THE WEEK IN REVIEW

November 17-21, 2025

Corina Cristea, 22.11.2025, 13:38

Steps to reduce the budget deficit

The coalition government in Bucharest is preparing a package of 3 fiscal measures, intended to contribute to reducing the budget deficit. The normative act includes measures that include staff and expenditure cuts in local and central administration and could be adopted next week, by engaging in accountability. Also this week, the Government sent the new draft law on magistrates’ pensions to the Superior Council of Magistracy for approval. The fact that, initially, the Government did not wait 30 days to receive the advisory opinion from the Supreme Council of Magistracy was the reason why the CCR established, last month, that the first draft proposed by the Executive was unconstitutional. This time, the document provides for a longer transition period – of 15 years – in which to reach the standard retirement age of magistrates, at 65 years of age. However, the pension amount remained unchanged, at 70 percent of the net salary. The Government would like, for this project as well, to be able to take responsibility in Parliament next week, in order to respect the commitment assumed through the PNRR, to adopt the law by November 28.

Autumn economic forecasts

The autumn forecasts of the European executive show that the Romanian economy is entering a period of slowing growth, amid the austerity measures adopted to reduce the budget deficit, which is the largest in the Union. According to the European Commission report, companies and the population will be affected by austerity in 2026, when economic growth could be only 1.1% of GDP, with the situation to balance out in 2027 through healthy and visible economic growth of over 2%. The forecast estimates that Romania’s budget deficit will decrease from 9.3% last year, to 8.4% this year and to 6.2% in 2026. Inflation could remain above the Central Bank of Bucharest’s target, at least until 2027, the report also estimates. Unemployment could follow a similar path, which would exceed 6% in 2025 following the reduction in economic activity, but which could return throughout 2026.

Government approved the legal framework necessary for the implementation of the SAFE Instrument

The executive approved, on Thursday, by emergency ordinance, the rules for military acquisitions under the SAFE program, to increase European defense capacity. Romania benefits from this European financing instrument of over 16 billion euros, the second largest allocation after Poland. The list of institutions and companies in the defense sector included in the program and potential suppliers is to be approved by the Supreme Defense Council, Minister Ionuţ Moşteanu said. He said that the purpose of this financial instrument is to support the EU member states to invest in the defense industry through joint public procurement, thus strengthening their defense capacity. The SAFE program has a repayment term of 40 years, with a grace period of 10 years, and an interest rate of 3%.

Motions rejected in Bucharest

The Senate plenary session in Bucharest rejected, this week, the simple motion initiated by the AUR party against the Minister of Transport, whom it accuses of the disastrous situation in which the railway infrastructure in Romania is. In the submitted document, AUR representatives also proposed the development of a national strategy for the development of railway transport based on several pillars. Transport Minister Ciprian Serban rejected the accusations made by opposition representatives and claimed that the railway sector benefits from the largest investments in recent years. A similar move took place in the Chamber of Deputies, where a simple motion was debated against Energy Minister Bogdan Ivan, who AUR says has failed to take measures to combat the crisis in the energy sector. This motion was also rejected by a majority of votes.

Visit to Italy by the Romanian Foreign Minister

Foreign Minister Oana Ţoiu paid an official visit to Rome on Tuesday and Wednesday. During talks with her Italian counterpart, Antonio Tajani, the head of diplomacy from Bucharest highlighted Italy’s contribution to NATO and to the increasingly important air policing missions on the Eastern flank. In Rome, the Romanian official also participated in an Italy-Romania strategic dialogue session on foreign policy and security issues. During this expert-level consultation, discussions focused on the current security challenges at the EU and NATO levels, in the context of the crisis in Ukraine. Oana Ţoiu also met with Romanian entrepreneurs in Italy, on which occasion she appreciated that the good bilateral relationship at the governmental level is for the benefit of the over one million Romanians on the peninsula.

Ilie Ilascu was buried in Bucharest

The former political prisoner of the Transnistrian separatist regime, Ilie Ilascu, a prominent leader of the national liberation movement in the Republic of Moldova in the 1990s, was buried on Thursday at the Bellu Cemetery in Bucharest. Ilie Ilascu was the leader of the Popular Front, Tiraspol branch, and in 1992 he participated, together with the military forces of the Republic of Moldova, in the battles against pro-Russian separatists in Transnistria. There he was arrested, tortured, and sentenced to death by an illegitimate court on the left bank of the Dniester. Ilie Ilascu was released after almost 9 years of detention, in 2001, following international pressure. While held by pro-Russian separatists, Ilie Ilaşcu was first member elected to the Parliament of the Republic of Moldova, between 1994 and 2000, then to the Parliament of Romania, from 2000 to 2008. In his memory, President Maia Sandu declared a day of national mourning.

Romania’s national football team found its opponent in the semi-final of the 2026 World Cup play-off

Romania’s national football team will meet Turkey in the semi-final of the 2026 World Cup play-off, according to the draw held on Thursday in Zurich. If they get past Turkey in Istanbul, the Romanian team will also play the play-off final away, against the winner, Slovakia or Kosovo, on March 31, 2026. Romania missed a first chance to qualify for the final tournament hosted by the USA, Mexico and Canada, after finishing 3rd in Group H in the preliminaries, being overtaken by Austria and Bosnia-Herzegovina. The national team’s last participation in a World Cup was in 1998, at the final tournament in France, when it was eliminated in the round of 16 by Croatia.