Press Review - November 23, 2018

11.23.2018 By Oana Gavrila

Romania Risks Entering Recession

Romania's economic growth has slowed and the country is on the brink of recession as the trade balance grows wider and the country risks exceeding the budget deficit limit of 3% of GDP.

The economy needs to be based more on investments instead of consumption and the country needs infrastructure and fewer populist measures. Romania is currently at its worst since the financial crisis of 2008.

Romania is entering election mode, with the bulk of the previous electoral promises backloaded to maximize the impact.

Hefty state handovers without structural reforms should widen the trade deficit further, say ING analysts.

 

Leu Firms Vs Euro

The Romanian leu gained 0.2% on the day against the euro Thursday, with a reference rate of 4.6553 lei/euro, its highest level since September.

On Wednesday, the leu had firmed slightly to 4.6644 units to the euro.

 

President Delays Decision On Contested Cabinet Roles Until After National Day

Romanian President Klaus Iohannis said Thursday he would not make any decision regarding the offices of transportation and regional development ministers until after the celebrations of the country’s Centennial and the National Day, December 1.

The president said the new proposals made by the ruling Social Democrat Party on Wednesday effectively constitute a second government reshuffle proposal in one week, a situation he deemed unacceptable.

Iohannis also criticized the frequent cabinet changes since the 2016 social-democrat victory in parliamentary elections, pointing out that 70 different individuals have been ministers in less than two years.

“How can we imagine that a Government can function with two reshuffles in one week? I do not agree to contribute to a government which is similar to a roller coaster, and what was proposed to me today will be analyzed at the earliest after the Centennial celebrations and December 1. (…) Until then I will not change ministers,” said Iohannis.

 

Weather in Romania Warms Up This Weekend

November has seen extreme weather this year and will continue in the same vein as temperatures will rise by up to 10 degrees Celsius until Sunday.

The cyclone that brought bad weather recently is heading away from Romania and precipitations will halt for a while.

On Sunday, maximum temperatures will range from 3 degrees in the east to 15 in the southwest. Rainfall will return gradually to the west, center and northern parts of the country.