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October 6, 2021 UPDATE

A roundup of domestic and international news

Newsflash
Newsflash

, 06.10.2021, 20:00


COVID-19 – Romania on Wednesday
recorded almost 15,000 new Covid infections and 331 related fatalities, while
more than 1,500 Covid patients are in intensive care. The incidence rate hit a
new record high in the capital Bucharest, nearing 11 per 1,000 inhabitants from
6.33 last week. The incidence rate is over 10 in 10 cities around the country.
The healthcare system is under unprecedented pressure, with hospitals
struggling to find beds for new admissions.




FORECAST – The World Bank improved its
forecast on the evolution of the Romanian economy this year to 7.3%, according
to its latest forecast for Europe and Central Asia. For next year, the World
Bank is expecting a 4.1% growth rate. In 2023, the World Bank is expecting
Romanian economz to grow by 3.9%. As for Europe and Central Asia, it says a
surprisingly strong recovery in the first half of the year boosted economic
activity on emerging markets and developing countries, with regional economy
expected to grow more than estimated to reach 5.5% this year.




FINANCE – The decision of the
National Bank of Romania to increase the key interest rate to 1.5% per year, up
from 1.25%, came into force on Wednesday. The central bank is thus trying to
keep in check the recent steep growth of the inflation rate, which has exceeded
estimates. According to the National Bank, the situation is the result of price
hikes, especially electricity and natural gas, and, while it cannot influence
these developments, it can intervene in areas that it can control. The Bank
forecasts that the price of energy products will continue to grow, with the
inflation rate hitting significantly higher values than expected. Official data
show that the annual inflation rate passed 5.2% in August.




POLITICS – Romania’s minority
government formed by the National Liberal Party and the Democratic Union of
Ethnic Hungarians in Romania and led by the Liberal Florin Cîţu was ousted
following Tuesday’s no-confidence vote. 281 out of Parliament’s 318 MPs voted
against the government. The motion was initiated by the Social Democrats in
opposition and also got the votes of the Save Romania Union, until recently in
the coalition government, and the Alliance for the Union of Romanians. In his
first public reaction after the vote, president Klaus Iohannis said Romania is
facing a health as well as a political crisis and invited political parties for
consultations next week to nominate a
new prime minister.




SUMMIT – Romania’s president Klaus
Iohannis attended the informal autumn summit of the European Council and the
EU-Western Balkans summit hosted by Brdo, Slovenia. EU leaders together with
the six partners in the Western Balkans discussed the global role of the EU.
Talks focused on the developments in Afghanistan, the security agreement
between the United States, the United Kingdom and Australia (AUKUS) , as well
as relations between the European Union and China. Klaus Iohannis referred to
ensuring stability, security and resilience for the EU, as well as the key role
of the trans-Atlantic relation, as part of the same community of values. The
Romanian president also spoke about the need to quickly come up with solutions
at EU level with respect to soaring energy prices.




NOBEL – Researchers Benjamin List
from Germany and David W.C. MacMillan from the United States on Wednesday were
awarded the 2021 Nobel Prize in Chemistry for their development of a new tool
for molecular construction called organocatalysis. The Nobel Awards week kicked
off on Monday, when researchers David Julius and Ardem Patapoutian were
bestowed the Prize in Medicine for their discovery of temperature and touch
receptors. On Tuesday, the Nobel Prize in Physics went to researchers Sykuro
Manabe, Klaus Hasselmann and Giorgio Parisi for groundbreaking contributions to
our understanding of complex systems. The Royal Swedish Academy of Sciences
will award the Nobel Prize in Literature on Thursday and the Nobel Peace Prize
on Friday. The Riksbank Sveriges Award in Economic Sciences will be announced
on October 11. (CM & VP)


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