August 17, 2025
The latest in domestic and world news
Newsroom, 17.08.2025, 13:55
Government. The government in Bucharest is moving towards finalizing the second package of measures to reduce the budget deficit, which Prime Minister Ilie Bolojan would like to see adopted by assuming responsibility within two weeks at the latest. Several measures are planned to reduce state spending, including staff cuts in central and local government, but new taxes are also expected to be introduced. For example, parcels delivered from outside the EU with a value of less than €150 will no longer be exempt from customs duties. At the same time, the authorities want to increase health contributions for those with income from self-employment. The measure would apply from January 1, 2026. A flat-rate expense allowance of 30% on gross annual rental income should also be introduced at that time, and landlords who rent on a short-term basis will be required to use cash registers and issue receipts in order to be taxed. Another proposed measure is to increase tax rates on stock market gains, i.e., income from the transfer of securities and transactions in derivative financial instruments. These provisions are in addition to those concerning the taxation of multinationals in the area where they export their profits.
Rating. Fitch’s reconfirmation of the country’s rating is an important encouragement, but also a sign that the danger has not been overcome, Finance Minister Alexandru Nazare wrote in a post after the international agency maintained Romania’s rating in the investment grade zone. In the agency’s opinion, the decision is supported by Romania’s EU membership and capital inflows from the EU, which provide support for real income convergence and external financing. This solidity is offset by large and persistent budget and current account deficits, rapid growth in public debt, political polarization, and fairly high net external debt, the financial rating agency said in a statement. Minister Alexandru Nazare believes that maintaining the rating gives Romanians hope that the direction and measures presented by the authorities are credible. However, autumn will bring other important assessments, from Moody’s and especially the European Commission’s analysis in October, the finance minister adds. One of the priorities of the current government has been for Romania to remain in the investment grade category in order to reduce the cost of financing public debt.
Meeting. President Nicuşor Dan will attend this afternoon’s meeting of the Coalition of the Willing for Ukraine, where the latest developments following the Alaska summit will be discussed. On Saturday evening, the head of state said in a message on social media that a just and lasting peace must take into account the interests of Ukraine and Europeans. “Our position remains unchanged in support of Ukraine and the principles of sovereignty and territorial integrity, and international borders must not be changed by force,” the president said. On Saturday, several European leaders called for “unwavering security guarantees for Ukraine to effectively defend its sovereignty and territorial integrity.” They insist that Russia cannot have a veto over Ukraine’s path to the EU and NATO. Today’s coalition talks are taking place as Ukrainian President Volodymyr Zelensky is invited to Washington on Monday for a discussion on Moscow’s proposals for a peace agreement. The Kyiv leader, who says Russia’s refusal to accept a ceasefire is complicating efforts to end the war, had a phone conversation with president Trump after his meeting with Putin and called for real and lasting peace, adding that the fighting must stop and the killings must end. European Commission President Ursula von der Leyen and other European leaders will be present at Monday’s meeting between Zelensky and Trump.
Gaza. Demonstrations are taking place in several cities across Israel against the continuation of the war in the Gaza Strip and in favor of a negotiated agreement for the release of hostages. Several major roads have been blocked by protesters, including the highway connecting Tel Aviv to Jerusalem, where demonstrators set tires on fire and caused major traffic jams. A huge Israeli flag adorned with portraits of kidnapped people was unfurled in Tel Aviv’s Hostage Square, which has become emblematic since the start of the war in Gaza. For today, which is the first working day of the week in Israel, the main association of hostages’ relatives, the opposition, trade unions, and parts of the business community have called for a general strike in solidarity with those still held captive. They are demanding an end to the government’s plan to take control of Gaza City, arguing that the expansion of the war endangers the lives of the hostages. Israel’s plan to occupy Gaza City has caused international consternation and concern for the fate of the approximately one million Palestinians who would be forcibly displaced. Thousands of Palestinians have fled from Gaza City’s largest neighborhood, which has been bombed increasingly frequently by the Israeli army. A spokesman for the municipal administration told the BBC that the situation there is catastrophic, with limited access to food and water and people fleeing after six days of Israeli air raids, bombings, and demolition operations.
Tennis. Romanian tennis player Sorana Cîrstea (35 years old, WTA ranking 138) defeated American Anna Frey 6-1, 6-0 in the first round of qualifying for the main singles draw of the WTA 250 tournament in Cleveland (Ohio), with total prize money of $275,094. In the qualifying final, Sorana Cîrstea will face Swiss player Rebeka Masarova (26 years old, WTA 105), in a first-time matchup. Romania already has one representative in the main singles draw, Gabriela Ruse, who will play in the first round against American Hailey Baptiste, the eighth seed.
