February 18, 2015
A roundup of domestic and international news
Mihai Pelin, 18.02.2015, 00:00
CORRUPTION PROBE – Romanian prosecutors this morning arrested PM Victor Ponta’s brother-in-law, Iulian Hertanu, in an inquiry into the misappropriation of European funds. He is facing charges of establishment of an organised crime group, fraud involving European funds and tax evasion. Also subject to legal restrictions in this inquiry are MPs Sebastian Ghiţă and Vlad Cosma, and the chairman of the Prahova County Council Mircea Cosma. Mircea and Vlad Cosma are probed into, among others, for supporting an organised crime group, whereas Sebastian Ghita, the owner of a television station and having close ties with PM Victor Ponta, is accused of misuse of authority and influence peddling. According to judicial sources, the estimated losses to the state in this case are around 1.7 million euro, plus another 555 thousand euros from tax evasion.
PARLIAMENT – In Bucharest, the Chamber of Deputies in discussing today a simple motion tabled by the National Liberal Party in opposition against Labour Minister Rovana Plumb. The Liberals call for scrapping the provisions in an emergency order dismantling Employment Inspectorates. In their opinion, this measure encourages tax frauds and turns the Social Inspection and Payment Agency into subsidiaries of the ruling Social Democratic Party. In reply, the Social Democrats argue that the government does not dismantle the Employment Inspectorate, but merges two institutions in order to have one efficient entity that would actually better prevent fraud. The Liberals and trade union federations called on the Ombudsman to notify the Constitutional Court with respect to this government order.
GREECE – European Central Bank officials are meeting today to decide whether to maintain emergency lending to Greek banks that are bleeding deposits at a rate of hundreds of millions of euros a day. The outflow level is rising after Greece once again rejected the six-month extension of the current austerity package, as requested by international creditors during the talks with the Eurogroup. Athens suggested the replacement of the EU bailout plan with a new loan, which, it says, would give it the necessary time to find a solution to its debt crisis. Eurozone countries dismissed the option and gave Greece until Friday to decide whether it will carry on with the current programme. Experts warn that without a new deal, Greece, which cannot borrow from the international market because of the high interests, risks defaulting and exiting the Eurozone. The Greek debt stands at about 315 billion euros, accounting for close to 175% of its GDP.
UKRAINE – Ukrainian troops have today withdrawn from the besieged town of Debaltseve, the President of Ukraine Petro Poroshenko announced. In Debaltseve, a railway hub that connects the regions of Luhansk and Donetsk, both controlled by the separatists, heavy fighting has been reported for the past three days, in spite of the ceasefire agreement signed in Minsk. News agencies report that, in other parts of the eastern Ukraine front, the secessionists have started to pull back heavy guns to the areas agreed on under the Minsk truce. The EU foreign policy chief, Federica Mogherini, criticised the separatists’ breach of the truce, and warned that the EU was ready to take steps if fighting continues. Since the conflict broke out 10 months ago, over 5,600 people, mostly civilians, have died in Ukraine.
BUDAPEST – The President of Russia, Vladimir Putin, mentioned a possible restart of the South Stream project, during the talks held in Budapest on Tuesday with the Hungarian PM Viktor Orban. Putin said Russia might have a new pipeline built under the Black Sea to Bulgaria, unless hindered by the EU. The talks between the two officials focused on the crisis in Ukraine and energy security. A number of agreements were also signed during the meeting, including in the natural gas sector. Around 2,000 people protested in Budapest against Putin’s visit, criticising the cementing of ties between Hungary and Russia. In power since 2010, Viktor Orban continues to affirm his commitment to NATO and the EU, but his foreign policy promotes openness to the East.
MOLDOVA – The Parliament in Chisinau convenes today to vote on a new cabinet headed by the businessman Chiril Gaburici, after last week the team proposed by the outgoing PM Iurie Leanca failed to get Parliament’s approval. Although pro-European parties got 55 out of the 101 seats in Parliament, in the elections held in November, they failed to create a majority. Two of them, the Democratic Party and the Liberal Democrats, have set up a coalition that only controls 42 seats in Parliament, but for the new government to be endorsed they need at least 51 votes. The election of the new government in Chisinau takes place in the context of a depreciating national currency and rising prices. Parliament has to endorse a government by March the 9th, otherwise it will be dissolved.
