, the last one being grabbed 12 years ago. Germanys national team has won the title in the last three editions and boasts an overall number of seven gold medals.

  • May 10, 2017 UPDATE

    May 10, 2017 UPDATE

    CITIZEN INITIATIVE — The Chamber of Deputies has voted in favour of a citizen initiative to revise the definition of the term “family” in the Romanian Constitution. According to the initiative, family is based on the marriage between a man and a woman of their own consent, on equal rights between the two parties, as well as on the parents’ obligation to see to the upbringing, education and tuition of their children. The Senate is to debate and vote on this draft law.



    STRIKE — Employees of the Environment Law Enforcement Agency are as of Wednesday on an all-out strike indefinitely. Employees are unhappy with pay disparities in their line of work, considering that salaries haven’t been increased since 2009. During the strike, environment officers will come to work but will not receive public notifications or carry out inspections. Previously employees with the Environment Law Enforcement Agency went on a two-hour strike on April 2, aimed at making their salary demands heard. Despite this, trade unions in the field say lawmakers have not shown any interest in solving the existing problems, adding that the protest will continue until the Government will give assurances that their demands have been taken under advisement.



    KING’S DAY — Romania on Wednesday celebrated King’s Day, also coinciding with another two important moments in the country’s modern history. On May 10, 1866 King Carol of Hohenzollern-Sigmaringen was sworn in as ruler of Romania. Also on this day in 1877 King Carol would proclaim the country’s independence from the Ottoman Empire, only to be crowned king four years later. May 10 was the National Day of Romania until 1947, when the communist regime forced King Mihai I into abdicating and subsequent exile. King Mihai returned to Romania only after the anti-communist revolution of 1989. The King is now seriously ill and has withdrawn from public life. Mihai has entrusted Crown Princess Margareta, the first born of his five daughters, custody of the Royal Crown.



    VISIT — Romanian President Klaus Iohannis will receive in Bucharest on Thursday the European Commission President, Jean-Claude Juncker. According to the Presidential Administration, talks will focus on issues of topical interest on the agenda of the future meetings of the European Council, such as the process of reflection on the future of the EU and Brexit negotiations. Other issues to be approached include the political priorities of the future presidency of the EU Council, to be held by Romania in the first half of 2019. Jean-Claude Juncker is also due to meet with Romanian PM Sorin Grindeanu and will address a plenary session of the Romanian Parliament, on the occasion of the 10th anniversary of Romania’s joining the EU.



    EBRD — Romanian economy might report a 4% growth this year as compared to the November estimate of 3.7%, reads a recent forecast of the European Bank for Reconstruction and Development (EBRD). This is the highest growth level among European states where the Bank is conducting its operations. Next year the GDP growth will slow down to 3.5%, consumption will continue to boost growth in 2017 and 2018, sustained by the rise in the minimum wage and public sector salaries. Government spending will probably spike in 2017, running the risk of exceeding the budget deficit target of 3% of the GDP, the EBRD has warned. In turn, the IMF has upgraded its forecast on Romanian economic growth this year, from 3.8% to 4.2%. The Romanian Government has grounded its budget planning for 2017 on a 5.2% economic growth forecast.



    WORK RESTRICTIONS — Switzerland on Wednesday decided to activate a clause stipulated in the EU Agreement providing for a temporary introduction of restrictions on the Swiss labour market for Romanian and Bulgarian citizens. The Romanian Foreign Ministry has expressed regret over the decision. When Romania and Bulgaria joined the EU, Switzerland introduced restrictions, limiting the access of those countries’ citizens on the Swiss labour market. Those restrictions were however lifted in June 2016. Back then, the Swiss government warned that in case the inflow of migrants from the two countries exceeded 10% of the past three years’ average figures, on June 1, 2017, or on June 1st 2018, at the latest, the Federal Council will be able to impose new restrictions on the domestic labour market, valid until May 31, 2019. (Translated by V. Palcu and D. Vijeu)

  • February 19, 2017 UPDATE

    February 19, 2017 UPDATE

    DIPLOMACY – Romanian Foreign Minister Teodor Melescanu reiterated Romanias support for increasing the role of the EU in the field of defence, in line with NATO requirements. Attending the NATO Security Conference in Munich, Melescanu underlined the importance of consolidating the EU as a viable and influential global actor, outlining Romanias contribution to securing Euro-Atlantic and global security. On the sidelines of the conference, the Romanian Foreign Minister met with NATO Secretary General, Jens Stoltenberg, who congratulated and thanked Romanian authorities for allotting 2% of the countrys GDP to defence. Melescanu also had talks with his Georgian and Azeri counterparts, with the Secretary General of the League of Arab Nations, as well as with other high-ranking officials attending the conference.



    EMERGENCY DECREE – The Chamber of Deputies is still debating the emergency decree on the withdrawal of the controversial decree by means of which the Government attempted to amend criminal legislation. According to the head of the Chambers judicial committee, which is the decision-making body in this case, adopting the former would make null the latter. Aimed at partially decriminalising abuse of office, the decree has been the target of mass street protests since its adoption on January 31.



    CVM – Romanian Prime Minister Sorin Grindeanu announced he would send a letter of enquiry to the European Commission next week regarding the Cooperation and Verification Mechanism, so that the Government can take the necessary measures. Grindeanu told Realitatea television station that he wants the mechanism to be lifted in the shortest time possible. The Prime Minister recalled that, during his meeting with European Commission president, Jean-Claude Junker held on Friday, the latter insisted that Romania should no longer be monitored under the CVM by the end of his term in office. In his talks with high-ranking European Commission officials, Prime Minister Grindeanu gave assurances that the Government in Bucharest remains committed to fighting corruption.



    ECONOMY – Romania reported a 292 million euro deficit in trading foodstuffs in the first 11 months of 2016, given that, over the similar period of 2015, our country reported a surplus of over 65 million euros, according to data released by the Agriculture Ministry. Exports stood at 5,4 billion euros, up by 2.7% as against the same period of 2016, while imports exceeded 5,7 billion euros, by 9.6% more than the period under scrutiny. The EU was Romanias main trade partner in terms of exports and imports of foodstuffs, with deliveries accounting for over 54% of total exports, while EU purchases accounted for some 74% of total imports.



    BRANCUSI – Romanian embassies, consular offices and cultural institutes abroad on Sunday marked the Brancusi Day, devoted to the great Romanian sculptor Constantin Brancusi. Considered the “father of modern sculpture, Constantin Brancusi was born on February 19, 1876 in Hobita, Gorj County, southern Romania. According to the Romanian Foreign Ministry, 2017 bears a triple significance for promoting Brancusi and his works. March 16 will mark 60 years since the death of Brancusi. Also, in 2018, the year Romania celebrates 100 years since its Great Unification, our country will also celebrate 80 years since the great sculptor accomplished his greatest monument ensemble, “The Heroes Path in Targu Jiu, an homage to the Romanian soldiers who gave their lives for people and country in the Great War. Also this year on June 15 we mark 40 years since the inauguration of the “Brancusi Workshop in 1977 at the Pompidou Cultural Centre in Paris.



    FILM – Romanian image editor Dana Bunescu on Saturday scooped the Silver Bear award for editing at the 67th edition of the International Berlin Film Festival, for the feature film Ana, mon amour, directed by Calin Peter Netzer. The feature was selected in the main competition for the Golden Bear, which this year went to Hungarian filmmaker Ildko Enyedis feature On Body and Soul. We recall that Calin Peter Netzer won the Golden Bear in 2013 with his feature Childs Pose.



    CARNIVAL OF VENICE – This year as well Romania is represented in the main program at the Venice Carnival. Romanian traditional costumes were presented on Sunday at the official parade opening the Carnival, while alphorn players from Campeni, Alba County, performed on stage in San Marco Square. On Saturday, the “Zestrea exhibition of Romanian traditional costumes designed by Liliana Turoiu was opened and can be visited until February 28. (Translated by V. Palcu)

  • February 19, 2017

    February 19, 2017

    DIPLOMACY — Romanian Foreign Minister Teodor Melescanu reiterated Romania’s support for increasing the role of the EU in the field of defence, in line with NATO requirements. Attending the NATO Security Conference in Munich, Melescanu underlined the importance of consolidating the EU as a viable and influential global actor, outlining Romania’s contribution to securing Euro-Atlantic and global security. On the sidelines of the conference, the Romanian Foreign Minister met with NATO Secretary General, Jens Stoltenberg, who congratulated and thanked Romanian authorities for allotting 2% of the country’s GDP to defence. Melescanu also had talks with his Georgian and Azeri counterparts, with the Secretary General of the League of Arab Nations, as well as with other high-ranking officials attending the conference.



    EMERGENCY DECREE — The Chamber of Deputies is still debating the emergency decree on the withdrawal of the controversial decree by means of which the Government attempted to amend criminal legislation. According to the head of the Chamber’s judicial committee, which is the decision-making body in this case, adopting the former would make null the latter. Aimed at partially decriminalising abuse of office, the decree has been the target of mass street protests since its adoption on January 31.



    CVM — Romanian Prime Minister Sorin Grindeanu announced he would send a letter of enquiry to the European Commission next week regarding the Cooperation and Verification Mechanism, so that the Government can take the necessary measures. Grindeanu told Realitatea television station that he wants the mechanism to be lifted in the shortest time possible. The Prime Minister recalled that, during his meeting with European Commission president, Jean-Claude Junker held on Friday, the latter insisted that Romania should no longer be monitored under the CVM by the end of his term in office. In his talks with high-ranking European Commission officials, Prime Minister Grindeanu gave assurances that the Government in Bucharest remains committed to fighting corruption.



    ECONOMY — Romania reported a 292 million euro deficit in trading foodstuffs in the first 11 months of 2016, given that, over the similar period of 2015, our country reported a surplus of over 65 million euros, according to data released by the Agriculture Ministry. Exports stood at 5,4 billion euros, up by 2.7% as against the same period of 2016, while imports exceeded 5,7 billion euros, by 9.6% more than the period under scrutiny. The EU was Romania’s main trade partner in terms of exports and imports of foodstuffs, with deliveries accounting for over 54% of total exports, while EU purchases accounted for some 74% of total imports.



    BRANCUSI — Romanian embassies, consular offices and cultural institutes abroad on Sunday marked the Brancusi Day, devoted to the great Romanian sculptor Constantin Brancusi. Considered the “father of modern sculpture”, Constantin Brancusi was born on February 19, 1876 in Hobita, Gorj County, southern Romania. According to the Romanian Foreign Ministry, 2017 bears a triple significance for promoting Brancusi and his works. March 16 will mark 60 years since the death of Brancusi. Also, in 2018, the year Romania celebrates 100 years since its Great Unification, our country will also celebrate 80 years since the great sculptor accomplished his greatest monument ensemble, “The Heroes’ Path” in Targu Jiu, an homage to the Romanian soldiers who gave their lives for people and country in the Great War. Also this year on June 15 we mark 40 years since the inauguration of the “Brancusi Workshop” in 1977 at the Pompidou Cultural Centre in Paris.



    FILM — Romanian image editor Dana Bunescu on Saturday scooped the Silver Bear award for editing at the 67th edition of the International Berlin Film Festival, for the feature film Ana, mon amour, directed by Calin Peter Netzer. The feature was selected in the main competition for the Golden Bear, which this year went to Hungarian filmmaker Ildko Enyedi’s feature On Body and Soul. We recall that Calin Peter Netzer won the Golden Bear in 2013 with his feature Child’s Pose.



    CARNIVAL OF VENICE — This year as well Romania is represented in the main program at the Venice Carnival. Romanian traditional costumes were presented on Sunday at the official parade opening the Carnival, while alphorn players from Campeni, Alba County, performed on stage in San Marco Square. On Saturday, the “Zestrea” exhibition of Romanian traditional costumes designed by Liliana Turoiu was opened and can be visited until February 28. (Translated by V. Palcu)

  • 15 June, 2016

    15 June, 2016

    Romania’s president
    Klaus Iohannis pays an official visit to Bulgaria today and tomorrow for talks
    with his Bulgarian counterpart Rosen Plevneliev and prime minister Boyko
    Borissov. They will discuss ways to develop economic and trade cooperation,
    Romania’s partnership with Bulgaria within NATO and the European Union,
    collaboration in south-eastern Europe and the security situation in the region.
    Romania’s president and his Bulgarian counterpart will also attend the opening
    of the Romanian-Bulgarian Business Forum. Romania is Bulgaria’s third largest
    trade partner in Europe. President Iohannis will visit the building site of the
    Giurgiu-Ruse gas pipeline, an important project for the energy security of the
    two states and the region. He will also meet representatives of the Romanian
    ethnic community in Bulgaria and visit the Mihai Eminescu High School in Sofia,
    which provides teaching in Romanian.


    The issue
    of visas for Romanian citizens travelling to Canada is the main subject of a
    trip to this country by Romania’s prime minister Dacian Ciolos on the 14th
    and 15th of June. He is due to meet his counterpart Justin Trudeau
    in Ottawa and the General Governor of Canada David Johnston, as well as
    members of the Romanian community. This is the first Romanian-Canadian meeting
    at prime minister level in the last 10 years. The nationals of Romania and
    Bulgaria are the only ones in the European Union still needing visas to travel
    to Canada.




    The International Monetary Fund warns that Romania may
    see its economy grow by even 4% a year, but only if it stimulates investments,
    steps up the absorption of European funds and solves the problems facing state
    companies. A former head of the IMF mission to Romania, Jeffrey Franks said,
    however, that he would prefer to see Romania grow by 3.5% every year for ten
    years rather than see it grow by 4.5% for five years and then witness an
    economic crisis.




    The Constitutional Court of Romania today resumes debates
    on a Criminal Code article about abuse of office, following a complaint that
    its text is ambiguous and unconstitutional. The complaint was signed by former
    ministers and a former head of the anti-mafia body who have been indicted for
    abuse of office. The chief prosecutor of the National Anticorruption
    Directorate Laura Codruta Kovesi warned that a possible decriminalisation in
    this case would make it impossible to recover the losses caused as a result of
    abuse of office, which last year amounted to 620 million euros. 40% of the
    cases under investigation at the moment refer to abuse of office. In response,
    the National Union of Judges sent Kovesi a public letter urging her to put an
    end to what it described as pressures on the Constitutional Court before this
    is due to make public its ruling.




    Romania meet
    Switzerland today in Paris in their second Group A match at EURO 2016. In the
    same group, France play Albania in Marseille. In their opening match last
    Friday, Romania lost to host country France 1-2, while Switzerland defeated
    Albania 1-nil on Saturday. On Tuesday in the first Group F matches, Hungary
    defeated Austria 2-nil, while Portugal drew against Iceland 1-all.




    Romania’s rugby side defeated Uruguay 40-nil in Bucharest
    on Tuesday in a World Rugby Nations Cup game. The game, which started on Monday
    night, was stopped after 28 minutes because of a thunderstorm, while Romania
    was leading 18-nil. In their first game last week, Romania defeated Namibia
    20-8. On Saturday, they will play Argentina for the trophy. This is the tenth
    time Romania plays host to the World Rugby Nations Cup, an important event in
    the rugby calendar. (Translated by: C. Mateescu)

    5
    renowned European radio orchestras to attend RadiRo Festival 2016!




    8
    concerts in 8 days of festival, 5 European radio orchestras, 16 conductors and
    soloists who hold the headline of the international musical scene: this is how
    the name card of the RadiRo Festival looks like in 2016, featuring a
    spectacular mix of the classical, modern and contemporary repertoire. The
    honorary director of the festival will be Kristjan Järvi, principal conductor
    of the MDR Leipzig Radio Symphony Orchestra.


    Organized
    by Radio Romania, the RadiRo Festival, which is the only international musical
    event exclusively dedicated to radio ensembles in Europe, will take place in
    Bucharest from September 24th to October 1st, 2016.


    The
    festival will showcase European radio ensembles who have made the history of
    the special dialogue between radio and classical music in the last half of a
    century: the Norwegian Radio Symphony Orchestra, the MDR Radio Symphony
    Orchestra, the ORF Radio – Symphonie Orchester Wien, the BBC Concert
    Orchestra and, the host of the event, the Romanian Radio National Orchestra.


    By means of their
    unique magical way of performing, which has won the wide acclaim from both
    critics and the audience, famous scores will take new life in the hands of
    violinists Gidon Kremer and Alexandru Tomescu, pianists Stefano Bollani, Vadym
    Kholodenko and Denis Kozhukhin, cellist Răzvan Suma, together with Tine Thing
    Helseth – trumpet and other soloists instrumentalists of the guest orchestras.
    Innovative approaches will come one after another under the baton of renowned
    conductors like Miguel Harth – Bedoya, Cristian Măcelaru, Cornelius Meister,
    Leo Hussain, Barry Wordsworth and Kristjan Järvi.


    Subscriptions to RadiRo
    2016 will go on sale starting from June 15th 2016 and will be
    available on www.eventim.ro.



  • March 8, 2016 UPDATE

    March 8, 2016 UPDATE

    ECONOMY– Romania last year reported 3.7% in economic growth as compared to the previous year and an estimated GDP of 158 billion euros, the National Institute for Statistics has announced. All economic sectors have contributed to the GDP growth with the exception of agriculture, forestry and fishing. Several sectors, such as trade, car mending, transport and storage, hotels and restaurants, constructions, IT&C and industry have made a significant contribution to the GDP growth. The National Forecast Committee has revised up its outlook for the GDP to 4.2% this year. A 4.3% economic growth is expected for the next year.



    VISIT-Romanias President, Klaus Iohannis, has announced he will plead for the setting up in Bucharest of a museum dedicated to Jews and the Holocaust and that he will have talks on this issue with government representatives. The announcement was made during his official visit to Israel, after he signed in the Guest Book of the “Yad Vashem Holocaust Memorial in Jerusalem. At the end of the talks he held on Tuesday with the Knesset Speaker, Yuli-Yoel Edelstein, the Romanian President said the “Holocaust tragedy is a painful page in the history of mankind. We have the moral duty to keep alive the memory of the millions of Jews who fell victim to murderous ideologies and we have the obligation to categorically oppose intolerance, based on ethnic, racial or religious criteria, for this to never repeat again. On Monday, during the official talks with his Israeli counterpart, Reuven Rivlin, and Prime Minister Benjamin Netanyahu, President Iohannis underlined that in order to ensure Israels security, there couldnt be any compromise. After Jerusalem, President Johannis will visit the Palestinian territories, where he will have official talks with President Mahmoud Abbas.



    DIPLOMACY – Romanian Prime
    Minister Dacian Ciolos held talks in Brussels on Tuesday with NATO Secretary
    General, Jens Stoltenberg, on NATO’s presence in Eastern Europe, the Black Sea
    area and on the EU-NATO strategic relationship. Dacian Ciolos has underlined
    that the Romanian government has pledged to increase the defence budget, which
    will stand at 2% of the GDP in 2017. Jens Stoltenberg said Romania is a very
    appreciated NATO member, which actively contributes to the alliance’s missions in
    Afghanistan and Kosovo and to Black Sea security. The NATO Secretary General
    has also said Romania is the host of NATO active equipment and of a large part
    of the anti-missile defence system, placed in Deveselu. The meetings with the President
    of the European Council, Donald Tusk, and with representatives of the Romanian
    communities in Belgium brought to an end the visit paid by PM Dacian Ciolos to
    Belgium. Also in Brussels, Dacian Ciolos on Monday attended the EU-Turkey
    Summit on the joint plan regarding the refugee crisis. After the meeting, the
    Romanian prime minister hailed Turkey’s proposals on managing the flow of
    migrants and said their implementation would deter illegal migration to the EU.



    MILITARY EXERCISES-Almost 120 multinational exercises have been planned in Romania and abroad this year, a Romanian Defence Ministry communiqué reads. On Monday, the Mihail Kogalniceanu base in Constanta County, south-eastern Romania, saw the opening ceremony of a joint drill involving the air forces of Romania and Canada. Until April 10, close to 200 Romanian soldiers from the countrys air forces backed by MIG-21 fighters and Puma gunships will be training together with their Canadian colleagues backed by F 18 Hornet fighters. The drills are aimed at improving interoperability and cooperation inside the North-Atlantic Alliance.



    WOMENS DAY– The International Womens Day is usually celebrated in Romania by most of the population, shows a survey conducted by the Romanian Institute for Evaluation and Strategy. For almost two thirds of the Romanians, March 8 is a day of celebration, 85% of Romanian women say they have received flowers, jewels or perfumes on that day. On this occasion Romanians are mainly making presents to their wives, mothers and girlfriends, acknowledging their qualities of being hardworking, beautiful and sympathetic.



    TENNIS– The world famous Russian tennis player Maria Sharapova announced on Monday night that she had tested positive for a recently banned drug called Meldonium, at the Australian Open. The Russian athlete admitted to having been taking the drug for 10 years before being banned on January 1st. Sharapova admitted to her mistake and to badly disappointing her fans, adding that she didnt want her career to end in such a way. Suffering from injuries at present, when shes ranking 7th in the world standings, Sharapova shot to international fame back in 2004, after winning the Wimbledon tournament at the age of 17. She has also reaped other Grand Slam titles ever since, such as the Australian Open, US Open and Roland Garros. Her prize closet includes no less than 35 titles in womens competitions. She won Fed Cup with the Russian side in 2008 and reaped a silver medal in the single contest of the London Olympics in 2012.

    (Translated by Daniel Bilt and Diana Vijeu)

  • January 15, 2016 UPDATE

    January 15, 2016 UPDATE

    Nicolae Timofti, president of the Republic of Moldova, an ex-soviet country with a Romanian-speaking majority on Friday designated the new candidate of the Parliament majority, Pavel Filip for the position of Prime Minister, Radio Chisinau reports. Pavel Filip is to be starting negotiations with Parliament parties on Monday. The president said that he accepted the majority’s new candidate after the situation changed on Thursday night when many signatories of the majority’s statement endorsing a candidate had announced they would cease their support if the Democratic Party insisted on the candidacy of controversial businessman Vlad Plahotniuc. On Friday, the declared Parliament majority of 55 MPs out of the Legislature’s 101 presented president Timofti with the candidacy of incumbent IT&C Minister Pavel Filip for the position of Prime Minister. Earlier in the day, Ion Paduraru, designated on Thursday by president Timofti, had announced his withdrawal. Unless a new government gets the swearing in vote by January 29th, the Republic of Moldova will be seeing early election.



    Romanian president Klaus Iohannis has sent the law on changing the status of local political leaders to Parliament for reassessing. The president said that in its present form the law could affect the fight against corruption and the effectiveness of legislation in terms of integrity. Under the present law, mayors, local and county councilors as well as county council chairmen can lose their mandates only after they have been given prison sentences. The president believes that it’s the condemnation itself that should make a dignitary loses his or her integrity and not the punishment given by the court. The law was rejected by the Chamber of Deputies but endorsed by the Senate as a decision-making body.



    A host of literary events, exhibitions and music shows have been held in Bucharest and other big cities across Romania and abroad, to mark National Culture Day. The Romanian Academy hosted a solemn session, and the Romanian Athenaeum played venue for a traditional music concert given by folk singer Grigore Lese and friends. Homage paying events have been held in Chisinau, the capital city of the Republic of Moldova, a country with a predominantly Romanian speaking population, where National Culture Day is also celebrated today, as well as in the Cernauti region in Ukraine, which is home to over 200,000 ethnic Romanians.



    Romania’s economy registered a 3.7% growth rate in the first nine months of 2015, as compared to the same period of 2014, data released by the National Institute for Statistics show. Also, in real terms, the GDP registered in the third quarter of 2015 was 1.4% higher than in the second quarter of the same year. The National Forecast Commission has revised upward, to 3.6%, the estimated increase in the GDP in 2015 and maintained to 4.1% the estimated economic growth rate in 2016, according to the autumn version of the Long-Term Forecast, made public in November.

  • The Week in Review, January 4-10

    The Week in Review, January 4-10

    Romanian PM on a visit to Berlin


    The head of the Romanian government Dacian Cioloş and Chancellor Angela Merkel discussed in Berlin on Thursday the Romanian-German relations as well as the prospects of Romanias Schengen accession. The two officials also noted the progress Romania has made in terms of fighting corruption, which in their opinion should reflect in the forthcoming report of the European Commission regarding the Romanian judicial system. Angela Merkel appreciated Romanias importance, among other things, as an economic partner, but warned that some conditions must be created in order for relations in this field to be strengthened. These include, according to the German Chancellor, the improvement of the Romanian judicial system and curbing corruption. As regards Romanias Schengen accession, Dacian Cioloş once again said that Bucharest meets the technical prerequisites for accession, and highlighted that Romania already acts as a Schengen member state in terms of border security. The visit of the Romanian PM ended with a meeting with representatives of the Romanian community in Germany, held at the Romanian Embassy.



    National Bank Governor on the state of the Romanian economy


    A salary raise is inevitable in Romania, in the context of the countrys European integration, but its overlapping with fiscal relaxation measures should have been avoided, the National Bank Governor Mugur Isarescu said. He added that caution should be exercised in raising incomes, so as to make sure that subsequent cutbacks would not be needed. In his opinion, during this election year authorities must be particularly cautious as regards macro-stability, so that economic growth should not be subsequently affected by interest increases, inflation or exchange rate falls. According to Isarescu, last year the national currency, leu, was stable because the macroeconomic context of 2015 was stable and there was no need for large-scale interventions by the National Bank. At present, the international context is more uncertain than it was last year, and higher volatility or larger capital movements may generate temporary imbalances in the market, Mugur Isarescu warned.



    World Bank improves forecast on Romanias economic growth in 2016


    In its latest report on global economic prospects, the World Bank upgrades its forecast on Romanias economic growth rate this year, from 3.2% to 3.9%, and for next year from 3.5% to 4.1&. The institution also improved its estimate regarding the annual GDP increase in Romania for last year, from 3 to 3.6%.


    As regards the region comprising Europe and Central Asia, which includes Romania, but not the Eurozone, the financial institution estimates a 3% growth rate in 2016, and 3.5% in 2017 and 2018. The National Bank of Romania has stated that boosting economic growth in the third quarter of last year was supported by the expansion of private consumption, against the background of higher incomes for the population, improved lending, lower direct taxes and a growing trust in the economy. The institution has decided to maintain the monetary policy interest rate at 1.75% per year, and to reduce the rate of required minimum reserves for the banks foreign currency liabilities.



    Romania under winters assault


    Romania has recently been faced with the first serious snow fall this winter, but, unlike the previous years, the phenomenon has not wreaked havoc with the country road, rail or air traffic. However, several people died because of the extremely low temperatures, which went below minus 20 degrees Celsius in some parts of the country. The bad weather engulfed almost the entire country, and weather specialists issued many warnings and codes for heavy snow, rain, heavy wind and blizzard. Speed restrictions were enforced on railroads, and many trains were delayed. Road and air traffic were faced with some weather problems too, so several flights were delayed and one plane skidded off runway upon landing in Cluj, in central Romania, because, apparently, the runway was full of snow. In the Romanian Black Sea ports, the activity was temporarily suspended because of the heavy wind. Although the layer of snow in Bucharest was not higher than 10 cm, traffic was hampered, because people in charge with removing the snow did not do their job in due time.



    Budget priorities for Romanian Army


    The Romanian Defense Minister, Mihnea Motoc, has announced that the number of exercises in which the Romanian soldiers will participate in 2016 will increase to over 400. Of them, more than 100 will be multinational. Also, the armys operational capacity will be strengthened, as the funds earmarked from the budget for 2016 have been increased. In 2017, the budget of the Army should account for 2% of the GDP, and the rate is to be maintained for at least 10 years, according to the authorities. A member of NATO since 2004, Romania has consolidated its position within the alliance, in particular due to last years activation of two command units: the Multinational Division South-East and the NATO Force Integration Unit. Also, the first elements of the missile defense shield in Deveselu, in southern Romania, were rendered operational.

  • Encouraging Economic Prospects

    Encouraging Economic Prospects

    For Europe and Central Asia, a region that includes Romania, but not the Eurozone, the WB forecasts a 3% growth rate for 2016 and 3.5% for the next two years.



    In its latest report on global economic prospects, released on Wednesday, the World Bank raised its forecasts regarding Romania’s economic growth rate from 3.2 to 3.9% for this year and from 3.5 to 4.1% for 2017. The World Bank thus joins the European Commission and the International Monetary Fund, which in late 2015 made public equally optimistic projections, confirming the positive trend of the Romanian economy in the past few years. The EC estimated, in its autumn forecast, an annual 4.1% increase of Romania’s GDP this year and 3.6% in 2017. The IMF makes similar forecasts, namely an estimated 3.9% growth rate this year, while the Government of Romania expects the economy to grow by around 4%.



    The World Bank also improved its estimates regarding last year’s economic growth, from 3 to 3.6%. For the Europe and Central Asia region, which includes Romania, but not the Eurozone, the World Bank expects a 3% economic growth rate in 2016 and 3.5% for 2017 and 2018. The Bulgarian economy is expected to go up by 2.2% this year and 2.7% next year, Hungary will see 2.5 and 2.7% growth rates in 2016 and 2017 respectively, and Poland is to expect 3.7 and 3.9% growth rates. The World Bank remains optimistic as concerns Romania’s economic growth rate in 2018 as well, when it projects a 4% rise in the GDP.



    On the other hand, the World Bank warns that the region is facing many risks, including a possible deepening of geopolitical tensions, persistent low commodity prices as well as a decline in remittances from developed countries. The international financial institution argues that more rapid growth in the region will depend on supporting a rebound of investment, which is still below the pre-crisis levels.



    In many countries, public investments are constrained by limited fiscal space, and private investments are affected by companies still struggling to work off debts. In some EU Member States, like Bulgaria and Romania, investment is supported by the EU structural funds, but the absorption capacity remains a problem.



    According to the World Bank, one of the regional factors that might affect Romania and Bulgaria is the slow-down in Turkey’s growth. At global level, according to the report, growth will be affected by the problems of the emerging economies, but the GDP increase should see a modest pick-up, from 2.4% in 2015 to 2.9% this year, thanks to the more substantial growth of the developed economies.


    (Translated by Ana Maria Popescu; Edited by Diana Vijeu)

  • Good Economic Results

    Good Economic Results

    The
    precautionary agreement with the IMF, which Romania signed in 2013, expired a
    few days ago. Although the Romanian economy has registered a significant growth
    lately, the Romanian Government plans to conclude another precautionary
    agreement to protect Romania’s finances against market shocks. XX is in the
    studio with more, in a commentary by Andrea Bojoi.






    The 2 billion Euro precautionary
    agreement signed by Romania and the IMF in 2013 expired on Saturday. In reality,
    the accord has actually been blocked in the past six years, because of the
    disagreements between Bucharest and IMF officials regarding the Romanian
    Government’s fiscal plans. In early 2015, authorities tried to adopt a big
    tax-reduction package through the new Fiscal Code, but representatives of the
    international financial institutions, just like the Fiscal Council and the
    National Bank, criticized the initiative.

    One day after the agreement expired,
    Prime Minister Victor Ponta wrote on a socializing network that in 2015
    Romania’s economic situation has changed dramatically as compared to 2009, when
    the first accords with international lenders were signed, and Romanians’ living
    standards and incomes have increased significantly. To make his point, the Premier
    presented some comparative figures. In 2009 the economic growth stood at minus
    6,6%, as compared to 3.7% growth rate registered in the second quarter of 2015.
    The budget deficit in 2009 was 9% of the GDP, while in 2015 the estimated
    deficit stands at 1.45% of the GDP. Ponta also wrote that Romania is as safe
    and stable economically as any developed member of the EU, quoting an
    information published by the Standard and Poors rating agency.

    According to the
    same agency, Romania’s risk of defaulting on payments is only 7.8%, as compared
    to the period between 2009 and 2011, when Romania was among the 10 countries
    with the highest risk of defaulting. The IMF has recently confirmed that, if
    the trend is maintained, Romania is likely to outrank, from an economic point
    of view, countries such as Portugal, Greece and the Czech Republic. Although
    the current agreement with the IMF has expired and the country’s economic
    situation is good, the Finance Minister Eugen Teodorovici has announced that
    Romania plans to start negotiations with the international lenders for a new
    precautionary agreement, which would come into force in 2016. In his opinion,
    such an agreement is necessary to protect Romania’s finances against potential
    market shocks and to facilitate cheaper loans from the world markets.

    According
    to experts, the explanation for such a decision lies with the current context,
    in which the provisions of the new Fiscal Code and the upcoming salary increase
    in the budget system are estimated to bring the deficit close to 3% in 2016. In
    their opinion, negotiating a new loan will be more difficult now, given that
    the Romanian officials have almost all the time disagreed with the IMF with
    regard to the latest accord. Still, they are expecting a clear direction in the
    relations between the two parties to be established in the coming period.



  • Romania’s economy – as seen by the government and the opposition

    Romania’s economy – as seen by the government and the opposition

    Following the
    implementation of two measures with a strong economic and social impact, the
    cut in the VAT rate for food products and doubling the amount of child
    benefits, prime minister Victor Ponta on Tuesday presented Parliament with the
    situation of the economy as part of a new practice called the Prime Minister’s
    hour, based on Britain’s Questions to the Prime Minister.




    Victor Ponta
    told MPs that three years after recession, Romania now has the highest economic
    growth rate in the European Union. The GDP grew by 4.2% in the first quarter of
    the year and the country’s foreign debt has almost entirely been paid back. The
    fact that the economy is performing so well is no accident, said Ponta:




    This growth is
    not based on circumstantial factors, but on domestic consumption, exports, the
    growth of the industrial sector and services, and most importantly this year,
    also a growth in the building sector, which we should continue to encourage.
    2015 began with a significant growth in the amount of direct foreign
    investment. We paid back almost the entire loan contracted and spent by our
    colleagues from the Liberal Democratic Party in the opposition. We have met
    each of the deficit targets established together with our international
    partners.




    The prime
    minister thanked Parliament for the support given to his cabinet to implement
    two important measures for Romania’s economy: the cut in VAT rates for food
    products and non-alcoholic drinks to reach 9% and doubling the amount of child
    benefits. He called for further support to pass the new Fiscal Code bill, the
    Transport Master Plan and the new public procurement bill. Unimpressed with
    the figures presented by the prime minister, the Liberal opposition said the
    number of businesses that have been declared insolvent in recent years has
    increased dramatically, while family incomes have dropped. Liberal MP Ludovic
    Orban:




    During your
    term as prime minister, more than 370,000 businesses have closed and almost
    80,000 have begun insolvency procedures. Over 450 businesses have gone bust.
    How can we support the development of domestic capital when public investment
    has been systematically reduced?




    The Liberals
    also quoted a European Commission report that denounces, among others, the
    unpredictability of Romania’s fiscal measures and the adoption of an
    unsustainable investment strategy. The conclusion of the opposition was that
    the government has no credibility left and the little progress seen by the
    economy came in spite of the Social Democratic rule and not because of it.

  • Positive economic developments

    Positive economic developments

    Early June has brought good news for Romanians. On the one hand, president Klaus Iohannis has signed the law doubling child benefits, from a little above 9 Euros at present, to 18 Euros. This year alone this law will incur expenses of 200 million Euros from the state budget. On the other hand, the new law providing for a slash in the VAT for foodstuffs, from 24 to 9%, came into force. Prime Minister Victor Ponta gave assurances that there will be no negative impact on the budget. He argued that both measures were made possible due to an increase in productivity and progress in collecting tax revenues.



    The Labour Ministry is currently working on a law package to pay child benefits according to each familys income. Due to be made public in September, that draft law has already sparked controversies linked to its discriminatory nature. With the slash in the VAT for foodstuffs, large department stores have lowered their prices, displaying both the price prior to the slash in VAT and the new price. Analysts estimate that the slash will not leave extra cash in peoples pockets, but the government hopes it will boost consumption and stimulate economic growth.



    According to the latest economic forecasts, Romanias economy is also expected to grow beyond the estimates made in early 2015. The upward trend of the economy will in turn trigger positive economic prospects for 2015 and the years to come. The National Forecast Committee has recently upgraded its economic growth estimate for 2015, from 2.8% to 3.3%. The growing pace of the economy might lead to a growth rate of 4% in 2018. The European Commission, the World Bank and the European Bank for Reconstruction and Development estimate that the economy will grow by over 3% on average in the following years, as compared to their initial 2.5 – 2.8.% estimate.



    In the first quarter of the year, the economy grew by 4.3% more compared to the same period of last year. Interest rates in the national currency plummeted, which triggered an increase in the revenues and bigger consumption figures. The car market has also recovered, with truck sales going up by over 20% in the first months. The slash in the value-added tax for foodstuffs will increase consumption, due to a 12% drop in prices for foodstuffs, and will generate an 0.5% increase of the GDP.