Category: The Week in Review

Izvorul Muresului, the meeting point of the Romanians around the world

Every August, Romanians around the world get together at a Summer Camp hosted by Izvorul Muresului, in central Romania, to tackle issues they are facing in their countries of residence. Attending the Summer Camp which has reached its 11th edition this year were leaders of Romanian organisations living near the borders of the country and the Balkans (Bulgaria, Serbia, Hungary, Ukraine and Albania), as well as representatives of the Romanian diaspora in Italy and France. They called for support from the Romanian state in order to maintain their national identity and get some rights, as ethnic minorities, in the countries they are living in. Romania’s President Traian Basescu gave assurances that Bucharest can finance programs meant to help people regain the Romanian identity and spirit, but he equally launched an appeal for solidarity among his co-nationals living outside the borders of the country, for Romania to be able to efficiently support them. “We want the countries neighbouring Romania to treat ethnic Romanians just like we treat the ethnic minorities in Romania, granting them the right to keep their language, culture and the right to be automatically elected to Parliament.” — The Romanian president underlined, referring implicitly to neighbouring Hungary, after Budapest politicians have recently made controversial declarations.

Romania and Hungary exchange tough responses

A speech delivered by Gabor Vona, the leader of Hungary’s far-right party Jobbik, has stirred waves on the Romanian political scene. In a nutshell, the message was the following: Hungary has the obligation to support the ethnic Hungarians living in Romania to obtain autonomy based on ethnic criteria and added that Jobbik will defend their rights and interests, even assuming responsibility for a conflict with Romania. The Romanian government has firmed condemned Gabor Vona’s declarations, and President Traian Basescu underlined:

Traian Basescu: “There are several countries which are already annoyed by the aggressive policy pursued by Budapest as regards the ethnic minorities. Romania has showed reservation so far, but we believe that things have reached the point where our reservations should be left aside and Budapest should be set straight.“

The tough words uttered by the president surprised many both in Hungary and Romania, where the leader of the Democratic Union of Ethnic Hungarians in Romania, Kelemen Hunor, said:

Kelemen Hunor“ When the head of state makes such a declaration, it means that things get complicated and we don’t need such a thing, especially when it comes to Romania and Hungary, or the Romanian-Hungarian relations, but such outbursts, like that of Vorona’s or any other similar statements should be condemned.”

Romania’s administrative regionalisation process will be carried out on a European basis and not on ethnic criteria, Romanian foreign minister Titus Corlatean made clear, also adding that autonomy-based models are accepted, neither in Romania, nor in Europe.

Good news for the Romanian and European economies.

Romania’s GDP went up in the second quarter as opposed to the first by 0.3%, according to the National Institute of Statistics, with economic growth gauged at 1.7% as against last year’s similar period. Earlier, the National Bank had adjusted its expectation for growth this year to over 2%, based on the evolution of exports, industrial output and a good farming year. Also, the IMF upped its economic growth forecast for Romania, from 2% this year to 2.25% next year. According to the European Statistics Office, EUROSTAT, the European Union and the 17 countries in the Eurozone came out of recession in the second quarter, with 0.3% growth as opposed to the first quarter. This comes after a year and a half of economic downturn, the longest since the adoption of the Single European Currency, the Euro, in 1999.

Lawsuit against the perpetrators of the “Theft of the Century”

The trial of the Romanians involved in the stealing of seven paintings from the Kunsthal Gallery in Rotterdam, which started on Tuesday, has already been postponed until September 10th, because of procedural flaws. The paintings stolen from the Dutch Museum in October 2012, signed among others by Matisse, Gauguin and Monet have not been burnt, and the six Romanians accused of stealing them are ready to return them to the Dutch authorities, the defense attorneys have announced, without saying anything about the whereabouts of the artworks. They have said, however, this is an aspect of the confidentiality procedures. Lawyer Catalin Dancu has said he will contest the forensic report issued by the team of experts from the National Museum of Romania. Experts analysed ashes found in the stove belonging to the mother of the gang leader and said it contained remnants of old pigments, nails and a tack. This has raised suspicions that she might have burnt down the paintings. Lawyer Catalin Dancu:

Catalin Dancu: “By contesting this report, I will require that all these pieces of evidence be sent to the Louvre in Paris, which is well known across Europe, for having the best and most credible forensic laboratory, to identify or not the existence of ashes resulting from burning down those paintings, in their entirety.”

“Scent of blackmail in the paintings robbery trial”- the newspapers issued in Bucharest headlined, the defendants calling for shorter sentences in exchange for returning the paintings. The defence attorneys went even further, showing that part of the blame lies with the Dutch museum, equipped with a weak security system.

Romania shows concern about the situation in Egypt

The Romanian Foreign Ministry has joined the international community in deploring the escalation of violence in Egypt, in recent days, which left hundreds of dead and thousands of injured. The Romanian diplomacy follows with concern the developments in that country, deplores the loss of human lives and material damage and back the European Union’s appeal to the two sides to show restraint in order to resume the political process of democratic transition. The Romanian Foreign Ministry has also recommended to those willing to travel to Egypt or who are already on Egyptian soil to completely avoid the areas situated in the proximity of the headquarters of the main governmental institutions and political parties, which are usually the stage of protests and to avoid getting involved in any type of rally. The Romanian Embassy in Cairo, which keeps contact with the Romanian citizens in Egypt, is ready to take action to grant them protection, if need be, depending on the situation.

The Romanian Central Bank cuts the monetary interest rate and lowers the inflation forecast

This week, the National Bank of Romania has reduced the monetary policy interest rate from 5% to a record low of 4.5%, thus exceeding the expectations of analysts who were only thinking of a 0.25 % drop. According to the Central Bank Governor Mugur Isarescu, the decision was made in order to boost loaning. The Governor hopes that starting September this drop will reflect into the interest rates charged by banks. Isarescu has stated that the National Bank will do its best, using the tools available to it, to make sure that interest rates for loans in the national currency get as close as possible to the rates on foreign currency loans, so that bank clients may choose to borrow lei and thus reduce the risks related to exchange rate variations. Also this week, the Central Bank has lowered the inflation forecast for 2013 and for next year by 0.1%, to 3.1%. The quarterly inflation report points to a stronger disinflation process for the forthcoming period and an accelerated economic growth. The economic growth forecast for this year has been upgraded to 2%, thanks to export growth, a good industrial output and a good agricultural year.

The National Statistics Institute comes up with fresh data regarding salaries and consumption in Romania

According to data made public by the National Statistics Institute, in Romania the average salary dropped in June 2013 by 0.3% as compared to the previous month, standing at approximately 365 Euros. The biggest salaries were reported in the oil and gas industry — some 900 Euros — and the lowest in the hospitality sector — 200 Euros. State employees benefited from a slight increase in their salaries as compared to the previous month, more specifically 0.2% in public administration, 0.6% in health care and social security. In the education system, however, salaries dropped by 1.6%, due to the fall in the number of additional teaching hours because of the summer holiday. General consumption also dropped in the month of June, as people bought less fuel, food, alcohol and tobacco.

Scorching heat affects half of Romania

The entire week, the western half of Romania has been under alert for extreme heat. The highest temperatures reached 37-40 degrees Celsius, and thermal discomfort has been severe. In the capital city Bucharest and 18 counties in the south, south-west and center, the highs have been only 2-3 degrees lower, and the temperature — humidity ratio exceeded the critical threshold of 80 points.

Another Romanian battalion travels to Afghanistan

Early in the week, the Romanian 151 Infantry Battalion the Black Wolves returned to the Zabul province in Afghanistan for a fresh 6-month mission. They replaced their colleagues in the 32nd battalion, known as the Yellow Scorpions. It’s the Blacks Wolves’ third mission to that country. The Romanian soldiers will defend the security of Zabul, where Taliban attacks are reported on a daily basis, and will ensure the protection of humanitarian convoys. There are 1254 Romanian military deployed in Afghanistan.

The Romanian Village of Sfantu Gheorge plays host to the Anonimul Independent Film Festival

The 10th Anonimul International Independent Film Festival started on Friday in the village of Sfantu Gheorghe, in the Danube Delta. For 10 days, the audience will be able to watch over 100 films from France, Russia, Canada, Spain, Egypt, Italy, Portugal, Switzerland, Germany, Ukraine, the US, Serbia, Great Britain, Luxembourg, Iran, Argentina, Poland, Brazil, Israel, Moldova and Romania. There are 7 feature films and 40 short-reels competing for the title of best film. The guest of honour this year is Hungarian Oscar winning director Istvan Szabo, who will be awarded the Anonimul lifetime achievement trophy. The 10th edition of the festival was opened by “The Grandmaster,” directed by Wong Kar Wai, the film that also opened the Berlin festival. The last film to be screened will be Romanian director Valentin Hotea’s debut film Roxanne.

Four Romanian football squads have qualified for the European football cups play-offs

All Romanian teams proved their mettle in the European football competitions as they booked their tickets for the group stage play-off sessions. Romanian champions Steaua Bucharest made headway into the Champions League’s playoffs, after eliminating Dinamo Tbilisi from Georgia. In the Europa League Astra Giurgiu, Pandurii Targu Jiu and Petrolul Ploiesti have also moved forward, after defeating AS Trencin from Slovenia, Hapoel Tel Aviv from Israel and Vitesse Arnhem from the Netherlands respectively.

In the line up:

Romania’s President Traian Basescu summons the Higher Defense Council
Romania to sign a new precautionary agreement with the IMF and the European Commission
The Romanian Government makes the first budget adjustment this year
A heat wave affects southern Romania
Several Romanian football teams played in the Europa League and the Champions League
“Child’s Pose” is Romania’s entry at the Oscars next year

Romania’s President Traian Basescu summons the Higher Defense Council

Romania’s President Traian Basescu on Friday summoned the Higher Defense Council to discuss the privatization of the Freight Division of the Romanian Railway Company, CFR Marfa, approved by the Government last week. In June, GFR, part of the Grampet Group, won the tender after offering to pay some 202 million euros for 51% of the shares in CFR Marfa. Also, GFR pledged to invest another 900 million lei, the equivalent of 204 million euros in the company and an additional 1.5 million euros in environmental protection. The Freight Division’s debts to the state budget have been erased as part of the privatisation process. On the Romanian freight transport market, the Freight Division of the Romanian Railway Corporation holds over 40%, while GFR has more than 30%. This is a 50-billion tons market whose value stands at 500 million euros.

Romania to sign a new precautionary agreement with the IMF and the European Commission

Romania has agreed on the terms of a new precautionary agreement with the international financial institutions. The new agreement, worth 4 billion euros, will cover a period of two years. Prime Minister Victor Ponta says the terms of the agreement will be presented to Parliament in September. He has added however that according to the new terms of the agreement, it is no longer compulsory for the Romanian authorities to privatize other state companies. He has also pointed out that the amount to be made available to Romania under the new agreement comes to confirm that the country’s credibility has improved, just like its crediting capacity. PM Ponta also underlines that the money will only be used in exceptional situations. According to the International Monetary Fund, Romania should focus on speeding up reforms, particularly in the energy and transport sectors and should strengthen the economic stability it has achieved so far. Going ahead with the reform of the healthcare system is another priority of the new economic program agreed upon with the international lenders. The new precautionary agreement is to be submitted to the IMF board for approval this autumn. This is the third agreement signed by Romania with the International Monetary Fund and the European Commission after the successful completion of two similar ones, signed in 2009 and 2011, respectively. The last one was completed in June 2013.

The Romanian Government makes the first budget adjustment this year

After getting the approval of its international lenders, the European Commission and the International Monetary Fund, the Romanian government has green lighted the first budget adjustment for 2013, against the positive revision of the economic growth rate from 1.6% to 2%. Therefore, the ministries of healthcare, regional development and justice and the National Anticorruption Directorate will receive supplementary funds while the budgets of the labour and transports ministries and of the Government’s General Secretariat will be severely cut. On Tuesday, the cabinet passed an ordinance under which the VAT for bread is reduced from 24% to 9%, as of September 1st. This could be an important step towards reducing tax evasion, says Prime Minister Victor Ponta, but producers need to cooperate in this respect. Fiscal pressure on the latter will drop, prompting the government to hope that lower taxes will encourage producers to pay their taxes to the state and thus increase the budget revenue collection rate. In order to compensate for the decrease in the VAT for bread, the government has approved an increase in excise duties for alcohol and introduced excises for luxury goods such as cars with high power engines, yachts, objects made of gold, watches and weapons. A new budget adjustment has already been approved for the end of October.

A heat wave affects southern Romania

A heat wave gripped southern Romania early this week. Thermal discomfort in this area was high, with thermometers reading 40 degrees Celsius and a temperature-moist index exceeding the critical threshold of 80 units. Tens of people were taken to hospital after having fainted in the street because of very high temperatures. Speed limits were set for trains circulating in the affected areas. The heat wave was followed by unstable weather throughout the country, with strong wind and torrential rain.

Several Romanian football teams played in the Europa League and the Champions League

Three Romanian football teams competed on Thursday in the Europa League third preliminary round. On home turf, the vice-champion Pandurii Targu Jiu and the Cup’s winner Petrolul Ploiesti took on the Israeli team Hapoel Tel Aviv and the Dutch Vitesse Arnhem, respectively. Both games ended 1-all. Astra Giurgiu won to the Slovak side Trencin 3-1 in an away match. Also in an away game, counting for the Champions League, Steaua Bucharest defeated the Georgian side Dinamo Tbilisi 2-nil. This victory considerably increased Steaua’s chances of making it to the competition’s play-off round.

“Child’s Pose” is Romania’s entry at the Oscars next year

“Child’s Pose”, directed by Calin Peter Netzer has been selected to represent Romania at the Oscars next year, in the best foreign film category. This feature film won several international awards among which a Golden Bear and a FIPRESCI at this year’s Berlin Film Festival. The film tells the story of a controlling mother’s relationship with her adult son. Calin Peter Netzer’s film is also a tale of corruption and guilt in modern Romania.

Prime minister Victor Ponta travels to Spain

The Romanian prime minister Victor Ponta travelled to Spain earlier this week for talks with his Spanish counterpart Mariano Rajoy. Talks focused mainly on ways to boost political relations, attract Spanish investors and protect and integrate the Romanian community in Spain, which makes up the largest ethnic community in this country. Bucharest and Madrid are involved in a number of joint projects and wish to develop new partnerships, said prime minister Ponta after meeting the Spanish prime minister. The two officials highlighted that in the first 6 months of the year trade relations between their countries grew by almost 15% compared to the same period in 2012. Prime minister Victor Ponta noted that the government in Madrid has given its full support to Romanian emigrants and that Romanians have never been the subject of discrimination policies or denigration campaigns in Spain. Before being received by the King of Spain, Juan Carlos, Victor Ponta met the representatives of the Romanian community in the Madrid area.

A joint International Monetary Fund, European Commission and World Bank delegation arrives in Bucharest

A joint mission from the International Monetary Fund, the European Commission and the World Bank arrived in Bucharest to discuss the possibility of a new precautionary deal with Romania. A previous agreement of a similar nature successfully came to an end in June. The international experts had talks with representatives of the economy and finance ministries, trade unions and the Association of Energy Utilities Companies, as well as with president Traian Basescu. According to the latter, the goals of the new agreement are macroeconomic consolidation, the salary law and the continuation of structural reforms. Another priority for Romania is finding a way to achieve and maintain economic growth as well as the creation of new jobs. The talks over a new agreement with the International Monetary Fund are based on an estimated GDP increase of 1.9% this year. Previously, the International Monetary Fund and the Romanian authorities had estimated a 1.6% increase this year and a 2% increase next year.

The privatisation of the freight division of the Romanian Railway Company reaches deadlock

The representatives of Romania’s international lenders also paid a visit to the government soon after the latter announced its decision regarding the privatisation of the freight division of the Romanian Railway Company. In June, the Romanian Railway Group, the largest private railway transport company in Romania and part of the Grampet Group, won the privatisation tender. Its bid stood at 202 million euros in exchange of 51% of the shares in the Romanian Railways’ freight division. The Romanian Railway Group also committed to investments worth 200 million euros. The privatisation deal could, however, be cancelled, unless approved by the country’s Supreme Defence Council, said the prime minister. Ponta explained that in the hypothetical event in which the Supreme Defence Council does not approve the privatisation, there is also a Plan B, which involves appointing a private manager and restructuring the company in order to make it profitable again. The next meeting of the Supreme Defence Council is scheduled for September, but, according to the spokesman for the president’s office, it is not the Council’s responsibility to issue privatisation approvals. In the meantime, trade unions have been accusing the authorities of doing little to rescue the company and ensure people’s jobs, and threaten to go on an all-out strike.

The Economist Intelligence Unit issues a report on Romania

The London-based country analysis and consulting business Economic Intelligence Unit says Romania will report a 2.4% economic growth this year and a 3.4% inflation rate by the end of the year. These results will be triggered primarily by a good crop year and an increase in exports to non-EU states. British analysts further estimate an exchange rate of 4.65 lei for the euro and 3.55 lei for the US dollar. Romania’s medium-term economic prospects are also looking good. The report indicates that between 2014 and 2017, Romania’s annual growth rate will increase, although it will not exceed 4%. Industrial output will also see a 3.6% increase in 2013. The London-based analysis firm also points out that in the event of a powerful external influence or a more serious recession in the Eurozone, Romania’s economic forecast for 2013 might be reviewed. The Romanians’ perception of the economic situation is stable, but according to the latest Eurobarometer, the number of those who gave positive answers remains low. The most difficult problems the Romanians say they have to face at present are the economic situation (44%), price hikes (35%) and unemployment (33%).

Romanian football teams have clinched good results in the European Cups

Three Romanian football sides — Petrolul Ploiesti, Pandurii Targu Jiu and Astra Giurgiu have qualified for Europa League’s third preliminary round after obtaining victories against Vikingur Gota from the Faroe Islands, Levadia Tallinn from Estonia and Omonia Nicosia from Cyprus. In the next leg of the competition, Petrolul takes on Dutch side Vitesse Arnhem, Pandurii will play Hapoel Tel-Aviv, from Israel, whereas Astra will be squaring up to Slovakian side AS Trencin. Romania’s champions Steaua Bucharest have outperformed Macedonian team Vardar Skopje to qualify for the Champions League’s third preliminary round, where they will play Georgia’s champions, Dinamo Tbilisi.

French Prime Minister Jean Marc Ayrault visits Romania

Romania wishes to relaunch its partnership with France, said Romania’s Prime Minister Victor Ponta after talks with his French counterpart Jean Marc Ayrault in Bucharest. Bilateral economic cooperation is remarkable, the French official also said. He reiterated his country’s support for Romania’s accession to the Schengen area. The topic of the Roma minority was another important subject on the agenda of talks between the French prime minister and the Romanian prime minister and president Traian Basescu. While Prime Minister Ponta said the main responsibility for the integration of the Roma lies with Romania, Jean Marc Ayrault promised France’s support for Bucharest to be able to provide decent living conditions to the Roma communities in Romania. The French official and his Romanian counterpart also visited the technical headquarters of the Dacia Renault plant in Titu, in southern Romania. The French company Renault is the biggest investor in Romania, accounting for 3% of the country’s GDP.

Romanias Foreign Minister Titus Corlatean travels to Moscow and Seoul

Recently characterised by a period of stagnation in the absence of top-level political dialogue, bilateral relations between Romania and Russia appear to be improving following the visit by Romania’s foreign minister Titus Corlatean to Moscow. His visit took place 10 years after the signing of a Romanian-Russian political treaty and is the first after Romania’s entry into NATO and the European Union. Russia views Romania as an important partner in south-eastern Europe, said foreign minister Sergey Lavrov after talks with his Romanian counterpart. The two officials also tackled the issue of the Russian gas. Romania wishes to eliminate intermediaries for its imports of gas from Russia so that gas prices could drop. A number of intergovernmental agreements were also signed in Moscow in the fields of culture, media, education and tourism and the creation of a Romanian Cultural Institute in Moscow and a Russian Cultural Centre in Bucharest. After Moscow, Titus Corlatean travelled to South Korea. The aim of his visit was to develop bilateral relations in the political, economic and cultural areas. He had talks in Seoul with South Korea’s prime minister Chung Hong-won, in particular about maintaining political dialogue and intensifying bilateral cooperation.

Moldovan and Romanian Prime Ministers holds talks in Bucharest

The prime minister of the Republic of Moldova, Iurie Leanca, paid a surprise visit to Bucharest, his first foreign visit after resuming office. He had talks with his counterpart Victor Ponta about the stage of bilateral relations and projects on energy interconnection and transport. The head of the government in Bucharest has reiterated Romania’s firm support for Chisinau’s European goals. The Republic of Moldova and the European Union have completed talks on an association agreement, including a free-trade area about to be signed in Vilnius in November. The visit to Bucharest by the Moldovan prime minister previews the upcoming talks between president Traian Basescu and senior Moldovan officials on the 17th of July in Chisinau.

The law amending the statue of MPs has come into force

The law amending the statue of MPs came into force on Thursday, after being signed into law by president Traian Basescu. As part of the most important amendments introduced by the new law, the Prosecutor’s Office no longer has to justify its requests for detaining, holding in temporary arrest and searching MPs, thus eliminating a provision under which MPs would have enjoyed a higher level of parliamentary immunity. The new law also restricts foreign trips and reduces the budget allocated to MPs for accommodation. There are also changes referring to the use and justification of expenses for the running of MPs’ offices. MPs now have to account for 50% of their allocated sum, as compared to a previous 46%.

The results of the Baccalaureate exam are made public

55% of the 187,000 high school graduates who entered the baccalaureate exam this year have passed the tests, compared to 43% last year. Incidents were reported at a number of schools across the country, including attempts at cheating. At the Dimitrie Bolintineanu High School in Bucharest, for example, the school’s head was arrested and over 100 children were heard by prosecutors.

The annual inflation rate meets the National Bank forecast

The annual inflation rate for the first 6 months of the year stood at 5.37%, according to the National Institute for Statistics. Consumer goods prices were relatively stable in June compared to May, as food prices dropped. At 1%, services costs saw the highest increase, followed by non-food products, while food products were cheaper by 0.7%. According to the National Bank of Romania, the inflation rate is expected to drop towards 3.2% at the end of 2013 and later reach a minimum of 2.4% in the first quarter of 2014.

Romanias football champions Steaua win the Super Cup title

Romania’s football champion Steaua Bucharest have won the Super Cup title, having defeated the Cup winner, Petrolul Ploiesti, 3-nil. In the European competitions, Steaua will play in the Champions League second preliminary round, while another Romanian team, Astra Giurgiu, will make their European debut in the Europa League second preliminary round. Pandurii Targu Jiu and Petrolul Ploiesti will also compete in the Europa League.

Romanian Prime Minister Victor Ponta visited China

Early this week, Romanian Prime Minister Victor Ponta visited China on the last leg of an Asian tour that also took him to Azerbaijan, Kazakhstan and Uzbekistan. In Beijing, Victor Ponta held talks with President Xi Junping and Prime Minister Li Keqiang and proposed that bilateral relation be raised at the level of a strategic partnership. The Romanian Prime Minister said Romania enjoys a geographical position that can help China in the latter’s efforts to develop ties with Central and East European countries.

According to Ponta, Romania is the doorway to a larger market, just like the Black Sea and the countries in the area can be a prospective corridor for Chinese products. From this point of view, the river Danube can be considered, with the participation of Chinese companies, a segment of a new 21st century silk road entering Europe through the European Union’s south-eastern gate. Victor Ponta has invited Chinese business people to invest in Romania and has announced a series of projects.

Victor Ponta: “It has been agreed to develop the activity in Romania of the two major telecommunications companies Huawei and ZTE and thus basically turn Romania into a regional European centre for these two companies. We can also make progress as far as energy investment is concerned. A Chinese project worth one billion dollars is already being developed in Rovinari. We have also presented a project on the third and fourth units of the Cernavoda nuclear power plant.”

The main request of the Romanian side was for the Chinese authorities to step up verification procedures with a view to opening the Chinese market for Romanian foodstuffs and produce, particularly meat and Romanian wines”.

The number of people living in Romania has decreased by over 1.5 million

In October 2011, Romania’s stable population stood at 20,121,641, which is over 1.5 million people less than when the previous census was conducted. This is the final result of a 2011 census made public by the National Institute of Statistics on Thursday.

The president of this institution, Tudorel Andrei, has further details: “Migration has contributed to the largest extent to the decrease in population. 77% of this decrease was caused by migration abroad. Additionally, we are all aware of the fact that, during this period, even though life expectancy has increased, the birth rate has decreased considerably.”

Other data show people living in an urban environment account for some 54% of the total population. The census also indicates that women form the majority, accounting for 51% of the population, over half of them being married. Most Romanians, over 55%, are in the 25-64 age bracket.

The data made public by the National Institute of Statistics have brought back into focus the issue of the validity of a referendum held last summer, when the centre-left coalition in power unsuccessfully tried to impeach the centre-right head of state, Traian Basescu. At the time, the referendum was declared invalid because the turnout was below 50%.

Romanian high school graduates took the baccalaureate exam

With the test on Friday, July 5th, the baccalaureate exam came to an end for the approximately 190,000 high school graduates in Romania. At the weekend, however, they will be waiting impatiently for the results due to be made public on Monday. It will be the moment of truth for students, teachers and the authorities alike, given the bad results registered in recent years, with 2011 seeing the lowest grades in the last 20 years.

To blame for these results are lack of interest from teachers and students, and the shortcomings of the education system. However, many say the fact that video cameras and surveillance systems have been installed in the exam rooms, thus making it difficult for children to cheat.

This year, scandals about attempts to bribe teachers have again made the headlines. The most resounding case is that of a headmaster of a high school in Bucharest, who has been taken into custody this week, after she allegedly asked money from the students taking the baccalaureate exam in exchange for influence in the opinion of the members of the evaluation commission.

Prices went up in Romania on July 1st

July 1st brought along gas price hikes in Romania by 8% for home consumers and 3% for industrial consumers. Traffic fines have also increased, while Romanians living in several cities and towns across Romania will pay more for their water and sewerage bills. As if trying to cushion the effect of these price hikes, the government has increased the gross monthly salary to 800 lei, the equivalent of less than 200 euros. Over 600,000 employees in both the state and private sectors will benefit from this increase.

Romania and the situation in Egypt

The Romanian Foreign Ministry is closely watching the latest developments in Egypt and calls on the parties involved to show restraint and avoid the escalation of violence. In reaction to the events in Egypt over the past few days, the Romanian Foreign Ministry has expressed hope that the rule of law will be restored as soon as possible and the process of democratic transition will be resumed. Romania has expressed regret over the loss of human lives in the recent wave of violence and has reiterated the need to observe fundamental human rights and civil liberties.

18 Romanians lost their lives in a bus accident in Montenegro

Wednesday was a day of national mourning in Romania, in memory of the 18 Romanians who lost their lives in a bus accident in Montenegro. Authorities in the former Yugoslav republic also declared Wednesday a day of national mourning out of respect for those who lost their lives and for their families. Another 29 people injured in the accident, who were initially committed to hospitals in Podgorita, were later flown back to Romania with two military airplanes and admitted to several hospitals in Bucharest. A third plane transported the dead back to Romania. With the support of the military, the scale of the medical operation conducted was unprecedented, given the complexity of the case and the large number of dead and wounded. As many as 40 physicians and nurses were mobilized to help those involved, after a bus full of Romanian tourists swayed off a bridge and crushed into a deep ravine. Authorities in Montenegro are trying to download the data in the bus’s tachograph, a device connected to the vehicle’s speed box, and from its on-board computer which stores travel information such as speed, mileage, drivers’ shifts, verifications and possible errors. The investigation carried out by the authorities in Montenegro has shown that when the bus exited a high-speed tunnel, the road was humid and the driver may have been inconvenienced by the bright sun, leading him to lose control of the bus while taking a turn. In Bucharest, prosecutors have started hearing the wounded who can give details about the circumstances of the tragic accident, the most serious one involving Romanian tourists in the past 15 years.

Romanian Prime Minister Victor Ponta tours Central Asia

Romanian Prime Minister Victor Ponta is on a tour of four Asian countries — Azerbaijan, Kazakhstan, Uzbekistan and China. The purpose of the tour is to attract more investment to Romania. The first stop was Azerbaijan, where talks focused on the recent decision of the Shah Deniz II Consortium to opt for an alternative gas pipeline, namely the Trans-Adriatic Pipeline, which is due to transport gas from Turkey to Italy via Greece, Albania and the Adriatic Sea. Both pipelines were aimed at reducing Europe’s dependency on Russian gas imports. Backed by the EU, Nabucco West was supposed to link Turkey to Austria via Bulgaria, Romania and Hungary. Following its announced failure, Prime Minister Ponta said Romania would shift its focus to alternative projects carried out with Azeri authorities, such as the Azerbaijan — Georgia — Romania Interconnector (known in short as AGRI). AGRI will supply natural gas via pipelines transiting Azerbaijan and Georgia and will be liquefied in a regasification terminal on the Georgian Black Sea Coast, from where it would be shipped to Romania. Another option for Romanian authorities is to start exploiting natural and shale gas deposits in the Black Sea. Romania has an annual gas consumption of 14 billion cubic meters, of which 80% is covered by the country’s domestic output.

The IMF board has approved the latest two assessment of its precautionary agreement with Romania

The IMF board of directors has approved the latest two assessments of the precautionary agreement concluded with Romania. The IMF has thus disbursed the final installment provided for in the agreement, worth 520 billion euros. The five-billion-euro loan is a precautionary one, as Romania hasn’t accessed this reserve fund and has no intention of doing so in the future, according to Bucharest officials. Under the standby agreement Romania had pledged to cut back on its arrears to the state budget and to privatize the loss-incurring and debt-ridden Freight Division of the Romanian Railway Company. The last standby agreement was signed in March 2011, in the form of an extension of the previous 2009 agreement. Once the current agreement ended, Romanian authorities say they are already thinking of a new agreement with the international lender.

Romania’s football champions Steaua Bucharest steer clear of the tough sanctions the UEFA could slap on them for corruption

The UEFA hasn’t banned Romania’s football champions, Steaua Bucharest, from the European Cups, although the team underwent investigation on corruption allegations. However, the club has to shun any other sanctions for the following five years lest the suspended one-year penalty sentence be automatically applied. The renowned football forum has opened this file, after Steaua’s owner, George Becali was indicted for involvement in a 2008 bribe-giving case. That year Becali tried to give 1.7 million euros to the players from Universitatea Cluj as an incentive to defeat Steaua’s rivals CFR Cluj in the race for the title. In this present edition, Steaua stands good chances of making it to the Champions League’s main groups stage, and their qualification could bring Steaua 20 million euros, a sum big enough to cover the club’s expenses without any financial contribution from its owner, currently serving a prison sentence. In the Champions League’s qualifying round, on July the 16th Steaua will be facing Macedonia’s champions Vardar Skopje.

Romanian Railway Group wins the tender for the privatization of the Freight Division of the Romanian Railway Company.
The Romanian health-care staff is on the verge of starting protests, strikes and even collective resignations, because of the very low salaries in the system.
Early this week the Secretary of the Russian Federation’s Security Council, General Nikolai Patrusev and the CIA chief John Brennan came to Bucharest
And the relations between the Republic of Moldova and the separatist region of Transdniestr remain tense

Romanian Railway Group has won the tender for the privatization of the Freight Division of the Romanian Railway Company.

Romanian Railway Group (RRG) is the winner of the tender for the privatization of the Freight Division of the Romanian Railway Company, CFR Marfa, part of the plan of measures that the Romanian Government committed itself to, under a precautionary agreement concluded with the IMF, the EU and the World Bank. RRG is the second largest freight transporter in Romania, and one of the big players in Central and South-Eastern Europe. The Freight Division of the Romanian Railway Company, with 9,000 employees, registered huge losses. The Romanian Transport Minister, Relu Fenechiu, has stated that RRG promised investments of 900 million lei in its new acquisition.

Relu Fenechiu: “The transaction was worth 400 million Euros. The price offered by Romanian Railway Group for 51% of the shares is 904,980,000 lei, which means approximately 202 million Euros. Also, RRG committed itself to investing some 900 million lei in CFR Marfa, plus 1.5 million Euros worth of investment in environment-related measures”.

Prime Minister Victor Ponta said that the privatization was necessary both in order to observe the agreement with the IMF, and because the company was in a disastrous financial situation. Ponta also said the only solution the European Commission accepted was the conversion of debts into shares, because any other type of intervention by the government would have been state aid, and that was not admissible.

The Romanian health-care staff is on the verge of starting protests, strikes and even collective resignations, because of the very low salaries in the system.

Fed up with low salaries and poor working conditions, Romanian doctors and the rest of the health-care staff have announced they will start protests, strikes and even collective resignations in July. Doctors say it’s unacceptable for a resident to earn 200 Euros per month, and a specialist physician only 500 Euros. In turn, Romanian authorities say that they are already working on a new salary law, whose draft may be ready within a few weeks. The Romanian Health Minister, Eugen Nicolaescu, has stated that there is no money for pay rises this year, but such a measure is high on the Government’s next year agenda. The health care system in Romania has been weakened by the insufficient funding it has received in the past years, which triggered an exodus of some 14 thousand doctors since 2007, when Romania joined the EU.

The Secretary of the Russian Federation’s Security Council, General Nikolai Patrusev and the CIA chief John Brennan have been to Bucharest.

Early this week, the Secretary of the Russian Federation’s Security Council, General Nikolai Patrusev paid a visit to Bucharest, where he met the Romanian head of State, Traian Basescu. On the occasion, Romania’s Higher Defense Council signed a memorandum with the Russian Federation’s Security Council. Traian Basescu has stated that the document favors cooperation in several fields.

Traian Basescu: “This memorandum will definitely favour cooperation between the Romanian and the Russian police and security structures, in fields such as the fight against terrorism. This is extremely important to us, especially now that the ISAF mission in Afghanistan is drawing to an end, and cooperation with the Russian Federation will help us prevent any terrorist act originating in the Afghanistan — Pakistan area. Another cooperation objective is the fight against cross-border crime, as well as the fight against human and drug trafficking“.

In another move, Romanian President Traian Basescu and General Nikolai Patrusev discussed the missile –defense shield issue. The Romanian President said that Romania would never accept a foreign country’s offensive armament on its territory. In 2011, Bucharest and Washington agreed to deploy elements of the US missile defense shield in Romania, a process that must be completed by 2015. As a coincidence or not, just one day after the Russian officials’ visit, the CIA chief John Brennan also came to Bucharest. The strategic partnership between Romania and the US, the security issues triggered by the Arab Spring, the situation in the Middle East and Afghanistan were the issues approached in Bucharest by John Brennan during the talks he had with Traian Basecu and PM Victor Ponta. Traian Basescu told John Brennan that Romania’s main political target is boosting relations with the US. In turn, Brennan voiced his appreciation of the Romanian Intelligence Services.

Relations between the Republic of Moldova and the separatist region of Transdniestr remain tense

The Parliament of the Republic of Moldova, a former Soviet country with a predominantly Romanian-speaking population and Romania’s eastern neighbor, has not managed to adopt a declaration regarding the situation in Transdniestr, the breakaway region in the east of the Republic of Moldova. The conflict in the area has become worse in the past years, after the separatist leader in Tiraspol, Evgheni Shevciuc, promulgated a law, under which towns and villages controlled by Chisinau go under Transdniestr’s jurisdiction. The Romanian Foreign Minister has stated that this so-called law on the state border of Transdniestr is an act of defiance that should be condemned by the international community.

Romanian-German bilateral relations, in the spotlight

Early this week the Prime Minister of Romania Victor Ponta paid an official visit to Germany. The visit marked perhaps the most important visit on the agenda of the Romanian official since he took office. Talks with German Chancellor Angela Merkel focused on economic cooperation, given that for many years now Germany has been Romania’s top trade partner. Moreover, Prime Minister Ponta has expressed Bucharest authorities’ willingness to strike a strategic partnership with Berlin, just as Bucharest concluded with Paris. In turn, Chancellor Merkel outlined what she described the criteria that Bucharest authorities must comply with in order to make the economy more appealing to German investors. The upholding of the rule of law, legal security and the efficient fight against corruption are but a few landmarks German investors look for when placing their investments, Chancellor Merkel has argued.

Schengen accession, a foreign policy priority

Romania expects a favourable decision by the end of the year regarding its bid to join the free-movement area, Romanian Foreign Minister Titus Corlatean has recently said, upon retuning from a visit to France. Minister Corlatean told Radio France International that he had talks with his French counterpart Laurent Fabius on Romania’s efforts to bring its border crossings in line with state-of-the-art EU standards. Bucharest’s political dialogue with the EU Member States which have voiced concern over Romania’s Schengen ambitions is moving forward, Minister Corlatean has said. Originally slated for March 2011, Romania’s accession to the passport-free travel area has been repeatedly postponed because of the vocal opposition shown by some Member States such as the Netherlands, which have pointed to the unconvincing reform of the judiciary and the lack of progress in fighting corruption. Bucharest, on the other hand, claims it has fully complied with all technical accession criteria, something which the European Commission has acknowledged on a number of occasions.

Public debates on the Romanian Constitution and the referendum

The ruling Social Liberal Union in Romania is pressing on in its effort to revise the Romanian Constitution. The draft law has so far sparked heated debates in the public sphere. The parliamentary committee in charge of amending the country’s fundamental law has already endorsed a long series of amendments, which target a couple of sensitive issues. These include curbing the mandate and remit of the head of state, harsh penalties for the so-called political party switching, lowering the minimum voter turnout required to validate a referendum, sanctioning the public use of insignia of ethnic minorities and the recognition of the role the Royal House and the Orthodox Church have played in building the modern Romanian state. Also this week, President Traian Basescu has launched technical proceedings to hold a referendum on introducing a single-chamber Parliament, with the number of MPs limited to 300. The president submitted the same two matters to a referendum in 2009, when Romanians voted by a landslide majority in favor of the president’s proposals. Although in theory all political parties hailed its outcome at the time, the 2009 referendum did little to reshape the structure of the Romanian Parliament.

Romania’s interest in the Danube region remains high

Romania and neighboring Bulgaria have brought into commission a new bridge over the Danube River, linking the Romanian town of Calafat to Vidin in Bulgaria. The bridge is the largest construction of its kind over the Danube as yet. Attending the opening event were, among others, the EU Commissioner for Regional Development Johannes Hahn and the Romanian Prime Minister Victor Ponta. The second bridge connecting the two EU Member States is a segment of the trans-European corridor linking Dresden in Germany to Istanbul in Turkey. In another development, Romanian President Traian Basescu and his Bulgarian counterpart Rosen Plevneliev discussed the prospect of building a third such bridge. The meeting was held on the sidelines of the 18th Summit of the Central European Heads of State, held in Bratislava, Slovakia. On this occasion President Basescu reiterated Romania’s interest in the Danube Strategy under the 2014-2020 EU budgetary framework. The Nabucco gas pipeline was also high on the agenda of the meeting.

Romania hit by floods and heavy rain

The heavy rain that has hit hard Romanian territory in the past week have killed at least three people. According to the latest report drawn up by the Ministry of the Interior, dozens of towns and villages in Romania have been severely affected by heavy rainfall. The Government has decided to provide financial aid to some 200 families left stranded.

The Constitution Revision process continues

In Bucharest, the first meetings of the Constitution Revision Committee have brought substantial changes, such as reducing the number of MPs to 300, not including the representatives of ethnic minorities. On the other hand, the Committee dismissed the proposals regarding a single-chamber Parliament, the switch to a parliamentary republic and the elimination of the phrase “nation state” as suggested by the representatives of Hungarian ethnics. The Committee also decided that the concept of “region” should be introduced in the amended Constitution, in addition to the existing forms of administrative organization.

Prime Minister Victor Ponta pays a visit to Poland

Poland will assist the Romanian authorities with the territorial reorganization process and with absorbing EU funds, prime minister Victor Ponta and his Polish counterpart Donald Tusk agreed in Warsaw this week. Poland is a model for Romania and a privileged partner, and the two countries have no conflicting interests in any field, Ponta said:

“Given the excellent political relations and the common interests of the two countries, we would like Poland to see Romania as a partner and a strategic friend, and we would like Poland and Romania to pay a strong role in the region and in the EU in the years to come.”

The two prime ministers also expressed their support for the identification of new energy sources, as Romania and Poland share commons views on the environment and energy policies.

The President of the Turkish Parliament comes to Bucharest

The President of the National Assembly in Ankara, Cemil Cicek, was received by President Traian Basescu, had meetings with the speakers of the two chambers of the Romanian Parliament and gave an address before the Chamber of Deputies. The Turkish official praised the high level of trade between Romania and Turkey, which in spite of the negative economic context reached 6 billion US dollars last year. At present over 7,000 Turkish investors have businesses in Romania. Bucharest reiterated Romania’s support for the EU accession of Turkey, and expressed confidence that Ankara will have a positive contribution to the consolidation of the European project.

The European Commissioner for Agriculture, Dacian Ciolos, makes a visit to Romania

The European Commissioner for Agriculture, Dacian Ciolos, paid a two-day visit to Romania, as a guest to the World Congress of the Vine and Wine Industry. Dacian Ciolos said the vine growing industry is one of the most dynamic fields of the European agriculture:

“In spite of the crisis, which affected many areas of the European economy, especially in terms of competitiveness and exports, the wine industry is one of the fields where European exports grow from one year to the next. But in order to keep this pace, we need innovation and research in this field.”

Later, Commissioner Ciolos took part in a conference on the prospects of the fruit growing sector in Romania.

The European Commission releases a report on the freedom of movement

The European Commission has reiterated support for Romania’s and Bulgaria’s Schengen accession, although member states are yet to make a decision regarding the date of the two countries’ accession. In its half-yearly report on the European border-free zone, the Commission found that the two countries have implemented measures that would help meet this goal. Approximately 400 million EU citizens and an increasing number of citizens from third countries travel freely in the Schengen area, without internal border controls.

George Becali receives a new imprisonment sentence

Businessman George Becali received a final sentence to 3 years in prison in a case dating back to 2008, when he offered 1.7 million Euros to a football team as an incentive for defeating football club Steaua’s contender in the championship. Becali was found guilty of bribe-giving and forgery of private documents. Becali claimed he only intended to encourage and motivate the footballers. UEFA is also to state its official opinion on the case, and Steaua Bucharest risks being excluded from European competitions. George Becali, who is currently serving a three-year sentence for another case, involving a real estate fraud, will challenge the new sentence at the European Court for Human Rights.

Sibiu hosts a theatre festival

The town of Sibiu, in central Romania, is hosting an International Theatre Festival. For 10 days, 360 events will take place, involving theatre companies from 70 countries. This year France is the guest of honour. The most spectacular section comprises street performances and music shows in Sibiu’s Grand Square. The Sibiu Festival is the third-largest theatre festival in Europe, after the ones in Edinburgh and Avignon.

The Museum of Art Collections is once again open

The Museum of Art Collections was re-opened in Bucharest this week, displaying works of art that belonged to leading personalities of Romanian culture in the inter-war years. The Museum has 34 collections that were not on public display since 1986. Apart from works by famous Romanian painters like Nicolae Grigorescu, Corneliu Baba and Nicolae Tonitza, the Museum also takes pride in a drawing by the Dutch painter Vincent van Gogh.

• Nominations were made for the chief of the National Anti-Corruption Directorate and the Prosecutor General.
• April 1st brought new price increases.
• The economic growth rate for 2012 was higher than estimated.
• New redundancies were announced in the Romanian industry.
• The freight division of the National Railway Corporation will be privatised. Floods were reported in many parts of the country.

Nominations were made for the chief of the National Anti-Corruption Directorate and for the Prosecutor General

Prime minister Victor Ponta, who is also the interim justice minister, has presented the Superior Council of Magistracy with his proposals for the Prosecutor General of Romania and the chief of the National Anti-Corruption Directorate. The two nominees are Tiberiu Nitu for prosecutor general and Laura Codruta Kovesi for the Anti-Corruption Directorate. The prime minister said his choices sought to ensure stability at the top level of the two institutions, which lately have been working without full-term leaders. President Traian Basescu, who has the last say on the appointments, after the Superior Council of Magistracy has also given its opinion on the nominations, hinted that he agreed with the prime minister’s proposals.

However, the two nominations did spark criticism among prosecutors, magistrates and politicians. The associations of prosecutors and magistrates argue that the two nominations for these institutions of the Romanian judiciary are the outcome of a political compromise. Moreover, the professional associations demand the withdrawal of these proposals and the start of the public candidate selection procedures agreed on by the former justice minister Mona Pivniceru with the European Commission.Ponta’s decision has also been harshly criticised by the Liberals, which together with the prime minister’s Social Liberals, make up the ruling Social Liberal Union.

The Liberal leader Crin Antonescu said the nominations are the outcome of a questionable agreement between the prime minister and the president, instead of relying on a transparent procedure, professional excellence and political independence. Moreover, Antonescu, who continues to accuse Codruta Kovesi of serving the interests of president Basescu, announced that his party gave up the justice minister position, to which they were entitled thanks to an agreement within the ruling coalition. In turn, the European Commission, which continues to watch the Romanian judiciary closely, confirmed having acknowledged the two proposals.

April 1 brought new price increases

On April 1st a new co-payment system was introduced in the Romanian public healthcare, in the form of a fee to be paid for in-patient services. According to the Health Minister Eugen Nicolaescu, the co-payment system is intended to prevent fictitious hospital admissions. He explained that patients will only be charged a small fee, of 1 to 2 euros, upon hospital discharge. Exemptions from the rule will be applied for patients with chronic diseases included in national healthcare programmes, underage patients, pregnant women, low-income pensioners and people with disabilities, as well as for emergency hospital admissions. Also starting on April 1, excises on tobacco and alcohol are higher, while the fees for passport issuance and for crossing the Danube were raised as well.

The economic growth rate for 2012 was higher than estimated

The National Statistics Office confirmed that the upward trend of the Romanian economy in 2012 was stronger than predicted. Un-audited data made public by the Institute indicate that last year the Romanian economy grew by 0.7%, instead of 0.3%, as originally estimated. According to economic analysts, this significant growth rate was prompted by better-than-expected performances in industry and commerce. Prime minister Victor Ponta has been quoted as saying that “because of the disaster in agriculture and of the drought, achieving more was impossible. In our region, we were the only country with an economic growth in 2012, and it is important for us to maintain the course in 2013.”

New redundancies were announced in the Romanian industry

The employees of the Romanian steel works sold for a symbolic price by the Russian giant Mechel call for an immediate intervention of the Romanian government. The employees are angered by the fact that the small, almost unheard of, Russian company that took over the Mechel assets is not interested in rescuing the five units that were once thriving industrial producers. Between 2008 and 2012 alone the Romanian steel industry made some 10,000 people redundant. Another emblem of the Romanian industry, the Oltchim Ramnicu Valcea chemical works in southern Romania continues to struggle with financial difficulties. As insolvency procedures unfold, over 1,000 employees will be laid off and another 300 temporarily idled. Oltchim, one of the large state-owned companies to be privatised, cannot rely on state aid, because such measures are not encouraged by the European Commission.

The freight division of the National Railway Corporation will be privatised

The government has announced this week the privatisation of the freight division of the Romanian Railway Corporation. The only criterion in awarding the contract will be the price bid by the interested parties. The privatisation of this company is one of the commitments made by Bucharest to its international lenders. Over the past five years, the company lost around 270 million euros. Another division of the railway corporation, namely the one managing the railway infrastructure, is also facing problems and will lay off personnel.

Floods were reported in many parts of the country

Because of the heavy rainfalls, many households and thousands of hectares of farmland are under water. The most affected regions are the south, southwest and central parts of the country, for which yellow, orange and even red-code alerts have been issued. Weather experts warn that rains will continue until April 10th.

• Three new judges have been appointed at the Constitutional Court of Romania, while Prime Minister Victor Ponta has taken over as interim Justice Minister.
• Romania and the Republic of Moldova mark the 95th anniversary of the Union of Bessarabia with Romania
• Snow falls and blizzard wreak havoc in Romania.
• The seventh Gopo Film Awards Gala is held in Bucharest.
• Romania is guest of honour at the Paris Book Fair.

New appointments at the Constitutional Court of Romania and the Justice Ministry

Starting June, Romania’s Constitutional Court will have a new structure. Romanian President Traian Basescu and the two chambers of parliament have designated representatives to the Constitutional Court, after the mandate of three of its members are due to expire this summer. In recent years, the institution has been attracting a lot of heat on the Romanian political stage, following frequent challenges with respect to the legality of its rulings. Interest in the Court and its members has been growing significantly, all the more so following last summer’s fierce battle between the ruling Social Liberal Union, on the one hand, and the opposition Liberal-Democratic Party and President Traian Basescu, on the other. The three Constitutional Court judges to start their 9-year term in June are president Basescu’s nominee Daniel Morar, who has so far acted as interim Prosecutor General of Romania and who had previously been at the helm of the National Anticorruption Directorate, Valer Dorneanu and Justice Minister Mona Pivniceru, both proposed by Parliament. The new appointments have also triggered a series of changes. Prime Minister and co-leader of the Social-Liberal Union Victor Ponta has taken the reigns of the Justice Ministry and will have to nominate a new candidate to take over this office within 45 days. Ponta said the main priorities of his term in office are a genuine reform of the judiciary, enacting the new procedural codes, and, above all, appointing the new heads of the General Prosecutor’s Office and the National Anticorruption Directorate, an issue that has been dragging on for some time now. The nominations were specifically given high-priority in the latest European Commission report on Romanian judiciary under the Cooperation and Verification Mechanism.

Romania and the Republic of Moldova mark the 95th anniversary of the Union of Bessarabia with Romania.

On March 27th, Romania and the Republic of Moldova marked 95 years since the union of the historical province of Bessarabia (most of which is today part of present-day Republic of Moldova) with Romania. Minister delegate responsible for liasing with Romanians worldwide, Cristian David, attended a series of manifestations held in Chisinau to mark this event.

Cristian David: “For us, Romanians on both banks of the Prut river, March 27 bears a special significance, it is a day symbolising unity, closeness, hope and looking forward, and it is not at random that my first visit to the Republic of Moldova comes at such a meaningful time”.

The Romanian official met with Moldovan President Nicolae Timofti and Prime Minister Vlad Filat, who expressed their gratitude towards Romania’s support in various fields over the last years, but most of all for Moldova’s European integration process. In turn, minister David hailed the special relations between the two countries, reiterating Bucharest’s readiness to boost and extend cooperation with the Republic of Moldova.

Snow storms hit Romania

This week Romania and several other European countries have been hit by a wave of snowfalls, blizzard and extremely low temperatures, although March is the first month of spring. Whereas last week eastern Romania was hit by a wave of heavy snowfalls, this week the entire southern region of Romania was under a code orange alert for blizzard and snowfalls. On Tuesday, schools, kindergartens and high schools were closed in the capital-city Bucharest and several southern counties. Road and rail traffic was severely disrupted, although no roads were blocked or closed down.

The seventh Gopo Film Awards Gala was held in Bucharest

The seventh edition of the Gopo Film Awards Gala was held on March 25th. The event designated the winners of its 19 sections. Clearing the board in this year’s edition was Radu Jude’s feature “Everybody in our family” that scooped the awards for best film, best director, best leading actor, awarded to Serban Pavlu, best supporting actor, awarded to Gabriel Spahiu, and best supporting actress, Mihaela Sarbu. Moreover, Radu Jude and Radio Romania International journalist Corina Sabau shared the award for best screenplay. “Somewhere in Palilula”, the debut film of famous stage director Silviu Purcarete won the awards for best costumes and stage design, best original soundtrack, best editing and best image.

Romania is guest of honour at the Paris Book Fair

Romania was guest of honour at this year’s edition of the International Paris Book Fair, one of the most prestigious events of its kind in France. Over 50 authors attended the fair, while some 1,000 volumes in Romanian and 600 volumes in French were launched to the French audience, eager to find out more about Romanian literature. Evidence of that can be found in book sales figures, which exceeded 60,000 euros. French President Francois Hollande visited Romania’s pavilion at the Book Fair. On this occasion the French official said that Romania is an important francophone country that loves French culture. Romania’s presence at the Paris Book Fair has been overshadowed by the decision of several leading writers to boycott the event as a sign of protest towards the new policy pursued by the Romanian Cultural Institute.

A joint mission of the IMF, EU and World Bank is in Bucharest for a new assessment.

Experts from the IMF, the European Union and the World Bank are in Bucharest until January the 29th, for a new assessment of the precautionary stand-by agreement with Romania worth around 5 billion Euros and signed in the spring of 2011. This is the international lenders’ first visit to Romania after the parliamentary election in December, which brought to power a center-left government headed by Victor Ponta. High on the agenda of talks will be the recent developments in the Romanian economy, the draft budget for 2013, the monetary policies promoted by the National Bank of Romania and the extent to which the Romanian banking sector is prepared to cope with prospective external shocks. Negotiations will very likely be difficult, considering that there are delays in the privatization of large state-owned companies, in making public healthcare spending more efficient and in the payment of arrears. Romanian authorities seek to obtain a several months extension of the deadlines for these commitments taken as part of the agreement. The government will discuss with the international lenders about the appropriateness and impact of a number of measures that the Cabinet has announced, such as increasing the minimum wages from 155 to 177 euros or reducing the VAT on basic foodstuffs.

World Bank officials issue recommendations to Romania.

Romania must carry on structural reforms and not rush the adoption of the European currency, until it achieves real convergence with the European economies. This recommendation was made by the World Bank country manager for Romania, Francois Rantrua, during an economic conference in Bucharest. He said the World Bank acknowledged the good results Romania has recently obtained in terms of reducing the budget deficit, keeping inflation in check and a slight increase in exports, but warned that the prerequisite for economic growth is investment, particularly in transportation and energy. Other challenges facing Romania are rebalancing the social security budget, reforming the public healthcare sector, making the operation of state-owned companies more efficient, improving the collection of revenues to the state budget and increasing the EU fund absorption rate.

Talks are held on the funding of Romania’s public healthcare system.

Reforming the Romanian healthcare system is a priority for the current government, as it was for the previous cabinets. Proof in this respect is that the 2013 state budget bill stipulates a 30% increase in funds for this sector. Healthcare minister Eugen Nicolaescu has announced a series of measures, such as termination of public funding for private hospitals and reassigning the management and financing of county hospitals, from local authorities to the central ones. After hospital officials and patients alike expressed dissatisfaction with these measures, the minister made a number of clarifications. He has announced talks will be launched next week between ministry officials and private hospital managers, and a decision on the financing of private hospitals will only be taken after the government has approved the framework-contract for 2013. Nicolaescu has added that no decision has been taken yet as regards the medical staff employed both in public and private healthcare units, after the Ministry had previously announced that such cases should be checked for conflicts of interests.

Romania responds to the crisis in Mali and the hostage situation in Algeria.

The international community is facing a new crisis, in Mali, where operations by terrorist groups have strengthened. The crisis threatens to spiral and to jeopardize the stability of that west-African region. An emergency meeting focusing on this situation was held in Brussels, where the EU foreign ministers approved a mission to organize and train the Mali army. The mission will be made up of 200 military trainers and 250 security agents, and will span 15 months. The Romanian foreign minister Titus Corlatean said Romania might take part in the mission. He has firmly condemned the actions of the terrorist groups in Mali and addressed a message of support for France’s decision to resort to a military intervention to restore order to that country. Meanwhile, Bucharest has confirmed that Romania is one of the countries with citizens held hostage in Algeria by an Al-Qaida affiliated group, in retaliation for the French military intervention against Islamist violence in Mali. The Romanian Foreign Ministry has announced a task force has been set up to handle the situation.

Romania’s Prime Minister Victor Ponta presents the key elements of the budget bill for 2013.

Romania’s Prime Minister Victor Ponta has presented the key elements of the budget bill for 2013. The budget is based on a 1.8% economic growth rate, a budget deficit of 2.15% of the GDP and an exchange rate of 4.5 lei for one euro. According to Ponta, Romania’s GDP this year will amount to around 140 billion euros. State returns will stand at 46 billion euros and spending at 49 billion. Beyond all these figures, the centre-left government in Bucharest will try, according to Ponta, to close a cycle of 4 extremely difficult years, two of which were characterised by severe recession.

An increase in the salaries of public employees and pensions will not be possible this year, explained Ponta. The government also plans to go ahead in 2013 with the reform of the public sector, of salaries and the fiscal and tax collection system. “We have office workers earning five times more than a doctor, a teacher or a police worker”, Ponta emphasised. The final version of the budget bill will undoubtedly be established after next week’s talks in Bucharest between the government and a delegation of the International Monetary Fund. In the last few years, the Fund has had a say in all the major decisions taken by the Romanian authorities.

Taxes and duties may increase in 2013.

The government in Bucharest has issued an ordinance allowing local authorities to decide whether they wish to increase or not taxes and duties by 16%, which is the inflation rate in Romania in the last three years. So far, the adjustment of local taxes and duties has been imposed by the central authorities. Prime minister Victor Ponta has warned the local authorities who choose to keep taxes and duties at the level of 2012 that they will be on their own and will not receive any additional funds from the government.

The National Bank of Romania urges for caution in the use of public money.

While the government is busy drafting the budget, the governor of the National Bank of Romania Mugur Isarescu has urged for caution in using public money in 2013. However, he expects this year’s fiscal policy to be one of consolidation, not austerity:

“In my opinion this year’s fiscal policy will be normal, in the sense that it will no longer be based on adjustments and massive reductions in deficit, like last year, but rather on consolidation. I believe that austerity will not be necessary if we implement adequate financial discipline and we are more cautious in the way we spend public money. This year’s monetary policy will also be normal, in that it will keep up with the inflation rate and will adjust all the available instruments. In the meantime, the agreements with international financial institutions will remain in place and provide the general background.”

The European Commission to resume payments to Romania as part of the SOP HRD

The European Commission may resume its payments to Romania under the Sectoral Operational Programme “Human Resources Development” (SOP HRD) in February at the earliest, EU Commissioner for Employment and Social Affairs Laszlo Andor has announced. The Romanian authorities have made major progress in enhancing the transparency of projects conducted under this programme, although any progress has to be confirmed by the audit delegation at the end of January. Payments under the Human Resources Development programme, the most important programme of structural funds disbursing money to Romania, were put on hold last summer due to serious irregularities reported in the eligibility and implementation of EU-funded projects.

Cold wave hits Romania.

The cold snap and blizzards have hit Romania this week. Most affected were northern and eastern regions, where several national and county roads were shut down and numerous villages were cut off from the power grid. Low temperatures reached minus 30 degrees Celsius in some regions, while glazed frost gave both drivers and pedestrians a hard time.

Praiseworthy students are rewarded in Bucharest.

The League of Romanian Students Abroad has bestowed the Awards for Academic Excellence in the 2011-2012 educational year as part of an awards gala held in Bucharest. The competition, which involved 200 BA, MA and doctoral students, was overseen by a board of judges made up of leading figures of the academic, cultural and editing community. The grand prize and title of “Best Romanian Student Abroad in 2012” went to 30-year-old Sergiu Pasca, a researcher at Stanford University in the USA. This year’s edition of the gala also saw the launch of the SMART Diaspora, a multidimensional strategy aimed at helping young Romanians who have graduated from foreign universities to return to Romania.

Vizita la Bucureşti a preşedintelui Consiliului European



Preşedintele Consiliului European, Herman Van Rompuy, s-a aflat, miercuri, la Bucureşti, într-o vizită oficială, marcând în acest fel împlinirea a şapte ani, la data de 25 aprilie, de la semnarea, la Luxemburg, a Tratatului de aderare a României la UE. În timpul discuţiilor cu oficiali de la Bucureşti, preşedintele Consiliului European a insistat pe ideea că România, la fel ca întreaga Uniune, trebuie să aibă ca prioritate disciplina bugetară. În ceea ce priveşte aderarea la Schengen, el a apreciat măsurile luate de România şi a menţionat că la reuniunea Consiliului European din martie toţi liderii europeni au subliniat că Bucureştiul a îndeplinit condiţiile pentru accederea la această zonă. Valorificarea fondurilor UE este de importanţă crucială, iar depăşirea punctelor slabe pe care România le are din acest punct de vedere necesită mai multă eficienţă a Guvernului şi reformarea întreprinderilor de stat, a mai spus Herman Van Rompuy.



Decizii privind contribuţiile pensionarilor la asigurările de sănătate



Premierul Mihai Răzvan Ungureanu a dat asigurări că decizia Curţii Constituţionale cu privire la contribuţia pensionarilor la asigurările de sănătate va fi pusă în aplicare. Instanţa a decis că plata CAS-ului pentru sumele care depăşesc 740 de lei (circa 170 de euro) încalcă drepturile constituţionale. Efortul bugetar aferent acestui an în urma deciziei Curţii s-ar ridica la aproximativ 650 milioane lei (circa 150 de milioane de euro). Reunite în şedinţă comună, comisiile de muncă şi sănătate din Camera Deputaţilor au votat, miercuri, ca sumele încasate până acum prin aplicarea cotei pentru contribuţia de asigurări de sănătate de 5,5% asupra întregii pensii şi nu doar asupra ceea ce depăşeşte 740 lei să fie restituite pensionarilor, în tranşe egale, lunare, până la sfârşitul anului 2012.



O nouă misiune de evaluare a creditorilor internaţionali ai României





O misiune comună a FMI, Comisiei Europene şi Băncii Mondiale se află în aceste zile la Bucureşti pentru o nouă evaluare — a cincea — a acordului încheiat în primăvara lui 2011 cu România. Este ultima vizită a actualului şef al delegaţiei FMI pentru România, Jeffrey Franks, funcţia sa urmând să fie preluată de olandezul Erik De Vrijer. Actualul acord dintre Bucureşti şi FMI este unul de tip preventiv, în valoare de 3,6 miliarde de euro. El este completat de o înţelegere similară cu Comisia Europeană pentru 1,4 miliarde euro şi o linie de credit de 400 milioane euro de la Banca Mondială. Printre angajamentele asumate de autorităţile române, dar îndeplinite parţial sau chiar întârziate, se numără privatizările, promovarea de manageri privaţi la companiile de stat şi deficitul bugetar. Experţii FMI estimează că anul acesta România va avea o creştere economică de 1,5% din PIB, mai mică decât prognozele anterioare din cauza recesiunii anticipate în zona euro şi a deteriorării condiţiilor de pe pieţele internaţionale.



Comisia Europeană investighează activitatea Hidroelectrica S.A., companie controlată de statul român



Comisia Europeană a iniţiat cinci investigaţii aprofundate cu privire la activitatea Hidroelectrica S.A., companie controlată de statul român. Executivul comunitar verifică dacă producătorul de hidroenergie a achiziţionat sau a vândut energie electrică la tarife preferenţiale mai multor comercianţi, încălcând astfel normele UE în domeniul ajutoarelor de stat. Este vorba despre clienţi industriali şi producători de energie electrică care ar fi fost favorizaţi prin reducerea costurilor de funcţionare sau prin creşterea veniturilor. Hidroelectrica a anunţat că a transmis Comsiiei toate contractele de vânzare şi cumpărare a energiei electrice solicitate.



Contractele din România ale companiei americane Chevron au fost desecretizate



Contractele din România ale companiei americane Chevron au fost desecretizate. Chevron este al doilea mare grup petrolier din SUA şi deţine în România un perimetru de explorare-exploatare a gazelor de şist la Bârlad şi trei perimetre în judeţul Constanţa. Chevron are dreptul de concesionare asupra perimetrelor din Dobrogea pentru o perioadă de 30 de ani, care poate fi extinsă cu alţi 15, potrivit documentelor publicate de Autoritatea Naţională pentru Resurse Minerale. Totodată, în cazul în care Chevron va descoperi gaze şi petrol, va plăti statului român redevenţe cuprinse între 3,5 şi 13% din producţie. Acest nivel al redevenţelor este unic pentru toate companiile, ca urmare a contractului de privatizare a Petrom, din 2004, şi este stabilit până la sfârşitul anului 2014. Din punct de vedere al protecţiei mediului, contractul cu firma americană a declanşat discuţii aprinse, opozanţii exploatării gazelor de şist organizând proteste.



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