October 6, 2021

Covid-19. Romania today recorded almost 15,000 new Covid infections and 331 related fatalities, while more than 1,500 Covid patients are in intensive care. The incidence rate hit a new record high in the capital Bucharest, nearing 11 per 1,000 inhabitants from 6.33 last week. In incidence rate is over 10 in 10 cities around the country. The healthcare system is under unprecedented pressure, with hospitals struggling to find beds for new admissions. 

Economy. The World Bank improved its estimate on the evolution of the Romanian economy this year to 7.3%, 1.3% higher than previously estimated in June, according to its latest forecast for Europe and Central Asia. For next year, the World Bank is expecting a 4.8% growth rate, 4.3% more than previous estimates. In 2023, the World Bank is expecting Romania to grow by 3.9%. As for Europe and Central Asia, it says a surprisingly strong recovery in the first half of the year boosted economic activity on emerging markets and developing countries, with regional economy expected to grow more than estimated to reach 5.5% this year.

Finance. The decision of the National Bank of Romania to increase the key interest rate to 1.5% per year, up from 1.25%, came into force today. The central bank is thus trying to keep in check the recent steep growth of the inflation rate, which has exceeded estimates. According to the National Bank, the situation is the result of price hikes, especially electricity and natural gas, and, while it cannot influence these developments, it can intervene in areas that it can control. The Bank forecasts that the price of energy products will continue to grow, with the inflation rate hitting significantly higher values than expected. Official data show that the annual inflation rate passed 5.2% in August.

Politics. Romania's minority government formed by the National Liberal Party and the Democratic Union of Ethnic Hungarians in Romania and led by the Liberal Florin Cîţu fell yesterday after a vote of no-confidence. 281 out of Parliament's 318 MPs voted against the government. The motion was initiated by the Social Democrats in opposition and also got the votes of the Save Romania Union, until recently in the coalition government, and the Alliance for the Union of Romanians. In his first public reaction after the vote, president Klaus Iohannis said Romania was facing a health as well as a political crisis and invited political parties for consultations next week to  nominate a new prime minister.

Summit. Romanian president Klaus Iohannis is attending the informal autumn summit of the European Council and the EU-Western Balkans summit hosted by Slovenia. EU leaders together with the six partners in the Western Balkans are discussing the reaffirmation of the European prospects of this region. Officials are discussing  developing cooperation and social and economic recovery in the context of the pandemic and the implementation of an economic and investment plan that will generate more sustainable, environmentally-friendlier and more digital growth. They are also looking at ways to boost regional cooperation and collaboration on political and security matters.

Anniversary. Last night in Paris, Romania celebrated 65 years of UNESCO membership in the presence of its foreign minister Bogdan Aurescu and UNESCO director-general Audrey Azoulay. The latter congratulated Romania for its long-standing membership and spoke about future projects. The Romanian foreign minister said Romania benefitted enormously from cooperation with UNESCO, in education, culture and science. The anniversary was marked by an exhibition of documents and photographs from the archive of the Romanian foreign ministry and a concert given by Violoncellissimo ensemble led by Marin Cazacu. (CM)