August 2, 2023
Click here for a roundup of local and world news
Newsroom, 02.08.2023, 13:55
BUDGET The ruling coalition made up of the Social Democratic Party and the National Liberal Party carry on talks on the fiscal measures that must be implemented in order to reduce the state budget deficit. Overall public expenditure cuts of some EUR 1.2 bln are targeted, concurrently with tax increases by a similar amount. Public institution mergers, the scrapping of 200,000 public sector jobs that are currently vacant, personnel downsizing and cuts in the management allowances paid by public companies are some of the measures considered by the government. The 2 parties have also agreed on 2 VAT rates, 9% and 19%, although a 5% VAT rate will be in place as an exception for books alone. The Social Democrats and the Liberals however differ as regards a proposed additional 1% tax on luxury homes and on the profits of companies with more than EUR 100 mln in turnover.
E-COMMERCE Last year Romanians spent nearly EUR 7 bln online, one-quarter of the amount on clothes and footwear alone. According to a survey, the Romanian e-commerce market comprises a rough 100 online stores reporting over 1,000 orders per day. One in 5 Romanians regularly order online, and 50% of them do so twice every 3 months. In Europe, the share of online shopping rose from 55% in 2012 to 75% in 2022, with the highest increases reported in Estonia, the Czech Republic and Romania.
FORESTRY A new draft Forestry Code was released for public consultation on Tuesday in Romania. The surface areas where forest clearing is banned will be increased approx. 10 fold, and the vehicles that carry wood illegally will be seized. The bill will also enable the government to take over the task of reforesting land that has been cleared and subsequently abandoned by its owners. The measures come after the European Commission initiated an infringement procedure against Romania for failure to implement several environment-related directives.
FOREIGN AFFAIRS The Romanian foreign ministry warns citizens who are traveling or intend to travel to the Italian island of Sardinia that local authorities there have issued a code orange alert for wildfire risks. On the other hand, the ministry also announced it was taking steps to repatriate 4 Romanian nationals from Niger, as the security situation in that country is worsening.
UKRAINE Russia’s continued attacks against the Ukrainian civilian infrastructure on Danube, in the proximity of Romania, are unacceptable. These are war crimes and they further affect Ukraine’s capacity to transfer their food products towards those in need in the world, the president of Romania Klaus Iohannis posted on Wednesday on social media. A Russian drone attack hit Ukrainian port infrastructure in Izmail, on the Danube, close to NATO-member Romania. According to Kyiv, the attack caused fires at the port and industrial infrastructure and damaged the elevator there. Russia started targeting Ukraine’s ports after terminating a UN deal enabling the country’s grain exports via the Black Sea.
UNTOLD Thousands of gendarmes, firefighters, anti-drug and local police officers, as well as 800 private security guards, have been mobilized for the 4-day music festival UNTOLD in Cluj-Napoca, which begins on Thursday, to make sure that safety measures are complied with by all participants. Two mobile hospitals and 3 first-aid stations will be located near the festival site. The line-up for the 8th edition of UNTOLD, one of the largest music festivals in Europe, includes over 250 artists from Romania and abroad. Tens of thousands of music lovers from around the world are expected to attend. (AMP)
