The Week in Review, 22-28 June

A look back at the weeks top stories in politics, economy, society, culture and sports.

Roxana Vasile, 28.06.2014, 13:04

Top level scandal in Romania

On Wednesday, the Romanian Parliament adopted a political statement calling on president Traian Basescu to resign, against the background of the corruption and influence peddling scandal involving his brother Mircea Basescu. Social Democrat senator Gabriela Firea presented the statement to the public:

“Worried about the huge impact that the scandal involving the president’s family has on the very credibility of the Romanian state, the Romanian Parliament makes the following political statement: the President of Romania, Mr. Traian Basescu, is no longer entitled to ensure the prestige, independence and legitimacy of the presidential office, that is why he must immediately resign from the office of President.”

Supporting the idea of the president’s resignation were the MPs representing the left wing, namely the Social Democratic Party, the Conservative Party and the National Union for the Progress of Romania, and also the Dan Diaconescu People’s Party and the Liberals, in opposition. The Liberal Democratic Party and the pro-presidential opposition did not participate in the voting. The declaration is not legally binding and therefore the president is not obligated to resign. Actually, Traian Basescu had previously announced he would not comply with the request, as he did not intervene in the case and was not responsible for his brother’s actions.

The Republic of Moldova, Georgia and Ukraine are closer to the EU

Romania’s President Traian Basescu turned the support for Moldova’s European integration efforts into a priority of his term in office. Alongside Georgia and Ukraine, the Republic of Moldova, a former Soviet country with a predominantly Romanian-speaking population, signed in Brussels at the weekend the Association and Comprehensive Free Trade Agreement with the EU. Russia regards the document as a ploy for the three countries to come out of its sphere of influence. In Brussels, on the other hand, the event has been termed as historic.

The Association and Comprehensive Free Trade Agreement will favour a better European integration of those countries, both politically and economically. It will also create a cooperation framework in such fields as trade, security policy and culture. The agreement is for something and not against somebody, said the acting president of the European Commission Jose Manuel Barroso, also stating that the EC has solemnly committed to standing by the Republic of Moldova, Georgia and Ukraine in their efforts to turn into modern, stable and prosperous democracies.

Romania has a new transport minister

Starting this week, the Romanian Government has a new Transport Minister, namely Ioan Rus. Among the measures that the new minister has placed on top of his working agenda, is curbing the improper use of material and human resources. Ioan Rus:

“We will start by cutting losses. By turning more competitive, we will be able to reach the proper level of performance and thus compete with the European rail, road, air and sea transport services.”

Ioan Rus has replaced Dan Sova, who has resigned. According to Prime Minister Victor Ponta, he will also be the spokesperson for the Social Democratic Party.

Fresh economic measures

Good news for the Romanian business sector. This week the Romanian Senate has adopted a draft law regarding the reduction of the employers’ contribution to the social security fund by 5%. If the document is endorsed by the Chamber of Deputies as well, it will be put up for plenary voting in early July, to then come into force on October 1st. According to the Government, this measure will help employers secure funds that can be used to create jobs, will increase the number of contributors to the fund and will stimulate the business environment. The Romanian Government has also passed an ordinance allowing for the reduction by half of payments to banks for those who have problems reimbursing their loans. Prime Minister Victor Ponta says the state will bear this financial burden.

“We will cover this by deducting from the tax the additional interest and this new support for those who have debts to banks. It will help us socially, and also economically, because there will be more money left in the economy, and this is extremely important.”

Also, the government decided to restore the pensions and salaries that were cut when the economic crisis started, as well as to increase the minimum wage to around 205 euros.

Electricity supplier Electrica is listed on the Stock Market

After a string of failed privatisations, the Romanian authorities are now happy to have successfully listed on the stock market 51% of the shares in Electrica, the main distributor of electricity in Romania. The demand was actually twice as big as the offer. The government thus hopes to get some 460 million Euros, to be used for the investments that the company needs in the coming years. The privatisation of Electrica is the first one achieved through the Stock Market.

Heavy rainfall again wreaks havoc in Romania

The second half of this week has again seen a code yellow warning issued by meteorologists and hydrologists. And indeed, the country has been affected by heavy rain, strong winds and high risk of flooding in south, southwest and southeast. Hail has broken windows and damaged the roofs of hundreds of households, and the strong gusts of wind have felled down trees, which have in turn damaged cars. The basements of many blocks of flats have been flooded, gardens and green houses destroyed, and even rail transportation has been hampered in some regions.