February 12, 2014
For a roundup of domestic and international news, click here.
Mihai Pelin, 12.02.2014, 12:00
NEGOTIATIONS – Social-Liberal leaders today continue negotiations regarding the new structure of the Government. Social-Democrat leader Prime Minister Victor Ponta has called in favour of a formula with Sibiu Mayor Liberal Klaus Iohannis taking over as Interior Minister and Deputy Prime Minister. Prime Minister Ponta also wants the new Government to have four deputy prime ministers, one for each party in the ruling coalition, namely the National Liberal Party, the Social Democratic Party, the National Union for the Progress of Romania and the Conservative Party. On their part, Liberals want Klaus Iohannis to hold the office of both deputy prime minister and Interior Minister. Vacancies at the Finance, Health and Economy Ministers are also expected to be filled.
THE CAR MARKET – The Romanian car market is in a catastrophic collapse. 11 second-hand cars are being brought in for each new car sold, says vice-president of Dacia Group Renault and head of the Association of Romanian Carmakers Constanin Stroe, currently attending the France — South-eastern Europe Business Forum held in Bucharest. Constantin Stroe went on to say that Romania’s two carmakers, Dacia Renault and Ford, had sold only 20,000 cars of an overall output of 410,000 units in 2013. Constantin Stroe nevertheless believes exports have gone up, with France, Germany, Algeria and Turkey among the top destinations. Romania’s car exports have grown from 16,000 cars in 2004 to over 360,000 in 2013. On the other hand, Dacia Group Renault does not want to leave Romania, a country where it has invested over 2 billion euros, although the French carmaker sees infrastructure as key to its future projects. The announcement follows a statement by president Traian Basescu, who said Romania risked losing its assembly line in Pitesti unless it completed the Pan-European Corridor IV.
MOLDOVA – The Committee on Civil Liberties, Justice and Home Affairs within the European Parliament is today voting the law on lifting visas for Moldovan citizens. Romanian Foreign Minister Titus Corlatean has called on MEPs to ratify by emergency procedure Moldova’s Association Treaty with the European Union, ahead of the vote scheduled for late February in the European Parliament. France also supports Moldova’s EU bid. French Minister for European Affairs Thierry Repetin has called on the EU to quickly dispose of visas for Moldovan citizens.
DEBATE – World Wide Fund for Nature Romania is today holding a debate bringing together experts in public policies and nature conservation. The debate focuses on the European Fund from the 2014-2020 budget allotted to developing natural capital. According to organizers, the debate will also tackle such topics as integrating nature in investment plans, negative examples of spending European money, but also best practices and economic benefits for local communities. Participants will also discuss the next steps with a view to finalizing the Partnership Agreement Romania has signed with the European Commission.
ECONOMY – EU Member States are confronted with a deficit of demand triggered by austerity measures, and need to come up with ways of boosting economic growth, Romanian Minister Delegate for Budget Liviu Voinea has posted on the Financial Times website. The Romanian official claims that last year, demand in the private sector, which was the main engine of economic growth, dropped by 3.9% of the GDP in Slovenia, 2.8% in Bulgaria and Hungary, 2.7% in Poland and 2.3% in Romania. Romania has recently endorsed a lending guarantee scheme for SMEs worth 500 million euros.
TRADE FAIR – A total of 40 Romanian businesses are attending the Agriculture and Organic Products Trade Fair in Nurnberg, Germany. On Thursday, The Bio Romania Association of Farmers will hold a debate entitled “The Danube Strategy — a great opportunity for eco-farming in Central and Eastern Europe”. Romania was designated Country of the Year at last year’s edition of the fair.
NATIONAL BANK OF ROMANIA – Attending a financial meeting held by the National Bank of Romania, Prime Minister Victor Ponta said the Bank was among the few institutions in Romania to have earned respect for its professionalism and political equidistance across the years. On the other hand, according to National Bank statistics, foreign direct investments stood at 2.71 billion euros last year, up by 26.8% as compared to 2012, reaching he highest level in the last four years. The all time high was reached in 2008, when foreign direct investment stood at 9.49 billion euros.
PRESS FREEDOM – Romania went down three places, from 42 to 45, in a press freedom annual index organized by the French organization Reporters Without Borders. The ranking comprises 180 countries. Finland is in first place, followed by the Netherlands, Norway, Luxemburg, Andorra, Liechtenstein, Denmark, Iceland, New Zealand and Sweden. Ranking last are Turkmenistan, North Korea and Eritrea.
