January 5, 2025
A roundup of local and international news
Newsroom, 05.01.2025, 14:00
BUDGET – The government seeks to set the final details for the draft budget for 2025 by the end of the month, so that the new Parliament may debate and vote on the law in a special sitting. The government relies on a budget deficit of 7% of the GDP, as per a deal with the European Commission, without taking additional fiscal measures. The authorities need to slash public spending and carry out reforms stipulated in the Recovery and Resilience Plan. The government wants to freeze salaries in the public sector as well as child-rearing allowances. Party funding will also be cut by 25% compared to the previous year. A hiring freeze will be introduced in the public sector, while certain institutions will undergo a restructuring process. The tax on dividends is expected to go up from 8% to 10%, while a new tax on special constructions will be introduced. Pensions too will see no increase this year, with the reference point expected to stagnate at 16 EUR. The authorities also seek to cut overspending by 1% of the GDP, tantamount to some 19 bln EUR, but also to boost budget revenues by implementing reforms provided in the Recovery and Resilience Plan.
ELECTION – Former PNL leader, Crin Antonescu, says the ruling coalition agreement for supporting his candidacy in the 2025 presidential election is de facto suspended. Antonescu told a private TV station on Saturday that he won’t withdraw from the race, but that he noticed the four political leaders who nominated him “did not make a powerful enough commitment when signing the agreement”. We recall that on December 23, ruling coalition parties (PSD, PNL, UDMR and the group of national minorities) agreed to support Crin Antonescu’s candidacy in the 2025 presidential election, with the executive bodies of each party being expected to vote the decision. The first round of the presidential election is scheduled for March 23, while the second round will take place on April 6, with the authorities expected to pass a decree on this matter by January 7.
FLU – Medical experts have again recommended mass-vaccination in school children resuming classes after the winter holidays, given that hospitals are overcrowded with patients diagnosed with the flu virus, with very high waiting times in emergency wards. In the last week, 57 thousand cases of flu, pneumonia or other respiratory infections have been identified. The flu virus runs rampant across Europe as well. Additional temporary inpatient units were set up in France in a number of hospitals to ease pressure on emergency wards. Doctors say we are dealing with a sizable epidemic, while most cases are reported in unvaccinated people. A similar situation is reported in Spain, where overcrowded hospitals are bracing for the epidemic to peak soon.
STUDY – Over the next four years, Romania will take part in a study on the relevant skills needed to become better integrated on the labor market and actively contribute to society. Carried out by the Organization for Economic Cooperation and Development (OECD), the project seeks to assess and compare basic skills in adults aged 16-65 from various countries in order to have a better understanding of the level of literacy and skills required to solve digital problems. The findings of the study will be used to develop education and training policies, to adapt to labor market requirements, reduce gaps in skill development and support social inclusion.
AUSTRIA – Austria’s Chancellor, Karl Nehammer, announced he would resign over the coming days after talks between the People’s Party (ÖVP) and the Social Democrats (SPÖ) collapsed following the surprise withdrawal of the liberal Neos party from coalition negotiations. Karl Nehammer said the Conservatives and Social-Democrats could not agree on key policies, and said he would also step down as party leader. The far-right Freedom Party (FPÖ) won September’s election, but Karl Nehammer and the other parties ruled out the possibility of forming a ruling coalition with this party.
HANDBALL – The Romanian men’s handball team is today playing Georgia in the Carpați Trophy tournament, hosted by Mioveni (south). In the other match scheduled today, Turkey is playing Serbia. On Friday, Romania grabbed a 35-26 win over Turkey, while on Saturday it drew 31-31 against Serbia. Serbia tops the ranking with the same number of points as Romania, although separated by a superior goal-average ratio. (VP)
