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November 2, 2016

Romanian economy to see highest growth rate in Europe, according to IMF. / Romanian and US military to take part in Patriot Shock V exercise in Romania.

November 2, 2016
November 2, 2016

, 02.11.2016, 12:00

Public sector pay rise. The budget-finance and labour
committees of the Chamber of Deputies on Tuesday amended an ordinance on public
sector pay rises to extend the rise to education and healthcare employees. The
Chamber of Deputies will vote on the bill next week. The technocratic prime minister
Dacian Ciolos said the salary rises and the elimination of a number of taxes
recently proposed by Parliament ahead of the parliamentary elections of
December 11th will have a great impact on the state budget.




Radio Romania anniversary. On Tuesday, Radio Romania celebrated 88 years since its
first broadcast. The anniversary comes after Parliament passed a new law
according to which the public radio and television services will be funded
exclusively from the state budget. The law, which is still to be signed by the
president, has been criticised by civil society and media institutions from
Romania and abroad, who have denounced its populist nature, given that it comes
ahead of the parliamentary elections in December, and the risk for the two
public stations to be subordinated to political interests.






IMF report. The economic growth rate remains
solid in much of Central, Eastern and Southeastern Europe, credit will pick up
again and inflationary pressures are still low, according to the International
Monetary Fund’s autumn report. The shadow economy has been shrinking in all
states in the region since 2005, in particular in Latvia, Lithuania and
Romania, the IMF notes. The report also highlights the significant progress
made by some states, including Romania, in reducing non-performing loans. With
respect to consumer prices, the IMF estimates that Bulgaria and Romania will
have some of the highest negative average annual inflation rates in the
European Union, but that in Romania, consumer prices will return to positive
values in 2017. The IMF also projects a minus 2% current account deficit in
2016 and a minus 2.8% in 2017. In the case of the Romanian economy, the IMF
expects a GDP growth of 5% in 2016 and of 3.8% in 2017, the highest economic
growth rate in Europe.




Military exercise. Romanian and
American military are taking part in the Patriot Shock V exercise at the Capul
Midia shooting range in south-eastern Romania. A battery of US Patriot missiles
are participating for the first time in an exercise in Romania. This is an
advanced surface-to-air defence system that can be used in the event of an
attack with aircraft, ballistic missiles and cruise missiles and which,
according to the Romanian defence ministry, can detect around 100 targets and
guide up to nine missiles. The US and Romanian military will be testing the
reaction speed in the event of a crisis. The two army detachments will test
their response as part of a fictitious air defence scenario. Also for the first
time, the F-16 aircraft recently purchased by Romania have taken part in the Scorpions
Fury multinational exercise which comes to an end today at a shooting range in
Cincu, in Brasov county, central Romania. 1,300 military from Canada, Germany,
the Republic of Moldova and Romania have taken part, as well as 200 pieces of
technical equipment and 13 Romanian Air Force planes.




Republic of Moldova elections. The pro-Russian Socialist
candidate Igor Dodon obtained 47.98% of the votes in the first round of the
presidential elections in the Republic of Moldova, while the pro-European
reformist Maia Sandu got 38.71% of the votes, according to the final results
made public today. The second round is scheduled for November 13th,
when around 3 million Moldovan voters will elect their president. This is the
first time in the last 16 years that the president is elected by direct vote
and not by Parliament. Commentators say the elections are of great political,
as well as geopolitical importance. Dodon wishes to denounce Molodova’s
integration and free-trade agreements with the European Union and his country’s
joining the Customs Union of Russia, Belarus and Kazakhstan, while Sandu stands
for a reform of the state and European accession.




Europa League football. Two Romanian
football teams will play in the Europa League on Thursday. In Group E,
champions Astra Giurgiu face the Czech side Viktoria Plzeň at home. AS Rome and Austria
Vienna top the group, with 5 points each, followed by Astra with 3 points and
Plzeň with 2. In Group L, vice-champions Steaua Bucharest play against FC
Zurich away. In this group, Villareal lead with 5 points, followed by Osmanlıspor and Zurich,
each with 4 points, and Steaua at the bottom of the ranking with 2 points. (Trans.: C. Mateescu)

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