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January 31, 2017

President critical of national security budget / Romanian ship leads NATO Black Sea maneuvers

January 31, 2017
January 31, 2017

, 31.01.2017, 13:46

BUDGET — Romanias Higher Defense Council was called into session by President Klaus Iohannis to analyze the draft budget for national security institutions for 2017. The head of state pointed out that the new governments plan to slash national security funding is a grievous error, affecting the safety of citizens. The PM said that the executive has supporting arguments for the budget as it stands. Right after the councils meeting, the government is set to meet in order to pass the budget, while the leadership of the two chambers of Parliament will schedule a meeting to set the calendar for debate. This is the first Higher Defense Council meeting under the Grindeanu cabinet.



CORRUPTION — The highest court in Bucharest could issue today a sentence in the prosecution of former Liberal MP Ludovic Orban, who is accused of demanding money from a businessman to finance his campaign, run last summer. The National Anti-Corruption Directorate is seeking a jail sentence, claiming Orban used his political position to obtain campaign funding. The politician said he was innocent, and filed for a dismissal. Magistrates with the High Court of Cassation and Justice have delayed the first court hearing in the case of Social Democratic Party chairman Liviu Dragnea, who stands accused of conspiracy to commit abuse of office. Prosecutors claim that Dragnea ordered two members of his party to be hired in state jobs with the office of social protection in his home county of Teleorman. Last year, Dragnea was given a suspended sentence, two years in prison, for attempting to rig the 2012 referendum to depose then president Traian Basescu.



NAVY — Romanian frigate the King Ferdinand heads maneuvers in the east of the Black Sea, attended on Wednesday by over 2,800 seamen from NATO member countries. The exercise Sea Shield is the first of 50 large scale navy exercises planned by NATO this year. Attending the exercise are 16 ships, one submarine, and 10 Romanian and allied aircraft. Vice Admiral Clive Johnstone, head of the Allied Maritime Command, will be attending the maneuvers in Constanta, the largest Romanian port on the Black Sea. At the same time, it was announced in London that one of the most important Royal Navy ships will have its first operating mission in the Black Sea since the Cold War. Allied maneuvers in the Black Sea take place almost three years since Russia annexed the Crimean Peninsula.



ECONOMY — In January, confidence in the Eurozone reached its highest level in the last six years, as announced by the European Commission, according to Bloomberg. The index indicating consumer and business confidence went up from 107.8 to 108.2 in December, more than anticipated by Bloomberg expert estimates. The report states that confidence in industry and services went up in January, while confidence in retail and construction went down. This increase in economic confidence is added to further data suggesting that the Eurozone economy has accelerated in the last months of 2016. Many economists estimate that the Eurozone economy had in the fourth quarter a growth 0.5% higher than the same quarter the previous year, with a 0.3% higher growth in the third quarter.



TAXES — The newest provisions introduced into the Fiscal Code come into effect on February 1st in Romania. They were put into law by emergency executive order. They eliminate 102 charges and fees, the most well known being the radio and television fee and the tax on registering automobiles. Also in February, Romanians earning the minimum wage, almost 1.6 million citizens, will get increased salaries. Local public authority employees will get a 20% raise. A number of further measures come into effect on 1 February, such as eliminating the ceiling for social and health contributions and taxation for real estate deals worth under 100,000 Euro.


(Translated by Calin Cotoiu)



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