May 7, 2018 UPDATE

President Iohannis Monday asked again for resignation of Social Democrat PM, 2-hour strike in Romania's hospitals

Newsroom, 07.05.2018, 20:33

Budget execution report — The Romanian President Klaus Iohannis on Monday asked again for the resignation of the Social Democrat PM Viorica Dancila after the publication of the budget execution report for the first quarter of the year. President Iohannis said that the evolution of Romania’s public finances was totally “unsatisfactory” and that the Social Democrats were unable to set public finances in order. According to Klaus Iohannis the Social Democratic government has not managed to turn Romania’s economic growth of 7% reported in 2017 into a growth of revenues. The national budget is being subjected to immense pressur,e which had to be eased by boosting tax revenues, but the budget execution report shows that their level is lower than that reported in the first quarter of 2017. In exchange, budget expenses have increased, president Iohannis added.

Healthcare – A 2-hour token strike took place in Romania’s hospitals on Monday. Protesters are discontented with the 30% cap on pay benefits and claim that following the implementation of the new pay scheme some healthcare employees lost even 250 Euros from their previous salaries. The protesters also say some categories of the healthcare staff were discriminated against such as orderlies, stretcher-bearers, biologists, pharmacists, radiologists and midwives, as their salaries have not been increased, but only those of physicians and nurses. The SANITAS federation gathered more than 50 thousand signatures, which allows them to start an all-out strike on May 11. In Bucharest, the trade unions’ representatives and the health minister Sorina Pintea held talks on Monday related to the collective labor agreement, another claim of the protesters. Tuesday will see a new round of negotiations between trade unionists and the PM Dancila, the health, labor and finance ministers. The situation in the healthcare system is the subject of a simple motion that was debated in the Chamber of Deputies on Monday. The motion was filed by the opposition Liberal Party against Social Democrat health minister Sorina Pintea. The vote on the motion will be given on Wednesday in the plenum of the Chamber of Deputies.

National Bank — The National Bank of Romania increased the monetary policy interest rate from 2.25% to 2.50% per year starting on Tuesday, shows a central bank communiqué. The key interest rate had not been changed since February when it was raised to 2.25% per year. The national bank also announced an increase in the interest rate for deposits from 1,25% to 1.5% per year and of the interest rate for credits from 3.25% to 3.5% per year staring on May 8. It is the 3rd time this year when the national bank raises interest rates in an attempt to control the inflation rate which in March reached the highest level of the past 5 years. At the same time, the central bank decided to maintain the current level of 8% of the minimum reserve rates applicable to banks’ liabilities in the national currency and in hard currency.

Moscow — Vladimir Putin was sworn in as president of Russia for the 4th consecutive time, on Monday, after winning the presidential election held this March with more than 75% of the votes. His presidential term in office was interrupted, after the first two mandates, by a period of 4 years when he held the position of PM with the current Prime Minister Dmitri Medvedev holding the presidential seat. Putin again proposed Dmitri Medvedev for the position of PM, a position he had held since 2012. According to Radio Romania’s correspondent to Moscow, in the coming days President Putin will announce the makeup of the new government and of the presidential administration, a body which is more powerful than the government itself. The Russian press estimates that Sergey Lavrov will keep the position of Foreign Minster and Sergey Shoigu of Defense Minister, which is a sign of continuity of Russia’s current foreign policy. At the same time, overcoming isolation from the West would be necessary for Putin to achieve his ambitious internal projects, which are the priorities of his new mandate. At political level, Putin’s main task will be to ensure a smooth transition of power in 2024 when, according to the Constitution, Putin will no longer be allowed to run for presidency. The inaugural ceremony was preceded by protests held on Saturday, when as many as 1,600 people were arrested including the leader of the opposition Alexei Navalnay.

Tennis — The Romanian Simona Halep, world’s no. 1 tennis player, on Tuesday will be up against Belgian Elise Mertens (19 WTA) in the 2nd round of the Madrid WTA tournament, which has total prizes worth around 6.7 million Euros. Also on Tuesday another Romanian Sorana Cirstea (36 WTA) will be up against Russian Daria Kasatkina (15 WTA) in the same round. Sorna Cirstea will also play on Tuesday in the women’s doubles together with Sara Sorribes-Tormo of Spain against the pair Julia Gorges (Germany)/Karolina Pliskova (the Czech Republic). On Monday Irina Begu was eliminated in the 2nd round by the Russian Maria Sharapova. Begu is also out of the doubles competition where together witrh Simona Halep lost in the 1st round against the pair Nicole Melichar of the US and Kveta Peschke of the Czech Republic. In the men’s competition, Romanian Marius Copil (92 ATP) will be up against the German Jan-Lennard Struff (65 ATP). In the men’s doubles Florin Mergea and Daniel Nestor (Canada) will play against the pair Fabio Fognini of Italy /Diego Schwartzman of Argentina. (news translated and updated by Lacramioara Simion)