February 17, 2025 UPDATE
A roundup of domestic and international news
Newsroom, 17.02.2025, 18:30
Energy. The Romanian government is to make a decision this week regarding the continuation of the current compensation-capping scheme for electricity and natural gas prices for domestic consumers. The energy minister Sebastian Burduja has stated, however, that the support should be directed to the vulnerable categories of consumers, for whom the payment of utilities is too big a burden. A government decision is to be implemented through an emergency ordinance.
Inflation. The National Bank of Romania has raised its inflation forecast for the end of this year to 3.8%, from 3.5% previously, according to the institution’s latest quarterly report. For the end of 2026, the NBR anticipates a level of 3.1% of the annual inflation rate. Governor Mugur Isărescu explained that starting from the first quarter of this year, including as an impact of the budget consolidation measures, Romania will enter a period of demand deficit – a positive element from the perspective of inflation evolution, which may, however, affect economic growth. He stressed that it is very important that, in combination with the fiscal and monetary policy, this new situation does not lead to recession. Isărescu has also stated that the national currency may slightly depreciate and even exceed the threshold of 5 lei for one euro during this year. The Central Bank Governor has stressed, however, that once internal political tensions are overcome, the leu will remain an anchor of stability, and the Central Bank will allow more flexibility for the exchange rate.
Paris. The leaders of the main European powers have gathered for an emergency meeting in Paris, to discuss European security and the war in Ukraine. Participating are the prime ministers of Germany, Great Britain, Italy, Poland, Spain, the Netherlands and Denmark, the president of the European Council, the president of the European Commission and the NATO secretary general, the French presidency announced. Today’s talks could later be expanded into other formats, with the aim of bringing together all partners interested in peace and security in Europe. The meeting in Paris takes place at a particularly delicate moment in the relationship between the European Union and the United States, after the initiatives taken in recent days by American President Donald Trump and his team to negotiate peace in Europe directly with Vladimir Putin, the European countries and Ukraine being excluded from decision-making, Radio Romania’s correspondent reports. On the other hand, the US Secretary of State, Marco Rubio, stated that Ukraine and Europe would be involved in ‘real negotiations’ for peace. According to Reuters, Rubio’s statement suggests that the meeting between the U.S. and Russian representatives, which will take place in the next few days in Saudi Arabia, is just a move for Washington to feel the room and see if Moscow is really willing to negotiate. The Russian-American talks will begin on Tuesday in the capital of Saudi Arabia, Riyadh, the BBC reports.
Elections. Germany is getting ready for Sunday’s parliamentary elections, in a more polarized climate than ever over immigration, further inflamed by the Trump administration’s open support for the far right, AFP reports. According to surveys, the nationalist anti-immigration movement AfD will take second place in the legislative elections, with at least 20% of the votes, behind the conservatives, who are rated at 30-32%. In a speech delivered at the Munich Security Conference, the U.S. Vice President J.D. Vance urged the traditional parties in Germany, and the classical right in particular, to give up the ‘protective wall’ or ‘sanitary cordon’ that they established after the Second World War to refuse to govern with the extreme right. “I refuse such interference in the German parliamentary elections and in the formation of the government that will follow in Germany. I will not let an American vice-president tell me who I should talk to here in Germany”, said the leader of the Christian Democrats, Friedrich Merz, a favorite in the polls to become the next chancellor. In turn, the social-democratic chancellor, Olaf Scholz, described the intervention of the American vice-president as unacceptable. Instead, AfD leader Alice Weidel welcomed J.D. Vance’s statements and emphasized the similarities between her program and that of the Trump administration.
Tennis. Romanian tennis player Sorana Cîrstea qualified on Monday for the second round of the WTA 1,000 tournament in Dubai (United Arab Emirates), with over 3,660,000 dollars in prize money. Cîrstea (89 WTA) achieved an impressive victory over Russian Daria Kasatkina (11 WTA), with 6-1, 6-4. The Romanian had not achieved a victory against such a highly ranked opponent since May last year, when she defeated the Czech Marketa Vondrousova (6 WTA at that time), in Rome, in the third round. Sorana Cîrstea will play in the second round against American Alycia Parks. The other Romanian player, Irina Begu (78 WTA), who came from the qualifiers, was defeated in the first round by the German player Eva Lys (87 WTA), 5-7, 7-5, 6-3. (MI)
