Radio România Internațional

Tag: state budget

  • December 11, 2017

    December 11, 2017

    KING MICHAEL I – The Parliament of Romania convenes in a solemn session today, in the presence of President Klaus Iohannis, to pay tribute to King Michael I. Princess Margareta, Custodian of the Crown, will also give an address. The former sovereign died on December 5, at 96 years of age, in Switzerland. Ever since, Romanians have been bringing flowers and candles at the Romanian and Swiss residences of the Royal House. The Kings body will be brought to the country on December 13. The authorities have declared a national mourning on December 14, 15 and 16. King Michael I, the last of Romanias 4 sovereigns, will be buried on Saturday, December 16, in Curtea de Arges, in the south of the country, where all Romanian royalty are interred. Many Romanian and foreign personalities are expected to attend the funerals. Historians agree that by having the pro-German Marshall Ion Antonescu arrested and having the country join the Allies, Michael I helped shorten WW2 by six months. Forced by the Communists to abdicate in 1947, the ex-King was only allowed to return to Romania after the fall of communism. He was one of the strongest supporters on Romanias joining NATO and the EU.




    BUDGET – The Parliament of Romania begins the debates on the 2018 state budget bill this week. The public budget is based on a 5.5% economic growth rate and earmarks higher funds for healthcare, education, agriculture and investments. The state budget and social security budget bills were distributed on Thursday to the MPs, who had until this morning to submit amendments. The proposals will be discussed by Parliaments specialised committees starting on Tuesday and will be finalised on Saturday. Debates on the amended texts will begin next Monday in Parliament, with the final vote scheduled on December 21.




    PROTESTS – Thousands of people took to the streets once again on Sunday night in Bucharest and other major cities, to protest the changes to the justice laws promoted by the ruling coalition made up of the Social Democratic Party and the Alliance of Liberals and Democrats. The protesters say the Power is attempting to have the judiciary subordinated to political circles and to stop the fight against corruption. They were joined by the leaders of the right-wing opposition, the president of the National Liberal Party Ludovic Orban, and the president of Save Romania Union Dan Barna, and by the former PM Dacian Ciolos, who accused the ruling coalition of attacking the very foundation of the rule of law. In response, the head of the Alliance of Liberals and Democrats in Romania and Senate Speaker Calin Popescu-Tariceanu says the revision of the laws regulating the judicial system is designed to strengthen the rule of law and the independence of magistrates.




    STATISTICS – Romanias trade deficit in the first 10 months of the year was 10.2 billion euros, nearly 2.3 billion euros more than in the corresponding period of 2016, the National Statistics Institute announced. According to the institution, in October, Romanias exports exceeded 5.7 billion euro, while imports reached 7 billion euros. As compared to October 2016, exports were 13.3% higher, and imports rose by 16.7%. The intra-EU trade accounted for 75.9% of Romanias total imports and exports in the first 10 months of the year.




    ISRAEL – While on a visit to Brussels today, the Israeli Prime Minister Benjamin Netanyahu hailed the US President Donald Trumps decision to recognise Jerusalem as the capital of Israel, and said he expected European countries to follow suit. Ahead of a meeting with EU foreign ministers, Netanyahu pointed out that Trumps decision, condemned by Palestinians and by the European governments, would make Middle East peace possible. He called on Palestinians to recognise Israel as a Jewish state and Jerusalem as its capital. Netanyahu had a meeting today with the EU foreign policy chief Federica Mogherini, who welcomed the first visit by an Isaraeli PM to the EU in 22 years. She emphasised that the bloc would respect the “international consensus on the status of Jerusalem and reiterated the Unions commitment to a two-state solution. The UN Secretary General, Antonio Guterres, says Trumps recognising Jerusalem as the capital of Israel threatens to compromise the Israel-Palestinian peace efforts. Street protests against the decision continued in Muslim countries, while the Arab League has called on the US Administration to reverse it, on grounds that it will escalate tensions in the region.




    HANDBALL – Romanias womens handball team is playing against the Czech Republic today, in the round of 16 of the World Championships in Germany. If they win, the Romanians will be facing next the winner of the match between the Netherlands and Japan. So far, France, Montenegro, Denmark and Sweden have qualified into the quarter-finals. Romania won the bronze medal in the previous championship, held in 2015, and is the only team to have taken part in all the 22 world final tournaments in the history of the competition.


    (translated by: Ana-Maria Popescu)

  • November 30, 2017

    November 30, 2017

    CELEBRATIONS – Romanians have todays started a four-day mini-holiday occasioned by St. Andrews’ Day, the patron saint of Romania, followed by Romania’s National Day, on December 1st. Most Romanians have chosen local destinations to spend these days off from work, their favourites being the resorts on the Prahova Valley, in the Southern Carpathians, Bukovina, in the north as well as spas and treatment resorts. The average budget allocated for this travels across the country stands at some 170 Euros per person. Romanians spending their mini-holiday abroad will however spend around 320 Euros per person. Celebrated by both the Romanians living in the country and abroad, December 1st, the National Day of Romania, is, as every year, a moment of joy. The highlight of the day is the traditional military parade in Bucharest. The approximately 3,500 Romanian military, accompanied by 50 aircraft and over 300 fighting vehicles will parade in Romania’s capital city. 300 other troops from allied and partner countries will also join the parade.




    VISAS – The Romanian Foreign Ministry recalls that, as of December 1st, Romanian citizens will be able to travel to Canada visa free, for periods of maximum 6 months, for tourist purposes. Those who intend to travel by plane will have to first get an Electronic Travel Authorization — eTA. The others will only have to have a valid passport. The Romanian Foreign Ministry hails the decision made by the Canadian authorities to liberalize the visa regime for the Romanian citizens, the outcome of years of diplomatic cooperation, also with the participation of the European Commission.




    ST. ANDREW’S DAY — Orthodox, Greek Catholic and Roman Catholic believers from all over the world, Romania included, are today celebrating St. Apostle Andrew. He is the first of Jesus Christ’s apostles who preached Christianity in the south of Romania. This way Saint Andrew is also considered the patron saint of the country. Saint Andrew preached in Dobruja and in today’s Ukrainian territory, in Great Scythia, and then in Byzantium. He then went to Greece and preached the Gospel, going up to Patras town where he died a martyr’s death. He was crucified on an X-shaped cross. Over 700 thousand Romanians named after St. Andrew celebrate their name day today.




    WARNING – The United States has urged all countries to sever economic and diplomatic ties with North Korea. Speaking at an emergency meeting of the U.N. Security Council to discuss North Korea’s latest missile launch, U.S. Ambassador to the United Nations, Nikki Haley warned Pyongyang that the regime will be “utterly destroyed” if a standoff over missile tests leads to war. She also said Pyongyang had brought the world closer to war with its latest test of a ballistic missile capable of striking the U.S. mainland. The Romanian Foreign Ministry has firmly condemned North Korea’s new nuclear test, saying it is a new serious threat to regional and international peace and security and a blatant violation of the UN Security Council resolutions.




    BUDGET – Romania’s state budget for next year is built on a 5.5% economic growth rate, down from this year’s 6.1% forecast, reads a Report on the macroeconomic situation and its projection for the 2019-2021 period, made public by the Finance Ministry. The domestic demand will be the engine for economic growth. The document also says that economic activity in all sectors will improve, while the budget deficit will stand at 2.97% of the GDP. The annual average inflation rate considered when drafting the 2018 budget is 3.1% and the exchange rate is 4.55 lei for one euro. Also, a 4.2% increase in the number of employees is expected, at the same time with a decrease in the unemployment rate, which is expected to stand at 3.9% at the end of next year.




    HANDBALL – As of December 1st, Germany will be hosting the World Women’s Handball Championship. Romania is part of Group A, alongside France, Spain, Slovenia, Angola and Paraguay. On December 2nd, in their first match, the Romanian squad will take on the team of Paraguay. At the previous World Championship, in 2015, Romania won bronze. The Romanian team is the only team to have participated in all the 22 editions of the World Championship held so far.


    (Translated by Elena Enache)






  • The state budget and salary increases

    The state budget and salary increases

    Finance Minister Viorel Stefan on Monday addressed a Chamber of Deputies plenary session, at the request of the National Liberal Party, in opposition. The Liberals wanted to see if the Social-Democratic Party can live up to the promises made in the election campaign, which included salary increases.



    The Liberals say state budget revenues for the first quarter are lower than the level reported in the corresponding period of last year, and below what the 2017 budget law had predicted. The National Liberal Party even called on Minister Stefan to step down, listing as the main reasons the Governments decision to cut public investment and the low rate of tax collection. Here is Liberal MP Bogdan Hutuca:



    Bogdan Hutuca: “Its been only three months since the Government took office, and the Romanian economy already finds itself against the wall, without the Government even beginning to honour its promises to society. And its not just the budget revenues that took a heavy blow. Expenses too are off the charts. As a result of poor budget policies in the first three months of the year, we now find ourselves in a terrible spot, where three categories of spending, personnel, procurement and social assistance, account for 85,31% of total expenditure.



    In turn, the interim Liberal president Raluca Turcan says revenues for January and February account for half the original estimate for the first three months of the year, making it impossible for the Government to cover its spending in March.



    Finance Minister Viorel Stefan has dismissed the Liberals point of view, arguing that the financial results for early 2017 are in line with the Governments economic growth target of 5,2%. Over 44,000 new jobs have been made available, and public confidence in the economy has also gone up, Viorel Stefan also says.



    Viorel Stefan: “The budget estimates for the first quarter of 2017 indicate a surplus of 0.2% of GDP in the consolidated budget. At the same time, positive results have been reported in terms of revenues from income taxes and social security contributions, as a result of the spike in public sector salaries, of a good VAT and excise collection rate in March, as well as of a 4.5% cut in procurement expenses as compared to the same period last year.



    Minister Viorel Stefan went on to say he is waiting for the budget execution figures for the first quarter, before estimating the impact of the unified pay scale law on the budget.



    Viorel Stefan: “Regarding the budgets capacity to absorb this impact, it is too early for me to tell. Im waiting for the figures for the first quarter to come out, so I may have a clearer image of the share of salary expenses the total salary fund will manage to cover in the second half of this year, and what the next budget periods will have to absorb.



    The unified pay scale law for public sector employees is due to come into force on July 1, after being debated and voted by Parliament.

  • Talks on the sustainability of the 2017 state budget

    Talks on the sustainability of the 2017 state budget

    Romania’s President, Klaus Iohannis, on Tuesday voiced concern after he held talks in Bucharest with Prime Minister Sorin Grindeanu and Finance Minister, Viorel Stefan, about the 2017 state and social security budgets, which had been submitted for promulgation. The president has said the budget bill is problematic, because the deficit might exceed 3% of the GDP. In his opinion, the draft budget is based on an overestimated level of revenues and on a high level of spending.



    Klaus Iohannis: “An enormous amount of money, some 54 billion lei, is earmarked for the so-called commitment appropriations, which will impact the country’s budgets for the following years. Together with my team, I will make a thorough analysis of these two public budgets. Naturally, we will also take into consideration the standpoints of the Prime Minister and of the Finance Minister, but, overall, I must admit I am worried.”



    In response, the leader of the Social Democratic Party, Liviu Dragnea, has said the 2017 state budget is balanced and sustainable. He has also said that some people just try to find reasons to delay the publication of the document in the Official Journal.



    Liviu Dragnea: “I believe in the sustainability of this budget. The commitment appropriations do have an impact on future budgets, in the sense of boosting investment. The budget is balanced and sustainable, and the requirements related to a 2% level of defence spending and a 3% limit for the budget deficit have been met. Actually, if the president has some fears, he should have them in a reasonable period of time, because we would like Romania to have a budget this year.”



    On Monday, the European Commission highlighted in its winter forecast that this year Romania’s budget deficit would stand at 3.6% of the GDP, which might trigger the excessive deficit procedure. The economic growth forecast for Romania has been improved to 4.4% of the GDP in 2017, but it is below the Government’s estimates of 5.2%. There are also experts who say, in their turn, that the deficit target will be exceeded, if the economic growth rate is lower than the figures estimated by the Government, as this means budget revenues will be significantly lower than those forecast by the cabinet. The former Finance Minister, Mircea Coşea, has said on Radio Romania that the 2017 budget is based on a debatable vision, namely it maintains consumption as the main engine for economic growth.



    And just as the international experience shows, we should be aware of the fact that if this engine is maintained on medium term, between three and five years, then the economy develops unhealthily, it is no longer based on investment, but on capital, modernisation, research and development, that is on everything that creates a high added value, Mircea Coşea says.


    (Translated by Diana Vijeu)



  • February 14, 2017 UPDATE

    February 14, 2017 UPDATE

    SENATE– In a plenary meeting on Tuesday, the Senate of Romania unanimously endorsed an emergency decree that repeals the controversial amendments to the criminal codes, which generated the current political crisis in Bucharest. The draft was sent to the Chamber of Deputies. Amendments can be submitted by Friday, and a plenary session of Parliament is due early next week to vote on the document. The Government building was once again picketed last night by over 1,500 protesters. For two weeks, hundreds of thousands of demonstrators in the country and abroad have been demanding the resignation of the government formed by the Social Democratic Party and the Alliance of Liberals and Democrats in Romania. They accuse the Cabinet of amending the criminal codes in order to exempt influential politicians and local and central administration officers from criminal liability. Concurrently, several hundreds of supporters of the Government request the resignation of President Klaus Iohannis, who they claimed has stepped out of his role as a mediator by joining in the anti-government protests. A referendum regarding the fight against corruption has been initiated by the President, and was approved on Monday by the Senate. Well have more on this after the news.



    BUDGET– The President of Romania, Klaus Iohannis, has voiced concern after discussing in Bucharest with PM Sorin Grindeanu and the Finance Minister, Viorel Stefan, about the state budget bill and the social security budget bill, sent to the President for promulgation. The head of state sees the 2017 state budget as problematic, because the budget deficit risks exceeding 3%. In his opinion, the budget bill relies on overestimated revenues and very high expenditure. In exchange, the president of the Social Democratic Party, Liviu Dragnea, said the 2017 state budget is sustainable and it should come into effect without any delays. On Monday, the European Commission estimated that this year Romanias budget deficit would account for 3.6% of the GDP, which might lead to the initiation of the excessive deficit procedure. On the other hand, the economic growth forecast for Romania was improved to 4.4%, which is nonetheless below the 5.2% rate estimated by the Government.



    JUSTICE – The High Court of Cassation and Justice in Bucharest has postponed for March 28 the trial of the case in which the Speaker of the Chamber of Deputies and head of the ruling Social Democratic Party, Liviu Dragnea, is charged with instigation of abuse of office. According to the National Anti-corruption Directorate, Dragnea ordered the fictitious employment of two members of his party with the Directorate General for Social Assistance and Child Protection in Teleorman County in the south. The two were paid from public funds although they were actually working for the Social Democratic Party alone. Last year Dragnea received a suspended two-year prison sentence, for having attempted in 2012 to rig a referendum to dismiss then-president Traian Basescu.



    FIGHTING EAGLES – The 500 US soldiers of the First Battalion “Fighting Eagles on Tuesday arrived at the Mihail Kogalniceanu airbase in south-eastern Romania. They are equipped with tanks, armoured vehicles and self-propelled mortars. During their nine-month stay in Romania, the US military will take part in the drills, planned jointly with the Romanian Ground Forces. In the opinion of the US ambassador to Bucharest, Hans Klemm, the presence of the US forces in Romania is a confirmation of the strong Strategic Partnership between the two countries. In turn, the Romanian foreign minister, Teodor Melescanu, has said that apart from taking part in missions, the decision to increase defence spending to 2% of the GDP, according to a NATO objective, is further proof of Romanias firm commitment towards its international partners. The deployment of US troops in Romania is meant to strengthen NATOs eastern flank.



    TENNIS – Romanias womens tennis team will play against Great Britain at home on April 22 and 23, in the play-offs for Fed Cup World Group II. The drawing was held in London on Tuesday. Last weekend Romania was defeated in Bucharest by Belgium, 3-1, in the first round of World Group II. The national team now has to play to keep its spot in the second group. Fed Cup is the most important international team competition in women’s tennis.(Translated by Ana-Maria Popescu and Diana Vijeu)

  • February 14, 2017

    February 14, 2017

    PARLIAMENT – In a plenary meeting today the Senate of Romania unanimously endorsed an emergency government decree that repeals the controversial amendments of the criminal codes, which generated the current political crisis in Bucharest. The draft is now sent to the Chamber of Deputies. The Government building was once again picketed last night by over 1,500 protesters. For two weeks, hundreds of thousands of demonstrators in the country and abroad have been demanding the resignation of the government formed by the Social Democratic Party and the Alliance of Liberals and Democrats in Romania. They accuse the Cabinet of amending the criminal codes in order to exempt influential politicians and local and central administration officers from criminal liability. Concurrently, several hundreds of supporters of the Government request the resignation of President Klaus Iohannis, who they claimed has stepped out of his role as a mediator by joining in the anti-government protests. A referendum regarding the fight against corruption has been initiated by the President, and was approved on Monday by the Senate.



    STATE BUDGET – The President of Romania, Klaus Iohannis, has voiced concern today, after discussing in Bucharest with PM Sorin Grindeanu and the Finance Minister, Viorel Ştefan, about the state budget bill and the social security budget bill, sent to the President for promulgation. The head of state sees the 2017 state budget as problematic, because the budget deficit risks exceeding 3%. In his opinion, the budget bill relies on overestimated revenues and very high expenditure. Yesterday the European Commission estimated that this year Romanias budget deficit would account for 3.6 of the GDP, which might lead to the initiation of the excessive deficit procedure. On the other hand, the economic growth forecast for Romania was improved to 4.4%, which is nonetheless below the 5.2% rate estimated by the Government.



    DEFENCE – Romania will continue to make a contribution to ensuring European and Euro-Atlantic security, in line with its commitments, and proof in this respect are both the allocation of 2% of the GDP to defence, and the American military presence in the country. The statement was made by the Foreign Minister, Teodor Meleşcanu, after the arrival of 500 American troops who will be stationed at the Mihail Kogălniceanu military base in south-eastern Romania for 9 months. The American military also bring the equipment required in order for them to take part, jointly with Romanian troops, in the military exercises planned for this year. The deployment of American troops is intended to strengthen NATOs eastern flank.



    CORRUPTION – The High Court of Cassation and Justice in Bucharest has today postponed for March 28 the trial of the case in which the Speaker of the Chamber of Deputies and head of the ruling Social Democratic Party, Liviu Dragnea, is charged with instigation of abuse of office. According to the National Anti-corruption Directorate, Dragnea ordered the fictitious employment of two members of his party with the Directorate General for Social Assistance and Child Protection in Teleorman County in the south. The two were paid from public funds although they were actually working for the Social Democratic Party alone. Last year Dragnea received a suspended two-year prison sentence, for having attempted in 2012 to rig a referendum to dismiss then-president Traian Băsescu.



    RESIGNATION – The US President Donald Trumps national security adviser Michael Flynn resigned last night over a scandal concerning his telephone contacts with the Russian Ambassador to the USA prior to Trumps inauguration. According to France Presse, in late December, as the Barack Obama administration was ordering sanctions against Russia for its presumed interference with the US elections, Michael Flynn was assuring the Russian Ambassador to Washington, Sergey Kislyak, that president-elect Donald Trump would be a lot less strict in this respect. Îin his resignation letter, Michael Flynn admits to having “inadvertently briefed vice-president elect Mike Pence and others with incomplete information regarding his phone calls with the Russian diplomat.



    TENNIS – Romanias womens tennis team will play against Great Britain at home on April 22 and 23, in the playoffs for Fed Cup World Group II. The drawing was held in London on Tuesday. Last weekend Romania was defeated in Bucharest by Belgium, 3-1, in the first round of World Group II. The national team now has to play to keep its spot in the second group. Fed Cup is the most important international team competition in women’s tennis.


    (translated by: Ana-Maria Popescu)

  • February 6, 2017 UPDATE

    February 6, 2017 UPDATE

    PROTESTS – For the 7th consecutive day Romanians are in the streets, demanding the resignation of the Grindeanu Cabinet, further to proposed changes in the countrys criminal law. The largest number of demonstrators was reported on Sunday night, when more than half a million protested in Bucharest and other cities against an emergency decree amending the Criminal Code, even after it had been repealed. The protesters carried signs with messages against the Government and the main party in the ruling coalition, the Social Democratic Party. Also on Sunday, for the first time since the start of these protests, a pro-governmental rally took place in front of the Presidency building, with some 2,000 people attending. Some of them returned on Monday as well. On the same day, a news release posted on the website of the Justice Ministry announced that for the time being the Government was giving up plans to amend the Criminal Code and the Code of Criminal Procedure. The Ministry explains that it is not interested in drafting a law on this topic and that at present it is centralising the rulings passed by the Constitutional Court with respect to the legislation in question, for subsequent analysis.



    NO-CONFIDENCE VOTE – The National Liberal Party and the Save Romania Union, in opposition, Monday requested a no-confidence vote against the Grindeanu Cabinet in Parliament. The vote will be held in Parliament on Wednesday. The no-confidence motion was tabled in the wake of a controversial decree the Government passed last week modifying the criminal legislation. The decree was repealed on Sunday amidst mass street protests. Interim Liberal leader Raluca Turcan said the move was unprecedented, labelling it as an act of defiance against the people. In turn, the Save Romania Union leader Nicusor Dan said the Government is pushing Romania further away from civilization and is fostering corruption. The Democratic Union of Ethnic Hungarians has also argued against the Government decree, while the Peoples Movement Party has also joined in the efforts of the Liberal Party and Save Romania Union. The Social Democratic Party and the Alliance of Liberals and Democrats are currently enjoying a steady majority in Parliament.



    2017 STATE BUDGET– Parliament Monday discussed the draft budget for 2017. On behalf of the ruling coalition made up of the Social-Democratic Party and the Alliance of Liberals and Democrats, Finance Minister Viorel Stefan told Parliament committees that the bill observes the main guidelines in the governing programme, such as cutting the VAT from 20% to 19%, and eliminating the income tax for pensions of up to 450 euros. The budget is based on an economic growth rate of 5.2% and a budget deficit of 3%, and will also allow Romania to fulfil its commitments at NATO level regarding the allocation of 2% of the countrys GDP to defence. The right-wing opposition on the other hand claims the figures regarding revenues underlying the budget are overestimated. Well revert to this topic after the news.



    EU – The European Commission believes Romania should make progress in its anti-corruption efforts, and not cancel out what has been achieved so far, the Vice-President of the European Commission Frans Timmermans told the Romanian Foreign Minister Teodor Meleşcanu in Brussels. Frans Timmermans told Meleşcanu that the Commission was ready to work with Romania and provide expertise for Bucharest to reach the goals of the Cooperation and Verification Mechanism, EC spokesperson Margaritis Schinas said for Radio Romania. The meeting between the Vice-President of the European Commission and Minister Teodor Meleşcanu, who is in Brussels to take part in the EU Foreign Affairs Council, was intended as an opportunity for the Romanian official to present the situation in Romania, after the Cabinet operated a number of judicial changes.


    (translated by: Ana-Maria Popescu)

  • February 1, 2017

    February 1, 2017

    CRIMINAL CODES – The members of the Higher Council of the Magistracy in Romania, meeting this morning, unanimously decided to ask for the opinion of the Constitutional Court on the existence of a conflict between powers, in the case of the adoption by the government of an emergency ordinance amending the Criminal Code and the Criminal Procedure Code. The meeting of the Higher Council of the Magistracy was also attended by Romanias President, Klaus Iohannis. The president said the judiciary is independent in Romania and the magistrates are outraged by the way in which the government dealt with such a sensitive issue as the amendment of the criminal law, by issuing an emergency ordinance at midnight, without having received an opinion from the Higher Council of the Magistracy. Protests against the emergency ordinance were resumed in Bucharest this morning. Last night, after the adoption of the emergency ordinance, thousands of people took to the streets in Bucharest and other major cities across the country to protest against the move taken by the government. The interim president of the National Liberal Party, Raluca Turcan, says that if the leftist cabinet made up of the Social Democratic Party-the Alliance of Liberals and Democrats does not step down, the Liberals will introduce a censure motion in Parliament today. Their move is also backed by the Save Romania Union. The President of the European Commission, Jean Claude Juncker, and First Vice-President Frans Timmermans have warned the government in Bucharest that the fight against corruption should continue and not be undermined. They draw attention to the fact that the irreversibility of the progress made in the fight against corruption is essential to allow the European Commission to take into consideration the gradual elimination of Romanias monitoring under the cooperation and verification mechanism.



    AmCham – The American Chamber of Commerce in Romania (AmCham) has expressed big disappointment about the legal grounds brought forth, the adoption procedure, the provisions and effects produced by the emergency ordinance amending the Criminal Codes in Romania. Adopting these emergency ordinances this way, the lack of transparency, in spite of the stands taken and recommendations made by the relevant institutions, mar the image of the cabinet which thus loses credibility and sends a strong signal of distrust and uncertainty both at domestic and international level, AmCham writes. According to the same source, the adopted emergency ordinances undermine the rule of law and infringe the fundamental principles of transparency, stability and predictability and thus Romania distances itself from European values and standards. Set up in 1993, AmCham is the most representative professional business association which is currently bringing together over 400 American, international and local companies. The overall value of their investments exceeds 20 billion dollars, generating some 250,000 jobs.



    STATE BUDGET – Romanian MPs get together today to discuss and approve the timetable of the debates on the 2017 draft budget. The Senate Speaker, Calin Popescu-Tariceanu, estimates the procedure might be completed within eight days. The document, adopted on Tuesday evening by the government is based on a 5.2% economic growth rate and a budget deficit of up to 3% of the GDP. The government estimates the inflation rate will stand below 1.4% and the unemployment rate at 4.3%. According to the finance minister, Viorel Stefan, special attention will be paid in the ensuing period of time to investments, healthcare, education and infrastructure.



    TAXES – New provisions recently introduced into the Fiscal Code by an emergency ordinance come into effect in Romania, on February 1. They eliminate 102 taxes and fees, the most well known being the radio and television licence fee and the tax on registering automobiles. Also in February, Romanians earning the minimum wage, almost 1.6 million citizens, will get increased salaries. Local public authority employees will get a 20% raise. A number of further measures come into effect on February 1, such as eliminating the ceiling for social and health contributions and taxation for real estate deals worth under 100,000 Euro.



    NAVY – The Romanian frigate King Ferdinand heads manoeuvres in the east of the Black Sea, to be attended, as of today, by over 2,800 military marines from the NATO member countries. The multinational exercise Sea Shield is the first of 50 large scale navy exercises planned by NATO this year. Attending the exercise are 16 ships, one submarine and 10 Romanian and allied aircraft. Vice Admiral Clive Johnstone, head of the Allied Maritime Command, will be attending the manoeuvres in Constanta, the largest Romanian port on the Black Sea. At the same time, it was announced in London that one of the most important Royal Navy ships will have its first operating mission in the Black Sea since the Cold War. Allied manoeuvres in the Black Sea take place almost three years since Russia annexed the Crimean Peninsula, in March 2014.



    TENNIS – Romanias best-placed tennis player, Simona Halep, WTA no. 4 has today defeated Croatias Ana Konjuh WTA no. 39, 6-4,7-6, in the second round of the St Petersburg tournament in Russia. Simona is the tournaments top-seed tennis player. In the next round she will meet the winner of the match between Daria Kasatkina, WTA no.27, and Natalia Vikhlyantseva WTA no. 115, both from Russia. The other representatives of Romania, Monica Niculescu WTA no. 35 and Irina Begu WTA no.28 got eliminated in the first round.( Translated by D. Vijeu)

  • January 26, 2017 UPDATE

    January 26, 2017 UPDATE

    BUDGET BILL – The PM of Romania, Sorin Grindeanu, has announced that the 2017 budget bill will be finalised in Fridays Government meeting and sent to Parliament for debate on the same day. The head of government says all the measures included in the governing programme of the leftist ruling alliance have been taken into account in drafting the bill. The largest amounts will be channelled into transportation, agriculture, healthcare and SMEs. Less money than in 2016 will go to education, energy, regional development, home affairs, foreign affairs, the Presidential Administration, the two chambers of Parliament and the Foreign Intelligence Service. The draft public budgets rely on an estimated 5.2% economic growth rate and a budget deficit put at 2.96% of the GDP. President Klaus Iohannis criticised the cuts in the national security budget. The head of state Thursday sent a letter to the PM, describing the budget cuts as not only unjustified, but also completely ill-timed.




    JUSTICE – The Romanian Justice Ministry announced on Thursday that on January 30 it would organise a public debate on the governments pardons bill and on the bill to amend the Criminal Code and Code of Criminal Procedure. On Wednesday, the Higher Council of Magistrates opposed the two bills. The Councils approval is not required for the bills to be endorsed. The Government intends to grant full pardon for all sentences of up to 5 years in prison, and for all fines ordered by courts. Pardons would not apply to repeat offenders and individuals sentenced under special laws. As for the draft amendment to the Criminal Code, it makes abuse of office an offence only in case it has resulted in damages of around 44,000 euros, and lowers the maximum sentence from 7 to 3 years in prison. The two bills have been harshly criticised by the Opposition in Parliament and by tens of thousands of people who took to the streets last weekend. President Klaus Iohannis joined in the protests. The Justice Minister, Florin Iordache, says the amendments are needed to solve the penitentiary overcrowding problem and to bring legislation in line with Constitutional Court rulings.




    BREXIT – The British Government Thursday made public the draft law it would send to Parliament in order to trigger the Brexit process. The draft law will be presented and discussed in Commons on January 31 and February 1, and then subject to vote on February 8, the Government said. The bill will be sent to the Lords, the upper body of the legislative, before being sent to the Queen. PM Theresa May promised to trigger Art. 50 of the Lisbon Treaty and initiate the process of Britains leaving the EU by the end of March.




    BORDER WALL – The President of Mexico Enrique Pena Nieto announced on Thursday that he cancelled the following weeks planned visit to the USA, where he was scheduled to have a meeting with his US counterpart, Donald Trump. The decision was made after Trump signed an order on the building of a wall on the Mexican border, to counter illegal migration into the USA, with Mexico to pay for the works after it has been completed. After the Mexican President announced his country would not pay for the Trump wall, the US President wrote that Nieto should cancel his visit to the US.


    (translated by: Ana-Maria Popescu)

  • The Week in Review 08-14.01 2017

    The Week in Review 08-14.01 2017

    Harsh winter in Romania



    The blizzard, snowfalls and ensuing cold hitting Romania this week have left many dead, thousands of people stranded and disrupted road, rail and air traffic. Schools and kindergartens have been shut down, and some villages have been cut off from the power grid. The most affected regions were the south and the east. Temperatures dropped to minus 32 degrees Celsius in central regions, with minus 20 degrees reported in Bucharest. The streets of the capital city were blocked by snow and public transportation has been severely affected. The situation on the Danube River has become dramatic, as the water flow has hit dangerously low levels. The authorities have temporarily shut down segments of the river, due to the drifting ice that might put ships in danger. The cold snap brought along historic lows in terms of temperature and historic highs in terms of energy consumption, with the countrys both natural gas and electricity supply systems working at full tilt. For this reason the Government passed an ordinance banning the electricity exports in emergency situations over the period January 16 – February 15.



    The state budget for 2017



    President Klaus Iohannis has met with Prime Minister Sorin Grindeanu and Finance Minister Viorel Stefan to discuss the draft budget for 2017. The meeting was held amidst concerns over the measures adopted last week by the Government, seen as a potential destabilizing factor for the budget. The Government has introduced salary increases and tax deductions for pensioners, also exempting them from paying health insurance contributions, which makes for a considerable financial effort. The President wanted to know how the Government was planning to deal with the effects of these measures. Klaus Iohannis believes the Government and Parliament must come up with a sustainable budget, providing for a deficit below 3% of the GDP and 2% allotted to defense. The budget for 2017 is being drawn up with utter responsibility, the members of the Government have said.



    The Government can issue emergency ordinances during Parliaments recess



    The Government can issue emergency ordinances during Parliaments recess, the Constitutional Court of Romania has ruled. The court rejected by unanimous vote the notification filed by the National Liberal Party, the Save Romania Union and the Peoples Movement Party whereby the three parties challenged the constitutionality of the Governments ability to issue such ordinances. Constitutional Court president Valer Dorneanu said the challenges to the regulations of the Chamber of Deputies were not for the Constitutional Court to rule. Opposition parties claim the law allowing the Government to pass emergency ordinances enables the Government to change organic laws through simple ordinances, which they believe goes against the Constitution. The Social-Democrat leader Liviu Dragnea said the oppositions notification was only an attempt to block the activity of the Government.



    CVM in place in 2017



    Romania has met all requirements to have the Cooperation and Verification Mechanism lifted this year, Justice Minister Florin Iordache said on Thursday, after meeting with the Deputy Secretary General of the European Commission, Paraskevi Michou.



    Florin Iordache: “The mechanism, which for years has been functional and has shown Romanias progress, proves that there are sufficient guarantees that the authorities working in the judicial field do their job properly.



    Paraskevi Michou said however that the CVM would not be lifted in 2017, despite Romanias progress over the past 10 years. Michou explained that lifting the mechanism depended solely on the efforts of the Government and Parliament to make the reforms reported so far sustainable and irreversible. The EU official said the CVM report for 2016 would be released shortly, and that the Commission was willing to cooperate closely with the authorities with a view to lifting the mechanism. The Cooperation and Verification Mechanism was introduced in 2007 as a prerequisite for Romanias accession to the European Union. It monitors the countrys reform of its judiciary and the fight against corruption and organized crime.



    High-ranking intelligence officer suspended



    The second most important man in the Romanian Intelligence Service, General Florian Coldea, has been suspended from office after his name was linked to a scandal involving the controversial businessman Sebastian Ghita, who is currently being investigated for several acts of corruption. The decision of the Romanian Intelligence Service to suspend Coldea came after Sebastian Ghita accused Coldea of illegal dealings. An international arrest warrant has been issued on his name. The Intelligence chief Eduard Hellvig has called for the setting up of a special committee to investigate Coldeas relationship with Ghita. Hellvig will also serve as First Deputy Director pending the inquiry.

  • December 18, 2015 UPDATE

    December 18, 2015 UPDATE

    ANTI-MISSILE SHIELD– The anti-missile shield in Deveselu is a confirmation of the extraordinary relationship that the US and Romania share, the US ambassador to Bucharest, Hans Klemm, said on Friday, when elements of the US missile defence system installed at the military base in Deveselu, in southern Romania, became operational. The facility in Deveselu, which includes a sophisticated radar system, ballistic missile interceptors and state-of-the-art communication equipment, will be a major module of a larger NATO security project. To mark the occasion, the Romanian Foreign Ministry held a special ceremony. Hans Klemm underlined the defensive character of the project and the fact that it was exclusively directed against threats coming from outside Europe. In turn, Romanian Defence Minister Mihnea Motoc said this is the most important Romanian-American project.



    ROMANIAN SUPPORT FOR MOLDOVA– Romania intends to grant financial support to the Republic of Moldova, a former Soviet state with a predominantly Romanian speaking population, if a government willing to make reforms is instated in Chishinau. The announcement was made in Brussels on Friday, at the end of the European Council, by Romanian Prime Minister Dacian Ciolos, who approached this issue with the EU High Representative for Foreign Affairs and Security Policy, Federica Mogherini. Prime Minister Dacian Ciolos has expressed Romanias readiness to work closely with the European Commission and the IMF to make sure that the financial assistance package reaches Chishinau in due time and that it will support a reform process, the fight against corruption, the efforts of rendering the administration more efficient and of creating more open economic and business environments. In another move, Dacian Ciolos has announced that early next year, he will pay visits to Germany, France and the Netherlands and will return to Brussels for thorough talks on the role Romania wants to play within the European Union. Gathered in Brussels, the European leaders on Thursday and Friday discussed such issues as the fight against terrorism, ways to manage the flow of migrants and the protection of Schengens borders. Prime Minister Dacian Ciolos has expressed Romanias solidarity with the EU in the migration file, but he made clear that Bucharest would also like to see that some conditions are met, such as strengthening the EUs capacity to control the migration flow and to ensure a functional Schengen area.



    BUDGET– Romanias President, Klaus Iohannis, on Friday promulgated the 2016 state budget and social securities laws, respectively, which were adopted by Parliament on Wednesday. Prime Minister Dacian Ciolos has given assurances that his cabinet will manage the money transparently, efficiently and with caution. In another move, 63% of company managers in Romania expect an improvement of the Romanian economic situation in 2016. A poll conducted in nine Central and East European countries shows almost all managers in Romania (98%) believe the black economy is a problem, with 39% of them saying that avoiding paying taxes by not declaring the real incomes is a major reason of concern. Also, business people in Romania take higher confidence in a positive evolution of the Euro than respondents from other Central and East-European countries.



    COMMEMORATION– Timisoara on Friday hosted a series of events marking 26 years since the flame of the Anti-Communist Revolution of December 1989 was kindled in that western Romanian city. Floral tributes were paid at the Metropolitan Cathedral, where tens of protesters were shot dead on December 18, 1989. That day goes down in history as the day when the army opened fire at people in Timisoara, a city where the martial law had been declared. Started on December 16, 1989, by the Timisoara inhabitants opposition to an abusive measure taken by the local authorities, the Revolution spread to the whole country at a fast pace. It culminated on December 22, when dictator Nicolae Ceausescu fled Bucharest, leaving power. Over 1,000 people died and some 3,400 others got injured between December 16 and 25, 1989. Romania was the only country in the former Eastern Bloc that violently overthrew the communist regime and executed its communist leaders. Romanias Parliament will meet in a solemn session on December 21, to mark 26 years since the 1989 Revolution.


    (Translated by: Diana Vijeu)

  • December 14, 2015

    December 14, 2015

    BUDGET – Romanias 2016 draft budget law is being discussed in Parliament as of today, without major changes on the bill tabled by the Government. The budget committees unanimously approved the Cabinets bill. Few amendments have been accepted, and they have no significant financial impact. The most heated debates concerned the budget of the Transport Ministry, where many MPs tried to support local infrastructure projects. The final vote on the budget is scheduled for Wednesday.



    EU – The Romanian Foreign Minister, Lazăr Comănescu, is taking part today in Brussels in a meeting of the EU foreign ministers. The agenda of talks includes the recent developments in the Eastern Partnership countries, further to the commitments undertaken at the Summit in Riga in May. The Eastern Partnership is part of the EUs European Neighbourhood Policy, and apart from the EU member countries it includes six eastern European states, Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine. The initiative was launched at the Eastern Partnership Summit in Prague, in May 2009. In Brussels, the participants will also discuss means to contribute to fighting terrorism, the support the EU can give to the political resolution and reform processes in Iraq, and the situation in Libya.



    COLECTIV – Another patient injured in the October 30 fire at the Colectiv nightclub in Bucharest died on Sunday. The woman was being treated in a hospital in Germany, where she had been transferred three weeks ago. The Colectiv fire death toll thus reached 61. At present, 21 patients are treated abroad, and 22 others in Romanian hospitals. The Health Ministry is currently analysing options for the construction of a new hospital for burns patients in Bucharest. Under a programme funded by the World Bank, three such units will be built, in Iasi (in the north-east), Târgu Mureş (centre) and Timişoara (west).



    FRANCE – The second round of the local elections in France, held on Sunday and seen as a major test ahead of the presidential ballot in 2017, was won by the right-of-centre opposition, headed by former president Nicolas Sarkozy, which won the election in 7 out of the 13 regions, including Paris, which had been a Socialist stronghold for 17 years. Second came Hollandes Socialists, with 5 regions. The surprise came from the far-right National Front party, headed by Marine Le Pen, which failed to win any region although after the first round it was a favourite in almost half of them. These results were prompted by higher voter turnout and by the fact that in two regions, where they had slim chances to win, the Socialist Party and its left-wing allies withdrew and urged their supporters to vote for the right, so as to prevent the National Front from winning.



    MOLDOVA – The interim president of the Liberal Democratic Party in the Republic of Moldova, the ex-PM Valeriu Streleţ, announced on Sunday night that his party would take part in the political negotiations for the establishment of a new parliamentary majority and a new government. The Liberal Democrats however will not give up the three conditions announced previously, namely the nomination of a non-affiliated prime minister, the elimination of political involvement in running state-owned institutions and the resignation of those involved in massive banking frauds. The Constitutional Court announced that the Parliament of Moldova may be dissolved unless a new Cabinet is validated by the end of January 2016.



    HANDBALL – Romanias womens handball team Sunday won a breath-taking match against world Champions Brazil, 25-22, in the eighth-finals of the World Championship in Denmark. Thanks to this surprising win, the Romanians booked their places at the Rio Olympics in 2016. In the quarter-finals, Romania will face Denmark on Wednesday. Romania remains the only country which has taken part in all the World Championship final tournaments since 1957. Its track record includes a gold medal in 1962, and two silver in 1973 and 2005.


    (translation by; Ana-Maria Popescu)

  • The Week in Review December 6-12

    The Week in Review December 6-12

    David Cameron pays a visit to Bucharest


    Bucharest and London boast important bilateral relations and the two sides want to strengthen and develop this partnership, said Romanias President Klaus Iohannis after the talks he held with the visiting British Prime Minister, David Cameron. The Romanian President said the military and security dimension of bilateral cooperation had a major role, in a complex context marked by challenges. The economic side of the relationship between Romania and Great Britain was also tackled during the talks.



    President Iohannis underlined that trade exchanges last year reached the highest level so far. In turn, the British PM Cameron said that Romanians have a valuable contribution to the development of Great Britain in important domain such as finances, science and medicine. However he highlighted what he called the pressure put by the free movement of labour force on the public services in the UK. In turn, the Romanian Prime Minister, Dacian Ciolos, said upon his meeting with his British counterpart, that most Romanians who work in Great Britain are paying their taxes.




    The state and social security budget


    For the new technocratic government in Bucharest led by Dacian Ciolos the state and social security budgets for 2016 are a major challenge. If parliamentary parties have generally agreed with the draft budget, the representatives of civil society expressed their discontent with being consulted rather late. Institutions such as the Fiscal Council also criticized certain infringements of the fiscal rules.



    According to the bill proposed by the Ciolos cabinet, the Education and Healthcare Ministries will receive additional money, alongside the Interior, Defense and European Funds Ministries. Less money will be channeled towards the Labour Ministry. The budget is based on a deficit of 3% of the GDP, the maximum threshold agreed upon with the EU, and on an economic growth rate of 4.1%. The two draft budgets have already been forwarded to Parliament, which, according to the established timetable, is to give its verdict next week.




    Important decisions by the Supreme Council of National Defense


    As many as 1,200 Romanian soldiers and over 1,500 gendarmes will participate in various NATO, EU, the OSCE and UN missions abroad in 2016. The decision was made by Romanias Supreme Defense Council, in a meeting chaired by president Klaus Iohannis and attended, for the first time, by the ministers of the new government. On the occasion, they approved the Guide of the National Strategy for the Countrys Defense for 2015- 2019 and the Intelligence Strategy of the Romanian Intelligence Service, valid for the same period of time. Also, according to the Presidential Administration, the members of the Supreme National Defense Council have ascertained that the line Romanian institutions applied the sanctions set up at international level between October 2014- September 2015.




    The anti-corruption fight continues


    The National Anti-Corruption Directorate (DNA) has registered the highest credibility rate among the population thanks to its relentless fight against corruption of the last years. This week the DNA has opened a new case related to illegal retrocession, a common crime, that brought huge revenues to those involved in the case, among whom two public figures: journalist Dan Andronic, the director of the well known post-Communist daily paper, “Evenimentul Zilei, and the controversial businessman Remus Truica. In the early 2000, the latter was the head of the chancellery of the then PM Adrian Nastase, himself sentenced to prison on corruption charges. Prosecutors accuse the abovementioned of several acts of corruption and of setting up a criminal group to deal in illegal retrocession.



    The estimated damage in this case exceeds 136 million euros. In another DNA case, the High Court of Cassation and Justice has decided this week that the Liberal MPs Ioan Oltean, a veteran of post-Communist politics and Catalin Teodorescu, alongside the former head of the National Authority for the Restitution of Property, Crinuta Dumitrean, should be subject to legal restrictions pending trial. They are being investigated in a case related to illegal compensations worth more than 20 million euros, granted to a businessman by the National Authority for the Restitution of Property.




    Demography on a downward trend


    In 2014, Romanias population dropped under the threshold of 20 million – a level similar to that reported in mid 1960s. According to the National Institute for Statistics, last year Romanias population dropped by 80 thousand people, let alone the 40 thousand citizens who migrated. Such a great number of people is equivalent to the disappearance of two small towns every year. The president of the National Institute for Statistics, Tudorel Andrei, claims that until 2013 the number of population was reduced especially due to migration. In the years to come the main cause of the demographic downward trend is expected to be the low birthrate.


    (Translated by: Lacramioara Simion; Edited by: Diana Vijeu)

  • December 11, 2015

    December 11, 2015

    BUDGET LAW – In Bucharest, the expert committees in Parliament are discussing today the draft budget for next year. The talks will continue during the weekend, and the final vote in the Parliament plenum is scheduled for Wednesday. The Social Democratic Party, in power, voiced satisfaction with the bill, which they say concurs with the previous governments views on fiscal relaxation and economic growth. In turn, the Liberals in opposition say the overall budget structure is reasonable, and slight amendments are possible during the debates in the Parliament committees, although no major changes are expected.



    INFLATION – In Romania, the annual inflation rate remained negative in November, although it rose from minus 1.6% in October to minus 1.1%, according to data released today by the National Statistics Institute. Last month, the National Bank of Romania lowered by 0.4% its annual inflation forecast, to 0.7% negative, and for next year the inflation forecast was revised up to 1.1%. The central bank governor, Mugur Isărescu, mentioned that the negative inflation rate was prompted by the lowering of the VAT for foodstuffs to 9% this summer.



    DEMOGRAPHIC TRENDS – The population of Romania dropped in 2014 below the 20-million threshold, a level similar to the one reported in 1966. According to the National Statistics Institute, until 2013 the number of people fell particularly as a result of labour migration, whereas last year the main cause was the wide gap between the birth and death rates. If this trend continues, in 30-40 years the population of Romania will go down to around 14 million.



    EU DIRECTIVE – Romania must fully implement the Directive on Deposit Guarantee Schemes, under which bank clients will benefit from quicker disbursements and a better safety mechanism. The deadline for transposing these provisions in the national legislation was July, and the European Commission has officially requested Romania to conform. Ten EU member countries are yet to introduce the European Directive in their national legislation, and unless they take appropriate measures within two months, the Commission may decide to notify the EU Court of Justice.



    BSEC – Bucharest is hosting today the 33rd meeting of the foreign affairs ministers of the Organisation of the Black Sea Economic Cooperation countries. Romania, a founding member of the Organisation, held the rotating presidency for the 5th time. The meeting is chaired by the Romanian Foreign Minister, Lazăr Comănescu, who will stress the progress made in terms of economic cooperation in the Black Sea region during Romanias six-month presidency. According to a news release issued by the Foreign Ministry, Comănescu will hand over the presidency to the Russian Federation, which will head the organisation in the first half of 2016.



    NATO EXERCISE – The Romanian Naval Forces frigate “Regina Maria is taking part, alongside vessels from the US, Turkey and Ukraine, in a Black Sea exercise scheduled to conclude on December 16. The exercise is part of the NATO measures designed to enhance confidence among the allies, reads a news release issued by the Naval Forces Command. Regina Maria, with a 220-strong crew, the American destroyer USS Ross, a Turkish frigate and a Ukrainian auxiliary ship will conduct exercises to prepare response to multiple air, naval and submarine threats, to impose sea embargoes and monitor naval transportation. The exercise takes place at a time when the security situation at the Black Sea requires enhanced interoperability between the Romanian Naval Forces and its partners.



    HANDBALL – Romanias womens handball team is playing against Russia today, in the last game in Group D at the handball World Championship in Denmark. Although defeated in its last two games by the most valuable opponents so far, Spain and Norway, the defending Olympic and European champions, the Romanians moved forward into the eighth-finals, after having outperformed the national teams of Puerto Rico and Kazakhstan. In the next stage, Romania is to play on Monday against the winner of the match between France and Brazil. Romania is the only country to have taken part in all the World Championship final tournaments since 1957, with three medals won so far, the gold in 1962 and silver in 1973 and 2005.


    (translation by: Ana-Maria Popescu)

  • Romania’s 2016 Budget

    Romania’s 2016 Budget

    On Wednesday, the Romanian Government passed the bills on the state budget and social security budget for 2016. The bills were submitted to Parliament for debate and endorsement under an emergency procedure. According to Prime Minister Dacian Ciolos, the budget was built within certain constraints imposed by the legislation adopted by Parliament, which triggered an increase in expenditure. He has called on Parliament to take the matter seriously and to be reasonable when discussing the budget, stressing that those who wish to bring amendments should do that by also indicating the source of financing.



    Health, education, defense and investment are priorities in 2016, and therefore will get the biggest shares of the budget next year, while the Ministries of Labor and Transport will get less. The budget was built on the basis of a deficit of maximum 3% of the GDP, as established at EU level, and an economic growth rate estimated at 4.1%. Revenues to the budget will be by 800 million Euros higher next year while expenditures will grow by 2.9 billion Euros, to also cover the fiscal relaxation measures already approved by Parliament.



    The budget also provides for funds to increase the pension point by 5% and also for all the salary increases already approved this year, but not for additional ones. The minimum salary will not grow either, at least for the time being, until an impact study is conducted. This provision and the fact that the local communities will not get the requested amounts either, is a matter of discontent for the Social Democrats, who, nevertheless, have stated they will support the budget bill.



    Leader of the Social Democratic Party, Liviu Dragnea: “Theoretically speaking, we have no reason to vote against, but we are trying to find solutions for this budget, once turned into law, to be better than the bill proposed by the Government. This is Parliament’s role. It is true that the amounts earmarked to balance the local budgets will be lower than the wishes and needs of the local communities and we will see whether we are able to find, in Parliament, solutions to grow these amounts.”



    In turn, the co-president of the National Liberal Party, Alina Gorghiu, said: “The conditions that the National Liberal Party laid down have been met by the Ciolos Government. We are talking about investments, which have grown from 33 to 37 billion lei. Public investments are those that generate added value to the economy and create jobs. We also have more money for education, health and also for the army.”



    Debates on the 2016 draft budget start on Friday, in Parliament’s expert committees, and the final voting will be held in Parliament’s plenary sitting next Wednesday.



    (Translated by Mihaela Ignatescu / Edited by Elena Enache)