The Week in Review 11-15 May 2015

A look at the headline-making events this past week

Corina Cristea, 16.05.2015, 12:37

Romanian President Klaus Iohannis pays an official visit to the Vatican and Italy.

On a 3-day official visit to Italy and the Vatican, the Romanian head of state, Klaus Iohannis, was received by Pope Francis on Friday, whom he invited to pay a visit to Romania. On Thursday Iohannis visited the Universal Exhibition in Milan dubbed “Feeding the Planet, Energy for Life”. On Thursday evening Iohannis met with representatives of the Romanian community in the city, on which occasion he voiced his dissatisfaction with how the voting by mail project advances. This is the Romanian president’s second official visit to Italy, after the one in April 2014, when he met with his counterpart Sergio Mattarella, PM Matteo Renzi and the Senate Speaker Pietro Grasso.

Economic forecasts for Romania.

Romania and Cyprus had the most substantial economic growth in the EU in the first quarter of the year, as compared to the previous three months, according to preliminary estimates released on Wednesday by the European Statistics Office. In figures, thanks to a 1.6% growth rate, the two countries are the EU leaders, followed by Spain, Bulgaria, Slovakia, France and Hungary. The year-on-year rate Romania has reported, 4.2%, is also the largest in the EU, followed by Hungary, with 3.1%. Also this week the European Bank for Reconstruction and Development has improved Romania’s economic growth forecast this year up to 3% from 2.8% in January. For 2016 the European Bank for Reconstruction and Development estimates that the Romanian economy will advance by 3.2%, one of the highest growth rates in the emergent Europe.

Romanian senators green lighted the VAT decrease on foodstuffs.

The reduction of the VAT for foodstuffs as of June 1st was green-lighted by the Romanian senators. The measure is aimed at reducing the VAT from 24% to 9% for all foodstuffs, non-alcoholic drinks, and restaurant and catering services. Seen by the executive as a way to encourage consumption and implicitly to consolidate the growth trend reported by the Romanian economy, the measure was regarded with skepticism in terms of the significant drop in shelf prices it was supposed to produce. The calculations presented by the Agriculture Ministry point to a drop in prices for foodstuffs of about 12%. Most Romanians believe that the reduction of the VAT for foodstuffs and non-alcoholic drinks is a good measure both for them and for the economy, shows an opinion survey made by INSCOP.

The Romanian Foreign Minister’s proposal at the NATO meeting in Turkey.

Attending the NATO Foreign Ministers meeting in Turkey, Romanian Foreign Minister Bogdan Aurescu recommended an integrated strategy targeting both NATO’s southern and eastern vicinities. Bogdan Aurescu pointed out that given the challenges to the Alliance’s security, all decisions taken at the NATO summit in Great Britain should be implemented. The recommendation comes against the backdrop of mounting instability in Northern Africa and the Middle East over the course of last year, which is affecting the entire Europe. The NATO foreign ministers have decided at the meeting in Turkey to maintain the NATO presence in Afghanistan even at the end of its current mission, that is after 2016. The new NATO mission, expected to be smaller than the current 12,000-strong training operation, will be civilian-led and include both soldiers and civilians. Its aim will be to advise and instruct Afghan security forces. Over 600 Romanian military are currently deployed in Afghanistan.

Romanias regional development minister and deputy prime minister, the Social Democrat Liviu Dragnea, on Friday received a 1-year suspended prison sentence for using his influence and authority, as secretary general of the Social Democratic Party, with a view to obtaining undue benefits for himself and other persons. This means that Liviu Dragnea will not serve time in prison but he will be banned from holding public office. The decision can be appealed. Right after the sentence was delivered, Liviu Dragnea resigned from the Government and has announced he will also resign his position as executive president of the Social Democratic Party.

According to the anti-corruption prosecutors, Dragnea, as his partys secretary general, organized a system by which local party members sent back real-time information about the turnout and the results, which is illegal before the voting deadline expires and he told local party members and mayors to use whatever means to swell the turnout.

Romanian films in Cannes.

The film “Head Up” by French filmmaker Emmanuelle Bercot, featuring Catherine Deneuve in the leading role, opened the Cannes Film festival on Wednesday. Over 50 productions have been included in the festival, of which 19 will compete for the Palme d’Or. 2 Romanian productions have been included in the Un Certain Regard section, namely, “The Treasure” by Corneliu Porumboiu and “One Floor Below” by Radu Muntean. Andrei Cretulescu’s short “Ramona” is also part of the competition.