December 31, 2025 UPDATE
A roundup of local and international news.
Newsroom, 31.12.2025, 20:00
MESSAGE – President Nicuşor Dan said Wednesday that in 2026 it is essential for the Romanian state to become more efficient, fairer and closer to its citizens, after 2025 was “a year of trials, anxieties and natural questions”, but also of “resistance and civic maturity”. The head of state acknowledges that “many Romanians have felt the pressure of the rising cost of living, fears about job stability and the uncertainty of an increasingly unpredictable world. These are real and cannot be ignored. But 2025 was, at the same time, a year (…) in which Romania remained firmly anchored in its democratic values and in its European and Euro-Atlantic commitments”. In his New Year’s message, posted on his Facebook page, the President says that 2026 “offers us the chance to renew trust, to correct what has not worked and to build, together, a fairer and stronger Romania (…) Reform, responsibility and competence cannot remain simple declarations of intent, but obligations of the state towards every Romanian. Romania has huge potential. Capitalizing on it requires a common vision, a modern and competitive economy, an efficient administration, an education system adapted to the future, a solid rule of law, which invests in its security and in which high-level corruption no longer finds its place. In essence, a country that respects its citizens. The New Year offers us the chance to renew trust, to correct what has not worked and to build, together, a fairer and stronger Romania.”
LEADER OF THE YEAR – The President of the Republic of Moldova (ex-Soviet, mostly Romanian-speaking), the pro-Western Maia Sandu, was named the world leader of the year by the respected British publication “The Telegraph”. The motivation presented was “her decisive role in defending democracy and in countering the pressures and interference of the Russian Federation and bringing the Republic of Moldova to the front line of defense of European democracy”. In an interview with the publication, Maia Sandu explains that the Republic of Moldova is one of the few states that has experienced the full range of methods of Russia’s hybrid attacks. But the target, she also says, is not the Republic of Moldova, which is just the testing ground, the target is Europe, democracy on the continent being in danger. Regarding the possible peace agreement in the neighbouring Ukraine, invaded by Russian troops, Sandu warns that the lack of real pressure on Moscow risks producing not peace, but only a temporary pause.
DEFENSE- Romania joins the states contributing with 50 million euros to the United States’ proposal regarding the list of priority acquisitions needed for the defense of Ukraine, according to a decision adopted by the government. The allocation is made in compliance with the budget ceiling for 2025, according to a press release of the Ministry of Foreign Affairs. Thus, the contribution of the aforementioned mechanism will support, by strengthening Ukraine’s capacities, the achievement and maintenance of lasting peace in this country. The program allows for joint allocations from the NATO budget and is a continuation of the allied initiatives following the Helsinki Summit, a priority reiterated including during the visit of Secretary General Mark Rutte to Romania, the Mninistry specifies. The institution also emphasizes that Romania’s participation in the American mechanism directly contributes to strengthening regional and national security, including by increasing institutional interoperability, deepening military and civilian cooperation with the United States and Allies, as well as by strengthening the capacity to respond to hybrid and conventional threats.
GOVERNMENT – After the last government meeting in 2025, Prime Minister Ilie Bolojan took stock of his activity at the head of the Bucharest Government. He recalled that he took office at a complicated time for Romania and was forced to adopt a series of unpopular measures, such as increasing VAT, freezing revenues and eliminating some bonuses. The Prime Minister believes, however, that if the money is spent prudently next year, there will be no need for tax increases. He points out that 2026 will also be a difficult year, but he estimates that things will be better than this year, because public finances have been put in order. However, he adds, spending must continue to be kept in check.
BIRTH RATE- Romania recorded an increase in the birth rate in the second half of 2025. According to data published by the National Institute of Statistics, over 56,300 children were born between July and October 2025, 8% more than in the same period in 2024. According to INS data, September 2025 recorded the highest number of births, with over 14,600 newborns. The evolution is all the more relevant as the birth rate has been, in recent years, one of the most sensitive topics for Romania, amid a sharp decline.
COUNCIL – Cyprus will take over the rotating presidency of the Council of the European Union for six months on 1 January 2026. With the motto “A self-reliant Union open to the world”, the Cypriot presidency inherits, according to commentators, from its predecessor, Denmark, the defence of Europe as one of its main priorities. Nicosia will seek to accelerate the implementation of the “White Paper on European Defence”, published by the European Commission in March, which sets out a roadmap for strengthening long-term military capabilities and cooperation. For the Cypriot government, these must be complemented by strengthening transatlantic relations and cooperation between the Union and NATO. Supporting Ukraine, so that it can defend itself against Russian aggression, will also remain an “absolute priority”, Cypriot President Nikos Christodoulides recently promised. International news agencies recall that this is the second time that Cyprus, a Mediterranean island located about 100 kilometers from the Asian coasts of Syria and Lebanon, a nation with just over one million inhabitants, a member of the EU since 2004 and of the eurozone since 2008, holds the presidency of the community bloc. The first time, in 2012, Cyprus assumed this responsibility in the midst of the so-called debt crisis, which forced it to request financial assistance from its partners to stabilize its banking sector.
EUROZONE – Bulgaria will join the eurozone on Thursday, January 1, 2026, becoming the 21st country to adopt the European Union’s single currency, an integration that some fear will fuel inflation and exacerbate political instability, international media report. Over the summer, a protest movement called for “keeping the Bulgarian leva” emerged. Led by far-right and pro-Russian parties, it is capitalizing on Bulgarians’ fears about rising prices. According to the latest opinion poll conducted by the EU’s Eurobarometer, 49% of Bulgarians oppose the single currency. This concern is particularly palpable in poor rural areas. But according to successive governments that have promoted its adoption, the euro will boost the economy of the European Union’s poorest country, strengthen its ties with Western Europe and protect it from Russian influence. The Balkan country of 6.4 million inhabitants, a member of the European Union since 2007, faces significant challenges following anti-corruption protests that recently toppled yet another coalition government, in power for less than a year.
TAXES – Romanian city halls had until Wednesday to set the value of local taxes and duties in 2026, otherwise risking sanctions, through the loss of funds, according to an emergency order adopted by the government. In Bucharest, the General Council established that the taxable value of buildings will increase by approximately 80%. Building owners in Timişoara (west) will also pay more by the same percentage, where the city hall has also eliminated discounts granted depending on the age of the building, as well as other facilities granted to certain categories of owners. In Cluj-Napoca (northwest), the municipality will apply increases ranging between 58% and 71% depending on the area, and in Constanţa (southeast) the Local Council approved tax increases ranging between 50% and 80%, as well as increases in other local taxes. From 2027, taxation would be based on market value, according to the reform assumed under the National Recovery and Resilience Plan. (EE)
