Category: The Week in Review

Former Romanian Prime Minister Adrian Nastase back to prison

10 months after he was released from prison, where he served time for his involvement in a case of corruption, the former Romanian Prime Minister Adrian Nastase between 2000 and 2004 is again behind bars. On Monday, the High Court of Cassation and Justice sentenced him to 4 years in prison for bribe taking and blackmail. His wife, Dana Nastase, got a suspended sentence in the same case. Also, the court ruled that the two must pay 400,000 euros worth of damages. According to prosecutors from the National Anti-Corruption Directorate, Adrian Nastase demanded and received, through his wife, undue benefits estimated at 630,000 euros. Adrian Nastase claims his case is political order and described his sentence as an “extremely unfair and dirty act of revenge”. The leader of the Social Democratic Party, Prime Minister Victor Ponta, has taken a similar stand, saying that ever since 2005 Nastase has been the main target of his political rival, President Traian Basescu.

A Romanian MP is arrested for corruption

MP Gheorghe Coman, a member of the Conservative Party, in power, is now in temporary custody, in a case in which he is accused by prosecutors of the National Anti-Corruption Directorate of having used his office to receive undue benefits. In another move, the former Minister of Agriculture Stelian Fuia, a member of the Liberal Democratic Party in opposition, is being prosecuted for abuse of office. Anti-corruption prosecutors have accused him of the sale, in 2005, of heritage buildings belonging to the research institute he was heading to benefit his sister and brother-in-law.

More reactions on the liberalisation of the labour market for Romanians and Bulgarians

The European Commission has announced that so far it has received no information from Member States like Great Britain and Germany regarding a so-called “invasion” of Romanians and Bulgarians following the liberalisation of the labour market on January 1st. The media, politicians in power and in opposition, as well as ordinary citizens in some Member States have repeatedly voiced worries that Romanian and Bulgarian citizens may take advantage of their welfare systems. The British government has already taken measures to restrict immigrants’ access to social benefits. Chancellor Angela Merkel’s cabinet is also considering similar measures to avoid any abuse of social security rights.

The priorities of the Greek presidency of the EU

The political scene

The agreement known as the “cohabitation pact” signed early in 2013 by President Traian Basescu and PM Victor Ponta failed towards the end of the year over the changes to the Criminal Code. MPs tried to introduce a new provision to the code by which the head of state, MPs and liberal professionals are no longer regarded as public servants, which means that they can no longer be investigated and indicted for corruption-related acts such as abuse of office, bribe taking and peddling in influence, as well as for conflict of interests. The move was criticised by the president, the Higher Council of Magistrates, foreign diplomats and the people, many of whom took to the streets to protest against the changes. The Social Liberal Union, the ruling coalition in Romania, has itself been troubled by internal conflicts. The statements coming from the Union’s two leaders on various subjects, such as the amnesty law, imply that the cracks inside the coalition are becoming wider and more and more visible.

The Schengen entry — a new postponement

Initially scheduled for 2011, Romania’s and Bulgaria’s entry into the passport free Schengen area was again postponed in 2013. The two countries presented the EU Justice and Internal Affairs Council held in Brussels in December with a political statement in which they voice their disappointment and say there is no legal and concrete reason for their entry to be postponed. Romania and Bulgaria again emphasised that they met all Schengen entry requirements. At the meeting in December, EU home affairs and justice ministers did not establish a date for the two countries’ accession to the Schengen area. Germany, Holland, France and Britain are openly opposed to Romania’s and Bulgaria’s entry, saying the two states may become the source of an uncontrollable wave of migration.

Protests over controversial projects in Roşia Montană and Pungeşti

The cyanide-based gold mining project in Roşia Montană was one of the most controversial subjects in 2013. People are concerned that the concentration levels of cyanide may cause irreversible damage to the environment. Other reasons for criticising the project have to do with the low amount of royalties, namely 6%, collected by the state, as well as with the fact that ancient historical traces in the area will de destroyed by the mining works. According to the Canadian company Roşia Montană Gold Corporation which has been trying to start the gold exploitation for the last 15 years, Romania stands to benefit from the project economically, the environment would be cleaner and the archaeological heritage would be better promoted. A parliamentary committee set up to analyse the pros and cons rejected the bill regulating the gold exploitation in Roşia Montană last November. Another controversial project to generate protests in 2013 had to do with the extraction of shale gas by the American company Chevron in Pungeşti, eastern Romania. The critics to the projects denounce the hydraulic fracturing method involved in the project, which can pollute underground water and cause earthquakes. Chevron gave assurances that its exploration would only involve conventional technology, as established with the Romanian authorities in the permit granted in October 2013.

Seeking a vote of confidence for the return of property Law

The Government headed by Victor Ponta, which in December celebrated its first anniversary, asked for parliament’s vote of confidence twice in 2013: once in April, for the law regarding the return of properties seized by the communist regime, and in November, for the decentralization law. In the first case, the Prime Minister apologized, in plenary parliament session, to all those who had suffered as a result of nationalization. Under the law, all applications will be solved by 2017, and priority will be given to those cases where restitution in kind is possible. If this is not the case, damages will be paid, and litigious rights will be taxed. So far, the Romanian state has paid damages to former owners worth over 5 billion Euros and should pay another 8 billion. As regards decentralization, this will affect healthcare, agriculture, culture — except for cinema halls — youth, sports and tourism. According to the draft law, institutions that are now directly administered or financed by the central power shall go to the county or local authorities. The police, the Social Security Authority, cinema halls and ports shall remain under the administration of the central power. The law has been severely criticized by the centre-right opposition.

The Enescu Festival

In the month of September, Bucharest and other cities across Romania hosted the 21st “George Enescu” International Music Festival, one of the most prestigious such events in Europe. For a month, music lovers had the opportunity to go to concerts, recitals, opera and ballet performances, conferences and composition workshops. Besides big European orchestras, the 2013 Enescu Festival also enjoyed the participation of the choirs and orchestras of Radio Romania, which in 2013 celebrated 85 years of existence. The “George Enescu” Festival which is held every two years, was set up in 1958, in sign of recognition of the value of the great Romanian composer.

Awards for “Child’s Pose”

In 2013, the film “Child’s Pose”, by Romanian director Calin Peter Netzer, won the Golden Bear trophy at the Berlin Festival. Also, the film won the “Aleksander Sasa Petrovic” award at the Auteur Film Festival in Belgrade. The film speaks about the traumas suffered by children who are suffocated by parents’ love and how parents influence their children’s personality. Also, the film mirrors the Romanian contemporary high-life and talks about influence peddling and petty institutional corruption, as well as its extensions across the entire social and economic system in Romania. Thanks to the involvement in the production of this film, and not only, Ada Solomon got in December the European Prix — Eurimages award for co-production. The event was held on the occasion of the European Film Academy Awards Gala. One of the most active filmmakers today, producer Ada Solomon is seen as a major figure of Romanian and European cinematography.

2013, a great year for Romanian tennis player Simona Halep

Though the year 2013 was not great for the Romanian sport teams, especially because of the Romanian national football squad’s failure to qualify for the World Championship in Brazil, it was full of accomplishments for the Romanian tennis player Simona Halep. She was designated by the Women’s Tennis Association- WTA the player who made the biggest progress in 2013. She won 6 tournaments and ended the year 11th in the WTA rankings. According to WTA this year Simona Halep stands big chances of becoming the third Romanian among the 10 best tennis players in the world, after Virginia Ruzici (8th in the WTA rankings in 1979) and Irina Sparlea (7th in the WTA rankings in 1997).

Romanian has a budget for 2014

Eventually promulgated by President Traian Basescu, the 2014 state budget law has been published in the Official Journal. The head of state endorsed the document after the Government agreed to postpone by three months the introduction of an additional excise duty on fuel, which, under the agreement with the IMF, should have been levied starting January 1st, 2014. President Basescu has expressed confidence that eventually this duty will not have to be applied at all. Traian Basescu:

“There are enough resources to avoid the enforcement of this barbarian duty. My objective was not to cause a confrontation, but to correct a mistake made in the negotiations with the IMF and the EU. In my opinion, the Government, the IMF and the Commission were equally wrong, as they excessively burdened us with a duty on fuel that was not at all necessary.”

Previously, President Basescu had conditioned his signing of the 2014 budget and of the memorandum with the IMF on the elimination of the additional excise duty on fuel. While the ruling Social Democrats have hailed the signing of the budget law, the Liberal-Democrats, in opposition, have criticized it. The first vice-president of the Liberal Democratic Party, Catalin Predoiu has stated:

“This is a budget that has cut investments, a budget based on illusory revenues, a budget that denies Romania’s development, a budget that actually reflects the incapacity of a 70% majority.”

The Romanian budget was built on the basis of a 2.2% economic growth rate, an inflation rate of 2.4% and an exchange rate of 4.45 lei for one Euro.

The amnesty law under public debate

With the attempt to modify the Criminal Code triggering a huge scandal, which ended with serious accusations being brought against parliamentarians, the MPs have this week submitted to the Judicial Committee another controversial law: the one regarding amnesty and the pardoning of certain offences. The law is to be debated until February 1st, 2014. Actually the law was merely the pretext for new disputes between the co-presidents of the ruling Social Liberal Union. Victor Ponta claims that, although Crin Antonescu disavows amnesty in public, he has allegedly asked the Prime Minister, off the record, to adopt the draft law under an emergency ordinance. In turn, Antonescu has warned that if this verbal dispute continues, the alliance is likely to break after the New Year. In another move, the Romanian MPs have passed a new law regarding public-private partnerships. The minister for national projects and infrastructure Dan Sova claims that, under the new law, authorities will be allowed to run several self-financed projects at the same time, without having to wait for approvals of state loans. The document also stipulates that, if the public-private partnership fails to meet all the set requirements, it can be replaced without the obligation of holding another tender. The opposition, which says the law will permit the conclusion of contracts in a non-transparent manner, has called for the draft law to be further debated in the parliamentary committee.

New Government and Constitutional Court appointments

The Romanian Minstry of Culture has a new head, the Liberal Gigel Sorinel Stirbu, who said about his new position:

“I know I am a person who knows the ministry pretty well, I’m convinced that the ministry needs a good manager, somebody who knows very well what’s going on there. It’s a difficult mission, but I am convinced I will manage.”

Gigel Sorinel Stirbu has replaced Daniel Barbu, who resigned after stating that the HIV/AIDS patients benefit from far too much money as compared to culture. In another development, the Social-Democrat senator Toni Grebla has been sworn in judge at the Constitutional Court. Grebla was the Social-Democrats’ second nomination for a seat at the Constitutional Court after Lucian Bolcas, who, accused of anti-Semitism and strongly opposed by many, was forced to step back. Toni Grebla takes the seat left vacant by Iulia Motoc, who is now a judge at the European Court of Human Rights in Strasbourg.

Romanian army missions in 2014

Next year the Romanian army will deploy 1,311 soldiers to foreign missions and operations, 725 less than this year. Also, the Romanian Interior Ministry may participate in 2014 in EU, NATO or OSCE-led missions with 791 soldiers and police, 301 more than in 2013. The plan regarding the deployment of Romanian armed forces abroad was approved by the Supreme Defense Council this week. The main effort will still be Romania’s participation in the International Security Assistance Force in Afghanistan and in operations in the Balkans.

24 years since the anti-Communist revolution in Romania

Starting on Monday Timisoara, the city that saw the first sparkle of the anti-Communist revolution, the capital Bucharest and other cities across Romania have hosted events aimed at recalling the sacrifice of those who in 1989 fought for freedom risking their own lives. People have commemorated the victims of the revolution with flags flying at half-mast, floral tributes, masses in church, moments of silence…From Timisoara, where it started on December 20th, 1989, the anti-Communist revolution soon spread across the entire country.

Amendments to the Romanian Criminal Code cause wave of criticism

The amendments the Romanian MPs brought to the Criminal Code have this week caused a storm on the political arena in Bucharest. The amendments adopted by a Parliament dominated by the Social Liberal Union change the status of the president, MPs and liberal professions, that will no longer be considered civil servants and consequently will avoid being investigated and punished for corruption offences such as abuse of office, bribe taking and influence peddling, or for conflict of interests. The amendments to the Criminal Code adopted by the Chamber of Deputies shatter the 10-year long work of anti-corruption institutions such as the National Anticorruption Directorate and the National Integrity Agency, President Traian Basescu warned. In turn, the Anticorruption Directorate showed that following the adoption of these amendments the MPs indicted for corruption could be acquitted, while those already detained could be released. The High Court of Cassation and Justice has also reacted by notifying the Constitutional Court on the matter. Their argument is that the amendments to the Criminal Code, which place a certain category of people above the law, are incompatible with the rule of law. The Liberal Democrats in opposition also challenged the new amendments. External reactions were not late to appear. The embassies of the US, Great Britain, Germany and the Netherlands voiced concern with the recent developments in Romania. The stand of the European Commission on the amendments brought to the Criminal Code will reflect on the Mechanism for Cooperation and Verification report to be issued in January 2014, the EU spokesperson Mark Gray said. On the other hand, the Constitutional Court decided that the enforcement of sentences in murder cases could not be prescribed. In October, the Institute for the Investigation of Communist-era Crimes and the Memory of the Romanian Exile expressed concern for a possible blocking of investigations into the 1989 anti-Communist revolution, following the Constitutional Court’s possible approval of homicide sentence write-offs. At present two former commanders of Communist prisons are indicted for murder.

Romanian road carriers are discontent with increase in excise duty on fuels

The Romanian freight carriers have gone on strike to protest the government’s plan to increase the excise duty on fuels by 7 eurocents. Transporters also call for a drop in the excessively high fines and the elimination of town entry fees, adding that the 7-eurocent excise duty on diesel oil could disadvantage domestic operators. PM Ponta suggested that the excise duty should be applied for petrol alone, postponing the supplementary duty on diesel oil by 3 months. On the other hand President Traian Basescu rejects the introduction of this extra tax on diesel oil and petrol.

State-owned CEC Bank President and the finance minister heard by inquiry committee

The president of CEC Bank, in the Romanian state’s portfolio, Radu Ghetea, and the Romanian finance minister, Daniel Chitoiu, are being heard by the Senate’s budget and finance committee. The committee is investigating the bank’s managerial activity after one of President Traian Basescu’s daughters took out a loan worth more than 1 million euros to buy a plot of farming land. Suspicions over the loan emerged after the finance minister made allegations according to which the president asked him for a favor, namely to keep the current president of CEC Bank in office.

The National Bank Governor estimates Romania might join the Euro zone in 10 years

The governor of the National Bank of Romania, Mugur Isarescu, said Wednesday that Romania needed another 10 years to reach 60% of the EU average GDP per capita. He pointed out that at the end of that period, there will be political stability without elections for 3 years (2021-2023), which is actually recommended for euro zone accession. According to the timetable set in 2007 when Romania joined the EU, Romania should have joined the euro zone in 2015 but, in the aftermath of the 2008 financial crisis, the target was abandoned.

Romanian women handball players have qualified in the eighth finals of the World Championship to be hosted by Serbia

Romania’s women’s handball team has qualified in the eighth finals of the World Championship in Serbia after defeating the Hungarian team. So far the Romanian handballers have won 3 world titles: gold in 1962 and silver in 1973 and 2005. On the other hand, two Romanian football teams have ended their path to the European Champions League. Romania’s vice-champion, Pandurii Targu Jiu pulled a nil-nil draw on Thursday night, on home turf, against the Portuguese Pacos Ferreira. On Wednesday Romania’s champions Steaua Bucharest were defeated 0-1 by Chelsea London, in the last leg of the Champions League’ groups.

Romania’s state and social insurance budget for 2014 passes Parliament.

Romania’s Parliament passed in three minutes, after a day and a half of debates, the state and social insurance budget for 2014. This was based on an economic growth of 2.2%, an inflation rate of 2.4% and an average exchange rate against the Euro of 4.45 lei. PM Victor Ponta said that this budget did not cut benefits for any social category. On the contrary, he said, it provided for a raise in the minimum wage in two stages, reaching 900 lei, around 200 Euro, also raising pensions by about 4% and the salaries of beginner teachers by 10%. The head of the center left government said that next year’s budget allocated around 8.8 billion Euros for infrastructure projects, including motorways. At the same time, taxation increases, mainly because of the new excise duty of seven Eurocents per liter of fuel. This measure, which the executive wants to apply starting January 1, has sparked a wave of criticism. The opposition claims that the budget is negative for the economy and the standard of living. The Romanian President Traian Basescu said he would not endorse the new state budget because of the new excise duty, which he claims increases the risk of inflation. He said he would return the bill to Parliament to be analyzed against the Constitution.

Political accusations fly around the new fuel tax

For the first time in his term, President Traian Basescu said he would definitely not endorse the memorandum with the IMF, the EC and the WB, because of the new law introducing a tax of seven Eurocents per liter of automobile fuel. This increase was due to be discussed with the IMF board in December. The president claimed that Romania did not depend on IMF loans, and wanted to renegotiate this excise duty at the future visit to Bucharest of the IMF delegation in January 2014. This caused a stir, as PM Victor Ponta accused the president of acting irresponsibly. The president said that the new excise is simply a fundraising tool for a future election campaign, while the PM claims the money is earmarked for infrastructure projects.

Moldova makes Romanian its official language

Moldova’s Constitutional court made on Thursday the Romanian language its official language. The Supreme Court in Chisinau said that Moldova’s 1991 declaration of independence preempts the 1994 Constitution, the latter describing Moldova’s official language as Moldovan. The term Moldovan language was promoted under the Soviet regime and by pro-Russian Moldovans after the break up of the USSR. In Bucharest, President Traian Basescu called this measure an act of justice in historical terms, which puts an end to attempts at falsifying history.

Romania and Bulgaria express their dismay at being denied accession to Schengen

Romania and Bulgaria introduced on Thursday in Brussels a statement expressing their disappointment at being denied accession to Schengen, saying that there is no reason, judicial or otherwise, to further delay their membership. Bucharest and Sofia reiterated the fact that they had met all the criteria for accession. At the meeting of the Justice and Home Affairs Council where they introduced the statement, no date was set for the two countries to be granted membership. This is met with opposition from Germany, Holland, France and the UK. The main fear is that of an unprecedented wave of work migration from the two Eastern European countries.

Romania continues to live up to its commitments as part of EUROSUR

Even though Romania is not a member of the Schengen area, it is one of the member countries in the new European system of controlling frontiers, called EUROSUR, which was instated on 2 December. The aim of EUROSUR is to improve detection, prevention and fighting illegal migration, as well as cross-border crime. EUROSUR has several stages before it is fully implemented, with contribution from 18 member states on the borders of the EU, including Romania, and even Norway, which is a member in spite of not being an EU member. The other 11 member states and associated countries will become part of the EUROSUR as of 1 December 2014.

The Republic of Moldova takes one step closer to the EU

The Republic of Moldova this week has signed the association and free trade agreement with the EU in Vilnius. The event occurred at the Eastern Partnership Summit, but was overshadowed by Ukraine’s decision to refrain from doing the same. On that occasion, PM Iurie Leanca said that signing these agreements symbolizes the mutual trust between his country and the EU, and said he hoped that Moldova would join the community of European states. Technically, this act signals the first step towards committing to EU integration, which the country of Georgia also took. Before the summit, the European Commission adopted a proposal to lift visa requirements for Moldovan citizens who travel with passports in compliance with biometric requirements. The European commissioner for internal affairs, Cecilia Malmstrom, and the commissioner for expansion, Stefan Fule, spoke appreciatively about the decision taken by Moldova. The EC proposal will be discussed in the European Parliament and the EU Council. This improvement in relations between the former Soviet republic and the European Union is supported by Romania, its neighbor, which as of late has taken on the role of mediating this process, acting as a guarantor state for the poorest country in Europe.

Cortina

China shows increasing interest in Romania

The prime minister of China, Li Keqiang, visited Bucharest this week, a visit dedicated to improving bilateral relations and boosting trade with Romania and the other countries in the region. He was received by the head of state, Traian Basescu, who told him that Romania is totally open to increasing Chinese investments in CEE. Prime Minister Victor Ponta said, in turn, that Bucharest has the potential to be an important trading partner for Beijing, as part of the EU. Prime Minister Li expressed his agreement in the speech he held in the Romanian Parliament, and said that Romania is an important pillar for China’s cooperation with CEE. On the occasion of his visit, during which he was accompanied by a delegation of government and business representatives, Romania and China signed several agreements, especially in energy. The Chinese prime minister took this opportunity to attend the CEE- China meeting of premiers, as well as an important economic forum.

Cortina

The Romanian justice system continues to be under scrutiny in the EU

This week, European Commission experts came to Bucharest as part of the Cooperation and Verification Mechanism to evaluate the progress made by Romania in reforming its judicial system. The main event during their visit was the meeting they held with Justice Minister Robert Cazanciuc. The main topics for discussion, attended by the most important magistrates in the country, were the future strategy for the development of the judicial system, judicial independence, and integrity among magistrates. The next report on this topic from the EC is due early next year. The European executive has been monitoring closely evolutions in the Romanian justice system since the country joined the Union in 2007.

Great Britain’s stance on migrant workers is criticized by the European Commission

The European Commission reiterated that the freedom of movement within the EU is non-negotiable, and criticized the proposals made by the Conservative British Prime Minister, David Cameron, with regard to changing legislation on the circulation of labor force. The president of the European executive, Jose Manuel Barroso, said that British legislation barring Romanian and Bulgarian citizens from working in Britain until 1 January 2014 borders on violating freedom of movement. In an interview with the BBC, European Labor Commissioner Laszlo Andor said that Cameron’s reaction was excessive and regrettable, and distorts reality. European officials made these statements after the British premier said in London that he plans to extend restrictions for Romanian and Bulgarian workers, and to make it harder for migrants to access social benefits. After Romania and Bulgaria joined the EU, several European countries slapped restrictions on the citizens of the two who wanted to work abroad. However, these restrictions, in compliance with standing European treaties, must expire irreversibly at the end of this year. Extending of these restrictions has sparked heated debates in the UK.

Cortina

And Romanian football teams get left behind in European competitions

The two Romanian football teams who were playing in European competitions, standing champions Steaua Bucharest and vice-champions Pandurii Tg-Jiu, failed to qualify for the European spring. Steaua drew a blank at home, nil-nil, against German side Schalke 04, in the fifth and next to last stage of the Champions League. With only 3 points, Steaua is now at the low end of its group, after Chelsea London, FC Basel of Switzerland, and Schalke 04. in the Europa League, Pandurii were thrashed in an away game by Ukrainian team Dnepr Dnepropetrovs, 4 to 1. The Romanian team has managed to gather only one point, in a group that it shares with Fiorentina from Italy and the Portuguese team Pacos Fereira.

The Romanian Government green-lighted the 2014 state budget

IMF, the European Commission and Romania’s economic development

Romania has met all economic performance criteria for September: the budget deficit target was met, and inflation dropped more than originally estimated. The announcement was made in Bucharest on Wednesday by the head of the IMF delegation, Andrea Schaechter, at the end of the first assessment of the new stand-by agreement signed this autumn. According to the IMF official, there has also been some progress in the absorption of European funds and structural reforms.

The good agricultural yield and exports prompted the IMF to improve Romania’s economic growth forecast from 2 to 2.2% for this year. In fact, the European Commission forecasts made public this week also indicate that Romania will achieve the third-highest growth rate in the Union this year, after Latvia and Lithuania. In terms of privatization, there are both positive and negative elements. According to the IMF, the initial public offer for 15% of the stock of Romgaz was a success. At the opposite pole, the failure of the attempt to sell the Freight Division of the Romanian Railway Corporation was a setback, but Bucharest stands by its commitment to continue the privatization process. Also under the “weaknesses” heading are the still low domestic demand and the budget revenues below the estimated level.

The state budget for 2014 — a test for the government

The public budget of Romania, as laid down in a bill by the Government, needs additional funds, given that 2014 will be a year with more expenses than usual, such as a planned increase of the national minimum wages, an adjustment of pension benefits and possibly the 5% lowering of contributions to the social security budget for employers.

So, at least in a first stage, next year royalties due to the state will be raised, new taxes will be introduced for certain types of buildings, and the petrol and diesel prices will increase. Although the business community fear that an increase in fuel prices will push all prices up, the National Bank estimates this will have a limited effect on inflation, which will not go up by more than 0.2%. On Thursday, the central bank significantly lowered its inflation forecast for this year, from 3.1 to 1.8%. The National Bank inflation forecast for next year was also lowered from 3.1 to 3%.

Teaching staff protests

Unhappy with the funds earmarked for education, thousands of teaching staff have this week taken to the streets to demand the allocation of at least 6% of the GDP and an increase in personnel expenses. The protesters also want the National Education Act amended to the effect that the quality of education and the involvement of teaching staff in decision-making should improve.

Teachers mention that EU countries earmark an average of 5.2% of their GDP to education, almost double the figure reported in Romania. Moreover, according to a Europe-wide survey, only secondary school teachers in Bulgaria are paid less than the ones in Romania. This is not the first time that teachers take to the street to express their discontent with the under-funding of the system. However, this time they threaten to resort to extreme measures, including a possible all-out strike.

Radio Romania, celebrated by the National Bank

The events occasioned by the celebration of 85 years since the establishment of Romania’s public radio station continued this week. On Monday the National Bank head offices hosted the launch of an anniversary package containing a medal for 85 years of the Public Radio Broadcasting Corporation, an anniversary philatelic album on Romania’s Golden Tape Library, and a CD with recordings of famous voices on Radio Romania. The governor of the National Bank, Mugur Isarescu, emphasized that the special ties between Radio Romania and the central bank go way back, and said, quote, “the public radio is a national asset and must continue to belong to the country.”

Success for Romanian tennis

Simona Halep, who has won six tournaments this year, is the best performing athlete of the year, said the Minister of Youth and Sports, Nicolae Banicioiu, after last Sunday the 22-year-old tennis player won the Tournament of Champions in Sofia and went up to the 11th position in WTA rankings. This prompted former champion Ilie Nastase to say that what Simona Halep has achieved it quite a performance.

Ion Tiriac, another great Romanian former tennis player said, in his turn, that “for the time being Simona Halep is only a very good tennis player. She hasn’t won the Wimbledon, the Roland Garros or the US Open. Will she? It’s possible, moreover, it’s very likely, if she remains focused,” Ion Tiriac said.

A new budget revision in Romania

The Romanian government approved the 2nd and last budget revision in 2013, which was a negative one. The move was required by the smaller than predicted budget revenues and the increase in expenses. Although cuts will be made on the budgets of most ministries and public institutions, PM Victor Ponta has said the revision will not affect the payment of pensions, salaries and social services. The finance minister Daniel Chitoiu has explained that the revenue collection targets for the July –September period were not reached and has expressed hope that the Fiscal Administration will do better in the last quarter of the year, after its regional and territorial reorganization. An Antifraud Division will start operating as of November, to counteract tax evasion. The government has also announced that it may consider the increase in the basic rate tax band in order to cover the difference between revenues and expenses.

Protests of the education trade unions

Education trade unions were on a work-to-rule strike from Monday to Wednesday. They asked the government to allot at least 6% of the GDP for the education system as of 2014, to change the education law and adopt a new salary law under which the salaries of beginning teachers should increase by 50% and of the other teachers by 15%. On November 6th trade unionists scheduled a large-scale rally. On Wednesday the trade union confederation Cartel Alfa protested in front of the government head offices against the current labor legislation, the minimum national wage and the lack of substantial social dialogue between trade unions and public authorities. Cartel Alfa has announced protests up until the end of the year.

Works on the American base in Romania started in Deveselu

Works started on Monday at the military base in Deveselu, in southern Romania, which will host elements of the American anti-missile defense shield in Europe, as part of the NATO anti ballistic missile defense system. At the ceremony, which was attended by Romanian, American and NATO officials, President Traian Basescu underlined that Romania thus joined the NATO member states that will provide a state-of-the-art solution for the protection of European and American citizens against the threat of ballistic missiles. The missile interceptors to be located in Deveselu are part of a larger-scale system, which includes complementary installations in another two NATO countries, Poland and Turkey. The installation will cost around 400 million dollars, allotted almost entirely by the Pentagon. Romania agreed to host elements of the American anti-missile defense shield based on a bilateral agreement concluded in September 2011. As many as 200 American soldiers and technicians will be stationed at the base in Deveselu, which will become operational in 2015.

The Insolvency Code was declared unconstitutional by the Romanian Constitutional Court

The Romanian Constitutional Court decided Tuesday that the government-issued emergency ordinance on the Insolvency Code was unconstitutional. Judges found that constitutional provisions have been infringed in the sense that there is no justification for the emergency of adopting this ordinance and that the government cannot pass legislation that affects the functioning of fundamental public institutions. The opposition believes that the new Code is an unprecedented attack against the freedom of the press and the business environment. However the government claims that the law is meant to efficiently fight tax evasion.

The annual EU Danube Strategy Forum was held in Bucharest

The Danube Strategy must be included in the operational programmes, so that it may receive European funding, the Romanian foreign minister Titus Corlăţean said in Bucharest, at the end of the second annual forum of the EU Strategy for the Danube Region. The European Commissioner for Regional Policy, Johannes Hahn, explained that the strategy includes 400 projects, worth around 49 billion euros, which will generate economic growth and will create new jobs. Attending the forum were officials for 14 states, 9 EU member countries and 5 non-members. The Danube Strategy was co-authored by Romania and Austria and was launched in April 2011.

Romanian prosecutors have dismantled the so-called “meat network”

In Romania, a prosecutor with the Prosecutor’s Office attached to the Supreme Court was placed under preventive arrest for 29 days, in a tax evasion case that reportedly caused damages of over 50 million euros. As many as 16 people were arrested in what the media dubbed “the meat network” scandal. According to the investigators, the suspects were coordinating a group of Romanian and Arab businessmen who had put together a large-scale mechanism to dodge taxes on their meat sales. As part of the case, a Social Democratic Senator is under criminal investigation for misuse of authority.

Radio Romania celebrates its 85th anniversary

On November 1st, Radio Romania celebrated 85 years of existence. On this occasion, the public radio broadcaster organised an Open Doors Day, and the Radio Concert Hall hosted special events the entire week. November 1st was also the 85th anniversary of the Radio Romania Orchestras and Choirs, because the National Radio Orchestra was established the same year as the public radio, in 1928, at the initiative and under the leadership of musician Mihail Jora. The public radio is one of the few companies in the country with decades of uninterrupted activity. The Romanian public radio launched its international programmes in the 1930s.

The Romanian Prime Minister Ponta paid a visit to the US

The Romanian Prime Minister has this week paid an official visit to the United States, where he met with Vice-President Joe Biden, but also with representatives of several big US companies. Victor Ponta pointed out that energy independence was a strategic objective for Romania, and the Romanian Government would support all explorations of unconventional resources, provided their subsequent development would not damage the environment. In another move, Victor Ponta told Vice-President Joe Biden that there would be no more constitutional crises in Romania, and the judiciary would no longer be involved in political disputes. In turn, the US official said that Romania’s success as a democratic partner and its strong rule of law are vital for the creation of a good business environment, and this serves the interests of both countries. He reasserted the US’s commitment to the strategic partnership with Romania and thanked the Romanian Prime Minister for this country’s constant participation in settling regional issues, including Afghanistan, and for hosting the anti-missile defense shield. He also highlighted Romania’s high development potential in the coming years, provided our country continued to develop a predictable and transparent business environment. Bilateral relations account for one of the most powerful guarantees for Romania’s security and for regional stability, said in his turn the Romanian President Traian Basescu. He also referred to the importance of American investments, with special focus on fields that have the potential to boost economic growth, such as IT, agriculture, food industry, car making industry and oil equipment.

The autumn proceedings of the European Council focused on the single telecommunications market

The autumn proceedings of the European Council, where President Traian Basescu represented Romania, focused on building a single telecommunications market and also on settling immigration related issues. The EU heads of state and government drafted a joint declaration, which reads that the single telecommunications market should be rendered operational in 2015. The declaration also highlights the importance of investment in research, innovation and staff development in the IT sector, where over 900 thousand jobs could be taken by 2015. In another move, France and Germany drafted a joint proposal to start talks with the US, with the aim of reaching an agreement regarding the activities carried out by secret services. The proposal came out as a result of the recent disclosures according to which the US intelligence service allegedly monitored German Chancellor Angela Merkel’s phone conversations, as well as other millions of calls from France.

A joint IMF, EC and WB mission came to Bucharest to a assess a new precautionary agreement

A joint IMF, EC and WB delegation is in Bucharest to assess the new precautionary agreement with Romania. The delegation is having meetings with the authorities as well as with representatives of political parties, trade unions, business associations, banks and civil society. In September, the IMF board approved the letter of intent submitted by the Romanian authorities for the conclusion of a new precautionary agreement, worth some 2 billion Euros and covering a period of two years, adding to another two million Euros from the European Commission.

The largest gas producer and provider in Romania, Romgaz, is now traded at the Bucharest and London stock exchanges.

Starting Tuesday until the end of the month, 15% of the shares in the largest gas producer and supplier in Romania, Romgaz, are up for sale at both the Bucharest and the London Stock Exchanges. The Romanian Government hopes to get between 300 and 400 million Euros in exchange for the stock. 15% of the shares are reserved for small investors, and the rest is to be sold to institutional investors. Romgaz owns more than half of Romania’s gas reserves and exploitation facilities. On June 30th 2013 the company reported net reserves of 62 billion cubic meters of gas and another 13.1 million cubic meters in potential reserves.

Another communist torturer in Romania was officially charged with genocide

A former commander of a communist labour camp in Romania has been officially indicted for genocide, for his role in the killing of over 100 political detainees. Aged 85, Ioan Ficior ran the Periprava camp in the Danube Delta between 1958 and 1960. There, according to the Institute for the Investigation of Communist Crimes, he implemented an abusive and repressive system against political detainees. Ion Ficior is the second head of penitentiary accused of genocide in Romania.

Romania is back into the European and World football elite

The decision has been made! Romania’s national football team will be taking on Greece, in the qualifying playoffs of next year’s World Football Championship in Brazil, according to the drawing of lots was held in Zurich this past Monday. The first leg is scheduled on November 15th in Greece, while the return leg will be played in Bucharest on November 19th. In another development, Romania’s football champion squad Steaua Bucharest this past Tuesday were held to a 1-all draw on home turf by Swiss side Basle, in a group E game counting towards the Champions League’s stage. Steaua are bottom of the table, with only one point on their record sheet, in a group where London giants Chelsea and German strongholds Schalke 04 call the shots. In Thursday night’s game counting towards Europa League’s third round, another Romanian team, Pandurii Tg Jiu were trashed by Italian side Fiorentina, 3-nil, in the competition’s Group E match.

New tensions emerge between the Romanian President and Prime Minister

The cohabitation agreement between the Presidency and the Government of Romania has been discussed this week by the foreign minister Titus Corlatean, justice minister Robert Cazanciuc and two presidential advisers. The meeting came after President Traian Basescu said Prime Minister Victor Ponta breached a former agreement in areas such as foreign policy, the independence of the judiciary and the rule of law.

The outcome of the talks was summarized by Minister Cazanciuc: “In my opinion, these talks were a model of institutional dialogue, in which each party expressed its own assessment of how this agreement has worked so far. It was essentially a meeting where we agreed that we must carry on with the agreement and that solutions must be identified in this respect.”

After the legislative elections held last December, and won by the Social-Liberal Union, president Traian Basescu and prime minister Victor Ponta, who are political opponents, signed a cohabitation pact. But the frozen conflict between the two threatened to break open again, with the president even warning that he might abandon the agreement with the prime minister. Victor Ponta argued, however, that the pact is necessary, if Romania is to avert a political crisis.

The European report on Romania gets deferred

A report under the Mechanism for Cooperation and Verification, through which the European Commission assesses the reform of the Romanian judiciary, was initially due in December this year. Brussels decided, however, to postpone its release, most likely to January 2014. EU spokesman Mark Gray said early this week that the Commission received many notifications from various NGOs concerning the situation at the National Anti-Corruption Directorate sparked by the recent appointment of certain prosecutors.

He added, however, that the European Commission would not comment on individual cases. According to Mark Gray, the National Anti-Corruption Directorate has been mentioned in all the reports concerning the Mechanism for Cooperation and Verification published so far as one of the most efficient, independent and objective institutions.

The Commission has clearly expressed its position on various appointments and procedures in Romania, Mark Gray added, but it will not make comments on specific appointments or individual prosecutors. As always, the Commission will look at the overall situation of the National Anti-Corruption Directorate, Mark Gray said.

The EU allots development funds to Romania

Also in a European context, PM Ponta presented in Parliament the partnership agreement between Romania and the European Union on the multi-annual financial mechanism for the next 7 years. In terms of the EU funds per capita earmarked for Romania for 2014-2020, Romania stands at a disadvantage compared to other countries, Ponta says.

He added that the money would primarily be used for narrowing the gaps between the country’s various regions and counties. The prime minister also mentioned that the EU absorption rate has tripled since the European Commission resumed payments under various operational programmes, previously suspended because of money management problems. In fact, on the very day when the multi-annual financial mechanism was presented in Bucharest, Brussels announced the unblocking of the operational programme aimed at improving competitiveness, which is a major area of interest in the 2014-2020 period, alongside infrastructure, resources, administration and governance.

Romania’s foreign minister makes a visit to London

Romanian and British authorities will work together to prevent possible infringements of the right to free movement of labour within the EU. This topic was discussed on Thursday in London by the Romanian foreign minister Titus Corlatean and his British counterpart William Hague. Ahead of the lifting of employment restrictions for Romanian workers in the UK, on January 1st, 2014, the two officials acknowledged the positive contribution of the Romanians working in the UK to the growth of the British economy. Some British publications reported that many Romanians consider moving to Britain to take advantage of the country’s welfare system.

Moreover, this summer a Home Office campaign urged illegal immigrants to return to their home countries. Posters displaying a picture of handcuffs read: “In the UK illegally? Go home or face arrest!” The campaign prompted Romania’s ambassador to London Ion Jinga to write in an article for huffingtonpost.co.uk that the life and reputation of the Romanians who work in the UK are damaged by misleading statistics and scaremongering from the politicians and the media.

A new forestry code is to be endorsed in Romania

A new forestry code has been passed by the Government and is to be subject to an emergency debate in Parliament. The urgency of the matter became clear after Romania lost close to 400,000 hectares of forest since 1989, with losses amounting to over 5 billion euros. Flawed management and excessive harvesting have nearly destroyed Romania’s forests. To curb the phenomenon, the new forestry code lays down tougher penalties for lumber theft, and incentives for the forest owners who will not cut down the trees.

The delegate minister for waters and forestry, Lucia Varga: “Forestry authorities are worried they will have to allot additional funds from their budgets, but they will get some of this money back from the sale of forestry certificates. This will provide them with sufficient funds to ensure the security of forests and purchase the necessary equipment. As far as private owners are concerned, they will receive incentives not to cut their forests amounting to up to 200 dollars per hectare.”

Wood will no longer be sold at the site, in the forest, but from designated sites and only after being measured and cut.

Romania and the Schengen area

Romania’s road to the passport-free travel area is fraught with many obstacles. Romania and neighbouring Bulgaria have been waiting for the green light to join Schengen for more than two years. Some EU Member States however seem reluctant to say yes to their accession, pointing to insufficient progress in the fight against corruption in the two countries. This week French Minister of Foreign Affairs Thierry Repentin said Romania and Bulgaria would more than likely not join Schengen due the negative European Commission report on progress in the two countries judiciary systems, which he believes to be negative. Moreover, numerous French politicians, both in the ruling coalition and in opposition, have complained about Roma people with Romanian citizenship currently residing in France. They have argued the Roma have no wish of integrating into society and fear they might see more waves of Roma coming their wave once Romania is given green light. Vice chairman of Romania-France Friendship Group Pierre Dufau believes that Roma integration should not be linked to Romania’s accession to the travel free area. Besides, Romania and France are bound by a strategic partnership, in which Paris authorities have expressed their support for Romania’s efforts to join Schengen. Romanian Foreign Minister Titus Corlatean argues the terms of the partnership compel the two countries to mutual support.

Vm Track: “The strategic partnership and roadmap signed with the French Prime Minister in Paris several months ago includes a common objective — supporting Romania in its efforts to join Schengen — as well as other political, strategic, economic and cultural objectives, and such a strategic partnership is upheld through reciprocity. If the terms of the partnership don’t go both ways, we should be learning about this from official communication channels, not from the French media”.

Deadlock continues over the gold-mining project in Rosia Montana

This week the deadlock surrounding gold-mining project in Rosia Montana continued. The estimated 300 tonnes of gold in Rosia Montana is reportedly the largest gold deposit in Europe and the third-largest in the world. Antagonists say the project would have a negative impact on the environment due to its cyanide-based extraction methods and result in the destruction of the area’s historical remains. On the other hand, supporters of the project argue the project would make more jobs available for the unemployed in Rosia Montana. The special Parliament committee has been conducting hearings of all parties involved. Romanian Intelligence Service Chief George Maior says Rosia Montana is a matter of national security, although he argues neither in favour nor against implementing the project. In turn, representatives of the Canadian investor say the project would bring in economic benefits, it would make the environment cleaner and capitalize on the area’s cultural and archeological heritage.

A wave of extreme weather hits Romania in early October

A wave of unusually cold temperature was reported in Romania this early October. The first day of October in Bucharest was the coldest reported in the last 80 years. On October 1st, people in Bucharest shivered as the maximum temperature stood at 7 degrees Celsius. Heavy rains and strong win was reported in the south, flooding households and streets, causing blackouts, ripped off roof tops and damaged scores of cars. In the south and in the mountains rain mixed with snow and disrupted road traffic. Several international and national trains reported significant delays.

The National Bank of Romania lowers its monetary policy interest rate, from 4.5 to 4.25%

As of October 1st, the National Bank of Romania has lowered its monetary policy interest rate for the third consecutive time to a minimum low. The key interest rate was lowered from 4.5 to 4.25% per year. The measure is aimed at strengthening national currency loans. For the time being however, the anticipated effects are slow to appear, while commercial banks are harshly reprimanded for not complying with the recommendations of the National Bank and cut back on loans in the national currency. Moreover, Central Bank Governor Mugur Iasrescu argues that instead of lowering interest rates for loans, commercial banks have lowered interest rates for deposits.

The first edition of the Grand Prix Nova International Radio Drama Festival, organized by the Romanian Broadcasting Corporation

Over 50 productions from 22 countries enlisted in the first edition of the Grand Prix Nova International Radio Drama Festival, organized by the Romanian Broadcasting Corporation under the High Patronage of Princess Margaret of Romania. The festival marked Radio Romania’s 85th anniversary, celebrating on November 1st the first public radio broadcast in Romania. The first radio play was broadcast in Romania in February 1929.

Romanian football teams compete in European competitions

Romanian football team Pandurii Targu Jiu on Thursday drew 1-all against Paços de Ferreira of Portugal away from home, in a match counting towards Group E of Europa League. Fiorentina of Italy ranks 1st in the group tables with 6 points, followed by Dniepr Dniepropetrovsk of Ukraine with 3 points and Pandurii and Paços de Ferreira, each with 1 points. On Tuesday, Romanian football champions Steaua Bucharest lost 4-nil to Chelsea London on home ground in a match counting towards Group E of Champions League. Schalke 04 of Germany tops the standings with 6 points, followed by Chelsea and FC Basel with 3 points each and Steaua with no points.

Developments in the Rosia Montana case

The controversial draft law regarding gold and silver mining in Rosia Montana, in central Romania, is still in the focus of Romanian public attention. Prime Minister Victor Ponta believes that Romania should green light the project and benefit from the advantages it entails, provided the environment is protected. The special parliament commission on Rosia Montana has continued hearings in Bucharest, and some of its members traveled to the area on a fact-finding mission. The bill, which would allow a Canadian company to exploit silver and gold ores using a cyanide-based technology, triggered large-scale protests in Bucharest and elsewhere in Romania and abroad. Protesters have warned about the negative impact of that technology on the environment. On the other hand, though, the supporters of the project say that mining in the area would solve major social and economic issues.

The stray dog law was promulgated by the President of Romania

The Romanian Constitutional Court has given the green light to the stray dog law, in the form in which it was adopted in Parliament on September 10th, ruling that the law does not contain unconstitutional provisions. The law was also promulgated by the Romanian President Traian Basescu, triggering discontent among animal activists. The law was brought to parliament under an emergency procedure and passed immediately, after a four year old boy was killed by stray dogs near a park in Bucharest. Under the new law, dogs can be euthanised if they are not claimed or adopted within 14 working days, during which time they are kept in shelters. Still, euthanasia is not compulsory, and local authorities may decide to keep them in shelters indefinitely, if they have the necessary resources.

Romania and the Common Agricultural Policy

In Brussels, EU officials reached an agreement on the Common Agricultural Policy for the coming years. The document contains clear provisions regarding the money that the EU member states, including Romania, may get from the agriculture budget and the level of subsidies for farmers until 2019. Also, EU countries will be able to provide more support to disadvantaged areas and young farmers will be encouraged. The agreement also provides for a lower contribution of the EU Member States to the programs co-funded from European funds. The Romanian Agriculture Minister Daniel Constantin says the decisions made under the agreement are good.

Daniel Constantin: “It is good that the EU funding rate was increased from 75% to 80%, because this translates into a smaller effort on the part of the Member States. Therefore, the money we have in the national budget can go to other investments, and contribute with only 15% as co-funders. It is also possible, as long as Romania has an international agreement with the IMF and the EC, to increase the co-funding rate to 95%.”

In another move, minister Daniel Constantin said his ministry envisages measures to support Romanian milk producers, after the elimination of milk quotas in the EU, starting 2015.

France claims Romania and Bulgaria do not meet the necessary requirements to join Schengen on January 1st 2014

Romania expects France to act in the spirit of bilateral strategic relations, and to take into consideration the fact that Bucharest meets the Schengen accession requirements. The statement was made by the Romanian Foreign Ministry, after the French Government stated it opposed Romania’s and Bulgaria’s joining Schengen on January 1st, 2014. The French authorities say the two countries do not meet all the conditions for their accession to the free-movement area. Bucharest has stated that there is no connection between the issue of Roma integration and Romania’s Schengen accession, and has called on Paris to avoid bringing such issues into the electoral debate.

Romanian Sorin Ducaru is appointed the new head of the NATO Emerging Security Challenges Division

Romania’s Ambassador to NATO, Sorin Ducaru, is the new head of the NATO Emerging Security Challenges Division. This is the highest office held by a Romanian within NATO. Sorin Ducaru has presented the major issues he will focus on, including the fight against cyber-crime and terrorism, energy security, NATO’s nuclear policy and preventing the proliferation of weapons of mass destruction. The division was set up in 2010 with the aim of solving security threats against the Alliance. A diplomat by trade, Sorin Ducaru was for seven years the head of the Romanian diplomatic mission to NATO, Romania’s ambassador to the US and the UN.

The Rosia Montana project is submitted to Parliament for debate.

A special parliamentary committee meant to analyse the project of exploiting the silver and gold ore in Rosia Montana, central Romania, will be set up in Romania. The announcement has been made by the Senate Speaker, Crin Antonescu, fresh from the talks he has had with Prime Minister Victor Ponta. The Speaker of the Romanian Senate has also announced the emergency procedure regarding that controversial project, initiated in Parliament, will be withdrawn. The Canadian company, which holds the exploitation licence, has announced it will ask for huge damages from the Romanian state, if the exploitation as such does not receive the green light from parliament. The project has stirred tensions both within the centre-left ruling coalition, the Social Liberal Union, and at society level. Some 20 miners who militate for the resumption of mining activities at Rosia Montana, blocked themselves in the underground. In exchange, protests against the project have been staged in Bucharest and other big cities across the country for two weeks now. Ecologists and NGOs draw attention that the cyanide-based technical exploitation process runs the risk of irreversibly affecting the environment.

A law on stray dogs has been adopted by Parliament.

The Romanian Parliament has adopted a law which authorises the euthanasia of stray dogs, a solution which is actually backed by the majority of the population. The law stipulates that a stray dog can be claimed and adopted, free of charge, within 14 working days. At the end of this period, the local authorities can decide whether they extend the stay of the dogs in shelters or, in the absence of financial resources, euthanize the animals. This is not the only, but the ultimate solution. Only aggressive dogs and those incurably ill are euthanized right away. Furthermore, those who take the animals out of shelters should sign a declaration, committing themselves to observing all care and feeding norms. In case they don’t want to keep the dogs any longer, they should hand over the animals to the authorities. Parliament has adopted the law against the backdrop of heated public debates after a four-year old boy who was bitten to death by stray dogs, near a park in Bucharest. It is estimated that approximately 65,000 stray dogs are roaming the streets of Bucharest.

Romanian labour minister visits Belgium and the Netherlands.

Romanian labour minister Mariana Campeanu has recently visited the Netherlands and Belgium ahead of the opening of these countries’ labour markets to the Romanian workers on January 1st 2014. The Romanian official attended a high-level meeting on the free movement of labour in the EU staged by the Dutch ministry of Social Affairs and Employment in the Hague. Officials of the two countries have agreed to find solutions, to make sure that the opening of the labour market will not create problems. Then Romania and Belgium signed a bilateral cooperation agreement in the field of work and social protection. Mariana Campeanu said the agreement was aimed at preventing illegal employment and any discrimination against the Romanians who work in Belgium.

After the EU entry of Romania and Bulgaria in 2007, the citizens of these two states were temporarily denied access to certain EU countries, including Belgium and the Netherlands. These restrictions are to be automatically and irrevocably lifted on December the 31st 2013.

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Romania has signed a new agreemnt with the IMF.

The Romanian government has sent a letter of intent to the International Monetary Fund for a new precautionary agreement. The authorities in Bucharest and the IMF and the European Commission delegation reached a technical agreement in July over the new precautionary accord of four-billion euros due to span over two years. The stand-by agreement is to be analyzed by the IMF board this autumn. Prime Minister Ponta said the only tax rises agreed upon as part of the new accord are increased excises for luxury products, aimed at offsetting the VAT deduction for bread, as well as the payment of health insurance by individuals who get income from rents. Next week, the Prime Minister is to brief Parliament on the new stand-by agreement with IMF.

Another wave of flooding sweeps over Romania.

Several people are reported to have lost their lives, while hundreds of others have been evacuated from some regions affected by heavy rainfalls and flooding in southeastern Romania. According to the authorities, hundreds of households in Galati county have been devastated by floods, while those evacuated from this region have been provided provisional shelter in schools and other buildings outside the affected areas. 8 counties in the east and southeast of the country have been affected by heavy rainfalls, which, in some areas, have reached record levels.

Romania has blown its chances of qualifying for World Cup 2014

Romania’s national football side has wasted its chance of qualifying for the World Cup playoffs after a two-nil home defeat against Turkey. The result has pushed Romania on the fourth position in the group’s standing. We recall that a three-nil win against Hungary, a couple of days before, had placed Romania on the second position in the standings. Now Romania depends on the results the Netherlands, which has already qualified for the World Cup, will obtain against Hungary and Turkey. Romania’s last participation in a World Cup was back in 1998.

A new parliament session starts in Bucharest

The Romanian Parliament has resumed activity after the summer holiday. The senators and deputies who are members of the ruling Social Liberal Union say the priorities of the new session is the adoption of the new Constitution and the referendum law. The Romanian MPs also intend to amend the law regarding development regions. The main party in the opposition, the Liberal Democratic Party, says it has already submitted to Parliament a draft law regarding the creation of the Authority for the Protection of Investors, whose main goal would be to ease the burden of taxation. Among the proposals included in the draft are the lowering of the flat tax to 12%, a 5% decrease in health insurance contributions, tax exemption for reinvested profit used for recapitalisation and increasing the minimum wage to reach around 224 euros. The 2014 state budget and the country’s administrative decentralisation are the priorities of the Democratic Union of Ethnic Hungarians in Romania, who also want the education law to be maintained in a form that would not affect education in the mother tongue of ethnic minorities.

People in Bucharest and across the country have protested against mining in Rosia Montana

Many people have protested, both in Bucharest and across the country, against the mining project in Rosia Montana, central Romania, following Prime Minister Victor Ponta’s decision to submit the draft law on the subject for approval by Parliament. Ecologists are opposed to the cyanide-based extraction method saying it entails the major risk of irreversible pollution of the environment. Also, historians say that mining would destroy historical vestiges unique in the world. The opposing argument is that the project would develop the area, create new jobs in a part of the country facing severe unemployment and that the direct benefits for Romania would translate into 5 billion dollars. The Prime Minister has explained that he had to approve the new draft law, because otherwise the Romanian state would have to pay over 2 billion dollars worth of damages to the companies involved in the project. Victor Ponta has also said that the draft was submitted to parliament to ensure fair and transparent debates.

The killing of a four-year-old by stray dogs in Bucharest stirs fierce debates

The death of a four-year-old boy, ripped by stray dogs in Bucharest, has triggered reactions both among the public opinion and the authorities in Romania. Following this tragedy, decision makers are willing to take action, such as debating next week in Parliament a law on stray dogs, a referendum and a large-scale campaign aimed at gathering and euthanizing dogs that do not have owners. Romania’s president Traian Basescu believes an emergency ordinance is necessary to provide specifically that dogs which are not adopted within a set period of time, must be euthanized. There are some 65,000 stray dogs in Bucharest alone.

The Romanian Transport Ministry signs the contract for the privatisation of the freight division of the Romanian Railway Company

Early this week, the Romanian Transport Ministry signed with the Romanian Railway Group, a company run by the Romanian businessman Gruia Stoica, the privatisation contract of the Freight Division of the Romanian Railway Company. In June, the group was awarded the contract for the privatisation of this state-owned company, offering 202 million euros for 51% of the shares. Moreover, the group committed itself to making over 200 million euros worth of investment. The privatisation of the Freight Division, a company with huge losses, is one of the measures that the Romanian Government committed itself to in the precautionary agreement signed with the International Monetary Fund, the European Union and the World Bank in 2011.

After 23 years, Romanian prosecutors work on a case of genocide

The former chief of the prison in Ramnicu Sarat during the communist regime, Alexandru Visinescu, now aged 88, has been indicted for genocide. He is the first Romanian accused of crimes against humanity after the former dictator Nicolae Ceausescu. Early this week, Visinescu went to the Prosecutor’s Office to be heard in the case in which the Institute for the Investigation of Communist Crimes in Romania accused him of involvement in the killing of political detainees between 1956 and 1963. Many of the prisoners held there died because of the tough treatment Alexandru Visinescu subjected them to. Visinescu is one of the 35 communist torturers identified by the Institute.

The George Enescu Festival is underway in Bucharest

The capital Bucharest and other cities in Romania are hosting the 21st George Enescu International Music Festival, one of the most prestigious in Europe. Over 150 events make up this year’s edition, which, organizers say, is a unique cultural mix. Classical music fans thus have the opportunity to enjoy many concerts, recitals, opera and ballet performances, conferences and workshops. The George Enescu Festival, held once every two years, was set up in 1958, as a tribute to the composer George Enescu.