June 28, 2025
A roundup of local and world news
Ana-Maria Popescu, 28.06.2025, 13:55
ECONOMY The Romanian government will announce next week a set of measures to reduce the budget deficit and improve access to EU funding. Government spending will be reduced by downsizing the boards of directors in state-owned companies and cutting down remuneration, by making pay bonuses conditional on performance, and by reconfiguring the school scholarship system, PM Ilie Bolojan announced. On the other hand, revenues will be increased by improving collection, curbing tax evasion and through a set of fiscal measures, he said. Bolojan explained that the measures to be presented next week concern the scrapping of one of the country’s 2 reduced VAT rates and raising excise duties on alcohol, tobacco and fuel. Another problem identified by the government is the underfinancing of the Healthcare Agency, and the prime minister said that, on the one hand, the Cabinet considers the broadening of the taxpayer base, and on the other hand, collecting healthcare contributions for higher pensions. The government also intends to introduce additional taxation of capital in the case of banks and gambling. Another goal is to improve the absorption of EU funds, especially under the National Recovery and Resilience Plan, which also means prioritising investments, Bolojan added.
LIBERALS The National Council of the National Liberal Party convened at the Parliament Palace today, to announce the party’s convention and to approve the draft regulations of this political party, which is part of the ruling coalition in Bucharest. The interim president of the National Liberal Party, Romania’s PM Ilie Bolojan, said the party needs stability in order to see through the reforms required for restoring Romania’s economic balance.
DIPLOMACY The Romanian foreign minister Oana Ţoiu and her French counterpart Jean-Noël Barrot during a phone call on Friday reconfirmed the bilateral strategic partnership and discussed areas of mutual interest as well as recent international developments. According to a post on the foreign ministry’s Facebook profile, the talks also covered the field of defence and the implementation of the decisions made at the NATO summit in The Hague, as well as trade, investment and cultural cooperation. Both sides also reaffirmed their commitment to common values and a stronger and more united Europe.
VISIT The speaker of the Romanian Senate, Mircea Abrudean, is on an official visit to Japan, on the occasion of Expo Osaka 2025. On Friday he had meetings with members of Japanese authorities and business community and with the leader of the House of Representatives of the Diet of Japan, Fukushiro Nukaga. The two discussed Japan’s support for Romania’s accession to the Organisation for Economic Cooperation and Development, security at the Black Sea, the reconstruction of Ukraine, the expansion of the Three Seas Initiative and the strengthening of EU-Japan cooperation in strategic areas. On the economic front, clear signals were sent regarding an increase in Japanese investments in Romania. The company NTT Data estimates a 300% increase of its operations in Romania, Hitachi aims to develop production of modular nuclear reactor components, and Mitsubishi targets involvement in upgrading public transportation. According to data made public by the Romanian economy ministry, in 2024, 410 trade companies on Japanese capital were operational in Romania, with combined share capital exceeding USD 431 million.
IRAN The goal of the US air strikes on Iran at the end of last week was “to destroy Iran’s nuclear enrichment capacity and stop the threat that this rogue regime obtains and uses a nuclear weapon,” Washington said in a letter sent yesterday to the United Nations Security Council. The US representative to the UN, Dorothy Shea, defended the strikes as collective self-defense measures under Article 51 of the UN Charter. The US, however, says that it remains committed to pursuing a deal with the Iranian government. On the other hand, Iran holds public funerals today for about 60 senior military officers and nuclear scientists killed during the 12-day war with Israel. President Donald Trump warned that the US will certainly carry out new attacks on Iran if it resumes weapon-grade uranium enrichment. (AMP)
