January 28, 2024 UPDATE

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Newsroom, 28.01.2024, 20:00

IMF An International Monetary Fund mission
headed by Jan Kees Martijn will be in Bucharest
between January 29 and February 1, to review the latest economic and financial
developments. The previous IMF visit to Romania was last autumn, when IMF
experts conducted their annual analysis of the Romanian economy. At that time, Jan
Kees Martijn said estimates were pointing to a budget deficit of 6% of GDP for
the end of 2023, and of 5% in 2024, as well as to an economic growth rate of 2.3%.
Romania has no ongoing agreements with the IMF at present, but the Fund
conducts regular visits to review financial and economic indicators. The PM Marcel Ciolacu voiced optimism with
respect to the IMF’s assessment. He explained that Romania still has problems
meeting a benchmark in the National Recovery and Resilience Programme, as the
EC believes Romania has too low SME taxation levels.

DRUGS The Romanian justice minister Alina Gorghiu requested the
emergency endorsement of the bills against drug trafficking and drug use. A
first bill concerns the set-up of the Drug Trafficking Register and of regional
rehab centres for drug addicts. A second bill eliminates suspended sentences
for drug trafficking. On Friday, after the Justice and Home Affairs Council,
the interior minister Catalin Predoiu announced that Romania set up a task
force integrating several institutions involved in the fight against drug
trafficking. He said Romania is on the front line of the crackdown on
international drug trafficking networks, and welcomed the Council’s decision to
include Romania’s and Bulgaria’s air and maritime borders in the Schengen area.
According to the Romanian official, EU member countries should focus on curbing
drug trafficking in ports, through an integrated international platform.

PRICES In Romania, the mark-up for basic foodstuff prices may be capped
for another 3 months. The announcement was made by Marcel Ciolacu recently, as
the capping scheme is due to come to an end soon. According to the PM, a
decision will be made following talks with all stakeholders. The agriculture
minister told Radio Romania that a discussion in this respect will be held on
Monday. He explained that according to data made public by the National
Statistics Institute and the Competition Council, the measure has been
effective. The agriculture minister added that the introduction of further
products in the list is being considered. The emergency order passed by the
government last summer in order to contain the effects of inflation saw the
temporary capping of mark-ups for several basic foodstuffs, including bread,
milk, yogurt, flour, eggs, chicken and pork. The measure was subsequently
extended and further products were included.

UN The UN secretary general, Antonio Guterres, Sunday called on the
countries that have suspended funding for the UN agency for Palestinian
refugees (UNRWA) to ‘at least guarantee’ the continuity of UNRWA operations,
which are vital for 2 million people, AFP reports. The UN body, which is the
main provider of humanitarian aid in Gaza, Friday announced firing a number of
employees accused of involvement in the Hamas attack in Israel on October 7,
2023. In turn, the director of the UN body, Philippe Lazzarini, warned that the
vital assistance granted by UNRWA is about to end because of funding issues. Israel
demands the resignation of Philippe Lazzarini and the termination of the
agency’s work in Gaza after the war. A number of countries, including the US, Canada,
UK, Italy and Germany, have suspended all future funding to the UNRWA.

GAC The state secretary for European affairs with the
Romanian foreign ministry, Daniela Gîtman, takes part in the General Affairs
Council (GAC) meeting in Brussels on Monday. The agenda includes a policy
debate on the legislation devoted to safeguarding European democracy, and the
presentation of the priorities of the Belgian presidency of the EU Council,
followed by an exchange of opinions between the participating ministers and
state secretaries for European affairs. The GAC meeting will also include a new
round of talks on country reports, under the annual rule of law dialogue.

UKRAINE Six months after the start of the Russian invasion, Ukrainian
defence officials and corporate executives tried to embezzle USD 40 mln
intended for arms procurement, according to SBU, Ukraine’s main security and
intelligence agency, quoted by international
news agencies. The attempted embezzlement took place in August 2022, with the
money originally earmarked for the procurement of 100,000 mortar rounds, which
were never delivered. One of the suspects was apprehended while trying to leave
the country, SBU announced. Ukraine has seen several corruption scandals since
the start of the war in February 2022. In August 2023, president Volodymyr
Zelenskyy dismissed all the regional officials in charge with army enrollments, on
grounds that they were providing recruitment exemptions for money. Curbing
corruption is one of the main conditions that Ukraine must meet in order to
join the European Union.

RUGBY The new manager of Romania’s rugby team, David Gerard
(FR), announced the 32 players selected for the national team’s debut match in
the 2024 Rugby Europe Championship. According to the website of the Romanian
Rugby Federation, only 26 of them will travel to Poland. In Rugby Europe
Championship, Romania plays in Group B, alongside Portugal, Belgium and Poland.
The first match, in Poland on February 4, will be followed by 2 home games,
against Belgium (February 10) and Portugal (February 17). (AMP)