December 21, 2013 UPDATE

For a roundup of domestic and international news, click here.

Roxana Vasile, 21.12.2013, 12:19

IMF – The International Monetary Fund says the Government in Bucharest needs to take certain measures to bring additional revenue to the state budget so as to offset the three-months postponement of the introduction of the increase in the excise duty on fuel. The IMF hails the signing of the 2014 budget law by Traian Basescu, although notes that the budget deficit should be maintained below the 2.2% target. We recall that the president agreed to sign the budget for next year after the Government pledged to postpone the 7 eurocents increase in excise duties on fuel by three months. Under Romania’s agreement with the IMF, the excise duty was supposed to be levied as of January 1, 2014.

EU – The European Commission has harshly criticized the decision of Standard&Poor’s rating agency to downgrade the credit rating of the European Union from AAA’ to “AA +’ with a stable outlook. Standard&Poor’s claims the decision is based on a deterioration of its financial profile and a weakening of the group’s cohesion. Union officials are saying the other two major rating agencies, Fitch and Moody’s, have kept the triple-A rating for the EU. This allows countries to access low-interest loans. Only 10 countries in the world, of which 7 in the EU, have been given triple-A ratings by all the three agencies.

COMMEMORATION – Commemorative events took place in Bucharest on Saturday to mark 24 years since the anti-communist revolution in this country. On December 21, 1989, Bucharest joined the revolution unleashed in Timisoara on December 16, targeting the Ceausescu regime. The revolution peaked on December 22, when hundreds of thousands of people took the headquarters of the Communist Central Committee by storm, forcing the dictatorial couple Nicolae and Elena Ceausescu to flee the capital city. The two underwent a mock trial and were executed. Romania was the only East-European country where the collapse of the communist regime resulted in bloodshed, as over a thousand people were killed.

PROTESTS – Marking 24 years since the 1989 anti-communist revolution, some one thousand people gathered on Saturday evening in central Bucharest, voicing slogans and displaying banners against the Government. Protesters complain about the lack of clear changes 24 years after the collapse of communism.

FUNDS – The European Commission has sanctioned the disbursement of 240 million euros from the Sectorial Operational Programmes Transport and Environment to the Regional Operational Programme, the Romanian Ministry of European Funds reports. The decision is due to have a major impact on the development of local communities. The money will be used to finance schools, hospitals and the building of county roads. According to the aforementioned source, the Regional Operational Programme is the best-performing programme in Romania, under which Romania has attracted a total of 1.64 billion euros so far.

EUROBAROMETER – Romanians are optimistic regarding the future of Europe, although three quarters of them believe their voice doesn’t matter at EU level, reads a recent Eurobarometer. As regards the economic evolution at local and EU level, opinions vary: 35% of Romanians believe nothing will change, while 34% expect things to get worse. Romanians’ main fears are related to the economic crisis, price hikes and unemployment. At EU level, only the Danish believe they have a say in decision-making processes, being the most optimistic about the future of the Union. The most pessimistic countries regarding the future of the UE are Greece, Cyprus and Portugal.

CYBER CRIME – Romania can contribute to the EU defence strategy by means of its defence industry and by improving cyber security. Upon his return from the Winter Summit of the European Council, president Traian Basescu said the Union was ready to formulate a clear-cut maritime security strategy, which should include the Black Sea. According to president Basescu, the European Council decided that the EU should have drones, state-of-the-art satellite communication, but also a multinational air force for aerial refuelling of planes, which is another field Romania can get involved in. Traian Basescu suggested that the Bureau of Combating Cyber Crime, inaugurated in Bucharest in November, should become a European agency.

US – The GDP of the United States dropped below expectations in the third quarter of 2013, by 4.1%, after the country had reported a 3.5% increase in the previous quarter. Economic pundits had previously estimated a 3.6% increase for the July-September period, although this was superseded due to an increase in consumption. Service charges went up by 0.7% as compared to the forecast, while durables charges exceeded the estimated level by nearly 2%.

LOCKERBIE — “Terrorism will never prevail”, British Prime Minister David Cameron said on Saturday during a commemorative event marking 25 years since the Lockerbie bombing. The Prime Minister said it was one of the worst aviation disasters ever and one of the bloodiest terrorist attacks in the UK. The bombing killed 270 people, of whom mostly American. A Libyan male was the only person sentenced for orchestrating the attack.