December 17, 2024 UPDATE
A roundup of local and international news.
Newsroom, 17.12.2024, 20:00
A roundup of local and international news.
GOVERNMENT – The pro-European parties represented in the future Parliament in Bucharest continued, on Tuesday, discussions on the governing program. The meeting was attended by representatives of PSD, PNL, UDMR, but also those of USR, who were absent from Monday’s discussions and who are asking for the measures to be adopted and next year’s budget to be first decided. In their opinion, the distribution of responsibilities and positions in the future Government can only be done after discussions on the governing program. The leaders of PSD, PNL and UDMR announced that they have the necessary votes in Parliament to form a majority and a government, in case USR decides to leave the coalition. On Monday, in the first part of the day, the heads of the four parties discussed the draft budget for 2025 with the Minister of Finance, Marcel Boloş, but also the budget execution for the current year. The future governing program should include a series of major reforms, which are to be finalized and made public by Friday, December 20, when the new Parliament is to be convened, the coalition leaders said.
AMBASSADOR – “While there is always more work to do, it is clear Romania has chosen the right path – the European and Euro-Atlantic path – towards democracy, peace, security and prosperity – for all its citizens,” said the US ambassador to Bucharest, Kathleen Kavalec, on Tuesday, at the Romanian Foreign Ministry offices, where she was conferred the Order of the Star of Romania. Ambassador Kavalec extended her thanks to the Romanian Minister of Foreign Affairs, Luminiţa Odobescu, for the collaboration aimed at strengthening the US-Romania strategic partnership. In this context, the US ambassador to Bucharest mentioned some of the objectives achieved together with the Romanian partners, including the strengthening of Romania’s defense capabilities and its role in promoting regional security, fulfilling the requirements of the Visa Waiver program. She also referred to investments, but also to the development of bilateral relations in the fields of education and culture. At the same time, Kathleen Kavalec also highlighted the joint aid offered to Ukraine and the Republic of Moldova, as well as the “remarkable” progress that Romania has made as a member of the EU and NATO and as strategic partner of the United States.
ELECTIONS – Four American senators, both Republican and Democrat, have condemned Russia’s interference in the presidential elections in Romania and expressed their support for Bucharest in the fight for the integrity of the electoral process. The senators assured that the United States stands by Romania, as the country urgently takes measures for free and fair presidential elections. The first round of the presidential elections in Romania was cancelled after it was revealed that the voting had not bee not fair due to illegal practices supported by Russia on social media, especially on TikTok. For its part, the European Union announced on Monday that it adopted the first sanctions in response to “hybrid actions” on its territory, against Russian agents accused of “destabilizing” actions in the EU.
FORESTRY – The new Forestry Code, a milestone of the National Recovery and Resilience Plan, has been adopted by the Parliament in Bucharest. More than seven months after the normative it passed the Senate, the Chamber of Deputies, as the decision-making body, adopted the project. The document, which received over 200 amendments, provides, among other things, for video surveillance of forest roads, imprisonment of up to five years for falsifying forestry computer data and the establishment of the National Forest Registry. The Minister of Environment, Mircea Fechet, said that the measures provided for in the law ensure forest conservation, economic development and new jobs. However, the opposition expressed dissatisfaction with the final form of the project.
PRICES – Romania ranks first in the European price increase rankings. Since the beginning of the year, the country has recorded the largest price increases for food, clothing, footwear, electronics, household appliances and services among all European Union countries. Data from the National Institute of Statistics indicate that food and non-food products increased in price by 5% in November 2024, compared to November 2023, and services by 7.56%. According to Eurostat, over 25% of Romanians’ monthly income is allocated to food, well above the European average, despite the fact that salaries have increased compared to previous years. Romanians spend 30 billion euros annually on consumer goods, such as food, alcoholic and non-alcoholic beverages, and personal and household care products. In the first nine months of 2024, sales of such items increased by 16%, the increase being covered, in fact, only by price increases, as consumption decreased.
RECESSION – Entrepreneurs are drawing attention to the danger of an economic recession in Romania in 2025 and are calling on the future government in Bucharest to take measures. During the debate “Back to the Economy. How Entrepreneurs See 2025”, staged on Monday by the Coalition for Freedom of Trade and Communication, business people recalled that 2024 was an extremely challenging year and recommended that the future government should avoid measures that would excessively burden the business environment, in an attempt to reduce the budget deficit. They also spoke out in favor of more predictability.
