July 11, 2025 UPDATE

A roundup of local and international news.

Newsroom, 11.07.2025, 20:00

Austerity. Prime minister Ilie Bolojan on Friday unveiled new fiscal measures to cut state spending. He spoke, among others, about reforming companies in which the state has a majority of shares and amending the fiscal legislation to reduce the number of members of management boards. He said waste has to be reduced in the healthcare system and that public administration has to be reformed. He announced that the next measures taken by the government will refer, among others, to the retirement age for magistrates and the special pensions. On Monday, the government assumed responsibility in Parliament for a first package of fiscal measures to reduce the budget deficit. It will come into force on 1 August and provides, among other things, for an increase in VAT rates and excise duties on fuel, alcohol and tobacco.  Protests have been staged this week in Bucharest and across the country against the austerity measures taken by the government. According to the latest report by the international rating agency Moody’s, Romania’s budget deficit could reach 7.8% of GDP this year and 6.1% in 2026, if all three sets of measures announced by prime minister Ilie Bolojan are fully implemented.

Friendship. In a social media post on the Day of Friendship between Romania and the United States, Romania’s president Nicuşor Dan describes his country’s strategic partnership with the United States as “strong”. “Our partnership is strong because it is a dynamic relationship, which has continued to grow, responding to common priorities, as well as regional and global developments”, president Dan posted. He added that  he is confident that through joint efforts, bilateral investments and business opportunities will increase, security and defence cooperation will be consolidated and the “excellent” collaboration in the field of nuclear energy will continue. Prime minister Ilie Bolojan said the partnership with the United States is an essential pillar of Romania’s foreign and security policy and a guarantee of its stability and prosperity. In these complicated times at regional and global level, he added, Romania and the US will continue to work together to defend democratic values, consolidate Euro-Atlantic security and ensure stability in the Black Sea region.

Partnership. Between 7 and 13 July, the Romanian Embassy in Washington is organising, for the 4^th consecutive year, events marking the anniversary of the Strategic Partnership between Romania and the United States, launched on 11  July, 1997. On Friday, the American think-tank Heritage Foundation hosted a roundtable discussion on the future of the Romania-US Strategic Partnership. The event covered topics related to a solid partnership in the field of security and defence, as well as the growing cooperation in the energy, trade and business sectors, with an emphasis on Romania’s role in the Black Sea region. The week will end with the 4^th edition of the largest Romanian festival in the United States, Romanian Weekend at The Wharf, in which American citizens and members of the Romanian-American community will be able to enjoy folk dance performances and live concerts, demonstrations of traditional crafts, interactive workshops, tourist presentations, exhibitions and food and wine tasting.

Reconstruction. Romanian Foreign Minister Oana Ţoiu on Thursday and Friday attended the Conference on the Reconstruction of Ukraine, co-organized in Rome by Italy and Ukraine. According to a press release from the Romanian Foreign Ministry in Bucharest, the conference was dedicated to the presentation of international plans and investments in the reconstruction, reform and modernisation of Ukraine. Oana Ţoiu said that Romania is well positioned to have a substantial contribution to the reconstruction, via its institutions and business environment, and thanks to its knowledge of the region, its geographical position, its fast developing energy and logistical interconnection infrastructure and the security provided by NATO’s presence in the Black Sea region. The minister also reiterated Romania’s commitment to the integration of Ukraine and the neighboring Republic of Moldova into the European Union.

Inflation. The inflation level rose to 5.7% a year last month in Romania, from 5.5% in May, said the National Institute of Statistics. This is the highest level this year. Food and services saw the highest rise in prices, of over 7 percent, and fuel rose by an average of one percent. Recently, the National Bank of Romania said it expected the inflation rate to go up considerably in the coming months following the liberalisation of the energy market and the increase in VAT and excise duties from August 1^st. Financial analysts estimate that the inflation rate may even pass 10% by the end of the year. (CM)