January 12, 2026
A roundup of local and world news
Newsroom, 12.01.2026, 13:55
TAXES The increase in taxes on buildings, land and vehicles in Romania will account for an estimated rise in revenues by approx. EUR 740 million in 2026, and the money collected will stay in local budgets, as the state budget can no longer ensure the increasing fund transfers as a result of the budget deficit, the government said in a statement. According to the source, in the case of individual owners the old taxes did not take into account the market value of buildings, were not updated for inflation, and the collection rate was low, which generated significant revenue losses for local authorities. At the same time, the central and local administration reform, which would reduce public spending, remains on the agenda of the ruling coalition. The government intends to take responsibility in Parliament for the administration reform this month.
ENERGY This morning Romania had an electricity output of almost 7,500 megawatts and a consumption rate of 8,600MW. According to the website of the transmission system operator Transelectrica, the deficit was covered from imports which currently account for roughly 10% of the demand. In the context of the cold weather and the high electricity and natural gas consumption, the line minister Bogdan Ivan convened a new meeting of the National Energy Command today. He had promised on several occasions that the country’s natural gas reserves in storage facilities were enough to cover the high demand of these days.
ECONOMY Romania has met an important benchmark in the National Recovery and Resilience Plan in the semiconductor sector, with over EUR 375 million in innovation projects, the minister of economy, digitisation, entrepreneurship and tourism Irineu Darău announced on Monday. He added that Romania is preparing for new projects under IPCEI (Important Project of Common European Interest, a mechanism through which several states in the EU jointly finance large strategic projects), in key areas for the future. According to the government, with this initiative Romania aims to extends its participation in strategic industrial projects, strengthen the national innovation ecosystem and attract further EU funding for the development of the national economy.
TRADE AGREEMENT The trade agreement between the European Union and the South American trade bloc Mercosur is to be signed on Saturday, January 17, after the EU members approved the document by qualified majority vote on Friday. Romania voted in favor of the deal. Negotiated for almost 25 years, the agreement covers trade relations between the EU and Argentina, Brazil, Paraguay and Uruguay. Mercosur will scrap customs duties on 91% of European exports, including cars, from the current level of 35%, over a period of 15 years. In turn, the EU will gradually give up duties on 92% of Mercosur exports, over a period of up to 10 years. European farmers oppose the deal, claiming it opens the EU market to cheap imports of South American farm products that do not comply with European environmental and food safety standards. In 2024, the EU – Mercosur trade amounted to over EUR 111 billion.
IRAN Telecommunications are still restricted in Iran, but anti-regime protests carry on. Images have surfaced showing crackdowns against protesters and a large number of bodies. According to US media, president Donald Trump is expected to meet with senior advisors to discuss options regarding Iran, which include military strikes, the use of cyber weapons and the provision of online aid to protesters. The Romanian foreign ministry announced that an 8/9 travel warning is in force for Iran (Avoid all travel for the entire territory). In the event that Romanian nationals are already in Iran, Bucharest urges them to avoid crowded places and to refrain from participating in demonstrations, and to carefully consider whether they need to stay in this country. (AMP)
