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April 5, 2023 UPDATE

A roundup of domestic and international news

NEWSFLASH
NEWSFLASH

, 05.04.2023, 20:00

Law. The Romanian Chamber of Deputies has adopted with 191 votes in favor, 66 against and 12 abstentions the bill amending the Criminal Code and focusing on office abuse and negligence in the service. The law eliminates all the amendments previously adopted by the Senate, including the introduction of a money threshold for offenses that constitute abuse of office, as requested by the Constitutional Court. The Senate had previously introduced a €50,000 threshold, which the Justice Ministry subsequently reduced to €1,800. The legal committee on Tuesday discarded this amendment as well as the introduction of a threshold for offenses that constitute negligence in the service. The Chamber of Deputies is the decision-making forum in this matter.



Tanks. In Bucharest, the Ministry of National Defense requested the Parliaments prior approval for the purchase of 54 modernized Abrams tanks from the American army, including the related ammunition and training simulators. The purchase will take place through a “Government to Government” agreement. The increase in the defense budget to 2.5% of the GDP starting this year created the conditions for the initiation of endowment programs strictly necessary to accelerate the modernization of the Romanian Army, the request states.



Aid. Romania will contribute another 750,000 dollars to the Voluntary Fund for Strengthening the Defense Capacity of the Republic of Moldova addition to the contribution of 600,000 dollars granted last year. The announcement was made on Wednesday, by the Romanian Foreign Minister Bogdan Aurescu, at the North Atlantic Council in Brussels. According to a statement from the Ministry of Foreign Affairs, the sum adds to a new contribution of 830,000 dollars for the Voluntary Fund for the Comprehensive Assistance Package for Ukraine, announced on the first day of the NATO meeting. Wednesdays discussions in Brussels focused on the implementation of the decisions made at the Madrid Summit, support for Ukraine and strengthening cooperation with other partner states, NATOs “Open Doors” policy and the allied commitment to fair sharing of responsibilities – the Ministry of Foreign Affairs announced.



Moldova. The European Commission has approved the second tranche of 50 million euros for the Republic of Moldova, out of the total aid of 150 million intended to maintain the macroeconomic stability of the country. The financial support is intended to help the Republic of Moldova, which is directly affected by the consequences of Russias aggression against Ukraine. The European executive specified that the Republic of Moldova has fulfilled the conditions to which it committed itself in order to receive the financial aid: it has strengthened the governance of the public administration and met the conditions regarding public investments. Also, the Chisinau government has made progress in the financial sector, by adopting a new public strategy. Another positive development was observed in the field of compliance with the law and the fight against corruption.



Car insurance. The Romanian Government has passed the draft decision on capping the mandatory car insurance fees for six months at the level of February 28th, 2023. Already postponed twice in the last eight weeks, the document is needed to stop the rampant increase in civil liability car insurances, the government argues. The measure was taken after the Financial Supervisory Authority decided to withdraw the license of Euroins, the company that held one third of the car insurance market in Romania. The decision to cap the fees was made to protected drivers from an experience similar to that two years ago, when another leader on the market, City Insurance, went bankrupt and the fees rocketed.



Inflation. The National Bank has decided to maintain its monetary policy interest rate at 7% per year, also preserving the reference interest rate for Central Bank loans at 8% per year, and for deposits at 6% per year. The decision reflects the latest macroeconomic developments. The Bank forecasts an increase in the annual inflation rate over the coming period. The inflation rate dropped from 16.37% in December 2022 to 15.52% in February 2023, which largely corresponds to the Banks forecast. (MI)

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