October 6, 2021

A roundup of local and international news.

Newsroom, 06.10.2021, 13:55

Covid-19. Romania today recorded
almost 15,000 new Covid infections and 331 related fatalities, while more than
1,500 Covid patients are in intensive care. The incidence rate hit a new record
high in the capital Bucharest, nearing 11 per 1,000 inhabitants from 6.33 last
week. In incidence rate is over 10 in 10 cities around the country. The
healthcare system is under unprecedented pressure, with hospitals struggling to
find beds for new admissions.

Economy. The World
Bank improved its estimate on the evolution of the Romanian economy this year
to 7.3%, 1.3% higher than previously estimated in June, according to its latest
forecast for Europe and Central Asia. For next year, the World Bank is
expecting a 4.8% growth rate, 4.3% more than previous estimates. In 2023, the
World Bank is expecting Romania to grow by 3.9%. As for Europe and Central
Asia, it says a surprisingly strong recovery in the first half of the year
boosted economic activity on emerging markets and developing countries, with
regional economy expected to grow more than estimated to reach 5.5% this year.

Finance. The decision of the National Bank of
Romania to increase the key interest rate to 1.5% per year, up from 1.25%, came
into force today. The central bank is thus trying to keep in check the recent
steep growth of the inflation rate, which has exceeded estimates. According to
the National Bank, the situation is the result of price hikes, especially
electricity and natural gas, and, while it cannot influence these developments,
it can intervene in areas that it can control. The Bank forecasts that the
price of energy products will continue to grow, with the inflation rate hitting
significantly higher values than expected. Official data show that the annual
inflation rate passed 5.2% in August.

Politics. Romania’s minority government formed
by the National Liberal Party and the Democratic Union of Ethnic Hungarians in
Romania and led by the Liberal Florin Cîţu fell yesterday after a vote of
no-confidence. 281 out of Parliament’s 318 MPs voted against the government.
The motion was initiated by the Social Democrats in opposition and also got the
votes of the Save Romania Union, until recently in the coalition government,
and the Alliance for the Union of Romanians. In his first public reaction after
the vote, president Klaus Iohannis said Romania was facing a health as well as
a political crisis and invited political parties for consultations next week
to nominate a new prime minister.

Summit. Romanian president Klaus Iohannis is
attending the informal autumn summit of the European Council and the EU-Western
Balkans summit hosted by Slovenia. EU leaders together with the six partners in
the Western Balkans are discussing the reaffirmation of the European prospects
of this region. Officials are discussing developing cooperation and social and economic
recovery in the context of the pandemic and the implementation of an economic
and investment plan that will generate more sustainable,
environmentally-friendlier and more digital growth. They are also looking at
ways to boost regional cooperation and collaboration on political and security
matters.

Anniversary. Last night in Paris, Romania celebrated
65 years of UNESCO membership in the presence of its foreign minister Bogdan
Aurescu and UNESCO director-general Audrey Azoulay. The latter congratulated
Romania for its long-standing membership and spoke about future projects. The
Romanian foreign minister said Romania benefitted enormously from cooperation
with UNESCO, in education, culture and science. The anniversary was marked by
an exhibition of documents and photographs from the archive of the Romanian
foreign ministry and a concert given by Violoncellissimo ensemble led by Marin
Cazacu. (CM)