Radio România Internațional

Tag: World Bank

February 10, 2025

PRESIDENT A third request to impeach president Klaus Iohannis may be analysed today by the leaders of the Romanian parliament in a joint meeting of the two chambers’ standing bureaus. The request is signed by 178 MPs, most of them from the self-proclaimed sovereigntist opposition (the Young People’s Party, AUR and SOS Romania) but there are also 26 signatories from the pro-EU Save Romania Union. Under the Constitution, the president can be removed from office only with a majority of the votes of senators and deputies, and only if the president breaches the Constitution. A total of 234 votes are needed, which the opposition does not have. On the other hand, the presidential candidate of the ruling coalition, the former Liberal leader Crin Antonescu, admitted that the coalition leaders could have a meeting with president Iohannis today, concerning the opposition’s impeachment attempt. In an interview on the public television station, Antonescu said that the meeting was not announced publicly and that the president may decide to step down. Mr. Iohannis has announced twice so far that he did not intend to resign. On December 21, his second and last five-year presidential term under the Constitution came to an end, but his term was extended until a new head of state has been elected and validated by the Constitutional Court.

BUDGET President Klaus Iohannis Monday signed into law the 2025 state budget and social security budget bills. These were endorsed last week by the joint chambers of Parliament. The budget is based on a 2.5% economic growth rate and a budget deficit of 7% of GDP. The finance minister Tanczos Barna stated in the joint parliament meeting that the 2025 state budget is ‘modest’ and is based on a prudent increase in revenues, ‘without exaggeration’. He also pointed out that the social security budget law provides ‘primarily for pension payments’.

SUPERMARKETS PM Marcel Ciolacu said legislation should be introduced so that all products in major stores should have the same mark-ups. One day ahead of a boycott on supermarkets announced for today by the supporters of the former presidential candidate Călin Georgescu, PM Ciolacu presented in an online post the Romanian products he had bought. Roughly 800,000 Romanians work in the over 4,500 large stores in the country, and the taxes paid by such chains account for 13% of the revenues to the state budget. Moreover, according to data from the agriculture ministry, 70% of the products in retail stores in Romania are made in Romania. Early this month, customers in several Balkan countries joined a large-scale boycott on supermarkets, amid rising food prices. The protests that started in Croatia have spread to Bosnia, Montenegro and Serbia.

ECONOMY An International Monetary Fund delegation concluded its discussions in Bucharest with the main institutions in charge of Romania’s monetary and fiscal policies. It was not an assessment mission, but only fact-finding one, and PM Marcel Ciolacu assured the IMF experts of the government’s determination to comply with the budget deficit target of 7% of the GDP and to implement the reforms undertaken in the National Recovery and Resilience Plan. The IMF made public its latest forecasts regarding the Romanian economy last autumn, when it estimated a 7% deficit for the end of 2025, the same as predicted by the Government. However, the Fund’s estimates are more optimistic both as regards the economic growth rate and the inflation. In turn, World Bank officials welcomed the government’s reform plan and the attention paid to investments, noting that Romania is a strong and resilient partner.

POLICE Romanian police are still searching for the attackers involved in Saturday’s violent incident in Urziceni (not far from Bucharest), in which 2 people were killed and 5 others wounded. On Sunday, police found several weapons buried in a courtyard in the town, including a hunting rifle, a pistol with non-lethal ammunition and a belt with 5 cartridges. According to initial reports, the conflict broke out between members of two clans, and the reason is said to be related to the relationship between two youngsters. Over 25 people were involved in the clash.

KOSOVO Kosovo’s left-wing nationalist PM Albin Kurti claimed victory in Sunday’s parliamentary elections, saying he was optimistic about forming a new government. Unlike in the previous term, however, his party will not be able to form a parliamentary majority on its own. Kurti and other Kosovo party leaders have made it clear that they have no intention of working together, making it unclear how a ruling coalition could be formed in Pristina. (AMP)

10 February 2025
February 4, 2025 UPDATE 2

BUDGET In Bucharest, the draft law on the 2025 state budget and social security budget were discussed in Parliament’s specialist committees on Tuesday. On Wednesday, the Senate and the Chamber of Deputies will meet in a plenary session to review the two bills, and the final vote is scheduled for Thursday. The discussions and the vote in Parliament are predictable, as the MPs of the ruling coalition (PSD-PNL-UDMR) have a majority. The draft budget for this year, based on a 2.5% economic growth rate and a budget deficit of 7% of GDP, was passed by the Cabinet on Saturday. ‘It is a restrained budget, based on a prudent forecast. It is a balanced budget, and in addition to investments, we have enough funds to pay salaries and pensions,’ the finance minister Tanczos Barna said.

ECONOMY 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.

MEETING At a meeting on Tuesday with the European Commission executive vice-president in charge of social rights and skills, quality jobs and training, Roxana Mînzatu, President Klaus Iohannis emphasised the critical role of education in fighting disinformation and manipulation, as well as in strengthening the democratic resilience of European societies. According to a news release issued by the Presidency, the topics on the agenda included the social dimension of European Union policies, ways to increase the EU’s global competitiveness, the Union’s strategy with respect to preparedness and resilience in the face of challenges, EU approaches to education and the involvement of the Romanian education system in the European context. In turn, the EC executive vice-president presented the main priorities of the new Commission, including in the areas of employment, social rights and EU-funded educational programs in Romania, as well as preparedness for crisis situations. On Monday and Tuesday in Bucharest Roxana Mînzatu also had talks with PM Marcel Ciolacu, with the Senate Speaker Ilie Bolojan, and with the Chamber of Deputies Speaker, Ciprian Şerban, about key EU and national priorities, with an emphasis on education, the labor market, social cohesion and the management of European funds.

CHURCH The Romanian Orthodox Church (the majority denomination in Romania) Tuesday celebrated 100 years since its promotion to the rank of Patriarchate. According to Patriarch Daniel, this anniversary is not only a celebration of the past, but also a call to gratitude towards our ancestors and a reflection on the role of our Church in the life of the Romanian people. The Romanian Patriarchate was, throughout its 100-year existence, an unquenchable torch of faith and national unity, he said. In turn, president Klaus Iohannis said the centennial of the Romanian Patriarchate is a moment of historic importance for the entire Romanian Orthodox Church and for believers in the country and in Romanian communities abroad. According to experts, Specialists recall that the Romanian Patriarchate was born on February 4, 1925, in a historical context marked by the Great Union of 1918, which brought together all the historical Romanian provinces in a one nation state.

MOLDOVA The European Union Tuesday allocated a new EUR 250 mln financial envelope to support the Republic of Moldova in 2025 in the face of Moscow’s ‘energy blackmail,’ after the halt in Russian gas supplies to the breakaway region of Transnistria, AFP reports. ‘Today we are taking an essential step to (…) help the Republic of Moldova regain control over its energy destiny,’ the EU Enlargement Commissioner Marta Kos, who is on an official visit to Chisinau, posted on a social network. In turn, the European Commission President Ursula von der Leyen denounced Moscow’s use of ‘energy to blackmail people’, promising to offer the former Soviet republic ‘full integration into the EU energy market, decoupling it from Russia ‘. After the war started in neighboring Ukraine, the Republic of Moldova says a ‘hybrid war’ is orchestrated by Russia, including the energy crisis, disinformation and electoral interference. Chisinau is facing a suspension of Gazprom supplies to Transnistria via Ukraine, after a transit agreement between Kiyv and Moscow came to an end. (AMP)

4 February 2025
World Bank revises downward Romania’s outlook

Romania’s economic growth rate will slow down in 2025, according to the World Bank.

The Romanian economy will register an advance of only 2.1% this year, compared to a level of 3.8% estimated in the middle of last year, according to the World Bank’s “Global Economic Prospects” report , made public recently. The institution’s forecast for next year is also revised downwards, from 3.8% to 2.6%. According to the World Bank, growth in Central Europe is forecast to rebound to 2.8% in 2025 and 3% in 2026, driven by robust private demand. However, export from Central Europe is expected to remain modest due to subdued growth in the euro area.

Investment, particularly in Poland and Romania, is projected to gain traction from structural reforms and delayed EU funding, experts of the international institution say. These countries have disbursed 19% and 33%, respectively, of their Recovery and Resilience Facility allocations, with approximately 13% of milestones achieved and positively assessed, the report shows. Despite the inflow EU funding, recently announced fiscal consolidation measures have contributed to notable downward revisions to Romania’s outlook since June.

At the beginning of February, an IMF mission will travel to Bucharest, for meetings with representatives of the new Romanian Government and the National Bank. The visit aims to analyze recent economic and financial developments and update the macroeconomic outlook. At the end of last year, Fitch rating agency revised downwards its outlook for Romania’s GDP growth for 2025 and 2026, to 1.4% and 2.2% respectively, given a less pronounced recovery in the euro area. In fact, the World Bank forecasts that, in the euro area, GDP would grow by only 1% in 2025, after estimating an advance of 1.4% in June.

The worsening prospects come against the backdrop of reduced consumption, low corporate investments and weak industrial development. The World Bank draws attention to the effects that the problems facing Germany, which is responsible for almost 30% of the euro area’s GDP, may have. In addition, the World Bank warned that potential additional 10% tariffs by the United States could decrease the already fragile global economic growth by 0.3% if the US trading partners impose their own tariffs. The potential additional tariffs would shrink US economic growth by 0.9%, estimated at 2.3% in 2025. Foreign direct investment in developing countries is now half their level in 2000, and global trade restrictions are five times higher than the average in 2010-2019, the World Bank reports.

20 January 2025
January 19, 2025

UNIONS Romanian trade unionists ask the politicians in power to talk directly with the people, because social tensions are high, and the powder keg could explode at any moment. This warning was issued by the Cartel Alfa federation in a statement that says political decision-makers have abandoned open communication with Romanians. The budget deficit must be corrected by improving collection, but the government refuses to take any measures outside of recipes that have proven ineffective for years, Cartel Alfa also says.

JOBS Nearly 33,000 positions are declared vacant by employers in Romania, the National Employment Agency announced. Most of them, over 20,000, are intended for unskilled applicants or primary and secondary school graduates. Another 10,000 jobs require high school, post-secondary school or vocational education. A little over 1,900 jobs require a degree, including positions as engineers in various sectors, computer programmers, financial and accounting experts or veterinarians. Also, employers from the European Economic Area offer employment through the EURES Romania network; 100 jobs are available in Germany and Spain, and another 27 in Austria, Ireland and Malta.

ECONOMY The World Bank has revised downward its outlook for the Romanian economy this year, mainly due to the fiscal consolidation measures recently announced by the government. In its latest global economic outlook report, the World Bank lowers its estimate for Romania’s economic growth rate to 2.1% this year, as against 3.8% forecast in June 2024. Also, in 2026, Romania’s GDP growth is expected to be 2.6% compared to 3.8%, as estimated in June. On the other hand, economic growth in Central Europe is expected to recover to 2.8% in 2025 and 3% in 2026, thanks to robust private demand. Export growth in Central Europe is expected to remain modest due to slow progress in the Euro area. The level of investments, especially in Poland and Romania, is expected to improve, thanks to structural reforms and EU funding.

MILITARY Hundreds of British military vehicles are on their way to Romania by ferry, in order to take part in a major NATO exercise, London announced. 2,400 British soldiers with 730 military vehicles will form the main battle group, supported by troops from five other NATO countries, with the United Kingdom assuming command of the land component. The new Allied Reaction Force (ARF) replaced the NATO Response Force (NRF) last year, and aims to respond quickly and effectively to any threat in times of peace, crisis or conflict.

MIDDLE EAST A senior Israeli official said that Israel received a list of hostages in Gaza who are to be released today by the Palestinian Islamist movement Hamas. Israel’s national security minister Itamar Ben-Gvir has resigned to protest the ceasefire agreement between Israel and Hamas, Israeli media reported today. Ben-Gvir’s far-right and ultranationalist party will leave the ruling coalition. After months of deadlock in the 15-month war in Gaza, a three-stage agreement was reached earlier this week. During an initial six-week ceasefire, 33 Israeli hostages held in Gaza are to be released in exchange for 1,904 Palestinians held in Israeli prisons, while the Israeli army is to pull out of densely populated areas in Gaza. Meanwhile, however, the army carried on its attacks in Gaza, where at least five people were killed.

HANDBALL The women’s handball team CS Rapid Bucharest face today at home the Danish side Odense Handbold, in the Champions League Group B. The day before, in Group A, the Romanian champions CSM Bucharest defeated the Slovenian side Krim Mercator Ljubljana 36-23, also at home. In the same group, Gloria 2018 Bistriţa-Năsăud were defeated, away from home, by the Croatian team RK Podravka Vegeta Koprivnica, 26-25. In the group standings, CSM are in 4th place, with 10 points, and Gloria are in 6th place, with 6 points.

TENNIS The Romanian-Ukrainian pair Gabriela Ruse/Marta Kostiuk qualified for the quarterfinals of the women’s doubles event at the Australian Open on Sunday, after defeating Hanyu Guo (China) / Alexandra Panova (Russia) 7-5, 4-6, 7-6 (10/6). Ruse and Kostiuk have played two Grand Slam women’s doubles semifinals together, one in Melbourne in 2023 and one at Roland Garros in 2024. In the quarterfinals, they will take on Su-Wei Hsieh (Taiwan) and Jelena Ostapenko (Latvia). (AMP)

19 January 2025
October 3, 2024

DEFICIT The Romanian minister for investments and European projects, Adrian Câciu, said a 7-year plan to reduce the budget deficit would be presented by the October 15 deadline set by the EC. According to Câciu, the plan is accompanied by reforms included in the National Recovery and Resilience Plan. The measures mainly consist in cutting unnecessary expenditure by public institutions and improved collection of government revenues.

EUROPEAN COMMISSION The commissioners nominated by member states and by the EC president Ursula von der Leyen will be interviewed by the European Parliament’s specialized standing committees next month. According to France Presse, the new College of Commissioners might therefore take office in early December. Romania’s representative Roxana Mînzatu was nominated for executive vice-president for skills, education and culture, quality jobs and social rights.

YOUTH European youth born in 2006, including in Romania, may enroll in the 2024 DiscoverEU programme, which provides free travel across the Union. A dedicated European Commission webpage is available for young people to enroll in order to win one of the 35,000 free travel permits and discount accommodation and meal cards. Each permit allows for one trip between March 2025 and May 2026. Winners may choose certain destinations in Europe, including ones on the DiscoverEU cultural route that connects EU capital cities, UNESCO sites and European heritage sites. Applications may be submitted until October 16. More than 300,000 youth have benefitted from this programme since its launch in 2018.

WB The country partnership framework between the World Bank and Romania for 2025-2029 was launched in Bucharest. PM Marcel Ciolacu says that in the next 3 years the estimated funding for Romania from the WB group will be over USD 6 bln, in favourable financial terms. The money is intended to help bridge the gap between the more developed and integrated urban communities and the poorer and more isolated rural environment. A USD 500 mln loan agreement has also been signed, for the funding of disaster risk management policies.

FOOTBALL Romania’s football champions, FCSB, play tonight away from home against PAOK Thessaloniki in the Europa League group stage. In the first round, the Greek champions coached by the Romanian Răzvan Lucescu were defeated by Galatasaray Istanbul, 3-1 in Turkey, while FCSB won against RFS (Latvia) 4-1 in Bucharest. (AMP)

3 October 2024
August 1, 2024 UPDATE

Loan. Romania signed a financing agreement with the World Bank worth 600 million euros for development policies regarding fiscal management and green growth. The loan was conditioned on the implementation of some structural reforms, the actions related to the agreement being completed prior to the negotiation, the Finance Ministry announced on Thursday. According to a press release, it is about important structural reforms to strengthen fiscal management and improve resilience in the face of climate change. The financial support from the World Bank has a maturity of 15 years, with repayment in a single installment, on July 15, 2039. In the 32 years of partnership between Romania and the World Bank, the institution granted Bucharest 13 loans, worth 1.7 billion euros.

Warning. The Romanian Ministry of Foreign Affairs warns that, in the context of recent security developments and the increased risk of escalation, a travel warning is in force for the State of Israel, level 8/9 – AVOID ANY TRAVEL. The ministry strongly recommends rescheduling for a later date, depending on the evolution of the security situation, all trips for tourist or pilgrimage purposes. The security situation is volatile, significant damage can occur suddenly, without prior warning, with the consequence of closing the land and air borders of the State of Israel – warns the MFA. A similar warning, level 8/9 – AVOID ANY TRAVEL, is also in place for the entire territory of the Islamic Republic of Iran. The MFA points out that, against the background of the recent developments in the security situation in the Gulf area, several air transport companies have taken the decision to introduce a detour route for flights transiting the Gulf, the Gulf of Oman or the Strait of Hormuz, given the real risk to passengers and crews’ safety.

Commissioner. The Social-Democratic Prime Minister Marcel Ciolacu stated that his colleague, MEP Victor Negrescu, is one of the options regarding the proposal that Romania is to make for the position of European Commissioner in the future European Commission. He specified that the Social-Democratic MEP Mihai Tudose refused a possible nomination for this position. August 30 is the deadline by which each member state of the European Union must propose two candidates for the post of European Commissioner in the future Community Executive. Re-confirmed for the second term as president of the European Commission, Ursula von der Leyen emphasized, in a letter, that she wants each country to propose a man and a woman. In the former community executive, Romania was represented by the liberal Alina Vălean, who held the Transport portfolio.

Support. Romania is among the nine member states to receive technical support for the preparation of their national plans for the implementation of the Pact on migration and asylum, the European Commission Representation in Romania announced. According to a press release, Belgium, the Czech Republic, Germany, Estonia, Greece, Ireland, Italy, Portugal and Romania have submitted requests for support and will receive specific advice from experts for four months. This support will help Member States prepare their national implementation plans, which must be submitted by early December.

Funeral. Thousands of people participated, on Thursday, in the state-organized funeral, in the capital of Iran, of the assassinated leader of the Palestinian movement Hamas, Ismail Haniyeh, a ceremony marked by calls to avenge his death, France Presse reports. He is to be buried in Qatar on Friday. The Iranian government has declared three days of national mourning after the political leader of Hamas was assassinated in Tehran in an airstrike. Ismail Haniyeh was assassinated shortly after the military commander of the Lebanese Shiite Hezbollah, another close ally of Iran, was killed in an Israeli strike in Beirut, Lebanon. The two attacks generated fears that the war in the East could expand. Prime Minister Benjamin Netanyahu, quoted by the Radio Romania correspondent in Israel, admitted that difficult days will follow, but emphasized that the Israeli army is prepared for any scenario.

Government. The Bucharest Government on Thursday approved an ordinance meant to regulate some measures for the management of European funds allocated to Romania through the Recovery and Resilience Mechanism. The document also includes provisions necessary for the fulfillment of milestones and targets within the NRRP. According to a press release by the executive, the government also adopted a draft law for the ratification of the agreement with the International Committee of the Red Cross regarding its privileges and immunities in Romania. The ratification of this international agreement, signed in Bucharest on March 19, 2024, corresponds to the political commitment of the Romanian Government to support the efforts of the international community to respond to the urgent protection and assistance needs of people affected by the conflict in Ukraine.

Olympic Games. Romanian rowers Andrei Cornea and Marian Enache won the gold medals in the men’s double sculls on Thursday at the Olympic Games in Paris. Ancuța Bodnar and Simona Radiș, Olympic champions in Tokyo, won the silver medal in the women’s double sculls event. The women’s four-man crew came out fourth, and the men’s four-man crew came out fifth. Romanian swimmer David Popovici won the bronze medal in the 100-meter freestyle, on Wednesday evening, in a final in which the Chinese Zhanle Pan won the gold with a new world record. According to the specialized press, the final was a formidable one, the fastest in history. On Monday, Popovici (19 years old) won gold in the 200 meters freestyle. On Fiday, On Romanian athletes compete in athletics, rowing and yachting at the Olympic Games in Paris. (EE)

1 August 2024
The price of energy, capped again

The Bucharest government has decided that energy prices will be capped this winter as well, as it was the case last season. Meanwhile, the Ministry of Energy must prepare, as soon as possible, the program for the cold season and present it to the government. Prime Minister Marcel Ciolacu has asked the relevant ministries to prepare the energy program for the winter, both for the population and for companies, and to present it to the executive

Government Spokesperson, Mihai Constantin:

Prime Minister Marcel Ciolacu has asked the ministries to prepare the provision of energy in the cold season for the population and for economic production. Also, today an emergency ordinance was approved which ensures the settlement of some payments for energy suppliers, so that the system will continue to be perfectly functional, with capped prices for citizens, as it is today.

Two years ago, energy prices began to rise spectacularly, worldwide, affecting both domestic and non-domestic consumers. The growth started following the COVID-19 pandemic and growing international demand. In 2022, Russia’s war against Ukraine and its unilateral decision to suspend gas supplies to some EU member states deepened the crisis, leading to record highs in energy prices. However, there are signs of stabilization this year, partly due to the policies and interventions of EU governments.After international prices fell, this trend is also observed in terms of electricity production.

In this context, the European Commission and the World Bank have recommended that Romania give up capping energy prices, in order to balance public finances and comply with fiscal rules in 2024. In the country, electricity and natural gas prices have been capped since November 1 2021, due to the liberalization of the line market starting July 1, the same year.Those who benefited most from this capping were those with low consumption. Thus, currently, for electricity, there are ceilings of 68 bani (about 13 eurocents) and 80 bani (about 16 eurocents) per kilowatt hour for low (0-100 kWh) and medium consumption (100-255kWh) respectively. Those who consume more, that is over 300 kilowatt hours, benefit from a capped price of 1.3 lei (26 euro cents).

Also, small and medium-sized enterprises, the food and pharmaceutical industry, community services and places of worship pay 1 leu per kWh (about 20 eurocents). Regarding the price of natural gas, it remains the same as before – household customers pay 31 bani (about 6 eurocents) per kilowatt-hour, and non-household customers pay 37 bani (about 7 eurocents). (MI)

11 August 2023
November 8, 2022

Conference. The 2022 UN Climate Change Conference continues in Sharm-el-Sheikh, Egypt. World leaders are under pressure to strengthen their commitment to combating global warming and provide financial support to poor countries, which are suffering the most. The President of Romania, Klaus Iohannis, has stated that Bucharest supports the leadership role assumed by the European Union in terms of limiting these changes and the joint commitment to reduce net greenhouse gas emissions. A report published today and commissioned by the presidency of the COP (Conference of the Parties to the United Nations Framework Convention on Climate Change) shows that southern countries will need more than 2000 billion dollars a year, until 2030, to finance their climate actions , of which almost half from foreign investors.

Development. Romanias development in the last three decades has been impressive, said, on Monday, Anna Bjerde, the vice-president of the World Bank for Europe and Central Asia, who visited Romania to celebrate 30 years of partnership. “Although there is still much to be done, the World Bank Group welcomes the efforts of all our counterparts and partners in the public and private sectors, who have contributed to the economic growth of Romania, one of the largest in the European Union”, Anna Bjerde said. So far, the World Bank has provided support for investments and public policy reforms through 73 operations worth over 13.4 billion dollars. Romania has always been able to count on the support and expertise offered by the WB during the 30 years of partnership, said Romanian Prime Minister Nicolae Ciucă, who attended the celebration event. According to him, the reforms regarding pensions, the minimum guaranteed income and public administration will also be carried out with the support of the WB.

Visit. On a formal visit to Romania, the President of the Croatian Parliament, Gordan Jandrokovic, is to meet today with the President of the Chamber of Deputies, Marcel Ciolacu, and with Prime Minister Nicolae Ciuca. He will also deliver a speech in the plenary session of the Chamber. According to an internal memorandum of the general secretary of the Chamber, the purpose of the visit is “to deepen the Romanian-Croatian inter-parliamentary dialogue in order to support common projects of major interest”. According to the memorandum, the visit also included talks with Romanias President Klaus Iohannis and the interim president of the Senate, Alina Gorghiu. Also, the official will travel to the villages of Caraş-Severin county (south-west), where he will meet with the local Croatian community. Croatias Central State Office for Croats Abroad estimates that 6,000 ethnic Croats live in Romania, while 5,408 people in Romania identified themselves as Croats in the 2011 census.

Elections. Parliamentary elections are taking place today in the United States, the so-called midterm elections. A new membership of the House of Representatives and a third of the Senates seats will be decided. Local offices, especially of governor and prosecutor, are also at stake. According to the Radio Romania correspondent, electoral analysts say that the Republicans have a chance to win the majority in the House of Representatives, but it is uncertain whether they will be able to take control of the Senate. In a year marked by a struggling economy and broad and serious concerns about the future of democracy, the latest opinion polls have highlighted that the voters main concerns are the economy and inflation. The election results will have a strong impact on the last two years of current President Joe Bidens term, from government spending to military support for Ukraine. At a campaign event, the White House leader declared himself optimistic about the Democrats chances in the elections. Former President Donald Trump is a strong factor in these elections, by supporting the Republicans who deny the results of the 2020 presidential elections, the Radio Romania correspondent reports.

Barometer. Russia is to blame for the war in Ukraine, and the main obstacle to peace is also Russia, according to more than half of the citizens who answered the Security Barometer of Romania, the November 2022 edition, made public on Monday. More than 70% of respondents believe that the most important thing is to stop the war, and 28% that it should be continued until Russia is defeated. The Romanian Security Barometer also shows that Romanians trust in state institutions, as well as in NATO and the EU, dropped compared to last year, but Romanians remain pro-Western.

Celebration. Christians today celebrate the Saints Archangels Michael and Gabriel, known as the leaders of the celestial armies and guides of souls to Heaven. Almost 1.5 million Romanians celebrate their name on November 8th. In Romania, about 633 thousand women and over 821 thousand men bear the name of Gabriel/Gabriela or Mihai/Mihaela or their derivatives.

Handball. The Romanian national team was defeated by France, the reigning Olympic champion, with a score of 35-21, on Monday evening, in Skopje, in Group C of the European Womens Handball Championship hosted by Slovenia, North Macedonia and Montenegro. It is the second consecutive failure in the group, after 28-29 with the Netherlands. The last matches in the group will take place on November 9, in Skopje, Romania – North Macedonia and France – Netherlands. Romania has participated in all editions of the European Championship with one exception (2006), and the best result was the bronze medal won in 2010. (MI)

8 November 2022
April 13, 2022 UPDATE

VISIT – Chamber of Deputies Speaker, Marcel
Ciolacu, will visit Kyiv on April 27, official sources say. The visit comes in
response to an invitation extended by the Speaker of the Supreme Rada, Ruslan
Stefanchuk. Ciolacu will visit various areas affected by the war, including
areas where the Russian army committed atrocities. Marcel Ciolacu might also
address the Supreme Rada. Senate Speaker Florin Cîțu also received an invitation to Kyiv,
and the details of his visit are yet to be made public.

UKRAINE – The presidents of Poland, Lithuania,
Latvia and Estonia are in Kyiv for talks with president Volodymyr Zelensky.
Lithuania’s president, Gitanas Nauseda, said the delegation is delivering a
strong message of political support and military assistance. Meanwhile, Ukraine
and Russia are consolidating their forces in Donbas, which is now Moscow’s
primary target. In the south, the Ukrainian army announced a counter-offensive,
seeking to liberate several towns and villages. Close to Odessa, Ukrainian
forces have pushed out Russian troops far from the northern borders of the
Kherson Oblast, putting an end to the siege on this city. According to our
correspondent, the Ukrainian General Staff announced the threat of a missile
attack from the Black Sea remains real. Russian naval forces have isolated the
conflict areas in the Black and Azov seas and are carrying out reconnaissance
missions.

NATO – We will continue our efforts to
ensure the prompt, determined and robust response of the North Atlantic
Alliance to any possible challenge or threat, Romanian President Klaus
Iohannis said on Wednesday, also thanking all NATO allies for their presence in
Romania. The head of state visited the Mihail Kogălniceanu Air Base 57,
together with the Romanian Prime Minister Nicolae Ciucă and the Belgian Prime Minister Alexander De Croo. NATO is
the strongest and most concrete security guarantee for member states, Nicolae
Ciucă said. The Romanian Prime Minister also said that an effective deterrence
and defense posture must be developed on the eastern flank of the Alliance. In
turn, Prime Minister Alexander De Croo said NATO is a defensive alliance, and
its member states are ready to defend their territory in case of an attack,
adding that Russia’s invasion of Ukraine represents a brutal assault on basic
EU and NATO values – freedom, democracy and human rights. A Belgian military
unit is currently deployed to Romania as part of NATO’s Response Force.

WORLD BANK – World Bank Group
president, David Malpass, is paying an official visit to Romania on Wednesday
and Thursday. According to a World Bank release, the visit is meant to reassert
the World Bank’s support for Romania’s efforts to ensure sustainable and
inclusive economic growth. David Malpass will meet representatives of the
public sector and partners of the World Bank. Furthermore, David Malpass will
also visit a project implemented with support from the World Bank in the field
of education, with a focus on the Roma community. The World Bank’s active
portfolio in Romania includes nine investment projects with a total value of
$1.8 billion and technical and analytical assistance services worth $124
billion.

REPORT – Impunity for perpetrators of
some human rights abuses was a continuing problem in Romania, whereas the
judiciary took steps to prosecute and punish officials who committed abuses,
reads the 2021 Report on Human Rights Practices for Romania, released by the US
Department of State. Still, authorities did not have effective mechanisms to
prosecute officials and delayed proceedings involving alleged police abuse and
corruption, with the result that many of the cases ended in acquittals, the
report further shows. According to the document, civilian authorities
maintained effective control over the intelligence service and the security
agencies that reported to the Ministry of Internal Affairs. The report also
addresses the harsh conditions of Romanian penitentiaries, which are
overcrowded and fail to meet international standards. Corrupt practices
remained widespread in 2021 despite several high-profile prosecutions, the
report also reads.

COVID-19 – 1,600 new cases of COVID-19
infection and 36 related deaths were reported on Wednesday in Romania. Most new
infections were signaled in Bucharest. Right now, some 1,900 patients are being
treated for COVID-19 in hospitals, of whom 253 in intensive care units. (MI
& VP)

13 April 2022
September 17, 2020

Covid-19
RO. 1,679 new cases of people infected
with SARS-CoV-2 were registered in Romania, compared to the last report, following
the tests performed at national level – the Strategic Communication Group
announced this afternoon. The total number of infections has thus reached
108,690. Also today, another 27 people infected with the new coronavirus have died,
the total number of deaths in Romania reaching 4,312. 460 patients are in
intensive care, the Group has also reported. In Romania, 11,540 people
confirmed with the new coronavirus are in isolation at home, and 5,807 are in
institutional isolation. Also, 38,167 people are in quarantine at home, and 7
in institutionalized quarantine.

Pandemic.
30 million infections and 945,000
deaths have been reported worldwide, according to worldomters.info. The United
States is the hardest hit by the Covid-19 pandemic, with more than 6,800,000
infections and more than 200,000 deaths. In the United Kingdom, the European
country with the highest number of deaths, over 41,000, the health system can
no longer cope with the demand for tests, and the government has announced that
it will rationalize them for the time being. Spain has exceeded 600,000 cases
and 30,000 deaths. As of Friday, Israel becomes the first country in the world
to apply the lockdown measure for the second time, due to the very large number
of new cases of COVID-19.

Elections. In
Romania, the electoral campaign for the local elections due on September 27 continues,
in conditions meant to prevent infections with the new coronavirus. According
to the Ministry of Interior, wearing a protective mask is mandatory, and for
all persons participating in electoral events or meetings, observational triage
and mandatory hand disinfection will be performed. The rules of access and
personal protection will be displayed in visible places. A physical distance of
at least one meter between participants will be ensured, including for actions
carried out on the street or from door to door. A maximum of 50 people will
attend the events and meetings held indoors, and the duration will be limited
to a maximum of two hours. In the case of events and meetings held outdoors,
the organizers must ensure that the number of participants is limited to a
maximum of one hundred. 41 county council presidents, about 3,200 mayors, over
1,300 county councilors and 40,000 local councilors will be elected. Election
had been scheduled for June, but was postponed due to the pandemic, and local
elected officials have extended their terms by half a year.

EP. The
European Parliament has endorsed the need to introduce new sources of revenue
into the EU budget, a crucial step in authorizing Brussels to borrow from the
markets and to implement the € 750 billion recovery plan decided by the EU. The
EP’s advisory but necessary vote paves the way for a European Council decision
and will allow ratification to begin in the 27 EU states, a process involving,
depending on the country, a vote of national and/or regional parliaments. The
aim of the Europeans is to complete this process of national ratifications by
the end of the year, so that it enters into force, as scheduled, in January
2021.

Economy. The
recovery of the world economy following the crisis caused by the coronavirus
pandemic could take five years, the chief economist of the World Bank (WB),
Carmen Reinhart has warned. She says that because of the crisis, inequalities
between the poor and the rich, as well as those between states, will be
exacerbated. For the first time in 20 years, global poverty rates will rise,
the chief economist added. In 2015, the year of the latest World Bank data,
about 734 million people worldwide lived in extreme poverty, accounting for 10%
of the world’s population, and their numbers have continued to rise since the
pandemic broke out.

Agreement. The Romanian
Government has concluded an agreement with a Chinese company for the
construction of Units 3 and 4 of the Cernavoda Nuclear Power Plant, in
southeastern Romania, the Minister of Ecoomy, Energy and Business Environement,
Virgil Popescu, has announced. He has stated that parteners are now being
sought for the project in the EU and NATO countries. The nuclear power plant in
Cernavoda is the only one of its kind in Romania. Units 1 and 2 are currently operational,
and together they produce about 20% of the country’s electricity consumption,
using the Canadian technology known as CANDU.

Contest. 13 young pianists out of the 55 contestants
who participated in the first stage of the Piano Section of the George Enescu
International Contest, the most prestigious cultural event organized by
Romania, have qualified for the second stage. The 13 are from China, South
Korea, Hong Kong, Great Britain, Poland, Romania, Russia, Turkey, Serbia. The
first stage of the competition, the Piano Section, took place online between
September 11-15. The second stage, eliminatory, will take place between
September 17-19. The recordings will be available online on the website of the
Contest www.festivalenescu.ro starting September 17, from 10.00 (Romanian
time). It is for the first time in the history of the Enescu Contest when the
first two stages of the sections are organized online, against the background
of the pandemic. Access to all online content of the Contest during this period
is free.

Football. The holder of the Romanian Football Cup, FCSB,
meets, tonight, away from home, FK TSC
Backa Topola, from Serbia, in the second preliminary round of Europa League. If
they qualify, the Bucharest team will
receive, in the third round, the visit of the winning team between Riteriai
(Lithuania) and Liberec (Czech Republic). Also today, FC Botoşani (northeast of
Romania) plays, at home, with KF Shkendija, from Northern Macedonia, and, if it
wins, it will meet, also on home turf, most likely, the English team Tottenham
Hotspur, the big favorite in the duel with the Bulgarians from Lokomotiv
Plovdiv. Eliminated from the Champions League preliminaries, the Romanian
champion, CFR Cluj (northwest), will play, this month, directly in the third
round, with the winner between Djurgaarden (Sweden) and FC Europa (Gibraltar).

Tennis. Romanian tennis player Irina Begu, (77 WTA) is playing,
today, in the second round of the WTA tournament in Rome, against the British
Johanna Konta (13 WTA). Also today, in the doubles, the Romanians Simona Halep
and Monica Niculescu will play, in the eighth finals, with the Japanese Shuko
Aoyama and Ena Shibahara. On Wednesday, the Romanian Simona Halep, world number
2, qualified for the eighth finals of the tournament in Rome, where she is first
seed, winning with the score of 6-3, 6-4, the match against the Italian Jasmine
Paolini. In the doubles, the pair formed by the Romanian Raluca Olaru and
Anna-Lena Friedsam (Germany), qualified, on Wednesday, for the quarterfinals of
the tournament in Rome, after defeating with 6-4, 6-3, the team Miyu Kato (
Japan) and Sabrina Santamari (USA). The tournament in Rome is part of the
Premier 5 category and takes place without spectators, and the players must
follow strict rules to prevent infection with the SARS-CoV-2 virus. The prizes
are worth a total of almost 1.7 million euros. ( M. Ignatescu)

17 September 2020
January 9, 2020 UPDATE

ROMANIA-EU RELATIONS – Romania is a serious,
responsible partner committed to attaining EU goals and implementing
regulations adopted by community institutions, Romania’s Prime Minister Ludovic
Orban said on Thursday on the sidelines of his meeting in Brussels with
European Commission President Ursula von der Leyen. The EU is Romania’s ally as
it prepares for the digital era, relying on Bucharest’s support, which enjoys
an outstanding reputation in this field, the EU official said in turn. The
agenda for talks also included the economy and the judiciary. The two officials
also discussed the issue of Romania’s Schengen accession, our country’s plea
having been met with both support and opposition from member states. Prime
Minister Orban expressed hope Romania would join the travel-free area within a
reasonable timetable.

ROMANIA-NATO
RELATIONS – Prime Minister Ludovic Orban and NATO Secretary General Jens
Stoltenberg met in Brussels on Thursday. They discussed, among other things,
cooperation within NATO, the developments in the Middle East and security in
the Black Sea region. Secretary Stoltenberg hailed Romania’s efforts to earmark
2% of its GDP to defense spending, pointing out the Black Sea region is of
strategic importance to NATO. Jens Stoltenberg thanked Romania for our
country’s participation in the Iraq missions, stating NATO has the possibility
of doing more in the Middle East, just as President Donald Trump has asked.
Ludovic Orban said the North Atlantic Treaty Alliance is a major partner of
Romania, reiterating Bucharest’s full support for the fulfillment of the
organization’s goals. The Romanian Prime Minister said Romania would continue
to take part in NATO missions and initiatives concerning NATO’s advanced
presence on its eastern flank, as well as in Afghanistan, Kosovo and Iraq.

IRAN -The
escalating tensions in the Middle East are in the interest of neither the
region, nor the international community, Romania’s President Klaus Iohannis
Klaus Iohannis told a press conference on Thursday. He gave assurances that
Romania has so far not been affected by any of the developments, neither have
been its citizens and military deployed to the area. Romania is in permanent
coordination with NATO and the EU as well as with its strategic bilateral
partners, first and foremost the United States, as regards its fundamental
security goals, Klaus Iohannis went on to say. The Romanian president also
hailed Wednesday’s declarations of President Donald Trump, underlining that the
common fight against terrorism in Iraq should definitely continue.

FORECAST
– The World Bank has revised up to 3.9% its forecast for Romania’s economic
growth in 2019, 0.3 % more than the forecast in June last year, shows the
Global Economic Prospects report published on Wednesday. According to the same
sources Romania is expected to register a GDP growth of 3.4%, 0.1 % higher than
the previous forecast. In spite of improved performances, the World Bank
believes the GDP growth will significantly slow down to 3.1% in 2021 and 2022.
The World Bank estimates a slight economic growth all over the world in 2020,
which is expected to reach 2.5% after the slowdown last year. The World Bank
has cautioned about this growth, which it described as fragile and subject to
potential risks.

HANDBALL
– The Romanian men’s handball team is in Italy. There our handballers are to
take on Italy, Georgia and Kosovo over January 10-12 in the first stage of
their qualification for the World Championship in Egypt next year. Coach Rares
Fortuneanu, who is also coaching French side Saint Raphael, has voiced optimism
concerning Romania’s qualification for the final tournament next year, the
first attended by 32 sides. We recall that the Romanian women’s representative
had made it to the main groups of the World Championship held last month in Japan.

(Translated by V. Palcu & D. Bilt)

9 January 2020
The Romanian and world economy in 2019

Romania’s economy will grow by 3.5% in 2019 and by 3.1% in 2020, down one percent as compared to the forecast of June 2018, as indicated by the 6-month report Global Economic Prospects recently published by the World Bank. This international financial institution estimates that in Europe and Central Asia, the economy slowed to 3.1% in 2018, down from 4% in 2017, reflecting slumping economic activity in Turkey in the second half of last year. If we discount Turkey, regional growth is stable at 2.9% in 2018, because slowing economic activity in Bulgaria and Romania was compensated for by increased activity in the east of the region, which benefited from higher crude oil prices last year, according to the World Bank.

The rise in the world economy is expected to slow down to 2.9% this year, as compared to 3% last year and 3.1% in 2017, while the growth rate of world trade is expected to slow down to 3.6% this year as compared to 3.8% last year and 5.4% in 2017. The World Bank expects that this will affect industries all across the world and that there is a growing risk for the global economy, with worsening prospects against the background of harsher financial conditions, growing trade tensions, and turbulence on financial markets in some emerging or developing countries. World Bank Chief Executive Officer Kristalina Georgieva has pointed out that “At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead.

At the same time, the trade war between the US and China will have repercussions across the world, and could also increase instability on financial markets, which will affect developing economies. Computations show that the growth of the largest economy in the world, the US, would slow down to 2.5% this year from 2.9% in 2018, while China is supposed to have 6.2% this year from 6.5% in 2018. The Eurozone is expected to grow by 1.6% this year, as opposed to 1.9% last year, the report indicates. As for Romania, the World Bank expects it to see a 4.1% growth in GDP for 2018, down one percent from the June 2018 forecast. The growth rate is expected to go down even further in 2021, when it is forecast to reach 2.8%. Romania continues to be a dependent economy and to have a trade deficit, with Romanians spending on average 48% of their family budget on food, centralised data indicate. Speaking on Radio Romania, professor Mircea Cosea did an analysis of foreign trade right now:

“We have specialised in an industry that overwhelmingly manufactures equuipment and parts for the car-making industry. Romanian has become a great producer of components and parts, all that has to do with car manufacture, meaning an industry that is detached from the technical progress. While others lead by designing and conceiving the product, we manufacture it in factories where workers assemble it. This is not bad, either, because it creates jobs. Romanian exports today depend 50 to 70% on industrial exports to a few developed countries, usually three, Germany, France, and Italy, to which we export parts for cars, engines, components, all sorts of things. If the car market collapses in the West, and that moment is not far off considering whats going on with movements in France and Germany, but also because of Mr. Trump’s trade war. We might find that there will be no more orders for cars, and we won’t even be able to export that. What else are we exporting right now? We also export various other types of industrial products, even from the IT area, but over 60% of the value of these products are imports. We have an economy dependent on developed countries, generally the core of the EU, and we depend on them for the good running of the market.

On the other hand, experts are expecting a rise in banking interest rates this year, after a long period of time in which, in an attempt to combat the effects of the financial crisis, central banks have kept interest rates at unusually low levels. The effects will probably make themselves felt in Romania too, according to financial analyst Aurelian Dochia:

“I believe the prospects for 2019 are fairly good, but they are strictly dependent on the evolution of the Romanian economy. Many economists and international institutions believe that the growth rate will fall, including in Romania, even if it will be much higher than in other European countries, especially in the Eurozone. And that means that the pace of growth in the banking system and in lending might see a more moderate rate.

Aurelian Dochia believes that the measures taken by the National Bank of Romania on limiting lending to private individuals, which came into effect on January 1, will only affect a small category of persons, and will not have an overall negative effect on bank lending.

11 January 2019
April 22, UPDATE

FINANCES – Romania will keep its deficit below 3%, as undertaken before international financial institutions, and the measures taken in 2018 will secure sustainable economic growth both for this year and in the future, the Finance Minister Eugen Teodorovici said at a meeting with Poul Thomsen, director of IMFs European Department. According to a news release issued on Sunday by the Ministry for Public Finances, on April 20-21 Eugen Teodorovici took part in the spring meeting of the IMF and World Bank in Washington. The Romanian official also had a meeting with Cyrill Muller, World Bank vice-president for Europe and Central Asia. The Finance Minister proposed to the WB leaders a new approach on loan granting, which would make spending more flexible, depending on the stage of preparation and implementation of projects. According to the Ministry, the agenda of the Romanian delegation also included meetings with representatives of investment banks, rating agencies and officials of international financial institutions.

CONFERENCE – The Speaker of the Senate of Romania, Călin Popescu-Tăriceanu, and of the Chamber of Deputies, Liviu Dragnea, will take part on Monday and Tuesday in the Conference of Speakers of EU Parliaments, held in Tallinn, Estonia. Taking part will be over 40 speakers of national parliaments, as well as the President of the European Parliament, Antonio Tajani. The main topics on the agenda are the future of the European Union and the EU security and defence.

HUMAN RIGHTS – Corruption remains widespread in Romania, and bribe-giving is still common practice in the public sector, reads the 2017 Country Report on Human rights issued by the US State Department. Laws were not always implemented efficiently, and officials, judges included, sometimes engaged in corrupt practices with impunity. Immunity from criminal prosecution held by existing and former cabinet members who were also members of parliament sometimes blocked investigations, the report also reads. The same document notes that some Romanian politicians own or control media organisations, influencing their editorial policy. As regards prisons, the report mentions that they remained overcrowded and in breach of international standards, although the authorities took some steps to address the situation. In Romania, the US State Department says, some cases of police abuse were reported in 2017 as well, most of them going unpunished. So were cases of anti-Semitism, Holocaust denial, and discrimination against the Roma, people with disabilities and sexual minorities. Child abuse and neglect cases were also reported.

ANTI-CORRUPTION – The Government of Romania intends to notify the Constitutional Court with respect to President Klaus Iohannis decision not to dismiss the chief prosecutor of the National Anti-Corruption Directorate, Laura Codruta Kovesi. A meeting in this respect will be held on Monday by PM Viorica Dancila and the Justice Minister Tudorel Toader, the one who requested the dismissal. According to him, the President gave no judicial or managerial arguments to substantiate his decision, which was exclusively political in nature. The head of state said the dismissal request was ungrounded, which was also the official opinion of the Superior Council of Magistracy.

TENNIS – Romanias womens tennis team defeated Switzerland in the playoffs for the Fed Cup World Group, hosted by the north-western Romanian city of Cluj-Napoca, general score 3-1. In the last match of the competition, the Swiss pair Viktorija Golubic/Jil Teichmann defeated Sorana Cîrstea and Mihaela Buzărnescu. In the first match of the day, world no 1 Simona Halep outplayed the Swiss Patty Schnyder and won the decisive point for Romanias qualification. The previous day, Halep won against Viktorija Golubic, while Irina-Camelia Begu defeated Timea Bacsinszky. Demoted in 2016 from Fed Cups World Group, Romania thus returns to the world tennis elite in the 2019 season.

(translated by: Ana-Maria Popescu)

22 April 2018
March 19, 2018 UPDATE

WEATHER – Weather remains extremely cold in Romania, as meteorologists have issued a code yellow warning for sleet, snow falls, black ice and gusts of wind, valid until Tuesday afternoon. The warning concerns 19 counties in the west, south-west, south and south-east, as well as the capital city Bucharest. Over the past days snow falls have disrupted railway, road and air traffic, and several towns and villages in the south of the country experienced blackouts.

JUSTICE LAWS – The special parliamentary committee on the justice laws Monday endorsed some of the changes requested by the Constitutional Court. These include by-passing the president of the country in the procedure for appointing and dismissing the chiefs of the High Court of Cassation and Justice, and transferring this role to the Higher Council of Magistracy. Also, the head of state is no longer entitled to reject nominations for trainee judges and prosecutors. According to Radio Romanias correspondent, the committee will carry on debates on the 3 justice laws on Tuesday. After all drafts have been brought in line with the Constitutional Court decisions, Parliament will cast a final vote.

WORLD BANK – The partnership between the Government of Romania and the World Bank may be strengthened in the coming years, through joint infrastructure development projects, deputy prime minister Viorel Ştefan said. According to a news release issued by the Government, on Monday he had a meeting with a World Bank delegation headed by Tatiana Proskuryakova, country manager for Romania and Hungary, in the context of consultations for the forthcoming Partnership Framework, 2018 – 2023. On June 14, the document will be submitted for approval by the WB Board.

FLU – In Romania, the number of deaths caused by the flu has reached 104, the National Centre for Infectious Disease Monitoring and Control announced on Monday. According to the Healthcare Ministry, since the start of the season more than 1,400 cases have been confirmed. Over 1,000,000 people have received flu vaccine shots. Experts do not rate this as an epidemic.

RUSSIA ELECTION – Vladimir Putin Sunday won his 4th term as president of Russia, with about 77% of the votes. The turnout was over 67%. Observers with the Organisation for Security and Cooperation in Europe (OSCE) Monday stated that the election had been well administered, in spite of a lack of genuine competition and of pressure aimed at increasing turnout. Radio Romanias correspondent in the Russian Federation mentions that it was for the first time that Moscow organised elections in Crimea, where Vladimir Putin, who has been running the country for 18 years as either president or prime minister, got over 90% of the votes. Western capitals and Kiev announced they would not recognise the elections in the Ukrainian peninsula of Crimea, annexed by Russia in 2014. Vladimir Putin will head Russia for another 6 years, against the background of a highly strained relationship with the West. After the conflict in Syria, the Ukrainian crisis and allegations of Russian interference with Donald Trumps election in the USA, Londons accusations that Moscow poisoned a former Russian agent on British territory put further pressure on these relations.

UK-RUSSIA – The EU firmly condemns the poisoning in the UK of the former Russian double agent Sergei Skripal and his daughter, and takes extremely seriously Londons assessment that it is highly likely that Russia was behind the attack, reads a joint statement by the EU foreign ministers. The Union is shocked with “the first offensive use on European territory in 70 years of a Soviet-designed military-grade nerve agent, the statement also says, expressing unqualified solidarity with and support for the UK. In turn, on Monday Kremlin urged Britain to either present evidence of its involvement, or apologise. After the UK expelled 23 Russian diplomats and froze bilateral contacts, Russia responded with a similar measure and also shut down the British Council centres on its territory. Last week, the Romanian Foreign Ministry expressed solidarity with Britain.

THREAT – There are nearly 30,000 radicalised people who represent a potential terrorism threat in Europe at present, the Europol director Rob Wainwright warned on Monday, adding that at any time these might rent a truck and kill innocent people. Wainwright also mentioned the return to Europe of people who have fought in Syria and Iraq as part of jihadist groups like the Islamic State.

(translated by: Ana-Maria Popescu)

19 March 2018
Economic Forecasts

Just like most European Union Member
States, Romania has reported a significant economic growth for 2017 and is
anticipating similar results for 2018. Our country has all the more reason to
feel proud, as there is a wide percentage gap separating it from the other
Member States. Take France, for instance, whose GDP last year hit its highest
level in the last six years, standing at merely 1.9%. Romania on the other hand
had a 6% growth rate, which made France Press news agency label it as Europe’s
tiger.

On Sunday, the National Forecast Commission made public its
predictions for 2018, upgrading to 6.1% its GDP growth forecast. At the same
time the Commission maintained its forecast for 2019 and 2020 at 5.7% and at 5%
for 2021. Although positive, the forecasts of Romania’s external partners are
less optimistic. The European Commission expects Romania’s economic growth to
stand at 4.4% in 2018, which mirrors the latest forecast of the International
Monetary Fund. The World Bank estimates a 4.5% GDP growth rate, whereas the
European Bank for Reconstruction and Development estimates a growth rate of
4.2%.

Yet what makes Romanian economy so competitive? What is the secret behind
this success, in a country facing severe labour shortage, rising migration and
waning demographics? While the repeated Governments of the ruling coalition in
Romania, made up of the Social-Democratic Party and the Alliance of Liberals
and Democrats, have taken credit for Romania’s bolstering growth in 2017,
Romanian citizens themselves are more likely to have contributed to this
phenomenon, by increasing consumption.

Both economic pundits and Central Bank
experts agree that Romania’s growth rate is likely to slow down in 2018,
evidence of which can be found in the latest forecasts by international
financial institutions. It’s unlikely, experts argue, that the authorities will
be able to uphold the current growth parameters, given that this was the effect
of salary increases. In a recent report, a commercial bank in Romania points
out that the recent fiscal uncertainty and populist measures have kept
investments away.

Moreover, should the Government resort to additional tax
increases and cuts in public spending so as to observe the 3% budget deficit
target, this might further slow down economic growth. As for the industrial
output, it is expected to go up due to the rising demand on European markets.
Still, imports are expected to rise faster than exports, as they cover a large
part of the domestic demand. Therefore the coming years might prove relatively
difficult for the Romanian economy, and the tiger might turn out to be yet
another bubble.

5 February 2018