May 15, 2024 UPDATE
A roundup of domestic and international news
Mihaela Ignătescu, 15.05.2024, 20:00
INCIDENT. The President of Romania, Klaus Iohannis, stated on Wednesday that he was shocked to learn that the Prime Minister of Slovakia, Robert Fico, had been shot and he firmly condemned such extremist acts. Also, Romanian PM Marcel Ciolacu, declared himself “deeply shocked” by this incident and stated that the authors of such acts must be held accountable. Robert Fico was shot and wounded on Wednesday after a government meeting held outside the capital Bratislava, in the town of Handlova. The perpetrator of the attack was arrested. Since October last year, Prime Minister Robert Fico, a conservative Social Democrat and close to Hungarian Prime Minister Viktor Orban, has been at the helm of a coalition government formed by his Smer-SD party, another social democrat party, Hlas, and the nationalist Slovak National Party (SNS).
TALKS. The Romanian Minister of Foreign Affairs, Luminiţa Odobescu, had, on Wednesday, bilateral consultations with her counterpart from the Kingdom of the Netherlands, Hanke Bruins Slot, who is visiting Bucharest. According to a press release, the Romanian minister welcomed the Netherlands’ contribution to NATO’s deterrence and defense posture in Romania and highlighted the need for a continuous and firm support for Ukraine and ensuring security in the entire Black Sea region. Also, Luminita Odobescu welcomed the involvement of the Netherlands in the support given to the Republic of Moldova along the lines of reform, development and strengthening of resilience. According to the communiqué, the two officials also discussed the completion of Romania’s accession to the Schengen area and the European Union’s enlargement policy.
INFLATION. The National Bank of Romania has revised its inflation forecast for the end of the year up to 4.9% from 4.7% previously and says the inflation rate may go down to 3.5% at the end of 2025, according to a report presented on Wednesday by the bank’s governor, Mugur Isărescu. He said that the inflation rate will continue to drop, but at a slower pace than the initial estimate. The main uncertainties and risks associated with the evolution of the inflation rate have to do with the high budget deficit, the salary dynamics and possible additional fiscal and budgetary measures needed to cut down expenses. The latest statistical data show a slight drop in the inflation rate from 6.61% in March to 5.9% in April. The National Bank has decided to maintain the monetary policy interest rate at 7%, unchanged since last year.
ECONOMY. The European Commission has slightly improved, to 3.3%, the estimates regarding the growth of the Romanian economy this year, thanks to the acceleration of private consumption and higher incomes, according to the spring economic forecasts published on Wednesday by the Community Executive. The EC warned, however, that the government deficit will rise to 6.9% of the GDP in 2024 and to 7% of the GDP in 2025 due to increased spending. On the other hand, the European Bank for Reconstruction and Development (EBRD) has not changed its estimates regarding the evolution of the Romanian economy in 2024 and warns that the main vulnerability remains the fiscal position, given that the deficit reached 5.9% of the GDP in 2023, according to a report also published on Wednesday by the international financial institution. According to the EBRD’s most recent forecasts, Romania’s GDP would register a 3.2% growth this year. According to the institution, the growth rate of the Romanian economy slowed down significantly in 2023, to 2.1%, even if this was one of the best performances recorded at the regional level. However, the decrease in private consumption, in the context of high inflation, was counteracted by the increase in investments and government spending. Public spending is expected to continue to grow, against the background of salary increases in the public system and pensions, which might lead to an even bigger deficit in 2024, the EBRD warns.
LAW. Motorists caught drunk driving or driving under the influence of drugs can see their driving permits suspended for up to 10 years, under a new law passed by the Chamber of Deputies on Tuesday. Also, they will no longer be able to delay serving their prison sentence. The bill was initiated in the aftermath of an accident that took place in the 2 Mai Black Sea resort in which two young people were killed after being hit by a driver who had used drugs. The Chamber of Deputies also passed legislation obliging people who are fleeing abroad to evade serving time in prison to cover the extradition costs.
TENNIS. On Wednesday, the Romanian tennis player Simona Halep had to withdraw from the first round of the Trophee Clarins (WTA 125) tournament for medical reasons. She was playing with the American McCartney Kessler, but could not continue due to severe pain in her knee. Wednesday’s match was the second official match that Halep played, since returning to the arena after being suspended for doping. Also on Wednesday, the Romanian Gabriela Ruse qualified for the next round of the tournament in Paris, after winning the match against the Chinese Lin Zhu. (MI)
