Radio România Internațional

Category: The Week in Review

  • The Week in Review, 24-30 August

    The Week in Review, 24-30 August

    The inauguration of the Iasi-Ungheni pipeline


    On August 27 Prime Minister Victor Ponta and his Moldovan counterpart Iurie Leanca, inaugurated the Iasi-Ungheni pipeline, a project that reduces the Republic of Moldova’s dependency on Russian gas imports. This inauguration coincided with the Republic of Moldova’s Independence Day and the message sent by Romania is of complete support for Chisinau’s European aspirations.



    Prime Minister Victor Ponta: “This pipeline ensures, for the first time in Moldavian history, the possibility to receive gas not only from the East, but also from Romania. Together we become more and more a part of Europe. At Chisinau and at Ungheni we wanted to send this exact message, that we stand together and we can face anything together.”



    On the same day the ambulance service SMURD was also inaugurated in the Republic of Moldova, and Romania donated emergency response vehicles. Prime Minister Iurie Leanca spoke about the economic benefits that these two projects have for the country, and about reaffirming the Republic of Moldova as a European state.



    Iurie Leanca: “These projects are not designed to offend anyone, they represent my country’s interests, whether we are talking about home users, schools, hospitals and other economic operators. ”



    Romania’s stance on the situation in Ukraine


    Romania condemns Russia’s support of the separatists in Eastern Ukraine and reaffirms its support of Ukraine’s sovereignty and territorial integrity. The declaration made by President Traian Basescu came in response to the escalation of clashes in Ukraine. The Romanian president said that Bucharest did not feel that Ukraine had been invaded, but that Russia had increased its support for the separatists by transferring state-of-the-art military equipment and by infiltrating combat specialists in that country. Traian Basescu and the EU High Representative for Foreign Affairs and Security Policy Catherine Ashton have labeled the security context in Eastern Ukraine as worrying. The European Office was a guest at the Annual Reunion of Romanian Diplomacy held in Bucharest between August 27 and 29. The main point on the agenda for talks was the crisis in Ukraine.



    The Annual Meeting of Romanian Diplomacy


    Attending the Annual Meeting of Romanian Diplomacy held in Bucharest, Romania’s Foreign Minister Titus Corlatean said that despite the worrying developments in Ukraine, Romania faces no security risk at present.



    Titus Corlatean: “We have all the reasons to remain resolute in our stance regarding the regime of sanctions agreed upon by the EU and NATO. This is non-negotiable. We cannot stand by and watch international law principles and fundamental rights being violated and re-written”.



    The developments in Ukraine have also fuelled concern in neighbouring Moldova. Attending the meeting of Romanian diplomacy, Moldovan Foreign Minister Natalia Gherman, together with her Georgian counterpart, said that any escalation of the current context in Ukraine might negatively impact the region. In turn, Prime Minister Victor Ponta said that at the forthcoming NATO summit in Wales Romania would argue in favour of consolidating NATO’s eastern borders, strengthening the strategic partnership with Turkey and Poland and increasing NATO’s military presence in Ukraine. The Prime Minister has called on Romanian diplomats to outline Romania’s standpoint very clearly as regards the most important topics, and at the same time to promote the legitimate interests of Romania, the EU and their strategic partners.



    Decision on political party switching


    Local county council presidents, mayors, local advisors and county advisors will be able to switch parties within 45 days of their being elected under an emergency Government ordinance. According to the document, local elected officials will be able to do that without losing their current mandate. Prime Minister Victor Ponta said the measure would unclog the activity of local authorities. In response, the opposition has harshly criticized the emergency ordinance, labeling it as a blatant violation of democracy and claiming that it is merely an election ruse at ensuring wider support for the Social Democrat candidate Victor Ponta in the upcoming presidential elections of November.



    Two football teams will represent Romania in the Europa League this season


    Romanian Cup winners Astra Giurgiu qualified to the Europa League playoffs on Thursday, despite losing 1-nil at home to Olympique Lyonnais in the second leg of the Europa League playoffs. In the first leg Astra grabbed a surprising 2-1 away win, and thus qualified with 2-all on aggregate. The other Romanian team playing in the playoffs, Petrolul Ploiesti, was knocked out after losing 2-1 to Dinamo Zagreb away from home. In the first leg Petrolul had lost 3-1 on home turf. Joining Astra in Europa League this season will be Romania champions Steaua Bucharest, who lost on Wednesday to Ludogorets Razgrad of Bulgaria in the Champions League playoffs.


  • The Week in Review 3-9 August

    The Week in Review 3-9 August

    Tycoon Dan Voiculescu behind bars


    One of the most influential characters in post-communist Romania, businessman Dan Voiculescu, the founder of the Conservative Party in the ruling coalition, was sentenced to 10 years in prison for money laundering. Anti-corruption prosecutors proved that Voiculescu used one of his companies to buy from the Foodstuff Research Institute a plot in a real estate paradise, for a much lower price. The state lost, according to estimates, over 60 million euros. Throughout the 6-year trial, Voiculescu, a proven collaborator of the communist political police, the Securitate, pleaded not guilty.



    Top-level officials disagree on political issues


    The President of Romania, Traian Basescu, has rejected the nominations made by the Social Democratic PM Victor Ponta for the culture and budget ministers. The head of state described as inappropriate the two nominations, Rozalia Biro, from the Democratic Union of Ethnic Hungarians in Romania, for culture minister, and Claudiu Manda, from the Social Democratic Party, for budget minister. Under a Constitutional Court ruling, the President has the right to reject the Prime Minister’s nominations once, and new nominations have to be made in this case.



    In another development, President Basescu urged the PM to reconsider his decision to denounce the so-called co-habitation agreement the two signed in 2012, in a delicate political context. The PM argues that the agreement, primarily intended to ensure political stability and which also included a code of conduct, was signed by the President in bad faith. In 2012, PM Ponta was the co-leader of the ruling Social-Liberal alliance, which took several steps to remove the President from office, including a referendum on his impeachment.



    The European Commission approves Partnership Agreement with Romania


    The European Commission has validated the 2014-2020 Partnership Agreement with Romania, in which Bucharest has outlined the planned spending of the funds earmarked for the country in the current budget cycle. The validation proves that the document sent by Bucharest meets the EC requirements, the Romanian minister for European funds, Eugen Teodorovici said.



    Earlier this year, the European Commission harshly criticised the first draft of the document. From the current EU budget, Romania has available some 43 billion euros. Bucharest is under tremendous pressure, according to analysts, given that in the previous budget framework, for 2007-2013, Romania had the smallest EU fund absorption rate, namely 37%.



    The National Bank of Romania lowers key interest and inflation forecast


    The National Bank of Romania has lowered the monetary policy interest, from 3.5% to 3.25% per year. It is a new signal for cheaper lending, but not for reducing interests paid for deposits, the central bank governor, Mugur Isarescu, said.



    Also this week, the National Bank adjusted its inflation forecast, to 2.2% for the end of this year and 3% for late 2015. The lower inflation is not a reason for concern as regards the economic growth, stimulating employment or productivity, Governor Isarescu added. The National Bank official also mentioned that low inflation is one of the five convergence criteria for accession to the eurozone, a goal Romania seeks to achieve in 2019.



    Romanian entities come under cyber attacks


    The Romanian Intelligence Service announces that several entities in the country are targeted by large-scale cyber attacks. According to the Service, the targets include public institutions, such as ministries and governmental agencies, private companies and even individuals. The attacks come from state actors, cyber crime groups and extremist terrorist groups, the Romanian Intelligence Service explained.



    Three Romanian football teams qualify in European competitions


    Three of the four Romanian football teams that played in the third preliminary round of the European cups have qualified in the playoffs preceding the group stage. Champions Steaua Bucharest defeated FK Aktobe from Kazakhstan 2-1 on home turf to moved on to the playoffs.



    In the Europa League, Astra Giurgiu and Petrolul Ploiesti won their matches against two Czech teams, Slovan Liberec and Viktoria Plzen, respectively. In the first leg, Astra had won 3-nil, and Petrolul only managed a 1-all draw. The fourth Romanian participant in the European football competitions, CFR Cluj, lost at home, 0-2, to Dinamo Minsk, which had also won the home match in Belarus.

  • The Week in Review, July 28 – August 2

    The Week in Review, July 28 – August 2

    Southern and southwestern Romania hit hard by flooding


    The torrential rain that affected southern and southwestern Romania in the past few days caused a lot of damage and made victims among the locals. Over two thousand houses and households, in two hundred towns and villages have been affected and thousands of hectares of farmland have been swept by waters. Over one thousand people have been evacuated. Road traffic has been disrupted, several segments of national, county and village roads have been completely destroyed and tens of bridges have disappeared, swept by the waters. Strong winds have downed electricity poles and power lines causing outages. Fire fighters, intervention teams and gendarmes have been deployed to the flood-stricken regions, to rescue people and evacuate water from households. Local and central authorities are on the alert and measures have been taken to warn people in the areas exposed to flooding.



    First budget rectification, approved


    The first adjustment of the 2015 budget is positive, which means that no cuts will be operated. The ministries of health, education, defense, economy, transport and labor have been allotted larger amounts for 2015. Also, the Standing Electoral Authority will get extra funds for the staging of November’s presidential elections. The Fiscal Council says that this budget rectification is in fact transferring the financial burden on the next years, because it overestimates budget revenues to be collected by yearend. The Council has also specified that the budget rectification does not comprise the impact of decreasing employers’ social security contribution by 5%, a measure that the Government plans to enforce as of October 1st.



    Victor Ponta, officially the Social Democrats’ candidate for the presidential seat


    Romania’s Social Democrat prime minister has made public his intention to run for president in the November elections, saying he will officially ask for his party’s support at a National Council meeting next week. Ponta also relies on the Conservative Party and the National Union for the Progress of Romania, two small parties that are part of the ruling coalition. The right wing has also started its preparations for the presidential elections. Klaus Iohannis, the mayor of Sibiu and the leader of the centre-right National Liberal Party, the main opposition party in this country, was nominated to run for president on behalf of his party. Kelemen Hunor, the leader of the Democratic Union of Ethnic Hungarians in Romania, in the government, and Cristian Diaconescu, from the pro-presidential, centre-right People’s Movement Party, will also run for president.



    Bucharest’s reaction to the protests of Romanian ethnics in Cernauti


    The Romanian Foreign Ministry has voiced concern at the situation that generated protests by ethnic Romanians in west Ukraine, who expressed their discontent with Kiev’s decision to call a new partial military mobilization. Hundreds of Romanian youth were called to arms, and their parents fear that they will be sent to fight against the pro-Russian separatists in the east of the country. The locals blocked the roads and threatened they would not leave until the regional authorities cancel the orders issued after the Parliament of Ukraine approved a partial mobilization last week.



    Dacian Ciolos, Romania’s proposal for a new mandate of European commissioner for agriculture or for the regional development portfolio


    Romania’s Government has proposed Dacian Ciolos for a new mandate of European commissioner for agriculture. President Traian Basescu supports the proposal. Aged 45, Dacian Ciolos has been a European Commissioner for Agriculture and Rural Development since February 2010. Ciolos has been the initiator of the reform of the Common Agricultural Policy. In Romania, he was an agriculture minister for two years, in 2007 and 2008.



    Four Romanian football teams in the third preliminary tour of the Europa League and the Champions’ League



    Three Romanian football teams on Thursday played in the first leg of the third preliminary tour of the Europa League. The best result was obtained by Astra Giurgiu, which defeated Czech side Slovan Liberec at home 3-0. Petrolul Ploiesti also faced a Czech team. Coach Lucescu’s team finished with a 1-all tie at home against Victoria Plzen. The other Romanian team fighting for a place in the Europa League play-offs, CFR Cluj, played on foreign turf against Dinamo Minsk of Belarus, losing nil to 1. On Wednesday, in the third preliminary tour of the Champions League, Steaua tied 2-all in an away game in Kazakhstan against local team Aktobe.

  • The Week in Review, 20-27 July

    The Week in Review, 20-27 July

    Candidacies for the presidential elections


    Prime Minister Victor Ponta, the leader of the main ruling party, the left-wing Social-Democratic Party, announced on Thursday he will be running for president in the upcoming elections of November. Victor Ponta announced that in next week’s meeting of the National Council he would officially seek his party’s support. Ponta added that the Conservative Party and the National Union for the Progress of Romania, the Social Democrats’ allies in the ruling coalition, have also rallied to support his candidacy. Also this week Sibiu Mayor Klaus Iohannis, the leader of the National Liberal Party in opposition, has been designated as the party’s candidate in the presidential elections. The National Liberal Party has decided to merge with the Liberal-Democratic Party, also in the center-right opposition, and to designate a joint candidate in the elections. Klaus Iohannis will have to compete for the nomination with the Liberal-Democrat candidate, Catalin Predoiu. Kelemen Hunor will be running for the Democratic Union of Ethnic Hungarians in Romania, while Cristian Diaconescu will be the candidate of the People’s Movement Party.



    Economic measures


    A delegation of the International Monetary Fund was in Bucharest this week to discuss the first budget adjustment in 2014. The Romanian authorities and the International Monetary Fund agreed on a budget deficit level of 2.2% of the GDP. According to official data, although budget returns increased in the first five months of the year, they are lower than expected when the budget was first drafted. Moreover, the government must also address the drop in budget returns as a result of a 5% cut in the amount of social security contribution paid by employers, planned for October. President Traian Basescu sent the bill in question back to Parliament for reexamination saying he did not have a problem with the bill as such, but that his objections had to do with how the resulting pension fund deficit would be financed. According to the prime minister, the measure, which costs the state 4.8 billion lei per year, may be covered by the additional returns resulting from the social contributions paid for the newly created jobs, additional VAT returns following new potential investments, the recovery of debts from insolvent companies and lower tax evasion.



    The situation in Ukraine


    Romania wants the NATO military resources not to be reduced on the Alliance’s eastern flank. The statement has been made by Romanian President Traian Basescu, who has described the situation in northern Ukraine as a hybrid war. According to President Basescu, responsibility for the latest developments in Ukraine lies with the separatists, but also with Moscow, which has been supporting them. Traian Basescu has taken part this week in Warsaw in a meeting of heads of NATO states in central and eastern Europe, which focused on the regional situation, with an emphasis on the crisis in Ukraine and preparations for the NATO summit in the UK in September. The crisis in Ukraine topped the meeting’s agenda. The EU has added 15 Russian and Ukrainian individuals and 18 entities to its sanctions list, for their role in the Ukrainian crisis. In another development, the Netherlands has started the process of identifying the bodies retrieved after the plane crash in Ukraine. All 298 people on board, including 193 Dutch citizens, lost their lives. Pro-Russian separatists are considered to be guilty of downing the plane, by using a missile supplied by Russia, while Moscow accuses the Ukrainian army for the crash.



    Romanians repatriated from Gaza


    As many as 19 Romanian citizens and their families have been repatriated this week from Gaza, following an escalation of violence in the region. Last week, another 84 Romanian citizens were repatriated together with their families. The conflict in Gaza, which started on July 8th, has already caused the death of hundreds of Palestinians, most of them civilians, and tens of Israelis. Major European and American airlines cancelled their flights to Tel Aviv for security reasons. Other air companies, including the Romanian Tarom, have resumed flights after a temporary halt.



    Russia imposes embargo on Moldovan products


    Romanian Prime Minister Victor Ponta and Agriculture Minister Daniel Constantin reiterated their commitment to supporting the Republic of Moldova – a former Romanian province with a mostly Romanian-speaking population – in order to help it face the economic sanctions imposed by the Russian Federation. Russia has banned fruit and vegetable imports from Moldova, after previously doing so with meat and wine. The Russian embargo follows Moldova’s ratification, in June, of the association and free trade agreements with the European Union. The decision, although anticipated by analysts, is nevertheless inexplicable according to Moldova’s PM Iurie Leanca. Russia motivated its decision by saying the Moldovan products are infested. The exports banned by Russia will most likely reach the EU market, and also Arab and Belarusian markets.

  • The Week in Review, 13-19 July

    The Week in Review, 13-19 July


    The European Commission has a new president


    The European People’s Party candidate Jean-Claude Juncker was on Tuesday elected as the new president of the European Commission. Juncker was sworn in in Strasbourg after presenting his political programme before the European Parliament. The main priorities of his term in office includes economic growth and making more jobs available, strengthening the economic and monetary Union and the single market, revitalising the industrial sector, continuing negotiations with the United States on the transatlantic partnership, creating a EU policy on migration and paying special heed to the EU’s external relations.



    The next step on Juncker’s agenda is to decide on the new team of commissioners. The leaders of the European Union on Wednesday evening failed to appoint new commissioners in key fields, so a new meeting was set for the end of August. Romania wants to hang on to its agriculture portfolio in the new Commission, and preferably keep Commissioner Dacian Ciolos in his current position.



    The EU and the US impose fresh sanctions on Russia


    EU leaders meeting in Brussels decided to put on hold all financial operations carried out by the European Investment Bank and the European Bank for Reconstruction and Development in Russia. Accused of fuelling the armed conflict in eastern Ukraine, Moscow has been urged to use its influence with the pro-Russian separatist groups to put an end to the movement of arms and militants across the border.



    The US has also announced the toughest sanctions on Russia yet, because, as president Barack Obama said, “Russia has failed to take any of the steps the Obama administration was called for to de-escalte the situation in Ukraine”. Sanctions are targeting two important banks in Russia, including that of the natural gas giant Gazprom, as well as two other energy companies, whose access to the US capital market has been restricted. Other sanctions will be imposed on several firearms manufacturers, including the company manufacturing the famous AK-47 known as Kalashnikov.



    Ukraine and the Gaza Strip — hotbeds of conflict


    The situation in eastern Ukraine became even more strained on Thursday when a Malaysia Airlines jet crashed on Ukrainian territory. All the 298 people were board were killed. The aircraft, which was flying from Amsterdam to Kuala Lumpur, crashed in the Dotetsk region, which is controlled by the pro-Russian separatists and lies only a few tens of km from the border with Russia.



    Romania’s president Traian Basescu has called for an immediate investigation into the cause of the accident and for European Union experts to take part in the inquiries alongside the Ukrainian authorities.



    The Romanian foreign ministry has also created a crisis group to monitor the Gaza Strip conflict between the Israeli army and local Islamist groups. After the evacuation, early last week, of 84 Romanian nationals and their families living in the region, two mobile consular groups were again deployed on the ground, in Amman and Tel Aviv, to provide consular assistance to the Romanians who are still in the area.



    The president and the prime minister disagree over the reduction of social security contributions


    A proposed 5% cut in social security contributions paid by employers is beneficial to the business environment unless it attracts new tax and duty rises, said the president of the Foreign Investors Council, Steven van Groningen after talks with president Traian Basescu.



    On Monday, the president also held consultations with prime minister Victor Ponta, having earlier said he would oppose the cut in social security contributions unless the government explained how it would cover the reduction and what steps it was considering to prevent upsetting the budget balance. In Traian Basescu’s opinion, the measure would lead to an increase in taxes or the reduction of investments.



    Prime minister Ponta argues, however, that this is the best time to take this measure owing to the country’s economic growth and higher budget returns.



    Romanian right-wing parties join forces


    Talks ended in Bucharest this week between the country’s biggest centre-right parties, the National Liberal Party and the Liberal Democratic Party, as their leaders agreed on the final details of a merger. The aim is to create a bigger party called the National Liberal Party able to compete against the Social Democratic Party, the winner of the European Parliament elections in May. The short-term goal of the new structure is to win the presidential elections in November and its candidate will be announced at the beginning of August.



    In another development, the Permanent Council of the Democratic Union of Ethnic Hungarians in Romania, a junior partner in the government, has nominated the party leader Kelemen Hunor as presidential candidate.

  • The Week in Review 7 – 13 July

    The Week in Review 7 – 13 July

    The summer session of the Romanian Baccalaureate comes to an end




    Some 60% of 12th-grade high-school undergrads in Romania have passed the summer session of the Romanian Baccalaureate exam, which is by 3% more than the figure of last year. This year as well the exam was marred by certain irregularities. A school inspector in Arad was accused for taking bribe to help certain students pass the exam, and was subsequently placed on temporary 30-day house arrest. Certain students caught cheating were eliminated and handed out a ban for taking the exam for another two sessions. Although the Government claims education has been reporting important progress, president Traian Basescu disagrees. The President has called on the Ombudsman to call on the Constitutional Court to investigate the emergency ordinance providing for new measures in the field of education and scientific research. The head of state claims that law had a series of changes with a negative impact on both secondary and higher education.



    Businessman Dan Voiculescu to be investigated under judicial control in a blackmail case


    The founding president of the Conservative Party in the ruling coalition, businessman Dan Voiculescu, will remain in judicial arrest. The Bucharest Court of Law ruled against the appeal filed by Voiculescu who contested the decision of anti-corruption prosecutors in a case where he has been presented with charges of blackmail. Voiculescu allegedly threatened three businesspeople for launching an aggressive smear campaign against them unless they signed contracts with his influential media trust. Voiculescu has denied all charges, claiming he does not know any of the plaintiffs. Voiculescu has also been investigated since 2008 for the illegal privatization of the Institute for Food Research in Bucharest, which caused the state a prejudice of 60 million euros.



    Romania’s president Traian Basescu signed the laws on the ratification of Association Agreements with the EU signed by the Republic of Moldova, Ukraine and Georgia



    Romania’s president Traian Basescu has signed the laws to ratify the Association Agreements with the European Union signed by the Republic of Moldova, Ukraine and Georgia in June in Brussels. President Basescu says the singing of the agreements shows that no one can stop the evolution of a nation. The move will also benefit Moscow, Basescu argues, recalling that based on the Association Agreements with the EU the competitiveness and quality of products and services from the Republic of Moldova, Ukraine and Georgia will be brought in line with European standards. Last week, the Romanian Parliament completed the process of adopting the laws for the ratification of the Association Agreements, Romania thus becoming the first EU Member State to ratify them.



    Romanian Foreign Minister Titus Corlatean attends the Croatia Forum Conference in Dubrovnik


    Romanian Foreign Minister Titus Corlatean attended the Croatia Forum international conference in Dubrovnik, this year focusing on the European integration of states in the Western Balkans. Organized by the Government on Croatia, the event was structured alongside three discussion panels, focusing on the following topics: “The European Integration of the Western Balkans: Similarities and DisparitiesThe Future of the EU EnlargementPresent-day challenges to European values.” According to the Romanian Foreign Ministry, Titus Corlăţean had a keynote address dealing with the future of the European Union’s Enlargement policy. Attending the current edition will be European high-ranking officials, Foreign Ministers of EU Member States and countries subject to the EU’s Enlargement policy, alongside other guests from China, Japan, the United States and New Zealand.



    The social security contribution law breeds a new conflict between the President and the Prime Minister


    President Traian Basescu has announced we will not sign the law recently adopted by Parliament providing for a 5% decrease in social security contributions as of October 1. The president said this measure was taken at a time when budget revenues are below expectations, and that it may risk to affect the stability of an already deficient pension fund. In addition, the increase may also impact macroeconomic indicators agreed upon with the IMF. The president wants to have consultations with the Government on this issues, but Prime Minister Victor Ponta says the time for talking is over, since the law already passed Parliament. Hailed by the business environment, the reduction of social security contributions for employers received a negative recommendation from the Fiscal Council, which plays a consultative role in elaborating policies in this field.


    Romania’s population to drop in the coming years


    Romania’s population will continue to drop in the following years, down to an estimated 12 million in 2060, read the latest demographic data made public by the National Institute of Statistics on World Population Day, an event marked every year on July 11. In 2013, the number of young people below 14 years dropped by 50,000, while the number of people aged above 65 increased by 40,000. Data also show that nearly 54% of the overall population lived in urban areas at the beginning of the year. Women currently account for 51% of Romania’s population. The average lifespan for women stands at 78 years, higher than the estimated life expectancy rate at birth, standing at 74 and a half years.


  • The Week in Review, June 30 – July 5

    The Week in Review, June 30 – July 5

    Romania ratifies the association agreement between the Republic of Moldova and the EU


    Romania continues to make every effort to help the Republic of Moldova in its attempt to ultimately join the EU. The Romanian Parliament was the first to ratify the association agreement signed by the ex-Soviet republic with the EU. Last week in Brussels, Moldova, Georgia and Ukraine all signed such agreements, and the two chambers of the Parliament in Bucharest, meeting separately in special sessions, voted overwhelmingly in favor of the documents. Foreign Minister Titus Corlatean saluted the prompt ratification, saying it demonstrates the solid and consistent commitment that Romania holds towards the European route taken by the three countries. He also enumerated some of the economic benefits that Moldova will have as a result, considering that the latter is the poorest European country:



    Titus Corlatean: “The EC estimates that over the next few years Moldova’s GDP will be growing by an average of 5.4% annually. This is a major figure of growth for a country whose economy is modest. There will be a basis for a substantial increase in Moldovan exports on the EU market, a 16% growth, and Moldovan purchasing power will grow as well.”


    Liberal Democrat leader Vasile Blaga spoke about this rare moment when the power and opposition agreed wholeheartedly on a given topic: “The Romanian political class was on the same side of the barricade every time, irrespective of what sets us apart, when it came to Romania’s interests and to the interests of our brothers beyond the Prut.”


    The association agreement was ratified by the Parliament in Chisinau in spite of opposition from pro-Russians.



    4th of July celebrations in Bucharest


    On July 4th in Bucharest, PM Victor Ponta said that the strategic partnership with the US was very important for Romania. He spoke at the reception offered by the American Embassy in Romania’s capital. He added that the US administration sent Romania a message on how important they found the rule of law and the fight against corruption. The latter is a topic that finds its way every time in the public speeches of American officials visiting Romania lately. It was also the subject of the speech held by the US charge d’affaires to Romania, Duane Butcher. He said that the country has made great strides in the fight against corruption, in providing independence for key institutions, and in creating a society of citizens equal under the law .



    Electrica goes public


    Starting Friday, shares in Electrica, Romanias most important power distribution company, are traded on the Bucharest and London stock exchanges. 51% of the shares have been listed, and the Romanian state holds on to 49% of them. The state so far has obtained around 450 million Euros, which it will use for future investments. This is the first time when a state company was privatized through a capital market. The Bucharest government, speaking through Minister Delegate for Energy Razvan Nicolescu, said that the same model will be applied for future privatization of other large scale state companies, such as the Oltenia Energy Complex or Hidroelectrica. At the same time, another large state company, CFR Marfa, the freight division of the Romanian Railway Company, confirmed it would downsize by 2,500 employees. The restructuring process, according to the management, is a must for increasing the company’s efficiency.



    Parliament green lights a reduction in social contributions


    The Romanian government’s plan to slash social contributions by 5% for employers has been passed by the Chamber of Deputies unanimously. According to the government, this cut, effective as of 1 October, will stimulate the business environment, and will create new jobs. Romania’s international lenders, the IMF, EC and WB, as well as large trade union federations, did not agree with this measure.



    Halep plays in the semi-finals in Wimbledon


    Romania’s best female tennis player, Simona Halep, now ranking 3rd in the WTA standings, reached the semi-finals in Wimbledon, the year’s third Grand Slam. She was defeated 7-6, 6-2 in her last game by Eugenie Bouchard of Canada after sustaining an injury during play. If she had reached the finals, Halep would have ranked second in the world. In the previous Grand Slam, in Roland Garros, Halep had reached the finals, only to be defeated by Russian player Maria Sharapova.

  • The Week in Review, 22-28 June

    The Week in Review, 22-28 June

    Top level scandal in Romania


    On Wednesday, the Romanian Parliament adopted a political statement calling on president Traian Basescu to resign, against the background of the corruption and influence peddling scandal involving his brother Mircea Basescu. Social Democrat senator Gabriela Firea presented the statement to the public:



    “Worried about the huge impact that the scandal involving the president’s family has on the very credibility of the Romanian state, the Romanian Parliament makes the following political statement: the President of Romania, Mr. Traian Basescu, is no longer entitled to ensure the prestige, independence and legitimacy of the presidential office, that is why he must immediately resign from the office of President.”



    Supporting the idea of the president’s resignation were the MPs representing the left wing, namely the Social Democratic Party, the Conservative Party and the National Union for the Progress of Romania, and also the Dan Diaconescu People’s Party and the Liberals, in opposition. The Liberal Democratic Party and the pro-presidential opposition did not participate in the voting. The declaration is not legally binding and therefore the president is not obligated to resign. Actually, Traian Basescu had previously announced he would not comply with the request, as he did not intervene in the case and was not responsible for his brother’s actions.




    The Republic of Moldova, Georgia and Ukraine are closer to the EU


    Romania’s President Traian Basescu turned the support for Moldova’s European integration efforts into a priority of his term in office. Alongside Georgia and Ukraine, the Republic of Moldova, a former Soviet country with a predominantly Romanian-speaking population, signed in Brussels at the weekend the Association and Comprehensive Free Trade Agreement with the EU. Russia regards the document as a ploy for the three countries to come out of its sphere of influence. In Brussels, on the other hand, the event has been termed as historic.



    The Association and Comprehensive Free Trade Agreement will favour a better European integration of those countries, both politically and economically. It will also create a cooperation framework in such fields as trade, security policy and culture. The agreement is for something and not against somebody, said the acting president of the European Commission Jose Manuel Barroso, also stating that the EC has solemnly committed to standing by the Republic of Moldova, Georgia and Ukraine in their efforts to turn into modern, stable and prosperous democracies.



    Romania has a new transport minister


    Starting this week, the Romanian Government has a new Transport Minister, namely Ioan Rus. Among the measures that the new minister has placed on top of his working agenda, is curbing the improper use of material and human resources. Ioan Rus:



    “We will start by cutting losses. By turning more competitive, we will be able to reach the proper level of performance and thus compete with the European rail, road, air and sea transport services.”



    Ioan Rus has replaced Dan Sova, who has resigned. According to Prime Minister Victor Ponta, he will also be the spokesperson for the Social Democratic Party.



    Fresh economic measures


    Good news for the Romanian business sector. This week the Romanian Senate has adopted a draft law regarding the reduction of the employers’ contribution to the social security fund by 5%. If the document is endorsed by the Chamber of Deputies as well, it will be put up for plenary voting in early July, to then come into force on October 1st. According to the Government, this measure will help employers secure funds that can be used to create jobs, will increase the number of contributors to the fund and will stimulate the business environment. The Romanian Government has also passed an ordinance allowing for the reduction by half of payments to banks for those who have problems reimbursing their loans. Prime Minister Victor Ponta says the state will bear this financial burden.



    “We will cover this by deducting from the tax the additional interest and this new support for those who have debts to banks. It will help us socially, and also economically, because there will be more money left in the economy, and this is extremely important.”



    Also, the government decided to restore the pensions and salaries that were cut when the economic crisis started, as well as to increase the minimum wage to around 205 euros.



    Electricity supplier Electrica is listed on the Stock Market


    After a string of failed privatisations, the Romanian authorities are now happy to have successfully listed on the stock market 51% of the shares in Electrica, the main distributor of electricity in Romania. The demand was actually twice as big as the offer. The government thus hopes to get some 460 million Euros, to be used for the investments that the company needs in the coming years. The privatisation of Electrica is the first one achieved through the Stock Market.



    Heavy rainfall again wreaks havoc in Romania


    The second half of this week has again seen a code yellow warning issued by meteorologists and hydrologists. And indeed, the country has been affected by heavy rain, strong winds and high risk of flooding in south, southwest and southeast. Hail has broken windows and damaged the roofs of hundreds of households, and the strong gusts of wind have felled down trees, which have in turn damaged cars. The basements of many blocks of flats have been flooded, gardens and green houses destroyed, and even rail transportation has been hampered in some regions.

  • The Week in Review June 16-22, 2014

    The Week in Review June 16-22, 2014

    The draft law on slashing 5% off of employers’ social security contributions was passed by the government in Bucharest.



    The draft law on slashing 5% off of employers’ social security contributions was passed by the government in Bucharest. It is still to be passed by Parliament and endorsed by the head of state. PM Victor Ponta said that all the macroeconomic targets convened with foreign lenders, the IMF, the European Commission and the World Bank, which did not agree with this reduction, would be met. PM Ponta claims that there are enough funds to apply the measure, and said that the impact on the budget would be of around 190 million Euro in the first quarter of the year. The Cartel ALFA trade union confederation believes that the measure is meant to boost net profits for multinational corporations, at the same time reducing contributions to the pension fund and effectively reducing the social security budget. The PM, however, said that the budget would not be affected, and that the losses would be covered by debts recuperated from insolvent companies. The head of the Fiscal Council, Ionut Dumitru, said otherwise, explaining that the state could not possibly rely on such a measure, because the debt recovery rate is 30% on the average, and that this money only gets recovered one time.




    The Romanian state listed on the stock exchange market 51% of the stake of the national electricity provider Electrica



    The Romanian state listed on the stock exchange market 51% of the stake of Electrica, the national electricity provider, an endeavor wrapping up on June 25. This is the most expensive IPO so far. The state plans to get at least 435 million Euros, as 85% of the package is on offer for institutional investors, and 15% to individual investors. The price per share is between 2.5 and 3 Euros. In an attempt to boost sales, the state offers discounts. Investors buying between 1,000 and 20,000 shares in the power company would pay 5% less.




    The National Integrity Agency filed a request with the European Parliament to reject Romanian MEP Mircea Diaconu’s appointment, for reasons of incompatibility.



    The National Integrity Agency filed a request with the European Parliament to reject Romanian MEP Mircea Diaconu’s appointment, for reasons of incompatibility. The same institution filed a motion with the Bucharest Court of Appeals to annul Diaconu’s appointment, canceling the decision issued by the Central Election Bureau. Diaconu won a seat in the European Parliament as an independent. The National Integrity Agency claims that the Bureau rejected his candidacy, but that courts allowed him to run without issuing a verdict on the validity of his term in the European Parliament. The National Integrity Agency adds that the High Court of Cassation and Justice declared Diaconu incompatible with the position, so that he is unable to take up a public position.





    The Romanian Foreign Ministry asked the French authorities to clarify as soon as possible the circumstances under which a young Romanian of Rroma ethnicity was assaulted on the outskirts of Paris.



    The Romanian Foreign Ministry asked the French authorities to clarify as soon as possible the circumstances under which a young Romanian of Rroma ethnicity was assaulted on the outskirts of Paris. Darius, a 16 year-old, was abducted last Friday from a makeshift camp near Paris by 12 people who battered him on suspicion of having broken into several homes. The Foreign Ministry blames such extreme violence on xenophobic attitudes that are more and more visible among European politicians. The French authorities condemned the aggression, and have launched an investigation.



    Romania’s president, Traian Basescu, rejected any claims that he was in any way party to the events leading to the scandal involving his brother, Mircea Basescu, accused of influence peddling.




    Romania’s president, Traian Basescu, rejected any claims that he was in any way party to the events leading to the scandal involving his brother, Mircea Basescu, who is being investigated by anti-corruption prosecutors. He is accused of having received a bribe worth a quarter of a million Euros for influencing a court of law to issue a favorable verdict in an attempted murder trial.





    Prime Minister Victor Ponta said that Romania has enough gas stored to cover its needs for the following six months.



    Prime Minister Victor Ponta said that Romania is less threatened by a cut-off of Russian natural gas supplies than its neighboring Ukraine, and has enough gas stored to cover its needs for the following six months. Romanian Energy Minister Razvan Nicolaescu has also called on energy companies to boost their natural gas output to the maximum, while the government is considering starting extraction in newly acquired gas pockets in the Black Sea shelf.

  • The Week in Review, June 8-15

    The Week in Review, June 8-15

    IMF postpones assessment of the stand-by agreement with Romania


    The IMF postponed to November the assessment of the stand-by loan agreement signed with Romania last autumn, to give Bucharest some time to decide on new fiscal measures and to draw up the budget bill for next year, PM Victor Ponta has announced. A news release issued by the IMF on Thursday reads that “the teams have had constructive discussions with the Romanian authorities on how to ensure further progress and have reached agreement on important policies in this regard. However, some issues remain outstanding.” One of them is the Government’s plan to slash social security contributions by 5% as of July 1st, which the international financial institutions did not agree with. Victor Ponta announced that next week the Government will send the bill concerning this change to Parliament, and promised that Bucharest will respect all macroeconomic targets agreed on with the international lenders.


    World Bank, optimistic as regards the Romanian economy


    The World Bank has improved its forecast of Romania’s economic growth this year from 2.5% in January to 2.8%, while the GDP growth next year is expected to be even higher, around 3.2%. Similar figures have been announced for the entire regional and at a global level. According to the report, the stronger foreign demand will lead to an improvement with regard to Romania’s employment and consumption levels. At the same time, the low inflation will enable the National Bank to support economic growth through its monetary policy. The government and the IMF expect a GDP increase between 2.2 and 2.5% this year and around 2.5% next year. In turn, the European Commission estimates 2.5% and 2.6% economic growth rates for Romania in 2014 and 2015 respectively.


    Facilities for Romanian entrepreneurs


    Romanians of any age, who have not had their own companies before, may set up a micro-enterprise free of charge, thanks to a law aimed at encouraging the development of small enterprises passed by the Chamber of Deputies on Wednesday. The law also exempts employers from payment of social security contributions for a maximum of four full-time employees with open-end employment contracts, and from the payment of registration fees charged by the Trade Registry offices. Entrepreneurs may also receive non-reimbursable funding of up to 10,000 euros, to cover 50% of the total amount of eligible expenses stipulated in their business plan and for which they prove they have co-funding sources.


    Over 50% of Electrica shares to be listed


    The Government seeks to obtain at least 435 million euros in exchange of 51% of the shares of Electrica, which it will have listed with the Stock Exchange. Preparations for the listing should be completed by June 26th, and the trading of Electrica shares is scheduled to begin on July 3rd. PM Victor Ponta is confident that the operation will be successful and says the revenues will be used for investments. The Minister Delegate for Energy, Razvan Nicolescu, announced this is the largest listing operation in the Romanian stock market, and the price per share will range between 11 and 13.5 lei. Large investors will be able to buy up to 85% of the shares for sale, while the remaining 15% will be offered to small investors. If the demand is higher, the percentage allotted to small investors may be raised to 22%. All investors will also benefit from discounts. In another move, as of July 1st all natural gas producers will have to trade part of their output in the commodity market, and the same measure will apply to natural gas providers starting next year.


    Statements by EC President in Chisinau


    The President of the European Commission, Jose Manuel Barroso, is confident in the European future of the Republic of Moldova, and says the country’s signing the EU Association Agreement on June 27th was not intended to affect its economic relations with Russia. While in Chisinau, the EC official explained that the agreement was meant to improve Moldova’s international relations, rather than influence its relations with any other country, Russia included. In turn, Moldovan PM Iurie Leanca appreciated the financial, technical and political support given so far to the Republic of Moldova, and said his cabinet would do its best to shorten as much as possible the period of Moldova’s EU integration.


    Medals for Romania in the European Fencing Championships in Strasbourg


    Romania’s women’s epee team won the gold on Thursday, defeating Russia, 38-34 in the final of the European Fencing Championship in Strasbourg, France. Ana-Maria Branza, Simona Pop, Maria Udrea and Simona Gherman (the latter also winner of the bronze medal in the individual event in Strasbourg) defeated Ukraine in the quarter-final and Italy in the semi-final.

  • The Week in Review, June 3 – 6

    The Week in Review, June 3 – 6

    A delegation of international lenders is in Bucharest, reviewing the latest stand-by loan agreement with Romania


    A joint mission from the IMF, the EC and WB is in Bucharest until June 16, evaluating the most recent stand-by loan agreement with Romania, worth 4 billion Euro. The evolution of macro-economic indicators, especially those relating to the budget balance, is at the core of talks. IMF experts are still looking into revenue collection, trying to establish whether or not a 5% slash in public social security contributions provided by employers is feasible. The lenders agree in principle with this measure, provided it should not affect the budget balance. Talks are also concerned with dismantling the state monopoly in two key sectors, energy and infrastructure, as well as reducing public enterprise debt and restructuring state companies.



    The European Commission issues a set of economic recommendations to Romania


    The European Commission has submitted its economic policy recommendations to member states in order to preserve last year’s recovery. For Romania, this means implementing the EU-IMF assistance program and the 2014 budget strategy, speeding up health reforms, consolidating active employment measures, and increasing the quality and accessibility of education and apprenticeship. In terms of taxes, the EC recommends an improvement in tax collection, reducing tax evasion and under the counter labor, and a resolution to the process of pension reform, started in 2010.


    The public administration is encouraged to streamline and increase transparency and integrity, while the court system is encouraged to fight corruption and enforce court decisions. The energy and transportation sectors need to promote competition and efficiency, in addition to speeding up state sector reforms.



    Romania puts in place as new set of health service regulations starting June 1


    The Romanian authorities have put into place a new set of health regulations starting on June 1st, in an attempt to improve public health services, emphasizing prevention. Under the new regulations, citizens below 39 years of age have to have a check-up at least once every three years, a service provided by their family physician, while people over 40 have to have a compulsory annual check-up. Another novelty is gratuity for autism treatment, some dental procedures, and hospital decongestion measures. 300 types of diagnosed conditions will no longer be treated in hospitals, which are overcrowded as it is, and will be steered towards clinics.


    Family physicians will be monitoring a number of chronic conditions, such as hypertension, type II diabetes, and asthma. In addition, the minimal and the basic package for pregnancy care will be including hepatitis B and C testing.



    The Romanian Parliament issues its final decision on the failed mining enterprise in Rosia Montana


    The Chamber of Deputies on Tuesday issued its final decision, rejecting the gold and silver mining enterprise in Rosia Montana. The bill, introduced by the government of Romania, had already been dismissed by the Senate, in November 2013. The decision was motivated by the fact that the project does not meet compliance standards specific to the mining industry as regulated in Romania. Last autumn, tens of thousands of people protested in the street, demanding the government withdraw the bill, ban cyanide mining and include Rosia Montana on the UNESCO list as a protected heritage site.



    US President Barack Obama met in Warsaw the leaders of 10 CEE countries, including Romania


    On the 25th anniversary of the fall of communism in Poland, US President Barack Obama attended ceremonies in Warsaw, taking that opportunity to reaffirm the American commitment to its eastern European NATO allies, Romania included, against the backdrop of the situation in Ukraine.


    Obama said he would ask Congress to earmark one billion dollars for deployment of additional American forces in the area. Meeting his counterparts from the region, including Romanian President Traian Basescu, Obama said that the US is not threat to Russia, but that NATO cannot stand idly by as Russia violates principles of national sovereignty and integrity which have so far formed the foundation of a peaceful Europe.



    Defense Secretary Chuck Hagel visits Romania


    US Secretary of Defense Chuck Hagel visited on Thursday the Black Sea Romanian port of Constanta, reaffirming American and NATO support for Romania as an ally during his meeting with Romanian Defense Minister Mircea Dusa. The Romanian official said that his country appreciates the political and military efforts made by NATO allies, with an emphasis on the US, considering the sudden changes in the regional security situation. The two government officials visited the USS Vella Gulf, deployed to the region in response to the crisis in Ukraine. Mr. Hagel also met PM Victor Ponta. This visit comes two weeks after Vice President Joe Biden visited Romania, a visit also meant to reassure allies of staunch American support.

  • The Week in Review 26 – 31 May

    The Week in Review 26 – 31 May


    Left-of-centre alliance wins European Parliament election in Romania



    The ruling alliance in Romania, made up of the Social Democratic Party, the National Union for the Progress of Romania and the Conservatives, won 37.6% of the votes in last Sunday’s election for the European Parliament, according to the final results announced by the Central Electoral Bureau. Next came two center-right parties, the Liberals with 15% and the Liberal Democrats with little over 12%. An independent candidate, Mircea Diaconu, also made it into the EP, with nearly 7% of the votes, and so did the Democratic Union of Ethnic Hungarians in Romania with 6.30% and the pro-presidential People’s Movement Party with 6.21% of the votes. The other candidates failed to meet the election threshold. The turnout was 32.44%.



    Liberals and Liberal Democrats decide to set up an alliance



    After the EP election, all the leaders of the National Liberal Party, starting with president Crin Antonescu, resigned on account of the poor results of the party. In order to counter the Social Democratic Party, the Liberals and the Liberal Democrats decided to merge in order to build what they called a solid project. The two parties seek to form a large right-of-centre party and to work together both at a parliamentary and a local level. In the short term, their goal is to ensure the election of a strong presidential candidate this autumn. Seen with reservation, the merger of the Liberals and Liberal Democrats is also aimed at isolating the newborn People’s Movement Party, set up by the president’s diehards, and which has passed its first election test.



    Europe, after the EP election



    Europe is faced with the political aftershock of the unexpectedly high scores won by far-right and populist parties in the EP elections. The victory is an indication of the popular disapproval of the EU as it is currently organized, and of the national elites currently in power. The largest number of seats in the EP, namely 213 out of 751, went to the European People’s Party, but this is not enough for a majority. The first to seek building a simple majority of 376 seats, is the former Luxembourg PM Jean-Claude Junker, the European People’s Party’s candidate for EC president. According to experts, his party may try to forge an alliance with the Socialists, which came second in the election and have 190 seats in the new parliament. Involved in the election of the Commission president are both the European Parliament and the European Council, made up of the 28 EU heads of state and government. The election turnout across the Union was 43.1%.



    Romania Opposition moves to censure the Government



    The Parliament of Romania dismissed the first motion of censure tabled against the Social Democrat Victor Ponta’s cabinet by the National Liberal Party, in opposition. Although the motion had been signed by 231 MPs, only 176 voted against the government. For the motion to pass, it needed at least 286 out of a total 571 votes. The opposition accused the Government of failing to implement several measures to improve the business environment, such as reducing the social security contributions paid by employers and the scrapping of taxes on reinvested profits. Moreover, the initiators of the motion accused PM Ponta of using public budget resources for election purposes and of trying to control the judiciary.



    Ukraine has a new president



    The West-leaning billionaire Petro Poroshenko won 54% of the votes in the presidential election held in Ukraine on Sunday. Reaching an agreement with the pro-Russian separatists and the EU accession are the main priorities of the new president elect. The European leaders have called on Poroshenko to start a reform process and promised the support of the EU in this respect. The European support will focus on the constitutional reform of the country, on ensuring economic stability and on strengthening Ukraine’s energy security. The EU leaders have also urged Moscow to cooperate with the new authorities in Kiev, to pull out its troops from the border area and to use its influence on the armed separatist militants in order to alleviate tensions in eastern Ukraine.



    Germany supports the EU accession of Moldova, Ukraine, Georgia



    Chancellor Angela Merkel reiterated Germany’s support for the EU accession of the Republic of Moldova, Ukraine and Georgia, the ex-Soviet republics that made a pro-Western choice for their future. Angela Markel had a meeting in Berlin with the PM of Moldova, Iurie Leanca, of Ukraine Arsenyi Yatsenyuk, and of Georgia, Irakli Garibashvili. The German Chancellor said the association agreements to be signed by Moldova and Georgia on June the 27th will pave the way for a new partnership for reforms to strengthen democracy, the rule of law and free market economy. In turn, PM Iurie Leanca reiterated Chisinau’s firm decision to seek European integration, as an expression of the best interests of his country.



    In Romania, the Danube is above flood levels



    Hydrologists have warned against flooding in the Romanian regions alongside the Danube, whose waters are above flood levels in Galati and Braila, in the south-east. According to forecasts, however, the water level will not continue to rise significantly. Although the waters have started to permeate the defense dams and to eat into their structural frames, authorities promise there will not be any problems.

  • The Week in Review 19-25 May

    The Week in Review 19-25 May

    US Vice-President Joe Biden travels to Bucharest



    Three months ago, before Russia’s annexation of Crimea, NATO Secretary General Anders Fogh Rasmussen’s visit to Bucharest, soon to be followed by that of the US Vice-President Joe Biden, might have been regarded as a mere coincidence. But now, against the backdrop of the events in the neighbouring Ukraine, the two officials’ coming to Bucharest, within such a short period of time, is clear evidence of the military support that Romania enjoys from its Western allies, against a troubled regional background. This week, the US Vice-President has reasserted the statement made by the NATO official late last week: Romania does not stand alone in the face of the danger posed by Russia, whose illegitimate territorial claims risk destabilising the region. Also, Biden has hailed Romania’s decision to increase its defence budget to reach 2% of the GDP in 2017.



    However, the US official has not talked about security alone. The fight against corruption, strengthening the rule of law and the opportunities in the energy field were also addressed by the second most important man at the White House. In turn, Romanian President Traian Basescu hailed the US’s response to Crimea’s annexation, which came fast and clear. Upsizing the US air, sea and ground forces in the Black Sea area, including on Romanian soil, is nothing but a natural reaction to the moves that unpredictable Russia is now making on the regions’ map, said president Basescu. At the meeting with Biden, Romanian Prime Minister Victor Ponta stressed the need for a visa waiver program for the Romanian citizens who wish to travel to the US.



    The end of the campaign for the European Parliament elections



    This week has been the last of the campaign for the European Parliament elections due on Sunday, May 25th. Analysts have voiced their disappointment with what they have termed as a “dull” campaign, dominated by trivialities instead of relevant topics. On Sunday, Romania’s over 18 million eligible voters will have to choose from among the representatives of 15 parties and alliances and 8 independent candidates, who will be fighting for the 32 seats Romania is entitled to in the European Parliament. As polls have shown this week, voter turnout will not exceed 30%, which is rather low, but does reflect a common trend across the European Union. All in all, the future European Parliament, whose decision-making power within the EU is growing, will number 751 members.



    Romania’s Parliament debates motion of censure



    A motion of censure tabled by the Liberals in opposition has been read in the Parliament of Romania. The motion, forwarded last week, criticises the government made up of the Social Democratic Party, the National Union for the Progress of Romania, the Conservative Party and the Democratic Union of Ethnic Hungarians in Romania, for postponing a number of fiscal relaxation measures. These include the tax exemption for reinvested profits and a 5% reduction in social security contributions. In response, the minister delegate for budget Liviu Voinea announced the social security payments would be slashed starting July the 1st. Parliament will vote on the motion on Monday.



    New cases investigated by the National Anticorruption Directorate



    The National Anticorruption Directorate seems determined to make up for the time wasted over the past 25 years in the fight against this scourge affecting the Romanian administration. Businessman Dan Adamescu, the second-richest Romanian according to the latest standings, is prosecuted for bribe-giving. Adamescu allegedly offered money to magistrates with the Bucharest Tribunal in exchange for some of his businesses being declared insolvent. Also this week, three physicians, two chemists and four company officials have been arrested for their involvement in cases of fraud involving forged prescriptions for cancer drugs.



    Tax exemptions



    Twenty-seven charges and para-fiscal tariffs have been scrapped or merged by the government of Romania, while another 65 will be regulated under a ministry order. According to the government, eliminating these 92 charges will not have a major impact on the state budget, given that last year they only brought around 2 million euros to the budget. However, Prime Minister Victor Ponta stressed, the measure helps reduce bureaucracy. “I am certain that we can further streamline this terrible fiscal system,” the Prime Minister added.

  • The Week in Review, May 12 – 16

    The Week in Review, May 12 – 16


    NATO Secretary General Anders Fough Rasmussen visits Romania



    NATO secretary general Anders Fough Rasmussen paid a two-day visit to Bucharest to hold talks with the Romanian officials. On Friday, Rasmussen met with President Traian Basescu, with Prime Minister Victor Ponta, Foreign Minister Titus Colarean and Defense Minister Mircea Dusa. Russia’s actions, the NATO official told Radio Romania, created a completely new security situation in Europe. For this reason the Alliance needs to adjust to the new and sophisticated type of war that Russia is leading, in which subversive activities have replaced direct aggression.



    New sanctions against Russia


    The EU increased, on Monday, the number of Russian and pro-Russian officials subject to sanctions. Another 13 people were added to the list of 48 officials sanctioned with asset-freezing and travelling restrictions within the EU. The list also includes Russian Deputy Prime Minister Dimitri Rogozin, whom Romanian authorities denied entry into Romanian airspace, against the background of a visit he paid to Transdniester. Bucharest’s move prompted the Russian Foreign Ministry to say that, under the circumstances, normal ties between the two countries could no longer be hoped for. Alexandr Lukashevich, a spokesman for the Russian Foreign Ministry, deemed the Romanian authorities’ most recent statements on this matter as unacceptable, and stated that ties between Romania and Russia were likely to get worse. Previously, President Traian Basescu had said about the Ukrainian crisis:



    “The Russian Federation has two priorities: to federalise Ukraine and to prevent the presidential elections due on May 25th from taking place.”



    Moldova to sign Association Agreement with the EU


    The European Union and the Republic of Moldova will sign, on June 27, the EU Association Agreement, forged in Vilnius, last year, European Commission President Jose Manuel Barroso announced on Thursday in Brussels. Previously, an invitation in this respect had been addressed to Chisinau by the president of the European Council, Herman Van Rompuy. The Agreement promotes democratic principles, guarantees the rule of law and the fundamental liberties. The document also has economic components and provides for liberalised markets and an improved business environment. For this reason, says the pro-European prime minister of Moldova, Iurie Leanca, his country will be stronger and all people, those who live in the breakaway region of Transdniester included, will understand that the European integration is the best democratic solution.



    Economic growth


    Romania reported an economic growth of 3.8% in the first quarter of 2014, as compared to the previous period of last year, the highest economic growth at EU level. The preliminary estimate was announced by Eurostat, and subsequently confirmed by Minister Delegate for Budget Liviu Voinea. The Romanian official expects an economic growth for 2014 above 4%.



    New healthcare legislation


    A fresh piece of legislation in the field of healthcare in Romania provides for fewer hospital admissions, increasing the number of outpatient treatments. The new law will come into force on June 1. The president of the Health Insurance National Authority Radu Tibichi explains:



    “We now have the budget to allow outpatients to conduct medical investigations in ambulatory. We now have doctors who can interpret these investigations, solve and monitor outpatient diseases. As regards hospital services, under the new legislation some 300 diseases are no longer admissible for treatment. In addition, there will be a complete list of diagnostics and services that are covered by hospital services, something that did not previously exist”.



    Extreme weather in Romania


    A new wave of heavy rain hit Romania this week, particularly southern, western and eastern regions. Hydrologists have repeatedly issued code yellow, orange and even red alerts against heavy rain and flooding for several counties. Hundreds of people were left stranded, their households flooded, dozens of villages were cut off from the power grid while traffic on many roads was disrupted.

  • The Week in Review 3-10 May

    The Week in Review 3-10 May

    Trends and forecasts for the Romanian economy



    The Romanian Government set January 1st 2019 as the new target for Romania’s joining the eurozone. Meanwhile, the European Commission has improved, for the second consecutive time, the economic growth forecasts for Romania in 2014 and 2015, to 2.5% and 2.6% respectively. The main driving force will be the domestic demand, which is expected to exceed exports. In the coming two years investments are also expected to grow, thanks to better absorption of European funds and the development of major infrastructure projects. The European Commission estimates that in 2014 the inflation rate will stand at 2.4% and in 2015 at 3.3%. The National Bank of Romania also revised the country’s inflation rate target for 2014 down from 3.5% to 3.3%, given that the Romanian economy is consolidating its positive evolution and is embarking on a sustainable growth path. However, the central bank governor, Mugur Isarescu, believes that Romania’s economic growth does not account for the appreciation of the national currency, the leu, against the euro and the US dollar. He thinks the stronger leu is rather a matter of circumstance, partly due to the regional context. Mugur Isarescu also announced that Romania reimbursed the greatest part of the 12 billion euro loan taken from the IMF in 2009 and that it would pay it off next year.



    |The Constitutional Court rules on the houses nationalised during the communist regime



    Romania’s Constitutional Court ruled that the former owners of houses abusively seized by the Communist regime who resorted to lawsuits to have their property returned, will have to wait for the courts’ final verdict without being able to benefit from the provisions of a relevant law passed in 2013. The Constitutional Court judges decided that this law should not apply to already open cases. The courts are to resolve the cases, mainly to establish the right to and the amount of compensations, and the files will be subsequently submitted to the authorities to issue the title to the property. The Constitutional Court ruling is final and binding.



    Protests of the Romanian Post and of Bucharest subway employees



    The Romanian Post employees protested Wednesday in Bucharest and other cities in Romania against the way in which the company has been managed by the state in the past years. Post employees demand the resignation of the director general, the adjustment of salaries to inflation, extra hour payments and better working conditions. The trade union leaders announced the protests would continue in the coming period. The debts of the Romanian Post stand at around 45 million euros. The Bucharest subway employees also protested on Wednesday for the 2nd consecutive day, criticizing, among others, the failure of the management to observe the current Collective Bargaining Agreement, and the unilateral modification of the company’s organizational chart.



    American company Chevron starts shale gas exploration in eastern Romania



    The representative of the American company Chevron in Romania, Thomas Holst, told Radio Romania News and Current Affairs that they started exploration works for shale gas development in the village of Pungesti, in the eastern Romanian county of Vaslui. The Chevron official promised that all European and Romanian laws will be observed and that ground water will not be affected and will be permanently monitored. The locals and environment activists have repeatedly protested the American project, arguing that hydraulic fracturing, used in shale gas exploitation, pollutes the ground water and can cause small earthquakes.



    Senate speaker Calin Popescu Tariceanu visits Chisinau



    Romania will be the first country to ratify Moldova’s Association Agreement with the EU, as a clear and unequivocal sign of support for this country’s efforts to join the European Union, Romanian Senate Speaker Calin Popescu Tariceanu said on Wednesday during his visit to Chisinau. The Romanian official had talks with president Nicolae Timofti, Prime Minister Iurie Leanca, and with Moldovan Parliament Speaker Igor Corman. Talks focused on EU integration, bilateral energy projects and the developments in the region.



    The developments in Ukraine, high on the agenda of Romanian authorities



    Romania’s Foreign Minister Titus Corlatean has reiterated Romania’s support for neighbouring Ukraine, underscoring the importance of fully observing the territorial integrity, sovereignty and independence of this country. Attending the European Council meeting of Foreign Ministers in Vienna, Corlatean highlighted Bucharest’s concern with the destabilizing effects of the Ukrainian crisis on the security of the region, including Transdniestr, a separatist province east of Moldova. Corlatean said Romania would be sending its own observers as part of international missions monitoring the Ukrainian presidential elections of May 25. Moreover, Bucharest will contribute to the financial package awarded to Ukraine, as part of the measures aimed at fostering constitutional and legislative reforms and consolidating democratic institutions in that country.