August 17, 2025 UPDATE (I)

The latest from domestic and international news

Newsroom, 17.08.2025, 19:25

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 as of 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 added. 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.

Ukraine. The leaders of the coalition supporting Ukraine met on Sunday afternoon in a videoconference to prepare for Monday’s meeting in Washington between Presidents Zelensky and Trump. Along with the Kyiv leader, European Commission President Ursula von der Leyen, NATO Secretary General Mark Rutte, and several other European leaders will travel to the US for this meeting. The White House will discuss the conditions for ending the war in Ukraine, following the recent Trump-Putin summit in Alaska. Among other things, the Europeans will ask Donald Trump to what extent he will join the security guarantees, according to President Macron. Volodymyr Zelensky also participated in Sunday’s videoconference, at which Romania was represented by President Nicuşor Dan. He was previously received in Brussels by President Ursula von der Leyen, who, at a joint press conference, said that Europe would support Ukraine for as long as necessary to achieve a just and lasting peace. Unity between Europe and the US is vital to achieving lasting peace for Ukraine, said European Council President Antonio Costa. “As I emphasized during the Coalition of the Willing meeting, if no ceasefire is agreed upon, the EU and the US must increase pressure on Russia,” Antonio Costa said in a message on X. “We need real negotiations, which means we can start where the front line is now,” said Volodymyr Zelensky, who reiterated his position that a ceasefire must be established in order to then negotiate a final agreement. At the end of his summit with Vladimir Putin on Friday, Donald Trump announced that his efforts were now focused on drafting a peace agreement that would end the war without going through a ceasefire.

Gaza. On Sunday, demonstrations against the continuation of the war in the Gaza Strip and in favor of a negotiated agreement for the release of hostages took place in several cities in Israel. Several major roads were 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. 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. The Palestinian group Hamas has said that Israel’s planned relocation to Gaza constitutes a “new wave of genocide and displacement” for hundreds of thousands of residents in the area.

Schengen. Romanian police officers, in cooperation with their partners in Schengen countries, identified over 400 individuals, 35 vehicles, and 54 documents flagged in the Schengen Information System during the first part of the month. According to a statement from the Romanian Police, eight European arrest warrants were also executed. At the same time, foreign authorities found 122 people wanted by Romania, some of whom were subject to arrest warrants, and 10 missing persons. We remind you that since January 1, with Romania’s full accession to the Schengen Area, border controls with Hungary and Bulgaria have been lifted, with checks now possible through the e-DAC electronic application.

Tennis. Romanian tennis player Sorana Cîrstea (35 years old, WTA ranking 138) defeated Swiss player Rebeka Masarova (26 years old, WTA 105) in a first-time duel in the final of the qualifying rounds for the main singles draw of the WTA 250 tournament in Cleveland (Ohio), with $275,094 in prize money. Romania already had one representative in the main singles draw, Gabriela Ruse, who will play in the first round against American Hailey Baptiste, the eighth seed. (MI)