July 2, 2025 UPDATE (I)
A roundup of domestic and international news
Newsroom, 02.07.2025, 19:58
Deficit. Romanian Prime Minister Ilie Bolojan presented on Wednesday the fiscal measures that the government will take in the coming period to resolve the issue of excessive budget deficit. He explained that the deficit is an emergency and a national priority and that Romania risks entering a brutal recession. The Prime Minister announced three packages of measures. The first, which will be approved by the government next week, includes the reorganization of VAT into two rates: 11% for medicines, food, irrigation water, books, firewood and thermal energy, as well as the HoReCa industry, and 21% for everything else. At the same time, excise duties on alcohol, fuel and tobacco will increase by 10%, there will be a reform of school scholarships, and pensions and salaries in the public sector will remain capped in 2026. The government also proposes to increase the teaching schedule by 2 hours in the pre-university and university systems. On the other hand, contributions to the National Health Insurance Fund (CNAS) for pensions over 3,000 lei (approx. 600 euros) will increase by 10%, bank profits will be taxed, and there will be a surcharge on gambling. All measures will come into force on 1 August. In addition, as of 1 January 2026, the tax on dividends will also increase from 10% to 16%. Ilie Bolojan specified that the next two packages will complement the first measures, but will focus on correcting inequalities, reforming public companies and meeting the milestones for accessing European funds. The Prime Minister also said that he had appointed a new leadership at ANAF.
Georgescu. Former independent candidate for the Romanian presidency, pro-Russian extremist Călin Georgescu, who is under preventive judicial control, was sent to trial on Wednesday by prosecutors in a case in which he is accused of Legionary propaganda. He is accused of publicly promoting the cult of persons guilty of genocide, crimes against humanity and war crimes, as well as publicly promoting fascist, legionary, racist or xenophobic ideas, concepts or doctrines on a continuous basis. According to the law, the two crimes he is accused of are punishable by imprisonment from 3 months to 3 years and the deprivation of certain rights. According to the General Prosecutor’s Office, the indictment in the case showed that, between 16 June 2020 and 16 May 2025, at various intervals and on the basis of the same criminal resolution, the defendant publicly promoted, through various means, fascist, legionary and xenophobic ideas, concepts and doctrines. The case sent to trial only includes offences related to Legionary promotion. The former candidate is also being prosecuted for other offences, including incitement to actions against the constitutional order, communication of false information, repeated false statements, and initiating or establishing a fascist, racist or xenophobic organization. Calin Georgescu has announced his retirement from political life.
Drones. A new drone attack took place close to Romania’s border on Tuesday night, when two F-16 jet fighters were ordered to take off to monitor the situation, sources with the Defence Ministry have announced. According to the same sources, Russia resumed its drone attacks against civilian sites and port infrastructure in Ukraine close to Romania’s border on July 1. The National Military Command Center has notified the General Inspectorate for Emergency Situations over the measures taken to alert the population in the Tulcea County, which mainly consisted of Ro-Alert messages. The Defence Ministry is informing in real time the allied structures on the situations generated by the attacks as it keeps permanent contact with the aforementioned structures. The Defense Ministry has conveyed a firm message of condemning these attacks carried out by the Russian Federation against civilian infrastructure elements and objectives in Ukraine, which are unjustified and in grave contradiction with international laws.
Boxing. The former Romanian world boxing champion, Mihai Leu, died at the age of 57 on Tuesday. He had earlier been admitted to a hospital in Bucharest in a severe condition. ”A real champion both in the ring and on motorsport circuits, Mihai was more than an exceptional athlete, he was a symbol of will, courage and passion” says a communiqué posted on his Facebook page. Leu turned professional in 1991 and won the WBO welterweight title in 1997 becoming the first Romanian pugilist to have won a world title in professional boxing competitions. He won all the 28 games he played and in 1994 he entered the car racing competitions where he became national champion in 2003.
Vehicles. The registration of new cars in Romania dropped 22% in the first six months of the year against the same period last year – preliminary data released by the Association of Car Producers and Importers shows. The sales of electric vehicles last month registered a more significant drop than in June last year of over 54%. The absence of the RABLA program of renewing the car fleet prompted people to choose second-hand vehicles mainly in the first six months of the year, and their sale rose by 30 percent than in the same period of last year. The government has recently suspended the RABLA program for natural persons.
Unemployment. The seasonally adjusted unemployment rate in Romania was 5.8% in May 2025, up 0.1 percentage points from the previous month, according to data published on Wednesday by the National Institute of Statistics (INS). The unemployment rate for men was 0.3 percentage points higher than for women. According to the INS, the high unemployment rate of 24.8% among young people (aged 15-24) recorded between January and March 2025 continues to attract attention.
Heat. Two people have died in France from causes related to the heat wave, and over 300 have received emergency treatment, amid the heat wave that has engulfed almost the entire territory of Europe, according to DPA. Much of France experienced extreme heat on Tuesday, with 16 departments, including Paris, on the highest alert level. Temperatures exceeded 41 degrees Celsius in southern and central France, while the capital recorded 38 degrees Celsius. In neighboring Germany, the meteorological service warned that temperatures could reach 40 degrees Celsius. Meanwhile, a massive fire that broke out during the heat wave killed two people in an agricultural area in Spain. The fire, which occurred about 90 kilometers northwest of Barcelona, destroyed at least 5,000 hectares of land, according to media reports. There are also problems in Switzerland, where one of the reactors at the Beznau nuclear power plant, located near the border with Germany, has been shut down due to warm river waters, the company that operates it announced on Wednesday. The second reactor is operating at half capacity. The two reactors in Beznau began operating in 1969 and 1971, making them the oldest nuclear power plants still in operation in the world. (MI)
