THE WEEK IN REVIEW

July 27-August 1, 2025

Roxana Vasile, 02.08.2025, 17:36

Austerity package

Starting August 1, Romania has enforced the first package of fiscal and budgetary austerity measures to reduce the country’s excessive deficit. Among the measures are the increase in VAT and excise rates, health contributions for pensions higher than 3,000 lei (about 600 euros), the freezing of pensions and salaries in the public sector, and the limitation of bonuses and state employment. In education, the teaching norm for teachers is increasing. At the same time, the amount for hourly pay and scholarship funds is being reduced, so there will be fewer beneficiaries. Employees from many fields of activity have protested against these measures, with unions warning that they could trigger a general strike in September.

After package 1, package 2…

The Bucharest government is currently considering adopting a second package of measures to reduce budget spending. It would, among other things, tax capital and capital transfers, reform state-owned companies, and impose new retirement conditions for magistrates. The executive proposes that judges and prosecutors can retire at the standard age of 65, after at least 35 years of activity, and that the pension should not exceed 70% of the last net salary. It is a starting point for discussions on a future project – said line minister Radu Marinescu. In a press conference this week, the country’s president, Nicuşor Dan, admitted that the current legislation and the amount of pensions encourage people to leave the system early. The reform of the pensions of judges and prosecutors is based on both the need for equity desired by society, which considers magistrates a privileged caste, and the fulfillment of a commitment included in the NRRP. On Thursday, after negotiations in Brussels, the Minister of Investments and European Projects, Dragoş Pîslaru, announced that Romania will not lose a single euro from the non-reimbursable component of the National Recovery and Resilience Plan, i.e. 13.57 billion euros. Regarding the loan component, for which 15 billion euros are available, due to the budget deficit, Romania can only afford to access 8 billion. The revised version of the NRRP is expected to receive final approval from the Brussels authorities in the fall.

First resignation from the Bucharest government

One of the 5 Romanian deputy prime ministers, Dragoş Anastasiu, has resigned from his position. He explained, in a press conference, that he can no longer continue his activity amid accusations of the involvement, in the past, of one of his companies in a corruption case involving a civil servant with the taxation authority. The company was forced to pay the bribe requested by the official for 8 years, who was sentenced to prison for her actions. Dragoș Anastasiu declared himself the target of attacks generated by the government’s intention to reform state-owned companies and said that he decided to resign in order not to damage the image of the executive, not before appealing to Prime Minister Ilie Bolojan to personally take over the inter-ministerial working group set up to reform state-owned companies. Dragoș Anastasiu’s resignation was necessary and inevitable, being a gesture of normality – stated the USR, in power. From the opposition, AUR appreciated Anastasiu’s statements as a lamentable way of justifying the facts and an embarrassing attempt to transform bribery into sacrifice, and corruption into martyrdom.

Catastrophic floods in northeastern Romania

Humanitarian aid consisting of food, drinking water, modular buildings, clothing, diesel fuel, and other essential products has reached the residents of Suceava and Neamț counties, in northeastern Romania, severely affected by recent floods. According to a government statement, the products were taken from state reserves and were distributed to support residents in areas where floods and landslides caused by torrential rains have caused significant damage. Aid continues to arrive from within the country, from private individuals, associations, or parishes. On Thursday, the Minister of Environment, Waters and Forests, Diana Buzoianu, traveled to the two counties to assess the damage on site, as well as to identify effective solutions to support the affected communities and prevent similar situations in the future. In Suceava County, the hardest hit, three people died and over 2,500 were affected. There is major damage to the road infrastructure, the electricity infrastructure, and the water and sewage network. Approximately 600 houses are destroyed or damaged, and cars have been swept away. According to local authorities, 78 million euros are needed to eliminate the effects of the disaster.

Romanian athletes in the top tier

After an incredible race, David Popovici set, on Thursday, with 46 seconds and 51 hundredths, a new European record in the 100-meter freestyle at the World Swimming Championships in Singapore. Just two days before, he had also won gold in the 200-meter freestyle, winning with a timing of 1 minute 43 seconds and 53 hundredths. His achievement is unique! David Popovici becomes the first swimmer in the history of this sport to win gold in both the 100-meter and 200-meter freestyle in two different editions of the World Championships. The first double whammy was in 2022 in Budapest. Romania also won a medal at the World Championships in Singapore, bronze, through Constantin Popovici in the high jump event (27 meters). Also this week, the Romanian men’s saber team achieved an extraordinary performance at the Fencing World Championships in Tbilisi, Georgia. The Romanians defeated Japan after a dramatic semi-final – 45-41 – and won the bronze medal.