July 16, 2020 UPDATE
A roundup of domestic and international news
Newsroom, 16.07.2020, 20:00
Economy. The pace of world economic activity begins to pick up again after unprecedented decline this year caused by the coronavirus pandemic, but a second major wave of infections could cause further disruption, warned on Thursday the director general of the International Monetary Fund Kristalina Georgieva. She said the impact of the measures to keep the pandemic in check and limit its economic consequences led to an increase in the already high level of debt, but that it is too early to start withdrawing the safety nets, as they are still needed. The fiscal package worth 11,000 billion dollars adopted by the G20 and other states, as well as the significant injections of liquidities by central banks have helped stabilize world economy, but the danger is still there, warns Georgieva. Last month, the International Monetary Fund again revised downwards its world economic forecast for 2020, estimating a 4.9% contraction and a recovery level below expectations next year.
Coronavirus toll. Coronavirus infections pass 35,000 in Romania, with 777 new cases reported on Thursday. More than 24,000 people have recovered and 1,971 have died. On Wednesday, the government extended the state of alert for a further 30 days amid a growing number of new infections. Globally, confirmed coronavirus cases pass 13,4 million, with reported deaths nearing 580,000. Brazil, Mexico and the US have seen the highest number of new deaths, while the US saw a new record level of new cases. The US is currently the worst hit country in the world, with at least 55,000 new cases a day. Elsewhere, India, Spain, Portugal and Venezuela have reintroduced local restrictions after a spike in the number of new cases.
Travel. As of Thursday, Austria bans direct regular flights from Romania and nine other states, such as Bulgaria, the Republic of Moldova, states in the Western Balkans and Egypt, which are considered states with a high coronavirus risk. The Romanian airliner Tarom has also suspended flights to and from Austria until the end of the month. Certain flights are not subject to the ban, such as flights carrying goods or those conducted for medical reasons or for repatriation of persons and transport of care staff and seasonal workers. 20 European countries, mostly in the EU, have imposed restrictions for travellers from Romania. Greece requires a negative Covid-19 test when entering the country on road. Since Wednesday, travellers to Hungary from Romania will be tested for Covid-19 when crossing the border. Also, the EU citizens are allowed to enter Bosnia and Hertegovina only if they can present a negative Covid-19 test, taken in the last 48 hours.
EU. Romanian president Klaus Iohannis is attending a special meeting of the European Council on Friday and Saturday in Brussels. Talks will focus on the EU multiannual budget for the 2021-2027 period and the European plan for economic recovery. Iohannis is expected to call for more significant funds for the cohesion policy and the common agricultural policy and for additional funds for rural development. On Thursday, the president of the European Central Bank, Christine Lagarde, called on the European leaders to rapidly agree on an ambitious recovery plan, which should contain more grants and less loans.
Funds. The European Commission will support the economic recovery in all Member States by injecting almost € 2.2 billion into 140 key transport projects. They will help build missing links across the continent, support sustainable transport and create jobs, according to a press release from the EU executive. In the case of Romania, the amount is close to 118 million euros, and the ten selected projects include the one on the modernization of the Bucharest North railway line – Henri Coandă International Airport, which is in the construction stage. Feasibility studies will be funded for three other projects: modernization of the Apahida – Suceava (north), Bucharest – Craiova (south) and Coşlariu – Cluj-Napoca (center) railway lines. Grant agreements with project beneficiaries will be signed by January 2021 at the latest.
