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October 1, 2014 UPDATE

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October 1, 2014 UPDATE
October 1, 2014 UPDATE

, 01.10.2014, 12:05

A 5% cut in social security contributions paid by employers came into effect in Romania, on October 1st. The business community welcomes the measure but investors fear it may lead to further increases in taxes and fees next year, or the introduction of new taxes. Prime Minister Victor Ponta has repeatedly given assurances that the state budget is able to support this measure and that it is likely to create jobs and stimulate the business environment. Also on October 1st, the law on the fiscal amnesty of pensioners, mothers and state employees who received unjustified sums of money following miscalculations by civil servants, has come into effect. The new law will benefit almost 20 thousand mothers, 50 thousand pensioners and 25 thousand state employees.



Almost half of million Romanian students started anew academic year on Wednesday, October 1st. Students are unhappy with the higher taxes, a smaller number of faculties, slashed student transit subsidies and an insufficient number of halls. Education Ministry representatives have announced that the additional funds received under the recent budget rectification will cover the students’ internship scholarships, transit costs and some of their research programs. The new academic year brings along some new legal provisions, such as the reintroduction of part-time PhD programs and the possibility, for universities, to offer postgraduate courses.



Romania’s candidate for the new European Commission, Social Democratic euro MP Corian Cretu on Wednesday received favorable approval from the European Parliament specialized committee. Nominated by the new president of the European Commission, Jean Claude Juncker, for the Regional Policies portfolio, where she is to manage a budget of 350 billion euros between 2014- 2020, Corina Cretu promised to show zero tolerance to fraud. The office of regional policies commissioner focuses on investments, job creation, competitiveness, economic growth, better life quality and sustainable development. According to Brussels the regional policies portfolio is an expression of the EU solidarity with the less developed countries and regions. A euro MP since 2007, Corian Cretu is at present vice-president of the European Parliament. In 3 weeks’ time, the European Parliament will meet in a plenary session to vote the membership of the EC which is to start its mandate on November 1st.



Mr. Jens Stoltenberg took up his post as NATO Secretary General on Wednesday, October 1st 2014. The former Norwegian Prime Minister was appointed by the 28 Allies in March to succeed Anders Fogh Rasmussen as NATO Secretary General. Fogh Rasmussen’s term expired on Tuesday, after 5 years and 2 months at the helm of the Alliance. Jens Stoltenberg was previously Prime Minister of Norway from 2000-2001 and from 2005-2013. He is a strong supporter of enhanced transatlantic cooperation, including better burden sharing across the Atlantic. He sees NATO and the EU as complementary organisations in terms of securing peace and development in Europe and beyond. According to analysts, his vast political experience and his good relations with Russia might help him manage the tense situation created by this country in Ukraine.



Russia will protect its citizens in case of an armed conflict in Transdniester, in the east of the Republic of Moldova, the Russian deputy prime minister, Dmitri Rogozin warned Wednesday in Moscow during a meeting with the so-called president of this self-styled pro-Russian breakaway region, Evgheni Şevciuk. Rogozin is the representative of the Russian President for Transdniester, a region that, after Crimea’s annexation by Russia in March, also called for its annexation by Russia. We recall that Transdniester went out de facto of the Russian authorities’ control in 1992 after an armed conflict that left behind hundreds of dead and that was ended following the intervention of the Russian troops on the side of the separatists. At the OSCE summit held 15 years ago in Istanbul Russia committed to fully withdrawing its troops from the region, but they are still in the region as peace keeping forces.



The former political leader of the Bosnian Serbs, Radovan Karadzic, said Wednesday, at the end of his trial at the International Criminal Tribunal for the former Yugoslavia, that he is not guilty of genocide, war crimes and crimes against humanity which he was accused of, and that the Serb people was being judged in the Hague. Prosecutors asked for a life sentence in the case of Karadzic, and the sentence could be announced at the end of 2015. Karadzic has been tried on 11 counts among which genocide during the Bosnian war (1992-1995) and the massacre in Srebrenica in 1995, extermination, persecution, and the siege of the city of Sarajevo. He rejected all accusations. The trial started against Karadzic, arrested 13 years after the issuance of the arrest warrant, lasted 5 years. The war in Bosnia left behind almost 100 thousand victims and more than 2 million refugees.



Australia announced that its military aviation aircraft would join the US-led coalition in the air strikes against the Islamic State Jihadists in Iraq. Turkey is also likely to join in the effort of the coalition made up of 60 countries and international organizations against the extremist group. The US started the air strikes against the Jihadists on August 8th in Iraq and on September 22nd in Syria. The Americans and their allies have not managed to stop the offensive of the Islamic fighters who have come close to the Iraqi capital where fighting is ongoing at present. In Syria the Jihadists control one third of the territory.

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