THE WEEK IN REVIEW
7-11 April, 2025
Roxana Vasile, 12.04.2025, 13:00
NBR Decisions and Warnings
The National Bank of Romania decided this week to maintain the monetary policy interest rate at 6.5% per year. It also decided to keep the interest rates at which commercial banks can borrow from the NBR or receive for amounts held in central bank accounts at 7.5 and 5.5 percent per year, respectively. The Central Bank drew attention to the fact that Romanians are facing increased uncertainties and risks based, among others, on inflation, national fiscal and income policy, labor market conditions, but also developments in the external environment, amid the prolongation of the war in Ukraine and the situation in the Middle East. Added to these are the trade policy of the American administration and the measures adopted in response by other states, which are likely to affect the course of the global economy and international trade. Specialists in the field do not rule out, moreover, the possibility of a recession in 2025. In their opinion, the absorption of European funds, mainly those from the PNRR, could at least partially counterbalance the negative effects of geopolitical conflicts. As Romania’s attractiveness for investors and the dynamics of foreign investments in Romania are slowing down, currently reaching a level close to that during the pandemic, also this week, the country’s interim president, Ilie Bolojan, had a meeting with representatives of the Foreign Investors Council. They called for predictability, transparency and legislative clarity.
Romania and trade negotiations with the USA
Stock markets, including those in Romania, recovered after US President Donald Trump announced that he would suspend the so-called reciprocal customs duties for three months for most trading partners and that he would maintain only the 10% one on almost all imports. The exception is China, for which American taxes have reached 145%. In recent days, stock markets have experienced significant declines due to fears that the trade war triggered by the US on a large scale will lead to the global economy entering a recession. Bucharest announced that it supports the European Union’s negotiations with the United States, in order to reach a solution that would limit the effects of the increase in customs tariffs. According to interim president Ilie Bolojan, estimates show, however, that the national economy would not be significantly affected, because it does not have a significant export component to the US. However, in this context, the dynamics of Romania’s Gross Domestic Product have changed. The National Institute of Statistics has revised downwards the economic growth estimates for the 1st, 3rd and 4th quarters of 2024. The signs for 2025 are not very encouraging either, with economists estimating, at best, a growth of 0.5%.
Romania – 21 years in NATO
Since 2004, the year it joined the North Atlantic Alliance, Romania celebrates NATO Day on the first Sunday of April. This year, the Foreign Minister recalled that the accession began with the invitation at the Prague summit in 2002, and came into effect by obtaining membership at the Istanbul summit in 2004. NATO remains the guarantor of our collective defense, and Romania’s commitment to respecting its obligations within the Alliance is unwavering – said, in a message, interim president Ilie Bolojan. He added that Bucharest has respected its commitment and increased the Defense budget to over 2% of GDP, and in the future, it aims to gradually increase this contribution, in conditions of budgetary balance and with the support of European instruments. On NATO Day, Defense Minister Angel Tîlvăr also highlighted the importance of joining the North Atlantic Alliance, which has brought Romania the most solid security guarantees.
A new stage in the construction of the National Cathedral
On Tuesday, the cross was consecrated and mounted on the main spire – Pantocrator – of the monumental Orthodox Cathedral under construction in Bucharest. With a height of 7 meters and a weight of about 7 tons, the cross was placed with the help of a heavy-duty crane. Now, the National Cathedral has a maximum height of 127 meters, which makes it one of the tallest places of worship in Europe. The cathedral will be consecrated on October 26, in the context of the fact that this year marks 140 years since the Romanian Orthodox Church became autocephalous and 100 years since it was elevated to the rank of Patriarchate. Let us also say that Romanians are preparing for the feast of the Resurrection of the Lord, which this year is marked on April 20 by both the majority Orthodox and by Catholics. On Sunday, the feast of Palm Sunday, which commemorates the triumphant entry of Jesus Christ into Jerusalem, and precedes Holy Week, street processions will take place throughout the country, attended by an impressive number of believers.
Romanian books at home and in the world
Romania is present with an imposing stand this weekend, from Friday to Sunday, at the Paris Book Festival, the largest literary event of the year in France. The Romanian stand, organized by the Romanian Institute of Literature in collaboration with the Embassies of Romania and the Republic of Moldova in France, invites the public to a journey into Romanian literature of yesterday and today. Books are also highly regarded in Romania as well, in Cluj-Napoca (northwest), where the Gaudeamus Radio Romania Caravan stopped this week. Publishers from the country and abroad have prepared meetings with writers, book launches, and special projects dedicated to excellence in education for those interested. The book market in Romania reached 120 million euros last year, and this is also due to the organization of events, such as the Gaudeamus Radio Romania Book Fair, which compensates for the decreasing number of bookstores and the inefficient distribution of books.
