INTERNATIONAL FINANCIAL MISSION– Talks between a joint delegation of Romania’s international lenders and the local authorities have been constructive, although a series of issues remain pending, an IMF communiqué shows. High on the agenda was the government’s intention to introduce a 5% reduction in employer social security contributions. The measure didn’t get the lenders’ approval but the agreement Romania has signed with the IMF, the World Bank and the European Commission remains operational, Prime Minister Victor Ponta has said. The Romanian official has also announced the government’s intention to reduce social security contributions as of October the 1st and has given assurances that Romania will respect all macroeconomic targets agreed upon with the international lenders.
ECONOMY-Romania stands high changes of passing from the status of frontier market to the status of emerging market in the following 12-18 months, the President of the Asset and Fund Managers’ Association, Dragos Neacsu said on Friday. Representatives of the funds-managing industry claim there are several favourable indicators for Romania to get this status, among which a budget deficit below the 3% EU standard, one of the lowest indebtedness levels in the EU, of approximately 40%. To all this, we should add the recent improvement of Romania’s country rating by Standard&Poors.
EDUCATION– Romanian education minister, Mihnea Costoiu, who is on a visit to the US until June the 16th, has met with members of Congress. The focal points of the talks covered such issues as ways to boost bilateral cooperation in the field of education and research. The Romanian side has provided details on the most important initiatives in the field of research, such as the ELI-NP project in Magurele and the Danube- Danube Delta- Black Sea project. The Romanian minister has visited the NASA headquarters, where he held talks with the director of NASAs Goddard Space Flight Center, Christopher J. Scolese.
VISIT– The European Commission President, Jose Manuel Barroso is currently on a visit to Azerbaijan, the last leg of a tour of three Eastern Partnership states, which also included the Republic of Moldova, a former Soviet country with a Romanian speaking majority, and Georgia. We recall the two countries, the Republic of Moldova and Georgia, are to sign, on June 27th, the Association and Free Trade Agreements with the European Union, which they initialled at the Eastern Partnership Summit in Vilnius. In Chisinau, President Barroso signed four agreements under which the Republic of Moldova will benefit from 50 million euros in financial assistance in order to implement reforms. Jose Manuel Barroso is at his third mandate as head of the European Commission, which is due to end this year on October 31st.
UKRAINE-Ukrainian armoured vehicles crossed the border with Russia and have been intercepted by the border police, the Kremlin spokesperson Dmitri Peskov said on Friday. According to him, Russian President Vladimir Putin has demanded explanations from Kiev about this incident. On Thursday, Ukrainian President Petro Poroshenko denounced an alleged incursion by Russian tanks into Ukraine. The US and NATO have said that if the information provided by Kiev is confirmed, they will consider this an esclation of the conflict. In another move, Ukrainian Prime Minister Arseniy Yatseniuk has called on decision-makers in the energy sector to make ready for a cessation of Russian gas deliveries as of Monday, the deadline set by the Russian giant Gazprom for the payment of the debt accumulated by Kiev. The request has been made after negotiations between Kiev and Moscow on the price of natural gas deliveries ended in a failure. Gazprom, the largest natural gas world producer, provides a third of Europe’s natural gas needs. Half of this amount crosses Ukraine.
IRAQ-US President Barack Obama on Friday said he does not intend to send ground troops to Iraq, to counteract an offensive carried out by Sunni extremists, but he will be considering, in the coming days, several options to help the Iraqi security forces face the insurgents. Obama has however underlined that any military action will end up in a failure if the Iraqi leaders do not make a political effort. Also on Friday, Ayatollah Ali Al-Sistani, the highest Shiite religious authority in Iraq called on the population to fight Sunni insurgents who have recently conquered territories in the north and east of the country, killing hundreds of people. Jihad fighters continue to advance on Baghdad, after conquering several provinces. In recent days, by carrying out a flash-offensive, they have advanced from the northeast of the country towards the centre, coming closer to reaching their objective of setting up an Islamic state in the region. The Kurds have also taken advantage of the newly created situation, taking control of some abandoned military positions in the province of Kirkuk, which is rich in oil, a region that- according to them-should have long become part of their autonomous region.
NEW EU DIRECTIVE-All products purchased online or from shops should be returned within 14 days, according to a new EU Directive on Consumers’ Rights, which took effect on Friday. The whole set of regulations stipulated by the new Directive will be enforced all over the EU, Romania included. The European Commission has also published an implementation guide, to be used by the member states.
SPORTS– Romanian women’s sabre team on Thursday walked away with gold from the European fencing championship held in Strasbourg, France, following the finals they won against Russia, 38-34. The Romanian side made up of Ana-Maria Branza, Simona Pop, Maria Udrea and Simona Gherman, who also got bronze in the individual event, have defeated Ukraine in the quarters and Italy in the semis. Romania lost the finals of last year’s championship in Zagreb to Estonia.
