The Week in Review 3-10 May

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

România Internațional, 11.05.2014, 12:20

Trends and forecasts for the Romanian economy

The Romanian Government set January 1st 2019 as the new target for Romania’s joining the eurozone. Meanwhile, the European Commission has improved, for the second consecutive time, the economic growth forecasts for Romania in 2014 and 2015, to 2.5% and 2.6% respectively. The main driving force will be the domestic demand, which is expected to exceed exports. In the coming two years investments are also expected to grow, thanks to better absorption of European funds and the development of major infrastructure projects. The European Commission estimates that in 2014 the inflation rate will stand at 2.4% and in 2015 at 3.3%. The National Bank of Romania also revised the country’s inflation rate target for 2014 down from 3.5% to 3.3%, given that the Romanian economy is consolidating its positive evolution and is embarking on a sustainable growth path. However, the central bank governor, Mugur Isarescu, believes that Romania’s economic growth does not account for the appreciation of the national currency, the leu, against the euro and the US dollar. He thinks the stronger leu is rather a matter of circumstance, partly due to the regional context. Mugur Isarescu also announced that Romania reimbursed the greatest part of the 12 billion euro loan taken from the IMF in 2009 and that it would pay it off next year.

|The Constitutional Court rules on the houses nationalised during the communist regime

Romania’s Constitutional Court ruled that the former owners of houses abusively seized by the Communist regime who resorted to lawsuits to have their property returned, will have to wait for the courts’ final verdict without being able to benefit from the provisions of a relevant law passed in 2013. The Constitutional Court judges decided that this law should not apply to already open cases. The courts are to resolve the cases, mainly to establish the right to and the amount of compensations, and the files will be subsequently submitted to the authorities to issue the title to the property. The Constitutional Court ruling is final and binding.

Protests of the Romanian Post and of Bucharest subway employees

The Romanian Post employees protested Wednesday in Bucharest and other cities in Romania against the way in which the company has been managed by the state in the past years. Post employees demand the resignation of the director general, the adjustment of salaries to inflation, extra hour payments and better working conditions. The trade union leaders announced the protests would continue in the coming period. The debts of the Romanian Post stand at around 45 million euros. The Bucharest subway employees also protested on Wednesday for the 2nd consecutive day, criticizing, among others, the failure of the management to observe the current Collective Bargaining Agreement, and the unilateral modification of the company’s organizational chart.

American company Chevron starts shale gas exploration in eastern Romania

The representative of the American company Chevron in Romania, Thomas Holst, told Radio Romania News and Current Affairs that they started exploration works for shale gas development in the village of Pungesti, in the eastern Romanian county of Vaslui. The Chevron official promised that all European and Romanian laws will be observed and that ground water will not be affected and will be permanently monitored. The locals and environment activists have repeatedly protested the American project, arguing that hydraulic fracturing, used in shale gas exploitation, pollutes the ground water and can cause small earthquakes.

Senate speaker Calin Popescu Tariceanu visits Chisinau

Romania will be the first country to ratify Moldova’s Association Agreement with the EU, as a clear and unequivocal sign of support for this country’s efforts to join the European Union, Romanian Senate Speaker Calin Popescu Tariceanu said on Wednesday during his visit to Chisinau. The Romanian official had talks with president Nicolae Timofti, Prime Minister Iurie Leanca, and with Moldovan Parliament Speaker Igor Corman. Talks focused on EU integration, bilateral energy projects and the developments in the region.

The developments in Ukraine, high on the agenda of Romanian authorities

Romania’s Foreign Minister Titus Corlatean has reiterated Romania’s support for neighbouring Ukraine, underscoring the importance of fully observing the territorial integrity, sovereignty and independence of this country. Attending the European Council meeting of Foreign Ministers in Vienna, Corlatean highlighted Bucharest’s concern with the destabilizing effects of the Ukrainian crisis on the security of the region, including Transdniestr, a separatist province east of Moldova. Corlatean said Romania would be sending its own observers as part of international missions monitoring the Ukrainian presidential elections of May 25. Moreover, Bucharest will contribute to the financial package awarded to Ukraine, as part of the measures aimed at fostering constitutional and legislative reforms and consolidating democratic institutions in that country.