The Week in Review 02-08.02
Anti-corruption investigations target high profile figures in Romania
România Internațional, 07.02.2015, 14:02
In Romania, the increasing number of high-level corruption cases has grabbed headlines this week as well. Prosecutors have heard high profile politicians and business people and the list expands by the day. Charges against parliament member Elena Udrea, former minister and presidential candidate, range from influence peddling to bribe taking, on top of money laundering and financial statement fraud, in two separate corruption files. Anti-corruption prosecutors filed for a pre-emptive arrest warrant in her name, in the famous Gala Bute and Microsoft cases and Parliament will convene on Monday to decide on whether to lift her immunity or not. Udrea denied all accusations. Also this week judge Toni Grebla resigned his position in the Constitutional Court as prosecutors asked for his criminal investigation. Among the charges against him is favouritism, use of information barred from disclosure and allowing unauthorized persons access to information for the purpose of obtaining money or undue benefits. On Wednesday, President Klaus Iohannis green-lighted the prosecution of former Economy Minister, the Liberal Democrat Adriean Videanu, held under preventive arrest for his involvement in another corruption case, on charges of abuse of office. Videanu was released on Friday morning and is subject to legal restrictions pending trial. These are only a few of the resounding corruption cases being currently investigated in Romania.
Improved economic growth forecast for Romania
The European Commission has improved its forecast regarding Romania’s economic growth this year, raising it at 2.7%, which is 0.3% higher as compared with the previous forecast. This economic growth rate, followed by another 2.9% growth rate in 2016, is to be mostly supported by domestic demand and the gradual recovery of global economy. Private consumption is expected to remain robust, against a favourable background of increased salaries, low inflation rates and improved conditions on the labour force market, the EC report reads. Private and public investment is also expected to grow in pace with the volume of exports.
Two NATO command and control centres to be set up in Romania
NATO will set up six new command posts on its eastern borders and create a 5,000-strong rapid reaction force in an effort to show resolve and solidarity in the face of what the alliance brands Russian aggression in Ukraine, the Alliance’s Secretary General Jens Stoltenberg announced. Two of these command and control centers will be set up in Romania. Romanian Foreign Minister Bogdan Aurescu hailed the NATO decision to set up command units in Romania and five other allied countries – Bulgaria, Poland, Estonia, Latvia and Lithuania. According to NATO chief Jens Stoltenberg, this is the biggest reinforcement of the Alliance’s collective defence since the end of the Cold War.
Romania and the jurisdiction of the International Court of Justice
The Senate in Bucharest has cast a favourable vote on the draft law under which Romania accepts the compulsory jurisdiction of the International Court of Justice — the UN’s main legal body and one of the most prestigious international courts, founded 70 years ago. Until last year 70 countries, including 21 EU members, had accepted the jurisdiction of the International Court of Justice. Through this unilateral move, Bucharest has gained, among other things, the right to bring before the Court in the Hague, another country, which accepts the same jurisdiction. The decision proves that Romania conducts its international relations in strict compliance with the rule of law, the head of the Romanian diplomacy, Bogdan Aurescu, told the Senate in Bucharest. We recall that six years ago, Aurescu won a suit in the Hague against Ukraine on the delimitation of the Black Sea continental shelf.
Financial decisions in Romania
The Authority for Consumer’s Protection in Romania has recently been flooded by complaints from bank clients with loans in the Swiss franc who are now unable to pay back their credits. An eventual conversion to the historic rate of all foreign currency loans – as desired by the borrowers — would create 10 billion lei in losses, Central Bank governor, Mugur Isarescu said. According to him the situation calls for individual solutions, as the cases of those with loans in the Swiss currency are different from one another. In the meantime, the Central Bank has trimmed the monetary policy interest rate down to an all time low of 2.25% per year. Central Bank officials have explained that inflation rate remains under the estimates, whereas loaning shows no signs of recovery. The Central Bank has also cut the interest rates on short terms for its bank clients by 0.50% in a bid to balance a provisional currency shortage. The annual interest rate following the implementation of the new loaning facility stays at 4.25%.
