THE WEEK IN REVIEW
11-15 August 2025
Roxana Vasile, 16.08.2025, 13:00
Romania and the talks on Ukraine
The week that is ending was marked by the long-awaited meeting on Friday, August 15, in Alaska, between US President Donald Trump and Russian President Vladimir Putin. On the table for talks – Ukraine! In the preamble, on Wednesday, Romanian President Nicușor Dan participated in the meeting, in videoconference format, of the ”Coalition of the Willing”, which includes European Union and NATO member states that support Kiev in the war triggered by the Russian Federation. The President declared that, for Romania, transatlantic coordination and unity are essential. He also emphasized that, as a neighbor with the longest land border with Ukraine, the way in which peace is achieved is extremely important for Romania, as it is for the whole of Europe. ‘The future and security of our continent, including the Black Sea region, are at stake. That is why we need a peace that takes into account the interests of Ukraine and Europe.’, Nicuşor Dan stressed. Earlier, on Tuesday, the president had a phone call with his Ukrainian counterpart Volodymyr Zelenski, in which he reaffirmed Romania’s support for a just and lasting peace, which cannot be built without Ukraine, without respecting its sovereignty and territorial integrity and without the Ukrainian people freely deciding their future. The Romanian head of state also provided assurances that, together with European and transatlantic partners, he will continue to support Ukraine for a secure, stable and democratic future in the region. At the same time, Nicuşor Dan accepted the Ukrainian president’s invitation to go to Kiev this autumn.
Reducing the deficit – from measures to dissatisfaction
Romania’s deficit and external debt continued to grow in the first six months of this year. Against this background, the government in Bucharest is looking for new ways to bring money to the budget. After a first austerity package that came into effect on August 1, which is already seriously affecting ordinary Romanians, the executive presented on Wednesday the second package under consideration – through the Minister of Finance, Alexandru Nazare. He proposed, among other things, the introduction of a tax of 25 lei (about 5 euros) for each parcel of up to 150 euros coming from non-EU areas. This measure is estimated to bring 1.3 billion lei (about 260 million euros) to the state budget. It also aims to change the paradigm regarding the way multinational companies are treated. More specifically, the aim is to move from a turnover tax to a new system of taxing repatriated profits. At the same time, also on Wednesday, Prime Minister Ilie Bolojan asked the institutions subordinate to the government to present proposals for reorganization, increased efficiency and performance indicators, so that, by the end of this month, the executive can prepare a legislative package on the reorganization of these structures. In the meantime, teachers continued their protests in the streets, demanding the repeal of fiscal-budgetary measures targeting the education system in the name of the same deficit reduction. They are especially dissatisfied with the increase in the work norm and the number of students in classes, or the merger of some educational units. Local public administration employees also show major dissatisfaction, under the specter of a 40 thousand reduction in positions in the field.
Over 9% inflation at the end of 2025?
Inflation in Romania increased last month by over 2% compared to June and reached 7.84%. Prices have increased rapidly, which was confirmed by the National Institute of Statistics – food was on average more expensive by almost 8 percent, services by over 7%, and non-food goods by more than 8 percent. The elimination of the energy price cap scheme and the increase, from August 1, of VAT and excise duties will push inflation to a peak of 9.7% in September – as anticipated, in a press conference, by the governor of the National Bank, Mugur Isărescu. This indicator is expected to drop below 3.5% only towards the end of next year. Mugur Isărescu stressed, however, that in order to avoid a recession this year, amid the fiscal consolidation measures announced by the government, it is also essential to accelerate the absorption of European funds.
Romania, 7 months in Schengen
Romania has been in Schengen for seven months, including land borders, after entering with air and sea borders since March 31, 2024. An opportunity for the Border Police to take stock that would justify it in stating that Romania can ensure the security of the external borders of the European Union, even without fixed controls at the borders with Hungary and Bulgaria. ʺWe adapted quickly, we responded promptly, and focused on protecting citizens and supporting free movement.ʺ – said the Border Police. According to them, measures have been implemented to compensate for the lack of fixed controls, by using drones, special operative vehicles, thermal imaging cameras or radar monitoring systems. Random unannounced checks were carried out, hundreds of migrants and persons under criminal investigation for migrant smuggling were stopped from illegally crossing the border, hundreds of thousands of packs of smuggled cigarettes were confiscated, vehicles stolen in the European Union were detected, and counterfeit products were confiscated. There was no lack of international cooperation or support. In conclusion, the waiting time at customs was reduced for citizens and carriers, without decreasing the level of control and vigilance.
Like every year on August 15th, Romanian Navy Day
The Romanian coast prepared for the busiest weekend of the summer season, in the context in which the religious holiday of the Assumption of the Virgin Mary, on August 15th, declared a non-working day, fell, this year, on a Friday, which is good for planning a mini-vacation. As August 15th is also traditionally marked as the Romanian Navy Day, this year, on its 165th anniversary, special aquatic and aeronautical shows were scheduled in all ports on both the Black Sea and the Danube.
