Radio România Internațional

Tag: TRADE

  • February 27, 2025 UPDATE

    February 27, 2025 UPDATE

    ENERGY The Romanian government passed an emergency order to extend the cap on electricity prices beyond the 31st of March deadline, until 30th June this year, and the one on natural gas prices until the beginning of April next year. The latter move is intended to prevent a rise in natural gas prices when the stocks for next winter are refilled. The energy minister Sebastian Burduja said recently that the government wishes to protect Romanian households and support the competitiveness of Romanian businesses. After the energy market was deregulated in January 2021, Romania was one of the European countries the worst hit by soaring electricity and gas prices.

     

    DEFICIT Romania’s budget deficit reached 0.58% of GDP in January, as against 0.45% in the same month last year, according to data made public by the finance ministry on Thursday. The institution said total revenues amounted to almost RON 47 billion, down 1.4%, amid lower EU funding and some current returns, such as VAT and excise duties. Expenditure, on the other hand, which amounts to RON 58 billion, went up by 4.5% compared to the corresponding period last year. The finance ministry mentions that this year’s state budget is based on an economic growth rate of 2.5% and a budget deficit of 7% of GDP. In 2024, the deficit went up to 8.65% of GDP, from 5.61% in 2023.

     

    FARMERS Romanian farmers stand in solidarity with their counterparts in Czechia, Slovakia, Hungary and Austria, who are staging protests against EU agricultural policies, which they see as unfair, and against massive imports of agricultural products from third countries. The Alliance for Agriculture and Cooperation, which includes a number of Romanian organisations in the field, said in a statement that Romanian farmers are faced with market distortions caused by duty free imports from Ukraine, the negative impact of the EU-Mercosur trade agreement on the competitiveness of European agricultural production, and by a growing bureaucratic burden caused by EU regulations. All of these pose a threat to food security, destroy local supply chains and affect farmers’ incomes, the Alliance says. Its representatives view the protests as a strong signal that the current agricultural policies must be revised in order to ensure a sustainable future for farmers across the European Union.

     

    INVESTIGATION Călin Georgescu, the far-right front-runner in the cancelled presidential elections in Romania, is under criminal investigation for 60 days, after being questioned by the General Prosecutor’s Office on Wednesday. While inquiries are being conducted, he is not allowed to leave the country and must check in with the police regularly. Georgescu is accused of six offences, some in aggravated form, including instigation to actions against the rule of law and presenting false information and giving false statements in respect of his wealth declaration and the funding of his election campaign.

     

    TATE BROTHERS The Romanian body investigating organised crime and terrorism confirmed that the case prosecutor allowed Andrew and Tristan Tate to leave Romania, but emphasised that the brothers are still under criminal investigation and must return to Romania. The two, who are holding dual British-American citizenship, are believed to have left the country on Thursday morning on board a private plane, heading for Florida. They were first arrested three years ago and are charged with rape, kidnapping and money laundering. Last week, the Financial Times wrote that the current administration in Washington is putting pressure on Romania to cancel the restrictions against the Tate brothers, which the Romanian authorities have denied.

     

     

    TARIFFS The tariffs the US could introduce on trade with the European Union would have less impact on Romania, as the country’s main trade partners are EU member states, said the National Bank chief economist Valentin Lazea. He added that 72% of Romania’s foreign trade is with EU states and mentioned the example of tariffs applied in the past on steel and aluminium, which did not affect Romania much, given that exports of these metals to the US are negligible. Lazea warned however that there will be an inflationary effect of the global increase in tariffs, which will push prices up. The US President Donald Trump announced on Wednesday, in the first meeting of his cabinet at the White House, that he will soon levy 25% customs duties on European products imported into the United States. (AMP)

  • January 15, 2025

    January 15, 2025

    A roundup of local and international news.

     

    CULTURE DAY – In Romania, January 15 is National Culture Day, which marks the birth date of the national poet Mihai Eminescu. This edition is all the more special as it celebrates the 175th anniversary of the birth of the one who is considered the greatest Romanian poet of all times. Numerous events are taking place in Bucharest and throughout the country: conferences, debates, concerts and exhibitions, and entry to many museums is free. The Bucharest National Opera celebrates National Culture Day this evening, with a gala performance that pays tribute to Romanian culture as Faith, Art and Identity. The “Luceafărul” exhibition can be visited at the Bruckenthal National Museum in Sibiu (center). The Lyric Theatre in Iași (northeast) has scheduled a special performance, while the “Past, Present and Future” exhibition is being opened at the Corvin Castle (west). On National Culture Day, the Radio Romania Culture channel invited a teenager from Vâlcea (south) to the theater for the first time. Through this symbolic gesture, the only national radio station dedicated exclusively to the arts, urges people and institutions to facilitate access to culture for their peers.

     

    NATIONAL BANK – The Board of Directors of the National Bank of Romania (BNR) convenes today for the first monetary policy meeting of the year. Most financial analysts and commercial bank experts believe that the Central Bank will maintain the key interest rate at 6.5%. Estimates are that the BNR could relax monetary policy in the second half of the year, pending clearer prospects regarding the evolution of inflation and fiscal measures. In 2024, the National Bank reduced the reference interest rate twice, from 7% to 6.5%.

     

    MOLDOVA – In Chisinau, President Maia Sandu accused the Russian Federation of wanting to provoke a political crisis in the Republic of Moldova by halting the supply of natural gas to the separatist Transnistrian region. On Tuesday, the Moldovan leader convened the Supreme Security Council to discuss the situation in the energy sector. Maia Sandu drew attention to the fact that the administration of the separatist Transnistrian region, which is facing a humanitarian crisis, has refused the aid offered by Chisinau, setting conditions for accepting the proposed solutions.

     

    HEARINGS – Former Romanian Prime Minister Petre Roman was summoned today at the General Prosecutor’s Office to be heard in the June 1990 Miners’ Riot case, in which he is accused of committing crimes against humanity. He denies any involvement. Former President Ion Iliescu and former Intelligence Service chief Virgil Măgureanu are also being prosecuted in this case, among others. Prosecutors must reopen the investigation in this case, after the evidence collected by investigators was annulled in Court. Initially, Ion Iliescu was sent to trial for crimes against humanity, along with Petre Roman and Virgil Măgureanu, but in December 2020 the High Court of Cassation and Justice decided to return the case to the Military Prosecutor’s Office, to restart the investigation from scratch. According to military prosecutors, on June 11 and 12, 1990, state authorities decided to launch a violent attack against demonstrators in the University Square in Bucharest, who were campaigning for democracy and the removal of former communist dignitaries from public office. Forces from the Ministry of Interior, the Ministry of Defense, the Romanian Intelligence Service, and thousands of miners were allegedly illegally involved in this attack. The violence resulted in 4 deaths, hundreds of injuries, illegal arrests, and damages.

     

    WASHINGTON – US President-elect Donald Trump has announced that he will create a new department, called the ‘Foreign Revenue Service’, whose task will be to collect customs duties, debts and all income from foreign sources, Reuters reports. Trump said on his social network Truth Social that he will sign the creation of this department on January 20, the day he is inaugurated as president. He has already announced that he will impose substantial customs duties on imports from Canada, Mexico and China, mentioning a 25% tax on imports from Canada and Mexico until these two countries neighboring the US take measures aimed at stopping illegal migration and drug trafficking at the borders. Donald Trump has also promised a 10% tariff on all imports and a 60% tax on imports from China, measures that economic analysts warn will have, among other effects, distorting trade flows, increasing costs and trade retaliation measures against American exports.

     

    PROTEST – In Romania, the National Federation of Culture and Press Unions ‘CulturMedia’ is protesting today, on National Culture Day, with white armbands, to draw attention to the underfunding of Culture and the salary inequities to which employees of museums, libraries and cultural centers are subjected. The Federation demands the allocation of 1% of GDP for Culture, the equalization of the salaries of museum and library employees with the with the ones paid for the same professions in education payment scheme, the elimination of the huge salary disparities between employees of performing arts institutions and employees of public museums and libraries, salary increases for work carried out on weekends and public holidays, as well as the payment of overtime. The unionists also demand the unblocking of vacant positions and the supplementation of job schemes to combat the chronic shortage of personnel in cultural institutions.

     

     

  • November 1, 2024 UPDATE

    November 1, 2024 UPDATE

     

    DEFENCE Romania and Norway continue to stand by Ukraine at these critical times, the defence minister Angel Tîlvăr said on Friday, after a meeting in Bucharest with his Norwegian counterpart, Bjorn Arild Gram. Minister Tîlvăr highlighted the successful cooperation between the two countries’ air forces under a programme in which the Romanian government awarded to Norway a contract for the procurement of 32 F-16 aircraft with initial logistic support, and for complementary goods and services from the US. A total of 12 airplanes have been received so far, after less than a week ago 3 F-16 Fighting Falcon multi-role aircraft arrived in Romania. The entire lot is expected to be received by the end of 2025.

     

    FLOODS A person on the list of Romanian nationals missing following the devastating floods in Spain has been found dead, the Romanian foreign ministry announced on Friday. The foreign ministry via the Romanian consular office in Castellon de la Plana and the Romanian Embassy in Madrid continues to check information on an estimated 15 Romanian nationals on the list of missing persons. The region of Valencia, in the south-east of Spain, has been hit by unprecedented floods. At least 205 people died in Spain following the rainfalls and floods, according to updates provided by the Spanish authorities. Scores of people are still missing. Spain declared 3 days of national mourning.

     

    ELECTIONS The election campaign for the parliamentary elections of December 1st officially got under way on Friday. Romanian voters will elect 466 MPs, 330 in the Chamber of Deputies and 136 in the Senate. The election campaign will come to an end on 30th November. Romanian citizens residing abroad will be able to cast their ballots either through postal voting or in person at one of the polling stations set up abroad. The Romanian foreign ministry submitted to the Permanent Electoral Authority its proposals for the 950 polling stations to be set up abroad for the upcoming presidential and parliamentary elections. The election campaign for the presidential elections began a week ago. The first round will take place on 24th November, and the second round on 8th December. In June, Romania also saw European and local elections.

     

    ANNIVERSARY Radio Romania Friday celebrated 96 years of uninterrupted service. With over 3 million listeners a day, the public radio station must reinvent itself and make itself more attractive to younger audiences, said the director general of the Romanian Radio Broadcasting Corporation, Răzvan-Ioan Dincă. Radio Romania broadcast its first programme at 5 pm on 1st November 1928. In recognition of its decisive role in the country’s history, in December 2019 Parliament declared 1st November National Radio Day in Romania. To mark this occasion, the Radio Concert Hall Friday night hosted an anniversary concert conducted by the celebrated Romanian conductor Cristian Mandeal.

     

    TRADE The Romanian minister of the economy, entrepreneurship and tourism, Ştefan-Radu Oprea, and the trade minister of Turkey, Omer Bolat, Friday chaired the second session of the Romanian-Turkish Economic and Trade Committee (JETCO). The Romanian official said there is evident progress in terms of the value of bilateral trade, while Omer Bolat said bilateral economic relations have grown in all areas, from trade to investments, tourism, transport and services. He also appreciated Romania’s support for his country within the EU, in respect of the modernisation of the customs union. The Romanian-Turkish JETCO establishment declaration was signed by the two economy ministers on the sidelines of the Turkish president Recep Tayyip Erdogan’s visit to Romania on April 1, 2015.

     

    JOURNALISTS In most cases in which journalists get killed around the world, their killers go unpunished, said UNESCO in a report on International Day to End Impunity for Crimes against Journalists, which is marked every year on 2nd November. 85% of all crimes against journalists recorded by UNESCO in 2006 are still not solved, the report also writes. Over the two years covered by the UNESCO report, namely 2022 and 2023, 162 journalists were killed, almost a half of them in countries with ongoing armed conflicts. In 2022, Mexico reported the largest number of journalists killed, 19, followed by Ukraine, with 11 journalists killed. In 2023, Palestine reported the largest number of journalists killed, namely 24. (AMP)

  • Romania’s trade deficit

    Romania’s trade deficit

     

    In the first 4 months of this year, Romania’s trade deficit (imports minus exports) was over EUR 9.3 bln, that is, EUR 440 mln deeper than in the corresponding period of last year, the National Statistics Institute announced on Monday.

     

    During this period, exports reached a rough EUR 31.3 bln, and imports exceeded EUR 40.6 bln. According to the National Statistics Institute, in the first 4 months of the year a big part of Romania’s imports and exports was accounted for by vehicles and transport equipment, as well as other manufactured products. Intra-EU trade accounted for approx. 73% of both imports, and exports.

     

    In this context, analysts believe the trade deficit is, alongside the budget deficit, one of the major weaknesses of the national economy. On the one hand, the government spends more than it makes, and on the other hand exports are lower than imports. Experts say that after a period in which the trade deficit showed signs of improvement, the trend now is for it to resume its negative trend, which also puts pressure on the national currency’s exchange rate.

     

    However, the same specialists argue, Romania’s foreign currency reserves should offset the trade deficit, which has stayed rather deep for several years, making the exports more competitive.

     

    Just days ago, the National Statistics Institute announced that the country’s forex reserves had exceeded EUR 65 bln, as against roughly 62.5 bln at the end of April, which is an all-time high for an indicator that impacts directly on the stability of the exchange rate and, consequently, on price stability. This has positive effects both in terms of strengthening the confidence of financial markets and of investors in Romania, and in terms of supporting the exchange rate stability.

     

    Analysts also point out that the rising trend in currency reserves has already been evident for a long time, and is a positive trend for Romania in the face of the highly volatile international situation and the uncertainty of the world’s financial markets as regards future developments. They also explain that a large chunk of the foreign currency reserves comes from European funds, which are exchanged into lei and used by the Finance Ministry to finance various investment projects.

     

    As financial experts argue, international reserves work as a safety net against prospective disruptions. But, they also warn, the rise in foreign currency reserves may also have less favourable effects. Romania’s currency exchange rate stability, all the more remarkable in the last few years given the various disruptions in the markets, has its downsides as well. Specifically, with a national inflation rising steeply to 16%, but a currency exchange rate staying roughly the same, Romania’s exports are affected, as they are less competitive in terms of prices. (AMP)

  • February 9, 2024 UPDATE

    February 9, 2024 UPDATE

    FARMERS The government of Romania has approved a support package for
    farmers, including loans with lower interest rates and electricity subsidies.
    On the other hand, the European Commission Friday approved a EUR 241 mln aid
    scheme, requested by Romania to support farmers in the context of Russia’s war
    against Ukraine. The aid will be provided as direct grants not exceeding EUR
    280,000 per beneficiary. Romania also benefits from EUR 34 mln from the EU’s Solidarity
    Fund, in support for the damages suffered as a result of the drought of 2022.
    The money was already transferred in December of last year, and Romania has one
    and a half years to implement the scheme.




    ELECTIONS Merging European Parliament elections and local elections
    on June 9 is on the agenda of the ruling coalition in Bucharest. According to
    some political sources, the Social Democrats also proposed combining the
    elections for the national Parliament with the first or second round of the
    presidential elections, which would complement the first scenario. The opposition
    is firmly against these initiatives. Save Romania Union has announced it has
    started proceedings to ask the Venice Commission for a point of view on merging
    European Parliament and local elections less than six months before the
    election date. This year all four types of elections are scheduled in Romania -
    parliamentary, European, local and presidential.




    EXPORTS Romania’s
    exports last year exceeded EUR 93 bln, 1.3% more than in 2022, according to the
    National Statistics Institute. Imports on the other hand reached EUR 122 bln, 3.2%
    below 2022. The trade balance deficit amounted to roughly EUR 29 bln, more than
    EUR 5.1 bln less than in 2022. The automotive industry and transport equipment
    sector accounted for important shares in the structure of both imports and
    exports.






    WASTE Romania is the country generating the smallest amount of waste
    in the EU, the Eurostat announced. According to data released by the EU
    statistics office, 513kg of municipal waste were generated in average by each
    EU inhabitant in 2022, which is 19kg less than in the previous year. The
    largest amounts are generated in Austria (827kg per capita), followed by
    Denmark and Luxemburg (over 700kg). At the opposite pole, Romania generates 300kg
    per capita. Although it generates the smallest amounts of municipal waste,
    Romania also recycles the least in the EU-around 36kg out of the 300kg per capita,
    as against the EU average of 249kg per capita. Malta, Greece and Cyprus also
    recycle less than 100kg per capita, as compared to Austria, where the average
    is 510kg per capita.




    UKRAINE President Volodymyr Zelenskiy has appointed General
    Oleksandr Syrskyi as Commander-in-Chief of the Armed Forces of Ukraine,
    replacing General Valery Zaluzhny. Ukraine’s head of state said it was time for
    changes, and explained that the dismissed general should remain in his team.
    After the failure of the Ukrainian counter-offensive in the summer, Zaluzhny
    warned that the war had reached a stalemate, turning into a war of attrition,
    and that in order to win his country needed technologically superior weapons to
    the Russian ones and more troops. International media note that Valery Zaluzhny
    is more popular among Ukrainians than Zelensky. In another move, the Russian
    president, Vladimir Putin, has threatened the United States with a global war, which
    would bring the whole of humanity to the brink of extinction, if
    Washington sends troops to Ukraine. In an interview to the controversial
    American journalist Tucker Carlson, Putin claimed Russia will fight to
    the end to defend its interests.






    POLO Romania’s national water polo team was defeated by Italy, 16-10,
    in its last match in Group D of the World Championship in Doha, Qatar. In the
    first two matches, the Romanians lost to Hungary and outclassed Kazakhstan
    25-3. Romania ranks third in the group, after Hungary and Italy. Group winners move
    straight into the quarter-finals, while the second and third-ranking teams are
    in for a play-off for the quarters. Last month, Romania finished in the 8th
    place at the European Championship in Croatia. (AMP)

  • The Romanian economy at the start of 2024

    The Romanian economy at the start of 2024


    Last year the Romanian economy went up 1.8%, which is however 0.8% less than estimated, reads a recent World Bank report. Also, in January – November 2023, Romanian exports totalled nearly EUR 87 bln, and imports over EUR 112 bln. In other words, exports rose by 2% while imports dropped by over 3% compared to the corresponding period of last year, according to data made public by the National Statistics Institute.



    Even so, the trade deficit exceeded EUR 25 bln last year, in spite of getting more than EUR 5 bln smaller. The economic analyst Constantin Rudniţchi says the deficit primarily narrowed due to the drop in the prices of the energy imported by Romania and to a slow-down in consumption:



    Constantin Rudniţchi: “The good news, if any, is that the trade deficit for the first 11 months of last year dropped compared to the previous year. This decrease is owing to a slow-down in consumption, because, lets not forget, some of the trade balance deficit comes from consumer goods. Obviously, some other part of the deficit is due to industrial goods, but consumer goods have their contribution to the deficit. So on the one hand we saw a decrease in consumption, and implicitly in the deficit. And on the other hand, we have reason to hope (because we dont have all the data yet), the Romanian economy is beginning to produce more goods that are used domestically.”



    The analyst Constantin Rudnițchi believes that, for the trade deficit to keep its encouraging trend, public policies are needed which focus on major sectors, such as the foodstuffs, chemical products and the automotive industry.



    As for the future, the World Bank adjusted downwards its estimates on the Romanian economy, predicting a GDP growth by 3.3% and 3.8% in 2024 and 2025 respectively. In fact, according to the World Bank, the global economy will slow down for the 3rd consecutive year, to 2.4% – the slowest pace since the Covid-19 pandemic. For 2025, the global economic growth is expected to reach an encouraging 2.7%, but even in this case a downward adjustment was operated from the 3% estimate made public last June, especially because of the downturn experienced by the worlds most advanced economies.



    Under these circumstances, the goal of ending extreme poverty by 2030 seems impossible to reach, the World Bank concludes. One way to encourage economic growth, especially in emerging and developing countries, the institution says, is to step up investments in clean energy and adapting to climate change. (AMP)


  • September 11, 2023 UPDATE

    September 11, 2023 UPDATE

    SCHOOL The Romanian
    President Klaus Iohannis announced that the issue of drug consumption among
    young people will be included on the agenda of the next meeting of the
    country’s Supreme Council of National Defense. Attending the opening of the new
    pre-university year at a school in Bucharest on Monday, he emphasized that this
    phenomenon represents a serious challenge to national security. Klaus Iohannis
    also said that he continued to support the increase in teachers’ salaries as of
    January 1, 2024. He gave assurances that he remained firm and would support all
    measures to make the commitments made by the Government this summer come true.
    The new school year started, in Romania on Monday, for approximately 3 million
    pupils and preschoolers. It will have 36 weeks of courses, and it is organized
    in five modules, just like the previous one. The Green Week and
    Doing School Differently will take place between September 11, 2023
    – April 26, 2024 and can be set by schools in any of modules 1, 2, 3 or 4, in
    intervals of 5 consecutive working days. The school year will end on June 21,
    2024. The pupils entering the 5th grade will be the first to take an additional
    high school entrance exam in the summer of 2027.




    DEFICIT Romania’s trade deficit in the first seven months of this
    year stood at 15.6 billion Euros, 17% lower as compared to the same period last
    year, shows the latest data published by the National Institute for Statistics.
    In this period, Romania’s exports totaled 55 billion Euros, 4.6% higher than
    the similar period of the past year. At the same time, between January 1st
    and July 31st 2023, Romania imported goods of 70 billion Euros, 1.1%
    lower than in the same period of 2022. In July 2023, the country’s exports
    stood at 8 billion Euros, while imports at 10 billion, which created a deficit
    of 2 billion Euros. As compared to July last year, exports in July this year went
    down by 3% while imports by 11.5%.










    DRILL
    The Romanian and US Naval Forces are jointly organizing, as of Monday until
    Friday, September 15, a multinational exercise called Sea Breeze. It will take
    place in the area of ​​responsibility of the Romanian Naval Forces in the Black
    Sea and the Danube Delta and aims to develop teamwork between the participating
    countries in the field of combating explosive devices, especially sea mines, so
    that navigation can take place freely. Soldiers from Bulgaria, Turkey, Ukraine,
    France and the UK are also taking part in the exercise.




    FOOTBALL
    Romania’s national football side is playing at home on Tuesday the selection of
    Kosovo, in a game counting towards Group one in the preliminaries of the
    European Championship due in Germany, next year. After five matches in the
    group, with two wins and three draws, Romania boasts nine points presently
    ranking second after Switzerland with 11 points. The group also includes
    Belarus and Andorra. The first two sides will be playing in the final
    tournament. Romania last qualified for a European football tournament in 2016
    and our latest participation in a World Cup was in 1998.


    (bill)

  • August 17, 2023 UPDATE

    August 17, 2023 UPDATE


    TRAFFIC – Cargo traffic through the Romanian Black Sea port of Constanţa has reached almost 50 million tons in the first seven months of the year which is a record high. The grain trade accounted for 19 million tons, a quarter more than in the same period last year. Almost half of it is made with Ukraine. To facilitate the work, the Maritime Ports Administration will soon launch an IT application for booking road truck traffic, which will manage the flow of goods in real time. Since the beginning of the year, more than 385 thousand trucks have entered the port of Constanta.



    MIGRANTS – More than 450 Ukrainian men have illegally crossed the border with Romania since the beginning of the Russian invasion of Ukraine, on February 24, 2022, to flee the war. Of these, 190 took refuge this year. The Ukrainians have either crossed the borders with Romania and the Republic of Moldova illegally, or they entered by corrupting customs officers and border policemen from Ukraine. The Romanian Border Police reported that the people were detected in Botoşani county (north-east) and requested a form of protection from the Romanian state, as a result of the fact that they are coming from a conflict zone. The border police notified the General Inspectorate for Immigration, and the persons in question were taken over by the Regional Accommodation Center for Asylum Seekers in Rădăuţi. After martial law was declared in the neighboring country, Ukrainian men aged 18 to 60 no longer have the right to leave the national territory and are obliged to join the army the army, if necessary.



    FUNDS – The Ministry of Economy, Entrepreneurship and Tourism will grant non-refundable financing to people who want to invest in the infrastructure of Romanian spa and balneal resorts. Some 15 million lei have been allocated to the program for this year, approximately 3 million euros. Among the activities that will be financed are the expansion and modernization of accommodation facilities, public food and spa treatment, the purchase of equipment, furniture and specific medical equipment. The call for projects will be launched next month and registrations will be carried out exclusively online, on the turism.gov.ro website.



    UKRAINE – The Romanian authorities firmly condemn Russia’s repeated aggressions against innocent people and civilian infrastructure after the attack on the Ukrainian ports of Reni and Izmail, located near Romania. The Romanian Foreign Minister, Luminiţa Odobescu, underlined that through these blatant violations of international law, Russia continues to endanger global food security and the safety of navigation in the Black Sea. The structures of the Romanian Defense Ministry, which ensure the monitoring of the airspace, state that they have not identified any threats of a military nature to Romania’s national territory or territorial waters following the attack, and have announced increased measures to monitor the national terrestrial, maritime and air space, in cooperation with the NATO structures.



    TRADE – Germany is Romania’s most important commercial partner, the value of bilateral trade in 2022 standing at 40.68 billion Euros, higher by 17%, shows a press release of the Economy Ministry. In the same period, Germany was the first destination for Romanian exports, with a share of 20% of Romania’s total exports. At the same time, Germany represents for Romania the second source of foreign direct investments, with over 25,000 investing companies, mostly in the high tech industrial sectors. On Wednesday, the Economy Minister, Ştefan-Radu Oprea, met with the ambassador of the Federal Republic of Germany in Bucharest, Peer Olav Gebauer. The talks focused on boosting bilateral economic cooperation, aiming both at attracting German investments in Romania and at encouraging national companies that want to initiate and develop projects on the territory of Germany.



    FOOTBALL – Romania’s football champions, Farul Constanţa (south-east), qualified for the Europa Conference League play-off, on Wednesday evening, after defeating the Estonian team Flora Tallinn with the score 2-0, away from home, in the second leg of the third preliminary round of the competition. In the first match, Farul had won 3-0. Farul will play in the play-off against the loser of the match pitting Qarabag FK (Azerbaijan) against HJK Helsinki (Finland), a match that takes place in the third preliminary round of the Europa League. The other two Romanian teams present in the Conference League, Sepsi Sfântul Gheorghe (central Romania) and FCSB, are playing today. Sepsi will play in Kazakhstan against FC Aktobe, after a one-all score in Romania, and FCSB will play in Norway against FC Nordsjaelland, with whom they ended the first match from Bucharest in a tie, 0-0. (EE)



  • August 17, 2023

    August 17, 2023

    Ukraine – The Romanian
    authorities firmly condemn Russia’s repeated aggressions against innocent
    people and civilian infrastructure after the attack on the Ukrainian ports of
    Reni and Izmail, located near Romania. The Romanian Foreign Minister, Luminiţa
    Odobescu, underlined that through these blatant violations of international
    law, Russia continues to endanger global food security and the safety of navigation
    in the Black Sea. The structures of the Romanian Defense Ministry, which ensure
    the monitoring of the airspace, state that they have not identified any threats
    of a military nature to Romania’s national territory or territorial waters following
    the attack, and have announced increased measures to monitor the national terrestrial,
    maritime and air space, in cooperation with the NATO structures.

    Trade – Germany is Romania’s most
    important commercial partner, the value of bilateral trade exchanges in 2022 standing
    at 40.68 billion Euros, higher by 17%, shows a press release of the Economy Ministry.
    In the same period, Germany was the first destination for Romanian exports,
    with a share of 20% of Romania’s total exports. At the same time, Germany represents
    for Romania the second source of foreign direct investments, with over 25,000
    investing companies, mostly in the high tech industrial sectors. On Wednesday,
    the Economy Minister, Ştefan-Radu Oprea, met with the ambassador of the Federal
    Republic of Germany in Bucharest, Peer Olav Gebauer. The talks focused on
    boosting bilateral economic cooperation, aiming both at attracting German
    investments in Romania and at encouraging national companies that want to
    initiate and develop projects on the territory of Germany.

    Football – Romania’s
    football champions, Farul Constanţa (south-east), qualified for the Europa
    Conference League play-off, on Wednesday evening, after defeating the Estonian
    team Flora Tallinn with the score 2-0, away from home, in the second leg of the
    third preliminary round of the competition. In the first match, Farul had won
    3-0. Farul will play in the play-off against the loser of the match pitting Qarabag
    FK (Azerbaijan) against HJK Helsinki (Finland), a match that takes place in the
    third preliminary round of the Europa League. The other two Romanian teams
    present in the Conference League, Sepsi Sfântul Gheorghe (central Romania) and
    FCSB, are playing today. Sepsi will play in Kazakhstan against FC Aktobe, after
    a one-all score in Romania, and FCSB will play in Norway against FC
    Nordsjaelland, with whom they ended the first match from Bucharest in a tie,
    0-0.

    Baccalaureate
    – In Romania, high school graduates enrolled for the autumn session of the
    Baccalaureate took the test in Mathematics or History today. On Wednesday, they
    took the written test in Romanian Language and Literature. Friday will see the exam
    in the optional subject chosen and on August 21 the candidates of the national
    minorities will take the written test in their Mother Tongue Language and
    Literature. The final results will be announced on August 29. Almost 34,000
    students signed up for this session where, for the first time, papers are
    assessed in a digitized system.

    Meeting – The
    Secretary of State for Strategic Affairs with the Romanian Foreign Ministry,
    Iulian Fota, had a meeting with the Undersecretary of State for Arms Control
    and International Security from the US State Department, Bonnie Jenkins. The
    two firmly condemned the military aggression of the Russian Federation against
    Ukraine and the continuation of Moscow’s attacks on the Ukrainian population
    and civil infrastructure. Secretary of State Iulian Fota reiterated Romania’s
    commitment to promoting the international agenda regarding arms control, disarmament
    and non-proliferation. At the same time, he expressed Romania’s major concern
    over the worrying developments at the Zaporizhzhia nuclear power plant, which
    endanger both the civilian population and regional security. (LS)





  • Customs duty waiver for Ukraine

    Customs duty waiver for Ukraine


    In order to support Ukraines economy, severely hit by the Russian invasion, the EU trade ministers Thursday approved the Commissions proposal to extend by another year the trade facilities granted for Ukraines exports. All import duties are therefore lifted until June next year.



    By renewing the measure, the EU continues to prove its unwavering political and economic support for Ukraine, Brussels explained, and added that this form of support, concurrently with the military, financial and humanitarian aid, is vital for the countrys long-term recovery. The EC said the further lifting of safeguard measures will help mitigate the difficult situation facing the Ukrainian producers and exporters following the Russian invasion.



    The measures apply to fruits and vegetables subjected to the entry price system, as well as agricultural products and processed products subject to tariff quotas. And because certain effects of this decision have a dramatic impact on several economic sectors in Member States, the package also includes measures to protect these sectors.



    The EU leaders call for solidarity from the European society, and argue that while EU countries are paying to help war-hit Kyiv in money, Ukrainians are paying for this conflict caused by Moscow both financially, and in human lives.



    The suspension of import duties triggered complaints from farmer associations in 5 EU member states, including Romania, on grounds of the unfair competition with the exports of grains from these countries, which are subject to duties and restrictions. The discontent culminated with the decision made by Poland and Hungary last month to ban certain grain imports from Ukraine.



    Moreover, early this week, several hundred farmers from EU countries neighbouring Ukraine, Romania included, protested in Brussels, demanding measures to avoid the bankruptcy of thousands of European farmers. Romanian farmers, for instance, argued that traders and producers in the agrifood sector prefer the grains imported from Ukraine to the ones produced locally, due to the lower prices. In this context, the European Commission approved an additional EUR 100 mln in aid for the farmers in the 5 most affected countries-Hungary, Poland, Bulgaria, Romania and Slovakia.Romania is set to receive nearly EUR 30 mln of the total amount. (AMP)


  • Rising Trade, Falling Interest Rates

    Rising Trade, Falling Interest Rates

    In Romania, trading businesses registered a 9% increase in the first two months of this year as compared to the same period in 2022, show the latest data from the National Institute of Statistics. Thus, in February compared to January, trading of agricultural products had an increase of almost 27%, while trading of foodstuffs by only 4.6%. These indicators are important, in the opinion of economic analyst Constantin Rudniţchi, because they show the dynamics of the economy and consumption.



    Constantin Rudniţchi: “We can see that, despite these discussions and complaints about the Ukrainian cereals, this year, at least the agricultural products trading area is on first place in terms of growth, which points to the dynamism of this field. We also see lower figures in relation to food products, which is certainly the result of inflation. Also this lower growth figure shows us that consumption is also slowing down. We could expect this situation, because inflation almost forces consumers to reduce their consumption or buy cheaper products.



    In addition, analyst Constantin Rudniţchi says, in the next period there could be a slowdown in trading activities, given that inflation remains high and economic growth forecasts are decreasing compared to last year. According to the National Institute of Statistics, the annual inflation rate dropped to a little over 14.5% in March, from 15.5% in February, as foodstuffs prices rose by over 21%, and the prices of non-foods and services by 11%. However, the National Bank of Romania expects the annual inflation rate to decrease faster than previously anticipated, especially starting from the third quarter of this year, against the background of the extension of energy price capping and compensation schemes.



    On the other hand, Romanias central bank announces that the ROBOR indices continue their downward trend, and the rates should decrease slightly as of the middle of the year. The three-month ROBOR, according to which the basket of consumer loans in lei with variable interest is calculated, fell to the lowest value since July last year. In early 2023, the index was over 7.5%. According to the national bank data, the six-month ROBOR, used to calculate interest on mortgage loans in lei with a variable interest rate, also fell below 7% per year. (LS)

  • February 8, 2023 UPDATE

    February 8, 2023 UPDATE

    EARTHQUAKE The massive earthquakes that hit Turkey and Syria on Monday killed around
    12,000 people, according to the latest reports. Two-thirds of the total
    casualties are reported in Turkey. Tens of thousands of people were injured. In
    spite of the freezing cold, rescuers are struggling to find survivors. President Tayyip Erdogan declared
    disaster areas in the 10 provinces affected by the quakes, and introduced a
    3-month state of emergency. Seventy countries have so far provided support in
    the search and rescue operations. Romania joined the international aid efforts
    and sent nearly 120 search and
    rescue specialists, doctors and nurses, as well as search and rescue dogs.
    Many Romanian nationals have contacted the Embassy in Ankara to report the situation there, but few of them
    requested to be repatriated. Turkey is located in one of the world’s
    main seismic areas. In 1999, an
    earthquake occurring in Düzce, in the north of the country, killed over 17,000 people. As regards Syria, Romania is going to provide mostly humanitarian aid,
    following that country’s request to the EU Civil Protection Mechanism.


    PATRIOT Romania has received a second Patriot system, out of the total
    four, that were contracted for the first stage of the country’s Air Force
    equipping programme. According to the defence minister Angel Tilvar, the four
    systems represent the first stage in achieving state-of-the-art ground-based
    air defence capability, which can be fully integrated into the NATO system.
    Patriot systems were first delivered to Romania in 2020, and 2023 is the year
    when the first stage of the equipping programme is to be fully completed,
    according to the Defence Ministry. The Patriot system is one of the most
    advanced air protection systems of the US military arsenal. It is a mobile
    system that usually includes a powerful radar, a control station, a power
    generator, launch stations and support vehicles.


    EU The European Council on Thursday will hold a summit in Brussels to
    discuss the war in Ukraine, the EU economy and migration. A video-conference
    chaired by the European Council President, Charles Michel, was held on Tuesday
    and was also attended by Romanian President Klaus Iohannis, who said talks
    focused on the support granted to Ukraine, consolidating the competitiveness of
    the EU economy and implementing concrete measures of combating illegal
    migration. Although Schengen enlargement is not officially on the agenda,
    President Iohannis might approach it informally in the plenary or during
    bilateral meetings with his counterparts.


    MOTION The Chamber of
    Deputies Wednesday dismissed the simple motion tabled by the opposition against
    the interior minister Lucian Bode. The document signatories accuse Bode of plagiarism
    and blame him for Romania’s failure to join the Schengen area. In Monday’s
    debates on the motion, Lucian Bode argued that the opposition’s claims were
    untrue and prompted by the forthcoming elections.This is the
    second failed motion against minister Bode, after the one in October.


    PROTESTS Members of the Sanitas Trade Union Federation Wednesday held
    protest rallies in Bucharest, for the 3rd consecutive day, picketing
    political party offices. Several hundred unionists from around the country
    protested against the Salaries Law and the under-financing of healthcare
    institutions and social assistance in Romania. The list of demands includes a
    minimum 15% pay raise. The unionists warned that unless the authorities meet
    their demands, further protests may be planned. (E.E., A.M.P.)

  • Growing trade deficit

    Growing trade deficit

    Affected the past 2 years by the consequences of the COVID-19 pandemic, and more recently by the aftermath of the war in neighbouring Ukraine, Romanias economy continues to suffer. Forecasts for this year remain moderately optimistic, and policy makers have built the state budget on a predicted 2.8% economic growth rate and a budget deficit up nearly 4.4% of GDP.



    But the bottom line for 2022 is not as encouraging. In the first 11 months of last year, imports were EUR 31 bln higher than exports, according to data made public by the National Statistics Institute (INS). This is a record-high trade balance deficit, almost EUR 10 bln higher than in 2021. According to commentators, this was true even for the automotive industry, where traditionally exports had been higher than imports.



    According to official data, in the period under review the largest shares in the structure of exports and imports were reported for vehicles and transport equipment (41.7% of exports and 32.7% of imports) and other finished goods (30% of exports and 28.6% of imports).



    In the first 11 months of 2022, exports exceeded EUR 85.2 bln and imports totalled over EUR 116.2 bln, pushing the trade balance deficit to over 45% more than the figure for the corresponding period of the previous year. The increase was in part generated by the very high inflation, which increased the value of imports, but the main cause remains the fact that domestic output is unable to cover domestic demand, even in those sectors where it used to, such as the agrifood, chemical and automotive industries.



    Experts argue that the government needs to take immediate action to keep things from worsening. This is what the economic analyst Constantin Rudniţchi told Radio Romania:



    Constantin Rudniţchi: “Obviously, we should have a better structured and better financed policy to promote Romanian exports. On the other hand, Ive heard ideas that we should make a very thorough analysis with respect to imports, and the government and the business sector, together, should try to come up with measures to persuade those companies that import or make these imported products abroad to come to Romania.”



    Romanias international trade remains primarily focused on EU member states, which account for over 72% of the total export market (nearly EUR 62 bln) and for around 70% of the import sources (EUR 82 bln). Non-EU trade amounted to EUR 23 bln in exports (i.e. 27.4%) and EUR 34 bln in imports (29.3%). (AMP)

  • November 4, 2022 UPDATE

    November 4, 2022 UPDATE

    LAW Romania’s
    president Klaus Iohannis Friday signed into law a bill banning convicted offenders
    from running for public offices such as senators, deputies, mayors, chairs or
    members of county councils and others. Under the said law, the ban does not
    apply in cases involving rehabilitation, amnesty or decriminalisation.




    AIRCRAFT Romania has signed an agreement to purchase 32 F-16
    fighters from Norway. According to the Defence Ministry, the first aircraft
    will be delivered towards the end of next year, and total costs amount to EUR 388
    mln. The ministry also explains that the aircraft will be operational and fit
    for use for another at least 10 years. The agreement is supported by the US
    Government and is a capability transfer between 2 NATO member states, aimed at
    enhancing Romania’s defence capacity and at ensuring the country’s contribution
    to the collective defence as part of the Alliance. At present the Romanian Air
    Forces operate 17 F-16 fighters.


    TRADE The volume
    of trade exchanges between Romania and Germany in the first 9 months of the
    year exceeded EUR 28 bln, 18% higher than in the same period last year, says
    the Federal Statistics Office quoted by the Romanian-German Chamber of Commerce.
    According to the same sources, German exports to Romania stood at roughly EUR 15
    bln, while imports exceeded EUR 13 bln, placing Romania on the 19th position in
    a ranking by exports and on the 21st position in terms of imports. Federal
    authorities have voiced hope that Romania will join the Schengen zone as soon
    as possible in what is seen as a strong political signal acknowledging the
    country’s positive achievements in terms of European integration.


    EXTREMISM The Romanian Radio Broadcasting Corporation condemns the
    xenophobic statements made by a Hungarian politician on a visit to Sfântu
    Gheorghe (central Romania). Barna Bartha, a Deputy affiliated with the
    extremist party Mi Hazánk (Our Motherland) made racist statements concerning
    Roma and Jewish people, and threatened Boróka Parászka, a Hungarian ethnic
    employed as a journalist with Radio România Tîrgu Mureş. The management of the
    Radio Broadcasting Corporation sees these statements as unacceptable and a
    serious attack against basic rules of democracy and against the rule of law. PM
    Nicolae Ciuca also described the threats against journalist Paraszka Boroka as
    a serious attack on democratic values and urged the relevant authorities to
    use their legal powers to protect the members of mass media. Mi Hazánk is a
    far-right party in Hungary, set up 4 years ago by dissidents from Jobbik party
    after its leaders moved away from the organisation’s radical roots.


    UKRAINE Some 4.5
    million Ukrainians, accounting for one-tenth of the country’s population, were
    left without electricity on Thursday night, after Russian attacks on the
    country’s energy network. Power went out both in the capital Kyiv and in 10
    other regions. The Ukrainian president Volodymyr Zelenskyy said the Russians
    cannot beat Ukraine on the battlefield, so they try to break our people by
    resorting to energy terrorism. Meanwhile, Ukraine firmly condemned the
    massive displacement of civilians in Russian-controlled Kherson region (south)
    for fear of a massive Ukrainian counteroffensive. Civilians were reportedly
    also moved in the neighbouring region of Zaporizhzhia and in Crimea, the
    peninsula annexed by Russia in 2014, as well as in the eastern provinces of Luhansk
    and Donetsk, partly controlled by pro-Moscow secessionists. (AMP)

  • October 10, 2022

    October 10, 2022

    DEFICIT In the first 8 months of the year Romania’s trade balance
    deficit deepened by nearly EUR 7.4 billion, to EUR 22 billion. According to data
    made public by the National Statistics Institute on Monday, exports went up
    25%, to EUR 60.3 billion, and imports rose by 31%, to roughly EUR 83 billion.
    Vehicles and transport equipment, as well as other manufactured products,
    accounted for a large part of Romania’s foreign trade. Over 70% of the total
    imports and exports involved the EU market.


    PILGRIMAGE
    The north-eastern Romanian city of Iaşi is hosting these days a traditional
    pilgrimage devoted to St. Paraskeva, commemorated on the 14 October and viewed
    as the patron saint of Moldavia. Thousands of Orthodox believers from around
    the country and from abroad have already come to pray at St. Paraskeva’s relics,
    hosted by the Metropolitan Cathedral. The Iași pilgrimage is the largest
    Orthodox pilgrimage in the country, with around 300,000 people expected to
    attend this year.


    REFUGEES Romania is better prepared to
    receive Ukrainian refugees, although there is no indication that their number
    may increase, the state secretary with the interior ministry Raed Arafat
    said in Suceava, north-eastern Romania. On Sunday the Romanian official
    travelled to the Suceava hub for a donation ceremony also attended by the
    French ambassador to Bucharest, Laurence Auer, and the Ukrainian ambassador in
    Romania, Ihor Prokopchuk. Fifteen fire engines and ambulances were brought to
    the hub by 40 members of the French civil protection agency, and further
    materials will reach Suceava in a few days. The largest French aid batch for
    Ukraine, consisting in over 1 tonne of pharmaceuticals, foodstuffs and
    intervention vehicles, has reached the Black Sea port of Constanţa Sud-Agigea.


    UKRAINE
    Several blasts were reported this
    morning in the Ukrainian capital city and in Lviv, Ternopil and Dnipro. The
    Romanian foreign minister Bogdan Aurescu announced that Romanian diplomatic
    staff in Kyiv is safe, although a missile hit 850m from the Romanian embassy
    office. The Romanian official firmly condemns Russian missile strikes on
    civilian targets in Kyiv and other Ukrainian cities as a blatant violation of
    international human rights law. Meanwhile, Russia’s Security Council convenes today at president
    Vladimir Putin’s request, after Saturday’s
    partial destruction of the Kerch bridge connecting Russia to Crimea. According
    to Putin, this was a terrorist act committed by Ukraine. The Ukrainian
    authorities neither confirmed nor denied their involvement in the incident. In
    Washington, the White House declined comments on the topic and mentioned it
    would continue to supply weapons to Ukraine. Also today, the UN is holding an
    emergency session to discuss Russia’s recent annexation of 4 other Ukrainian
    provinces. Radio Romania’s correspondent in the US mentions that the UN General
    Assembly condemned the annexation of Crimea in 2014.


    AIRPORT As of today, the Bucharest Otopeni Airport is upgrading its baggage
    handling systems at the Departures terminal, the Bucharest National Airport
    Company has announced. Until next August, the number of check-in counters will
    be significantly reduced, and waiting time will be longer. The current baggage
    handling system is more than 20 years old, and its replacement requires an over
    EUR 20 million investment. After the works, the processing capacity will be 40%
    higher, and 12 counters for passengers to drop off their own baggage without
    resorting to a check-in counter will also be available, the Company announced.


    VETERINARY EU experts are assessing these days the veterinary services
    at the border check points Stamora Moraviţa, in Timiş County, on the border
    with Serbia, and at the Bucharest Henri Coandă Airport, the National Veterinary
    and Food Safety Agency announced. The assessment comes in the context of
    Romania’s prospective Schengen area accession. The Czech presidency of the EU
    Council announced last week that in the December summit it will seek a
    unanimous decision on Romania’s and Bulgaria’s accession to the passport-free
    travel area.



    SPORTS The Romanian team CSM Bucharest defeated
    the Dutch side Odense Handbold, 31-27 (16-13), on Sunday, away from home, in
    Group A of the women’s handball Champions’ League. Undefeated in 4 matches, the
    Romanian team is to play next at home on 16 October, against DHK Banik Most. In
    turn, CS Rapid Bucharest won 34-32 (19-14) against the Danish team Team
    Esbjerg, in a home game on Sunday in Group B of the same competition. This was
    the 3rd win for the Romanian champions in the competition. Rapid will
    play next against Buducnost Podgorica, away from home, on 15 October. (AMP)