The Week in Review, June 30 – July 5

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

România Internațional, 05.07.2014, 14:03

Romania ratifies the association agreement between the Republic of Moldova and the EU

Romania continues to make every effort to help the Republic of Moldova in its attempt to ultimately join the EU. The Romanian Parliament was the first to ratify the association agreement signed by the ex-Soviet republic with the EU. Last week in Brussels, Moldova, Georgia and Ukraine all signed such agreements, and the two chambers of the Parliament in Bucharest, meeting separately in special sessions, voted overwhelmingly in favor of the documents. Foreign Minister Titus Corlatean saluted the prompt ratification, saying it demonstrates the solid and consistent commitment that Romania holds towards the European route taken by the three countries. He also enumerated some of the economic benefits that Moldova will have as a result, considering that the latter is the poorest European country:

Titus Corlatean: “The EC estimates that over the next few years Moldova’s GDP will be growing by an average of 5.4% annually. This is a major figure of growth for a country whose economy is modest. There will be a basis for a substantial increase in Moldovan exports on the EU market, a 16% growth, and Moldovan purchasing power will grow as well.”

Liberal Democrat leader Vasile Blaga spoke about this rare moment when the power and opposition agreed wholeheartedly on a given topic: “The Romanian political class was on the same side of the barricade every time, irrespective of what sets us apart, when it came to Romania’s interests and to the interests of our brothers beyond the Prut.”

The association agreement was ratified by the Parliament in Chisinau in spite of opposition from pro-Russians.

4th of July celebrations in Bucharest

On July 4th in Bucharest, PM Victor Ponta said that the strategic partnership with the US was very important for Romania. He spoke at the reception offered by the American Embassy in Romania’s capital. He added that the US administration sent Romania a message on how important they found the rule of law and the fight against corruption. The latter is a topic that finds its way every time in the public speeches of American officials visiting Romania lately. It was also the subject of the speech held by the US charge d’affaires to Romania, Duane Butcher. He said that the country has made great strides in the fight against corruption, in providing independence for key institutions, and in creating a society of citizens equal under the law .

Electrica goes public

Starting Friday, shares in Electrica, Romanias most important power distribution company, are traded on the Bucharest and London stock exchanges. 51% of the shares have been listed, and the Romanian state holds on to 49% of them. The state so far has obtained around 450 million Euros, which it will use for future investments. This is the first time when a state company was privatized through a capital market. The Bucharest government, speaking through Minister Delegate for Energy Razvan Nicolescu, said that the same model will be applied for future privatization of other large scale state companies, such as the Oltenia Energy Complex or Hidroelectrica. At the same time, another large state company, CFR Marfa, the freight division of the Romanian Railway Company, confirmed it would downsize by 2,500 employees. The restructuring process, according to the management, is a must for increasing the company’s efficiency.

Parliament green lights a reduction in social contributions

The Romanian government’s plan to slash social contributions by 5% for employers has been passed by the Chamber of Deputies unanimously. According to the government, this cut, effective as of 1 October, will stimulate the business environment, and will create new jobs. Romania’s international lenders, the IMF, EC and WB, as well as large trade union federations, did not agree with this measure.

Halep plays in the semi-finals in Wimbledon

Romania’s best female tennis player, Simona Halep, now ranking 3rd in the WTA standings, reached the semi-finals in Wimbledon, the year’s third Grand Slam. She was defeated 7-6, 6-2 in her last game by Eugenie Bouchard of Canada after sustaining an injury during play. If she had reached the finals, Halep would have ranked second in the world. In the previous Grand Slam, in Roland Garros, Halep had reached the finals, only to be defeated by Russian player Maria Sharapova.