The Year 2024 in Review

A look back at the main domestic events in 2024

Ştefan Stoica and Eugen Cojocariu, 04.01.2025, 14:00

Electoral marathon abandoned before the end

2024 was announced as a complicated political year from the very beginning, with elections of all types, local, European Parliament, presidential and legislative, but no one anticipated what was going to happen at the end of the year and of the electoral marathon. In June, local elections were held together with the European Parliament elections. The common list for the European Parliament proposed by the Social Democratic Party (PSD) and the National Liberal Party (PNL), the parties in the governing coalition, prevailed over the other competitors. At the local elections, the social democrats and the liberals won, in that order, the most town halls and county councils. The increasingly heated pre-election speech caused a cooling of relations between the Prime Minister and PSD leader, Marcel Ciolacu, and the PNL leader Nicolae Ciucă, both running for president. And then came the shock of the first round of the presidential election, from November 24, when the political system received a severe blow: Ciucă obtained a single-digit score, Ciolacu came only third, an unwanted scenario and a first for the PSD, the head of the Save Romania Union (USR), Elena Lasconi, was ranked second and the winner was an independent who was not very well known, Călin Georgescu. The general astonishment was followed by concern because the latter’s statements betrayed a pro-Russian and anti-Western extremist, an admirer of the fascist, anti-Semitic leaders of interwar Romania and a promoter of a self-sufficient economic system after the model promoted by Ceausescu. Then, the intelligence services, that had kept silent until then, offered what they consider to be the explanation of Georgescu’s unbelievable score: he would have been aggressively promoted on TikTok, in defiance of electoral laws, and the activity of the TikTok accounts that gave him a strong exposure was financed with a lot of money. Everything would have allegedly happened with the involvement of a state actor. Romania, the Foreign Intelligence Service said, was a target of the aggressive Russian hybrid actions. The Constitutional Court canceled the election, which was an unprecedented decision, on the grounds that the entire electoral process was flawed. In Washington, the bipartisan US Senate Committee on Foreign Relations issued a statement condemning Russia’s involvement in the presidential election in Romania. Vladimir Putin’s attack on the Romanian elections is yet another example of the hybrid war he is waging on our European allies and partners, US senators said. In Brussels, the European Commission announced that it would launch official proceedings against TikTok, after interference in the presidential election in Romania, to find out if the platform violated its legal obligation to assess and mitigate risks to the integrity of the elections. 35 years after the collapse of the communist regime, the still young democratic state called Romania is discovering its major vulnerabilities, which requires, according to analysts, adjustments or even deep institutional and constitutional reforms.

A new fragmented Parliament, a coalition government

Bolstered by Georgescu’s success, three self-styled sovereigntist parties, a sweetened formula that covers ultranationalists, populists, isolationist anti-globalists, detractors of the EU and NATO, extremists or conspirators, entered the Romanian Parliament following the December 1 elections and hold a third of the seats. The representative party of this group is the Alliance for the Union of Romanians (AUR). Alerted by the prospect of an anti-Westerner, supported by sovereigntists, winning the presidency, the pro-European parties PSD, PNL, USR and the Democratic Union of Ethnic Hungarians in Romania (UDMR) made a pact against extremism after the first round. And after the cancellation of the presidential election, they decided to form a governing coalition. Following tough negotiations and the elimination of USR from the government formula, PSD, PNL and UDMR agreed on a government, led by the same Marcel Ciolacu, and on a common candidate for the upcoming presidential election in the person of the former liberal leader Crin Antonescu. The current president, Klaus Iohannis, is challenged, with arguments, by politicians, and also by experts, who considered the Constitutional Court of Romania – CCR’s decision to cancel the presidential election questionable, on the grounds that it was not based on proven facts. Organizing new elections is a priority. However, the urgency of the moment is the budgetary-fiscal recovery of the country. At the end of the year, Fitch Ratings confirmed Romania’s long-term currency rating at ‘BBB minus’, but worsened the assigned outlook from stable to negative, which means that another downgrade is possible. The revision of the outlook reflects the political uncertainties, which affect the fiscal outlook, the increase in public debt and the high budget deficit.

Criticized measures to reduce budget expenses

In the last meeting of 2024, the Romanian government adopted an emergency ordinance that provides for measures to ensure economic stability, to responsibly manage the budget resources and to maintain control over public spending in 2025. The document provides for the suspension of state employment, as well as the freezing of pensions and of state employees’ salaries at the level of 2024. Overtime will no longer be paid, and extra pay or bonuses will no longer be granted. The government claims that, through these measures, it wants to reduce budget expenditures by 1% of the GDP, but not to give up improving people’s lives and investments. The government approved the increase from 8% to 10% in the tax on dividends and the reduction of the taxation ceiling for micro-enterprises from 500,000 Euros to 250,000 Euros. Transportation facilities for students were also restricted and fiscal facilities for some categories of employees were eliminated. The major trade union federations, employers’ organizations and student associations harshly criticized the measures taken by the Government.

Very good news regarding the freedom of movement

From January 1, Romania entered the European free travel area with land borders too, after, in March, it had entered Schengen with air and sea borders. The full accession of Romania and Bulgaria was possible because Austria and the Netherlands gave up their opposition. However, for 6 months, alternative or random controls will be maintained. The Romanian authorities say that the country’s Schengen accession means faster movement for citizens, lower logistics costs for companies, increased competitiveness of Romanian products and services on the European market, business opportunities and jobs. The good news from Brussels was doubled by the one from Washington: the Department of State announced that Romania fell below the threshold of 3% rejected visa applications, a threshold imposed by American legislation to access the Visa-Waiver program that allows visa-free travel to the US.

A successful sporting year

2024 was a good year for Romanian athletes, who returned from the Paris Olympics with 9 medals, three gold, four silver and two bronze. World swimming star, David Popovici lived up to his status, winning the Olympic title in the 200 meters freestyle and the bronze in the 100 meters event. In football, things went well too: the national team passed the groups at Euro 2024 in Germany and qualified for the eighth finals. The national team footballers also had a great game in the League of Nations, which gave them chances in the drawing of lots for the World Cup in North America. (LS)