THE WEEK IN REVIEW

16-20 December, 2024

Bogdan Matei, 21.12.2024, 13:15

Rating

The Fitch rating agency has changed Romania’s outlook from ‘stable’ to ‘negative’ on its long-term foreign currency credit rating. The assessment reflects the major risks Romania faces due to political instability, fiscal imbalances, and rising public debt, and could lead to higher interest rates on loans the Bucharest government intends to take from the foreign market. The new assessment was made public by the agency two months ahead of schedule, amid severe political instability in the country. Fitch analysts mention the additional political tensions that emerged on the political scene after the cancellation of the presidential elections on November 24, due to external interference, presumably Russian. They also write about the results of the December 1 election, which led to a fragmented Parliament, with a significant increase in the influence of the so-called anti-European and extremist parties (AUR, SOS Romania, and POT). Another reason for concern are the large deficits and the fiscal situation, which continues to deteriorate.

Politics

Meanwhile, the self-declared pro-European parties, PSD, PNL (former sworn enemies, but associated in government for three years, in the name of so-called stability and combating extremism), USR and UDMR (currently, in opposition), have not yet managed to agree on a new executive coalition, which would have a majority of over 60% in the Parliament inaugurated on December 20. USR blamed the sins of the past and the lack of appetite for reforms of the potential governing partners, and quickly left the negotiations. Offended, PSD announced that it was withdrawing from the combination, but that it would vote for a minority right-wing government. Without a government with full powers, the state budget for next year cannot be drawn up either. City halls cannot prepare their own budgets, and citizens will immediately feel the effects – warn local economic analysts.

Timișoara

In Timișoara (west), the 35th anniversary of the outbreak of the Revolution that led to the fall of communism in Romania was marked throughout the week. On December 16, 1989, parishioners gathered in front of the Reform parish to support pastor László Tőkés, who was threatened with eviction by the political police, the Securitate. Their protest turned into a popular uprising. The repression unleashed by the security forces resulted in over 100 deaths and hundreds of injuries. Timișoara became, on December 20, the first city free from communism in Romania, and from here the flame of the revolution spread throughout the country. Under the theme “35 years of freedom”, ample commemorative events were scheduled, dedicated to the martyred heroes, conferences, exhibitions, shows, concerts and film screenings. The inauguration of the Freedom Portal, a light installation that reproduces sounds from the Revolution, followed by the traditional march entitled “Heroes Never Die”, took place. Tuesday was a day of mourning, and on Friday the Rock for Revolution concert was scheduled.

Concert

Two Romanian musicians, violinist Diana Jipa and pianist Ştefan Doniga, performed for the first time in Antarctica. They played in front of over 70 people, researchers and staff from eight science stations. Their performance was the second largest musical event ever organized in that part of the world, after the 2013 concert of the famous rock band Metallica. The two musicians are also the first in the world to have managed to hold professional concerts on all seven continents in less than 100 days. The Romanian artists are now waiting for their performance to be endorsed by the book of world records.

Football

The main shareholder of the Rapid Bucharest football club, one of the most popular in Romania, businessman Dan Şucu, has also become the majority shareholder of the Italian club Genoa – the Series A group announced on its official website. The source states that, following a capital inection, of which 40 million euros were paid on December 14, the Board of Directors approved the offer of the Romanian investor. He subscribed to the entire capital increase, obtaining, in return, a stake in the share capital of about 77% in Genoa CFC and leaving the previous shareholders in the minority – the press release also shows. As president of the Concordia Employers’ Confederation, Şucu (61 years old) is a prominent figure in the Romanian economy. He is the founder of Mobexpert, the largest furniture brand in Romania, with over 2,200 employees. He is also involved in the real estate sector and in the media, with a key role in the business daily ”Ziarul Financiar”. Genoa is one of the traditional teams in Italian football. It holds nine Italian championship titles, the first won in 1898, and the last exactly a century ago, in the 1924 season. Rapid, in turn, is, closer to our times, a triple national champion – 1967, 1999 and 2003 –, having won the Romanian Cup 13 times and the Super Cup four times.