THE WEEK IN REVIEW

June 2-6, 2025

Leyla Cheamil, 07.06.2025, 13:00

Consultations between political decision-makers in Bucharest for the formation of the new government and the economic program

The pro-European parties in Romania – PSD, PNL, USR and UDMR – held negotiations this week on the formation of the new government and the program with economic measures to reduce the budget deficit. President Nicuşor Dan declared on Thursday that all these parties want to enter the government. The head of state stressed that the document drawn up by the party representatives regarding the deficit does not represent the final version, and that it will be politically negotiated by the leaders of the political parties together with him. The main option examined for reducing the budget deficit is to reduce state spending and increase the level of collection, before taking into account increases in taxes and fees. The measures will form the basis of the government program that would be implemented by the future government. In turn, the interim prime minister, the liberal Cătălin Predoiu, stated that there is an urgent need for a government full of the necessary legitimacy, with ministers in office with a mandate given by Parliament, with a clear government program and listed measures. The interim leader of the PSD, Sorin Grindeanu, reaffirmed that the party will make a decision after the completion of the current negotiations on the content of the package of measures. Also later, the holders of positions and portfolios will be discussed, Sorin Grindeanu also specified. On Wednesday, the interim president of the USR, Dominic Fritz, stated that it is obvious that the future government will come out with a package of measures that none of the parties that will form the governing coalition will be satisfied with.

Romania has the largest deficit in the EU

The European Commission published, on Wednesday, recommendations regarding the budgets of the member states. The semi-annual analysis shows that Romania is the only country in the Union with excessive macroeconomic imbalances. The budget deficit is the largest in the EU and, according to the Commission, Bucharest has not taken any effective measures compared to what it has assumed in this regard. The Commission says that this deterioration in Romania was caused, among other things, by the increase in current spending, the increase in wages and pensions. The Commission is asking Romania to present rapid and effective measures, thus risking not meeting the deficit correction objectives by 2030, and may enter into procedures that will lead to the loss of some European funds starting next year. Sources within the Commission say that Romania’s intention not to increase VAT is not viable, but the European executive is open to discussing any solutions coming from the new Romanian government. The same sources say that the large deficit rather requires tough measures, but with a quick effect.

Romanian President Nicușor Dan attends B9 summit – Nordic countries

Gathered on Monday in Vilnius, Lithuania, the leaders of the states on the eastern flank of NATO and the Nordic countries reaffirmed their political, military, economic and humanitarian support for Ukraine in the war with Russia. They announced that they aim to reach at least 5% of GDP for defense and investment in the field, in order to rise to the level of current challenges. These are representatives of the countries of the Bucharest 9 Group – Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia – as well as all the Nordic states – Denmark, Norway, Finland, Sweden and Iceland. Present in Vilnius, President Nicușor Dan, on his first foreign trip since taking office, declared that Romania is concerned about the security of the Black Sea and the neighboring Republic of Moldova, which is why he welcomed the agreement of the participants to continue supporting Ukraine. Romania will continue to support Ukraine, because it is about our own security, the Romanian head of state also declared. On the sidelines of the summit, he had bilateral meetings with several officials, including NATO Secretary General Mark Rutte and Ukrainian President Volodymyr Zelensky, also present at the meeting, who thanked him for “the assurance that Ukraine can count on Romania’s continued support.”

Emergency work at Praid

In Praid, in central Romania, where rainfall led to flooding of the salt mine, emergency work has begun to save the salt mine, support businesses that depended on its operation, and resolve the situation of localities left without drinking water. Eight international experts are working alongside Romanians to find solutions to make the area affected by the floods safe. Authorities say that the expansion of the craters formed does not endanger the activities carried out and that no new craters have appeared. Regarding the diversion of the Corund stream, whose bed collapsed and led to water infiltration into the salt mine’s gallery system, the builder assured that the work will be ready at the beginning of next month. A state of emergency has been declared in several localities in the region for a period of 30 days, and the population has been advised not to consume water from the public supply network.

Measures to combat violence

The Chamber of Deputies in Bucharest adopted, on Wednesday, the draft amending and supplementing certain normative acts in order to combat violence – Romania without violence, providing for tougher penalties in the case of hitting or other acts of violence.

The normative act amends the Criminal Code and Law no. 26/2024 on the protection order, in order to provide the competent authorities with the necessary tools to combat violence in all its forms. Also, a new draft law in support of victims of domestic violence, the vast majority of whom are women, was submitted by the National Liberal Party to the Senate, as the first party notified. The document provides for harsh sanctions for repeat aggressors. According to the initiators, in the first four months of this year, police officers intervened in over 40,000 cases of domestic violence, with approximately 8,000 restraining orders and provisional restraining orders being issued.