July 31, 2016 UPDATE

For a roundup of domestic and international news, click here.

Newsroom, 31.07.2016, 12:15

INVESTIGATION – Deputy Governor of the National Bank of Romania Bogdan Olteanu, currently under home arrest for 30 days in a case where he is accused of influence peddling, has announced he would step down on Monday. Olteanu was arrested on Thursday, prosecutors calling for his pre-trial arrest. Anticorruption prosecutors are accusing Olteanu of demanding and receiving 1 million euros and support for his election campaign from a businessman in exchange for appointing Liviu Mihaiu as the governor of the Danube Delta, during his time as Speaker of the Chamber of Deputies. This is the first National Bank official to be investigated by the National Anticorruption Directorate. In a press release, the Central Bank said the investigation is focused on Bogdan Olteanus political career before he became Deputy Governor in 2009.

SURVEY – Over 40% of Romanians believe immigration and terrorism are the main challenges facing the EU, reads a recent Eurobarometer published by the European Commission in July. Over 31,000 people from 34 European countries and regions took part in this survey over May 21-31, 2016. In Romania, 42% of respondents depicted a positive image of the EU, down by 15% as compared to the previous survey, while 14% of them said they had a negative image of the EU, up by 5%. At national level, Romanians concerns are related to the healthcare and social security schemes, with 37% of the answers, unemployment 25% and inflation 24%.

MILITARY EXERCISE – Over 2,700 military from five NATO member states – Bulgaria, Canada, Poland, Romania and USA – and five members of the Peace Partnership – Armenia, Azerbaijan, Georgia, the Republic of Moldova and Ukraine are starting today and until August 5 taking part in a large-scale military exercise in Cincu, central Romania. Organized by the General Staff of Ground Forces, the exercise is aimed at training the military in compliance with NATO standards. Command, training, computer-assisted simulations, ground troops and tactical exercises will be organized. According to the Defense Ministry, over 900 Romanian military and some 1,700 US troops equipped with M1A2 Abrams tanks and Bradley armored fighting vehicles, and 47 Canadian military equipped with infantry combat vehicles, will be carrying out tactical shooting exercises.

MEASURES – Starting August 1, the VAT for the Romanian agriculture sector will drop from 20 to 9%. The measure will be applied for fertilizers, pesticides, seeds and other agricultural products used in seeding and cultivating plants. Farmers will pay less for farm works this year, while consumers are expected to buy cheaper products starting next year. Prime Minister Dacian Ciolos explained the decision is aimed at stimulating quality farming and stepping up productivity in this sector. Also starting August 1, some 650,000 employees in the public sector will get higher salaries. The measure will apply to the employees in the healthcare, education, administration and defense sectors. Also on August 1, over 600 former MPs will benefit from special pensions, awarded depending on the number of mandates they have had.

BILATERAL RELATIONS – The UK will continue its strategic partnership with Romania, focusing on two pillars, security and prosperity, British Ambassador Paul Brummell has said. Attending a summer camp in central Romania, the British official said Romanians in Britain should remain calm, because Brexit negotiations will be a long process, at the end of which nothing will change. Brummel gave assurances that no changes will involve the situation of Romanian students in Great Britain before negotiations are completed.

WYD – The World Youth Day was celebrated on Sunday in Krakow Poland, where hundreds of thousands of people, mostly young pilgrims from all around the world, came to attend a mass officiated by His Holy Father Pope Francis. In his message, the pontiff urged young people to embrace hope and focus on prayer as the central aspect of their lives. The Pope also told young people to look beyond the mundane gratifications offered by technology, and use their hearts to change the world. The event coincided with the 1,050th anniversary of Polands adoption of Christianity.

TURKEY – Turkish president Recep Tayyip Erdogan has told a television that he would forward Parliament a minor constitutional reform, which, if adopted, will place the national intelligence service and the chiefs of general staff under the presidencys control. The measures are aimed at handling full control of the military to the civilian leadership after the failed coup of July, where one military faction used tanks, fighter jets and helicopters to overthrow the power. Recep Tayyip Erdogan said military academies will be shut down and replaced with a National Defense University. The Turkish presidents statement follows last weeks thorough-going reform of the military: nearly half of the generals have been dismissed. After July 15, some 18,700 people have been arrested. 140 newspapers, radio and television stations were shut down.