July 16, 2025 UPDATE
A roundup of local and world news
Newsroom, 16.07.2025, 20:20
EU FUNDING Projects worth EUR 6.3 billion included in the National Recovery and Resilience Plan can no longer be completed by the deadline of August 2026, the minister of investments and EU projects Dragoş Pîslaru announced on Tuesday. However, he promised that Romania would not lose any of the non-reimbursable funding. Dragoş Pîslaru presented the conclusions of a meeting of the Interministerial Committee for the Coordination of the National Recovery and Resilience Plan, with explanations about the negotiations currently taking place for Brussels to accept the changes desired by the Romanian authorities, so as not to lose funds from the programme.
ECONOMY Fitch Ratings has announced that the implementation of the latest consolidation package announced by the authorities in Bucharest will be reflected in its new revised forecasts to be released on August 15, when the next review of Romania’s country rating (‘BBB minus, negative outlook’) is scheduled. Reducing the deficit and stabilising debt are essential for the sovereign rating, according to a Fitch press release. According to the agency, significant fiscal consolidation will put pressure on economic growth, and implementation risks cannot be ruled out. More than half of the additional revenue forecast for this year comes from a 2% increase in the standard VAT rate to 21% and the unification of the special 5% and 9% rates into a single rate of 11% starting in August. This will lead to higher inflation, further eroding real incomes, the rating agency estimates. All three major rating agencies (S&P Global Ratings, Moody’s, and Fitch) have a “negative” outlook on Romania’s sovereign rating, which puts the country one step away from a “junk” rating (not recommended for investment).
VISITS The president of Romania Nicuşor Dan will make official visits to Germany and Austria, focused on the economic component of foreign policy. At the end of this week, he will go to Germany, where he has meetings scheduled with president Frank-Walter Steinmeier and chancellor Friedrich Merz, as well as with members of the business community in that country. On July 25 and 26, Nicuşor Dan will be in Austria, where he is scheduled to meet with president Alexander Van der Bellen and chancellor Christian Stocker, and will also attend a business forum. The 2 countries provide over 25% of foreign direct investment in Romania.
EU The European Commission president Ursula von der Leyen Wednesday presented the draft EU budget for the period 2028-2034, describing it as a “budget for a new era,” Reuters reports. She said it would be almost EUR 2 trillion. Member states’ contributions to the EU budget will remain constant, but own resources will increase, Ursula von der Leyen said. The draft budget earmarks EUR 451 billion for EU competitiveness, EUR 300 billion for agriculture, EUR 218 billion for less developed regions and EUR 131 billion for defence and space industry. There is also a crisis mechanism amounting to EUR 400 billion. The EUR 1.98 trillion is a significant increase from the EUR 1.2 trillion, equivalent to 1% of the EU’s GDP allocated to the bloc’s budget in the last budget cycle, covering 2021 to 2027. The new EU budget is likely to be challenged by some member states that are already struggling with budget issues and will be responsible for financing the bulk of the package through national contributions. Wednesday’s proposal kicks off a complicated process involving the European Parliament and the European Council, which represent the member states. The EU budget, known as the multiannual financial framework, must be agreed on by the end of 2027.
UKRAINE Ukraine’s parliament Wednesday voted to dismiss PM Denis Shmyhal and his entire government after president Volodymyr Zelenskyy nominated Yulia Svyrydenko, the current economy minister, as the next prime minister. Parliament will reconvene on Thursday to vote on the new government. Denis Shmyhal, a 49-year-old technocrat who has led the government since 2020, could become the new defence minister, the president said, replacing Rustem Umerov, who is set to be named ambassador to Washington. Zelensky wants Yulia Svyrydenko’s Cabinet to take steps to stimulate the economy, strengthen social protection and expand domestic weapons production. Aged only 39, Yulia Svyrydenko has stood out for her role in completing a mining deal with the US. Meanwhile, at least 11 people were wounded in Russian attacks in Ukraine last night, according to authorities in several affected regions. Russia has been targeting Ukrainian cities with airstrikes almost daily as part of its campaign launched in 2022. The US President Donald Trump said on Tuesday that weapons had already been shipped to Ukraine. On Monday, he pledged to provide additional military equipment to Kyiv and gave Russia 50 days to end the war.
FOOTBALL Romanian football champions FCSB Bucharest moved into the second qualifying round of the Champions League, despite losing 2-1 away to Andorran title holders Inter Club d’Escaldes on Tuesday evening, in the second leg of the first qualifying round. FCSB advances thanks to a 3-1 win at home. The Bucharest team’s opponent in the second qualifying round of the Champions League will be KF Shkendija, the North Macedonian champions, which defeated the Welsh team The New Saints. Three other Romanian teams are competing in European competition qualifiers: CFR Cluj (northwest) in the Europa League, and Universitatea Craiova (south) and Universitatea Cluj in the Conference League. (AMP)
