February 1, 2017 UPDATE

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Newsroom, 01.02.2017, 12:30

ORDINANCE Romanian president Klaus Iohannis on
Wednesday sent to Prime Minister Sorin Grindeanu a letter asking him to
abrogate the emergency ordinance on amending the Penal and Penal Procedure
Codes the government adopted on Tuesday night. The president believes the
Executive’s move has deep negative effects on the functioning of the rule of
law, the anti-graft fight and the integrity of public jobs. Also on Wednesday,
the Higher Council of the Magistrates (CSM) decided to notify the
Constitutional Court on an institutional conflict between the state
authorities. President Iohannis has held talks with CSM members on this issue.
According to the president, the magistrates have been outraged by the way in
which the government has addressed such a sensitive issue, the amending of the
penal legislation through an emergency ordinance at night and without the CSM’s
notification. The opposition parties, the National Liberal Party and the USR, on
Wednesday tabled a censure motion in Parliament under the title The Grindeanu
government – the government of national defiance. Don’t legalize theft in
Romania. MPs from the People’s Movement Party said they would join the
initiative. Romanian capital Bucharest has again seen a series of protest
rallies against the government ordinance. On Tuesday night thousands took to
the streets of Bucharest and other Romanian cities to protest the Executive’s
decision.

REACTION The head of the European Commission
in Brussels, Jean-Claude Juncker, and First Vice-President, Frans Timmermans,
have told the government in Bucharest that the anti-graft fight must advance
and not be undermined. They have called into attention the fact that the
irreversibility of the progress in the anti-graft fight is essential to allow
the Commission to take into consideration the gradual elimination of monitoring
Romania through the Mechanism of Cooperation and Verification. The German
government said it was looking with some concern into the latest developments
in Romania and that by issuing the ordinance on amending the Penal Code, the
Romanian government has ignored the major concerns voiced by the Romanian
president, the country’s legal system and a large part of its population’. The
American Chamber of Commerce in Romania, AmCham, has voiced profound disappointment
towards the procedure of adopting the provisions and effects of the emergency
ordinance on amending the Penal Codes. Its adoption in a non-transparent manner
in spite of the viewpoints and recommendations given by competent institutions
are discrediting the executive, at the same time sending a strong signal of
distrust and uncertainty both at the domestic and foreign level, the AmCham
said.

BUDGET Romanian MPs can bring amendments
to the draft law on the state budget and social insurances in 2017 until Friday
morning while the budget-finance committees are to convene on Saturday and
Sunday to issue a report on these two drafts. On Monday, the Senate and the
Chamber of Deputies will be hosting debates on the drafts and the final voting
is due on Tuesday. The draft state budget in 2017 has been drawn up in keeping
with a 5.2% economic growth and a 3% deficit of the GDP. The government has
forecast an inflation rate below 1.4% and an unemployment rate of 4.3%.
According to finance minister Viorel Stefan, special heed will be paid to
investment, healthcare, education and infrastructure.