Radio România Internațional

Category: Today in the News

  • Changes on the Romanian political scene

    Changes on the Romanian political scene

    On June 9, the Social-Democratic Party (PSD) and the National Liberal Party (PNL), the biggest political parties and coalition partners, won the European parliamentary election by a landslide, after fielding candidates on a single list. Then, in the local election, both parties fared honorably, with the Social-Democrats securing most of the town halls and county councils. Nothing foretold the electoral disaster sustained by the PSD and PNL candidates in the first round of the presidential election. The Liberal and Social-Democrat presidential candidates have tied their names to two historic failures: the leader of PNL, Nicolae Ciucă, ranked fifth with less than 9%, thus becoming the first Liberal candidate not to obtain a two-digit score, while the leader of PSD, Marcel Ciolacu, seen as favorite to win the first round, came only third, with 19%, becoming the first left-wing candidate not to advance to the presidential runoff. Both owned up to their failure and resigned from the leadership of their parties.

     

    On December 1, in-between the two rounds of the presidential election, the parliamentary election is scheduled, and the main parties must quickly recover from the electoral shock. PSD seeks to regain the trust of Romanians in the parliamentary election and will come up with a new approach for communicating with citizens, said the vice-president of the party and the European Parliament, Victor Negrescu, appointed to deal with political communication until the parliamentary election. A strong representation of Social-Democratic values ​​is needed in the future Parliament, Victor Negrescu said, arguing that PSD will intensify its efforts to better explain their governing program to the Romanian people. “We have good results in terms of governance and, in this respect, we will also come up with a new approach in the way we communicate with citizens, more directly, more openly, we will them what we are able and want to do in a very direct and honest approach”, Negrescu added.

     

    The entire leadership of the Liberal Party resigned, and Ilie Bolojan was appointed interim president. Bolojan is known for his good administrative and economic results in Bihor County (northwest) and in the municipality of Oradea. Ilie Bolojan announced that PNL will support Romania’s pro-European direction and center-right policies, which is why in the second round the party will unequivocally support Elena Lasconi, the leader of the Save Romania Union. We recall that, in the presidential runoff slated for December 8, Elena Lasconi will face the surprising winner of the first round, Călin Georgescu, a figure unanimously considered toxic and dangerous due to his extremist and pro-Russian views. Over the coming period, Bolojan pointed out, the Liberals will present the public policies that PNL will support in Parliament: state efficiency and waste reduction, public policies that allow the development of local communities through decentralization and support programs addressing local officials, policies that support the rule of law, an independent justice system and policies related to equity, meritocracy and rules that generate fair behaviors at society level. (VP)

  • Referendum for Bucharest

    Referendum for Bucharest

    On November 24, on the day of the first round of the presidential election in Romania, the citizens of Bucharest were called to the polls also in a referendum initiated by the general mayor Nicuşor Dan. Those registered on the electoral lists had to answer two questions proposed by the mayor and a third one proposed by the Social Democratic Party – PSD (in the governing coalition). The first question was whether the citizens agree with the general mayor of Bucharest issuing the construction permits for the entire city of Bucharest, the second asked the citizens if the distribution of income taxes and local taxes and fees collected from the citizens of Bucharest should be approved by the General Council of the City of Bucharest? And the last question was whether the people of Bucharest want the municipality to deal with the prevention of drug use in schools. According to the data provided by the Permanent Electoral Authority, 731,990 citizens voted in the referendum, i.e. 40.96% of the number of those registered on the electoral lists. The referendum therefore passed the validation threshold of 30% and obtained a majority vote in favor of the three proposals.

     

    According to the CURS survey, 97% of the voters said YES for the centralization of building permits in Bucharest, 64% agreed with the second question and 82% voted for the program to prevent the consumption of drugs in schools. The vote must be confirmed by Parliament. “I want to thank the citizens of Bucharest who came in such large numbers to the referendum, I thank them for understanding the huge stakes for the city of this democratic exercise”, the general mayor Nicușor Dan stated, in a press conference. He said that, through their will, the city is returning to normality and reason, which was corrupted by the political games made 20 years ago, which led to chaos in town planning.

     

    At the same time, the general mayor warned the citizens of Bucharest that the big works that the city needs require time for administrative procedures. The general mayor, Nicușor Dan, also stated, after finding the results, that the political parties cannot ignore the will of 500,000 Bucharest residents and asked for their will to be transposed into legislation: “In the debate that we will have in a few weeks on the national budget law, the result of the referendum should be included. In the debate that we will have in the first half of 2025 on the Urban Planning Code, the result of the referendum should also be included, and the Fiscal Code should be amended according to the result of the referendum in the first half of 2025”.

     

    He also added that, after the local referendum, the money will be better distributed, and in terms of urban planning, authorizations will be issued legally. (LS)

  • Surprising result in Romania’s presidential elections

    Surprising result in Romania’s presidential elections

    The independent candidate Călin Georgescu takes the lead in the first round of the presidential elections in Romania.

     

     

     

    Over 9.4 million Romanians cast their ballot for the country’s next president in the first round of voting on Sunday. The voter turnout rate was 52.55%, much higher than five years ago, when it stood at 42.19%. Over 820,000 Romanians voted abroad, most of them in the United Kingdom (150,000), Germany (145,000) and Italy (123,000). The big surprise of the election is the independent candidate Călin Georgescu, a 62-year-old agronomist engineer, who ranked first in the voters’ preferences. He worked as an expert in sustainable development and was secretary of state in the Ministry of Environment. He headed a department in the Ministry of Foreign Affairs, then held various positions at the UN in the field of environment, for several years. Since 2013, he has been head of the European Research Centre of the Club of Rome, and is currently a professor at the University of Piteşti (south).

     

    The international media reports that Romanians are voting for extremism, which from a geopolitical point of view is a disaster. Electoral earthquake in Romania: a pro-Russian candidate that no one expected came out first in the first round of the presidential elections, ahead of the pro-European Prime Minister Marcel Ciolacu, France Presse reports. A hard-right Romanian politician and NATO critic has achieved a shocking result that threatens Romania’s firm pro-Ukraine stance, Reuters reports. Călin Georgescu was associated with the Alliance for the Unity of Romanians (AUR), a party that had repeatedly mentioned his name as a candidate for prime minister. He was later removed by the AUR leadership, who accused him of damaging the party’s image with his pro-Russian and anti-NATO stance. In a 2021 interview, Călin Georgescu described NATO’s missile shield at Deveselu as “a shame of diplomacy” and said the Alliance would not protect any of its members if they were attacked by Russia. In addition, he said that Ion Antonescu, Romania’s de facto leader in World War II, who was sentenced to death for his role in the Holocaust, and Corneliu Zelea Codreanu, the leader of the Legionary movement – ​​one of the most violent and anti-Semitic in Europe – are national heroes.

     

    A criminal case was opened against Georgescu for promoting the personality cult of individuals suspected of genocide. Romania’s best chance is “Russian wisdom,” he said in another interview. Extremely religious and nationalist, he campaigned for reducing Romania’s dependence on imports, supporting farmers and increasing domestic food and energy production. Călin Georgescu stayed out of the spotlight and focused on social media. Romanians voted for him, including those in the diaspora, despite his strongly anti-Semitic, legionary, “messianic,” pro-Russian and anti-Western discourse. “I said we are not doing politics, we are doing history. It came true,” he pointed out, after the polling stations closed.

     

  • Closer to full Schengen accession

    Closer to full Schengen accession

    The Ministers of the Interior of Romania, Hungary, Austria and Bulgaria reached a historic agreement in Budapest on Friday on the enlargement of the Schengen Area, paving the way for the full accession of Romania and Bulgaria starting on January 1, 2025. The final decision, however, which requires the agreement of all EU interior ministers will be taken on December 12 at the JHA Council in Brussels. “I have always considered that the current situation is unfair to Romania, which has made numerous efforts in recent years and long ago fulfilled all the conditions to become part of the Schengen Area” – said the Prime Minister of Hungary, Viktor Orbán, whose country is holding, until the end of the year, the presidency of the Council of the European Union.

    Moreover, all the European institutions have supported in recent years the accession of the two states to the area of free movement and welcomed the positive result of the meeting in Budapest. “Let 2025 see Schengen become stronger”, wrote the leader of the European Commission, Ursula von der Leyen, on social media.The President of the European Parliament, Roberta Metsola, has also welcomed the “positive development on Romania and Bulgaria fully joining the Schengen area.” For his part, the Austrian Minister of the Interior, Gerhard Karner, whose country has so far opposed the accession of Romania and Bulgaria to the free movement area, acknowledged that “illegal migration has decreased, but we must continue to strengthen the external borders of the European Union. Concerning veto on the full accession of Romania and Bulgaria, he pointed out: “it is not only my decision, it is the decision of the entire chancellery “.

    In Budapest, Minister Cătălin Predoiu welcomed the agreement and stressed that this goal is for the benefit of all, as Romania is a real security provider in the Schengen Area.

    Cătălin Predoiu: “We reached an agreement. The meeting was a success. Our goal, Romania’s goal at this meeting was to create the conditions for a positive decision at the JHA Council in December. It was to create the conditions so that the Austrian veto could be lifted, so that we would have a decision this year. And I think it was a common goal, including that of my colleague and friend Gerhard Karner. It was important that everyone was comfortable, as the very good work done by the Romanian and Bulgarian border police, together with their colleagues from Serbia, Hungary, Austria, this very good work that was the basis of the path we travelled, will continue even after Romania and Bulgaria join the Schengen Area with land borders as well”.

    We recall that Austria has opposed the enlargement of the free movement zone from 2022 as a sign of protest against the numerous illegal entries into its territory. In March this year, it accepted partial Schengen membership for the two Eastern European states, with air and sea borders, and established a roadmap for a possible extension to land borders. (MI)

  • Transition program towards F-35, launched

    Transition program towards F-35, launched

    The Romanian Air Force’s transition program to 5th generation aircraft has been launched.

     

    Romania’s decision to acquire advanced fighter jets is a key step in the ongoing modernization of the Romanian Armed Forces and will contribute significantly to the long-term defense of the NATO Alliance and our collective security. This is the message of the United States Ambassador in Bucharest, Kathleen Kavalec, at the launch event of the Romanian Air Force’s transition program to 5th generation aircraft.

     

    The 32 F-35 aircraft for which the acquisition contract was signed by the Romanian and American governments is the top of aviation performance at present, says the Defense Minister, Angel Tîlvăr: ʺF-35 aircraft have stealth technology, advanced sensor and communications systems, unparalleled speed and maneuverability, which makes them vital for modern military operations. The unique technological capabilities of these aircraft allow them to act as a multiplier for both deterrence and air defense capabilities, including those based on the ground, and for indirect fire force support systems, which can be supported in real time with data from the space in which they operate.ʺ

     

    According to the minister, the allocation of 2% of the GDP for Defense since 2017, a percentage that has now reached 2.5%, has allowed the Romanian Army to begin the most extensive modernization process. And the advance – as stated by the US ambassador Kathleen Kavalec – is a significant one: the Romanian Air Force has switched from MiG aircraft to F-16 fighter jets, so that, from 2030, it will have state-of-the-art F-35 aircraft. The American diplomat recalled that the current security challenges are significant, and Romania, as a NATO ally on the eastern flank, has been directly affected by Russia’s war of aggression in the neighboring Ukraine.

     

    When needed, the Romanian Air Force and the Alliance have mobilized fighter jets, following the detection of airspace violations in southeastern Romania, near the border with Ukraine. Beyond the military impact, says Prime Minister Marcel Ciolacu, the acquisition of the F-35 aircraft also has an economic impact: ʺBy integrating these aircraft into the Romanian Armed Forces, Romania has stimulated the development of the defense sector and will support the creation of jobs in key areas of the defense industry and technology. In addition, the integration of the F-35 into the National Defense System will offer new opportunities for training and professional development for our young specialists in the technological field.ʺ It is, therefore, an element that contributes to the development of a competent and well-trained workforce, the Prime Minister also said.

     

  • The National Energy Strategy, adopted

    The National Energy Strategy, adopted

    Using local resources, reducing imports and making massive investments in production capacity are important elements of the new National Energy Strategy.

     

    The Bucharest Government has adopted the National Energy Strategy for the next 10 years, until 2035, with a view to 2050. It is the first such strategy passed by the Government in the last 17 years. “We are in another critical moment, when we are faced with major market fluctuations, geopolitical and security crises, as well as economic difficulties. Our response is ambitious: the use our own resources, have less imports, make massive investment in energy production capacity and in the transport and distribution network, local production of equipment, digitization and state of the art technologies, all for an energy sector that offers safe, cheap and clean energy”, Energy Minister Sebastian Burduja said. In his opinion, time has come to turn our resources and intelligence into economic power, security and competitiveness. Romania is building a future in which no Romanian will suffer from energy poverty and no company will be forced to close its doors due to high energy costs, Burduja added.

     

    The National Energy Strategy sets clear directions for the development of the sector, namely energy security, clean energy, energy efficiency, accessibility and economic competitiveness, efficient markets, innovation and digitalization. According to the Energy Ministry, these objectives are guided by clear principles, such as prioritizing security of supply, developing the circular economy and achieving climate neutrality by 2050. Moreover, by adopting this strategy, Romania demonstrates a clear commitment to a secure, affordable and clean energy future. It is an important step towards transforming the energy sector into a pillar of economic development and a pillar of regional stability, the Ministry also said.

     

    According to the document, Romania undertakes to protect critical infrastructure, reduce dependence on imports by using its own resources and digitalize the sector. At the same time, Romania’s energy security includes supporting the Republic of Moldova. Another vector of the strategy refers to ensuring the lowest possible prices for consumers, both households and industrial, thus preventing energy poverty and supporting economic competitiveness. Romania continues to be a European leader in reducing greenhouse gas emissions, maintaining a balance between security, affordable prices and the green transition, according to Energy Ministry officials. They also say that Romania is facing global and regional pressure, including market fluctuations, climate change and the effects of the war in Ukraine, and the Strategy offers solutions through investments in modern technologies, strengthening the supply chain, digitalization and innovation.

  • Political agreement on the new European Commission

    Political agreement on the new European Commission

     

     

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next European Commission. They finally said yes to all the 7 European Commissioner nominations that were still under evaluation, thus ending the weeks-long deadlock between the EU’s political factions over the composition of the future Commission.

     

    Between November 4 and 12 Parliament heard the prospective European commissioners in Ursula von der Leyen’s new team. After the interviews, however, for more than a week, the fate of the 6 vice-presidents and of the Hungarian nominee for public health and animal welfare commissioner Olivér Várhelyi was in limbo over political disagreements between the European People’s Party, Renew, and the Socialists and Democrats.

     

    One of those left waiting was Roxana Mânzatu, Romania’s proposal, who would hold the post of Executive Vice-President for People, Skills and Preparedness. During the interview, she was asked questions not only about employee rights and the Erasmus programme, but also about the illegal extension of her house in Brașov, a topic also covered by Romanian media.

     

    In a social network post, the Romanian PM Marcel Ciolacu welcomed Roxana Mînzatu’s validation as vice-president of the EC and as commissioner for a “relevant” sector. She is an excellent professional and will do Romania credit, said the Romanian PM.

     

    It is the first time since 1999 that no EU commissioner candidate has been rejected, which is a step back for the power of the EP, Politico notes. Along with the agreement on the membership of the future European Commission, the leaders of the main parties represented in Brussels also signed a document in which, as a parliamentary majority, they undertake to work together during their term in office to support Ukraine and to enhance the bloc’s security and competitiveness. The signatories also agreed to adopt a new industrial agreement and to boost circular economy, friendly to the environment. Last but not least, an efficient migration policy is being considered.

     

    The European Parliament’s final vote on the new Commission led by Ursula von der Leyen will be given in next week’s session in Strasbourg. Two-thirds of the MEP votes are needed for the Commission to be endorsed. According to the procedural calendar, if the vote is favorable, the new commissioners will take office on December 1.

     

    The formula proposed by Ursula von der Leyen is slightly changed, with a vice-president position for European diplomacy chief (Kaja Kallas), 5 executive vice-presidents who will also coordinate certain policies, as well as 20 commissioner posts. (AMP)

  • 13 for Romania

    13 for Romania

     

     

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the election for president are held before and after the legislative ballot, thus increasing the electoral stakes.

     

    In business terms, the demand is high among the voters, but the supply is rather poor, perhaps the poorest in the last 35 years, commentators and analysts agree, talking not so much about numbers, because there are 13 candidates in the race, but about their quality.

     

    Their arguments include the fact that most of the candidates lack a well-defined professional profile, even if they have political experience, that they have little if any charisma, and that some of them are tainted by corruption scandals.

     

    On the other hand, there are also candidates whose competence in ​​foreign policy and security, the key areas in the president’s job description, has been proven and is indisputable, but who suffer in terms of political support, because they are running independently.

     

    One other thing that affects this presidential election is that, while at least two contenders, possibly even 3, are fighting for the second place in the decisive round on December 8, one candidate is virtually certain to qualify to the final, and this paradoxically dilutes the tension of the competition.

     

    The debates between Ion Iliescu and Emil Constantinescu in 1992 and 1996, the one between Traian Băsescu and Adrian Năstase in 2004, or the one in 2014 between the outgoing president Klaus Iohannis and his opponent at the time, Victor Ponta, have been truly memorable. They were all competitions between the main political blocs, the left and the right, with the latter winning for the past two decades. Unlike what we’ve seen in the past, during the current presidential campaign there has been just one televised debate, and even that one has not been attended by all the candidates.

     

    In terms of ideologies, all leanings are represented in the presidential race, from the social-democratic to the liberal and from centrist pro-Europeans to populist and sovereignist nationalists.

     

    The election season in Romania opened on June 9, when local and European parliamentary elections took place simultaneously. The two rounds of the presidential elections will be held on November 24 and December 8, and in between, on December 1, the National Day itself, general elections are scheduled. Romanian voters living abroad will be able to vote in the first round of the presidential elections for 3 days, Friday, Saturday and Sunday. The authorities have set up around 950 polling stations abroad, the largest number so far. According to the Permanent Electoral Authority, around 7,000 Romanian citizens living abroad have opted for postal voting. (AMP)

  • Romania’s natural gas, available for trading

    Romania’s natural gas, available for trading

    On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the largest producer and main supplier of natural gas in Romania, where the state is the majority shareholder with 70% share participation. Along with OMV Petrom, Romgaz contributes to the national strategic project Neptun Deep in the Black Sea, which foresees total investments standing at 4 billion EUR, half of which must be covered by Romgaz. Total production is estimated at approximately 100 billion cubic meters of natural gas. Recently, Transocean Barents, the huge drilling platform contracted for the Neptun Deep project, arrived on the Black Sea coast, in Constanţa. Drilling will start in 2025, and the first gas will be exploited in 2027. Meanwhile, the money raised from the bond issue will be used by Romgaz to finance Neptun Deep, but also other goals in the company’s investment program. It’s worth mentioning in this respect that Romgaz aspires to enter the electricity supply market. Equally, the company seeks to transition to a low-carbon emission operating format. The bonds, also listed on the Luxembourg Stock Exchange since early October, represent only the first installment in a medium-term program that will allow Romgaz to issue bonds with a total value of 1.5 billion EUR.

     

    Investor interest in these financial instruments is already significant, Romgaz CEO Răzvan Popescu says. However, in addition to important international investors, pension funds and other entities operating in Romania have also invested in Romgaz’s bond issue to an extent of approximately 20%. The issue was oversubscribed approximately 12 times, with pre-orders of around 6 billion EUR having been already submitted, a success praised by Secretary of State in the Prime Minister’s Office, Mihai Precup:

     

    “This, I think, is perhaps the biggest bond issue at the level of Eastern Europe by a state-owned company. In the last two years, after Hidroelectrica, today we are witnessing the largest bond listing in the history of Eastern Europe by a state company, a historic day”.

     

    In turn, the president of the Financial Oversight Authority, Alexandru Petrescu, says that Romgaz’s bond issue contributes to the achievement of Romania’s strategic objectives in the field of energy:

     

    “It is not just another instrument with fixed income. I think it sends a clear message – we are taking an important step in terms of the resilience of the energy sector, with a positive impact not only on Romania, but on Central and Eastern European”.

     

    The bonds have a maturity of 5 years and a fixed interest rate of 4.75% per year. (VP)

  • Romania ahead of the presidential election

    Romania ahead of the presidential election

    Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called Iohannis decade is already a topic for reviews, in press editorials or in documentary films, and the balance sheet is by no means brilliant. Coordinating the country’s foreign policy is a presidential prerogative, and this is also the area where the worst backlogs have accumulated. Many Romanians still feel like second-class citizens of the European Union, because their country was admitted to the free travel Schengen Area only with the air and maritime borders, not with the land borders. Although the strategic partnership between Bucharest and Washington seems, according to the officials’ statements, to have reached its peak, Romania has not yet been included in the Visa Waiver program, which allows visa-free entry to the United States. The consistent support given by Romania to neighboring Ukraine, invaded by the Russian troops, created major disservices to some local socio-professional categories, from farmers to transporters, who took to the streets to voice their dissatisfaction.

     

    Internally, there are countless complaints against President Iohannis, one of them being that he completely ignored his role as a mediator in society, a role also stipulated in the Constitution. After Iohannis, the feeling remains that anyone can be president, a columnist has recently written. 14 aspirants initially registered in the presidential race. They are leaders of parliamentary parties, representatives of marginal political parties or independent candidates. One of them, the former Prime Minister Ludovic Orban, a candidate of the Force of the Right group on Monday announced his withdrawal from the race and decision to support the head of the Save Romania Party-USR, Elena Lasconi. The teams of the remaining 13 revved their engines in the last days of the election campaign, which ends on the eve of the voting day, on November 23, at 7:00 a.m. Voting in the country will take place on Sunday, between 7:00 a.m. and 9:00 p.m. If at the time of closing the polls, there are voters queuing to cast their vote outside or inside, the president of the polling station may decide on the extension of voting until 11:59 p.m., when the system will close automatically.

     

    Voters can vote only in the locality where they have their domicile or residence, and in Bucharest, only in the sector where they are registered on the permanent lists. The address of the polling station to which the voter belongs can be found on the website of the Permanent Electoral Authority. Voters who are in a different locality on the voting day can cast their vote at any section, being registered on the additional lists. Romanian citizens with their domicile or residence abroad can vote either by mail or at any section organized in the country or abroad. The decisive voting round, which will pit the two candidates with the highest number of votes, is scheduled for December 8, a week after December 1, the very National Day, when the Romanians are called to also elect a new Parliament. (LS)

  • Romania’s Prime Minister on a visit to Brussels

    Romania’s Prime Minister on a visit to Brussels

    NATO welcomes Romania’s continuous efforts and its significant contribution to strengthening the Alliance and Euro-Atlantic security, NATO Secretary General, Mark Rutte, said during talks with Romania’s Prime Minister Marcel Ciolacu, who on Monday paid an official visit to Brussels. Romania is determined to prove it is a reliable ally and a security provider in the region and beyond, the Romanian official said in turn, adding that, in addition to allocating 2.5% of GDP to the defense sector, investments in this field will continue. The Romanian Prime Minister also said that NATO’s robust presence in Romania is a guarantee that every inch of the country’s territory is fully defended.

     

    “The violations of Allied airspace and Russia’s aggressive posture in the Black Sea show how important it is to deploy additional troops in the area and to offer a solid and united response at NATO level. In this context, I told the Secretary General that Romania understands and respects its commitments and is solidary with our allies and partners”. Romania contributes not only to strengthening the eastern flank, but much more, as its soldiers actively participate in NATO missions in different areas, the NATO Secretary General, Mark Rutte, said, hailing Bucharest’s firm support to Ukraine.

     

    „You invest more than 2% – I believe it is now getting to 2.5% of your GDP – on defense. You host one of NATO’s battlegroups, and in addition, your soldiers make a vital contribution to NATO missions, particularly in Kosovo, but also in Iraq and other places”.

     

    In Brussels, the Romanian Prime Minister met with the President-elect of the European Council, António Costa, and also with the President of the European Parliament, Roberta Metsola. During the meeting, Marcel Ciolacu said an ambitious, coherent European agenda is needed now more than ever, solidarity between member states, as well as actions in the interest of EU citizens. Romania shares the European Union’s concern for reducing the gaps between regions and social groups, as well as for ensuring a just green transition for all. These objectives should be financed from the post-2025 multiannual budget, the Romanian official also pointed out. At the same time, Marcel Ciolacu told President Metsola that Romania’s full Schengen accession this year remains a fundamental goal, while another top priority is the advancement of strategic interconnectivity projects in the Black Sea region. (VP)

  • Downward forecast from the European Commission

    Downward forecast from the European Commission

    Romania’s economic growth estimate has been recalculated by the European Commission (EC), at a value well below the initially established figure. In the forecast published in the spring of 2024, the estimate was that the economy would register an advance of 3.3% this year, followed by one of 3.1% in 2025. In a recent document, however, the EC states that the growth rate of the Romanian economy will slow down to 1.4% this year, then accelerate slightly to 2.5% in 2025. During this year, industrial production, constructions, IT and transports have slowed down due to the decrease in external demand from Romania’s main trading partners, the rapid increase in wages and the high energy prices. At the same time, retail sales have grown strongly as available incomes have grown at a rapid pace. However, the dynamic private consumption was largely counteracted by the negative contribution of exports to the GDP growth, while the growth of private investments was moderated by the uncertainty surrounding the expected fiscal consolidation measures, the EC stated.

     

    On the other hand, according to the new forecasts, Romania’s budget deficit is forecast to reach 8% of the GDP in 2024 and to remain at a high level of 7.9% of the GDP in 2025. Comparatively, in the spring, Brussels estimated that the deficit was expected to reach 6.9% of the GDP in 2024 and 7% of the GDP in 2025. According to the EC, the deficit exceeding the expectations reflects a very rapid increase in government spending, mainly due to increases in public sector wages, to spending on goods and services, and social transfers, including pensions. It also reflects a slightly slower revenue growth due to weaker than expected economic activity. The good news is that inflation is expected to continue to decline in Romania, from an average of 10% in 2023, to around 5.5% in 2024. However, pressures on prices remain high, due to strong domestic demand, on the backdrop of increasing salaries and pensions, warns the EC.

     

    Despite the economic slowdown, the demand for jobs remains strong, and the unemployment rate will be 5.5% in 2024 and 2025 and 5.4% in 2026. At the same time, public debt is expected to increase from 48.9% of the GDP in 2023 to almost 60% by 2026. The forecast does not include any impact of the government’s potential budget deficit reduction measures on revenues or expenditures, measures included in the medium-term fiscal and structural plan that Romania presented to the EC in October. These measures are not sufficiently specified by the government at this stage, the report points out. However, they have the potential to significantly reduce the public deficit in relation to this forecast, if they are designed and implemented properly in the budget for 2025. In its latest report, the IMF also revised downwards to 1.9% the estimates regarding the advance of the Romanian economy this year, from 2.8% as forecast in April. (LS)

  • 35 years since the fall of the Berlin Wall

    35 years since the fall of the Berlin Wall

    The fall of the Berlin Wall, 35 years ago, represented for Romanians an encouragement in their fight for freedom, and the removal of the Iron Curtain made it possible for Romania to return to the family of European democracies, President Klaus Iohannis said in Berlin. On a visit to Germany, the Romanian head of state gave a speech in the Federal Parliament, during a ceremony organized on the Day of Remembrance for the Victims of War and Dictatorship. In the context, he emphasized the fact that for 35 years, Romania has been a free country, following the December 1989 Revolution. He said, in his speech in the Bundestag, that after the Second World War, European democratic values and the European economic model were sources of inspiration for international partners. He drew attention, however, to the fact that, unfortunately, it became obvious that ‘some totalitarian regimes’ fear of the attractiveness of European values’ made the Union be perceived as ‘a threat’, stressing that Romania had warned in advance of the risk to Europe’s security posed by the aggressiveness of dictatorial regimes.

     

    Klaus Iohannis said that “Unfortunately, the mechanisms of propaganda and disinformation are spreading again today, because dictatorial regimes count on the fact that a lie told often enough becomes the truth. We see this revolting reality in Russia’s aggression against Ukraine. We stand by the Ukrainian people, who courageously and heroically opposed the invasion dictated by the Kremlin, defying the force and brutality of Russian imperialism. The support of our states and the international community is vital to finally ensuring a just and lasting peace, in full agreement with the UN Charter and international law,” said Klaus Iohannis.

     

    These risks, Klaus Iohannis added, are also an important reason why we advocate for strengthening the resilience of the Republic of Moldova, the state most affected by this war, after Ukraine. He said that ‘We also remain firmly committed to Ukraine and the Republic of Moldova on the path of joining the European Union, President Iohannis emphasized. According to him, preserving the memory of the victims of wars and totalitarianism, as well as of those persecuted for their faith, for searching justice and freedom, is ‘a duty and a form of justice’. ‘We must always keep in mind that forgetting the past leads to the repetition of history’s mistakes or the perpetuation of injustice. This forgetfulness represents an ever-increasing danger’, Klaus Iohannis said.

     

    At the same time, he expressed his admiration for the care with which the German state understands to focus on the appropriate knowledge of history, especially by the younger generations. He stated that ‘in Romania we are also making serious efforts so that young people should learn in schools about the mistakes of the past and be aware of them, so as not to repeat them’. On the other hand, Klaus Iohannis assured Germany that it would continue to find in Romania a partner deeply dedicated to European values, ‘ready to work for the strengthening of the European Union and for these values ​​of freedom and democracy to be protected and accepted, both in the neighborhood and globally’. (LS)

  • European minimum wage in Romania

    European minimum wage in Romania

    The law on the introduction of the European minimum wage in Romania was promulgated by President Klaus Iohannis. Prime Minister Marcel Ciolacu has stated that, in this way, the final step can be taken towards increasing the minimum wage to 4,050 lei (approx. 810 euros) as of January 1, 2025. He assured that there are no obstacles, neither electoral nor of any other nature, in the way of this decision. “The legislative act is transparent, everyone has seen it and has spoken about it. That’s why we will go through the necessary procedure to have it quickly approved, to make the technical adjustments as well”, the Prime Minister stressed.

    The decision to increase the gross minimum wage was taken in the Tripartite National Council, which brings together the Government, employers and unions. The new law has as its regulatory object the transposition into national legislation of the provisions of a Directive of the European Parliament (2022/2041) regarding adequate minimum wages in the EU. This aims to improve working and living conditions, including through adequate minimum wages and an effective collective bargaining framework to support the evolution of wages.

    According to the law, the gross minimum basic salary per country guaranteed in payment established by Government decision can be granted to an employee for a maximum period of 24 months from the date of conclusion of the individual employment contract. “With the adoption of this law, we will ensure a better protection of workers in Romania. The increase in wages is a step forward for better-paid jobs, but also for greater economic and social stability. By applying this law, we aim to reduce poverty and protect the purchasing power. It is a commitment we have made to leave no one behind and to improve working and living conditions”, said the Minister of Labor and Social Solidarity, Simona Bucura Oprescu, in a post on social media. An increase to 4,050 lei would mean that Romania will reach about 47% of the European minimum wage.

    Currently, the basic minimum gross salary is set at 3,700 lei per month (approx. 740 euros), for a full work schedule of 168 hours, on average per month, representing 22,024 lei/hour (approx. 4.4 euros). According to official figures, in Romania, over 843,000 employees currently benefit from the minimum gross salary guaranteed in payment, which represents a percentage of 15.5% of the total number of active employees.

    The increase in the gross minimum wage has an impact on the private environment, because it leads to an increase in spending. Most state institutions do not have employees working on the minimum wage, which means they do not want additional expenses. The government gains from this measure, because higher wages mean higher taxes and contributions to the health and pension budgets. In the EU, there are historical disagreements between member states on the minimum wage, due to different national pay-setting systems. According to Eurostat, in the summer, these incomes ranged from 477 euros/month in Bulgaria (the lowest level), to 2,571 euros/month in Luxembourg. (MI)

  • European integration, enshrined in Moldova’s Constitution

    European integration, enshrined in Moldova’s Constitution

    The Republic of Moldova adopted integration into the European Union as a strategic objective, by amending its Constitution. Approved by the October 20 referendum, the decision was published on Wednesday in the Official Gazette. The magistrates of the Constitutional Court confirmed the result of the referendum on October 31, after the Central Electoral Commission decided it was valid, the turnout at the polls being a little over 50%. The referendum was organized at the initiative of president Maia Sandu, who secured a new mandate following last month’s presidential election. Thus, in the new form, the fundamental law provides that integration into the European Union is a strategic objective of the state, the European course is irreversible, and the identity of the people of the Republic of Moldova is European. The new version of the Constitution also includes the fact that Romanian is the official state language in the Republic of Moldova. Analysts argue that, although pro-Kremlin forces could try to sabotage the European integration of the neighboring state, which has now become a strategic objective, it is hard to believe they will be able to form a majority in the remaining time. Political analyst Andrei Curăraru explains:

     

    “It is clear that pro-Kremlin forces will opt for a tough campaign. We may witness sabotage attempts related to the implementation of the framework of negotiations with the European Union through public demonstrations, rallies, protests that can turn violent, to show even Brussels that the Republic of Moldova, in fact, is not so pro- European Union, and that amending the Constitution does not essentially change the situation in the country”.

     

    In turn, the former president of the Constitutional Court in Chișinău, Alexandru Tănase, believes that amending the Constitution with the provisions voted in the referendum is a decision and a ruling of the Constitutional Court only.

     

    “As long as the Constitutional Court, the only constitutional authority with the power to verify the constitutionality of amendments brought to the Constitution, has ruled that this amendment is legal and legitimate, I don’t see who would bother to consider the point of view of the Kremlin or anyone else’s. Speculations will always be made, they will always try to compromise everything related to the European path of the Republic of Moldova, but that does not mean that it has any practical impact or can call into question the process of amending the Constitution”.

     

    Meanwhile, Chișinău announces a series of measures and reforms after the authorities claim they were the target of a disinformation and vote-buying operation in the presidential election and the referendum on the state’s European orientation. On Monday, President Maia Sandu will hold talks with political parties on the subject of justice reform and the fight against electoral corruption, after last week the Supreme Security Council discussed allegations of election fraud. (VP)