July 19, 2025 UPDATE
A roundup of local and world news
Newsroom, 19.07.2025, 20:00
VISIT Romania and Germany signed in Berlin a joint action plan focused on security and economic policies, on collaboration within the European Union and NATO, support for Ukraine and Moldova, as well as Romania’s OECD accession. The event took place in the presence of the president of Romania, Nicuşor Dan, and the German chancellor Friedrich Merz, during an official visit to Germany that the Romanian head of state made on Friday. The document covers cooperation in weapon procurement, education, culture and the mass media, as well as the promotion of investments, as Germany is Romania’s main trading partner, with bilateral trade standing at EUR 42 billion last year. Prior to the meeting with chancellor Merz, the Romanian president was received by his counterpart Frank-Walter Steinmeier, the talks focusing on deepening the Romanian-German dialogue and cooperation at various levels and on continuing bilateral cooperation within the EU and NATO. All those who work honestly across Romania’s borders are a calling card for our country, was the message conveyed on Friday by president Nicuşor Dan to the Romanians attending a meeting at the Romanian Embassy in Berlin. The president acknowledged that there are several things the Romanian state needs to improve in its relationship with them, including consular services. According to the latest data, over a million Romanians currently live and work in Germany.
REFORM The Romanian government intends to present all the reforms included in the second fiscal set aimed to reduce the budget deficit by the end of the month. Among others, it concerns a reform of special pensions, of state-owned companies, reducing waste in healthcare funding and finalising the digitisation of the national tax agency. A first step was taken on Friday, when PM Ilie Bolojan announced what the reform of local public administration entails. Measures include a ceiling on the number of town hall staff and local police, proportionate to the number of inhabitants, a unified payroll for the town halls that cannot not cover their personnel expenses, and efficiency criteria employed in earmarking public funds to local authorities, PM Bolojan explained. Also, it will no longer be possible to sell and buy cars unless the buyers and sellers have paid all their debts to local authorities, while building permits will be issued only to citizens who have paid all local taxes. This is the second set of measures drafted by the government, after a first one for which the Bolojan Cabinet has taken responsibility before Parliament. Romania has the largest budget deficit in the EU, accounting for 9.3% of GDP.
BUDGET Romania is set to receive over EUR 60 billion from the EU budget for the period 2028-2034. According to data released by the European Commission, Romania has the 6th largest allocation, after Poland, France, Spain, Italy and Germany. Of the total amount, general allocations account for EUR 54.6 billion, EUR 1 billion goes to migration, security and home affairs and EUR 4.6 billion will be channelled into the social climate fund. The EC president Ursula von der Leyen Wednesday proposed a budget of EUR 2 trillion, almost double the current multiannual framework. The Commission proposed changes in the way the EU organises its funding, by country rather than by development policies, as before. The European Parliament has already announced that the draft budget is not enough to meet the challenges facing the EU. At the same time, several member states have voiced dissatisfaction with the cut in funding for the Common Agricultural Policy and the merging of this policy with the cohesion policy, intended to reduce development gaps between the various EU regions and member states.
SMEs High inflation, unfair competition, falling domestic demand and rising wage costs are among the biggest difficulties faced by small and medium-sized enterprises in Romania, according to the latest edition of the “White Paper on SMEs”. The document points out that some SMEs remain optimistic about their operations, but they call on the government to consider elements related to the streamlining and restructuring of public institutions before increasing taxes.
MEDALS Romania won 4 medals at the European Girls’ Olympiad in Informatics (EGOI). According to the Romanian ministry of education and research, the four medalists are Ilinca-Rucsandra Radu (8th grade, silver medal), Ema-Nicole Gheorghe (10th grade, silver medal), Laura Moldovan (11th grade, silver medal) and Iulia-Ela Murariu (8th grade, bronze medal). The 5th edition of the European Girls’ Olympiad in Informatics took place in Bonn, Germany, starting on July 14. A total 228 competitors from 60 countries took part, including 27 from outside Europe.
EMPLOYMENT Romania ranks last in Europe in terms of its citizens’ employment years. According to data centralised by Eurostat, Romanians work a little over 32 and a half years, below the EU average of over 37 years. Northern Europeans are at the opposite pole, with at least 40 years of employment, while the Dutch work almost 44 years. In general, working life expectancy has increased in the EU, but Romania is an exception in this regard, as the only member state where the trend is reversed. A young Romanian man today is estimated to work for almost 36 years, and a woman a little less than 30 years. (AMP)
