July 24, UPDATE

A roundup of domestic and international news

Newsroom, 24.07.2025, 19:49

Cooperation. The increase in trade between Romania and Hungary and the development of joint infrastructure and interconnection projects were discussed, on Wednesday evening, in Bucharest, by Prime Ministers Ilie Bolojan and Viktor Orbán. According to a press release from the Romanian Executive, emphasis was placed on concrete projects that can bring real benefits to the citizens of both countries. Prime Minister Ilie Bolojan stressed that Romania wants a constructive relationship with Hungary, focused on real cooperation and clear results. He also presented the main directions of Romania’s position in the European Union, emphasizing the need for unity and solidarity in the face of current challenges. The meeting in Bucharest was held at the request of the head of the Hungarian government, who is on an unofficial visit to Romania, on the occasion of the 34th edition of the Summer University in Băile Tuşnad (center), where, on Saturday, he will deliver a speech.

Measures. The ruling coalition in Bucharest – formed by PSD, PNL, USR, UDMR and the National Minorities Group – has decided to postpone until mid-August the adoption of the second package of fiscal-budgetary measures. The decision was made in the context in which the Social Democrats voiced dissatisfaction that they were not consulted on all the measures announced by Prime Minister Ilie Bolojan. The measures in this package, considered by the Executive for the reform of state-owned companies, include the reduction of the number of members of the Boards of Directors and Supervisory Boards of state-owned companies, their remuneration, as well as the capping of benefits. We recall that, recently, the Constitutional Court rejected the AUR’s notification regarding the first package of fiscal measures, adopted by the Bolojan Government by assuming responsibility in Parliament. The package will come into force on August 1 and contains, among other things, an increase in VAT rates, an increase in excise duties, a cut in some bonuses and a cap on pensions

Rating. Standard & Poor’s rating agency announced that it maintains Romania’s rating and the negative outlook in the long and short term, in local and foreign currency, which reflects that the risks regarding the country’s public finances will remain high in the coming years, despite the deficit reduction measures announced by the Government. According to S&P, the rating could be downgraded in the next two years, if these measures are insufficient or if weak economic growth reduces their effectiveness. The rating could also be reduced, if external debt increases above forecast levels or if financing conditions deteriorate, for example due to significant delays in receiving European funds. S&P could improve Romania’s outlook from negative to stable, if the fiscal and external deficits are significantly reduced, supported by a return to economic growth. According to the rating agency, the fiscal impact of the measures recently announced in Bucharest is 1.1% of the GDP in 2025 and 3.5% of the GDP in 2026, which will contribute to reducing deficits to below 7.7% this year and to 6.4% in 2026, from 9.3% in 2024. All three major rating agencies (S&P, Moody’s and Fitch) have a negative outlook on Romania’s sovereign rating, which places the country on the verge of a ‘junk’ rating, not recommended for investment.

Unions. Three trade union federations in the Romanian education system are asking the country’s president, Nicuşor Dan, not to enact the law on certain fiscal and budgetary measures in the form adopted by the government. The application of the law will seriously affect both education employees and pupils and students, say representatives of FSLI, Spiru Haret, and ALMA MATER, who emphasize that the response given on this issue by the Institute of Education Sciences supports their approach. They believe that teaching standards are at the European Union average and should not be increased, and that increasing the number of students per class will alter the teaching process and lead to lower results, including in international assessments. A delegation from the three trade union federations will submit a document on this matter to the Presidential Administration on Friday.

Diplomacy. An honorary consulate of Romania will be opened in Ruse, Bulgaria. The decision was approved by the government of the neighboring country, and the consular district will cover the territories of the regions of Ruse, Pleven, and Veliko Tarnovo. The duties of honorary consul will be performed by Viktor Guguşev, a lawyer with extensive experience in cross-border legal consulting, corporate law, and international mergers and acquisitions, who is also the chairman of the Board of Directors of the Bulgarian-Romanian Chamber of Commerce. The Sofia executive said that the opening of the Honorary Consulate of Romania in Ruse will contribute to strengthening bilateral, commercial, economic, cultural, and educational ties between the two countries.

Directive. A number of pharmaceutical and cosmetics companies in Europe, including Romania, are challenging the methodology used to draft the directive on urban wastewater treatment, part of the European Green Deal. The current provisions apply the “polluter pays” principle and impose additional costs on the two industries for the removal of micropollutants. The president of the Romanian Generic Medicines Manufacturers Association, Daniel Bran, pointed out that the model used to identify polluters is flawed. The EU executive has been asked to redo the impact study on extended producer responsibility, a move supported by 16 EU member states, including Romania, said Dan Zaharescu, executive director of the Romanian Association of International Drug Manufacturers. The two representatives of the pharmaceutical industry warned that drug prices could increase five to eightfold if this directive were to come into force in its current form.

Competitions. Romanian table tennis players Eduard Ionescu and Darius Movileanu brought Romania its first medal at the 2025 Summer World University Games, held in Germany. They won bronze in the men’s doubles event. Eduard Ionescu also secured a medal in the men’s singles, going to play in the semifinals against Russian Vladimir Sidorenko. Romania is participating in the games with 64 athletes, in 9 disciplines. In another move, Romanian athletes won two medals, one silver and one bronze, on Wednesday, at the European Youth Olympic Festival, summer edition, in Skopje (North Macedonia) and Osijek (Croatia). The silver medal was won by swimmer Cezar Stoica in the men’s 200m individual medley, and the bronze medal was won by gymnast Alexia Blănaru in the individual medley final. Romania’s tally so far is five medals – one silver and four bronze. 87 Romanian athletes are competing in 11 disciplines at the European Youth Olympic Festival for summer sports. At the previous edition, in 2023, Romania ranked fourth in the nation rankings. (MI)