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Reuters
3 hours ago
- Business
- Reuters
Planned Romanian spending cuts unlikely to prevent tax hikes, potential premier says
BUCHAREST, June 2 (Reuters) - Plans to cut state spending in Romania once a new government is appointed are unlikely to avert the need for tax hikes to rein in a hefty budget deficit and prevent a ratings downgrade, the leading candidate to become prime minister said on Monday. Having gone through a divisive presidential vote last month that closed a long and turbulent election cycle, Romania must now tackle the widest budget deficit in the European Union. The new centrist president, Nicusor Dan, faces the daunting task of nominating a prime minister to put together a majority government from four pro-European parties in parliament - which will then need to enforce austerity measures. The 2025 budget assumes economic growth of 2.5% in targeting a deficit of 7% of GDP - which analysts, ratings agencies and the European Commission say is virtually unattainable without tax hikes. The four parties are now discussing how to cut government spending before deciding on a package of tax hikes that is certain to be unpopular. "This package (of cuts) is very unlikely to avert tax hikes," Liberal Party leader Ilie Bolojan, Dan's first choice for prime minister, told reporters. The parties have yet to agree on cabinet appointments but Dan said he expected a line-up to be ready within two weeks. Romania's growth has steadily slowed since a post-pandemic bounce in 2021, and Brussels forecasts a budget deficit of 8.6% this year and 8.4% next, well above the 7% target for 2025 outlined in a seven-year plan approved by the Commission. A London source with knowledge of talks between Romania, the Commission and ratings agencies said Brussels wanted to see the yearly deficit-to-GDP ratio cut by three percentage points, with 2.5% coming from higher tax revenue and 0.5% from spending cuts. Romania is currently clinging to the lowest investment-grade rating from S&P, Fitch and Moody's, with a "negative" outlook. Election-induced market turmoil may have likely exacerbated the measures required as large capital outflows and central bank intervention to stem a slide in the leu currency have driven a surge in borrowing costs. Foreign currency reserves fell by 6.75 billion euros in May after what central bank governor Mugur Isarescu said were some of the largest capital outflows in Romania's history.
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Pro-EU centrist Dan sworn in as Romania president
Nicusor Dan has vowed to usher in a 'new chapter' in Romania. (AFP pic) BUCHAREST : Pro-European centrist Nicusor Dan was on Monday sworn in as Romania's president, having pledged to stand against 'isolationism and Russian influence'. A week ago, Dan won a tense election rerun, seen as key for the direction of the Nato and European Union country bordering war-torn Ukraine. Although EU critic and nationalist George Simion easily topped the first round of voting, Dan took victory in the second round run-off. The election came five months after Romania's constitutional court scrapped a presidential ballot over allegations of Russian interference and the massive social media promotion of the far-right frontrunner, who was not allowed to stand again. Dan, 55 and Bucharest mayor since 2020, took the oath of office in parliament. 'The Romanian state needs a fundamental change, within the rule of law, and I invite you to continue to be involved in order to put positive pressure on state institutions to reform,' Dan told the assembly after being sworn in. 'I call on political parties to act in the national interest,' he said. Lawmakers from Simion's far-right AUR party did not participate in the ceremony, saying it was 'legitimising a national treason'. Later on Monday, Dan is to meet interim president Ilie Bolojan – who has been tipped as a possible prime minister. Dan has vowed to usher in a 'new chapter' in Romania. He travelled to Warsaw on Sunday to support pro-EU mayor Rafal Trzaskowski, who hopes to emerge the winner of Sunday's race for the Polish presidency. 'We won the Romanian presidential elections. People rejected isolationism and Russian influence,' Dan told thousands of people at a really for Trzaskowski. 'We will resist' Tensions remained high in Romania, with authorities on alert after hundreds of TikTok users called for protests on Monday. 'We will resist!' Simion, 38, wrote on Facebook on Sunday, although he specified that he would not be protesting on Monday. Romania's constitutional court validated the election results on Thursday, after rejecting an appeal by Simion to annul the vote. Simion has repeatedly alleged that there was foreign interference in the vote, including by France, and electoral fraud, without giving any evidence. He condemned the court's decision as a 'coup d'etat'. Simion comfortably topped the first-round ballot on May 4, campaigning against what he called the EU's 'absurd policies' and vowing to cut aid to Ukraine. But, Dan won almost 54% of the run-off vote. Romania's president has significant sway in foreign policy – including representing the country at Nato and EU summits – and appoints key posts, such as the prime minister. Dan, a mathematics prodigy who has promised to fight corruption for an 'honest' Romania, has said he would speak to all four pro-Western parliamentary parties about 'not only the appointment of the prime minister but also the outline of the government's programme', including judicial reforms. Romania, a country of 19 million people, is struggling with high inflation. It is the EU's most indebted country. Dan, who is known for his reserved nature, has voiced support for Ukraine and vowed to keep Romania on its 'pro-Western' path.
Bloomberg
21-05-2025
- Politics
- Bloomberg
Romanian Leader Says Minority Coalition May Need to Push Reforms
Romania's interim president said a government lacking a parliamentary majority may need to push through urgent reforms if parties don't set aside differences and forge a broader pro-European coalition. Ilie Bolojan, who will step aside when President-elect Nicusor Dan takes office in the coming days, said the best option would be an alliance that wields a majority in parliament. But if an agreement is out of reach, a minority government with a weaker mandate would be better than Romania's current caretaker administration, he said.
Miami Herald
20-05-2025
- Politics
- Miami Herald
Ukraine's NATO Ally Can Shoot Down Russian Drones Under New Law
A law has come into effect in Romania that allows its armed forces to down unmanned aerial vehicles unlawfully breaching its airspace, as the NATO member acts to tackle a growing number of Russian drones landing on its shores. Ilie Bolojan, Romania's acting president, signed the law, which the Romanian parliament passed in February in response to the threat posed by the devices landing in its territory, often in spillover incidents from the war in Ukraine. Newsweek has contacted the Romanian Foreign Ministry for comment. Romania shares a 380-mile border with Ukraine, and because of its proximity to the war zone, it has seen drones repeatedly land in its territory, although there is no evidence that Moscow has deliberately targeted the country. Romania's new law allows it to shoot down such drones and could lead other neighboring NATO countries to follow suit, with the potential for escalation and increased questions over the alliance's Article 5 mutual defense clause. The law to shoot down drones violating Romanian airspace was initially drafted in October following a spate of Russian drones landing in the NATO member. Their target had been southern Ukraine's Odesa Oblast. The incidents prompted legislation that the Romanian parliament passed on February 26. Far-right parties challenged the law but lost the case. On Monday, Bolojan signed the legislation, which stipulates that any aircraft without a pilot that illegally crosses the border and flies in Romania's national airspace without authorization may be destroyed or neutralized. He also signed a law on the peaceful conduct of military missions and operations on Romanian territory. Romania must establish the aircraft's position and identity, attempt contact, intercept and fire warning shots. Piloted vehicles can only be destroyed if they conduct an attack or respond aggressively to interception, the law states. Roger Hilton, a research fellow at the GLOBSEC think tank in Slovakia, told Newsweek in February that Romania's move was a significant but measured escalation by a NATO member to Russian drones strafing its border. He said that while there might be the risk of escalation, Bucharest was left with little alternative as it issued a signal to Moscow and NATO that it would not tolerate unchecked airspace violations. Roger Hilton, a research fellow at GLOBSEC, said: "Romania's decision to approve neutralizing drones encroaching its airspace marks a significant but measured escalation by a NATO ally." In March, Romania confirmed another case of a Russian drone crashing in its territory, in the border area near the Ukrainian settlement of Reni. Romania has a new president following elections on Sunday, and there is anticipation over how the NATO country will react if another drone breaches its airspace or whether Russia will be more careful. Related Articles Europe's 'MEGA' Stutter: Far-Right Bid for Power Falters Despite GainsWho Is Nicușor Dan? Romania's Liberal Centrist Mayor Sweeps to VictoryRomanian Exit Polls Show Clear Winner as Rival Declares VictoryFar-Right Parties Bid for Power in Europe's Election 'Super Sunday' 2025 NEWSWEEK DIGITAL LLC.
Newsweek
20-05-2025
- Politics
- Newsweek
Ukraine's NATO Ally Can Shoot Down Russian Drones Under New Law
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A law has come into effect in Romania that allows its armed forces to down unmanned aerial vehicles unlawfully breaching its airspace, as the NATO member acts to tackle a growing number of Russian drones landing on its shores. Ilie Bolojan, Romania's acting president, signed the law, which the Romanian parliament passed in February in response to the threat posed by the devices landing in its territory, often in spillover incidents from the war in Ukraine. Newsweek has contacted the Romanian Foreign Ministry for comment. Why It Matters Romania shares a 380-mile border with Ukraine, and because of its proximity to the war zone, it has seen drones repeatedly land in its territory, although there is no evidence that Moscow has deliberately targeted the country. Romania's new law allows it to shoot down such drones and could lead other neighboring NATO countries to follow suit, with the potential for escalation and increased questions over the alliance's Article 5 mutual defense clause. A PAC-2 ATM missile launched from a Patriot rocket launcher of the Romanian army flying through the sky during an army drill at the Capu Midia military shooting range next to the Black Sea on... A PAC-2 ATM missile launched from a Patriot rocket launcher of the Romanian army flying through the sky during an army drill at the Capu Midia military shooting range next to the Black Sea on November 15, 2023. More DANIEL MIHAILESCU//Getty Images What To Know The law to shoot down drones violating Romanian airspace was initially drafted in October following a spate of Russian drones landing in the NATO member. Their target had been southern Ukraine's Odesa Oblast. The incidents prompted legislation that the Romanian parliament passed on February 26. Far-right parties challenged the law but lost the case. On Monday, Bolojan signed the legislation, which stipulates that any aircraft without a pilot that illegally crosses the border and flies in Romania's national airspace without authorization may be destroyed or neutralized. He also signed a law on the peaceful conduct of military missions and operations on Romanian territory. Romania must establish the aircraft's position and identity, attempt contact, intercept and fire warning shots. Piloted vehicles can only be destroyed if they conduct an attack or respond aggressively to interception, the law states. Roger Hilton, a research fellow at the GLOBSEC think tank in Slovakia, told Newsweek in February that Romania's move was a significant but measured escalation by a NATO member to Russian drones strafing its border. He said that while there might be the risk of escalation, Bucharest was left with little alternative as it issued a signal to Moscow and NATO that it would not tolerate unchecked airspace violations. What People Are Saying Roger Hilton, a research fellow at GLOBSEC, said: "Romania's decision to approve neutralizing drones encroaching its airspace marks a significant but measured escalation by a NATO ally." What Happens Next In March, Romania confirmed another case of a Russian drone crashing in its territory, in the border area near the Ukrainian settlement of Reni. Romania has a new president following elections on Sunday, and there is anticipation over how the NATO country will react if another drone breaches its airspace or whether Russia will be more careful.
