June 3, 2026

A roundup of domestic and world news

Newsroom, 03.06.2026, 13:58

EBRD – The European Bank for Reconstruction and Development (EBRD) has revised downwards its forecasts for the evolution of the Romanian economy this year, indicating a decline of 0.2%, compared to a 1.2% advance anticipated in February, according to the ‘Regional Economic Prospects’ report. In 2027, Romania’s GDP is expected to expand by 1.8%, compared to a 2.2% advance previously expected. Also according to the EBRD, the growth of the Romanian economy in 2025 was largely in line with that of 2024, although the structure of growth has changed – private consumption has almost stagnated, government spending has decreased, affecting the evolution of the economy, but net exports have increased. Inflation has accelerated significantly after the removal of the electricity price cap, and also after the increase in VAT and excise duties. The government deficit reduced from 9.3% in 2024 to 7.95% in 2025 and is expected to drop to 6.2% in 2026 – the international financial institution predicts.

Conference – Romania maintains its goal of reaching a deficit of 6.2% in 2026 and of continuing fiscal consolidation reforms, despite the political situation in the country, the interim Finance Minister Alexandru Nazare told international investors and rating agency representatives. He spoke in Vienna, at a conference organized by J.P. Morgan, where he noted that budget revenues have increased significantly, including those from VAT and social contributions, and investments financed from European funds and through the National Recovery and Resilience Plan (PNRR) have been accelerated. Minister Nazare emphasized that the budget deficit decreased to 1.17% of GDP after the first four months of the year, compared to 2.92% in the same period in 2025, which shows that the target for the end of the year is realistic.

Protest – Several thousand union members from the Romanian medical sector protested on Wednesday in front of the Government and Parliament headquarters in Bucharest, dissatisfied with the new unified pay scale bill in the public sector, which they say affects their income. They are demanding the withdrawal of the bill in its current form and the immediate resumption of real negotiations, based on commitments and respect for healthcare and social assistance employees. The Solidaritatea Federation of Trade Unions in the Fiscal Administration also protested in front of the Finance Ministry against the unified pay scale bill. In turn, the representative trade union organizations of the personnel involved in the management of European funds accuse the Government that the new bill risks destabilizing one of the most important administrative systems of the Romanian state and warn that they are prepared to resort to an all-out strike. Protests against the bill have already been registered in numerous sectors of activity.

Drone – 43 states have expressed their support and solidarity with Romania, showing compassion for the victims affected by the drone incident in Galaţi (southeast), on the night of May 28 to 29, informs a press release from the Ministry of Foreign Affairs. Amid the attacks on Ukrainian ports on the Danube, a drone attributed to the Russian Federation violated Romanian airspace and crashed on a block of flats, resulting in the injury of two people and material damage. Following this incident, on Tuesday, in Vienna, a special joint meeting of the Forum for Security Cooperation and the Permanent Council of the OSCE took place, at the request of some member states of the Bucharest 9 and Nordic-Baltic 8 groups. According to the Ministry of Foreign Affairs, Romania’s partners firmly condemned Moscow’s aggressive and irresponsible conduct. Alongside them, Bucharest reiterated its firm commitment to continuing multidimensional support for Ukraine, including with a view to achieving a comprehensive, just and lasting peace. Romania will also continue to support the use of OSCE instruments to document and hold Russia accountable for the crimes committed against Ukraine.

SAFE – The Romanian government published on Tuesday the detailed list of procurement contracts under the Security Action for Europe (SAFE) program, aimed at strengthening the defense industry, through which it will benefit from almost 17 billion euros. The money is used for military equipment and infrastructure projects. To date, Romania has signed contracts to purchase infantry fighting vehicles, maritime patrol and diver intervention vessels, air defense systems, military drone systems, Mistral surface-to-air missiles for short-range air defense, and helicopters for transporting troops and military equipment. Romania has also ordered modern anti-drone defense capabilities and will sign acquisition contracts for long-mission helicopters and radars capable of detecting low-flying aircraft.

OECD – The Romanian interim Foreign Minister, Oana Ţoiu, is participating, Wednesday and Thursday, in Paris, in the annual ministerial meeting of the Council of the Organization for Economic Cooperation and Development (OECD). The event brings together representatives of OECD member states, of the European Union and of the candidate countries for accession to the Organization, including Romania. The theme of the edition is about the role of industrial policies in supporting competitiveness and economic growth, and the discussions will focus on maintaining fair competition, fiscal responsibility and capitalizing on new technologies. Romania’s participation in Paris reflects the importance given to the OECD accession process – notes the Ministry of Foreign Affairs in Bucharest. With 24 of the 25 sectoral committees in the accession process closed, Romania is approaching the final stage of accession. (LS)