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June 12, 2014 UPDATE

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June 12, 2014 UPDATE
June 12, 2014 UPDATE

, 12.06.2014, 12:05

IMF — The IMF has postponed to November the third assessment mission of Romania’s standby agreement with this institution, Romania’s Prime Minister Victor Ponta has told “Bloomberg News”. According to Victor Ponta, the IMF expects to see a final draft budget for 2015 before making the third revision of the agreement. Prime Minister Ponta went on to say that the good economic results obtained in 2013 and in the first quarter of this year have facilitated talks with Fund officials, confirming the decision of Romanian authorities to continue structural reforms, particularly in the field of energy and transports, and to seek new ways of boosting foreign investment. The joint delegation of the IMF, the European Commission and the World Bank is currently in Bucharest until June 16 to assess Romania’s standby agreement concluded with the three international lenders.



INVESTMENT — The European Commission on Thursday approved the disbursement of 409.5 million euros from the European Fund for Regional Development for the completion of the construction works to expand Bucharest’s underground transportation network. The project provides for the construction of 6.7 km of subway and 10 stops. The main beneficiaries of the project are some 335,000 inhabitants of Drumu Taberei district in Bucharest. The European Commission estimates some 3,000 jobs will be made available under the project. Over the 2014-2020 period Romania was earmarked some 22,9 billion euros by the European Union, funds disbursed under the Cohesion Policy programme.



MOLDOVA — European Commission president Jose Manuel Barroso expressed hope that Russia would remain an important partner for the Republic of Moldova, even after this country would sign the Association Agreement with the European Union on June 27. Barroso said that citizens of the separatist regions of Transnistria and Gagauzia, currently opposing the signing of the Treaty, should also recognize the importance of this document. Barroso made these statements upon his visit to the Moldovan capital city Chisinau, where he signed four agreements under which Moldova will be granted financial assistance worth 50 billion euros. The money will be used to implement a line of reforms. The agenda of the EU official also included talks with the leaders of the pro-Western administration in Moldova, but also with pro-Russian opposition leaders.



IRAQ — The Romanian Foreign Ministry has expressed its deep concern regarding the developments in Iraq and the deterioration of the region’s security, particularly in the northwest of the country. Escalating attacks in the regions of Fallujah and Mossul represent a direct threat to the security and stability of the Iraqi state, and has the potential to destabilise the entire region. The Romanian Foreign Ministry has expressed its full support for Turkey as a Strategic Partner of Romania, and has called for the immediate release of all people held by Islamist rebels. The rebel troops currently controlling Fallujah and several sectors in the Western province of Al-Anbar are now de facto controlling the Ninive province in the north-east and Tikrit city, 140 km away from Baghdad, forcing some 1 million people to flee the country. Rebel forces stormed the Turkish embassy in Mossul, taking 49 Turkish citizens hostage, including the Consul. Turkey has called on NATO to convene in an emergency meeting to discuss the latest developments.



REPORT ON DEMOCRACY — According to a recent report made public by Freedom House in the United States, Romania is the only EU Member State to have reported an improvement in the democratic process. After the failed attempt to impeach the president and the political tensions of 2012, Romania’s domestic politics has now resumed its normal course, the document also reads. The report sees the backward steps in matters of democratic governance as a general tendency in Eurasia and the Balkans, as well as in post-communist Central Europe, where existing corruption and political clientelism have made their presence felt last year.



PROTESTS — Employees of the METROREX trade union are today picketing the headquarters of the Government, protesting against the intention of the Romanian authorities to pass METROREX from the authority of the Ministry of Transport to the Bucharest City Hall. Protesters also say no salaries have been increased in over five years, while employees have willingly given up certain financial benefits provided for in the collective bargaining agreement. Protesters have warned that failure to meet their demands might lead to an all-out strike.



ARREST — Romanian businessman Dan Adamescu remains under pre-emptive arrest after the High Court of Cassation and Justice has ruled out his appeal. The decision is final. Ranked as the second richest Romanian, Adamescu was placed under a pre-emptive 30-day arrest on June 6. Adamescu is being charged for giving 20,000 in bribes to two judges in exchange for favourable rulings in court cases regarding the insolvency of companies Adamescu owned shared in.

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