July 7, 2025 UPDATE (2)
A roundup of local and world news
Newsroom, 07.07.2025, 20:00
MEASURES – The Government has assumed responsibility in Parliament, on Monday, for the first package of fiscal measures designed to reduce the budget deficit. The package received a negative advisory opinion from the Economic and Social Council, because the measures lead to a decrease in the purchasing power of Romanians and affect the stability in society. Opposition parties announced they are preparing a vote of no-confidence. The most important measures provided for in this fiscal package concern the increase in VAT from 9 to 11%, respectively from 19 to 21%, the elimination of the exemption from paying health insurance contributions for pensioners with monthly incomes exceeding €600 or the increase in excise duties on tobacco, alcohol and fuels. The norm of teaching staff in pre-university and university education will increase and the protocol for awarding school scholarships will be modified. Also, salaries and pensions in the public system remain capped, including next year. The government resorted to these measures because of the country’s very large deficit and the risk that Romania will be downgraded by rating agencies to ʹjunkʹ, i.e. not recommended for investments. Prime Minister Ilie Bolojan told Parliament that the first package of fiscal measures represents a national emergency and an act of responsibility. Romania needs to correct negative accumulations – the prime minister said. According to Ilie Bolojan, all measures taken by the government will bring equity and justice. And by the end of this month, the prime minister promises a new package of measures regarding special pensions, the reform of state-owned companies and combating evasion with focus, Ilie Bolojan argues, on equity, morality and efficiency.
PROTESTS – Disgruntled with the solutions offered by the ruling coalition made up of PSD-PNL-USR-UDMR to curb the budget deficit, trade unions from Romania’s healthcare and education systems protested in front of the Parliament building in Bucharest. Employees of the Pension Houses, of the Romanian Waters National Administration and the Agriculture Ministry have also announced a series of protests. Trade unionists believe the Executive has chosen the easiest way out, namely to raise taxes and duties. They have submitted to the political parties their alternative for curbing the country’s budget deficit, which includes a measure under which, subsidies are to be granted to political parties only in the years when Romania meets the budgetary deficit targets set at European levels. Trade unionists also want the lump sum granted to deputies and senators cut by 50% as the present system does not offer a transparent way on how this public money is spent. On the other hand, the Confederation of Authorized Operators and Transporters in Romania has called on the government to rethink the austerity measures imposed “so they won’t destroy Romania in the following six months”.
EUROPEAN PARLIAMENT – The July session of the European Parliament kicked off in Strasbourg on Monday. One of the main items on the agenda is the debate and no-confidence vote against the European Commission, initiated by the Romanian MEP from the European Conservatives and Reformists (ECR) group, Gheorghe Piperea. The motion, which will be voted on Thursday, is motivated by concerns about the Commission’s persistent failure to respect key principles of the Union, including transparency or the possibility of being held accountable. On Tuesday, MEPs will discuss the preparation of the EU-China summit and the latest developments in the Middle East, and on Wednesday they will evaluate the results of the EU summit in June.
WEATHER – Meteorologists have extended until Wednesday the code red alert for extremely hot temperatures for Bucharest and 14 counties in southern Romania, where the highs are expected to shoot up to 38-41 degrees centigrade. Code yellow and orange alerts have been extended for the rest of the territory also until Wednesday. The local authorities have resorted to a series of measures to cope with the present heat wave. Emergency text messages were sent to Bucharest dwellers on Monday, cautioning them against the extremely high temperatures. First aid points were set up in Bucharest and other major Romanian cities, where people are being offered water and medical assistance. The Healthcare Ministry has called on the public health and ambulance services to activate measure plans for extremely hot temperatures. Employers are to allow their employees to take breaks in shady places, provide appropriate hydration and adjust the working hours whenever possible. Traffic for heavy vehicles has been restricted in the affected areas.
TENNIS – The Romanian-Russian pair Sorana Cîrstea/ Anna Kalinskaya on Sunday qualified for the quarter finals of the women’s doubles at Wimbledon. In the round of 16, the two tennis players ousted the all-Russian pair Mirra Andreeva/ Diana Shnaider. In the quarters, Cîrstea and Kalinskaya will be up against Su-wei Hsieh of Taiwan and Jelena Ostapenko of Latvia. Cîrstea is Romania’s only representative in Wimbledon. (DB & VP)
