July 12, 2025
A roundup of local and world news
Newsroom, 12.07.2025, 13:55
MEASURES – Romania’s perspective has improved on financial markets after the adoption of the first package of fiscal measures, Romania’s Prime Minister Ilie Bolojan told a press conference. He recalled that the first package aims to increase revenues and cap or even decrease spending. The Prime Minister added that the package for which the Government has assumed responsibility in Parliament refers exclusively to structural components, so that both ECOFIN and market reactions can be probed. According to the Prime Minister, the first package of fiscal-budgetary measures was also welcomed by rating agencies. He presented new fiscal measures aimed at reducing state spending. Among other things, the Prime Minister referred to the reform of commercial state-owned companies and to the amendment of tax legislation to reduce the number of members in management structures. There is also a need to reduce waste in the health sector and reform the public administration, Ilie Bolojan added, announcing that the next package will target, among others, the retirement age of magistrates and special pensions.
STATISTICS – The inflation rate rose to 5.7% in June, from 5.45% in May, according to the National Statistics Institute. Food prices rose by 7.36% in June this year, compared to June 2024. The biggest increase was reported in prices for fruits, approximately 33%, as well as canned fruits, over 25%. Sugar is the only food that has become cheaper in the last year. Prices for non-food goods have also increased by nearly 4% in the past year. The largest increase was in thermal energy, almost 14%, whereas services have increased by approximately 7%. Recently, the National Bank of Romania announced that it expects the inflation rate to increase considerably in the coming months after the liberalization of the energy market and after the increase in VAT and excise duties starting August. Financial analysts estimate that inflation could exceed the 10% threshold by the end of the year.
MOTION – The Romanian Parliament on Monday will debate and vote a vote of no-confidence filed on Thursday in Parliament by the nationalist opposition against the ruling coalition Cabinet led by Ilie Bolojan. The motion is entitled “They ruined the country and now they are forcing Romanians to pay the bill – out with the hypocritical Government”. The initiative was initiated after the government assumed responsibility for the first package of austerity measures designed to reduce the budget deficit. If the motion passes, the Bolojan Government is dismissed. Otherwise, the project for which the executive assumed responsibility is adopted. Thanks to the comfortable number of MPs in the ruling coalition, the government expects the vote to fail.
CONGRESS – Attending the Congress of the National Liberal Party, the president of Romania, Nicuşor Dan, thanked the Liberals for making difficult decisions in difficult times and for keeping Romania on the right track, despite mistakes made during 35 years of democracy. The president also expressed confidence that the current government will manage to steer the country’s economic recovery. “Romania has a dynamic, competitive private sector. Romania has the opportunity to join the OECD and, thus, attract much more foreign investment at the end of next year”, president Nicuşor Dan also said.
ATTACK – At least four people were killed in Chernivtsi, near the northern border of Romania, in a new massive Russian attack on Ukraine, involving hundreds of drones and ballistic missiles launched on Friday night. Several residential and administrative buildings, shops and cars were damaged. The western cities of Lviv and Lutsk were also targeted by the attack. Ukrainian military claims its defenses neutralized 319 drones out of the nearly 600 launched by Russia and shot down 25 of the 26 cruise missiles used in the attack.
DIPLOMACY – Participants in the conference on Ukraine’s economic recovery hosted by Rome have pledged to mobilize new international support worth €15 billion to help this war-torn country. Attending the event, Romania’s Foreign Minister, Oana Ţoiu, said Romania is ideally suited to contribute substantially to the reconstruction, through its institutions and business environment, due to its deep knowledge of the region, its geographical position, its fast-developing energy and logistics infrastructure and the security offered by NATO’s presence in the Black Sea region. The Foreign Minister also reaffirmed Romania’s firm commitment to supporting the EU accession efforts of Ukraine and the Republic of Moldova. The fourth edition of the conference for the reconstruction of Ukraine was hosted this year by the Italian government, after previous editions were held in Switzerland, Germany and the United Kingdom.
PARTNERSHIP – Over July 7-13, the Romanian Embassy in Washington is organizing a series of events marking the anniversary of the Strategic Partnership between Romania and the USA, launched on July 11, 1997. The 4th edition of the largest Romanian festival in the United States, “Romanian Weekend at the Wharf”, is taking place this weekend. American citizens and members of the Romanian-American community will be able to enjoy and take part in folk dance performances and live concerts, demonstrations of traditional crafts, interactive workshops, tourist presentations, exhibitions and food and wine sampling sessions. Launched in 2022, the festival has become Romania’s largest cultural diplomacy project in North America. (VP)
