July 10, 2025

A roundup of domestic and international news

Newsroom, 10.07.2025, 13:55

Motion. A motion of no confidence was tabled today in the Bucharest Parliament by the nationalist opposition against the PSD-PNL-USR-UDMR coalition executive led by liberal Ilie Bolojan. The move was initiated after the government recently assumed responsibility for the first package of austerity measures to reduce the budget deficit. Entitled “They ruined the country and now they are forcing Romanians to foot the bill – out with the hypocritical government”, the motion will be debated and voted on Monday, 14 July. If it passes, i.e. if it receives the majority vote of deputies and senators, then the Bolojan government will be dismissed. If the motion does not pass, the draft for which the executive has assumed responsibility will be adopted.

Protest. The National Trade Union Bloc (BNS) is organising a protest today in front of the Ministry of Finance (MF) in Bucharest, which will be attended by union members from this ministry, as well as from the National Agency for Fiscal Administration (ANAF). On Friday, the protests will move to the Ministry of Environment, Water and Forests (MMAP). In addition, it has been decided that every Thursday, between 10:00 and 12:00, a protest will take place in front of public institutions where the BNS has union members. The demonstrations are taking place after the Government’s commitment in Parliament to the first package of austerity measures, as well as after the Bolojan Cabinet’s announcement that two more reform packages will follow. The first fiscal package provides for tax increases – VAT, excise duties, dividends – spending cuts and financial discipline measures, with the aim of reducing the budget deficit and stabilising public finances. These measures brought employees of several public institutions in Bucharest and across the country out onto the streets in recent days.

Deficit. In Romania, the trade deficit in the first five months of this year increased by 16.4% compared to the same period last year and reached 14.32 billion euros, according to data published today by the National Institute of Statistics (INS). Between January and May, FOB exports totalled €39.47 billion, while CIF imports totalled €53.79 billion. On the other hand, gross domestic product stagnated in the first quarter of this year compared to the previous quarter, and compared to the same quarter of 2024, GDP growth was 0.3%, according to provisional data from the INS. Industry made a negative contribution to GDP growth, recording a 3% decline in activity. The budget for the current year is based on a economic growth rate of 2.5%.

Rating. Moody’s international rating agency considers the fiscal measures recently taken by the Bucharest government to be “an important step” towards balancing the budget, but warns that any deviation from the agreed plan could undermine stabilisation efforts and exert additional downward pressure on the country’s sovereign rating. The announcement was made by the Ministry of Finance, citing a report published on Wednesday by the rating agency. According to Moody’s, the government’s plan should reduce the deficit and slow the growth of public debt faster than previously anticipated. The agency also stresses that strict adherence to the fiscal targets set is essential for the success of the consolidation programme. Romania has a “Baa3” rating from Moody’s. Until March, it was the only one of the three major rating agencies to have a “stable” outlook associated with Romania’s sovereign rating. Fitch Ratings and S&P Global Ratings have a “negative” outlook, which puts Romania one step away from a “junk” rating (not recommended for investment).

Ukraine. French President Emmanuel Macron and British Prime Minister Keir Starmer are co-chairing a new meeting today in London of heads of state and government from the so-called group of countries committed to supporting Ukraine in the face of Russian aggression. The two officials will hold a videoconference with numerous European leaders, including German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, as well as President Volodymyr Zelensky, who are in Rome, the French presidency announced. The President of Romania, Nicuşor Dan, is participating in the London meeting via videoconference. More than 100 official delegations, 40 international organisations and 2,000 companies are discussing Ukraine’s post-war reconstruction in the Italian capital, in the presence of President Volodymyr Zelensky. Romania is represented by Foreign Minister Oana Ţoiu. Estimates show that Ukraine would need $500 billion to recover from the destruction caused by Russia’s invasion.

Football. Romanian Cup winners CFR Cluj (north-west) play away today against Hungarian side Paksi FC in the first leg of the Europa League first qualifying round. The winner of this match will qualify for the second qualifying round, where they will face Swiss side Lugano. In the most important continental competition, the Champions League, FCSB defeated Andorran team Inter Club d’Escaldes 3-1 on Wednesday in Bucharest in the first leg of the first qualifying round. If it gets past Inter Club d’Escaldes, FCSB will play in the second qualifying round against the winner of the match between Welsh team The New Saints FC (TNS) and North Macedonian team KF Shkendija, which ended in a 0-0 draw on Tuesday in Wales. The return matches are scheduled for next week. (MI)