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Tag: The Week

  • The Week in Review, January 13-19

    The Week in Review, January 13-19

    Romania presents in Strasbourg the priorities of its term at the helm of the Council of the EU


    Two weeks after Romania took over, for the first time, the Presidency of the Council of the EU, Prime Minister Viorica Dancila went to Strasbourg, to present the priorities of Romania’s six-month term. Brexit and negotiations over the 2021-2027 EU budget are among the most complicated files that Romania will have to manage in the coming period. In all, 257 files will be debated in the first months, as elections for the European Parliament are due in May.



    The focal point of the Romanian agenda is cohesion, as the Prime Minister stressed: “Political cohesion, illustrated by the need for unity of the member states, economic and territorial cohesion, with a view to reducing development gaps between the member states and the regions, and social cohesion, aimed to preserve the four freedoms of the EU single market.”



    Governance of the Energy Union, a coherent management of migration, through cooperation between the origin and the transit countries, as well as enhancing the responsibilities of the European Public Prosecutor’s Office are among the priorities of the Romanian term, alongside more attention to be paid to the Western Balkans. This week, the Romanian Presidency of the EU Council has concluded its first file, regarding the protection of personal data. The new rules provide for fines applied in case of abusive use, by political parties, of personal data, with the aim of influencing voters’ behaviour.




    Romania’s stand on the situation in Great Britain


    The Romanian Government hopes that London will soon come up with concrete solutions, so that Britain’s withdrawal from the EU will not affect either citizens or the business environment. Bucharest believes that a deal would provide a solid legal foundation, which would contain the negative effects generated by Brexit. Due to take effect on March 29th, Britain’s exit would take place during the Romanian Presidency of the Council of the EU. Romania’s President Klaus Iohannis has stated that British Parliament’s decision on the Brexit deal is regrettable, also stressing that the procedures that might still lead to the approval of a deal have not been exhausted. More than 400,000 Romanians are living in the UK, forming the largest community of foreigners in that country. After the defeat sustained on Tuesday by the British PM Theresa May in the House of Commons, which rejected the Brexit deal, negotiated with the EU, the Conservative Cabinet survived on Wednesday night a no-confidence motion filed by the Labour opposition, and, on Monday, Theresa May is to present a new plan, which will be debated and voted upon, on January 29th.




    The Pope will make a visit to Romania


    Pope Francis will make a 3-day apostolic visit to Romania from 31st March to 2nd June, at the invitation of president Klaus Iohannis and the Catholic Church in this country, official sources from Bucharest and the Vatican have announced. Under the motto “Let’s Walk Together”, the Pontiff will travel to the capital Bucharest, Iasi, the biggest city in the east of the country and home to a sizeable Roman-Catholic community, Blaj, in the centre, the spiritual capital of the Romanian Greek-Catholics, and the Marian shrine in Sumuleu Ciuc, in the centre, in an area with a majority ethnic Hungarian population. The Pope has always urged for the rejection of egoism and for the centrality of the common good. He comes to Romania to foster unity and confirm the faith, according to the press office of the Holy See. In 1999, Romania became the first majority Orthodox country in history to receive the visit of a pope.




    Romanian Culture Day


    On the 15th of January, the birth date of Romania’s greatest poet Mihai Eminescu, National Culture Day was celebrated in Romania. This is the 9th consecutive year that the Romanian Academy, the Writers’ Union and the local and central authorities staged numerous events in Romania and the European capitals. A festive event was held at the Romanian Athenaeum attended by president Klaus Iohannis, academics, the Patriarch of the Romanian Orthodox Church and the education and culture ministers. The president of the Romanian Academy Ioan-Aurel Pop said in his address that there are several fundamental characteristics that belong to the Romanian national culture. Thus, the national culture can only be conceived of in its world and European context. It also has a historical dimension without which it cannot exist. The head of state recalled that 2019 is the year of the Romanian-French cultural season, of the George Enescu Festival and the Europalia Festival, all of which are opportunities to promote Romania as a place of artistic achievement. In a separate event, the Romanian Academy has launched an app that allows access to the entire work of Mihai Eminescu and which is available free of charge to smart phone users.



  • The Week in Review, August 10-17

    The Week in Review, August 10-17

    Clashes at the rally of Romanian expats in Bucharest


    Over 450 people, including 35 gendarmes, received medical treatment further to the clashes on Friday night at the rally in Victoriei Square, a gendarme spokesperson told a press conference on Saturday. Some 100,000 people gathered on Friday in front of the Government headquarters in Bucharest, at a rally of Romanian expats, joined by many locals. Also on Friday, in several cities in the country, tens of thousands of people took to the streets to voice their solidarity with the protest of diaspora members, chanting anti-government slogans. The protesters, disgruntled with the current government formed by the Social Democratic Party and the Alliance of Liberals and Democrats, demanded the resignation of the cabinet and early elections. There were clashes between the protesters and the gendarmes, and the riot police used tear gas and water cannons to disperse the crowd. Police reported the presence of groups of provocateurs in front of the Government headquarters. The gendarmes moved in after some of their colleagues were attacked. The President of the country Klaus Iohannis firmly condemned the brutal police intervention against the protesters in Victoriei Square and said the Interior Minister, Carmen Dan, must immediately present explanations for how the ministry handled the events. Opposition leaders also criticised the response of riot police, and asked for the resignation of the Interior Minister. Previously, politicians in Power had said the Opposition should take responsibility for the rally.



    Inflation likely to drop in 3rd quarter, National Bank says


    The National Bank of Romania lowered its year-end inflation forecast from 3.6% to 3.5%. Estimates for 2019 were also cut, from 3% to 2.7%, Governor Mugur Isarescu announced. He explained that the inflation rate might get back into the range targeted by the central bank, unless new shocks appear, whose effects cannot be influenced by the monetary policy. On the other hand, Romania’s economic growth rate forecast by the National Bank for this year is nearly 4%, as against 7% in 2017. Mugur Isarescu believes it is better for the economy to grow steadily on long-term, in keeping with its potential. With higher economic growth rates come more investments, higher productivity and better workforce, the central bank chief explained.



    Foreign Ministry and Defence Ministry present reports


    After the recent presentation by PM Viorica Dancila of the performance of her Cabinet six months into its term in office, each ministry presented a report on its activity so far and on its projects for the near future. On Tuesday, the Foreign Minister Teodor Melescanu and Defence Minister Mihai Fifor held a press conference to this end. In the field of diplomacy, one widely debated topic is the prospective relocation of Romania’s embassy in Israel from Tel Aviv to Jerusalem. According to Teodor Melescanu, an analysis of the situation has been completed and will soon be sent to the Presidency, the Prime Minister and Parliament. As regards Romania’s relations with Russia, he said bilateral dialogue must be based on the interests of both parties and comply with the principles and standards of international law. The Foreign Ministry also said that preparations for Romania’s taking over the rotating presidency of the Council of the EU in the first half of 2019 were going as planned. As a NATO member, one of Bucharest’s priorities is to strengthen its position within this organization. The latest NATO Summit approved Romania’s proposal to host a 3-star command centre. A special meeting was also organized, devoted to security in the Black Sea area, and Romania secured a considerable increase of NATO member naval forces in the region. Also in the defence sector, Mihai Fifor added that efforts continued to upgrade the equipment of the Romanian Army, for which 2% of the GDP has been earmarked. Some of the achievements of the first 6 months include the procurement of American missile systems and the start of procurement procedures for 4 multirole corvettes. The main challenge facing the Defence Ministry, Mihai Fifor also said, is the development of the Cantacuzino Military Healthcare Institute, whose situation has deteriorated in recent years. Authorities hope that its transfer under the authority of the Defence Ministry last December will be a new start for the institution.



    Proactive environmental policies


    The Romanian Minister of the Environment Minister Gratiela Gavrilescu has announced several regional meetings with the general public to discuss waste management topics. The Minister has also added that 9,000 households without electricity will receive photovoltaic systems under a project called “The Centennial of Light.” Authorities want electricity to be supplied to every single household in Romania, and the installation of the first PV systems might begin as early as this year. Another project run by the Ministry is the launch of a scrapping programme for home appliances. Gratiela Gavrilescu says the ministry has sufficient funding to initiate this programme. The exact worth of the vouchers to be awarded under this programme is to be decided on and made public by mid-August. On the other hand, in its meeting scheduled for August 20, the Government will discuss the proposed issue of 30,000 additional vouchers for the 2018 edition of the car scrapping programme. So far 21,000 vehicles have been purchased under this programme.



    Romanian teams playing in Europa League


    3 Romanian football sides played on Thursday the first leg of the 3rd preliminary round of Europa League. Vice-champions FCSB (formerly known as Steaua Bucharest) drew, 0-0, against the Croatian team Hajduk Split. Kicked out of the Champions League by the Swedish side Malmo FF, Romanian champions CFR Cluj won easily against the Armenian team Alashkert, 2-0. In turn, the winners of Romania’s Cup, CSU Craiova, were defeated 3-1 by RB Leipzig of Germany. The return leg is scheduled for next week.

  • November 12-19

    November 12-19

    Romania sees record economic growth


    Romania’s economic growth in the first 9 months of this year stood at 4.9% and also mirrored in the citizens’ living standards, Romanian Finance Minister Anca Dragu said on Thursday. She also said that this growth was the biggest in the EU and that the main economic indicators increased significantly as compared to the same period of 2015. Also, according to the head of the Fiscal Council, Ionut Dumitru, in 2017 Romania will have the smallest fiscal revenues in its history, following the decrease in taxes and duties stipulated by the new Fiscal Code. Ionut Dumitru has warned, however, that a further decrease in the level of taxes and duties was likely to cause the state’s dissolution. He has also warned over the risk of the 3% budget deficit target being exceeded.




    The bill on the elimination of 102 taxes challenged at the Constitutional Court


    Romanian president Klaus Iohannis challenged at the Constitutional Court the bill on the elimination of 102 taxes passed by Parliament in October. Initiated by the Social Democratic Party, the bill stipulates the elimination, as of January 1st 2017, of the environment stamp duty for vehicles, the tax for issuing provisional passports, the radio and TV licence fee, and the fee for issuing fiscal records, among others. In a note sent to the Courts magistrates, Iohannis says the bill departs from constitutional norms related to the principle of the separation of powers and legality, the governments relationship with Parliament and the role of the executive. The initiator of the law, Social Democratic leader Liviu Dragnea has described president Iohannis decision to challenge the constitutionality of the law as an exclusively political one. For their part, the Liberals agree with most of the provisions of the bill but argue that the environment stamp duty and the radio and TV licence fee need to be maintained. The elimination of the latter has sparked heated debates of late. Its supporters say that doing away with the fee and funding the public broadcasting services exclusively from the state budget could lead to their political subordination. The Court has set December 14th as the date for giving the verdict on the presidents challenge.




    PM Dacian Ciolos presents a government’s activity report after one year of mandate


    A year after the installation of his Cabinet, the technocratic PM Dacian Ciolos says that the government’s main objective has been to ensure political, economic and social stability in an election year. It paid special attention to the healthcare and education fields, and managed to unblock several infrastructure projects. The Government focused on social policies and on creating jobs. On the other hand, PM Ciolos said that relationship between the public administration and the political system needed to be clarified.




    Reactions after the presidential election in the neighbouring Moldova


    Romanian President Klaus Iohannis believes that the neighbouring Republic of Moldova, a former Soviet republic with a majority Romanian-speaking population, should keep making efforts to get closer to Europe while its newly-elected president should proof wise and balanced in his new capacity. President Iohannis’s statement comes after the recent victory in the Moldovan presidential elections of the pro-Russian Socialist Igor Dodon against Maia Sandu, a pro-European reformer. Romania needs to redefine its relationship with Moldova, Iohannis has also said, in the sense that Bucharest will have to preserve and protect the special character of this relationship, by supporting Moldovan institutions and not individuals. In turn, Romanian Foreign Minister Lazar Comanescu who has attended, this week, the Foreign Affairs Council meeting in Brussels, has pleaded for Moldova’s continuing the promised reforms.




    Arrest orders have been issued in corruption cases


    Rulings have been issued this past week in several corruption cases. The former euro MP Adrian Severin received a definitive sentence to 4 years in prison for bribe taking and influence peddling. A former foreign minister and ex-president of the OSCE Parliamentary Assembly, Adrian Severin was accused of having accepted to receive 100 thousand euros annually from several journalists with the Sunday Times British publication, who were making an undercover investigation, in exchange for proposing amendments to the expert committees of the European Parliament. In another development, on Wednesday, the president of the Permanent Electoral Authority in Romania, Ana Maria Pătru, was remanded into custody being charged with influence peddling and money laundering. Indicted for having favoured a company from which the Authority bought computer software, Ana Maria Pătru announced her resignation. Also this past week, Adrian Sanda, the former head of the Secretariat for the recognition of the merits of the people who fought against the Communist regime instated in Romania between 1945-1989, was arrested for 29 days in a case related to the illegal granting of the title of fighter in the 1989 revolution.


    (Translated by Elena Enache)







  • The Week in Review August 10-14

    The Week in Review August 10-14

    Romania is wrestling with the effects of a prolonged drought


    The harsh drought that hit Romania this summer has taken its toll on both the crops and the naval traffic on the Romanian sector of the Danube. According to representatives of the farmers, the excessive heat and the lack of rainfalls in the past two months have wreaked havoc on 900 thousand hectares of farmland, compromising more than a quarter of the grain crops this year. The cultures of corn, soy, wheat, rape, sunflower as well as fruit and vegetables are bearing the brunt of the heavy drought. Farmers have forecast over two billion euros in losses, a sum that could rise if temperatures remain high and there is no rain. Romanias irrigation system, which has been destroyed almost 90%, is in sore need of restoration, being now able to irrigate only 300 thousand hectares as compared to 1989, when it covered a surface of 3.3 million hectares. The Ministry of Agriculture say it needs one billion euros to have a nationwide functional irrigation system and hopes to do it by means of European funds. On August 17th representatives of Romanias main agricultural producers are to convene at the Ministry of Agriculture to assess the drought impact over the crops and come up with measures to diminish the damage.


    The drought has equally affected naval circulation on the Danube, whose low discharge has prompted the authorities to restrict circulation on the Romanian sector of the river. Ships must drastically reduce speed particularly in the dangerous areas. Bottlenecks on some areas have caused significant delays in the traffic, while in the Danube Delta scores of canals have dried up and hundreds of fish died due to the low water level and high temperatures. Unfortunately the situation is not going to improve soon and hydrologists have forecast that water levels will continue to go down in the next week as well.



    Annual inflation has hit a new all-time low


    Annual inflation in Romania was kept at minus 1.7% in July and reached an all-time low in the past 25 years, data published by the National Statistics Institute (the INS) have revealed. Consumption, the real engine of Romanias economic growth, was boosted by the low prices in food produce in July, when prices went down by 1.17% as against the previous month and with 7.25% as compared to July last year. Prices in non-food products went up in July as compared to June by 0.48% and 1.26% as compared to July 2014. The INS data have revealed significant price-cuts in medicine and medical items, while gas prices saw a significant increase. Services fees went up in July as well by 0.09% as compared to June and 2.20% as against the similar month of last year.


    Talks on the new Fiscal Code and a new salary law in the public sector


    Romanian Prime Minister Victor Ponta has reiterated that the fiscal relaxation measures stipulated in the new Fiscal Code are sustainable and the impact of their enforcement can be offset by both the economic growth and a more effective tax collection. The Romanian Prime Minister went on to say that unless the new Code gets Parliament approval, public sector employees will not benefit from a new salary law. In his opinion, the present dispute over the new Code is purely political. Ponta has thus responded the criticism against the sustainability of fiscal relaxation measures from the president, from the Central Bank governor and from representatives of Romanias international lenders, such as the IMF and the World Bank. They pointed out that the implementation of such measures could trigger serious macroeconomic imbalances. The new Fiscal Code, which president Klaus Iohannis sent back to Parliament for reanalysis on July 17th, will be re-discussed in a special Parliament session later this month. Before this session, Parliamentary parties accepted, following heated debates, to hold talks on the new Code.



    A surprising announcement from Romanias Royal House


    King Mihai has withdrawn the title of Prince of Romania with the style of ‘Royal Highness from his grandson Nicolae removing him from the line of succession, sources with the royal family announced in Bucharest on Monday. The former Romanian sovereign had bestowed upon Nicolae these titles back in 2010. In a communiqué Nicolae said he acknowledged the kings decision explaining that the positions he held imposed on him a way of life, which he described as difficult to accept. Nicolae, 30, was the third in line to the crown, after princess Margareta and Princess Elena (his mother). Forced by the communists to abdicate in 1947 king Mihai, 93, left Romania and settled in Switzerland. He returned to Romania after the anti-communist revolution of 1989.



    European funds for refugees and securing Romanias borders


    The European Commission has this week approved 2.4 billion euros for the period between 2014 – 2020 to help 19 countries, Romania included, to secure their borders and improve their capabilities of receiving refugees. The main beneficiaries of this project are Italy and Greece, countries, which since the beginning of this year have been facing an inflow of asylum-seekers particularly from Middle East and Africa. Roughly 100 million euros have been earmarked for Romania. The European countries facing most of this migration wave have asked that the other Union members may share the burden. The European Commission has again appealed to all member states to accept the redistribution of the refugees. According to the latest report by the UN Refugee Agency over 224 thousand immigrants have made it to Europe via the Mediterranean since the beginning of the year.

  • The Week in Review 19-25 May

    The Week in Review 19-25 May

    US Vice-President Joe Biden travels to Bucharest



    Three months ago, before Russia’s annexation of Crimea, NATO Secretary General Anders Fogh Rasmussen’s visit to Bucharest, soon to be followed by that of the US Vice-President Joe Biden, might have been regarded as a mere coincidence. But now, against the backdrop of the events in the neighbouring Ukraine, the two officials’ coming to Bucharest, within such a short period of time, is clear evidence of the military support that Romania enjoys from its Western allies, against a troubled regional background. This week, the US Vice-President has reasserted the statement made by the NATO official late last week: Romania does not stand alone in the face of the danger posed by Russia, whose illegitimate territorial claims risk destabilising the region. Also, Biden has hailed Romania’s decision to increase its defence budget to reach 2% of the GDP in 2017.



    However, the US official has not talked about security alone. The fight against corruption, strengthening the rule of law and the opportunities in the energy field were also addressed by the second most important man at the White House. In turn, Romanian President Traian Basescu hailed the US’s response to Crimea’s annexation, which came fast and clear. Upsizing the US air, sea and ground forces in the Black Sea area, including on Romanian soil, is nothing but a natural reaction to the moves that unpredictable Russia is now making on the regions’ map, said president Basescu. At the meeting with Biden, Romanian Prime Minister Victor Ponta stressed the need for a visa waiver program for the Romanian citizens who wish to travel to the US.



    The end of the campaign for the European Parliament elections



    This week has been the last of the campaign for the European Parliament elections due on Sunday, May 25th. Analysts have voiced their disappointment with what they have termed as a “dull” campaign, dominated by trivialities instead of relevant topics. On Sunday, Romania’s over 18 million eligible voters will have to choose from among the representatives of 15 parties and alliances and 8 independent candidates, who will be fighting for the 32 seats Romania is entitled to in the European Parliament. As polls have shown this week, voter turnout will not exceed 30%, which is rather low, but does reflect a common trend across the European Union. All in all, the future European Parliament, whose decision-making power within the EU is growing, will number 751 members.



    Romania’s Parliament debates motion of censure



    A motion of censure tabled by the Liberals in opposition has been read in the Parliament of Romania. The motion, forwarded last week, criticises the government made up of the Social Democratic Party, the National Union for the Progress of Romania, the Conservative Party and the Democratic Union of Ethnic Hungarians in Romania, for postponing a number of fiscal relaxation measures. These include the tax exemption for reinvested profits and a 5% reduction in social security contributions. In response, the minister delegate for budget Liviu Voinea announced the social security payments would be slashed starting July the 1st. Parliament will vote on the motion on Monday.



    New cases investigated by the National Anticorruption Directorate



    The National Anticorruption Directorate seems determined to make up for the time wasted over the past 25 years in the fight against this scourge affecting the Romanian administration. Businessman Dan Adamescu, the second-richest Romanian according to the latest standings, is prosecuted for bribe-giving. Adamescu allegedly offered money to magistrates with the Bucharest Tribunal in exchange for some of his businesses being declared insolvent. Also this week, three physicians, two chemists and four company officials have been arrested for their involvement in cases of fraud involving forged prescriptions for cancer drugs.



    Tax exemptions



    Twenty-seven charges and para-fiscal tariffs have been scrapped or merged by the government of Romania, while another 65 will be regulated under a ministry order. According to the government, eliminating these 92 charges will not have a major impact on the state budget, given that last year they only brought around 2 million euros to the budget. However, Prime Minister Victor Ponta stressed, the measure helps reduce bureaucracy. “I am certain that we can further streamline this terrible fiscal system,” the Prime Minister added.