Radio România Internațional

Category: The Week in Review

  • The Week in Review 17-23 August

    The Week in Review 17-23 August

    Government takes new measures in the public healthcare system


    The Romanian Government announced that salaries in the public healthcare sector, which employs nearly 200,000 people, will be raised by 25% as of October 1. The measure, which will be endorsed in next week’s Cabinet meeting, was followed by criticism from the Opposition and similar demands from other categories of state-sector personnel, including teachers and policemen. Also next week, the Government will send a bill to Parliament, with clarifications on how patients can give doctors the so-called “bribes.” The Justice Ministry will draw up a law laying down the terms under which patients may offer supplemental contributions to the doctors who have treated them. Such contributions will not qualify as bribery and will not entail prosecution if they meet 3 criteria: they have been volunteered by patients, they have been offered after the treatment is over and they have been declared by recipients for tax purposes.



    Parliament to vote on the draft Fiscal Code on Monday


    On Monday the Parliament of Romania is to convene in a special session to discuss and vote on the President’s request to re-examine the new Fiscal Code bill. The parliamentary parties have agreed on the key technical details of the Code. The VAT for foodstuffs is to be cut from 24 to 20% as of January 1, and further to 19% in 2017. The additional excise on fuels remains in place next year as well, while provisions regarding the scrapping or keeping of other taxes will be decided on at a later date. Last month, President Klaus Iohannis sent the draft Fiscal Code back to Parliament, which had unanimously endorsed it. The President argued that its enforcement was not sustainable. PM Victor Ponta on the other hand says the new Code is sustainable and the roughly 1.5-billion euros impact of the VAT cut on the state budget may be offset by improved collection of budget revenues, put at 2.2 billion euros.



    Former MPs are facing corruption charges


    The former presidential adviser and interior minister Gabriel Berca has been taken into detention pending trial, under charges of influence peddling. The same measure was taken against Mihai Banu, a Liberal Democratic Deputy at that time, and his son. According to prosecutors, between 2010 and 2012, Gabriel Berca claimed and received, via Mihai Banu, 185,000 euros from a businessman. The money was split between Berca and the National Liberal Party, which he was a member of. In exchange for the bribe, Berca promised to use his influence to get the government allot a substantial amount to a particular local administration.



    Moldovan Defence Minister visits Bucharest


    The formation of a new pro-Western Government in Chisinau paves the way for stepping up bilateral projects, the Romanian Foreign Minister Bogdan Aurescu said during a meeting with the Defence Minister of the neighbouring Republic of Moldova, Anatolie Salaru. Aurescu emphasised Romania’s constant support for Moldova’s European accession efforts and for its larger campaign to modernize the state, including in the defence sector. In turn, Salaru presented the priorities of his term in office and the main action lines in reforming the country’s defence sector, while also thanking Romania for its consistent and substantial support. He also had a meeting in Bucharest with his Romanian counterpart, Mircea Dusa, who announced that a NATO liaison office will be opened this autumn in Chisinau, to support Moldova’s NATO accession and the inter-operability of its army with the Allied forces. The vice-president of the Moldovan Liberal Party, Salaru was appointed defence minister last month in the new Cabinet headed by the Liberal Democrat Valeriu Strelet.



    Heavy rainfalls follow extreme heat wave in Romania


    After more than two months of extreme heat, heavy rainfalls have hit Romania. The drought has however caused substantial damages already in most regions of the country, with farmers putting losses at more than 2 billion euros. The Government made an analysis of the measures that can be taken to help farmers whose crops have been affected, including aid from the European Commission for large-scale farms. For small farms, the authorities promised aid from the state budget. The most affected crops are maize, sunflower and soy, but according to experts wheat, rape, vegetables and fruit will also stand to suffer. One immediate consequence will be a spike in fruit, vegetable and grain prices, producers warn.



    Europa League playoffs bring mixed results for Romanian teams


    The football team Astra, from the southern Romanian town of Giurgiu, defeated on Thursday, on home turf, 3-2, the Dutch team AZ Almaar, in the first leg of the Europa League playoffs. After the Dutch players scored twice in the first 15 minutes, Astra recovered spectacularly and took the lead by half time. Also on Thursday, in Bucharest, Romania’s defending champions, Steaua, was outplayed 0-3 by Norway’s Rosenborg Trondheim. Viewed by sports media as quite shameful, the defeat comes after last month Steaua was kicked off the third preliminary round of the Champions League by the Serbian team Partizan Belgrade.

  • The Week in Review August 10-14

    The Week in Review August 10-14

    Romania is wrestling with the effects of a prolonged drought


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


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



    Annual inflation has hit a new all-time low


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


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


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



    A surprising announcement from Romanias Royal House


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



    European funds for refugees and securing Romanias borders


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

  • The Week in Review 3 – 9.08.2015

    The Week in Review 3 – 9.08.2015

    Severe drought in Romania

    The drought in Romania has already compromised more than a quarter
    of this year’s crops, which amounts to almost 2 billion euros worth of damage-
    say the farmers’ representatives. They have called for the authorities’
    assistance to be able to continue their activity but for the moment they have
    only received promises related to aid for small crops. For large-scale
    exploitations the Agriculture Ministry has to draft ampler funding schemes, for
    which they need the approval of the European Union. The region of Moldavia (in
    the east) is one of the most affected. Other areas severely affected by the
    drought are a larger zone in Dobrogea (in the southeast) as well as the
    southwest and northwest of the country. In another development, the prolonged
    drought has caused the Danube river flow to drop at alarming levels, which
    makes river traffic difficult in certain areas. According to experts, the
    situation of the Danube river flow will remain the same in the coming days.










    The National
    Agency for Fiscal Administration (ANAF) reports a good rate of tax collection


    Early this week the National Agency for Fiscal Administration- ANAF
    reported a good rate of tax collection for the first half of 2015. In July,
    ANAF managed to collect for the state budget further money worth almost 20
    billion lei, the equivalent of almost 4.5 billion euros, 7.2% more than in the
    same period of last year. All in all, in the first 7 months of 2015 the Fiscal
    Authority collected over 9 billion lei, that is 2 billion euros, which is more
    than in the same period of 2014. The revenues gathered from the VAT collection
    rose, even in the context of a reduced VAT for foodstuffs from 24% to 9%. Good
    results have been reported despite the effects of revenue contraction, given
    the implementation of such fiscal measures as the 5% drop in the health
    insurance contributions or the exemption from taxation of reinvested profit.
    ANAF is determined to continue its fiscal anti-fraud offensive, proof thereof
    being the decision announced at the end of this week, to verify all the
    individuals who cannot justify their assets. Targeted are the owners of real
    estate, luxury cars or substantial sums of money deposited in bank accounts in
    Romania and abroad.










    Disputes over
    the new Fiscal Code in Romania

    The governor of
    the National Bank of Romania, Mugur Isarescu, on Thursday warned the
    authorities once again on the economic imbalances that could be created by
    further fiscal relaxation measures wanted by the government and included in a
    new Fiscal Code. The government wants this new code to take effect as of the
    beginning of 2016. The national bank governor said that for a sustainable
    economic growth, problems related to productivity and jobs should first be
    solved. Mugur Isarescu’s declarations were strengthened by the head of the IMF
    mission to Romania, Andrea Schächter and the IMF resident representative Guillermo
    Tolosa who recommended to the Romanian authorities to be moderate in applying
    the fiscal relaxation measures provided for in the new Fiscal Code and to
    revise the expenditure plan. In their view, these conditions are a must for
    Romania to be able to reduce its public debt and relax its fiscal burden. The
    new Fiscal Code was not approved by the Romanian president, Klaus Iohannis, who
    sent it back to Parliament for reexamination. An extraordinary session was
    convened for this purpose at the end of August.








    Lukoil under
    the scrutiny of Romanian justice

    The Romanian branch of oil giant Lukoil has
    concluded several deals with offshore companies controlled by people facing
    various charges in the European Union – say the investigators of the case
    involving several officials of Petrotel Ploiesti in central Romania and its
    majority shareholder, the Dutch company Lukoil Europe Holding. Prosecutors from
    Ploiesti said that Lukoil was buying crude oil from Kazakhstan by means of
    several EU-based companies at higher prices selling the products at lower
    prices than the raw materials and processing costs to other companies within
    the group. That caused significant damage to the Ploiesti-based company. In the
    period 2003-2014 the difference between external payments made by Petrotel
    Ploiesti and the revenues obtained was of more than 4 billion euros.











    A new US ambassador in Bucharest

    The US Senate on Thursday confirmed diplomat Hans Klemm for the
    position of ambassador to Romania. Hans Klemm, 57, was the US ambassador in East Timor and senior
    coordinator for rule of law and law enforcement at the American embassy in
    Kabul. The US official has pledged to consolidate the relations between the two
    countries and support anti-graft fight in Romania. According to him, Romania is
    a friend and a strategic partner of the United States, and Romania is not
    vulnerable to Russia’s pressures in terms of energy supplies. The previous US
    ambassador to Romania was Mark Gitenstein, whose mandate ended in December
    2012.











    Romanian
    footballers in European competitions

    Romania will have two teams in the Europa League’s
    play-offs. After a one-all draw on home turf, Romania’s champions Steaua were
    kicked out of the qualifying play-offs of the Champions’ League by Partizan
    Belgrade, which thrashed the Romanians four-two on Wednesday. Steaua will now
    be playing in the Europa League, where another Romanian side, Astra Giurgiu has
    qualified. On Thursday the footballers from Astra secured a two-one home win
    against English side West Ham United. The match in London ended in a two-all
    draw.

  • The Week in Review, July 26 – August 1

    The Week in Review, July 26 – August 1

    The Parliament in Bucharest will meet in late August in an extraordinary session to debate changes proposed by President Klaus Iohannis to the new Fiscal Code. On 17 July, the head of state refused to sign the bill into law and sent it back to Parliament because he believed it would cause economic imbalance. Interim Social Democratic Party Chairman Liviu Dragnea said he did not believe changes were necessary, but that the Ministry of Finance would run an additional analysis on the budget impact of cuts in taxes, which should convince both the presidency and the central bank that reducing taxes was sustainable. In turn, the Liberal opposition announced that it wants a technical debate on the law before the vote in Parliament. Liberal co-chairman Alina Gorghiu said that the Liberals would vote the law in a form that supports fiscal relaxation measures. The National Bank Governor Mugur Isarescu pointed out that the main tax cuts, such as reducing the VAT and social insurance contributions in 2016, eliminating or reducing other taxes that bring in important contributions to the budget, would be inapplicable because of their impact on the GDP. Isarescu claims that the new Fiscal Code would put a 2.3% dent in the gross domestic product.



    The government issued its first budget adjustment for this year, distributing the supplementary income gathered in the first half of the year. According to the authorities, 4 billion lei were collected, benefiting mostly the Ministry of Labor. The surprise this year was the fact that major funding was cut from the Ministry of Transportation, which manages major infrastructure investments, while the social protection side, represented by the Ministry of Labor, receives the highest funding, in order to pay increased amounts for social assistance to children and retirees, among other things. The ministries of finance, defense, interior, education, environment, and agriculture, and the intelligence services also got more money. The opposition criticized the government for the way in which it has distributed the money in this executive order. The liberals are accusing the government that it has allocated the money on pork barrel principles, giving it to local administrations led by Social Democrats. They also claim that PM Victor Ponta tries to garner support from the Social Democratic leadership. This draft order includes salary boosts to high order dignitaries, applicable starting August 1st.



    The presidency in Bucharest, alongside the Ministry of Foreign Affairs, have saluted the new government in the Republic of Moldova, led by Liberal Democrat Valeriu Strelet. President Klaus Iohannis said, quote: “Our partners should be convinced that they would have in Romania the most support in overcoming economic difficulties and in continuing on their pro-European road. The new executive in Chisinau is supported in Parliament by the three pro-European parties, the Liberal Democrat, Democrat and Liberal. The new cabinet mentions among its priorities a new anti-corruption strategy, as well as inviting a mission of EU experts to assist the authorities in Chisinau in reforming the judicial system. In foreign relations, the government wants to pursue European integration and improving foreign relations.



    Romanian football side Astra Giurgiu tied on Thursday in an away game, 2-all, with West Ham United in the first leg of the third preliminary round of the Europa League. In the same stage of the competition, another Romanian side, ASA Tg. Mures, lost at home 0-3 against the French team AS Saint-Etienne. On Wednesday, Romanian champions Steaua Bucharest tied 1-all at home against Serbian side Partizan Belgrade in the first leg of preliminary round three of the Champions League. The second leg games are scheduled for next week.




    An extreme heat wave has swept over Romania these last few days. The heat index was very high, over 80, with temperatures reaching 40 degrees centigrade in places. Southern and eastern counties have been hit by severe drought, which has dried up water wells. The Danubes level has reached a record low, with the most important crops, such as wheat, corn and sunflower, being severely affected. Experts warn that unless sufficient rain comes over the next few days, crops would be compromised, causing severe financial losses.



    Romanian writer Mircea Cartarescu was awarded the Austrian state award for lifetime achievement at the Salzburg European literature festival. This was announced as early as this April. Mircea Cartarescu is the first Romanian to win this prize since 1970, when Eugene Ionesco was granted this prize, which has been given since 1965. Among past winners are Vaclav Havel, Salman Rushdie and Umberto Eco.

  • The Week in Review, 19-25 July

    The Week in Review, 19-25 July

    The pros and cons of the new fiscal code


    Romanian Prime Minister Victor Ponta said he
    wanted that the issue of the new Fiscal Code to be resolved by September 1st.
    The bill was last week sent back to Parliament for debates by the country’s
    president Klaus Iohannis who argued that the fiscal relaxation it envisages
    could produce serious economic imbalances. The Prime Minister defended the
    bill, saying the new code, which, among other things, stipulates a series of
    tax cuts, particularly the VAT and which was discussed with the representatives
    of the business community and passed by Parliament, will keep Romania on the
    path to economic development. Ponta says the new fiscal code will be discussed
    again:




    Maybe after August 15th we’ll hold
    a special meeting, first in the Senate, as this is the first Chamber, and then
    in the Chamber of Deputies. Of course we will vote in favour of the Fiscal Code
    and I believe it will be signed into law by September 1st so that
    all those who make their investment and job creation plans for 2016 should know
    they have something clear they can rely upon.




    The president’s rejection of the Fiscal Code has caused a series of
    divergences between the ruling coalition and the Liberal opposition, which
    supported the president. The Social-Democrats, number one in the government,
    lashed out at the National Liberal Party, the main opposition force, accusing
    them of petty politics, given that they initially voted in favour of the bill
    in Parliament. The Liberals explained that in spite of their yes vote, they
    have constantly voiced their doubts regarding the sustainability of the fiscal
    relaxation the new code envisages.




    Amendments
    to the new election law in Romania


    Romanian president Klaus Iohannis has
    promulgated the law on the election of senators and deputies and on the
    organisation and functioning of the Permanent Election Authority. The law
    amends the rules for the election of MPs and gives more prerogatives to the
    Permanent Election Authority. The new law also reintroduces the proportional
    representation voting system used until 2008. Under the new election law, the
    number of MP seats will be cut by more than 100. Thus, the number of senators
    and deputies will stay at maximum 466 as compared to 588 at present. The 5%
    threshold for parties to enter Parliament will be maintained but the new law
    also provides for a threshold varying between 8 and 10% in the case of
    electoral alliances.




    After the flawed staging of the 2014
    presidential elections, when many Romanians living abroad were unable to cast
    their ballots due to huge queues at the polling stations, the new election law
    has a special provision to help voters abroad: polling stations will also be
    set up in places where there are at least 100 Romanian registered voters. The
    condition is that they must have their names and addresses included in the
    Election Registry following a written application to the Permanent Election
    Authority.




    The Social Democratic Party, the senior partner in the ruling coalition
    in Bucharest, has a new interim leader


    Liviu Dragnea is the new interim leader of the Social
    Democratic Party, the senior member of the left-wing ruling coalition in
    Romania, until the next party congress in November. The decision was taken by
    the Social Democrats leadership body following the resignation of Victor Ponta
    after five years as leader of the party. Ponta, who is also Romania’s prime
    minister, is currently under criminal investigation. The new leader said the
    party is united and, together with its coalition partners, the National Union
    for the Progress of Romania led by Gabriel Oprea and the newly-created Liberal
    and Democratic Alliance, would continue to support Victor Ponta’s cabinet.




    The Liberal opposition says the appointment of Liviu
    Dragnea shows that Victor Ponta has lost the political support of his party and
    called for his resignation as prime minister. Dragnea served as executive
    president of the Social Democratic Party and a development minister, but had to
    resign after receiving a one-year suspended sentence in the court of first
    instance in a case related to the 2012 referendum on the impeachment of the
    then president Traian Basescu.




    Hans Klemm has been proposed as the new US ambassador to Romania


    Proposed by president Barack Obama as the new US
    ambassador to Romania, Hans Klemm was heard by the US Senate Committee on
    Foreign Relations. Klemm pledged to consolidate ties with Bucharest and support
    the institutions fighting against corruption. Romania, which he described as an
    excellent ally and strategic partner of the United States, has a key role to
    play in ensuring prosperity in south-eastern Europe, said the American
    diplomat, who also urged Bucharest to invest in its energy infrastructure.
    Since the end of Mark Gittenstein’s tenure as US ambassador to Bucharest in
    December 2012, the US embassy has been run by a charge d’affaires.

  • The Week in Review 12-18 July

    The Week in Review 12-18 July

    President Klaus Iohannis on a formal visit to Spain

    Early this week,
    Romania’s president Klaus Iohannis paid a formal visit to Spain. The talks with
    King Felipe 6th and prime minister Mariano Rajoy focused on economic
    cooperation and the situation of the big Romanian community living in Spain.
    The Romanian head of state recalled that, at the end of last year, Spanish
    investment in Romania exceeded 1.3 billion Euros and pleaded for a stronger
    presence of such investment in Romania, especially in fields such as energy,
    industry and agriculture. In turn, King Felipe said Bucharest was entitled to
    joining the Shenghen agreement, thanks to the sustained efforts it had made
    also as external border of the EU. Prime Minister Mariano Rajoy appreciated the
    way in which the approximately 1 million Romanians in Spain managed to
    integrate and their role in Spain’s economic dynamics. During talks with
    representatives of the Romanian community, Klaus Iohannis told them that a
    coherent vision of the Diaspora had already started to get shape at the level
    of the presidential administration.



    Klaus Iohannis in Serbia

    On Thursday, president Klaus
    Iohannis traveled to neighboring
    Serbia, which is one of Romania’s key partners in the region. The talks with
    his Serb counterpart, Tomislav Nikolici, with prime minister Alexandar Vucic
    and parliament speaker Maja Gojkovici focused on regional stability, economic
    cooperation, Serbia’s European integration prospects and several joint
    projects, in fields such as infrastructure, cross-border cooperation and energy
    interconnectivity, the president has stated. He has also said that Romania
    supports Serbia’s European prospects and hopes that accession negotiations will
    start this year. Moreover, Bucharest is willing to help Belgrade in this
    process. The situation of the Romanian
    minority in Serbia, and the observance of their rights, which Bucharest has
    constantly supported, was a major
    topic on the visit’s agenda. Klaus Iohannis stressed that the Romanian minority
    in Serbia must enjoy all the rights stipulated in the international documents,
    with regard to representation, education, religion and media in their mother
    language.



    Air traffic controllers’ strike

    Several flights scheduled for early Wednesday on the
    main international airport in Bucharest were affected by the two-hour warning
    strike staged by air traffic controllers. The controllers demanded a new
    collective employment contract, wage
    protection, air traffic safety and a lower retirement age. By Tuesday, July 21st,
    both the employer and the trade union must come up with clarifications and
    solutions to these demands.



    A new transport minister

    Iulian Matache is
    the new Transport Minister in Romania. A
    former state secretary in the same ministry, Matache was prime minister Ponta’s
    second choice, after the president rejected the nomination of Mihai-Viorel
    Fifor for this office, saying that he did not have the necessary managerial
    experience. Iulian Matache thus takes over the office previously held by Ioan
    Rus, who resigned following offending statements he made about the Romanians
    who are working abroad.



    Prime Minister Victor Ponta steps
    down as head of the Social Democratic Party

    Leader of the Social Democrats since February 2010,
    Prime Minister Victor Ponta has decided to step down as president of the party
    and to take no other leading position within the party until he proves his
    innocence in the case in which the National Anticorruption Directorate accuses
    him of corruption. The prime minister is currently being prosecuted for
    forgery, tax evasion and money laundering, which he allegedly committed while a
    lawyer. His party colleague, Senator Dan Sova, a former Transport Minister in
    the Ponta Government, is the main culprit in this case. President Klaus
    Iohannis and the right wing opposition called on the premier to resign and thus
    avoid harming Romania’s image abroad. For the time being, Rovana Plumb is the
    interim party president, the one who took care of party leader prerogatives
    also when Ponta was away in Turkey, to have his knee operated on. In the
    meantime Ponta has returned to Romania and has been heard by anti-corruption
    prosecutors, who issued as decision of distraint upon Ponta’s property.



    Greece’s situation

    The Romanian Foreign
    Minister Bogdan Aurescu has hailed the historic agreement on the fresh
    financial aid program for Greece. Aurescu has recalled that during the Greek
    crisis, Bucharest hoped a solution would be found, to favour Greece’s European
    future. This week, the Eurozone leaders have reached an agreement regarding
    Greece’s bailout, thus avoiding the country’s exiting the Eruozone. On
    Wednesday night, the Greek Parliament approved the reform measures requested by
    the international lenders in exchange
    for resuming the financial aid plan, after tense debates against the background
    of violent anti-austerity rallies staged in capital Athens. The tough economic
    measures requested by lenders include, among other things, higher taxes and an
    increase in the retirement age.



  • The Week in Review, July 6-10

    The Week in Review, July 6-10

    Romania under the effect of a heat wave


    A hot week followed by storms is the meteorologists forecast for this week. Wednesday was the hottest day of the year, with temperatures that exceeded 39 degrees Celsius in western Romania, and two counties under a code yellow alert. Code yellow and orange alerts were in place for the whole of Romania, with temperatures frequently reaching 35 to 37 degrees Celsius. Also, the temperature humidity index exceeded 80 units. Speed limits were set for trains to ensure traffic safety. Meteorologists have warned that the month of July will be defined by very warm weather dotted with thunderstorms.



    Victor Ponta resumes his tasks as Prime Minister


    Romanias Prime Minister resumed, on Thursday, his tasks as head of the government, which, for the past three weeks, had been taken over by deputy PM Gabriel Oprea. Ponta returned to Romania on Wednesday after having undergone a knee surgery in Turkey in mid-July. On the day of the surgery, July 15th, the Romanian PM was supposed to appear before the Romanian anti-corruption prosecutors as ten days before he had been informed he was being prosecuted for forgery, accessory to fiscal evasion and money laundering. He allegedly committed the crimes while a lawyer and they are related to a case involving his party colleague, Dan Sova, former transport minister in the Ponta Cabinet.



    European money for Romanias infrastructure


    Nine million and a half euros in European funds will be made available to Romania by 2020 for the construction and upgrading of motorways and water and energy networks. The money can be accessed after the signing on Friday in Bucharest of the Large Infrastructure Operational Program. This is the largest investment program in Romania and the second largest one in the EU in terms of investment volume. The European Commissioner for Regional Policies, Romanian Corina Cretu, has said in Bucharest that under this program, the Romanian Government has committed to making running water available to all Romanians, from public sources, by 2020. The priority infrastructure projects for the European Commission as far as Romania is concerned are the motorways connecting Sibiu to Pitesti, Bacau to Pascani and Targu Neamt to Ungheni. The latter will be connecting Romania to the Republic of Moldova. With the Romanian government co-financing these projects, the total investment will stand at 12 billion euros.



    The National Statistics Institute makes public fresh economic data


    Romania’s Gross Domestic Product went up in the first quarter of 2015 by 4.1% as compared to the same period last year with the Romanian economy also seeing a 1.5% growth as against the last quarter of 2014, according to a second provisional report made public by the National Statistics Institute (INS). Romania’s economy last year saw a 2.8% growth as compared to 2013. The National Forecast Committee has upgraded to 3.3% its forecast on the country’s economic growth. According to the IMF, Romania’s economy will go up by 2.7% this year. The World Bank has also upgraded Romania’s economic growth rate from 2.9% to 3% for this year. According to the National Statistics Institute, the annual inflation rate stood at minus 1.6% in June, down from 1.2% in April, while the monthly inflation rate has reached 2.95%. The inflation rate in June shows a drop in prices by over 2% as against May, while the annual index will stand at around minus one percent. However, it is important for the population not to perceive this drop as deflation, Central Bank Governor Mugur Isarescu has said.



    Romanian and Italian foreign ministers hold talks in Bucharest


    Businesspeople in Italy have confidence in the stability of the Romanian economy, for which reason over 100 new Italian companies are adding to those already operating in Romania almost on a monthly basis. The statement was made by the head of Italian diplomacy, Paolo Gentiloni who held talks in Bucharest with the Romanian Foreign Minister Bogdan Aurescu on the bilateral ties. Romania and Italy have an excellent relationship, that of a consolidated strategic partnership, Bogdan Aurescu said in his turn. The Greek crisis and the migration issue were also discussed by the two officials. The value of the Romanian-Italian trade exceeded 12 billion euros.



    Romania supports the Republic of Moldova


    Romania is the staunchest supporter of the Republic of Moldova in its EU integration process, said Romania’s president Klaus Iohannis in Suceava, in the north-east, where his Moldovan counterpart, Nicolae Timofti, received the Doctor Honoris Causa title from the city’s Stephen the Great University on Tuesday. President Timofti received the Doctor Honoris Causa title at the ‘Stephen the Great’ University in Suceava, for special merits in promoting the Republic of Moldova’s EU integration efforts, for deepening its relations with Romania, as well as for his focus on education and the training of the young generation. President Iohannis hailed the democratic manner in which local elections were held in Moldova and said that the country needed to make efforts to reform the state.


  • The Week in Review 29.06- 05.07.2015

    The Week in Review 29.06- 05.07.2015

    NATO Centre in Bucharest


    NATO is strong with Romania and Romania is strong within NATO, said NATO Secretary General Jens Stoltenberg on Thursday. The NATO official attended in Bucharest the opening of the headquarters of the first of two allied command and control centres to operate in Bucharest. According to Romanias president Klaus Iohannis, the unit will officially become operational in September. The structure will accommodate 42 NATO officers and will be led by a Romanian commander. By the end of the year, similar centres will also become operational in Bulgaria, Poland, Estonia, Latvia and Lithuania. These command centres are part of efforts to consolidate the Alliances eastern flank, following Russias aggressive actions. Jens Stoltenberg said in Bucharest that these are defensive, not confrontational structures, adding that NATO will do whatever is necessary to maintain the security of and defend all its allies against possible threats. During his visit to Bucharest, apart from talks with president Klaus Iohannis, Jens Stoltenberg also met the interim prime minister Gabriel Oprea and the countrys defence and foreign ministers, Mircea Dusa and Bogdan Aurescu, respectively.




    The new director of the Romanian Foreign Intelligence Service

    Mihai Razvan Ungureanu is again the head of Romanias Foreign Intelligence Service, following the resignation last winter of Teodor Melescanu, who stepped down to be able to run for president. A historian and diplomat, Ungureanu also acted as foreign minister between 2004 and 2007 and as director of the Foreign Intelligence Service between 2007 and 2012, as well as serving a short stint as prime minister for three months, in 2012. All these posts, which he held while Traian Basescu was still president, earned him the antipathy of the Social Democrats, who saw him as an ally of their number one political adversary. This explains why the Social Democrats and their allies, the Alliance of the Liberals and Democrats for Europe, boycotted Parliaments vote to approve his appointment. With 278 yes and 6 no votes, Ungureanu still secured enough votes to win the nomination. He was supported by the National Liberal Party, the Democratic Union of Ethnic Hungarians in Romania and, much to the Social Democrats surprise, by their junior partner in the ruling coalition, the National Union for the Progress of Romania. Romanians expect the institutions with security responsibilities to work together to combat corruption and consolidate the rule of law and democracy, said Mihai Razvan Ungureanu.




    Romania and the economic and financial crisis in Greece

    Ahead of Sundays referendum in Greece, Romanias president Klaus Iohannis said ways should be sought to find a solution to the crisis. He said that unless a solution was found, the difficult situation facing Greece would also affect Romania, the European Union and NATO. The National Bank governor Mugur Isarescu again called for calm and urged people who have deposited money in banks with Greek capital in Romania not to respond emotionally and withdraw their deposits. He explained that the banks in question are safe, well-capitalised and subject to National Bank regulations, not Greeces decisions. In case of panic, he said the National Bank was ready to step in and make use of all available instruments. On the other hand, while there is no comparison between Romania and Greece, as the former stands on solid financial and banking ground, the Greek crisis calls for a serious consideration of Romanias relationship with the International Monetary Fund and the European Union, which, in Isarescus opinion, should continue in different forms.



    While some prices rise, others go down as of July 1st


    The price of natural gas for individual consumers went up on July 1st by around 11% to reach 60 lei per megawatt per hour. The National Agency for Energy Regulation approved the rise in keeping with a government decision and the new timetable for price deregulation agreed with the European Commission. The Agency says the gas delivered to individual consumers will not rise again this year, because there will be no additional costs to meet demand during the cold season as compared with the previous years. On the other hand, starting on July 1st, the minimum gross wage in Romania stands at 1,050 lei, the equivalent of 233 euros. Also, subsidised medicine became cheaper as of July 1st.



    The 2015 baccalaureate exam


    Almost 169,000 high school graduates entered the summer sitting of the baccalaureate examination in Romania, 7,000 more than last year. The preliminary results will be released on July 6th. After all applications for a formal recheck are solved, the final examination results will be published on 10th of July. For the first time this year, written tests given as part of the baccalaureate exam are scored in other counties than where the exam was taken. While some say this will eliminate favouritism, others have criticised the measure as a waste of time and money.

  • The Week in Review 22 – 28.06.2015

    The Week in Review 22 – 28.06.2015


    The National Defense Strategy


    Romanias Parliament on Tuesday adopted the National Defense Strategy for 2015-2019, previously introduced by president Klaus Iohannis. The president says the strategy is aimed at safeguarding the fundamental rights, liberties and safety of the citizens, in such fields as economy, education, health care or the environment. The Strategic Partnership with the United States, and Romanias NATO and EU membership are the main pillars of our countrys foreign and security policies. Also on Tuesday, parliament adopted the setup of two NATO structures in Bucharest – the NATO Force Integration Unit and the NATO Multinational Divisional Command.



    Romania to host US heavy weaponry


    Romania is on a list of Baltic and Central-European states where the United States will pre-position 250 tanks, Bradley fighting vehicles, self-propelled howitzers and armored combat gear. The US State Department says the measure is aimed at supporting training exercises carried out by military units rotating on NATOs eastern flank. Some 1,000 military from 25 NATO countries have taken part in an over-arching NATO collective defense exercise in Cincu Range in Brasov County. For the first time, as part of the exercise, two NATO Joint Allied Command structures were relocated to Romania, while the NATO Response Force Command and Control was relocated temporarily to Romania.



    Romanias Defense Minister attends the NATO summit in Brussels


    NATO Defense Ministers decided to extend NATOs Response Force to 40,000 from the current 13,000, Romania being one of the seven nations to lead this force. Attending the NATO summit in Brussels, Romanian Defense Minister Mircea Dusa said immediate action must be taken to open a NATO Liaison Office in Chisinau. The Romanian official also expressed Romanias firm position regarding the political independence, the sovereignty and territorial integrity of Ukraine within its internationally recognized borders.



    Fiscal relaxation measures in the new Fiscal Code


    Romanian MPs on Wednesday adopted the new Fiscal and Fiscal Procedure Codes, which are to come into force on January 1, 2016. The Chamber of Deputies is the decision-making body in this case. Among the provisions of the new codes is also the VAT cut from 24 to 19% as of next year, the elimination of the tax on special constructions as well as the excise duty on fuel. The authorities also want to eliminate the 16% tax on income-derived dividends. The IMF and the European Commission have warned on the risks associated with the introduction of these fiscal relaxation measures. Romania risks exceeding the budget deficit target stipulated by Romanias ongoing standby agreement with the IMF. The measures will also trigger a temporary budget deficit growth, although no higher than 3% of the GDP, Finance Minister Eugen Teodorovici has said. After sitting down with European experts in Bucharest, Minister Teodorovici said the authorities failed to reach an agreement with European Commission representatives on the new Fiscal Code. The matter will be discussed at a meeting of the EU Economic and Financial Affairs Council on the 14th of July.



    Romanias new election law Also on Wednesday, the deputies passed a new parliamentary election law which reintroduces the proportional representation system, maintains the 5% election threshold and establishes the rules for the allocation of seats depending on the number of voters. The Chamber of Deputies has decision-making power in this case. In 2016, Parliament will have 134 senators and 308 deputies as well as 18 representatives of ethnic minorities with the exception of the Hungarian minority and 6 MPs representing the Romanian communities abroad.



    The case of Prime Minister Victor Ponta


    The European Parliaments Committee on Civil Liberties, Justice and Home Affairs on Thursday discussed the case of Romanias Social Democrat prime minister Victor Ponta, following a Parliament vote in Bucharest to reject a request by the National Anticorruption Directorate to strip him of his parliamentary immunity. Prosecutors had requested Parliaments approval to start criminal investigations against the prime minister over a suspected conflict of interest. The prime minister is already under investigation by the anticorruption body for forgery, complicity in tax evasion and money laundering, all of which he is suspected of having committed during his time as a lawyer. At the moment, the prime minister is recovering from a knee surgery, with deputy prime minister Gabriel Oprea acting as the temporary head of government.




    President Klaus Iohannis attends the summer meeting of the European Council


    After intense talks on urgent community matters, EU leaders agreed to relocate 40,000 immigrants from Greece and Italy to other EU countries over the next two years, with home affairs ministers expected to draw up a final scheme by the end of July. A further 20,000 people will be resettled. This is one of the decisions taken at the summer meeting of the European Council, where Romania was represented by its president Klaus Iohannis. Before flying to Brussels, he appointed Mihai Razvan Ungureanu as the head of the Foreign Intelligence Service. Ungureanu chaired the service before, between 2007 and 2012, and also served as foreign minister between 2004 and 2007 and as a prime minister in the first half of 2012.



  • The Week in Review 15-21 June

    The Week in Review 15-21 June

    The Portuguese President Visits Bucharest


    Portuguese President Anibal Cavaco Silva was on Wednesday and Thursday on a state visit to Romania, with an agenda focused on the economy. He met with his Romanian counterpart, Klaus Iohannis, with deputy PM Gabriel Oprea, who ensures the operative leadership of the government in the absence of PM Victor Ponta, who is in Turkey for an operation, as well as with the heads of the two chambers of Parliament. The Romanian president specified that bilateral relations had evolved significantly in the last few years, and the two countries would continue to cooperate politically and militarily, including within NATO, and to coordinate more closely within the EU. Iohannis also spoke about the Romanian community in Portugal, almost 40,000 strong, saying he appreciated the help granted by the Lisbon authorities in integrating them. President Anibal Cavaco Silva also attended a Romanian-Portuguese economic forum.




    The Romanian Foreign Minister Visits Chisinau


    During a two day visit to Chisinau, Romanian Foreign Minister Bogdan Aurescu met with Moldovan officials and participated in a meeting of the Black Sea Economic Cooperation Organization. Aurescu spoke strongly in favor of a speedy formation of a new government in the Republic of Moldova. He emphasized the importance of political stability, as an essential premise of reform and European integration. Aurescu’s visit to Chisinau came less than a week after PM Chiril Gaburici resigned, facing accusations of having falsified his high school graduation diploma. At the same time, he said that enhancing cooperation between the Black Sea Economic Cooperation Organization and the EU would be one of the priorities of the Romanian rotating presidency of the EU, which begins de facto on July 1st.




    Romania’s National Defense Strategy Up for Parliament’s Approval


    Romania’s new national defense strategy, covering the 2015-2019 period, passed without issues through the expert committees in Parliament, and goes to a full vote. The document will be introduced on Monday by President Iohannis to the two chambers, after the Presidency introduced the strategy on Thursday to NATO and EU diplomats. According to the head of state, the strategy offers the vision of a strong Romania in Europe and the world, and one of its main novelties is the concept of extended security. The strategic partnership with the US and its membership in NATO and the EU still constitute the pillars of the country’s foreign policy and security.




    US-Romania Agreement on Public Procurement


    The US Trade and Development Agency will train 50 Romanian employees in public procurement procedures under a Memorandum of Understanding, signed on Wednesday in Bucharest. The US charge d’affaires to Bucharest, Dean Thompson, has stated that a proper review of public procurement rules and applying an adequate prevention system for identifying conflicts of interest, which will help Romania fight corruption. Attending the signing ceremony, Finance Minister Eugen Teodorovici said that one of the main aims of the government is the reform of the public acquisition system. He announced that the National Strategy for Public Procurement will be finalized by the end of this month, together with four more bills on the transposition of relevant European directives, so that the new regulations can be passed by Parliament in its autumn session. The European Commission called on Romania in 2014 to pass such a strategy in order to sort out problems that had been a major concern for Brussels so far.




    Large Scale NATO Exercises in Romania


    Romanian military personnel takes part the rest of this month in exercises run by Romania alongside foreign partners. At the military firing range in Cincu, in Brasov County, the TRIDENT JOUST 15 exercise brings together 1000 soldiers from 26 NATO members. It is designed to test the capability of the Joint Allied Command in Naples to coordinate common defense for NATO. A command structure from a Joint Allied Command was for the first time relocated to Romania, and also as a first, a command and control unit of NATO’s Response Force, of which the Naples Command is in charge this year, is transferred to a temporary location. At the same time, until June 26th, Romanian soldiers take part in the a multinational special forces exercise ROUSOFEX 15. Around 1,500 soldiers from Bulgaria, Georgia, Greece, Moldova, Poland, Romania and the US, with over 100 combat assets, take part in this tactical exercise running at several Romanian locations.

  • The Week in Review 8-14 June

    The Week in Review 8-14 June

    Prime Minister Victor Ponta retains parliamentary imunity


    Although accused of conflict of interests while in office, the Social Democrat Prime Minister Victor Ponta has managed to retain his parliamentary immunity. His colleagues in the Chamber of Deputies on Tuesday rejected the request of the National Anticorruption Directorate for his prosecution, just like the judicial committee of the same chamber had done a day before. However, the National Anticorruption Directorate is already prosecuting the PM for another three crimes he allegedly committed as a lawyer. The PM is accused of forgery, accessory to recurrent tax evasion and money laundering, in a case also involving the former minister of transport, the Social Democrat senator Dan Sova. Therefore, Victor Ponta is the first prime minister of post-communist Romania under criminal investigation while still in office. Against this background, Romanias president Klaus Iohannis called for the PMs resignation. Victor Ponta replied on Facebook, saying he would not resign, because it was the Romanian Parliament that appointed him, so it is only Parliament that may dismiss him. Moreover, in a letter he has sent to foreign partners and media, the prime minister says the case built around him is a political one and aimed at bringing down the Government.



    The Ponta Government and the censure motion


    If the head of government does not resign, introducing a censure motion to dismiss the government can be the solution for Romania to get out of the current difficult situation, the co-president of the National Liberal Party, Alina Gorghiu has said. Consequently, the main opposition party has introduced a censure motion in Parliament. Quite predicibly, the motion did not pass. The themes of the motion were the organizational disaster at polls abroad, at the presidential election last November, which disallowed thousands to vote, as well as the failure to pass the law on postal voting, which could have prevented the said situations. The Ponta Government is still in power, but one of its ministers, Ioan Rus, has resigned following his offensive statements, in a TV interview, regarding the Romanians working abroad. The issue of high-level resignations has also been debated at the end of this week in Chisinau, when the Moldovan Prime Minister, Chiril Gaburici, suspected of having forged his school records, resigned.



    Romanias Defense Strategy


    “A strong Romania in Europe and the world is the subtitle of Romanias national defence strategy, which the countrys Supreme Defence Council will send to Parliament for approval. At the end of the councils meeting on Tuesday, president Klaus Iohannis said that the strategy entailed a new concept, that of ‘extended security. National security is not only about defence; it also has to do with public order, the economy, infrastructure, education, healthcare, the environment and culture, all of which have an impact on national security, the president said. The new strategy reaffirms the importance of Romanias strategic partnership with the US and its NATO and European Union membership as pillars of the countrys foreign and security policy. As proof of its involvement in the European project, Bucharest will propose, at the upcoming meeting of the European Council this month, the creation of a new common security strategy. On a domestic level, the strategy provides for the continuation, in 2015, of the armys restructuring and modernisation process and its provision with new equipment by 2027.



    Support for Romanian Physicians


    This week, the Romanian Senate has endorsed the draft law allowing medical staff in hospitals to increase their incomes by providing paid health-care services in the hospitals in which they work. The document is to be discussed by the Health Committee of the Chamber of Deputies and then voted upon in plenary session. The Health Ministry thus hopes to stop the Romanian physicians exodus abroad and to improve the quality of medical services provided in hospitals. In the past years, over 20 thousand physicians have left the country because of the small salaries they got in Romania.



    Positive Economic Forecasts for Romania


    The World Bank has revised upwards to 3% its economic growth forecast for Romania this year, as compared to the 2.8% world average. Moreover, Romania is likely to register a 3.2% growth rate in 2016, and 3.5% in 2017, which would be lower by 0.4%, though, than what the international financial institution had forecast in winter. Romanias economic performance, alongside that of the Czech Republic, has also been confirmed by the Statistical Office of the European Union – Eurostat- according to which in the first quarter of this year the two countries had the highest economic growth in the EU: 4.2%.



    Drought in Romania


    Agriculture, which is one of Romanian economys main driving engines, could be faced with severe drought this year. Since the contribution of the sector accounts for 5 to 7% of the GDP, this situation might hamper the economic growth forecast by specialists. Summer has not settled in yet, but the land has already cracked over extended areas, and many crops have dried. Water levels have also dropped significantly in many rivers and people are afraid that soon they will not have water for their animals. Currently, the most affected regions are in the north-east, east and south, where water in the soil has already reached alarmingly low levels. The irrigations system, built before 1989 can only cover 10% of Romanias arable land.

  • The Week in Review 1-7 June

    The Week in Review 1-7 June

    The National Anti-Corruption Directorate starts criminal proceedings against the PM Victor Ponta


    The Romanian PM has announced he will not resign, as President Klaus Iohannis had requested him to, after the National Anti-Corruption Directorate announced the start of criminal proceedings against him. The Romanian President said that having a PM charged with various criminal offences was an impossible situation for Romania and warned that a political crisis would be the worst scenario for the country. The National Anti-Corruption Directorate on Friday announced the Romanian PM and leader of the Social Democratic Party, Victor Ponta, is being prosecuted for forgery in documents under private signature, accessory to tax evasion and money laundering in a case of corruption related to the Rovinari and Turceni energy companies (in the south of Romania), for which legal assistance contracts were concluded. In the same case, the prosecutors say the PM should also be prosecuted for conflict of interests because, at the time of the offence, he held the position of PM. The National Anti-Corruption Directorate also requested the Chamber of Deputies to approve the start of criminal proceedings against Victor Ponta, an MP who, at the time he is supposed to have perpetrated the respective crime of conflict of interests, held the position of PM. In the case related to the Turceni and Rovinari energy companies, Dan Sova, a former transport minister in the Ponta cabinet, is being prosecuted for accessory to abuse of office. The prosecutors on Friday added new offences to the charges against him and placed him on pre-trial restrictions for 60 days. The National Anti-Corruption Directorate has twice asked the Senate to approve the arrest of Dan Sova, but the senators rejected the request.



    The VAT on foodstuffs drops from 24 to 9%.


    On June 1st, the VAT on foodstuffs in Romania was cut from24% to 9%. According to analysts, the measure will trigger an increase in consumption and will boost Romania’s economic development, which seems to have grown beyond the forecasts made early this year. The National Forecast Commission has recently improved the figures for this year’s economic growth rate from 2.8% to 3.3%, and the pace might get even faster, leading to a 4 % growth rate in 2018. Also, the European Commission, the World Bank and the European Bank for Reconstruction and Development estimate that in the coming years, the economy will grow by an average of over 3%. In another development, the Romanian President Klaus Iohannis has endorsed a law providing for a raise in child benefits, from 41 to 84 lei. Prime Minister Victor Ponta has given assurances that the Government will find the financial resources to implement this measure.



    German Defence Minister Ursula van der Leyen on a visit to Bucharest


    Germany is aware of the strategic importance of the Black Sea Region and is very much interested in strengthening bilateral ties with Romania and in cooperating closer with this country within NATO and the EU. These are the statements made in Bucharest by the German Defence Minister Ursula van der Leyen, who on Thursday met with her Romanian counterpart Mircea Dusa and was received by President Klaus Iohannis. Among other issues, the dialogue with the Romanian authorities also approached the situation in Ukraine. The German official said Berlin was deeply worried about the effects of Moscow’s policy in Ukraine. Actually, against the background of growing worries over the situation in that former Soviet Republic, the Romanian Chief of Staff, General — Lieutenant Nicolae Ciuca, has said that introducing the compulsory military service in Romania is not being considered. Moreover, he has estimated that by the end of the year, the 12 F16 fighter planes that Romanian bought from Portugal will join the Romanian Air Forces.



    Romania prepares for joining the Eurozone


    According to the Romanian Prime Minister Victor Ponta, Romania’s economic situation is very good, as data made public by the National Statistics Institute show. Net investments in the economy went up by 8.5% in the first quarter, as compared to the same period last year. He has also stated that setting 2019 as the year for Romania’s joining the Eurozone has a symbolic significance attached to it, because in that period Romania will be holding the Rotating presidency of the EU. In his opinion, once the technical procedures for the adoption of the single European currency are ready, a referendum on this issue could be organized. The Central Bank Governor Mugur Isarescu warns, though, that Romania still has a great deal of work ahead before joining the Eurozone and should focus on its structural reforms first. He warned about the danger posed by some economic policies, which, the world economic crisis has shown, are difficult to correct. Mugur Isarescu has also said that Romania’s joining the Eurozone must take place at the right time, only after all the required reforms have been implemented.



    The latest election law provisions are passed by the Senate


    The bill on parliamentary elections, stipulating that these elections will be on lists, and with a 5% election threshold, has been endorsed by the Romanian Senate. Representatives of all political parties voted in favour of the bill. Therefore, according to the new provisions, a deputy will represent 73,000 inhabitants, and a senator 168,000 inhabitants. According to the new provisions, in 2016 Parliament will have 308 deputies and 135 senators, as well as 18 MPs representing the minorities and 6 the Romanian Diaspora. The final version of the law will be decided upon by the Chamber of Deputies, which is the decision-making forum in this matter. At the latest parliamentary elections of 2012, 412 deputies and 176 senators were elected.



    A new strategy on education in Romania


    The Romanian Education Minister Sorin Campeanu has given assurances that a new education law will be developed only after consultations with experts and employers’ representatives. Debates are to be held by the end of the year. In another move, the Government has recently approved a strategy for the reduction of the number of drop-outs after secondary school. The document provides for mechanisms and measures that are to be implemented by 2020, in order to reduce the number of young people aged 18-24 who attended eight grades and are not enrolled in any type of form of education or professional training.

  • The Week in Review May 25-29

    The Week in Review May 25-29

    IMF and EC experts have completed another technical assessment mission to Bucharest


    IMF and European Commission representatives on Tuesday concluded their technical assessment mission to Bucharest. The current financial program under assessment is due to end this autumn. The talks mainly focused on the changes brought to the Fiscal Code and the economic measures to be implemented after January 1st, 2016. On Monday, the experts held talks at the government headquarters on the impact the reduction of fees and taxes would have on the state budget. The delegation will return to Bucharest in late June, for a full assessment of the current agreement.




    New talks on Romanias joining the Eurozone


    Romanias President Klaus Iohannis will convene political parties for consultations in an effort to find national political consensus on the countrys joining the eurozone. The President had discussed the issue, on Thursday, with Prime Minister Ponta and the Central Bank Governor Mugur Isarescu. According to a release by the Presidency, a consensus on Romanias joining the Eurozone will allow for the adoption of a national strategy for switching to the euro and of a rigorous timetable for the economic, monetary, legislative and institutional measures, likely to offer a stable and predictable economic development. Also on Thursday the relevant authorities decided to set up a Committee for the Coordination of the Process of Switching to the Single European Currency. According to PM Ponta, the countrys joining the eurozone is not something that should be imposed on people, but something that generates a change in their way of thinking, to the extent of making them understand that this process does not involve only advantages, but also a series of disadvantages.




    The European Commission has endorsed Romanias rural development programme for 2014-2020


    The European Commission has endorsed Romanias rural development programme for 2014-2020. For its implementation, Bucharest has over 9 billion Euros in European funds in the coming 7 years. The budget earmarked to Romania under the National Rural Development Programme for 2014-2020 accounts for 8.2% of the European Agricultural Fund for Rural Development, the largest of the 24 programmes endorsed on Tuesday. The money will be spent to promote competitiveness and restructure the farming sector, to protect the environment and restructure the agriculture sector, and to encourage economic development, create jobs and improve living standards in the Romanian villages, many of them below the national and EU average levels. Also on Tuesday the Bucharest Senate rejected a simple motion filed by the National Liberal Party, the main opposition party, on the situation in the agriculture sector. Its initiators, who asked for the agriculture ministers resignation, emphasised the main problems facing Romanian farmers, the poorest in the EU, and pointed out that the legislation adopted in the past three years was preventing this sector from developing.




    Romania at the South-East European Cooperation Process summit in Tirana, Albania


    Romania is determined to contribute to boosting regional cooperation, Romanian Prime Minister Victor Ponta said at the South-East European Cooperation Process Summit in Tirana, Albania. The meeting, attended by all heads of state and government of the SEECP member states, came amidst security challenges in Europe and the Middle East and focused on regional developments and the European prospects of the states in the Western Balkans. The Romanian prime minister said his country was open to promoting certain projects, in particular in the field of energy, infrastructure and cyber security. He also reiterated Romanias support for the continuation of EU enlargement based on the fulfilment of accession criteria. He said the EU should step up accession negotiations with the other countries and provide them with a clear deadline in this respect.




    Romania will receive asylum seekers and refugees from outside the EU


    Romania is to receive in the next two years more than 2,300 migrants as part of a European project meant to ensure a redistribution of the tens of thousands of asylum seekers who risk their lives to reach the EU. Romania is to receive more than 1,700 asylum seekers who reached Italy and Greece on the Mediterranean Sea as well as another 650 refugees from outside the EU, after the EC asked member states to accommodate, for a period of two years, 20,000 people from third countries, who need international protection. For each refugee received, the European Commission will allot 6,000 euros. The EU Commissioner for Migration, Dimitris Avramopoulos pointed out that this quota of refugee distribution to member states was set depending on four criteria: the GDP, the total number of the population, the unemployment rate and the number of applications for asylum previously registered by the respective country. According to Eurostat, in 2014 Romania granted asylum to 460 Syrians, 120 Iraqis and 70 Afghans.




    Steaua Bucharest is Romanias football champion team


    Steaua Bucharest won, for the third consecutive time, Romanias football championship. This is the 26th champion title in the football clubs history. The titleholder was decided on Thursday in domestic League Ones last round. Manager Constantin Galcas trainees were held to a blank draw in their away game against CSMS Iasi. Steauas main challenger to grabbing the title, ASA Targu Mures, conceded a 1-2 defeat, on home ground, against the last but one team in the rankings, Otelul Galati, a squad that had already relegated to the second tier of the championship. In the next season, the football League 1 will have only 14 teams to be playing in the play off and play out system.

  • The Week in Review, May 17-23

    The Week in Review, May 17-23

    Dispute over the Criminal Codes


    The fight against corruption must be carried out with all engines on, because this scourge hinders Romania’s development, Romania’s president Klaus Iohannis has recently stated. He has also said he very much considers challenging at the Constitutional Court the amendments brought by Parliament to the Criminal and Criminal Procedure Codes, because Romania is now engaged in a harsh fight against corruption and changing these laws now is not at all opportune.


    Klaus Iohannis: “ I cannot accept the MPs bringing changes to these laws for their own benefit. Therefore, if they get to the promulgation stage, they will not pass through.”


    Although criticized, the amendments to the Criminal and the Criminal Procedure Codes were adopted by the Romanian Senate, and they are now to be debated by the Chamber of Deputies, which is the decision-making forum. Among other things, the senators endorsed an amendment changing the phrase “reasonable suspicions” into “ solid evidence and clues” when decisions are made to retain, place under legal restrictions or hold people under home arrest or temporary police custody. According to another modification, the defendant who is detained or held in temporary police custody will only be handcuffed if they have committed a violent crime.



    The Forestry Code adopted in its initial form


    This week the MPs have voted the draft Forestry Code in its initial form. They have thus rejected president Klaus Iohannis’ request for reexamination of the law. The president had argued that those legislative interventions were arbitrarily limiting the activity of certain companies, which would in turn place some of them in an disadvantaged position, would negatively impact the world of competition and would create the premises for invoking the breach of the obligations that Romania assumed as member of the EU. Stating it was not allowed to file amendments, the liberal opposition too had sugested the reexamination of the Forest Code by the specialised commission, but their request was not accepted. Against massive illegal deforestations in Romania, also this week, the Government has passed a draft law on stricter monitoring measures for the exports and deliveries of unprocessed wood within the EU. The draft will be discussed by the two chambers of Parliament as a priority.



    Social Measures


    This week, the Romanian MPs have endorsed the law regarding the insolvency of natural persons who have their permanent domicile, assets and incomes in Romania. The law is aimed at supporting good-faith debtors who are just suffocated by debts. Therefore, priority is granted to debt reimbursement plans for periods of up to 5 years, not to seizures or foreclosures. In another development, the MPs also voted in favour of doubling child benefits for the over 3.5 million children in Romania. Most likely starting next month, as soon as the law is published in the Official Journal, the child benefit will be the equivalent of some 20 Euros. The measure was taken against the background of child benefits being the only sources of income for many disadvantaged families.



    Victor Pontas Cabinet has a new minister


    Romanian President, Klaus Iohannis, on Wednesday signed the decree on appointing Mrs. Sevil Shhaideh as the new Regional Development and Public Administration minister. She is the proposal of the ruling Social Democratic Party and comes to replace Liviu Dragnea, who has resigned. Sevil Shhaideh has promised to continue the undergoing projects:


    ”I take over a ministry which has been organized by former minister Dragnea, we have a strategy, we have a vision and we have projects. The responsibility that my colleagues and I have is to continue these projects.”


    Liviu Dragnea received a 1-year suspended jail sentence for masterminding a campaign to use bribes and forged ballot papers to swing an impeachment vote against the former president Traian Băsescu in 2012. Following his conviction, Dragnea submitted his resignation from the position of executive president of the Social Democratic Party, but the party’s vice presidents refused to acknowledge it. Consequently, the party’s leadership will meet next week to discuss the problem.



    Prime Mnister Victor Ponta paid a visit to Chisinau


    Prime ministers Victor Ponta and Chiril Gaburici, respectively, who met in Chisinau on Thursday, signed a memorandum of understanding between the Romanian and Moldovan governments on projects needed to interconnect the natural gas and electricity networks of the two countries. These projects will be a priority for the Romanian government this year.


    Victor Ponta: “Romania has, at present, the capability and resources to invest in the Republic of Moldova. We only need to put into practice the official decisions made today.”


    Romania has been and will continue to be an unconditional supporter of the EU accession of the Republic of Moldova, Victor Ponta has said. While the Romanian prime minister was in Chisinau, the Eastern Partnership summit was under way in Latvia’s capital city, Riga. The Eastern Partnership is a cooperation program created for the economic integration into and political nearing to the European Union of six former Soviet states: the Republic of Moldova, Armenia, Azerbaijan, Georgia, Ukraine and Byelorussia. Romania was represented at the Summit by President Klaus Iohannis, who said his country was in favor of the EU’s restating its commitment to these countries.



  • The Week in Review 11-15 May 2015

    The Week in Review 11-15 May 2015

    Romanian President Klaus Iohannis pays an official visit to the Vatican and Italy.

    On a 3-day official visit to Italy and the Vatican, the Romanian head of state, Klaus Iohannis, was received by Pope Francis on Friday, whom he invited to pay a visit to Romania. On Thursday Iohannis visited the Universal Exhibition in Milan dubbed “Feeding the Planet, Energy for Life”. On Thursday evening Iohannis met with representatives of the Romanian community in the city, on which occasion he voiced his dissatisfaction with how the voting by mail project advances. This is the Romanian president’s second official visit to Italy, after the one in April 2014, when he met with his counterpart Sergio Mattarella, PM Matteo Renzi and the Senate Speaker Pietro Grasso.



    Economic forecasts for Romania.


    Romania and Cyprus had the most substantial economic growth in the EU in the first quarter of the year, as compared to the previous three months, according to preliminary estimates released on Wednesday by the European Statistics Office. In figures, thanks to a 1.6% growth rate, the two countries are the EU leaders, followed by Spain, Bulgaria, Slovakia, France and Hungary. The year-on-year rate Romania has reported, 4.2%, is also the largest in the EU, followed by Hungary, with 3.1%. Also this week the European Bank for Reconstruction and Development has improved Romania’s economic growth forecast this year up to 3% from 2.8% in January. For 2016 the European Bank for Reconstruction and Development estimates that the Romanian economy will advance by 3.2%, one of the highest growth rates in the emergent Europe.



    Romanian senators green lighted the VAT decrease on foodstuffs.


    The reduction of the VAT for foodstuffs as of June 1st was green-lighted by the Romanian senators. The measure is aimed at reducing the VAT from 24% to 9% for all foodstuffs, non-alcoholic drinks, and restaurant and catering services. Seen by the executive as a way to encourage consumption and implicitly to consolidate the growth trend reported by the Romanian economy, the measure was regarded with skepticism in terms of the significant drop in shelf prices it was supposed to produce. The calculations presented by the Agriculture Ministry point to a drop in prices for foodstuffs of about 12%. Most Romanians believe that the reduction of the VAT for foodstuffs and non-alcoholic drinks is a good measure both for them and for the economy, shows an opinion survey made by INSCOP.



    The Romanian Foreign Minister’s proposal at the NATO meeting in Turkey.


    Attending the NATO Foreign Ministers meeting in Turkey, Romanian Foreign Minister Bogdan Aurescu recommended an integrated strategy targeting both NATO’s southern and eastern vicinities. Bogdan Aurescu pointed out that given the challenges to the Alliance’s security, all decisions taken at the NATO summit in Great Britain should be implemented. The recommendation comes against the backdrop of mounting instability in Northern Africa and the Middle East over the course of last year, which is affecting the entire Europe. The NATO foreign ministers have decided at the meeting in Turkey to maintain the NATO presence in Afghanistan even at the end of its current mission, that is after 2016. The new NATO mission, expected to be smaller than the current 12,000-strong training operation, will be civilian-led and include both soldiers and civilians. Its aim will be to advise and instruct Afghan security forces. Over 600 Romanian military are currently deployed in Afghanistan.



    The Social Democrat Liviu Dragnea received a 1-year suspended prison sentence.



    Romanias regional development minister and deputy prime minister, the Social Democrat Liviu Dragnea, on Friday received a 1-year suspended prison sentence for using his influence and authority, as secretary general of the Social Democratic Party, with a view to obtaining undue benefits for himself and other persons. This means that Liviu Dragnea will not serve time in prison but he will be banned from holding public office. The decision can be appealed. Right after the sentence was delivered, Liviu Dragnea resigned from the Government and has announced he will also resign his position as executive president of the Social Democratic Party.


    According to the anti-corruption prosecutors, Dragnea, as his partys secretary general, organized a system by which local party members sent back real-time information about the turnout and the results, which is illegal before the voting deadline expires and he told local party members and mayors to use whatever means to swell the turnout.



    Romanian films in Cannes.


    The film “Head Up” by French filmmaker Emmanuelle Bercot, featuring Catherine Deneuve in the leading role, opened the Cannes Film festival on Wednesday. Over 50 productions have been included in the festival, of which 19 will compete for the Palme d’Or. 2 Romanian productions have been included in the Un Certain Regard section, namely, “The Treasure” by Corneliu Porumboiu and “One Floor Below” by Radu Muntean. Andrei Cretulescu’s short “Ramona” is also part of the competition.