July 14, 2025 UPDATE
A roundup of domestic and international news
Newsroom, 14.07.2025, 19:50
Measures. Romanian President Nicusor Dan said that the fiscal measures adopted by the government to restore the budget are temporary and that the country has the potential to develop immediately after the recovery period. He assured investors and markets that the promised reforms will be carried out. Regarding the VAT increase, which he had promised during the election campaign would not be raised, the president said that the measure could have been avoided, but that it’s the government’s prerogative. On the other hand, President Dan considered it a mistake on the part of politicians to decide that magistrates’ pensions should be higher than their salaries, which encouraged early retirement. He advised magistrates who are currently eligible for retirement not to rush into it, as future legislative changes regarding special pensions will not affect them.
Motion. Gathered in extraordinary session, the Romanian Parliament debated and rejected on Monday the motion of no-confidence filed by the populist and ultra-nationalist opposition against the PSD-PNL-USR-UDMR coalition government. AUR initiated this move after the government led by liberal Ilie Bolojan took responsibility for the first package of fiscal measures to reduce the budget deficit. The initiators wanted to block the tax increases provided for in the fiscal package, which, in their opinion, only bring austerity to ordinary people. With the rejection of this motion, the bill for which the Executive assumed responsibility is adopted.
Protests. One of Romania’s largest trade union confederations, Cartel Alfa, organised a march around the Parliament building and called for trade union unity for joint action. Trade unionists say that the economic and social policies currently being promoted by the political class are an attack on employees, pensioners, and the most vulnerable citizens. Cartel Alfa believes that it is time for united, firm, and immediate action to defend the general interests of workers in all sectors of activity, both public and private. On Monday, the National Federation of Trade Unions in Administration organised a protest march against what it considers to be policies that demonise employees in central and local public administration. They are being made scapegoats for budgetary imbalances, even though they represent a maximum of 20% of the number of public sector employees.
Debt. Romania’s external debt was close to €210 billion in May, continuing its upward trend of recent years, according to data published by the National Bank. In this context, experts believe that the country’s public debt could exceed 60% of the gross domestic product next year. Economic analysts say that the main cause is the high budget deficit. The latest estimate by the Moody’s rating agency indicates that, even with the implementation of the first package of fiscal measures undertaken by the executive, Romania’s public debt would only peak at around 66.5% of the GDP starting in 2029.
Tariffs. The customs duties announced by Donald Trump on European goods imported into the United States are unacceptable, say EU member states in unison, and if negotiations do not bring about a better solution, Brussels should resort to countermeasures. On Monday, the European Commission presented the countermeasures it has prepared at the Council meeting. The first option, which all member states agree on, is to negotiate so that a solution can be reached by August 1, the deadline announced by Trump, and the solution that member states can accept is well below 30 percent. The second solution, in the event of a failure of negotiations, is for the Union to impose mirror tariffs, because it has nothing to lose, given that the 30 percent tariffs would effectively suspend trade between the two blocs. President Nicuşor Dan sent a message of support for the European Commission’s efforts to continue negotiations and reach an agreement with the US before August 1, in the interests of citizens and the transatlantic partnership.
AgriFish. Romania and France are asking the European Commission to postpone the implementation of the Mercosur agreement due to the impact it will have on European farmers. Romanian Minister of Agriculture Florin Barbu and his French counterpart Annie Genevard signed a joint statement to this effect on Monday in Brussels, on the sidelines of the AgriFish Council, and other member states have already expressed their intention to join this initiative, including Italy, Austria, Poland, and Hungary. These countries are concerned that European farmers will not be able to compete with South American agricultural products, which will be much cheaper due to often low standards. The Mercosur agreement is a free trade agreement between the EU and the South American bloc that includes Argentina, Brazil, Paraguay, and Uruguay. The document mainly provides for the opening of European markets to products from the target area, as well as the reduction or even elimination of customs duties for certain goods.
France. The relationship between Romania and France is based on a solid and comprehensive strategic partnership, said President Nicusor Dan on Monday evening at a reception hosted by the French Embassy on the occasion of France’s National Day. According to the Romanian head of state, the strength of this partnership lies in the values upheld by both countries and that it is about strengthening the European project, democracy, defending the rule of law, security, and prosperity. Prime Minister Ilie Bolojan also conveyed Romania’s appreciation for the solid strategic partnership between the two countries on France’s National Day on Monday. “France is a reliable partner within the European Union and an important ally in NATO, contributing to the security of the eastern flank and the Black Sea region, including through its military presence in Romania as part of the NATO Battle Group, in its capacity as a framework nation,” said Ilie Bolojan. (MI)
