November 14, 2025 UPDATE
A roundup of local and international news.
Newsroom, 14.11.2025, 19:50
Inflation. The National Bank of Romania has revised upwards its inflation forecast for the end of 2025 to 9.6%, from 8.8% previously, and expects it to reach 3.7% at the end of 2026, compared to 3% in the previous forecast, according to data presented on Friday by the Governor of the National Bank, Mugur Isărescu. According to the Central Bank, the return to the previous trajectory is expected in the first quarter of 2027. The annual inflation rate skyrocketed in the third quarter of 2025, mainly as a result of the elimination of electricity price caps, the increase in VAT and excise duties, and against the backdrop of a strong increase in labour costs, the governor of the National Bank explained. Regarding long-term debt, Mugur Isărescu emphasised that “for 10-year loans, Romania’s risk premium has dropped below Hungary’s level”, signalling an improvement in investors’ perception of sovereign risk. Also on Friday, the National Institute of Statistics said Romania’s economy shrank by 0.2% in the July-September period compared to the April-June quarter, but grew compared with the same period last year.
Unions. The National Trade Union Bloc demands a real reform of labour taxation in Romania, by reducing social security contributions and protecting low and medium incomes, namely the transfer of part of the social security contributions payable by employees to employers in order to partially recover the purchasing power lost during this period. Trade unions call for the implementation of, the Resolution of the Committee of Ministers of the Council of Europe. This requires Romania to restore the balance in the financing of social security systems, given that employees cannot cover more than 50% of the financing of the social security system. The demands are included in a document to be discussed during talks with the representatives of the ruling parties. The representatives of the National Trade Union Bloc were invited to discussions following a protest staged on Wednesday in Bucharest against the “decrease in the purchasing power and the anti-employee policies promoted by the government”. The protest, attended by over 5,000 members, was followed by a march, with symbolic stops in front of the main institutions responsible for the country’s economic and social policies.
Drone. The Russian ambassador to Bucharest, Vladimir Lipaev, was summoned on Friday to the headquarters of the Ministry of Foreign Affairs for discussions about the drone that entered Romanian airspace on November 10. According to a ministry statement, the ambassador was presented with “tangible, extensive and solid evidence of the violation of Romania’s airspace by an unmanned aerial vehicle belonging to the Russian military, on the night of November 10th“. The drone parts recovered by the Romanian authorities from the crash site of the aerial vehicle undoubtedly prove its origin and involvement in the massive attacks that night against the Ukrainian civilian infrastructure near the border with Romania, the ministry also said. The Russian ambassador was conveyed Romania’s firm protest against this unacceptable and irresponsible act, which represents a violation of Romania’s sovereignty. “Romania and its allies have the capabilities and the framework for action to manage any risk situation. Romania is in permanent contact with its allies and other EU members on these subjects”, the Romanian foreign ministry also said.
IMF. The Board of the International Monetary Fund is urging Romania to implement an appropriate mix of policies and ambitious structural reforms to support growth, restore fiscal sustainability and safeguard financial stability, according to an IMF report following talks in Bucharest. The IMF directors stressed the need to fully implement the fiscal consolidation measures planned for 2025 and 2026, followed by additional adjustments over the medium term to strengthen market confidence and ensure fiscal sustainability. An IMF mission was in Bucharest in September to review recent developments in the Romanian economy. The team met officials from the Ministry of Finance, the National Bank of Romania and other government agencies, as well as representatives of the private sector and NGOs. Romania does not currently have a financing arrangement with the International Monetary Fund, but the latter annually assesses the performance of the Romanian economy, based on Article IV consultations.
Visit. The new Prime Minister of the Republic of Moldova, Alexandru Munteanu, on Thursday paid his first official visit to Bucharest since taking office. He met President Nicuşor Dan, his counterpart Ilie Bolojan, the Speakers of Parliament and Her Majesty Margareta, Custodian of the Crown of Romania. The agenda of the talks at the government headquarters included the of Moldova’s European Union accession process and common interest projects in the current geostrategic context. Ilie Bolojan said Romania is and will remain the closest supporter of Moldova’s European path and, at the same time, a strategic partner.
Moldova-EU. The Republic of Moldova officially took over the presidency of the Committee of Ministers of the Council of Europe on Friday, during a ceremony held in Strasbourg. The Moldovan Minister of Foreign Affairs Mihai Popşoi presented the priorities of the mandate, emphasising that the key directions of the Moldovan presidency are support for Ukraine and making the Special Tribunal for the Crime of Aggression and the Complaints Commission operational. In the next six months, while it will hold the presidency of the Committee of Ministers of the Council of Europe, the Republic of Moldova will insist on children’s rights, combating violence against women, strengthening social rights, supporting local democracy and fighting disinformation. (CM)
