March 12, 2026 UPDATE
A roundup of local and international news.
Newsroom, 12.03.2026, 20:01
PRESIDENCY – Romania and Ukraine became strategic partners on Thursday. The declaration, which raises bilateral relations to the highest level, was signed in Bucharest by the presidents of the two states, Nicuşor Dan and Volodymyr Zelenskky. It is an important moment in the bilateral ties, said Nicuşor Dan. He mentioned that in this way the two countries assume mutual trust, responsibility for their citizens and for this part of Europe. The Romanian president mentioned that he also discussed with his counterpart about the Romanian minority in Ukraine. He said that he received guarantees regarding the continuation of the functioning of schools in the Romanian language and for all other rights of the Romanian minority. In turn, Volodymyr Zelenskky stated that Romania and Ukraine have potential for cooperation in the energy field, noting that the two countries are also collaborating to open new border crossing points. He thanked for the position that Bucharest and the Romanian citizens have had during the 4 years of Russia’s war in Ukraine. The two heads of state also signed an agreement on the two countries producing drones together, as well as a framework for cooperation in the energy field.
AUCTION– No company was willing to purchase the Liberty Galati steel plant at the initial price, at the international auction scheduled for Thursday. According to the plant’s administrators, Euro Insol and CITR, five large companies, including one from Romania, bought the specifications, but none of them signed up for the auction or made any offers, the reason being the high starting price – 700 million euros. Euro Insol President Remus Borza said that within 30 days and if the Romanian government agrees, a second auction could be organized at which the requested price would be reduced, but not below 450 million euros. The steel plant in Galati employs about 3,000 employees, who have been on technical unemployment since September last year.
FUEL – Fuel prices have increased significantly in Romania, after the start of the new conflict in the Middle East. In this context, the government in Bucharest is preparing a first support measure for transporters. The Ministry of Finance has published a draft decision that would extend until the end of this year the support scheme that compensates for the excise tax on diesel, and the aid will be increased to 85 bani per liter of diesel, from 65 bani currently. Globally, financial markets are waiting for the release of a massive amount of oil from the strategic reserves of the great powers, in order to counter the raising tariffs. The decision was made on Wednesday in Paris by representatives of the 32 member countries of the International Energy Agency. 400 million barrels would soon reach the world market – the largest amount of resources ever released from these reserves. At the same time, the militarization of the Strait of Hormuz is at the center of the concerns of world leaders, given its crucial role in the transport of hydrocarbons. French President Emmanuel Macron urged all G7 leaders to coordinate their efforts to quickly restore freedom of navigation and maritime security.
BUDGET – The Romanian Government has adopted a draft law to take out a 500 million euro loan from the European Investment Bank for the construction of the Sibiu – Piteşti motorway, which should be completed in 2028. The loan will be available for 36 months and will cover half of the total cost of the project. The executive branch also approved a regulatory act that continues the process of simplifying the rules for financing from European funds for farmers in the livestock and fruit growing sectors, as well as a memorandum that will allow Romania to participate in important projects of European interest in the semiconductor field. The draft state budget for this year is also on the Government’s agenda. Prime Minister Ilie Bolojan said that he wants the law to pass the executive branch by the end of this week, so that it can be quickly sent to Parliament for debate and vote.
LABOR – Romania, Bulgaria, Croatia and Poland could improve labor productivity by up to 10%-15% through the widespread adoption of digital technologies, especially software and tools based on artificial intelligence, according to the latest report published on Thursday by the World Bank Group. According to the report, faster and wider adoption of new technologies – especially among small and medium-sized enterprises – would contribute to accelerating economic growth and strengthening competitiveness across the region. Research and development spending in the four countries currently remains below the European Union average, at less than 1.5 percent of GDP, compared to 2.2 percent at the EU level.
TROOPS – The Romanian Parliament approved, on Wednesday, the request for the temporary deployment of some American defense equipment and military forces in Romania in the context of the crisis in the Middle East. The decision had been taken previously, in the meeting of the Supreme Council for National Defense, convened by President Nicuşor Dan. According to the head of state, these are refueling planes, monitoring equipment and satellite communications equipment in correlation with the anti-missile defense shield in Deveselu, southern Romania. Also in the meeting on Wednesday, the members of the CSAT discussed the situation of Romanians caught up in the war in the Middle East, as well as the economic consequences of the conflict, including the increase in prices on the international oil market. (EE)
