THE WEEK IN REVIEW

July 21-25, 2025

Bogdan Matei, 26.07.2025, 18:04

Government

The pro-European governing coalition in Bucharest – PSD-PNL-USR-UDMR – has decided to postpone until mid-August the adoption of the second package of measures aimed at reducing the record budget deficit for a member country of the European Union. During this period, all local investment projects will be analyzed one by one, as the Social Democrats have requested from their governing partners. The party’s interim leader, Sorin Grindeanu, claims that the SDP has managed to impose its arguments regarding the continuation of the ”Anghel Saligny” program, to modernize local communities, through investments in county and local roads, water infrastructure, sewage, water treatment plants, and the expansion of natural gas distribution networks.

Trade Unions

The four main Romanian trade union confederations have threatened the government with a general strike and blocking the start of the school year in September if the expected austerity measures confirm that balancing the budget deficit is left exclusively on the shoulders of the population. The President of the National Trade Union Bloc, Dumitru Costin, says that, most likely, the first to pay for the lack of performance of the management of state-owned companies will be the employees, through salary cuts and job losses, and emphasizes that an analysis must be made of each company, and for the underperforming ones, it must be seen why they are in this situation. The education unions announce that, although on vacation, their members will organize protests next week, especially against the increase in the teaching norm, which, they say, would result in the loss of 15,000 teaching positions, even though the relevant minister, Daniel David, has refuted this hypothesis.

Experts

Financial rating agency S&P Global Ratings has affirmed Romania’s long-term and short-term debt ratings at “BBB minus/A-3”, with a negative outlook. According to the source, the election of Nicuşor Dan as president in mid-May, followed by the formation of a new government under Prime Minister Ilie Bolojan, ended a prolonged period of political uncertainty. The government relies on a large parliamentary majority, which allowed it to legislate a set of fiscal consolidation measures. The total impact of the measures is 1.1% of GDP in 2025 and a sizable 3.5% of GDP in 2026, divided relatively equally between revenue and expenditure measures. The agency said: “In our view – and given the second-round effects on the economy – this will contribute to reducing deficits to below 7.7% of GDP this year and 6.4% in 2026, from 9.3% of GDP in 2024,”. However, the fiscal adjustment process will further dampen what was already a weak growth outlook: “we have revised down our real economic growth forecasts to 0.3% this year (from 1.8% previously) and to 1.3% in 2026 (from 2.6%).” The next rating agency to plan a review of Romania is Fitch Ratings, which announced it would publish it on August 15. All three major rating agencies (S&P Global Ratings, Moody’s and Fitch) have a negative outlook associated with Romania’s sovereign rating, which places the country one step away from the junk category, not recommended for investment.

Prosecutors

The decision signed by Prime Minister Ilie Bolojan regarding the firing of Cristian Popescu Piedone from the position of president of the National Authority for Consumer Protection was published in the Official Gazette. A colorful public figure, a declared leftist politician, former district mayor in Bucharest, who has already been in prison, Piedone was placed under judicial control by anti-corruption prosecutors in a case in which he is accused of having warned a hotel in the Sinaia mountain resort that an inspection was to be carried out there. The man admitted that the hotel owner, former liberal parliamentarian Dan Radu Rușanu – also with a criminal record – is his friend, but denied that he had notified him before the inspection.

Diplomats

The new head of diplomacy in Bucharest, Oana Ţoiu, went on an official visit to the neighboring Republic of Moldova, where she was received by President Maia Sandu, and had meetings with Prime Minister Dorin Recean, with her counterpart Mihai Popşoi, and with the president of the legislature, Igor Grosu. According to Radio Romania correspondents, Minister Ţoiu reiterated the firm commitment of President Nicuşor Dan, Prime Minister Ilie Bolojan, and the entire Government in Bucharest to support the authorities in Chişinău in the European integration process.

Footballers

Four away games, two defeats, two draws, one goal scored, three conceded – this is the balance sheet of the Romanian football teams in the first legs of the European Cup preliminaries this week. The champion FCSB, from Bucharest, was defeated by the North Macedonian team KF Shkendija 1-0 in the second preliminary round of the Champions League. The vice-champion CFR Cluj (north-west) drew, 0-0, in Switzerland, with FC Lugano, in the Europa League. Universitatea Craiova (south) lost, 1-2, to the Bosnian team FK Sarajevo, in the Conference League. Returning to the European cups after more than half a century, Universitatea Cluj finished 0-0 with FC Ararat-Armenia, also in the Conference. The decisive matches for the qualification take place next week, all four in Romania.