December 11, 2015

2016 budget bill discussed in Parliament; BSEC foreign ministers meet in Bucharest; NATO exercise in Black Sea region

Newsroom, 11.12.2015, 12:00

BUDGET LAW – In Bucharest, the expert committees in Parliament are discussing today the draft budget for next year. The talks will continue during the weekend, and the final vote in the Parliament plenum is scheduled for Wednesday. The Social Democratic Party, in power, voiced satisfaction with the bill, which they say concurs with the previous governments views on fiscal relaxation and economic growth. In turn, the Liberals in opposition say the overall budget structure is reasonable, and slight amendments are possible during the debates in the Parliament committees, although no major changes are expected.

INFLATION – In Romania, the annual inflation rate remained negative in November, although it rose from minus 1.6% in October to minus 1.1%, according to data released today by the National Statistics Institute. Last month, the National Bank of Romania lowered by 0.4% its annual inflation forecast, to 0.7% negative, and for next year the inflation forecast was revised up to 1.1%. The central bank governor, Mugur Isărescu, mentioned that the negative inflation rate was prompted by the lowering of the VAT for foodstuffs to 9% this summer.

DEMOGRAPHIC TRENDS – The population of Romania dropped in 2014 below the 20-million threshold, a level similar to the one reported in 1966. According to the National Statistics Institute, until 2013 the number of people fell particularly as a result of labour migration, whereas last year the main cause was the wide gap between the birth and death rates. If this trend continues, in 30-40 years the population of Romania will go down to around 14 million.

EU DIRECTIVE – Romania must fully implement the Directive on Deposit Guarantee Schemes, under which bank clients will benefit from quicker disbursements and a better safety mechanism. The deadline for transposing these provisions in the national legislation was July, and the European Commission has officially requested Romania to conform. Ten EU member countries are yet to introduce the European Directive in their national legislation, and unless they take appropriate measures within two months, the Commission may decide to notify the EU Court of Justice.

BSEC – Bucharest is hosting today the 33rd meeting of the foreign affairs ministers of the Organisation of the Black Sea Economic Cooperation countries. Romania, a founding member of the Organisation, held the rotating presidency for the 5th time. The meeting is chaired by the Romanian Foreign Minister, Lazăr Comănescu, who will stress the progress made in terms of economic cooperation in the Black Sea region during Romanias six-month presidency. According to a news release issued by the Foreign Ministry, Comănescu will hand over the presidency to the Russian Federation, which will head the organisation in the first half of 2016.

NATO EXERCISE – The Romanian Naval Forces frigate “Regina Maria is taking part, alongside vessels from the US, Turkey and Ukraine, in a Black Sea exercise scheduled to conclude on December 16. The exercise is part of the NATO measures designed to enhance confidence among the allies, reads a news release issued by the Naval Forces Command. Regina Maria, with a 220-strong crew, the American destroyer USS Ross, a Turkish frigate and a Ukrainian auxiliary ship will conduct exercises to prepare response to multiple air, naval and submarine threats, to impose sea embargoes and monitor naval transportation. The exercise takes place at a time when the security situation at the Black Sea requires enhanced interoperability between the Romanian Naval Forces and its partners.

HANDBALL – Romanias womens handball team is playing against Russia today, in the last game in Group D at the handball World Championship in Denmark. Although defeated in its last two games by the most valuable opponents so far, Spain and Norway, the defending Olympic and European champions, the Romanians moved forward into the eighth-finals, after having outperformed the national teams of Puerto Rico and Kazakhstan. In the next stage, Romania is to play on Monday against the winner of the match between France and Brazil. Romania is the only country to have taken part in all the World Championship final tournaments since 1957, with three medals won so far, the gold in 1962 and silver in 1973 and 2005.

(translation by: Ana-Maria Popescu)