Press Review - October 1, 2015

10.01.2015 By Gabriela Stan

EC To Assess Romania's Economic And Fiscal Situation Until May 2018

The European Commission will monitor Romania's economic, fiscal and financial situation until May 2018, following the end of a precautionary EUR2 billion loan agreement that ended Wednesday.

"Post-program surveillance will now start and will involve semi-annual visits to assess the economic, fiscal and financial situation of the country until May 2018," the Commission said Wednesday.

In addition to post-program surveillance, the Commission will continue its close cooperation with the Romanian authorities in the context of the European Semester (a cycle for the implementation of the EU’s economic rules) and the fiscal and macroeconomic surveillance frameworks.

Romania's 2019 Euro Adoption Target Unfeasible, Says Central Bank

Romania's target to adopt the single European currency in 2019 is no longer feasible and the country needs a clear timeline, agreed nationwide, before setting a target, central bank governor Mugur Isarescu said Wednesday.

"The 2019 euro adoption target is no longer feasible because we should be in ERM II in June 2016 at the latest, and preparations for that are complicated. It's no longer possible technically, even if the political will were there," Isarescu told a news conference after the central bank's monetary policy board meeting.

Even if Romania did make a huge effort to meet convergence criteria and make it into the Exchange Rate Mechanism in June 2016, which is unlikely if not downright impossible, it would still have to stay there for at least two years before qualifying to adopt the euro, the central bank governor explained, adding the process should not be rushed at this time. (Puterea)

President Klaus Iohannis Tops Romanians’ Confidence Ranking, Followed By Central Bank Governor

President Klaus Iohannis ranks first in Romanians’ confidence ranking, followed by central bank governor Mugur Isarescu, Romania’s ambassador to US, George Maior, and Prime Minister Victor Ponta, according to an opinion poll conducted by Inscop Research for “Adevarul” newspaper.

Thus, 58.6% of the respondents said that they trust Iohannis much and very much (compared with 61.6% in July), who is followed by Isarescu with 41.6% (from 42.8% in July), while Ponta is trusted by 22.8% of the respondents (compared with 21.7% in July). (Puterea)

PSD Interim Leader Liviu Dragnea: I Haven’t Considered The PM Position

PSD interim president Liviu Dragnea said he hasn’t considered becoming Romania’s Prime Minister, when asked whether the next step after winning PSD presidency would be the position of PM.

”I haven’t considered the PM position. The objective for 2016 is preparing the two electoral voting processes and the new generation of political leaders,” Liviu Dragnea told Antena 3 TV station. Nevertheless, Dragnea avoided saying whether the situation would change if PSD won the 2016 elections.

”It would be a wrong move for me to make plans for 2017/2018. The most important thing for PSD at the moment is to win the elections,” Dragnea stated.  (Romania Libera)

Volkswagen Scandal Lowers Used Cars Price In Romania

The scandal over Volkswagen cheating pollution emissions tests in the US has a surprising effect in Romania: the price of used Volkswagen, Audi, Skoda or Seat cars subject to the software installation is getting lower.

In other words, their owners will be forced by circumstances into lowering the price by 5-10% in order to sell the cars, according to experts. At the same time, the sales of such vehicles are estimated to register a slight decrease.  (Adevarul)