August 3, 2025 UPDATE

A roundup of local and international news.

Newsroom, 03.08.2025, 20:00

MEASURES – The second package of measures to reduce the budget deficit remains in the attention of the Bucharest Government and the coalition in the coming week. At the same time, the first budget rectification is expected and, at the request of the Social Democratic Party (PSD), significant funds could be redirected for some local development projects. Discussions will also continue on the draft law proposing to increase the standard retirement age of magistrates to 65 years, but also to reduce the amount of pensions for this professional category. The Executive’s announcement triggered a wave of protests by magistrates. The Higher Magistracy Council (CSM) believes that the expected changes will lead, in the long term, to the destruction of the justice system. In turn, the Judges Forum Association estimated that the changes proposed by the Government could lead to the immediate retirement or resignation of over 1,000 magistrates.

AUSTERITY – The Romanian authorities remind that the package of fiscal measures that came into force at the beginning of this month also includes the elimination of some categories from the list of those who benefit from free health insurance. Thus, people who receive certain forms of support will have their contribution withheld, while for co-insured persons, that is, the husband, wife or parents without income of a person who pays the health contribution, an annual amount of 2,430 lei per year (about 500 euros) must now be paid, which covers 10% of the value of six minimum gross salaries in the economy. Also, some pensioners will now pay health insurance as 10% will be withheld from pensions higher than 3,000 lei (600 euros). Also from the beginning of this month, VAT has increased from 19% to 21% and there is a single reduced VAT rate of 11% for basic food, firewood, medicines, books, thermal energy or in the hospitality sector. Excise duties on alcohol, tobacco and fuels have increased by 10%. On the other hand, in education, the teaching norm has increased by 2 hours, the amount for hourly payment has decreased, and the school scholarship system has been modified, with a decrease in the number of beneficiaries.

EVALUATION – The work of department heads in state hospitals will be evaluated according to performance criteria, just like that of the managers of hospital units. The announcement was made by Health Minister Alexandru Rogobete, after serious irregularities were discovered at the burns centre of a hospital in Bucharest, where several patients were infected with a dangerous bacteria. The Health Ministry launched an investigation there after a relative of a patient with serious burns complained about poor hygiene conditions. The hospital and the cleaning company it had contracted were fined 60,000 lei (12,000 euros).

RESTORE – The Minister of Investments and European Projects, Dragoş Pâslaru, announced, in a post on a social network, that he will activate the European RESTORE Mechanism, put in place for major natural disasters, in the context of the floods in the Romanian counties of Suceava and Neamţ. This is the first time that this instrument will be used in Romania and will allow the rapid relocation of millions of euros of European money to the affected areas, to support the restoration of infrastructure, housing and small entrepreneurs in the area, the minister said. Three people died, hundreds of houses were destroyed or damaged, and the road and electrical infrastructure in the affected localities suffered major damage. So far, humanitarian aid from the state reserve, food, drinking water, modular buildings, clothing, diesel and other essential products have been sent to the two counties. The government allocated amounts of up to 30,000 lei (6,000 euros) per family and deployed emergency personnel in the area.

CHILDREN – The Government in Bucharest has recently approved new measures to prevent the separation of children from their families, including those with parents working abroad. According to the Ministry of Labor, the initiator of the legislative changes, the concrete steps that underlie the procedure for identifying children at such risk have been established. Thus, all cases will be registered in the National Child Observatory, part of an IT system developed by the national authority in the field, for centralization and monitoring. If, following the assessment of a child and their family, the public social assistance service finds them in a situation of vulnerability, a service plan is drawn up for at least 12 months, a period during which it is mandatory to support the parents in raising and caring for the child, the Ministry of Labor also announced.

VATICAN – Pope Leo XIV celebrated an open-air mass in Rome on Sunday in front of more than 1 million young pilgrims, at the close of the Jubilee of Youth, an event held as part of the “Holy Year” organized every 25 years by the Catholic Church and which has attracted believers from around the world, France Presse reports. The Vatican said that 450 bishops and about 700 priests took part in the mass. The pilgrimage of young Catholics took place about three months after the beginning of Pope Leo XIV’s pontificate and 25 years after former Pope John Paul II organized the previous similar gathering in Rome. (EE)