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May 19, 2025 UPDATE

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Newsflash
Newsflash

, 19.05.2025, 20:00

PRESIDENT – The pro-Western mayor of Bucharest, the independent Nicusor Dan, defeated ultranationalist populist George Simion, leader of the AUR, in the second round of the presidential election in Romania, held on Sunday. Nicusor Dan won 53.6% of the vote, while his contender 46.4%. Voter turnout was almost 65%, well above the 53% in the first round. Aged 55 ,  Nicusor Dan is a mathematician by training. He became known more than two decades ago, due to his fight against the real estate mafia in Bucharest. He is the second mayor of the capital to become president, after Traian Basescu, but the first to do so as an independent.

 

REACTIONS – Romania’s interim president, Ilie Bolojan, congratulated Nicuşor Dan on winning the presidential elections and thanked citizens for their large turnout, regardless of the option they had. PSD president, Marcel Ciolacu, also congratulated the pro-European mayor of the capital on his victory and said that Romanians proved, once again, to the world that, in the most difficult moments, that they know how to overcome differences and be united in the face of danger. European Commission President, Ursula von der Leyen, said that the Romanian people went to the polls in large numbers and chose the promise of an open, prosperous Romania, in a strong Europe. French president, Emmanuel Macron, said in turn that, despite numerous attempts at manipulation, the Romanian people chose democracy, the rule of law and the European Union. “For Ukraine – as a neighbor and friend – it is important to have Romania as a reliable partner,” said Ukrainian President Volodymyr Zelensky, who congratulated Nicuşor Dan on his ‘historic victory’. German Chancellor Friedrich Merz, as well as Greek Prime Minister Kyriakos Mitsotakis, also congratulated Nicuşor Dan.

 

EFFECTS – The victory of the pro-Western mayor of Bucharest, Nicuşor Dan, in the decisive round of the presidential elections in Romania had an immediate effect on the interbank and stock markets. The leu strengthened against the main currencies, the quotation announced by the National Bank falling from 5.10 lei to 1 euro on Friday, to 5.03 lei to 1 euro on Monday. The 3-month ROBOR was 7.26% Monday, from almost 7.4% on Friday, and the 6-month ROBOR reached 7.37%, from 7.48%. These indices are used to calculate the costs of loans in lei with variable interest rates, especially for companies, and have registered increases in the last two weeks amid pressures towards depreciation of the national currency. The Bucharest Stock Exchange also opened Monday’s trading session on an increase, with the main indices going up between 3.5% and 4%. However, experts warn that, beyond the emotional reactions of the moment, investors are waiting for concrete measures to mitigate Romania’s large deficits.

 

LAWS – Two laws that strengthen the country’s defense capacity and deter threats were promulgated today by Romania’s interim president, Ilie Bolojan. The law that regulates the unfolding of military missions and operations in peacetime, on the territory of the Romanian state, when there is no state of emergency, siege, mobilization or war, stipulates that structures from the Romanian Army may be transferred for specified periods of time under the subordination of a foreign armed forces commander leading a military operation on the territory of the Romanian state. The second normative act, the law on the control of the use of airspace, establishes the authorities and institutions that have competences in taking measures to prevent and counter the use of national airspace by aircraft, unmanned aircraft systems and other aerial vehicles. Thus, a new framework of cooperation and coordination is created at the level of institutions that have competences in the management and monitoring of national airspace, which contributes to increasing aviation safety and security.

 

COURT – The court hearing to examine the request of the leader of AUR, George Simion, to have his entry ban on the territory of the Republic of Moldova canceled was postponed to July 2 due to the fact that his representatives did not show up. The Court was to analyze the legality of the decision taken by the General Inspectorate for Migration in a file that is classified. The ban is valid until 2028. In 2015, on the eve of a protest, former presidential candidate George Simion was declared an undesirable person for national security reasons. In 2018, he was expelled again and received a five-year entry ban on the territory Republic of Moldova, which was extended in February 2024. The AUR leader is also banned from entering the territory of Ukraine.

 

ECONOMY – The European Commission has reduced its economic growth estimates for the Romanian economy this year to 1.4%, from 2.5% previously. The EU executive also warned that the deficit will remain at a high level, over 8% both this year and next year. The spring economic forecasts published by the EC on Monday also show that the unemployment rate is expected to fall to just over 5% in 2025 and 2026. As regards inflation, the European Commission expects it to be at a level of 5.1% this year and 3.9% next year. However, the Commission announces, things could improve significantly if the future government in Bucharest applies the new fiscal reforms from the plan that it must agree on with the EU executive in the coming months. Moreover, if the political situation stabilizes together with the fiscal one, investor confidence will increase, and Romania’s situation will improve, the European Commission also said. (EE)

 

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