June 4, 2014 UPDATE
Click here for a round-up of domestic and international news
România Internațional, 04.06.2014, 12:10
US DEFENSE SECRETARY VISITS ROMANIA- US Defence Secretary, Chuck Hagel, who is paying a visit to Romania, is due to meet his Romanian counterpart, Mircea Dusa on Thursday, in the Romanian Black Sea Port of Constanta. The talks will focus on the military dimension of the Strategic Partnership between the two countries, laying emphasis on the US support granted to Romania in the current context, against the backdrop of the latest developments in its eastern neighbourhood, the importance of reassuring measures, at allied level and the operation stage of US projects unfolding in Romania. The two officials will also visit the USS Vella Gulf cruiser, which is in the Port of Constanta until June the 6th, as it participates in drills alongside NATO allies, as part of cooperation in the field of security. Chuch Hagel is also due to meet Prime Minister Victor Ponta. Hagel’s visit succeeds the visits paid to Romania last month by NATO Secretary General Anders Fogh Rasmussen, the CIA deputy director, Avril Haines, and US vice-president, Joe Bidden.
THE EURO– Romania does not meet two of the five convergence criteria to switch to the Euro, namely those regarding inflation and the exchange rate. However, it complies with those referring to the budget deficit, the public debt and long term-interest rates, the Convergence Report issued by the European Commission on Wednesday shows. 6 other EU member states, Bulgaria, the Czech Republic, Croatia, Hungary, Poland and Sweden don’t meet the necessary conditions to switch to the European single currency. According to the European Commission, these countries’ situation will be reassessed in the following two years. According to the convergence report, Lithuania has met all criteria and consequently, the Euro zone will have 19 members as of January the 1st, 2015.
THE US PRESIDENT’S EUROPEAN TOUR– The EU will sign, by June the 27th at the latest, the economic part of the Association and Deep and Comprehensive Free Trade Agreement with Ukraine, the President of the European Council, Herman van Rompuy announced in Brussels, ahead of the G7 Summit, devoted to the Ukraine crisis. The President of the European Commission, Jose Manuel Barroso, has said the EU is ready to host, next month, a meeting securing international support for Ukraine. The US President Barack Obama is also in Brussels, for the G7 Summit. Earlier in Warsaw, he had promised to Ukraine’s new president elect, Petro Poroshenko, an additional military aid against threats by pro-Russian separatists, backed by Moscow. The two officials also discussed a plan to restore peace, boost economic growth and reduce Ukraine’s energy dependence on Russia. Obama deplored Russia’s “obscure tactics” and “aggression” in Ukraine. The US president reiterated in Warsaw on Wednesday his country’s commitment to the security of its East-European allies, among which Romania. On Tuesday, Obama announced that he would propose to Congress to approve the allocation of one billion dollars for the deployment of new US forces in the region.
UKRAINE- Kiev authorities are considering the possibility of declaring martial law in the regions of Donetsk and Luhansk, where the army has mounted a strong counter-offensive against pro-Russian separatists. The airport in Donetsk, which should have re-opened its doors on June the 6th, will continue to be closed down until the end of the month, because of the conflict in the region. The offensive continued on Wednesday near Sloviansk, a hotbed of pro-Russian separatism. In another development, forces loyal to the self-proclaimed Republic of Luhansk have occupied a military base in this city.
IMF MISSION TO BUCHAREST- Talks continue in Bucharest between Romanian authorities and the joint delegation of the IMF, the European Commission and the World Bank, which is in Bucharest on a new mission to assess Romania’s standby agreement concluded with these institutions last autumn. IMF representatives on Tuesday discussed technicalities at the Finance Ministry and met with National Bank officials. Talks focused on monetary policy, inflation and the stability of the banking sector. IMF officials also met with the members of the joint parliamentary budget and finance committees. The main topic of interest was the Government’s intention to cut back 5% on employers’ social security contributions, as well as means of implementing this measure without increasing the budget deficit.
ECONOMY- Romania reported a 3.8% economic growth in the first three months of the year, up by 0.1% as compared to the last quarter of 2013, recent data made public by the National Institute of Statistics read. Industry had the largest contribution to the increase of the country’s GDP, accounting to 2.3%. According to the report, constructions, financial mediation services, insurance brokerage, professional activities and administrative services have had a negative impact on the evolution of the gross domestic product.
ARREST- National Anti-corruption Prosecutors have detained the director of the Agency for Payments and Intervention in Agriculture Dorel Benu and the head of the Suceava Police Department as part of a corruption case involving the misuse of EU funds. Benu faces corruption allegations in some 240-court cases, referring to illegal subsidies granted to natural and legal persons, as well as to certain parishes and monasteries. A total of 20 people are currently being investigated.
TENNIS- The best Romanian woman tennis player of the moment, Simona Halep, ranked 4th in WTA standings, on Wednesday qualified for the semi-finals of the Roland Garros tournament in Paris, the second Grand Slam of the year. In the quarterfinals, Halep defeated Russian Svetlana Kuznetsova, ranked 27th in WTA standings, 6-2, 6-2. Halep will meet in the semi-finals German Andrea Petkovici, who defeated Italian Sara Errani, 6-2, 6-2. In the doubles event, the pair made up of Romanian Florin Mergea and Croat Marin Draganja will play Marcel Granollers and Marc Lopez of Spain.
