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July 5, 2025 UPDATE

A roundup of local and international news.

July 5, 2025 UPDATE
July 5, 2025 UPDATE

, 05.07.2025, 19:09

Deficit. Parliament is meeting on Monday for a vote on a first package of fiscal measures to cut the budget deficit proposed by the government. By then, MPs will be able to submit amendments to the bill, which provides for a number of tax and duty increases and affects people’s salaries and pensions. Most of the measures are to be implemented from 1st August. A VAT rise from 19 to 21%, eliminating health insurance reliefs for pensioners earning more than 3,000 lei a month (some 600 euros), raising tax duties on tobacco, alcohol and fuel, levying a surcharge on gambling and additional taxes on banks are some of the measures included in the bill adopted on Friday by the government. It is estimated that the impact on the general consolidated budget will amount to some 2.1 billion euros this year alone, with an increase of some 1.8 billion euros of budget revenues and a cut of over 220 million euros to budget spending. The Economic and Social Council gave a negative opinion on the bill, saying the measures proposed by the government will lead to a drop in the purchasing power of all citizens and will affect stability and predictability in society.

 

Protests. The employees of a number of public institutions again staged protests on Friday against the measures proposed by the government. Trade unions in education said they will hold a rally on Monday outside Parliament, when the government is expected to put its bill to the vote in Parliament. The Columna – SCOR federation of trade unions in the administration and social care said they would hold a protest on Tuesday, also outside Parliament, when over 1,300 city halls from across the country would go on a warning strike. On Friday, the major trade union confederations and employers’ associations held fresh talks with prime minister Ilie Bolojan about the measures to cut the budget deficit. Employers’ associations said they are opposed to the VAT rise because they believe it will generate a price increase and a drop in consumption, leading to businesses closing down. Trade unions proposed the elimination of subsidies for political parties and the transfer of 5% of labour taxes from employees to employers. The government proposed its social partners to appoint their representatives to the working groups to draft the following package of measures aimed at cutting the budget deficit. The professional association of real estate agents in Romania warned of the effects of the VAT increase on new homes from 9 to 21%, saying it will lead to an increase of thousands of euros, which will particularly affect people with medium incomes, who are already struggling with high interest rates and inflation.

 

EU-Moldova. The European Union has unblocked a first payment of 270 million euros from a financial package to support the Republic of Moldova during a summit hosted by Chişinău on Friday and attended by the president of the European Council Antonio Costa and the head of the European Union, Ursula von der Leyen. The funds will be used mainly for investments in the healthcare system and central heating systems in Moldova’s biggest cities. In the next three years, the European Union will invest 1.9 billion euros in the former Soviet republic with a majority Romanian-speaking population. President Maia Sandu highlighted the need for close cooperation and emphasised Moldova’s remarkable progress in its EU accession process. Moldova is ready to advance its EU accession talks, said Ursula von der Leyen. She said the EU is ready to support the Republic of Moldova against hybrid and energy threats, indirectly accusing Russia of attempts at destabilisation. The Republic of Moldova will also be connected to the EU energy market, and by October it will be integrated into the Single Euro Payments Area, facilitating fast and secure money transfers. Von der Leyen also announced the complete elimination of roaming charges between the Republic of Moldova and EU Member States and reiterated the Union’s full political support.

 

Fire. A fire broke out on Saturday on the rooftop of a shopping centre in Bucharest, said the Inspectorate for Emergency Situations, which dispatched units to put out the fire that caused a lot of smoke, including in cinema halls and the restaurant area. People inside the shopping centre were evacuated. No one was harmed, according to the fire service. Some 1,000 people were inside the building when the fire fighters arrived and some 1,300 other people, including 500 of the staff had self evacuated. A number of solar panels caught and part of the insulation caught fire on a surface area of around 90 square metres, said the Inspectorate for Emergency Situations.

 

Festival. Bucharest is hosting the first edition of the Neversea Kapital festival. Well-known acts will perform on the three stages on the National Arena stadium to put the Romanian capital city on the map of electronic music in Europe. The line-up also features circus acts, acrobatics, face painting and freestyle puppetry, a modern and interactive concept of puppet theatre. The Bucharest City said it has come up with a special programme aimed at promoting the capital city and offering a memorable cultural and tourist experience. Traffic restrictions are in place on the streets near the stadium, and law enforcement are present at the event and inside the stadium, to combat drug trafficking and use. Specially trained dogs are used to detect illegal substances. (CM)

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