June 7, 2025

A roundup of domestic and international news

Newsroom, 07.06.2025, 13:55

Negotiations. Discussions continue in Bucharest on the measures to be included in the next government’s program to reduce the budget deficit. PSD, PNL, USR and UDMR experts are studying a long list of proposals, but the final decision is expected to be announced on Monday evening, after negotiations that President Nicușor Dan will have with the leaders of the four declared pro-European parties. To reduce the deficit to at least 7.5 percent of the GDP, the state needs to find 30 billion lei (about six billion euros) – either by cutting public sector spending, or by some tax increases, or a combination of both. Proposals could include raising VAT on some products, progressively taxing high incomes, increasing excise duties and cutting or eliminating bonuses in the public sector.

IMF. A team of experts from the International Monetary Fund is recommending a set of measures to reform Romania’s tax system and shift the tax burden from labor to consumption and, to a lesser extent, capital taxation. The institution estimates that, if fully implemented, these proposals could generate additional revenues of at least 1.2% of the GDP in 2025. On labor taxation, the IMF’s main recommendation is to move from the single 10% tax rate on labor income to a two-rate system of 15% and 25%, with the latter applying to the highest earners. On the taxation of capital and property income, the IMF believes that the tax on dividends distributed to individuals should be increased from 8% to 10%, which would increase revenues. When it comes to consumption taxes, IMF experts are of the opinion that reduced VAT rates should be increased to the standard rate, with the exception of basic foodstuffs.

Pilgrimage. More than 300 thousand pilgrims from home and abroad are taking part in today’s Catholic Pentecost procession in Șumuleu Ciuc, in Harghita County (center). This year’s pilgrimage is being held under the motto “Pilgrims of Hope”, similar to that of the Jubilee Year 2025 declared by Pope Francis. Among the participants will be the President of Hungary, who will make a private visit to Harghita and Covasna counties. The Catholic pilgrimage in Șumuleu Ciuc has a history of over 450 years and is considered the largest in Central and Eastern Europe. The pilgrimage is centered around the miracle-working statue of the Virgin Mary in the Franciscan church. Legend has it that in 1567 the Prince of Transylvania, John Sigismund, tried to impose Unitarianism on the Roman Catholics in the Saxon seats of Ciuc, Gheorgheni and Cashin, and people say it was only with the help of the miracle-working statue that they managed to resist and preserve their ancestral faith. Hundreds of interior ministry employees – gendarmes, policemen and firefighters – are mobilized for the smooth running of the event, as are dozens of medical teams, rescue workers and Red Cross volunteers. On the other hand, almost 5,000 firefighters and more than 300 SMURD teams are mobilized for the Pentecost holiday throughout Romania, reports the General Inspectorate for Emergency Situations (ISU). On the seaside, where there are a lot of tourists, the Romanian General Inspectorate for Emergency Situations (ISU) has operationalized several temporary fire-fighting points equipped with fire engines, with a first-aid and rescue module.

Praid. Romanian President Nicușor Dan sent a message today on the occasion of the 150th anniversary of the Romanian Geographical Society, in which he emphasized that environmental degradation, climate change, rapid urbanization, natural risks, and geopolitical tensions are challenges that cannot be understood and addressed effectively without a solid knowledge of the geographical space and its dynamics. ‘The tragedy at the Praid Salt Mine (center) is a painful reminder of how vulnerable communities are to extreme natural phenomena, which affect not only infrastructure or the local economy, but above all the people whose livelihoods are endangered, sometimes from one day to the next. We have a clear responsibility: to protect the natural heritage and the lives of those who live in these areas,’ he added. The situation at the Praid Salt Mine remains critical following the floods. Work continues to divert the Corund stream, which flooded the salt mine and the underground salt mine, and a team of international experts is on site after the Romanian authorities activated the EU Civil Protection Mechanism.

Moldova. The Republic of Moldova is firmly set on the path towards European Union membership, the European Commissioner for Democracy, Justice and the Rule of Law, Michael McGrath, said in Chisinau on Friday. Speaking at a joint press conference with Moldovan Justice Minister Veronica Mihailov-Moraru, the European Commissioner noted the progress made in judicial reform and the appointment of magistrates, stressing that the European Union would continue to provide technical and financial support, Radio Chisinau reports. In the context of preparations for the upcoming parliamentary elections, the commissioner also emphasized the seriousness with which the European Union monitored the risks of manipulation and foreign interference, as well as the hybrid threats Moldova was facing, challenges present throughout Europe. For her part, Veronica Mihailov-Moraru underlined Moldova’s firm commitment to a profound reform aimed at increasing trust and transparency in the judiciary.

Sentence. Former Romanian Health Minister Sorina Pintea has been sentenced to three and a half years in prison after the Cluj Court of Appeal rejected as unfounded her appeal against the sentence initially handed down by the Bucharest Tribunal. She was indicted by anti-corruption prosecutors in 2020 in a case in which she is accused of receiving bribes of €10,000 and 120,000 lei (€24,000) during her time as manager of the Baia Mare Emergency Hospital. The money amounted to 7% of the value of a public procurement contract concluded by the hospital.

Football. Romania’s national football team will take on the Austrian squad in Vienna today in the third round of qualifiers for the 2026 World Cup in Group H of the European Zone. Coach Mircea Lucescu said on Friday evening that he planned to take as many risks as necessary, stressing that he had analyzed the opponent very well. The Romanian players must make up for Austria’s superior experience with their ‘fantastic dedication’, he added. Romania will next face Cyprus on Tuesday in Bucharest. The qualifying campaign began in March with a 1-0 home loss to Bosnia and Herzegovina. This was followed by a 5-1 away win over San Marino. The Bosnia and Herzegovina team leads the group standings while Romania is in second place, tied with Cyprus. Austria, considered the group favorite, has yet to play a match, so will make its debut against Romania. (MI)