October 26, 2023 UPDATE

A roundup of domestic and international news

Newsroom, 26.10.2023, 20:00

SUMMIT – Romanian president Klaus Iohannis is attending the
European Council meeting and the Euro Summit in extended format in Brussels on
Thursday and Friday. High on the agenda for talks are the situation in Ukraine,
a review of the Multiannual Financial Framework, economic aspects, migration
and the EU’s foreign relations with emphasis on the crisis in the Middle East,
the developments in the South Caucasus, Kosovo and Serbia and in Sahel. Regarding
Ukraine, European leaders are expected to endorse, among other things, the EU’s
multidimensional support and president Iohannis will underline Romania’s
decision to carry on its support for Ukraine and plead for the continuation of
the EU assistance to this country as long as it needs. The Romanian official is
expected to support the opening of EU-accession talks for Ukraine and the
Republic of Moldova by the end of this year. The Euro Summit will include talks
about the economic situation at a European level.

LAW – President Klaus Iohannis on Thursday
ratified the law on fiscal and budget measures to ensure long-term financial
sustainability. On September 26, the Government assumed responsibility over
this law package, aimed at reducing the squandering of public spending and
ending the way the powerful and the rich see themselves as untouchable, says
Prime Minister Marcel Ciolacu. On September 29, USR and the Force of the Right
in opposition as well as two Liberal MPs referred the law to the Constitutional
Court, which rejected their notification. Under the new law, the VAT for
certain goods and services will go up, in addition to the excise duties on
cigarettes and alcohol. All employees are now expected to contribute to the
health insurance budget. Public sector employees with incomes above 1,600 EUR
will no longer receive holiday vouchers and food allowances, while the position
of head of office will be eliminated. Workers in IT with incomes below 2,000
EUR will be exempted from paying taxes. A special tax on luxury items such as
real estate and vehicles will also be introduced. Large companies with
turnovers beyond 50 mln EUR will pay an additional 1% tax on profit. Banks too
will pay an additional tax of 2% per profit in 2024 and 2025.

VISIT – Prime Minister Marcel Ciolacu paid a
visit to Brussels on Thursday, meeting European Commissioner for Transport,
Adina Vălean, and European Commissioner for Economic Affairs and Customs, Paolo
Gentiloni. Talks focused on major reforms and investments using European
funding, the recently adopted budget measures and Romania’s economic prospects.
Commissioner Vălean referred to Romania’s record-high rate of EU fund
absorption, saying she would work with Transport Minister Sorin Grindeanu to
find ways to make additional funds available for large infrastructure projects.
Prime Minister Marcel Ciolacu said he agreed with Paolo Gentiloni that Romania
should continue to keep its budget deficit in check. The European Commission is
a reliable partner for Romania, and we need to use all the available funds,
Marcel Ciolacu also pointed out.

TRANSPORT – The new bridge over the Danube, linking
Giurgiu in Romania to Ruse in Bulgaria, should include both road and rail
traffic, Transport Ministry State Secretary Ionuț Săvoiu said. This technical
solution is also supported by the European Commissioner for Transport, Adina
Vălean. The announcement follows in the context of long wait times on the
Friendship Bridge on the Romanian-Bulgarian border, which is 70-year old and
gets overcrowded. Talks are ongoing between the two states in order to kick off
a feasibility study. The Bucharest-Giurgiu rail track, closed in 2005, is
expected to reopen in spring next year. A new bridge of the Argeș River, in
Grădiștea, will replace the one destroyed by the latest flash floods. The
infrastructure department of the Romanian Railways announced it has secured 500
mln EUR worth of EU funding to modernize and electrify the rail line linking
Bucharest North Station to Giurgiu Station. (DB & VP)