Press Review - November 22, 2018

11.22.2018 By Oana Gavrila

Romania Must Recoup Lags Before Joining Euro Area

Workforce shortage, unsustainable economic growth and a series of incoherent policies will keep Romania away from euro accession for at least six more years, said central bank governor Mugur Isarescu.

Romania continues to lag behind other EU states due to its fragile economy and the lack of a clear development strategy.

Isarescu said Romania's euro accession is just a plan until the standard of living nears the European average.

Leu Firms vs Euro

The Romanian leu on Wednesday gained 0.04% on the day against the euro, with a midday reference rate of 4.6644 lei to the euro.

On Tuesday the leu stood at 4.6662 units to the euro, down on the day.

Against the US dollar, the leu depreciated from 4.0794 units on Tuesday to 4.0999 on Wednesday.

Dragnea and Dancila Don't Back Laufer's Antisemitism Accusations

Social Democrat Party chairman Liviu Dragnea said he distances himself completely from Ilan Laufer's claims the head of state had rejected his nomination as minister on antisemitic grounds.

Prime Minister Viorica Dancila said she didn't back Laufer's claims either.

Laufer was proposed for development minister and rejected by president Iohannis. Laufer called the rejection “an act of antisemitism".

Dragnea: We Are Accustomed To The President Being Capable Of Anything

Social Democrat Party chairman Liviu Dragnea downplayed on Wednesday a possible second refusal of Romanian President Klaus Iohannis to appoint new regional development and transportation ministers, stating that the party will meet to decide its further course of action in case that happens.

“We have become accustomed to Mr. Iohannis being capable of anything, beyond the Constitution and the laws, but it would be a flagrant violation of the law and of the constitutional court decision. In case he will trample the Constitution, we will meet and see what we will do. Let’s first get to that situation, unwanted from our part, and we shall see,” Dragnea said in a press conference announcing the new nominees for the offices on Wednesday.

Asked if they have a certain plan to deal with the situation, the ruling party leader told journalists that the group “always has at least two backup plans” for any situation.

Romanian Prime Minister Viorica Dancila announced on Wednesday that she would forward the proposals for Lia Olguta Vasilescu as regional development minister and Mircea Draghici as transportation minister, following President Iohannis’ refusal to appoint her previous nominees for the cabinet offices.

She added that she did not re-send her decisions to dismiss the previous ministers, as they were already sent with the initial nominations.

Iohannis has rejected two of the Social Democrat Party’s (PSD) eight proposals for a government reshuffle, for Vasilescu as transportation minister and Ilan Laufer as regional development minister. The president also rejected proposals to dismiss the current ministers in those offices, Lucian Sova and Paul Stanescu, while accepting the other six changes proposed by the country’s ruling party.

Iohannis did not explain the reasoning behind his refusal to appoint the two minister nominees, saying only he considered them “inadequate”.