Situation of COVID-19 cases in Romania

  • Number of cases on the rise. Again: Daily number of new cases reached 1059, up from yesterday’s 808. Daily death toll: 45.

 

 

Political and regulatory

 

  • Senate, Chamber in Joint Sitting for budget adjustment: The two legislative bodies are meeting on Tuesday, September 22, for the final vote on the Draft Budget Adjustment. The Budget Adjustment Bill includes PSD’s amendments on increasing the pensions by 40% instead of the 14% proposed by the Gov’t. While PSD’s Ciolacu is counting on ALDE, Pro Romania and UDMR votes for the amendments to the budget adjustment to pass, FInMin Cîțu labeled PSD’s action as “criminal”. “What they are doing in a difficult period for Romania, in a period of global economic crisis, is like an act of aggression to the economic stability of Romania, and they are using their majority in Parliament” said FinMin Cîțu, adding that the Gov’t will refer the Bill to the Constitutional Court.
  • PSD run on their own at the general elections: PSD Chairman Marcel Ciolacu announced that PSD run alone at the December general elections, no coalition in sight. At the same time, Ciolacu highlighted that he has an agreement with Victor Ponta’s ProRomania for mutual support for reaching majorities in the County Councils, hoping a similar deal with ALDE.
  • FinMin Cîțu denies raising taxes: The Minister of Public Finance, Florin Cîţu denied that the PNL Government would cut the salaries of the public servants and the pensions and specified that a liberal government means lower and less taxes that everyone has to pay. Florin Cîţu emphasized that the current Government has eliminated a series of taxes introduced by the former government.

Impact on the economy

 

  • Central Bank expects deficit to go up if budget adjustment passes: The Central Bank informs that an increase of the pension point by 40% would lead to an increase of the budget deficit to over 11% of GDP next year. According to the analysis report of the Central Bank, Romania should avoid the increase, precisely because the economy would destabilize even more. Financial markets would not accept high levels of the budget deficit for a long time, which would make it difficult for the economy to recover. 
  • Central Bank’s Badea positive about economic recovery: The Romanian financial system has the resources to resist and contribute to supporting the economic recovery effort, but this is not enough, Leonardo Badea, deputy governor of the National Bank of Romania (BNR), said in a specialized debate on Tuesday.
  • EU Funds Minister: EUR 2 bln in the next 6 months: European funds of up to two billion euros should enter the Romanian economy in the next six months, said on Tuesday, in a specialized debate, the Minister of European Funds, Marcel Boloş. When it comes to the one billion euros for SMEs, Minister Boloș said that until September 25, the financing contract could be signed.