January 15, 2025 UPDATE
A roundup of local and world news
Newsroom, 15.01.2025, 20:00
CULTURE DAY In Romania, January 15 was National Culture Day, marking the birth date of the national poet Mihai Eminescu. This year was all the more special as it celebrated the 175th anniversary of the birth of the greatest Romanian poet of all times. Many events took place in Bucharest and throughout the country, including conferences, debates, concerts and exhibitions, and entry to many museums was free. The Bucharest National Opera celebrated National Culture Day on Wednesday evening with a gala performance celebrating Romanian culture as expressed in faith, art and identity. The “Luceafărul” exhibition was opened at the Bruckenthal National Museum in Sibiu, the Lyric Theatre in Iași scheduled a special performance, while an exhibition called “Past, Present and Future” was opened at the Corvin Castle. On National Culture Day, the Radio Romania Culture channel invited a teenager from Vâlcea (south) to the theatre for the first time. With this symbolic gesture, the only national radio station dedicated exclusively to the arts calls on people and institutions to facilitate access to culture for their peers.
PROTEST The ‘CulturMedia’ National Federation of Culture and Press Trade Unions protested on Wednesday, on National Culture Day, wearing white armbands, to warn against the underfunding of the culture sector and the salary inequities to which employees of museums, libraries and cultural centers are subjected. The Federation demands that 1% of GDP be earmarked for Culture, that the salaries of museum and public library employees be brought in line with the education payment scheme, the elimination of the huge salary disparities between employees of performing arts institutions and employees of public museums and libraries, bonuses for work carried out on weekends and public holidays, as well as the payment of overtime. The unionists also demand that hiring be resumed, to counter the chronic personnel shortage in cultural institutions.
BUDGET The VAT will not be increased, Romania’s PM Marcel Ciolacu promised, after talks on the 2025 state budget bill with the finance minister, Tánczos Barna, and with the head of the national tax administration agency, ANAF. Ciolacu added the tax reform is expected to help bring down the inflation rate and increase people’s spending power. PM Marcel Ciolacu reiterated that the 2025 state budget bill will be passed by the government by the end of this month and will subsequently be sent to Parliament, for review and endorsement in the first week of the legislative session due to begin in February. He also said that the 7% deficit target agreed with the European Commission will be maintained, as will the target of 7% of GDP for investments. The PM also said that last year state revenues went up by 27%, and this year a roughly 30% increase is expected. The main indicators for the 2025 budget will be presented at Thursday’s government meeting. Also on Thursday, the Cabinet is to approve the presidential election timetable.
INTERESTS The Board of Directors of the National Bank of Romania has decided to keep the key interest rate at 6.5% per annum. Also, the lending facility interest rate stays at 7.50% per annum, the deposit facility interest rate at 5.50% per annum, and the minimum reserve requirements for banks’ national and foreign currency liabilities will also stay unchanged. Last year, the central bank lowered the key interest rate twice, in July, from 7% per annum to 6.75% per annum, and in August to 6.5% per annum. The key interest rate had not been changed since January 2023. According to the bank, the annual inflation rate rose in the last three months of 2024 more than expected, to 5.14% in December, from 4.62% in September. The National Bank estimates the inflation rate will decrease in the first quarter of 2025, but slower than previously expected. Significant uncertainties and risks related to inflation arise from the future tax and revenue policy, given the implementation of the set of tax and budget related measures recently approved by the Government for the purpose of fiscal consolidation, but also from the situation on the labor market and the wage dynamics in the economy. At the same time, significant uncertainties continue to be linked to the evolution of energy and food prices, as well as to future developments in the crude oil market, amid geopolitical tensions, central bank experts argue.
ELECTION The MP Emanuel Ungureanu (Save Romania Union) has filed a criminal complaint with the Prosecutor General’s Office against Romania’s Prime Minister Marcel Ciolacu and the head of the Timiş County Council, Alfred Simonis. Ungureanu said the complaint was related to the the two officials’ TikTok chat about redirecting votes from the Social Democratic party to the Alliance for the Unity of Romanians candidate George Simion in last year’s presidential elections. He accused Ciolacu and Simonis of corrupting voters and misusing influence and authority to obtain undue benefits, as well as preventing the exercise of electoral rights. Emanuel Ungureanu called on prosecutors to question the heads of Social Democratic Party branches and to conduct computer searches to see if the call to direct votes to George Simion and Călin Georgescu circulated on the Social Democrats’ WhatsApp groups. (AMP)
