Radio România Internațional

Tag: WB

  • February 4, 2025 UPDATE

    February 4, 2025 UPDATE

    Romania is ‘a politically and economically stable and safe country,’ oriented towards investment and reform, Prime Minister Marcel Ciolacu said on Tuesday at a meeting with World Bank officials in Bucharest. ‘Our country is a regional pillar of security and economic stability for Europe and for the Strategic Partnership with the US,’ the PM added. According to a news release issued by the government, Bucharest sees the WB as a partner for its goals and continues to rely on the funding and know-how provided by the group.

     

    During the meeting, the participants reviewed jointly-developed projects in the fields of healthcare and emergency management. The World Bank officials welcomed the Government’s reform plan and the attention paid to investments, noting that Romania is a strong and resilient partner. I am confident that together we will continue to implement the ongoing projects and expand the portfolio with new investments in energy, green transition, infrastructure and other areas with growth potential, WB executive director Eugene Rhuggenaath said. The institution’s representatives also appreciated the support offered by Romania to the neighboring Republic of Moldova and Ukraine, as well as its contribution to ensuring stability in the region.

  • May 18, 2023 UPDATE

    May 18, 2023 UPDATE

    FORUM The world has changed and everything in the area of security
    has been rewritten and must be revised in our Black Sea region, where a large
    part of the components of Russia’s large scale war of aggression in Ukraine are
    taking place, said Romanian prime minister Nicolae Ciucă in Bucharest at the
    7th edition of the Black Sea and Balkans Security Forum. Ciucă went on to say
    that the region must cope with a long and high-intensity war that is exhausting
    the resources of both the country in conflict and those of the countries of
    Europe. The two-day forum hosts over 40 sessions. Attending are top civilian
    and military officials, diplomats and experts from the European Union and NATO,
    as well as partner states. The themes discussed include support for the
    European integration of the Republic of Moldova and Ukraine, the reconstruction
    of Ukraine and the European security architecture after the war, as well as the
    food crisis caused by Russia’s invasion, security energy in Europe, the
    security of the Western Balkans and cyber resilience.


    FLOODING Prime minister Nicolae Ciucă said the Romanian authorities
    are ready to provide assistance with rescue operations following the floods in
    Italy. The region of Emilia Romagna in the north of Italy is on high alert as a
    result of heavy rain that caused massive floods and left victims. According to
    Radio Romania’s correspondent, thousands of people have already been evacuated,
    but several tens of thousands are still stranded in areas that have been left
    without electricity. Some trains are still stationary, traffic is disrupted and
    sections of the motorway are closed.


    AGREEMENT The government of Romania and of the UK Thursday
    signed a joint action plan in Bucharest on fighting human trafficking. The
    document is part of the vision and strategy that Bucharest has embraced for the
    past 2 years to turn Romania into a country hostile to people traffickers but
    safe and friendly to the victims of this phenomenon, reads a news release
    issued by the Romanian government. Signing the document also proves our
    government’s concern and care for its more vulnerable citizens, those more
    exposed to the risks of human trafficking, who live either in Romania or in one
    of the largest Romanian diaspora communities, namely in the UK. It is absolutely vital for us to keep our
    firm commitment of fighting this scourge and our capacity and willingness to
    tackle this issue on all three key levels-prevention, combating and victim
    protection. (…) My message is quite clear: trafficking in human beings is a
    form of crime for which the government of Romania has zero tolerance, PM
    Nicolae Ciucă said.



    WB In order to solve external imbalances, Romania
    needs a mix of fiscal consolidation and structural reforms, reads a World Bank
    analysis. Political measures aimed at improving its fiscal situation include
    broadening taxable revenues, improving tax compliance, introducing critical
    reforms in public pensions and salaries and cutting inefficient expenditure. A
    consolidation of public investment management would help release significant EU
    funding and would improve critical sectors lagging behind in Romania, such as
    the public education and healthcare, reforming state-owned enterprises, or
    infrastructure. In turn, the latter would contribute to improved productivity
    and competitiveness, with a positive impact on Romania’s foreign position. Romania’s
    external imbalances have deepened lately. Since 2018, the country has seen
    deepening fiscal and current account deficits, jointly with an expansionary
    fiscal policy. The two major external shocks, the Covid-19 pandemic and the war
    in Ukraine, have strengthened these imbalances. (AMP)

  • Forecasts on energy prices

    Forecasts on energy prices

    After a 60% surge this year, prompted by the war
    started by the Russian Federation in neighbouring Ukraine, energy prices are
    forecast to drop 11% next year. According to a World Bank report, a slower
    global economic growth and the Covid-related restrictions introduced in China
    may lead to an even more substantial decrease.


    In spite of this slow-down, energy prices will still
    be 75% above the past five years’ average. The WB’s latest Commodity Markets
    Outlook, made public on Wednesday, indicates that the average price of Brent
    crude oil is likely to be 92 US dollars per barrel in 2023, and expected to
    drop to 80 US dollars per barrel in 2024, but it will be nevertheless
    substantially above the USD 60 multiannual average.


    World Bank forecasts also indicate that Russia’s oil
    exports might decrease to 2 million barrels a day, as a result of the ban
    considered by the EU with respect to Russia’s oil and natural gas, adding to
    which will be restrictions related to the insurance and shipping of Russian oil
    and gas. The ban is scheduled to take effect next month.


    Moreover, the report reads, G7 is looking at a yet
    untested price-capping mechanism, which may also affect Russia’s oil exports.


    The WB analysis also takes into account the effects of
    the US dollar appreciating against the currencies of most developing economies,
    a situation that has led to rising foodstuff and fuel prices. And this, the
    financial institution warns, may deepen food insecurity which is already
    impacting 200 million people around the world. As the authors of the document
    explain, the mix of high prices for raw materials and the persistent currency
    depreciation translates into higher inflation in many countries.


    In this context, emerging and developing economies
    should prepare for higher volatility in the global financial and commodity
    markets. WB experts say that currency depreciation forced nearly 60% of the
    emerging and developing economies to face increases in oil prices in their
    local currencies, following the Russian invasion in Ukraine.


    The WB forecast also indicates that both natural gas
    and coal prices are expected to decrease in 2023 from the record-high levels
    reported this year, but natural gas prices in Europe may remain almost 4 times
    higher than the average for the past 5 years. (AMP)

  • Warnings from the World Bank and the IMF

    Warnings from the World Bank and the IMF

    The World Bank, the International Monetary Fund, the United Nations Food Programme and the World Trade Organisation have this week called on all countries to take urgent and coordinated measures to ensure food security. In a joint statement, the leaders of the four institutions have warned that the war in Ukraine adds to pre-existent pressure generated by the Covid-19 pandemic and climate change, endangering millions of people from all over the world.



    The much higher prices for basic food products and the disruptions in the supply chain have put a lot of pressure on consumers. Poor countries are the most vulnerable, but average-income countries are also exposed. The war in Ukraine made the IMF revise downwards global economy for 2022 and 2023, in the context of higher prices for food and energy that put high pressure on fragile economies, the IMF chief said Thursday.



    Kristalina Georgieva said the Russian invasion of Ukraine sends shock waves across the entire world and puts countries still struggling to recover from the pandemic in an even more difficult situation. ”To put it simply, we are facing a crisis on top of a crisis. This is a massive setback for the global recovery. In economic terms, growth is down and inflation is up. In human terms, people’s incomes are down and hardship is up,” she explained.



    The IMF, which on Tuesday will make public its new economic forecast, will revise downwards 143 economies, that together account for 86% of the world s GDP, but, for most countries, it counts on a positive economic growth. Although a clear figure regarding the advance of world economy has not been made public, Kristalina Georgieva said it will be smaller than the 4.4% forecast made by the IMF in January, a forecast already reduced by half percentage point due to disruptions in the supply chain. According to the IMF, for the first time in many years, inflation has become a clear and present danger for many countries around the world and will stay high for a longer period than expected. According to the IMF, there is another growing risk, namely, ”fragmentation of the world economy into geopolitical blocs—with different trade and technology standards, payment systems, and reserve currencies.”



    In Romania, authorities are trying to support the population seriously affected by an inflation rate of over 10%, the biggest level in 18 years. PM Nicolae Ciuca has presented the head of the World Bank, David Malpass, who paid a visit to Bucharest, the ”Support for Romania” programme, worth around 3.5 billion euro, of which more than 60% will go to investment. The Romanian Government also supports the transit of goods, to ease exports from Ukraine, and has plans to develop capacities for electricity production and to expand natural gas exploitation, including off-shore, and capitalise more on its agricultural potential. (EE)


  • April 11, 2022 UPDATE

    April 11, 2022 UPDATE

    Aid – The leaders of the ruling coalition in Romania are to decide the final form of the aid package for the population and the economy, in the context of the recent wave of price hikes. There are measures that have been discussed for several weeks – increasing the amounts allocated to food in hospitals, increasing the value of meal vouchers and granting vouchers to the vulnerable population. The minimum wage is also to be increased, a measure which is optional for companies though, and they might introduce the possibility of loan repayment postponement for the population, as happened during the pandemic. Carriers are also to receive support, as they will have part of the diesel costs reimbursed by the state, and grants are provided for small and medium-sized enterprises. Liberal Prime Minister Nicolae Ciuca has said the aid package will ensure the functioning of the economy and protect vulnerable citizens. In turn, the Social Democrat leader, Marcel Ciolacu, has pointed out that this is the first time that a Government comes with such an initiative, and the total amount allocated for the application of the aid package is over 17 billion lei (about 3.5 billion Euros), half of which is covered by European funds.



    WB – The World Bank has revised downwards the estimate for Romania’s economic growth this year, from 4.3%, as it estimated in January, to 1.9%. According to the international institution, the economic risks have increased significantly, especially as a result of the Russian invasion of Ukraine. For next year, the World Bank has improved its estimate of the Romania’s economic growth, to 4.1%, while for 2024 it anticipated an increase in the Gross Domestic Product of 4.3 %.



    Schengen — The Group of the Progressive Alliance of Socialists and Democrats in the European Parliament is committed to firmly supporting Romanias accession to the Schengen Area. The statement was made in Bucharest by the groups president, Iratxe García Pérez, who stated that Romania met the technical criteria for inclusion in the European free movement area. “There is no excuse for this not to become a reality as soon as possible,” Perez said. Romania should have joined Schengen in 2011, but several European countries have shown their opposition, saying that the country has problems with corruption and the justice system.



    EU accession — The Republic of Moldova and Georgia received on Monday, from the European Commissioner for Enlargement Oliver Varhelyi, the questionnaire for their application for EU accession. The document serves as a basis for accession negotiations, which, however, involve a laborious and lengthy process. The handing over of the questionnaire by the European Commission is an important stage on the European path of the Republic of Moldova, and Romania is by its side and offers its full support, Romanian President Klaus Iohannis wrote on Twitter. Prime Minister Nicolae Ciuca welcomed the event, noting that the Romanian government was ready to provide support in formulating the response.



    Sanctions — The Romanian Foreign Minister Bogdan Aurescu on Monday hailed the adoption of the new package of European sanctions against Russia (the fifth), stressing the importance of their effective implementation and expressed readiness to discuss new sanctions. He attended a meeting of EU foreign ministers in Luxembourg. As for Ukraine, Aurescu expressed concern over the growing number of reports of war crimes and crimes against humanity and underscored Romanias support for the International Criminal Courts efforts to investigate them. The Romanian Foreign Minister said that the unity and solidarity of the EU, as well as the coordination with the USA, NATO and other partners remained fundamental in counteracting the impact of the war in Ukraine.



    Visit — Romanias energy security, tougher measures against Russia, the consolidation of NATOs eastern flank and the impact of the war in Ukraine on the Romanian economy were the main topics of discussion at the meeting, in Bucharest, of the Senate Speaker Florin Citu with a delegation led by the leader of the Republican minority in the U.S. House of Representatives, Kevin McGarry. The two sides highlighted, among other things, that nuclear power projects were a priority for increasing Romanias energy security and reducing its energy dependence on Russia. The importance of the international community adopting a unified and coherent response to the actions of the Russian Federation against Ukraine was also discussed.



    Motion — On Monday, the Chamber of Deputies of the Romanian Parliament rejected a simple motion submitted by Save Romania Union – USR against the Environment Minister, Tanczos Barna. The opposition party claimed that the minister of the Democratic Union of Ethnic Hungarians in Romania – UDMR in the ruling coalition would be the main culprit for illegal deforestation, environmental damage, the states incapacity to take advantage of green economy opportunities and for the contemptuous attitude towards civil society, USR representatives say. Tanczos Barna claimed that the so-called illegal deforestation was untrue, because no one could prove one single case of illegal logging during his term. (LS)

  • March 31, 2021 UPDATE

    March 31, 2021 UPDATE

    WB Romania’s economy is expected to grow by 4.3% this year after last year’s 3.9% contraction, says the latest World Bank report published on Wednesday. According to the same report, the economic growth would be supported by the improved economic activity in the second half of 2021. This economic growth will also depend on the success of the vaccination rollout, the political response to the medical crisis as well as by the EU performances. World Bank also expects a 4.1% economic growth for the next year with an inflation rate around 3% in 2021 and of 3.2% in 2022. Inflation is expected to go down to 2.9% in 2023.



    COVID-19 As many as 6,156 new COVID-19 infections were reported on Wednesday in Romania out of 41,000 tests. 14 counties are in the red zone, meaning they have infection rates above 3 per thousand. Ilfov County near Bucharest has the highest infection rate, over 9 per thousand, and the capital city is over 7 per thousand. The autorities also announced 129 deaths and 1,412 patients in intensive care, a new record since the start of the pandemic. Authorities have again pointed out that only through vaccination and observance of the prevention rules will Romania be able to get rid of the pandemic. According to physician Andreea Moldovan, state secretary with the Health Ministry, the third wave is different than the others, with a higher number of cases and increased gravity. In her opinion, if containment measures are relaxed or ignored by people, they would stay in force for longer. Meanwhile, the vaccine rollout is in full swing in Romania with over 2 million vaccinated; half of them with the booster dose.



    PROTESTS For the third night in a row, Bucharest and several big cities across Romania on Tuesday saw large-scale protests against the anti-Covid measures imposed by the authorities. Chanting anti-government slogans, the protesters called on the authorities to cancel the mandatory wear of face masks and reopen gyms and fitness facilities. Romanias president Klaus Iohannis on Tuesday said that he understands the discontent of the Romanians after a year of restrictions, adding these measures are the only means that can help Romania to contain the pandemic. The Romanian president also said that protests are normal in a functioning democracy but violence, extremism and xenophobia are intolerable and completely unacceptable. The president’s statement came after clashes in some of Romania’s cities. Opposition leader Marcel Ciolacu said that people took to the streets out of poverty and despair caused by the ongoing medical crisis.



    TALKS The Romanian foreign minister Bogdan Aurescu and the US secretary of state Antony Blinken Tuesday had talks over telephone about Romania’s contribution to NATO, energy security and the rule of law. Washington praised Romania for being a staunch NATO ally and for its commitment to strengthening security at the Black Sea, while Bucharest gave assurances these approaches would continue. The two officials also tackled the developing bilateral cooperation in the field of nuclear energy and the efforts to diversify gas supplies in Europe. Minister Aurescu mentioned the priority of Romania’s government related to the country’s OECD accession and voiced his belief that the US would support Romania’s intention. He also highlighted the interest in the rapid progress of the Visa Waiver programme and an increased US military presence in Romania.



    ANTI-SEMITISM The Chamber of Deputies Wednesday adopted a joint statement condemning anti-Semitic messages in Romania and attempts at rehabilitating war criminals. The response comes after actress Maia Morgenstern, head of the State Jewish Theatre in Bucharest, received death threats. Anti-Semitism is a threat to democracy, and acknowledging the past is a key element of responsibility, both in the present and in the future, reads the statement signed by the Deputies at the initiative of the representative of Jewish communities in Parliament, Silviu Vexler.


    AIR POLICE The Spanish Air Forces unit deployed to Romania in early February, at the Mihail Kogălniceanu air base, has completed its mission. The 130-strong team of pilots and technicians with 6 Eurofighter Typhoon conducted air police missions under NATO command jointly with Romanian Air Forces troops using F-16 and MiG-21 LanceR. The Spanish unit will be replaced by a British Royal Air Force unit currently being deployed to Romania. (tr. A.M. Popescu)

  • World Bank forecasts

    World Bank forecasts

    The World Bank has announced an upward adjustment of its estimates regarding the growth of the Romanian economy, with the new figures standing at 4.2% for this year, 3.6% for 2020 and 3.2% for 2021. Experts expect a slow-down in the medium-term economic growth, particularly in the context of a rise of employment rates among higher education graduates at the expense of job seekers with lower education, which is predicted to feed into rising inequality.



    The World Bank also says the government will have difficulties keeping the budget deficit below 3% of GDP. The newly passed Pension Law and the planned public sector salary increases will put pressure on the consolidated budget deficit and reduce the resources for investments. The institution recommends that the governments priorities should include reforms in public administration and state-owned companies, as well as policies addressing social and regional disparities.



    The World Bank also suggests renewed efforts to reduce unemployment among youth and low-skilled workers, which will help reduce the constraints on demand and contribute to sustainable economic growth. “In the medium term, the focus of fiscal policy should be rebalanced, from increasing consumption to mobilizing investments, especially from European funds, to support sustainable convergence to the EU and social inclusion. Reforms in public administration and state-owned companies, enhancing the predictability of regulations, as well as appropriate policies for addressing social and spatial disparities should be on the governments priority agenda, the institution added.



    Meanwhile, another World Bank report shows that nearly 40% of the Romanian emigrants are higher education graduates, and warns that this generally leads to problems in the field of skilled workforce and consequently to a slow-down of the economic growth in the countries of origin. According to the report, the share of immigrants in Europe has risen sharply over the past 4 decades, with 1 in 3 immigrants now going to Europe. Intra-regional migration is also high in Europe and Central Asia, with 80% of the people choosing to move to other countries in the same region. “Migration also raises concerns of ‘brain drain of skilled-labour from countries of origin, as people with more education tend to emigrate more often around the region, the report also shows.


    (translated by: Ana-Maria Popescu)