Radio România Internațional

Category: The Week in Review

The Week in Review 7-13 December

Romania’s State Budget for 2015

The Government of Romania has finalised the draft state budget for 2015. It was designed on the basis of a 1.8% budget deficit, a macroeconomic indicator negotiated with the representatives of the International Monetary Fund, the European Commission and the World Bank, which early this week have completed a new assessment mission in Bucharest.

The Government also relies on a 2.2% inflation rate and a 2.5% economic growth rate. Under next year’s budget, the ministries of labour, finances, agriculture, European funds, transport and economy will have more money than in 2014. Conversely, the budgets of the healthcare, culture, administration and the interior ministry have been lowered. Prime Minister Victor Ponta explains:

“First of all, there will not be, and the budget bill does not include, any additional taxes or charges in 2015. Obviously the flat 16% tax remains in force. The charge on special construction projects will be lowered from 1.5% to 1% and this has been taken into account in calculating the state budget. It was a fundamental objective. All the current measures targeting economic development or social justice are covered by the draft budget.”

The 2015 budget also provides for increasing the national minimum wages in two stages. As of January the 1st, minimum wages will be 220 euros, to be further increased to 235 euros on July the 1st. Other social protection measures include a 5% increase of pension benefits and higher allowances for people with disabilities. A priority for next year is to encourage investments. Here is the minister delegate for budget, Darius Valcov:

“We chose to cut down those budgetary allocations that were excessive and to focus on investments. The budget for investment projects rose from 34 to 44 billion lei, that is by 23%, and the budget law will include a list of investment priorities. As far as the investments are concerned, I don’t believe there is any case of budget reduction.”

Another goal of the Romanian Government is to reduce the number of the unemployed by 20 thousand, to 465,000 people.

Romanian MPs reject postal voting bill

“The Romanian Parliament is a building haunted by Communists whose only care is to punish the Romanian citizens living abroad”. This is how MP Eugen Tomac harshly criticized the vote of the Chamber of Deputies, which on Tuesday rejected an older draft law on the introduction of postal voting for the parliamentary, presidential and European Parliament elections for the Romanians who live or reside abroad. The draft law had been rejected in February by the Senate as well.

The serious problems reported in the diaspora at the recent presidential election have once again pointed to the need to amend the election law. The two chambers of Romania’s Parliament have jointly decided that by June 30th 2015 a special parliamentary commission is to draft proposals to this end.

Several Romanians, of the thousands who queued for hours to cast their vote and failed to do so because of the flawed organisation of the voting process abroad this November, have filed criminal complaints. Dealt with by the General Prosecutor’s Office in a first stage, the case has been taken over by the National Anti-Corruption Directorate, which received, on Monday, from the Standing Electoral Authority, the documents it had requested for verification.

Is party switching unconstitutional?

Romania’s Constitutional Court will discuss on Wednesday, December 17th, a notification filed by the Liberal and Liberal Democrats MPs, according to which the law approving an emergency government ordinance on local elected officials switching parties comes against the Constitution.

Endorsed by the Chamber of Deputies, and also by the Senate this week, the law allows local elected officials to move from one party to another without losing their public office. The Opposition criticises the practice of party switching as one of the most damaging in Romanian politics. The leader of the National Liberal Party group in the Senate, Puiu Hasoti:

“After party switching altered voting majorities at local, county and national level, now this law further encourages it, which is unacceptable”.

The effects of winter flooding

Rivers and rivulets in the counties of Olt, Dolj, Teleorman, Mehedinti, Dambovita, Giurgiu and Ilfov have this week been under code red, orange and yellow alerts for flooding. Heavy rainfalls have affected 140 villages in the south of Romania, tens of roads and hundreds of hectares of farming land. Scores of people have been evacuated and landslides have been reported in several areas. The most affected of all counties is Teleorman in the south of Romania, where task forces have been mobilized to help the local authorities.

All Romanian football teams have been eliminated from the Europa League

Romania’s football champions Steaua Bucharest and vice-champions Astra from Giurgiu, in the south, ended their Europa League run after being defeated on Thursday. In their last Group J match, Steaua Bucharest lost to Ukraine’s Dinamo Kiev 0-2, and with only 7 points ranked 3rd in the standings. Astra Giurgiu lost 1-5 in an away match to FC Red Bull Salzburg from Austria, and ended on last position with only 4 points.

13 December 2014
The Week in Review December 1-5

Budget adjustment in Bucharest

The government in Bucharest has operated a third budget adjustment for this year. Most of the money goes to payments for entitlements earned by state employees in court. The additional amounts also go to cover the debts that some local authorities have towards hospitals, as well as for damages granted by the National Authority for the Restitution of Property. Minister delegate for budget Darius Valcov said that for 2015 the budget is thus exempt from paying over one billion Euro:

“Both the IMF and the EC support the adjustment project, appreciating the fact that the government managed to make payments ahead of time, for various purposes, creating some leeway for the fiscal year 2015.”

For the first time, state and local budget debts will be balanced out, while the general consolidated budget deficit will be within the 2.2% target. The Romanian authorities have announced substantial increases in the budget next year for several sectors, among them Health, Education and Transportation. According to Minister Valcov, the draft budget for 2015 does not provide for increases in taxation, an the emphasis will be on investments from European funds.

Decisions regarding the price of natural gas

Minister delegate for energy Razvan Nicolescu said that prices for energy, especially domestic natural gas for home consumption won’t go up on 1 January. Nicolescu said that in the last few days there has been a lot of speculation regarding energy prices, mainly natural gas, and gave assurances that the price of natural gas produced in Romania will not increase, at least in the first six months of next year. A new timeline for liberalization will be issued for 1 July 2015- 1 July 2021, taking into account the growing trend in the price of fuel in the region, as well as the longer period of time for alignment agreed upon with international financial institution, as announced by the Energy Department. The total liberalization of the natural gas market, including that for home consumption, was scheduled for 31 December 2018. Recently, however, Parliament in Bucharest has voted to extend this deadline by two and a half years.

The Anti-Corruption Directorate takes over the case of voting abroad

The Anti-Corruption Directorate took over the investigation into voting abroad from the General Prosecutor’s Office. The decision was made when anti-corruption prosecutors filed a request to this end, claiming that the investigation may fall under their jurisdiction. In the recent presidential elections in Romania, thousands of Romanians could not vote because of bad organization, which led to two consecutive foreign ministers resigning. Two days from the second round of elections, the General Prosecutor’s Office started an investigation into the events, not responsible parties. One of the situations under investigation is the fact that, between the two rounds of elections, it was claimed that there was no legal ground for opening additional polling stations. On November 29, president elect Klaus Iohannis posted on a social network that he expected a speedy resolution to this investigation. Asked for comments on the transfer of the investigation from the General Prosecutor’s Office to the Anti-Corruption Directorate, PM Victor Ponta said that the judiciary had to carry out its duties.

Romanian Foreign Minister Aurescu talks to US State Secretary John Kerry

Romanian Foreign Minister Bogdan Aurescu held talks on Thursday with US Secretary of State John Kerry, on the situation in the region, the elections in the Republic of Moldova, as well as the strategic partnership with the US, which Romania claims in a press release is at the core of its foreign policy. The two officials, meeting at the OSCE Ministerial Council, underlined the importance of Moldova putting together a government as soon as possible. Also on Thursday, Hoyt Yee, an official with the State Department in charge of Europe and Asia, said in an exclusive interview with Radio Romania’s Washington correspondent that his country looked forward to working with president elect Klaus Iohannis, and that the US saluted Romania’s contribution to security in the region. According to authorities in Bucharest, Romania and the US will soon see through the most important security project so far, the anti-ballistic missile shield, with elements in Romania.

Romania gets ranked for corruption

For the second year in a row, Romania was ranked 69th in terms of corruption in the annual report issued by Transparency International, which includes 175 countries. Romania gets 43 points in that ranking, which makes it one of the most corrupt countries in the EU, on a par with Bulgaria, Italy and Greece. The lowest ranking country in Europe is Ukraine, with 26 points, in terms of the perception of corruption. The highest ranking is Denmark, with 92 points out of 100, making it the least corrupt country in the world within this study.

6 December 2014
The Week in Review 23-30 November

The Social Democratic Party is in turmoil after losing the presidential elections

Tense, long but necessary is how prime minister Victor Ponta described the meeting of the Social Democrats’ National Executive Committee, the first to bring together the party’s leaders after Victor Ponta lost the presidential elections. One of the things agreed in the meeting was that the Social Democratic Party must stay in power. Following the departure of the Democratic Union of Ethnic Hungarians from the ruling coalition, the Dan Diaconescu Party of the People said it was willing to take its place in the government alongside the National Union for the Progress of Romania, the Conservative Party and the Reformist Liberal Party. Another important decision taken by the Social Democratic Party was to expel three of its prominent members from its ranks. Victor Ponta explains:

“The 80 colleagues who voted in favour of exclusion felt it was time to part ways, so that each could follow our own path. We also spoke about the future and the fact that a team must show cohesion in order to be able to overcome difficult moments.”

Fresh from the meeting, Marian Vangheline, one of the people excluded from the party, a former vice-president of the party, was very open about his feelings:

“Never in my life have I seen such an execution. Not even in the Communist Party. They are afraid of a free Congress and wanted us out of the way.”

A new Congress of the Social Democratic Party will be held in March. By then, the Social Democrats plan to come up with a new political project and a new team to rid itself of such labels as “communist” and “corrupt”.

The National Anticorruption Directorate makes public its activity report

Romania’s president elect Klaus Iohannis says corruption is Romania’s biggest internal problem of national security and one that leads to social and economic segregation and a reversal of values. Therefore, he says, the country’s political class is in dire need of moral cleansing. According to the chief prosecutor of the National Anticorruption Directorate, Laura Codruta Kovesi, people’s confidence in the institution she runs has grown. This is demonstrated, she says, by the large number of complaints filed by citizens and public institutions, with the exception of intelligence services, which informed 83% of all cases opened in the first ten months of the year. Laura Codruta Kovesi:

“So far, in 2014 we have received over 1,600 complaints and reports from private individuals and legal entities, compared to 1,032 in 2010. In my opinion, people will only ask the help of an institution if they have confidence in it and know they have a reasonable chance to receive a correct solution to their problem.”

No less than 1,007 persons have received corruption sentences this year alone.

Investigators look at suspicious deal worth tens of millions of euros

The National Land Return Authority, which is responsible for the return of land nationalised by the communist regime, is under scrutiny by anticorruption prosecutors. The body’s former head, Crinuta Dumitrean, has been arrested for a temporary period of 30 days, while its former vice-president Oana Vasilescu is under investigation as part of a case that also involves the chief of the organised crime and anti-terrorism body, Alina Bica, who is already under arrest.

The three are accused of abuse of office while serving in a committee handling the return of land confiscated during the communist regime. In 2011, they are suspected of approving the payment, to a businessman, of compensations amounting to three times the actual value of the land. This cost the state no less than 60 million euros. The Liberal Democrat MP Catalin Teodorescu and the ethnic Hungarian MP Marko Attila Gabor were also part of the committee, so prosecutors have requested the Chamber of Deputies to approve their arrest. It appears that businessman Dorin Cocos was also involved. The former husband of presidential candidate and head of the People’s Movement Party Elena Udrea, Cocos is believed to have requested 10 million euros in exchange for securing approval of the overvalued compensation.

High-profile names are involved in the Microsoft corruption scandal

A senator of the National Union for the Progress of Romania and former government secretary general, Serban Mihailescu was indicted by the National Anticorruption Directorate for his involvement in the Microsoft case regarding the purchase of IT licences for Romanian schools. Mihailescu is accused of asking for money in exchange for using his influence to benefit Fujitsu Siemens Computers, a Microsoft licensee in Romania. Suspected of abuse of office, the former Social Democrat education minister Ecaterina Andronescu was herself indicted as part of this case, along with 9 other former ministers from different governments, both right and left of centre.

Other persons under investigation are the businessmen Nicolae Dumitru and Dorin Cocos, as well as the former communications minister Gabriel Sandu and the mayor of Piatra Neamt, Gheorghe Stefan, all of whom are in temporary arrest, where they may spend another 30 days if the Supreme Court approves the extension of their temporary arrest warrants.

The Republic of Moldova holds parliamentary elections

The result of Sunday’s parliamentary elections in the Republic of Moldova will decided which way the country will be heading — West or back, to Russia. According to opinion polls, the three pro-European parties currently in Parliament may together obtain 40% of the votes, while the Party of the Communists has 20% of voting intentions. In Bucharest, where the entire political class supports Moldova’s European future, the result of Sunday’s vote is awaited with anticipation.

30 November 2014
The Week in Review 16-22 November 2014

Surprising winner in the presidential runoff in Romania

Christian Liberal Alliance presidential candidate Sibiu Mayor Klaus Iohannis won Sunday’s second round of the by nearly 9% ahead of his opponent, Social Democrat Prime Minister Victor Ponta, seen as favourite to win. The voter turnout was surprisingly high, standing at 64.10%, a record high for the last 18 years. Romanians in the Diaspora also hit the polls in large numbers, some 380,000 casting their votes. A less pleasant surprise was to see thousands of Romanians queuing up to vote, enduring the freezing rain and the cold, in front of embassies or consular offices in several European cities. The Constitutional Court on Friday validated Sunday’s ballot, which confirms Klaus Iohannis as the fourth president of Romania since the 1989 revolution. Klaus Iohannis is expected to take over at Cotroceni starting December 21, when the mandate of president Traian Basescu is due to come to an end.

The effects of the poor organisation of the second presidential ballot in the Diaspora

Flaws linked with the organization of the second round of the presidential election in the Diaspora have not remained without consequence. On Monday Foreign Minister Teodor Melescanu tendered his resignation, after the previous week his predecessor Titus Corlatean resigned for the same reasons, both assuming responsibility, although blaming the failure on the current election legislation, which they say prevented the opening of new polling stations. This resounding failure prompted Parliament to resume talks on a new election law. In another development, the General Prosecutor’s Office has started the investigation of how the authorities handled the voting process abroad. Hundreds of complaints were received accusing government ministers and public servants of interfering with the right to vote.

Several senators and deputies had their immunity lifted after the Chamber of Deputies voted against the amnesty law

The Chamber of Deputies on Tuesday evening voted against a draft law on amnesty and pardoning of MPs. Filed nearly a year ago, the project sparked the anger of the civil society. Following this Tuesday’s vote, Conservative MP Ion Dinita, Social-Democrat MP Ioan Adam and Liberal MP Mircea Roscau saw their immunity lifted. Previously the Supreme Court ruled in favour of placing Ioan Adam and Mircea Rosca under a pre-emptive 30-day arrest and of the non-custodial investigation of Ion Dinita. In another development, another two senators lost their immunity, Social-Democrat Ecaterina Andronescu and Serban Mihailescu representing the National Union for the Progress of Romania. Both are wanted in a high-profile corruption scandal involving the illegal selling of Microsoft products to schools. President Traian Basescu also green lighted the criminal investigation of former Liberal Minister Cristian David who is wanted for bribe-taking.

The head of the Directorate for the Investigation of Organized Crime and Terrorism is arrested

The head of Romania’s organized crime division (DIICOT) Alina Bica was detained by anti-corruption prosecutors, who’ve accused Bica of abuse of office. Bica is facing charges of having committed irregularities while she was an undersecretary with the Ministry of Justice, and member of a committee that operated returns of land seized by the communist regime. In 2011, together with two other colleagues, also under investigation, she allegedly facilitated restitution payments for a 13-hectare plot of land on Bucharest’s outskirts. Based on a gross overvaluation, the payments ended up costing the Romanian state 62 million euros.

Russia is the guest of honour of the 21st Gaudeamus Book and Education Fair in Bucharest

The 21st edition of the Gaudeamus International Book and Education Fair is taking place in Bucharest until November 23. Over 300 Romanian and foreign publishers, education institutions and cultural institutes are attending the fair. The Russian Federation is this year’s guest of honour. 17 writers, literary critics and journalists from Russia will organize book launches, presentations, signing sessions and debates. Organizers have prepared a total of 750 events, a record high in the history of the fair. A highlight of the of the festival is the launch of the bilingual volume entitled “Distance will never come between us”, based on interviews with and pictures of listeners of Radio Romania International from 20 countries, winners of Grand Prizes in contests organized by Radio Romania International since 1995.

2014 — a good year for the national football team

Romania’s national football won the last friendly match of 2014 against Denmark 2-nil this Tuesday on National Arena Stadium in Bucharest. Following this result Romania is now ranked 15th in FIFA standings, an all-time best since 2008. Following the wins against Greece and Finland, both away from home, the home draw against Hungary and last week’s 2-nil win against Northern Ireland, Romania ranks first in Group F. Over the last two years, Romania went up 42 places in FIFA standings. In September 2012 Romania ranked 57th, an all-time low. Romania’s best ranking in FIFA standings was 1997, when Romania was in 3rd place.

23 November 2014
The Week in Review 10-16 November

The second round of the presidential elections in Romania is held on Sunday

Prime Minister Victor Ponta, running for president on behalf of an alliance comprising the Social Democratic Party, the National Union for the Progress of Romania and the Conservative Party and Klaus Iohannis, the mayor of the city of Sibiu, a candidate of the Christian Liberal Alliance made up of the National Liberal Party and the Liberal Democratic Party, will compete in second round of the presidential elections in Romania due on November 16th. In the first round of the presidential elections Victor Ponta won 40.44% of the votes and Klaus Iohannis 30.37%. Authorities have taken measures so that voting at polling stations abroad should unfold smoothly. In the first round of voting, on November 2nd, Romanian citizens eager to exercise their civic right to vote waited in line for hours and, in the case of many thousands, did not even manage to vote at all. For this reason, foreign minister Titus Corlatean resigned, his place being taken by the former Foreign Intelligence Service chief, Teodor Melescanu. In order to ease voting abroad, the Ministry of Foreign Affairs has decided that all 294 polling stations outside the country will have 7 polling booths and 7 stamps each, the maximum number allowed under the law. All necessary materials, among which 800,000 ballot papers, have already been supplied.

The European Parliament ratifies EU – Moldova’s Association Agreement

The European Parliament ratified, in Brussels, the EU-Moldova Association agreement, which includes a Deep and Comprehensive Free Trade Agreement (DCFTA). EU deputies see this as a clear acknowledgment of the success of Moldova’s political and economic reform process. The Romanian Foreign Ministry hailed the decision and pointed put that Romania would continue to support, both financially and technically, the Agreement’s implementation by the Chisinau authorities, in order to reach the strategic goal of Moldova’s EU accession as soon as possible. We remind you that Romania was the first EU country to ratify this agreement, which will enter into force after the parliaments of all 28 EU state approve it.

Social-Democrat Ioan Mircea Pascu is elected vice-president of the European Parliament

Social Democrat MEP Ioan Mircea Pascu this week was elected vice-president of the European Parliament by majority vote. Vice-president of the Committee for Foreign Affairs, Ioan Mircea Pascu applied for this position after this seat was vacated by Romanian MEP Corina Cretu, who took over as European Commissioner for Regional Policy as part of the European executive led by Jean-Claude Juncker.

The European Commission will help farmers affected by the Russian food export ban

Agriculture Ministers of 21 EU Member States, including Romania, have called on the European Commission to earmark additional funds to help farmers affected by the Russian food embargo, as well as in the event of any other emerging crises. Member States insist that the Commission compensate farmers by disbursing 450 million euros from the Common Agricultural Policy. The Commission however wants to use the money to cover certain deficits and to allot 432 million euros to farmers from a “specific crisis reserve”. The Commission has already announced it would compensate loss-incurring vegetable growers and dairy producers in the value of some 344 million euros. A decision in that respect will be taken next week, as part of negotiations for the EU budget in 2015.

Romania’s economy grew by 1.9% in the third quarter of the year

Romania’s GDP grew by 1.9% in the third quarter of the year compared to the second quarter and by 3.3% compared to the same period last year, according to the latest figures made public by the National Institute for Statistics. In October, the International Monetary Fund revised its GDP growth forecast for this year up to 2.4%. The authorities in Bucharest are expecting a 2.8% economic growth rate in 2014 after a 3.5% growth rate in 2013, one of the highest in Europe. Also, Romania’s 2.4% industrial output growth in September compared to the previous month is the fifth highest in the European Union. According to the National Institute for Statistics, industrial output across the Union was 0.6% higher during this period, with the highest increases being reported by Croatia, the Czech Republic, Ireland, Hungary and Romania.

15 November 2014
The Week in Review (3-9.11.2014)

The Social Democrat prime minister Victor Ponta and the Liberal leader Klaus Iohannis face each other in the second round of presidential elections

Victor Ponta, the presidential candidate of a political alliance that brings together the Social Democratic Party, the National Union for the Progress of Romania and the Conservative Party will face off in the second round run-off on November 16th the Sibiu mayor Klaus Iohannis, who is running on behalf of the centre-right Christian Liberal Alliance. In the first round, when Romanian voters had to choose from among 14 presidential candidates, Ponta won 40.44 % and Iohannis 30.37% of the vote. Voter turnout stood at 53.17%. Ahead of the second round, Victor Ponta has already secured the support of several first-round candidates, such as the former Liberal prime minister Calin Popescu Tariceanu, two populist politicians, Corneliu Vadim Tudor and Dan Diaconescu, and the former head of the Romanian Foreign Intelligence Service, Teodor Melescanu. Klaus Iohannis will be supported by the centre-right independent presidential candidate and former justice minister Monica Macovei. The Democratic Union of Ethnic Hungarians in Romania, which forms part of the ruling coalition, has urged its supporters to vote in the second round as their conscience dictates.

Romanian nationals living abroad went to the polls in the first round of the presidential elections in large numbers

Romanian nationals living abroad went to the polls in large numbers. A record number of 161,000 people cast their ballots in the first round of the presidential elections in 294 polling stations set up abroad. In some cases, people complained they had to wait in line for hours and many did not even manage to cast their vote. To prevent a similar situation on November 16th, the Romanian foreign ministry and the Central Election Bureau have agreed on a series of measures to simplify the voting process. Thus, Romanian voters abroad can now download from the Internet the self-declaration form they are required to fill in, in order to be able to cast their vote. Voters may fill in these declarations before going to the polls, but have to sign and date them before the polling station staff. Also, the number of polling booths in the existing polling stations will be increased.

The European Commissioner for Regional Policy Corina Cretu attends the launch of the Partnership Agreement with Romania in Bucharest

The Partnership Agreement between Romania and the European Commission has been launched in Bucharest in the presence of the European Commissioner for Regional Policy Corina Cretu. The document sets down the rules for the use of European structural and investment funds over the following years and has been drafted after talks with European experts that lasted almost a year. The European Commission adopted the Partnership Agreement with Romania in August, Romania thus becoming the 11th European member state to secure the approval of this document. Between 2014 and 2020, Romania will have access to 43 billion euros worth of European funds, of which 22 billion account for cohesion funds. The money is to be used for infrastructure projects, healthcare and education, development and the modernisation of local communities, the creation of new jobs and in order to bridge development gaps between Romania and the European Union.

The National Bank of Romania has lowered its inflation rate forecast for the end of the year

The National Bank of Romania has lowered its inflation rate forecast for the end of the year from 2.2 to 1.5%. The Bank’s governor Mugur Isarescu said this is the result of a drop in oil prices, stable natural gas prices, a good crop and an increase of imports from states who no longer have trade relations with Russia. In Isarescu’s opinion, the stability of the inflation rate expected next year may generate long-term economic growth. In another move, the National Bank has again cut the monetary policy interest rate by 0.25% to 2.75% per year, as well the rates on minimum statutory reserves for liabilities in foreign currencies from 16 to 14%. On the other hand, the European Commission’s autumn forecast indicates that Romania is out of recession, as the country’s economy grew by 1% of the GDP in the third quarter compared to the previous quarter after falling for two quarters in a row. The Commission has also revised Romania’s economic growth forecast for 2014 down from 2.5% to 2%. Private consumption and net exports were the main drivers of growth, while investments continued to contribute negatively.

Only one Romanian football side still has chances in the Europa League

Romania’s football champions Steaua Bucharest drew 2-all away against Rio Ave of Portugal in a Europa League Group J game. With 7 points, Steaua now rank second in their group after Dinamo Kiev, who defeated the Danish side Aalborg at home 2-nil. In group D, the Romanian side Astra Giurgiu drew 1-all at home against the Scottish side Celtic Glasgow and thus lost any chances of qualifying to the next stage in the competition. In Astra’s group, Red Bull Salzburg defeated the Croatian side Dinamo Zagreb to secure qualification to the next stage.

8 November 2014
The Week in Review, October 27 – November 2

Presidential Elections in Romania

The first presidential ballot this coming Sunday will see eighteen million Romanian voters choosing from among 14 candidates the one who will head the country in the next five years. Vying for the presidential seat are two representatives of political alliances, eight candidates backed by political parties, and four independent candidates. The election campaign started on October the 3rd, and all along it has been dented by incendiary disclosures regarding corruption among high-ranking politicians and business tycoons. Everyone keeps their hopes high, however, that the ongoing political scandals will not nourish the indifference of Romanian voters, whose political apathy has become obvious ever since the early 1990s, and has translated into an increasingly low turnout. The eighteen thousand five hundred and fifty polls in Romania and 294 abroad are waiting for Romanians to show up in great numbers. Nearly 21 million ballots have been printed and more than ninety four thousand stamps with the word VOTED on them have been made available. The second round was scheduled for November 16th.

The campaign targeting high-level corruption

The campaign targeting high-level corruption has continued this week. The National Anti-Corruption Directorate has been striking the power and the opposition alike, current and former ministers, parliamentarians and mayors. The High Court of Cassation and Justice has ruled that former Social Democrat MP Viorel Hrebenciuc, one of the most influential representatives of the left, be held in temporary custody. Jointly with some of his fellow party members, several magistrates, as well as his son, Hrebenciuc is accused of involvement in illegal returns of tens of thousands of hectares of farmland and forest. Among those heard for their alleged involvement in the aforementioned returns is Prince Paul, an illegitimate offspring of Romania’s King Carol II. According to the National Anti-Corruption Directorate, the damage caused to the country’s National Forestry Division stands at more than 300 million Euro. Prosecutors with the same Anti-Corruption Directorate have also sent to temporary custody a couple of political or financial allies of the incumbent right-of-center president Traian Basescu, on suspicion that, in exchange for undue benefits worth millions of Euros, acted as middle persons in the case of overvalued IT licenses for the education system. Among them, the former Communication Minister, member of the Liberal Democratic Party (currently in opposition) Gabriel Sandu, and businessman Dorin Cocos. Until last year, the latter was married to Elena Udrea, a current presidential candidate and president of People’s Movement Party.

European Commission President Jose Manuel Barroso’s term in office comes to an end

The acting president of the European Commission, the Portuguese Jose Manuel Barroso, on Wednesday presided the last meeting of the EU executive. The EU enlargement from 15 to 28 countries was one of the biggest accomplishments of Barroso’s two consecutive terms in office. He has voiced his regret, though, for the reluctance of some of the Member States and the lack of solidarity regarding some decisions. In Jose Manuel Barroso’s opinion, what is worrying is citizens’ lack of trust in the European institutions, as well as social injustice, issues that must be resolved by the next European Commission, which starts its activity on November 1st. Romania’s representative in the new executive headed by Luxembourgish Christian Democrat Jean-Claude Juncker, Social Democrat Corina Cretu, will take the office of European Commissioner for Regional Policies.

European Aid for Romania

The EU will earmark almost 650 million Euro for energy infrastructure projects. That includes the gas pipeline between Bulgaria and Austria, which crosses Romania and Hungary, and the company handling it is Transgaz, will get over a million and a half Euro. The money is provided through the European connection mechanism, which is granted mostly for natural gas infrastructure projects in the Baltic Sea area, as well as for Central and South East Europe. The projects aim to provide energy security for Europe, and to create a European energy market. At the same time, in a program covering all the 28 member states, the EU provides aid, starting on November 17, for underprivileged persons. For Romania, this means aid for over 1,200 families and single people. The Romanian postal service has distributed over 2.6 million vouchers, worth around 28 Euro each, which may translate into 27 kilograms of food. The government in Bucharest has allocated almost 100 million lei, the equivalent of 22 million Euro, for restoring infrastructure destroyed by the floods that occurred between July and September, to be distributed to 171 towns and villages in 15 counties.

Romania Appreciates the Outcome of Elections in Ukraine

The Romanian Foreign Ministry saluted on Monday the outcome of the election in neighbouring Ukraine, and stated that it is an important part of the democratic process in this country, which needs to implement reforms necessary for joining united Europe. The ministry also saluted the turnout at the polls, which it saw as a commitment towards reforming the state and society as a whole. We recall that in last Sunday’s parliamentary elections, pro-Western Ukrainians have won a significant victory, as over three quarters of voters supported the orientation of the government in Kiev.

1 November 2014
The Week in Review, October 20-27

Dismissals and resignations within the Social Democratic Party, the most important party of the government coalition

It’s been a tough week for the Social Democratic leader Victor Ponta, who runs for president in the November 2nd elections. His party has lately been shaken by corruption scandals and infighting over the party’s future leadership. Given the circumstances, Victor Ponta had no choice but to bring party members to order. On Tuesday, during an emergency meeting, the Social Democrats decided to suspend three of their emblematic leaders from all the functions they held within the party. Mayor of Bucharest’s District 5, Marian Vanghelie, and Sebastian Ghita, a millionaire Member of Parliament, were sanctioned for heavy language used during recent exchanges. Also suspended was the party spokesperson himself, Senator Dan Sova, who was indicted Monday by anti-corruption prosecutors for influence peddling. Deputy Viorel Hrebenciuc, the former leader of the Social Democratic group in Parliament, is being investigated in the same case. He resigned from Parliament, after being accused of using his influence with Sova to persuade the latter to introduce an amnesty and pardons bill in Parliament. Hrebenciuc is also under investigation for influence peddling, alongside Deputy Ioan Adam and Senator Ilie Sarbu, both from the Social Democratic Party, in the case of the return of tens of thousands of hectares of forest, a case in which prosecutors claim the state incurred losses of over 300 million Euros. Investigated in the same case, Andrei Hrebenciuc, the son of Viorel Hrebenciuc, has been placed under preventive arrest for 30 days. He is accused of setting up a criminal group, of complicity to influence peddling and money laundering.

Romania’s President attended the autumn European Council in Brussels

Romanian President Traian Basescu attended the European Council meeting, on Thursday and Friday in Brussels, focusing mainly on energy security, climate change and eradicating Ebola. After heated debates, European leaders have struck a broad climate change pact obliging the EU as a whole to cut greenhouse gas emissions by at least 40% by 2030 as compared to 1990. A 27% target was agreed for renewable energy market share. New measures were approved to reduce the EU’s gas and electricity dependency, against the crisis in Ukraine and the Middle East. Another important decision taken at the Summit was to put Christos Stylianides, the new EU Commissioner for Humanitarian Aid and Crisis Management, in charge of dealing with the Ebola issue in Europe. The EU has also decided to earmark 25 million euros to create a vaccine against the deadly virus.

Romanian Foreign Minister holds talks with the NATO Secretary General

The Romanian Foreign Minister Titus Corlatean had a meeting on Tuesday in Brussels with the NATO’ new Secretary General, Jens Stoltenberg. Talks focused on ways of implementing the decisions made at the recent NATO summit in Wales, the priorities of the new NATO head and various topical issues related to international relations. Corlatean said Romania would actively contribute to outlining the North Atlantic alliance’s long-term response to the security situation in the Black Sea area. The Romanian Minister pleaded for a substantial strengthening of cooperation between the Alliance and its Eastern partners, particularly Georgia, Ukraine and the Republic of Moldova, and reiterated Bucharest’s steady support for NATO’s open door policy. In his turn, the NATO official thanked Romania for its substantial political and military contribution within NATO, for strengthening the Alliance’s ability to deal with the new security challenges and for developing cooperation with other international organisations.

European Research Centre in the Danube Delta

The south-eastern Romanian village of Murighiol, located in the Danube Delta Biosphere Reserve, will host the command centre of a pan-European research project. Romanian and European scientists will look for solutions to problems such as flooding, landslides or pollution. The centre will also train experts in this field.

The Magurele-based Integrated Centre for Advanced Laser Technology has been inaugurated

The strongest laser in Europe and the second largest in the world will become operational in Magurele, close to the city of Bucharest, as of 2017. Part of this project, the Integrated Centre for Advanced Laser Technologies in Magurele, which, starting 2018, will conduct programs of configuration and preparation of nuclear physics experiments, was inaugurated on Tuesday. Minister delegate for research and development Mihnea Costoiu has said that this centre opens new prospects for research in physics, chemistry, biology, medicine, energy, and many other fields, which will also impact Romanian economy.

European Parliament Ok-ed the New European Commission

The European Parliament approved on Wednesday, in Strasbourg, the new European Commission headed by Jean-Claude Junker, due to take office on 1st of November. Romania’s Corina Cretu will be part of the new European Commission, as holder of the regional policy portfolio.

25 October 2014
The Week in Review 13-19 October

President Traian Basescu attends the Europe-Asia Summit

Chaired by the European Council President, Herman Van Rompuy, and by the European Commission President, Jose Manuel Barroso, the Europe-Asia Summit in Milan, Italy, gathered 53 heads of state and government from both continents, including Romania’s president Traian Basescu. The summit was an opportunity to discuss a wide range of issues important for both Europe and Asia. Together, the two continents make up for half of the world’s GDP and 60% of the global trade. The meeting focused on economic cooperation and occasioned a number of bilateral talks on finding solutions to the Ukrainian crisis and the delivery of Russian gas to Europe. Russian President Vladimir Putin and German Chancellor Angela Merkel also approached these two sensitive issues on Thursday. According to President Putin’s spokesperson, opinions continue to be divergent as to the origin of the Ukraine conflict and the reasons that led to the current situation in the region. On Thursday, Vladimir Putin held talks with Ukraine’s President Petro Poroshenko in the presence of European leaders.

The government takes fresh social protection measures

In Romania child benefits for 500,000 children from over 280,000 low-income families will be doubled as of November 1. The minister for labour and social protection Rovana Plumb explained that this was part of a family support allowance on top of the standard child benefit granted to all children in Romania. The family support allowance is granted to families whose net income per family member is below 530 lei, the equivalent of 120 euros. The government has also increased the allowance for foster children and has doubled the food allowance for 60,000 children institutionalized children or children placed in foster care. The minister has also announced the doubling of daily food allowances for adults with disabilities or in care homes as of next year. Previously, the leftist government in Bucharest promised to increase, as of 2015, the gross minimum wage by almost 10% to reach 975 lei, the equivalent of 222 euros, pensions by 5% and disability allowances by 16%.

New corruption scandals break out in Romania

The National Anti-corruption Directorate investigates the illegal return of thousands of hectares of forestland, which caused the Romsilva National Forestry Authority over 300 million euros worth of damages. Suspects include the Social Democrat MPs Ioan Adam, Viorel Hrebenciuc and Ilie Sarbu, as well as the illegitimate son of King Carol II of Romania, Prince Paul and his wife. Search warrants have been issued this week in the Microsoft case, which refers to the purchase of IT licences for Romanian schools. Nine former ministers from both left and right wing parties are suspected of influence peddling, money laundering, abuse of office and bribe taking. Prosecutors can now start the prosecution of the former communications minister, the Liberal Democrat MP Valerian Vreme. Several businesspeople as well as the former chief of Romania’s Foreign Intelligence Service, Catalin Harnagea, are suspects in the case. Also this week, the Social Democrat MP Miron Mitrea has been sentenced to 2 years in prison for bribe taking. The sentence can be appealed.

Ebola becomes a global concern

Tougher safety measures have been taken in Europe and the US due to the continuous spread of Ebola. With almost 9,000 people contaminated and some 4,500 killed, the most dangerous disease of the moment seems to have gone out of control. The Ebola virus has so far been detected in seven countries, that is Sierra Leone, Guinea, Liberia, Nigeria and Senegal, which are the most affected, but also Spain and the US. As a precautionary measure, Romanian authorities have decided to allot 5.5 million euros to set up a mobile hospital in the proximity of Bucharest, where people potentially contaminated with Ebola can be treated.

Romania’s national football side needs a new manager

The Romanian Football Federation and the manager of the national side Victor Piturca terminated their contract amicably on Thursday evening. On the same evening, Piturca signed with Saudi Arabia’s Al-Ittihad, ranking 2nd in the Saudi championship. During his tenure, the Romanian side clinched two wins away, in Greece and Finland, and a draw against Hungary as part of the qualifying games for the 2016 European Championship. Romania now ranks second in Group F, a position, which secures their qualification to the final tournament.

18 October 2014
The Week in Review, October 6- 12

Final sentence in Rompetrom case

Eight individuals, including a Senator and an ex-Minister of Communications, were sent to prison by the Bucharest Court of Appeals, in one of the most resounding investigations in post-communist Romania. Senator Sorin Rosca Stanescu, known for his journalistic work, was sentenced to 2 years and 4 months behind bars, for using privileged information and establishing a crime group, while the ex-Minister Sorin Pantis, already imprisoned over his involvement in another corruption case, received another prison sentence for complicity in manipulating the capital market and establishing a crime group. Four other persons received suspended sentences. The star of the investigation, the controversial tycoon Dinu Patriciu, for whom prosecutors had requested for a 20-year prison sentence, died in August in London. He was accused of having appropriated 85 million US dollars between 1999 and 2001 and of having manipulated the trading of shares at the Bucharest Stock Exchange in 2004. The final ruling in the Rompetrol case, as it is known to the general public, comes 8 years after the start of the trial.

Military base in Deveselu, under US command

The US Army Friday took over the command of the military base in Deveselu, southern Romania, where NATO anti-missile defense elements will be placed. The base will host a last-generation AEGIS radar and nearly 25 interceptors, scheduled to become operational in 2015. In the past 2 years the USA allotted some 100 million US dollars for the upgrade of the Deveselu base. Romania agreed to host these elements of the American missile defense system in Europe in September 2011. The system is designed to counter attacks from what the US sees as rogue states, such as Iran.

Preparations against Ebola infection

Romania is prepared for possible Ebola infection cases, even though the risk is very low, Raed Arafat, State Secretary with the Interior Ministry, has announced. The government has already earmarked close to 6 million euros for prevention measures. In case of Ebola suspicions, the testing will be conducted in labs in Germany. According to the Romanian authorities, prospective patients will be taken to a fully equipped field military hospital to be mounted near Bucharest. The measures were taken against the backdrop of growing fears concerning the spread of Ebola in Europe.

Romania Fights Unemployment

Romanian Labour Minister Rovana Plumb attended in Milan the conference on employment in Europe, organized by the Italian presidency of the EU Council. There she spoke about concrete measures that the leftist Government in Romania promoted in order to fight unemployment.

Rovana Plumb: ”First of all, the national minimum wage went up, reinvested profits are no longer taxed, and, starting November this year, employers will pay lower contributions to the social security fund, which will have positive effects on employment.”

Attending the meeting in Milan were, among others, German Chancellor Angela Merkel, French President Francois Hollande, Spanish Prime Minister Mariano Rajoi and the Premier of the host country, Matteo Renzi. The participants mainly discussed the allocation, at European level, of some 20 billion Euros and the simplification of procedures on the basis of which this money will be used in the fight against unemployment, which, in countries such as Spain and Greece, has become a grave social issue. In Romania, the rate of unemployment has for years been standing at around 7%, but, youth unemployment has exceeded 25%, which worries authorities the most.

Romanian Government Takes Measures that Benefit the Romanian Diaspora

The Romanian Government has approved the “First House” Program for the Romanians who legally live and work abroad. They can access a loan to buy an apartment in a building or to build their own house. The government says that along with the extension of the “First House” and “First Car” programs for the Romanians in the Diaspora, they will be stimulated to come back home. In another move, the executive has decided that consular fees for issuing birth certificates for the children born abroad from Romanian parents, are no longer an obligation, if those documents are drawn up within six months since birth. Also, travel documents for children under 6 shall be issued for free.

A Romanian-born Researcher Wins the Nobel Prize in Chemistry

Romanian-born German researcher Stefan Hell is the latest recipient of the Nobel Prize in Chemistry. Alongside two American scientists he got the award for outstanding achievements in the development of fluorescent microscopy. Stefan Hell got his PhD Degree at Heidelberg University and he is also the Director of the “Max Planck” Chemistry and Biophysics Institute. In 2012 he got the title of Doctor Honoris Causa granted by the “Vasile Goldis” University in Arad, western Romania, his native city.

11 October 2014
The Week in Review, September 29 – October 3

Start of the presidential election campaign in Romania

Friday saw the start of the campaign for the election of Romania’s president due in November. The first round of voting was scheduled on November 2nd and the second one on November 16th. Running for president are 14 candidates- two representing several alliances, eight supported by political parties and four independents. According to opinion polls, the second round will most likely see the Social Democrat PM Victor Ponta pitted against the Liberal Klaus Iohannis, representing the Christian Liberal Alliance made up of the National Liberal Party and the Liberal Democratic Party. Other candidates running for the presidential seat are the president of the Senate, Calin Popescu Tariceanu, the leader of the Democratic Union of Ethnic Hungarians in Romania, Kelemen Hunor, the independent MEP Moncia Macovei and the leader of the opposition, pro-presidential People’s Movement Party, Elena Udrea. 18,550 polling stations have been set up in Romania and aboard.

Romanian Corina Cretu is the new EU Regional Policy Commissioner

The Social Democrat MEP Corina Cretu, Romania’s proposal for European Commissioner, was OK-ed by the European Parliament specialized committee. At the hearings she promised zero tolerance to fraud and pleaded for solidarity with the member states. Corina Cretu was nominated by the new president of the European Commission, Jean Claude Juncker, for the Regional Policy portfolio where she will manage a budget of 350 billion euros between 2014- 2020. A member of the European Parliament since 2007, Corina Cretu is currently vice-president of the European Parliament. The new EC will start its activity on November 1st.

A new academic year started in Romania on October 1st

Over 450,000 Romanian students started a new academic year on Wednesday, October 1st. The number of students is smaller than last year and they complain about higher taxes, a smaller number of faculties and specializations and slashed student transit subsidies. Education Ministry representatives have announced that the additional funds received under the recent budget rectification will cover the students’ internship scholarships, transit costs and some of their research programs. The new academic year brings along some new legal provisions, such as the reintroduction of part-time PhD programs and the possibility, for universities, to offer postgraduate courses.

Kiev hosted the Romania-Ukraine-The Republic of Moldova trilateral

The Romanian and Ukrainian prime ministers Victor Ponta and Arseniy Yatsenyuk on Thursday signed an agreement in Kiev on small-scale border trade between the two countries. Therefore, 2 million people living near the border will be able to travel to the other country without a visa. Kiev also hosted the trilateral of Romania, Ukraine and the Republic of Moldova. Joining the talks between the Romania and Ukrainian prime ministers was also the Moldovan PM Iurie Leanca. Victor Ponta conveyed to his Ukrainian and Moldovan counterparts Romania’s wish for these two countries to join the EU as soon as possible. Victor Ponta and Iurie Leanca also met with the Ukrainian president Petro Porosenko.

The Romanian Government passed a 2nd budget rectification for 2014

The Romanian Government approved the 2nd budget rectification for 2014, which is a positive one, all in all. The local authorities and the Labor Ministry are the main beneficiaries of the budget rectification alongside the education, healthcare, interior, foreign and regional development ministries as well as the special services. The ministries whose budgets were cut are the finance and agriculture ones. On the other hand as of October 1st the social security contributions to be paid by employers dropped by 5%. Also as of October 1st as many as 30 thousand pensioners and 12 thousand mothers will benefit from fiscal amnesty following miscalculations by state employees.

The National Anti-Corruption Directorate started the prosecution of 9 former ministers in the so-called Microsoft file

The National Anti-Corruption Directorate asked for the lifting of immunity of 9 former ministers from different parties and governments with a view to starting their prosecution. They are suspected of influence peddling, bribe taking and giving, money laundering and abuse of office in a file regarding the granting of licenses and products by American giant Microsoft. The accusations in this file were formulated back in 2012 when the Romanian government announced it purchased, through several intermediaries, software for schools at a price 30% up to 40% higher than the average market price.

Two Romanian football teams were defeated in the Europa League

The two Romanian teams playing in the Europe League groups lost the matches played on Thursday. In group J, champion Steaua Bucharest lost 1-3 the away match against the Ukrainians from Dinamo Kiev, while in group D the vice-champions Astra Giurgiu were defeated on home turf 1-2 by Red Bull Salzburg. Steaua ranks 2nd in a group that also includes the Danish team Aalborg and the Portuguese from Rio Ave. Astra is ranked last in its group that also includes Celtic Glasgow from Scotland and Dinamo Zagreb from Croatia.

5 October 2014
The Week in Review 20-27 September

Prime Minister Victor Ponta delivers speech before the UN General Assembly

Romania rejects any kind of external pressure exerted over East European states and firmly supports Ukraine’s integrity and sovereignty, Prime Minister Victor Ponta has said in a speech delivered before the UN General Assembly convened in New York in its 69th plenary sitting. The aggressive actions of the Russian Federation in Ukraine have a very strong impact over East European states, PM Ponta has pointed out. In his opinion, key to regional stability is regional cooperation and the promotion of the universal principles stipulated by the UN Charter. Romania has voiced its support for achieving international solidarity in order to be able to face the new terrorist threat. The proliferation of radical Islamic groups and the emergence of groups like the Islamic State that threaten to destabilize the whole Middle East is deeply worrying. That is why all countries must be united in their battle against terrorism, Prime Minister Ponta has concluded.

Romania’s Presidential Candidates

Tuesday at midnight was the deadline for the submission of candidacies at the Central Electoral Bureau for the presidential election due in November. 14 candidates will compete for the country’s presidential seat. The nearing elections will be quite different from the previous ones for a number of reasons. It is the first time when two women are running for president. One of them is Monica Macovei, currently a member of the European Parliament, who runs as an independent. The other one is Elena Udrea, the leader of the pro-presidential People’s Movement Party. A first is also the presence among the presidential candidates of a former intelligence service chief, Teodor Melescanu, who has just resigned his position. Prime Minister Victor Ponta, representing the Social Democratic Party, and Klaus Iohannis, the candidate of the centre-right opposition representing the Christian Liberal Alliance, have the highest chances to win the elections. The mayor of the central Romanian city of Sibiu, Iohannis is waiting for the verdict of the High Court of Cassation and Justice in a file in which he has been declared incompatible by the National Integrity Agency. Klaus Iohannis is holding two official seats simultaneously, one of Mayor and one of representative of the municipality in the board of two companies.

Romanian-Chinese cooperation

Romania wants to collaborate with China in the field of infrastructure projects. Among them is the construction of a high-speed railway connecting the capital city Bucharest to the northeastern city of Iasi and then to the border with the Republic of Moldova with the prospect of extending it towards Chisinau. The construction of a railway belt around Bucharest is also among the projects. After talks with the Chinese vice president Zhang Gaoli, who is paying an official visit to Romania, the Romanian Minister of Regional Development, deputy prime minister Liviu Dragnea, has said that a meeting between Romanian and Chinese experts is due in the first half of October. The two infrastructure projects might cost around 6 or 7 billion euros each.

Romania and the EU funds

As of next year farmers owning between 5 and 30 hectares of land will get higher subsidies, from both EU funds and the state budget, of 210 euros per hectare, Agriculture Minister Daniel Constantin has announced. Minister Constantin has explained that the measure is aimed at encouraging the clustering of farmland, so as to allow people who own smaller plots of farmland to join efforts so as to get higher subsidies. As regards state support for cultivating Romanian varieties of vegetables, the Ministry of Agriculture has announced that more subsidies are pending the approval of the European Commission. Private projects for European funding will be processed based on the “first arrived- first served” algorithm, which will mark a premiere at European level, Romanian Minister for European Funds, Eugen Teodorovici has explained. According to Minister Teodorovici rules will be very strict and tough but also simple. The new rules are aimed at ensuring a better absorption of EU funds.

30 Romanian children saved from traffickers’ hands

Romanian policemen took part in an extensive operation coordinated by Europol, the law enforcement agency of the European Union. Europol announced that 1027 individuals were arrested as part of the largest ever coordinated operation against organised crime. Between 15 and 23 September, law enforcement authorities from 34 countries, coordinated and supported by Europol from its headquarters in The Hague, joined forces in Operation Archimedes. As many as 10 thousand immigrants were checked, over 1,000 traffickers arrested and hundreds of victims rescued, among whom 30 children from Romania. According to the Romanian General Police Inspectorate, checks were carried out in the area of the Henri Coanda International Airport in Bucharest and at several border checkpoints. Out of almost 100 people heard by prosecutors, 14 were seized on grounds of involvement in human trafficking. Romanian policemen confiscated over 4 kilograms of suspect pills and substances, as part of the same operation.

27 September 2014
The Week in Review, 13 – 20 September

Romania and the energy market

This week, Romania has joined the ranks of countries to face a cut in Russian gas deliveries, following a unilateral decision from Russia and without any prior notice. Although in Romania’s case, the amount of the cut is not worrying, Bucharest fears that Moscow is now only experimenting with a practice it may use as a weapon in winter. Romania’s minister delegate for energy Razvan Nicolescu has promised that people will not be affected in winter, irrespective of Russia’s policy in the energy field. In preparation for what’s to come, Parliament’s decision-making body, the Chamber of Deputies, has passed a bill to amend and complement the law on electricity and natural gas and the law on oil. One new provision is to postpone the liberalisation of gas prices for another two years. Romania previously agreed with its foreign lenders, the International Monetary Fund, the European Commission and the World Bank, to liberalise prices on the gas market as of 31st December 2018. Prime minister Victor Ponta said the move was postponed because the population would not be able to cope with higher prices without state help. In another move, the government in Bucharest has been trying to persuade the Italian electricity company Enel, which is involved in the production and distribution of electricity, not to give up its operations in Romania. Enel’s sudden decision came as a surprise for economic analysts, because the company has had significant profits on the local energy market. Experts say the pull-out of Enel, which is considered a strategic partner, may discourage other potential foreign investors.

The reduction of employers’ social security contributions

A controversial regulation on the 5% cut in employers’ social security contributions will come into force on 1st October, following its being signed into law by president Traian Basescu. The latter said that, while the measure is useful, it leads to losses the government will not be able to cover, in particular in 2015. The president says the social security budget will thus lose 3.2 billion euros, which might be compensated for through an increase in taxes. The government says, however, that the cut in social security contributions, which was insistently requested by the business community, will reduce fiscal pressure on entrepreneurs and create new jobs. The centre-right opposition has criticised the timing of the new law, just two months before the presidential elections, while trade unions say it only boosts the gains of private companies, especially multinational firms. The cut in social security contributions for employers has not received the approval of Romania’s foreign lenders, either. In fact, new talks with the international financial institutions started again in Brussels this week.

Romania supports Ukraine’s coming closer to the European Union

The foreign ministry in Bucharest has hailed the ratification by the European Parliament and Kiev’s Parliament of Ukraine’s association agreement with the European Union. The Romanian ministry says the vote in Strasbourg and Kiev confirms Ukraine’s progress on the path to Europe. Romania has also reiterated its firm support for the European future embraced freely by the Ukrainian people, hoping the agreement will by ratified by the other EU member states as soon as possible. In July, Romania was the first EU state to ratify the association agreements between the European Union and three ex-Soviet states, the Republic of Moldova, Georgia and Ukraine.

The regionalisation of Romania as seen by the Democratic Union of Ethnic Hungarians in Romania

A junior partner in the government, the Democratic Union of Ethnic Hungarians in Romania has made public a regionalisation project that also takes into account ethnic considerations. Neither the ruling parties, such as the Social Democratic Party, nor the opposition parties, such as the Liberal Democratic Party and the National Liberal Party, believe the project has any chances of succeeding. If implemented, however, the proposal of the Democratic Union of Ethnic Hungarians would make the Szeckler Country official. Currently covering three different counties in central Romania, this area is home to the largest number of ethnic Hungarians. The representatives of the three parties warn the proposal is not in line with the Constitution and recall that Romania is seen as an example in the European Union when it comes to respecting the rights of ethnic minorities. The leader of the Democratic Union of Ethnic Hungarians in Romania, Kelemen Hunor, says, however, that his party is not seeking separation.

Fresh flooding in Romania

Four counties in the west and south-west of Romania, namely Timis, Caras Severin, Gorj and Mehedinti, have been affected by flooding. The toll includes human casualties and material damage. The government has approved emergency aid for the people who have lost their homes.

A new edition of RadiRo

The second RadiRo Festival starts this week-end in Bucharest. Dedicated exclusively to radio orchestras, this is the only festival of its kind in Europe. Apart from the Romanian Radio Orchestra, it features symphonic radio orchestras from Finland, the Czech Republic, Germany and France. The event, which comes to an end on 27th September, is organised by Radio Romania.

20 September 2014
The Week in Review 8-12 September

Corina Cretu is the new European Commissioner for Regional Policy

Newly elected head of the EU’s executive Jean-Claude Junker, introduced his line-up of commissioners for 2014-2019. Romania holds the regional policy portfolio in the person of MEP Corina Cretu. Her office has a budget of 350 billion Euros, focusing on economic growth and job creation, which Jean-Claude Junker announced as policy priorities during his term. He said that the new commission has an extraordinary opportunity and an obligation to draw a new beginning for Europe, to rectify a difficult geopolitical situation, and to fix the economy of the European Union. He added that he wished to offer jobs and provide economic growth. Prime Minister Victor Ponta said that taking over management of regional policies is a success for Romania.

New sanctions against Russia

President Barack Obama said that the US stands alongside the EU in imposing tougher sanctions against Russia after is meddling in Ukraine, sanctions aimed against the defense sector, finances and energy. Obama said that the new sanctions will further isolate Moscow and will harm Russia’s economy. Starting on September 12, the EU has implemented new sanctions against Russia. They restrict access to the capital market for Russian oil and defense companies. In retaliation, Moscow has announced sanctions of its own. Recently, PM Dmitri Medvedev said that Russia will answer the new sanctions asymmetrically, including the possible restriction of western flights over its airspace. Other countermeasures may include restricting car and light industry imports.

New legislation with social impact

The Draft law slashing the social insurance contributions by employers passed this week in the lower chamber of Parliament. Finance Minister Ioana Petrescu said there were resources to compensate the losses incurred by the budget in this way, for both this year and the next. In July, Traian Basescu announced he was in favor of this measure, but sent the bill back to Parliament for reconsideration, since he doubted it was sustainable. Another bill passed, providing amnesty for mothers, pensioners and state employees who got undue amounts of money by clerical error. The Ministry of Labor estimates we are talking about around 20,000 mothers, 50,000 pensioners and 25,000 state employees, and the law will start being enforced on the first day of 2015. The amounts will be returned in equal installments over 5 years. Even though the opposition described the measure as an election maneuver, it voted in favor of the bill.

The evolution of the Romanian economy

Romania’s economic performance proves that it is a spearhead in the European economic recovery, being better than expected. According to a risk study by Coface, the GDP grew by 3.5% in 2013, with prospects for still growing in 2014, significant contributions came from the farming sector and from the industrial sector, especially in car manufacturing, which dominated by its exports. According to the study, the real GDP growth in Romania exceeded expectations, growing at its highest by 5.1% in the last quarter. The main factor for growth last year were exports, which registered a strong growth of 13.5%, especially in terms of farming products and automobiles. At the same time, in 2013 Romanian agriculture made products worth 17 billion Euros, making up almost 5% of the EU agricultural production, according to Coface analysts. The expectations for farming output in 2014 are uncertain, but the most realistic scenario is that it will be smaller than in 2013. Exports will continue to be driven by the demand for new cars, which would have a significant contribution to the yield in Romanian industry. Domestic demand also looks like it is improving, with growth in the appliance sector, which is still cramped by a low volume of personal loans.

Possible dismissal of President Traian Basescu

The president of the Romanian Senate, Calin Popescu Tariceanu, has initiated impeachment procedures against President Traian Basescu. He introduced a proposal in Parliament, and proposed a timeline for it. On 23 September Parliament is to vote on the impeachment, while the referendum that would actually suspend the president would be set for 2 November, coinciding with the first round of presidential elections. According to Calin Popescu Tariceanu, the president overstepped the bounds of constitutionality in his open political partisanship manifested during an election campaign.

13 September 2014
The Week in Review August 31-September 6

Major decisions for Romania at the NATO summit in Wales

Romania has reached all the objectives set for the NATO summit, said on Friday Romanian President Traian Basescu at the end of the meeting held in New Port Wales. He mentioned the adoption of a rapid action plan, for the establishment of a rapid reaction force on the territories on the countries that make the east border of the Alliance, including Romania. He also said that Romania offered to host a NATO command unit on its soil. To Romania it is extremely important that the Black Sea was recognized as particularly important for the Euro-Atlantic security following the latest events in Ukraine, the President also said. Basescu also announced NATO countries’ commitment to increase national defence budgets to 2% of the GDP. Romania also offered to be a framework nation for a mutual fund for a cyber security program for Ukraine.

Bucharest approves presence of NATO fighter aircraft in Romania

Romania has approved the presence of NATO fighter aircraft on Romanian territory and airspace. The announcement was made on Wednesday by president Traian Basescu, after a meeting of the country’s Supreme Defence Council, against the backdrop of the worsening crisis in neighbouring Ukraine. Apart from airplanes, 200 Allied troops, pilots and maintenance personnel may also be stationed in Romania.

PM Victor Ponta makes official trips to China

The Romanian prime minister Victor Ponta made an official visit to China at the invitation of his counterpart Li Keqiang, as a follow-up to the latter’s visit to Bucharest in November 2013 to attend the China-Central and Eastern Europe Forum. The two officials described the bilateral political relations as exceptional and agreed to strengthen economic ties through joint projects in agriculture, energy and infrastructure. According to Ponta, priority will be given to four investment projects in the energy sector: the 3rd and 4th reactors of the Cernavoda Nuclear Power Plant, the projects in Tarnita and Rovinari, and the Hunedoara Power Complex. These are strategic projects, which ensure Romania’s energy independence and its capacity to export energy to other countries in the region, such as the Republic of Moldova. The Romanian prime minister also took part in an economic meeting attended by representatives of the main Chinese companies and banks that have businesses in Romania or intend to invest here. The Romanian official was received by the Chinese President Xi Jinping, who appreciated the consistency of Romania’s position throughout the 65 years of diplomatic relations between the two countries.

Romania up 17 places in world economic competitiveness ranking

Romania ranks 59th in the world in terms of economic competitiveness, according to an annual standing released by the World Economic Forum. Compared to last year, Romania went up 17 places. In the regional standing, Romania comes after Turkey and Bulgaria, but ahead of Hungary and Croatia. The most competitive economies in the world are Switzerland, Singapore and the USA. The 2014-2015 Global Competitiveness Report was based on opinion expressed by 15,000 managers of companies from over 140 countries. On the other hand, according to the National Statistics Institute, industry had the greatest contribution to the growth of the Romanian economy in the first half of this year, whereas agriculture and constructions had negative performances.

Romanian Social Democrat MEP Corina Cretu is on the list of the future European Commissioners

Romanian Social-Democrat MEP Corina Cretu is on the list of the future members of the European Commission, made public by the next Commission President Jean Claude Junker on Friday. Mrs. Cretu, aged 47, has been a member of the EP since 2007 and is currently vice-president of the Euroepan Parliament. The membership of the future European Commision must also be approved by the EU Council and then it will be published in the EU’s official jounral. Portfolios will be announced next week.

National football team up against Greece in Euro 2016 preliminaries

Romania’s national football team will play against Greece in Piraeus on Sunday, in its first qualifying game for the 2016 European Championship. Last autumn, Greece qualified into the World Cup final tournament in Brazil at the expense of Romania, after a win at home and a draw in Bucharest. The Euro qualifying group F also includes Hungary, Finland, Northern Ireland and the Faeroe Islands. Romania last qualified for a European Championship final tournament in 2008.

6 September 2014