Friday, March 30, 2007

Romanian fiscal deficit

Romania's government ran a consolidated budget deficit of 0.67 percent of gross domestic product at the end of February, compared with a surplus of 0.6 percent in January, its Finance Ministry said yesterday. (Reuters)

KBC Lease completes acquisition of majority stake in Romstal Leasing in Romania

Following the announcement on 15 December 2006, KBC Lease today closed the deal to acquire 99.34% of Romstal Leasing, the largest independent leasing company in Romania. KBC Lease also acquired full ownership of INK Insurance Broker, the seventh largest insurance broker in Romania.

As planned, it paid 70 million euros in the deal. With this move, KBC has taken another important step towards achieving its strategy of expansion in Central and Eastern Europe, its other home market.

Romstal Leasing is the largest independent leasing company in Romania. At the end of 2006, it held a 4.20% share of the Romanian leasing market and was ranked thirteenth. The bulk of its financing activity (43.30%) relates to car leasing, but it also leases delivery vans, lorries, machinery and equipment and real estate. Romstal Leasing boasts a high level of profitability, with a ROE of 29.50% in 2006 and net profit growth of 22.30% in the period 2005-2006. During this period, its leasing portfolio also expanded by 82.90%. The company has experienced enormous growth in the last few years and has opened new branches throughout Romania. It now has a network of 20 branches in almost all of the country’s major cities and employs 91 people. To take advantage of the rapidly growing market, the company plans to expand its network to 35 branches by 2008. On 21 March 2007, the company was licensed as a non-financial institution by the National Bank of Romania.

INK Insurance Broker is the seventh largest insurance broker in Romania (up from tenth in 2004). Established in 2003, INK Insurance is a fast-growing sister company of Romstal Leasing, providing products and services to Romstal Leasing and other companies. It has a current workforce of 25 FTEs and enjoys a high level of profitability, with premium income going up by 56.30% and earnings increasing by 51.90% in the period 2005-2006.

Over the past decade, KBC has built up a strong presence in Poland, Czech Republic, Slovakia, Hungary and Slovenia. KBC’s long-term strategic plans include continuing to explore market opportunities in future new EU Member States and beyond.

In Central and Eastern Europe, KBC Lease is present via ČSOB Leasing (Czech Republic and Slovakia), K&H Leasing Group (Hungary) and Kredyt Lease (Poland). KBC Lease occupies leading positions on the leasing market in the Czech Republic (No. 1 with a 15% market share), in Slovakia (No. 1 with a 17% market share), in Hungary (No. 6 with an 8% market share) and in Poland (less than a 1% market share).


For more information, please contact:

Luc Cool
Director of Investor Relations, KBC Group
Tel.: (+32) 2 429 40 51
investor.relations@kbc.com

Viviane Huybrecht
Head of Group Communication and the KBC Press Office
KBC Group Spokeswoman
Tel.: (+32) 2 429 85 45
viviane.huybrecht@kbc.be or pressofficekbc@kbc.be


Note to the editor

KBC Group NV: www.kbc.com

KBC Group NV is one of the leading financial groups in Europe. A multi-channel bancassurance group with a geographic focus on Europe, it caters mainly for retail and private banking customers and small and medium-sized enterprises. Besides focusing on providing retail and private bancassurance services, it is also active in asset management, the provision of corporate services and market activities.

KBC occupies significant, even leading positions in its two home markets of Belgium and Central and Eastern Europe and has an extensive private banking network operating under the European Private Bankers concept. It has also selectively established a presence in a number of other countries and regions around the world.

Over the past decade, KBC has built up another strong presence in Poland, Czech Republic, Slovakia, Hungary and Slovenia. KBC’s long-term strategic plans include continuing to explore market opportunities in future new EU Member States and beyond. KBC Securities, the broking company of KBC Group, recently acquired Swiss Capital, the second biggest independent broking company in Romania and Equitas, the leading Hungarian online retail broker. At the end of January KBC and Kontrakt Sofia reached agreement for KBC to acquire 70% ownership of DZI Insurance, the market leader in non-life and life insurance in Bulgaria. Following the acquisition, KBC will launch a public bid for the remaining 30%. As part of that deal, KBC will also acquire DZI INVEST, a securities broker active on the Bulgarian Stock Exchange.

KBC Group NV is listed on Euronext Brussels and the Luxembourg Stock Exchange (ticker symbol ’KBC’).
With a market capitalisation of around 32 billion euros, KBC is one of the biggest companies in Belgium and a leading financial group in Europe, employing 51 000 people and catering for 11 million customers.

KBC Lease Holding NV: www.kbclease.com

KBC Lease Holding NV is a wholly-owned subsidiary of KBC Group NV. KBC Lease Holding NV manages a European network of leasing companies providing general lease, real estate lease, full service car lease and pan-European Vendor Finance.

KBC Lease has established a presence in 13 other countries in Western and Southern Europe with leading positions in the home markets of KBC.

Romania: Environment tax could raise prices of household appliances

27 March 2007

Household appliances will become more expensive after the implementation of the environment tax that includes the recycling costs, though prices of appliances were announced to go down early this year due to changes in border policy, ACT Media news agency reports.


The National Agency for Environment Protection (ANPM) announced it would start together with the Environment Guard and the National Authority for Consumer's Protection a program of recycling old household appliances as of April.

The program stipulates that the producers and importers of home appliances will have to register their products with the ANPM before selling them and it will be their duty to recycle them. The old household appliances will be stored in special places in exchange for about 20 euros.

The buyers will be the ones to pay the environment tax and the money will reach the producers who have the duty to recycle the household appliances.

Source: ACT Media News Agency

Romania : Multi-brand outlet coming up near Bucharest

March 30, 2007


Escape Outlet Shopping Center located 21 kilometres away from Capital Bucharest is the first project developed in local market by Greek-owned company American Outlet Overseas.

City’s first multi-brand outlet includes more than 70 stores and is expected to be completed by end of this year with a total investment of nearly Euro30 million.

According to company officials, Escape Shopping Center will mainly focus on apparel and garment retailing.

Staff's old uniforms sent to Romania

Mar 29, 2007

UNIFORMS once worn by staff at Hinckley and Rugby Building Society are on their way to Romania.

The building society is supporting a project organised by Hope Community Church, in Hinckley, which helps young people overseas to get into work.

Church spokesman Gwyn Williams said: "Clothing is in short supply in Romania and the uniform donated by the building society is greatly appreciated."

Building Society spokeswoman Lisajane Gooden said staff had a new uniform every three years and it was decided to put the old uniform to good use.

Analysis: Romania adds to N. Korea haze

By SHIHOKO GOTO
UPI Senior Correspondent

WASHINGTON, March 29 (UPI) -- Revelation that a Romanian was among those who were kidnapped by the North Korean government in the 1970s and 1980s adds to the already bizarre saga of Pyongyang's efforts in years past to train its spies. Yet even as the news has shocked those in Romania as well as people in the East Asia region, the latest addition to the list of abductees is unlikely to have any impact on ongoing international efforts to denuclearize North Korea, even though Japan may wish otherwise.

Last week the Romanian daily newspaper Evenimentul Zilei reported that the then-27-year-old Doina Bumbea was abducted by North Korean agents from Rome in 1978 and was forced by Pyongyang to train agents in foreign languages. Meanwhile, this week Japanese daily Asahi Shimbun interviewed Bumbea's brother Gabriel in Romania, who confirmed that photos of her from North Korea were indeed his older sister, who was an artist married to an Italian.

Bumbea is certainly not alone in being lured away by North Korean agents on false pretenses, only to find herself being forced to work for Kim Il-Sung's regime. In Bumbea's case, she reportedly was lured by being told that she would be able to exhibit her artwork in Japan.

The latest report adds another layer to the drama of North Korea's actions on the international stage over the past decades, and some Japanese analysts argue that it could give greater leverage to the Japanese government as it seeks to gain more information on the 17 people who were abducted by Pyongyang in years past before it entertains the possibility of providing aid to the country. South Korea and China too have accused Pyongyang of abducting its citizens too, but Japan has been at the forefront in clamoring for more information on those who went missing. For its part, North Korea has insisted that it only kidnapped 13 Japanese nationals, of whom five were returned to Japan in 2002.

Information on the Romanian's life in Pyongyang first came to light in 2005, when former U.S. Army soldier Robert Jenkins published his memoir of life in North Korea, where he had been since 1965 after defecting from the military while stationed in South Korea. Jenkins later married a Japanese national, Hitomi Soga, who had been abducted along with her mother as she was taking a walk near the coast of her home town in northern Japan. Soga was one of the five Japanese released from the country five years ago, and her husband --a U.S. citizen -- was allowed to leave with her. Jenkins recalled in his book that a Romanian woman had been one of the few foreigners that he and his wife had interacted with, and Jenkins wrote that she died of cancer in 1997. Bumbea's family in Romania had actually conducted a funeral for her in 1984, after not hearing from her for six years.

There are already moves in Japan to get Romania involved in putting pressure on Pyongyang to provide more information about its abduction program as a result of Bumbea's disappearance.

Asahi Shimbun reported that the head of the Japanese group representing those who were abducted will be going to Romania in the near future to meet with Bumbea's family, which would increase the group's lobbying power beyond the Japanese borders. The newspaper also reported that the Romania Foreign Ministry had contacted its counterpart in Pyongyang to obtain more information on the woman's kidnapping but has not yet received any reply.

Bumbea's abduction "highlights the extent of North Korea's wrongdoing," a Japanese government official said, adding that it could bring Japan and Romania closer together in trying to get Pyongyang to open up about its abduction program, which the government has said it has abandoned.

It is doubtful, however, that the latest development would have any impact on the ongoing six-party talks between China, South Korea, Russia and the United States as well as Japan and North Korea. In February, Japan declined to join the four other countries as they agreed to provide 50,000 tons in heavy fuel oil to the impoverished country in return for it shutting down its nuclear reactor in Yongbyon by April 13. They have agreed too to provide an additional 950,000 tons of oil once the plant is permanently disabled and details of its other nuclear activities are provided.

Japan, however, has declared it will not be part of the aid effort until North Korea provides further information on the abductees.

Thursday, March 29, 2007

Infighting Delays Secret Service Reform in Romania

29 03 2007 Rival reform packages of president and prime minister threaten to leave current bad practices in place.

By Marian Chiriac in Bucharest (Balkan Insight, 29 Mar 07)

The power struggle between Romania’s president, Traian Basescu, and his prime minister, Calin Popescu Tariceanu, is threatening to derail urgently needed reform to the intelligence services.

Some observers say the struggle confirms the Romanian adage that “when two people fight, it is someone else who wins”, as neither man is benefiting politically from the current impasse.

No one disputes that reform in this sector is needed. Almost two decades after the fall of the communist regime, regulations from the early 1990s remain in place that grant wide powers to the country’s four secret services and allegedly encourage corruption and human rights violations.

“Under current legislation, if a secret agent puts his boots on a man’s neck and kills him, nothing will happen to him if he says he was ‘on a mission’,” said Marius Oprea, the prime minister's adviser on national security issues.

Oprea was a key supporter of a government-backed package of laws aimed at trimming the powers of the secret services. The proposals include merging some agencies and putting officials and the control of government ministries. Agents would have to obtain a court order before carrying out most activities, except those related to fighting terrorism. They would also be banned from infiltrating the media, the courts, state institutions, political parties, unions or religious groups.

The new laws would also ban the secret services from engaging in economic activity. At present, agents can set up businesses to help fund operations, and the media have been awash with allegations that some companies are fronts for the services.

The legislative package has still to be discussed in parliament but already an important opponent to the new laws has emerged in the form of President Basescu.

He is pushing his own package of legislation, drawn up by his political and military advisors and presented to the Supreme Council of National Defence, CSAT, the authority responsible for coordinating national security.

This week, CSAT is expected to give its final approval to the president’s proposals after which they will be put before parliament.

Analysts note important differences between the two competing sets of laws.

“The legislation promoted by the prime minister would introduce tougher parliamentary controls over the secret services and agents, making them accountable for any rights infringements,” Mircea Marian, a journalist from the Adevarul daily, told Balkan Insight. “The laws promoted by the president give much more power to the services.”

Marian characterised the struggle as a turf war. “The dispute between the country’s highest officials over future security laws is a sign that each seeks control over the intelligence services,” he said.

Relations between Tariceanu and Basescu have deteriorated in recent months owing to disagreements over policies to combat corruption.

The bickering has brought parliamentary work on key anti-corruption legislation to a virtual standstill. The logjam between the head of state and the executive has also delayed Romania's elections to the European parliament.

Military analyst Radu Tudor contends that the fights are bad for the country’s democracy and detrimental to its security agenda.

“Unfortunately, foolish political ambitions and a battle of personalities are affecting Romania’s interests, which still lack proper legislation on security,” he said. “We need laws to improve efficiency and boost state control over the services and reduce costs but the politicians don’t seem interested.”

Muddles over the interpretation of current security laws last week forced the chief of foreign intelligence, SIE, Claudiu Saftoiu, to resign.

Saftoiu, appointed last September by the president, handed in his notice after revealing to a parliamentary committee that the SIE had been tapping the phones of people suspected of violating national security.

Saftoiu blundered when he told deputies that the SIE was tapping phones using warrants issued by the country’s prosecutor-general, even though under the law a judge must issue a warrant for tapping people’s phones.

Saftoiu apologised, accepting that such operations needed to be carried out with the authorisation of a judge.

But Mircea Marian says Saftoiu fell victim to fuzzy security law regulations. “When the SIE wants to tap telephone conversations, it has to connect its equipment to that of the internal secret service, SRI, acting on a warrant filed by the general prosecutor,” he explained.

“After that, it is the SRI that seeks authorisation from a judge,” Marian went on. “Saftoiu was wrong only for not fully describing the taping and authorisation process.”

Saftoiu’s sudden departure appeared a new blow for President Basescu who has also been accused by his opponents of using the secret services to spy on politicians.

A parliamentary commission recently recommended suspending and impeaching him for violating the constitution and interfering in the work of government.

But to most people, the political infighting at the top and the rows over future security laws only offer further proof of the inability of politicians and public institutions to counteract the influence of the former agents of the communist-era Securitate secret police.

Polls show many people believe secret service corrupt practices are a legacy of the Securitate, which recruited tens of thousands of people to work as spies.

“Those guys are still in power in Romania, and they are not under proper legal and political control,” said Bucharest resident Matei Popescu, 62.

“The power of the former secret service officers is just the same under the new system - they just re-labelled themselves.”

Marian Chiriac is the director of BIRN Romania. Balkan Insight is BIRN’s online publication.

Romania assigned investment-grade ratings by Moody's in annual report

LONDON (AFX) - Moody's Investors Service said has assigned investment-grade ratings and a stable outlook on Romania reflect low government debt and significant economic restructuring of the past few years.

Moody's (nyse: MCO - news - people ) said in its annual report on Romania that the country also benefits from moderate inflation, ample external liquidity, and strong GDP growth.

The foreign currency country ceiling for bonds is 'A1', based on the foreign currency government bond rating of 'Baa3' and assessment of a very low risk of a payments moratorium in the event of a government bond default, Moody's said.

The stable rating outlook balances the benefits of European Union accession against the possible risk of overheating, it said.

However, the rapid credit growth to the private sector, related sharp increases in asset prices and weakening of the current account deficit are a cause of concern, Moody's said.

Sunday stroll to help orphans in Romania

Teacher aims to help others in her holidays

UNLIKE most teachers this summer, Hallglen Primary's Caroline Palmer will be surrounded by children.

The 29-year-old is raising money to work in a Romanian orphanage, caring for children in the 'failure to thrive' ward in the town of Tutova. She said due to extreme poverty, many parents are forced to leave their children in the hospital after they are born.
Caroline decided to support Romania's orphans after watching a TV news report in January. She said: "I'm not someone who is easily moved by TV, but I was this time and felt as though I had to do something to help."

The all-rounder sets off with US-based charity which will organise her placement, accommodation and meals during her three-week stay.

To kickstart her fundraising Caroline will spend nine days walking the West Highland Way with nine friends this Sunday. Money raised by her fellow hikers will go to three Romanian children's charities – Foundation for the Relief of Disabled Orphans (FRODO), Hope and Homes for Children and SOS Children's Villages.

Caroline is also looking to celebrities for signed merchandise to sell on internet auction site eBay and wants to hear from companies which can donate supplies including baby clothing, food and educational toys. The young teacher is keen to hear from anyone who can help – including anyone who's keen to walk the West Highland Way with the group.
For more information check out Caroline's website www.romanianorphans.co.uk or contact the school.

US ambassador to Romania says "political turmoil" could detract investors

The Associated Press
Thursday, March 29, 2007

BUCHAREST, Romania: The U.S. Ambassador to Romania, in rare public criticism of the government, warned Thursday that political feuding could harm the country's chances of attracting foreign investment.

"Romania's many friends are prepared to help it continue to strengthen its democratic institutions — but we need to be realistic and recognize recent political turmoil has raised doubts beyond Romania's borders," whether this is a good place to invest, said Nicholas F. Taubman in remarks to the American Chamber of Commerce in Romania.

It is the first time that the U.S. ambassador, who arrived in 2005, has publicly criticized the government and his remarks come after weeks of political bickering between President Traian Basescu and Prime Minister Calin Popescu Tariceanu.

The prime minister said Monday that relations between the two main parties in the ruling coalition had broken down, and he accused Basescu's Democratic Party of making life impossible for his Liberal Party.

Romania no longer has a foreign minister after Basescu blocked the appointment of Tariceanu's nominee for the job, saying he did not have enough experience.

In further turmoil, Mihai Razvan Ungureanu resigned last month as foreign minister at the Tariceanu's request after he failed to inform the premier that two Romanians had been arrested by U.S. troops in Iraq.

"People in private industry and in government are asking a lot of questions about Romania, trying to understand where the country is headed," Taubman added. "It is very important for Romania to continue to make progress on key areas like justice reform and in fighting corruption."

Romania joined the EU on Jan. 1 and officials in Brussels are watching the situation because the country is expected to carry out major reforms to stamp out corruption and bring its economy in line with richer Western neighbors.

"Losing traction on these reforms would not send the right signal to Romania's partners. We can only hope that things settle down, sooner rather than later," he said.

Romania gives priority to widening further coop with Kazakhstan, MFA

ASTANA. March 29. KAZINFORM. Kazakhstan charge d’affaires Bakhytzhan Ordabayev met on March 27-28 with chairman of the Romanian Senate Nicolae Vacaroiu and head of the foreign policy committee of the Chamber of Deputies of the Romanian Parliament Stefan Glaevan, the Kazakh MFA’s press service reports.

The parties debated issues related to bilateral cooperation between Romania and Kazakhstan, shared views on urgent foreign issues. Kazakh diplomat informed also of the country’s political and socio-economic reforms in the light of the annual Message of President Nursultan Nazarbayev to the nation New Kazakhstan in the new world.

Ordabayev told about the key priorities of the Kazakh foreign policy in the context of the President’s Address underlining the country’s interest in deepening and widening of ties with the EU member states and further promotion of the country’s application for the OSCE presidency in 2009.

The Romanian parliamentarians noted ever-growing authority of Kazakhstan in the international arena, the country’s success in implementation of political reforms and impressive attainments in economics, which let realize efficiently large-scale social reforms.

The Senate chairman emphasized that Kazakhstan is known as Romania’s most important partner in the Central Asian region and the country’s authorities give top priority for further expansion of relations with Kazakhstan, especially, in the sphere of economics and energy sector.

Ring smashed

Romanian authorities have dismantled a human-trafficking ring that transported women to Germany and sold them to Turkish citizens for about –5,000 ($6,700) each, border police said yesterday. Romania, which joined the European Union this year, is one of 11 countries the United Nations lists as the top sources of human trafficking. Police said the six-person gang recruited women in bars in villages in west Romania by promising them well-paid jobs abroad. (Reuters)

New Scripture translations plant seeds in Romania and Moldova.

Romania/Moldova (MNN) -- The International Bible Society is working toward the release this year of a fresh, easy-to-read Scripture translation in Romania and Moldova. The Europe division will be releasing two new first edition Bibles that use modern language while representing accuracy and faithfulness to the original texts. Equipped with a wealth of footnotes, these translations are targeted to be used by new believers for outreach and evangelism, especially among young people, as well as for general reading.

IBS is also spreading the Gospel through "Jesus--The Story of His Life Gospel of Mark." There are plans for literature distributions at orphanages. IBS staff is also working to reach youth through the Reach 4 Life programs in schools. The program is based on a proven, abstinence-based approach and focuses around a special book--a full NIV New Testament with extensive, youth-friendly helps.

The IBS-Southeastern Europe team engaged Christian medical doctors in Romania to help complete a Romanian adaptation of the notes and other non-Scripture text in their English Reach 4 Life New Testament. From there, the teams integrated the Romanian Reach 4 Life notes with the Romanian New Testament translation and published a Romanian R4L New Testament in 2005.

Pray that Christian leaders will be ready to disciple the children responding to God's Word. Pray, too, that churches in Romania will grow in number and spiritual strength upon the foundation of Scripture.

Romania on verge of cabinet shake-up

BUCHAREST, Romania -- The country appeared headed for a cabinet shakeup on Wednesday (March 28th), as the crisis within the ruling coalition deepened. Justice Minister Monica Macovei said in an interview Tuesday that she expects to be fired. The main opposition Social Democratic Party says it is no longer interested in participating in any cabinet reshuffle, and will instead leave it all up to Prime Minister Calin Popescu Tariceanu. He reportedly has asked the Conservative Party (PC) to join the restructured government, but PC has declined the offer. Analysts say that leaves a cabinet consisting of Tariceanu's National Liberal Party and the ethnic Hungarian UDMR.

Balkan Times

Moody's Says Romania May Need to Raise Rates as Spending Rises

March 29 (Bloomberg) -- Romania's central bank, which cut its key interest rate twice in the past two months, may need to raise it again as the government boosts spending, Moody's Investors Service said in its annual report on Romania.

The National Bank of Romania cut its key interest rate by half a percentage point to 7.5 percent on March 26 after the annual inflation rate in February fell to a 17-year low of 3.8 percent. The Bucharest-based bank cut the rate three-quarters of a percentage point on Feb. 9 to 8 percent.

``Interest rates may need to reverse course and rise later in the year, particularly if the government spends all that is planned,'' Moody's said. ``A growing budget deficit in a period of rapid economic growth indicates that fiscal policy is strongly pro-cyclical. This is an especial concern given the large current account deficit and incomplete disinflation process.''

Romania's government plans to widen its budget deficit this year to 2.8 percent of gross domestic product from 1.7 percent last year to increase investment on infrastructure and bring the country closer to European Union standards after it joined the bloc on Jan. 1.

In October, Moody's raised Romania's credit rating one step to Baa3, the lowest investment grade, from Ba1, saying the country's accession to the EU should speed up economic recovery. The advance to investment grade followed similar moves by Standard & Poor's in 2005 and Fitch Ratings in 2004.

Stable Outlook

Moody's said in its report today that Romania's rating outlook is stable because of slowing inflation, ``strong'' economic growth and ``significant economic restructuring of the past few years.''

The service said, though, it is ``concerned'' about the current-account deficit, which it expects to widen this year from about 10.3 percent of GDP last year.

Romania's central bank has cited wage increases, government spending, oil prices and other factors as main threats to its year-end annual inflation target this year of 4 percent, plus or minus one percentage point.

The International Monetary Fund warned government budget calculations overestimate revenue and underestimate expenses. The IMF said the budget deficit could widen to as much as 3.8 percent of GDP this year, exceeding EU limits and pressuring inflation.

`Insufficient' Plan

EU finance ministers also said in a ruling adopted in Brussels on March 27 that Romania's program to contain spending is ``insufficient and should be strengthened significantly,'' while the budget plan ``does not seem to provide a sufficient safety margin'' against breaching EU deficit rules.

Moody's said infighting between political parties in the ruling coalition adds uncertainty to fiscal policy this year.

The Liberal Party, led by Prime Minister Calin Tariceanu, and the Democratic Party, loyal to President Traian Basescu, have been increasingly fighting in public this year, prompting calls for early elections.

The Liberals have also threatened to oust the Democrats from the ruling coalition, a move that would make them more dependent in Parliament on the opposition Social Democrat Party or could trigger early elections.

To contact the reporter on this story: Adam Brown in Bucharest at abrown23@bloomberg.net .

Romania to reintroduce import VAT at customs for non-EU countries

The Romanian government has decided to reintroduce import VAT at customs for imports from non-EU countries for a fixed period, government spokesperson Camelia Spataru announced on Wednesday.

The measure will come into force on April 15, 2007, and last until the end of 2008, Spataru said.

"The measure will not affect those importers who brought in significant imports and met the criteria to be granted a VAT-postponing certificate in 2006," she said.

The decision was made as the National Agency of Fiscal Administration found that fiscal evasion was on the increase since the country suspended import VAT for non-EU countries in January 2007.

According to a report issued by the Finance Ministry, 40 percent of the imports of vegetables, fruits and flowers from non-EU countries were not declared at customs.

The Romanian government will also require guarantee of import VAT at customs until a proof is presented that the goods were delivered to another EU country.

Spataru said the measure is being taken as "there is a risk that VAT-exempted goods supposed to be delivered to a EU country do not reach their destination but are placed on the black economy."

According to the Permanent Representation of Romania to the EU, 15 out of the 27 EU countries currently apply the system of import VAT at customs. Out of the ten countries that acceded to the EU in 2004, Estonia, the Czech Republic and Lithuania are currently applying the simplified payment system.

Hungary used the simplified VAT payment system at the accession date, but later suspended it for the same reasons Romania did.

Source: Xinhua

Wednesday, March 28, 2007

Romania and Bulgaria step up their games

Author: Polya Lesova, MarketWatch

The executive, head of strategy at Romania's state-controlled power-grid operator Transelectrica, was sitting in the lobby of New York's Waldorf-Astoria Hotel, taking a short break from meetings with American investors to promote the attractions of the European Union's latest entrant.

"The Bucharest Stock Exchange is very small, but in terms of returns you can make much higher margins than in developed markets," he said. As a result, "the visibility of Romania among international investors has increased."

Purdila's own company is a case in point. Transelectrica, which has a market capitalization of about 1 billion euros ($1.33 billion), floated 10% of its shares on the Bucharest Stock Exchange last August. Its stock price has since tripled.

Small wonder, then, that Purdila brushed aside questions about the country's failure to implement important reforms or the deepening political crisis caused by tussles between members of the government.

"In Romania, the market is less and less dependent on the political situation," Purdila said. "This is not to say that there aren't certain tensions, that we're not preoccupied. Electricity, however, is not political."

Dragos Simion, vice president of Romanian technology retailer Flamingo International, agreed: "The issue with politics is something that creates noise." But now that Romania is part of the E.U., domestic politics are no longer a dominant issue, he said.

"Romania is no worse than any other Central or Eastern European country. There may be problems with corruption or the judiciary, but they are not bigger than in other countries," he said.

Toughing it out

With a population of 22 million, Romania joined the E.U. on Jan. 1, together with neighboring Bulgaria, both countries having overcome misgivings in Brussels about their preparedness. The pair were allowed into the 27-member trading bloc on the condition that they step up efforts to fight corruption, reform judiciaries and improve administrative capacities.

The two countries are eligible for large amounts of E.U. structural funds, which could significantly improve development, especially in infrastructure.

That's not the only benefit.

"As new entrants into the E.U., both Romania and Bulgaria will most probably benefit from an increase in foreign direct investment," said Adrian Ciocoi, the Romania-based head of research for the emerging European markets at the Riedel Research Group.

That was certainly the case when Poland, the Czech Republic and Hungary joined the union in 2004. Foreign direct investment in Poland, for example, rose to 9.7 billion euros that year from 3.8 billion euros in 2003.

Fast-growing sectors like information technology, real estate, financial services and tourism offer abundant investment options in Romania and Bulgaria.

"There are many opportunities and not enough capital to fund them," said Valeri Petrov, the director in Bulgaria for Global Finance, which manages more than $850 million in private-equity investments in Greece, Bulgaria and Romania.

Bulgaria has received 7 billion euros of foreign direct investment in the last three years, Petrov said. Real estate is popular and generates huge returns in the region, growing at 30% to 40% annually, he said.

And Bulgaria as a whole, with about 8 million people, has been expanding fast: GDP rose 6% in 2006 and is expected to grow at a 5.4% pace in 2007.

Romanian economic growth is robust, as well. The economy expanded by 7.7% last year. The Economist Intelligence Unit is expecting GDP growth of 6.4% in 2007.

The level of convergence between Romania and Bulgaria and the E.U. is still lower than in other Central and Eastern European countries, said Vladimir Milev, financial analyst for the Metzler/Payden European Emerging Markets Fund.

However, "strong economic growth, discounted valuations and rapidly developing markets [mean] the two countries provide some good investment opportunities," he said.

"Apart from liquidity, the level of investor communication and overall corporate governance could improve, but with the recent E.U. accession we are optimistic about the future of these markets."

In Romania, Milev's fund has its greatest exposure to banks, such as the Romanian Development Bank; Banca Transilvania; and the country's largest bank, Banca Comerciala Romana, which is majority-owned by Austria's Erste Bank

Low liquidity, particularly in Bulgaria, is a problem. As a result, foreign investors can capture growth in these countries by investing in companies listed elsewhere that have exposure to the region. For example, investors can buy stock in Austrian oil company OMVor Czech utility CEZ, both of which have acquired assets in Bulgaria and Romania.

Cloudy short-term outlook

Still, even with their economies are on a growth path, the short-term outlook for Romania and Bulgaria is murky. Both have big current-account deficits and have further to go in implementing reforms.

"Ratings of the two E.U. newcomers, Bulgaria and Romania, seem to be a bit too positive, given the underlining fundamentals in the two countries," said Lars Christensen, senior analyst at Denmark's Danske Bank.

The outlook is most negative for Romania: "We would expect a downgrade of Romania's sovereign-debt rating from at least one of the rating agencies, most likely Fitch," he said.

Bulgaria, which overturned its communist government in 1989 only to re-elect communists under a new name a year later, lagged in the area of economic reform in the early years of transition. The country was plunged into an economic crisis in 1997 from which it is still recovering.

Reforms implemented in the late 1990s succeeded in stabilizing the currency, the lev. As a result, the country's ratings have dramatically improved over the last decade. The key fiscal risk to the country right now is the current-account deficit.

The governing coalition is a hodgepodge of parties led by a socialist prime minister, but it has managed to function, unlike the government in Romania, which is in the midst of a multifaceted political crisis.

"Bulgaria has made tremendous progress since 1997," Christensen said. "I'm much more doubtful about Romania. The political situation has deteriorated quite dramatically. Going into the E.U. is what's keeping things afloat."

The feud between Romanian President Traian Basescu and Prime Minister Calin Tariceanu, who have been sharing power in the coalition government, has slowed down the fight against corruption as well as much-needed reforms in the public-administration and justice systems.

"There are a tremendous number of reforms that need to be implemented," said Jon Levy, an analyst at the Eurasia Group. "You have a loss of steam now that Romania is in the E.U.

‘Legal’ spies

Romania’s foreign espionage agency acted legally when it tapped phone calls by foreign and Romanian suspects, a parliamentary commission said yesterday. The commission investigated allegations of improper tapping after the former head of the Foreign Intelligence Service, Claudiu Saftoiu, revealed the agency tapped phones with permission from prosecutors, instead of a judge’s warrant as required by law. (AP)

Romania: Several funding programs fail Brussels test

28 March 2007

Romania should start EU programs to deliver structural funds as early as this year, but in order to run them the programs must be conceived by Romanian authorities and approved by the European Commission, ACT Media news agency reports.


Obtaining EU approval, however, is not an easy task: three out of seven programs developed so far have been sent back to Bucharest to be redrawn, the head of the Phare interim team boss of the EC delegation to Bucharest Georgio Ficarelli has said.

The returned programs refer to competitive growth, transports and regional development, according to the source.Ficarelli told EurActiv.ro that one cause for which the programs were sent back is their complexity. Another is that certain components have overlapped, which must be avoided.

The four programs still under EC analysis will start this summer or in October this year, if all goes well in their case.

Source: ACT Media News Agency

Romania: BCR bonds to be sold on stock market

28 March 2007

Bonds issued by the Romanian Commercial Bank in November 2006 worth 242 million lei due on 28 November 2009 will be sold at Bucharest Stock Exchange (BVB) on Thursday, BVB informs.

BCR bonds will be sold in the Credit title sector in the second category of corporate bonds with the symbol BCR09. In November 2006 BCR issued 2,428,278 bonds with a nominal value of 100 lei. The interest rate will be paid on a semester basis and the interest rate is 7.25%.

The public sale offer for BCR bond sale was between 8-21 November. The overall value of the issue was 200 million lei, with the possibility of going up to 575 million lei. The bond issue was carried out through BCR Securities brokerage house and of BCR units. BCR attracted 242.8 million lei (69.181 million euros), according to data communicated by the bank. The bank announced it intended to use the money attracted through this issue for the increase of the amounts offered as credit both to the population and companies, according to the shareholders’ decision.

The BCR bond issue was over subscribed in a proportion of 121.4% and of the 2428 million bonds 98.63% were subscribed by juridical persons while 1.3% were subscribed by natural persons. More than half (56.9%) of the subscription volume was achieved by Romanian and foreign banks, a third (32.9%) by insurance companies and 5.6% by investment funds. Two thirds (66.46%) of bonds were subscribed by non-resident investors. The bond issue was quoted with A minus by Fitch Ratings and with BBB minus by Standard & Poor’s.

In 2005 BCR issued Euro bonds which attracted 500 million euros with an annual interest rate of 3.75%. The BCR issue was intermediated by ABN Amro and BNP Paribas and benefited from good launch qualifications from international rating agencies : BB – from Standard& Poor’s and BB from Fitch. BCR Euro bonds of the senior notes type have a three year maturation, an issue profitability of 4% annually and a fix annual coupon rate of 3.75%.

In 2005 BCR also launched two successive union loans in the international market for over 620 million dollars – the forst in March for 200 million dollars, the second in August of over 400 million dollars, of which it paid back the first loan. BCR also launched 26 issues of municipal bonds and five corporate bonds at BVB.

Source: ACT Media News Agency

Romania:Political turmoil generates reserve amid Stock exchange investors

28 March 2007

Political incertitude and eventual Government's restructuring generate reserve among investors on Bucharest Stock Exchange (BVB), appreciate analysts on the capital market, ACT Media news agency reports.

The first trading session this week was remarked through a low liquidity, almost to this year minimum (8.09 million euros), at a volume of 16.8 million shares. All exchange indicators were affected by corrections, and the most drastic decline was suffered by Financial Investment Companies (SIF) shares, with average losses of 3.11 percent.

Capital market analysts say the drop in financial sector was due to sustained increases that appreciated BET - FI Index by 8.5 percent last week and to incertitude on the political scene, as well.Adrian Barbulescu, trader with Prime Transaction, says that a more accentuated withdrawal from the market of buyers especially in the second part of the session was remarked, coinciding with information from the political scene as regards an eventual restructuring of the Government.

Investors failed to reverse the trend until the end, so that the overall value of exchanges on all markets stood at just nine million euros.SIF shares trading amounted on Monday at more than 15 million lei (4.5 million euros), accounting for some 55 percent of the entire trading.
The most transacted title was SIF Oltenia (SIF 5), with a total of 5.25 million lei (1.5 million euros). The biggest decline was registered by SIF Moldova titles (SIF 2) and SIF Muntenia (SIF 4) that lost 3.87 percent each.In the banking sector, two titles (Romanian Bank for Development - Groupe Societe Generale and Transilvania Bank) saw a negative evolution. As such, BRD shares concluded at 21.8000 lei/title (1 euro = 3.3 lei), a reduction of 1.36 percent from the previous session.Reductions did not circumvent the oil sector either. Whereas the shares of the National Oil Company (SNP) Petrom remained at the same value as the one concluding last week, 0.5800 lei/title, Rompetrol Rafinare Constanta (RRC) shares dropped more than two percentage points.

Source: ACT Media News Agency

Romania: Romania to export heavy equipment up to 19.6 mil euros

28 March 2007

In 2006, Romania exported to Germany heavy equipment worth 19.6 million euros, jumping 66 percent from 2005.

Germany is one of the main trade partners of Romania in the heavy industry, due to the high performance parameters of the equipment certified EN ISO 9001.

The Romanian exports of components were worth 14.2 million euros in 2006, and those of equipment segment 5.4 million euros.
The German imports of heavy equipment from Romania in 2006 accounted for 0.8 percent vs. 0.5 percent in 2005. Like in previous years, Romania will enter this year the heavy equipment fair in Hanover, due over Sept. 17-22.

Source: ACT Media News Agency

Romania:BNR estimates average annual interest rate to drop to 5%

28 March 2007

BNR anticipates that the average annual inflation rate will drop to 5% as against 6.5% registered at the end of 2006, ACT Media news agency reports.

'Statistic evaluations indicate a consolidation of the disinflation process which is provisioned to reflect in the reduction of the average annual inflation rate to the level of 5% in the following period,' shows a press release of the BNR Administration Board. BNR shows that the analysis of recent evolutions in macro economic and monetary fields shows the maintenance of the disinflation process on a trajectory consisting in reaching the inflation target of 4% this year with a variation of plus/minus 1%.

'The annual inflation rate has reduced quicker than anticipated, being 3.81% in February as against 4.01% the previous month, 4.87% in December 2006 and 8.49% in February 2006. The average annual inflation rate dropped to 5.8% in February from 6.56% in December 2006 and 9% in February 2006,' shows a BNR report.

The BNR Administration Board reduced by 0.5% the monetary policy interest rate to 7.5% per year, after cutting 0.75% points in the 9 February meeting, reducing the interest rate from 8.75% to 8% per year. BNR reminds that economy had a high growth rate of 7.7% backed by a robust investment increase and to a smaller extent, by consumer expansion, while the persistent demand excess has determined the deepening of current account deficit.

The central bank maintains stand about exerting cash control adequate to conditions in financial markets by means of market operations.
At the same time, the BNR Administration Board decided to maintain the present level of minimal compulsory reserves – 40% for foreign exchange reserves and 20% for lei reserves.

Source: ACT Media News Agency

EMERGING MARKETS REPORT: Newest E.U. Members Bulgaria And Romania Step Up Their Games

NEW YORK (Dow Jones) -- Razvan Purdila was having a hectic day.

The executive, head of strategy at Romania's state-controlled power-grid operator Transelectrica, was sitting in the lobby of New York's Waldorf-Astoria Hotel, taking a short break from meetings with American investors to promote the attractions of the European Union's latest entrant.

"The Bucharest Stock Exchange is very small, but in terms of returns you can make much higher margins than in developed markets," he said. As a result, "the visibility of Romania among international investors has increased."

Purdila's own company is a case in point. Transelectrica, which has a market capitalization of about 1 billion euros ($1.33 billion), floated 10% of its shares on the Bucharest Stock Exchange last August. Its stock price has since tripled.

Small wonder, then, that Purdila brushed aside questions about the country's failure to implement important reforms or the deepening political crisis caused by tussles between members of the government.

"In Romania, the market is less and less dependent on the political situation, " Purdila said. "This is not to say that there aren't certain tensions, that we're not preoccupied. Electricity, however, is not political."

Dragos Simion, vice president of Romanian technology retailer Flamingo International, agreed: "The issue with politics is something that creates noise." But now that Romania is part of the E.U., domestic politics are no longer a dominant issue, he said.

"Romania is no worse than any other Central or Eastern European country. There may be problems with corruption or the judiciary, but they are not bigger than in other countries," he said.

Toughing it out

With a population of 22 million, Romania joined the E.U. on Jan. 1, together with neighboring Bulgaria, both countries having overcome misgivings in Brussels about their preparedness. The pair were allowed into the 27-member trading bloc on the condition that they step up efforts to fight corruption, reform judiciaries and improve administrative capacities.

The two countries are eligible for large amounts of E.U. structural funds, which could significantly improve development, especially in infrastructure.

That's not the only benefit.

"As new entrants into the E.U., both Romania and Bulgaria will most probably benefit from an increase in foreign direct investment," said Adrian Ciocoi, the Romania-based head of research for the emerging European markets at the Riedel Research Group.

That was certainly the case when Poland, the Czech Republic and Hungary joined the union in 2004. Foreign direct investment in Poland, for example, rose to 9.7 billion euros that year from 3.8 billion euros in 2003.

Fast-growing sectors like information technology, real estate, financial services and tourism offer abundant investment options in Romania and Bulgaria.

"There are many opportunities and not enough capital to fund them," said Valeri Petrov, the director in Bulgaria for Global Finance, which manages more than $850 million in private-equity investments in Greece, Bulgaria and Romania.

Bulgaria has received 7 billion euros of foreign direct investment in the last three years, Petrov said. Real estate is popular and generates huge returns in the region, growing at 30% to 40% annually, he said.

And Bulgaria as a whole, with about 8 million people, has been expanding fast: GDP rose 6% in 2006 and is expected to grow at a 5.4% pace in 2007.

Romanian economic growth is robust, as well. The economy expanded by 7.7% last year. The Economist Intelligence Unit is expecting GDP growth of 6.4% in 2007.

The level of convergence between Romania and Bulgaria and the E.U. is still lower than in other Central and Eastern European countries, said Vladimir Milev, financial analyst for the Metzler/Payden European Emerging Markets Fund (MPYMX) .

However, "strong economic growth, discounted valuations and rapidly developing markets [mean] the two countries provide some good investment opportunities," he said.

"Apart from liquidity, the level of investor communication and overall corporate governance could improve, but with the recent E.U. accession we are optimistic about the future of these markets."

In Romania, Milev's fund has its greatest exposure to banks, such as the Romanian Development Bank; Banca Transilvania; and the country's largest bank, Banca Comerciala Romana, which is majority-owned by Austria's Erste Bank (EBKOF) .

Low liquidity, particularly in Bulgaria, is a problem. As a result, foreign investors can capture growth in these countries by investing in companies listed elsewhere that have exposure to the region. For example, investors can buy stock in Austrian oil company OMV (OMVKY) or Czech utility CEZ, both of which have acquired assets in Bulgaria and Romania.

Cloudy short-term outlook

Still, even with their economies are on a growth path, the short-term outlook for Romania and Bulgaria is murky. Both have big current-account deficits and have further to go in implementing reforms.

"Ratings of the two E.U. newcomers, Bulgaria and Romania, seem to be a bit too positive, given the underlining fundamentals in the two countries," said Lars Christensen, senior analyst at Denmark's Danske Bank.

The outlook is most negative for Romania: "We would expect a downgrade of Romania's sovereign-debt rating from at least one of the rating agencies, most likely Fitch," he said.

Bulgaria, which overturned its communist government in 1989 only to re-elect communists under a new name a year later, lagged in the area of economic reform in the early years of transition. The country was plunged into an economic crisis in 1997 from which it is still recovering.

Reforms implemented in the late 1990s succeeded in stabilizing the currency, the lev. As a result, the country's ratings have dramatically improved over the last decade. The key fiscal risk to the country right now is the current-account deficit.

The governing coalition is a hodgepodge of parties led by a socialist prime minister, but it has managed to function, unlike the government in Romania, which is in the midst of a multifaceted political crisis.

"Bulgaria has made tremendous progress since 1997," Christensen said. "I'm much more doubtful about Romania. The political situation has deteriorated quite dramatically. Going into the E.U. is what's keeping things afloat."

The feud between Romanian President Traian Basescu and Prime Minister Calin Tariceanu, who have been sharing power in the coalition government, has slowed down the fight against corruption as well as much-needed reforms in the public- administration and justice systems.

"There are a tremendous number of reforms that need to be implemented," said Jon Levy, an analyst at the Eurasia Group. "You have a loss of steam now that Romania is in the E.U."

Romania: EBRD to invest about 50 mil euros in local real estate

27 March 2007

The European Bank for Reconstruction and Development (EBRD) might invest at least 50 million euros or 25% of shares of North Real Estate Opportunities to finance real estate projects in Romania and other East European countries, ACT Media news agency reports.

The projects has in view to purchase, develop, renovate and manage real estate in Romania, Moldova, Bulgaria and Ukraine. The fund could make strategic investments in Serbia, Croatia, Macedonia, Kazakhstan, Georgia and Montenegro. If it invests through purchases, the fund will support setting up a secondary institutional market for existing properties, a market not existing in the whole area. Overall costs of the project are confidential.

The EBRD Board will meet on 17 April to make a decision about the project. Investment funds will activate in the market as buyers and co-developers, while developers will be more and more interested in Partnerships, as real estate leasing does not finance large projects and bank credits are more and more expensive, according to a recent report of Richard Ellis company.

According to its analysts, Romania will remain one of the most interesting markets in Central and Eastern Europe, both for institutional and private investors. There will be a rise of transactions with projects before the completion of works, to the detriment of those with completed buildings, investors trying to ensure the best profits, while prices are growing. EBRD could credit a special investment vehicle of companies Globe Trade Center and Aura Investment meant to purchase, manage and develop commercial centers in Romania. North Real Estate Opportunities investment fund will purchased European Retail Park Sibiu for 83 million euros.

The British investment fund North Real Estate will invest 60 million euros for the development of Bucovina commercial centre in Suceava. North Real Estate Opportunities Fund Ltd. is a British investment company based on Guernsey island, dealing with the purchase of commercial areas in Central and Eastern Europe, controlled by North Asset Management, The fund is listed in the alternative investment market at the London exchange and has office in London and Bucharest.

Source: ACT Media News Agency

Governing coalition in Romania near collapse

BUCHAREST: Less than three months after Romania joined the European Union, the facade of good behavior and unity of its politicians has crumbled and the governing alliance is on the verge of collapse.

On Monday, Prime Minister Calin Popescu-Tariceanu declared that the country was "witnessing the death" of the center-right governing coalition.

On Tuesday, Justice Minister Monica Macovei, whose battle against corruption helped Romania press its way into the EU on schedule on Jan. 1, confirmed that her job was on the line if the government was reshuffled, as is expected.

"I feel good about the work I did," she said in an interview at her ministry office. "People say I was naive not to expect it. I didn't expect it to happen so soon."

Local analysts said a reshuffle could take place as early as Wednesday.

Political tensions have escalated sharply here since President Traian Basescu phoned in to a live television appearance by the prime minister last month and accused him of lying.

The two men have been at odds since the summer, when Popescu-Tariceanu said he wanted to pull Romania's troops out of Iraq, and Basescu disagreed. Last week, a parliamentary commission dominated by the opposition recommended that Basescu be impeached for alleged constitutional violations.

The conflict - seen by analysts as demonstrating that Romania has reverted to Balkan politics as usual now that it is safely in the European club - has impeded the business of government.

Romania has been without a foreign minister since Mihai Razvan Ungureanu resigned last month and Popescu-Tariceanu's nominee to replace him was blocked by Basescu. The diplomatic impasse has left the country with no ambassadors in important capitals, among them London, Paris and Washington.

Legislative work has also seized up. For the last month, the governing coalition between the president's Democratic Party and the prime minister's Liberal Party has been in a parliamentary deadlock, refusing to sign each other's decrees and legislation.

The fate of Macovei in particular is being monitored closely in Brussels, where she is widely respected as an independent and vigilant voice who has helped Romania to tackle graft and come to terms with its past.

"I think this is very damaging for our credibility in Europe and the world," said Mircea Geoana, president of the opposition Social Democratic Party, the largest party in the Romanian Parliament. Basescu, he said in an interview, "wants to take more power than the constitution gives him."

Geoana denied reports that he might be entering negotiations about possible participation in a new cabinet.

The open and personal confrontation between the president and prime minister has provided grist for the media - and popular discussion - for months. But some analysts see the divide as stemming not from personalities but from a deeper flaw in Romania's political system.

"It's not a psychological conflict," said Dorel Sandor, director of the Center for Political Studies and Comparative Analysis, a research organization in Bucharest. "It's an institutional incompatibility."

IHT

Romanian reformer faces sack after clash

By Christopher Condonin Budapest

Published: March 27 2007 03:00

Monica Macovei, the Romanian justice minister credited with cleaning the country up before it joined the European Union, is facing the sack after clashing with members of the cabinet.

Calin Tariceanu, Romania's prime minister, has hinted that he may dismiss his government's most prominent reformer for refusing to co-operate with the rest of the cabinet. Any decision would be closely scrutinised in other parts of the EU, where her reforms are held in high regard.

"Every minister has to take into consideration the very basic principle of government solidarity," Mr Tariceanu told the Financial Times. "This is true of Minister Macovei. We cannot make exceptions."

It is not clear whether the prime minister wants to sack her over the thrust of her anti-corruption efforts or because of her unwillingness to compromise. Ms Macovei, a political independent, has repeatedly clashed with parliament over a wide range of anti-corruption measures.

"She does not know how to pick her battles," said one official close to the prime minister.

Ms Macovei won plaudits throughout the EU for championing judicial reform and anti-corruption efforts; her clean-up was seen as a key to Romania's winning membership of the EU. But there is concern that reform has stalled since November, when Romania received the green light to join the union.

Previous moves against Ms Macovei have drawn a sharp reaction. In February, after Romania's Senate passed a motion calling for her removal, Franco Frattini, the EU's justice and home affairs commissioner, expressed his support for her. And Susanne Kastner, deputy speaker of Germany's Bundestag, said dismissing Ms Macovei could trigger one of the "safeguard clauses" in Romania's EU accession treaty, allowing for penalties if promised reforms were not achieved.

However, people in Brussels accept it might now be time for "the hero of Romanian accession" to step aside if she had lost the confidence of the prime minister and president.

What matters, they say, is that she be replaced by someone seen as having the credentials to steer her reforms through a hostile parliament.

"It is not about individuals, but about necessary reform of the judiciary and the fight against corruption," a spokesman for Mr Frattini said.

Ms Macovei's dismissal would be a potentially unpopular move for the prime minister.

Aware that her sacking could provoke a storm, Mr Tariceanu portrayed his government's achievements as the result of a combined effort by his entire cabinet, not by any individual ministers.

"The efforts of a single person are not enough if they are not backed by the whole government, including the prime minister," he said.

A spokeswoman for Ms Macovei said the justice minister had simply insisted on upholding the law, and that the prime minister should punish instead those who sought to break the law.

Unassuming, devoted medical examiner among fixtures in Smith case

MATT SEDENSKY

Associated Press Writer

DANIA BEACH, Fla. — Tearful judges came and went. Lawyers have ended their representation. One of the only constant faces throughout the Anna Nicole Smith saga has been the kindly medical examiner with a thick Romanian accent and a devotion to determining what killed the starlet.

Dr. Joshua Perper was thrust into the spotlight like never before when the pinup died in his county. He has been a fixture in exhaustive media coverage of the story, opening his office to reporters and submitting himself to relentless questioning.

He gave so many interviews he said it felt like he had a second job.

"I and my office do not seek publicity, for sure, and don't run away from publicity," he said in an interview in his office. "I believe the medical examiner has a responsibility of explaining to the public why he or she makes certain decisions."

Smith's image — her sometimes slurred speech, her fluctuating weight, her over-the-top antics — made the model and reality TV star an easy target in her life. But Perper said he approaches all cases with dignity for the dead and their family.

He said each case teaches him something, too, though he said he tries not to get emotionally involved in his work.

"You cannot run away from your person. You are your person all the time, but I don't think it affects us emotionally, because what we are dealing with is a medical person and every death is a medical person," he said. "The human mind is always stimulated when there's a problem, so you want to find out what's the truth."

Perper is a 74-year-old widower who was born in Bacau, Romania, schooled largely in Israel, and has been at the helm of the Broward County Medical Examiner's Office since 1994. He beams when he talks about his three children and seven grandchildren, he sometimes inserts wry asides into otherwise staid discussions, his office shelves are not only filled with medical texts, but audiobooks by authors as varied as Bill Clinton, John Grisham and Jack Kerouac.

The medical examiner not only has a medical degree and one in forensic pathology, but also a law degree. Before coming to Florida, he spent a dozen years working in the coroner's office in Allegheny County, Pa. He has taught extensively, received numerous awards, testified on Capitol Hill and written for many journals and books.

Smith's case is not the first high-profile one to come before him. In 2003, he found the diet supplement ephedra contributed to the heatstroke that killed Baltimore Orioles pitcher Steve Bechler. Eight years earlier, he determined that 17-year-old model Kristen Taylor's asthma death may have been aggravated by her use of an over-the-counter inhaler.

Nothing, though, has compared to this. It was evident by the hordes of media who encircled Perper on Monday, as he stood behind a podium on two cinder blocks to announce Smith died of an accidental drug overdose.

For all the hours he has devoted to the Smith case in the last six-plus weeks, Perper said the demands for his time weren't too great.

"This kind of stress I can handle," he said. "I do not need to decompress. I'm not compressed. In other words, if I decompress, I'm going to deflate."

Perper has continued his work on all manner of other cases as the world has watched him give word on the Smith case. He has no plans for time off.

"Life goes on," he said. "This was just a blip."

Ukraine, Moldova and Romania agreed to cooperate

Today in Odesa the General Prosecutors of Ukraine, Romania and Moldova have signed trilateral agreement on cooperation.

According to the General Prosecutor’s Office of Ukraine, the agreement is signed by Olexander Medvedko the Ukrainian Prosecutor, Valeriy Gorbul the Moldavian Prosecutor and by Laura Kovesi the Romanian Prosecutor.

“This agreement is aimed at cooperation of our General Prosecutor’s offices for the benefit of Ukraine, Moldova and Romania,” Medvedko said. The document contributes to strengthening of cooperation between judicial systems of three countries.

The Prosecutor of Romania Laura Kovesi noted that this agreement will contribute to mutual help and will lead todecrease of boundary criminality

ForUm

Romania May Benefit From Slower Euro Path - Central Banker

Tue, Mar 27 2007, 13:01 GMT
http://www.djnewswires.com/eu

Romania May Benefit From Slower Euro Path - Central Banker

PRAGUE (Dow Jones)--Romania plans to enter the exchange rate mechanism in 2012, as a prelude to joining the euro, thereby gaining time to push through necessary domestic reforms and also allowing its own currency to achieve a viable rate against the single currency, the deputy governor of the National Bank of Romania said Tuesday.

With low debt and a modest budget deficit, Romania could plausibly push for earlier adoption of the euro.

But successful entry into the euro area will require reforms and "we need the time to carry that out," Deputy Governor Cristian Popa said at a conference in Prague.

Maintaining monetary and foreign exchange flexibility - which would be significantly surrendered if Romania were to join the ERM2 system for aspiring euro area members - should help execute structural reforms such as making labor markets and the whole economy more flexible, Popa said.

Just as important, waiting until 2012 will allow for the massive inflows of foreign direct investment into Romania to be digested and provide a sustainable reading of the country's natural currency rate.

It will "provide the possibility of setting a central parity rate based on a more accurate estimate of the equilibrium rate after overcoming the peak in capital inflows," Popa said.

Last year, Romania recorded around EUR8 billion in foreign direct investment, covering around 90% of its current account deficit, which exceeded 10% of gross domestic product. Responding to that inflow of funds, the Romanian leu was one the world's best-performing currencies, rising 10% against the euro in 2006.

The question of the currency rate at which prospective members join the euro has taken center stage in the past month, as highlighted by Slovakia's central bank decision to revalue its central parity rate by 8.5% earlier this month. Slovakia is a member of ERM2, which requires that local currencies be kept within a trading range against the euro.

Tuesday, Slovakia's central bank cut its main interest rate by 25 basis points to 4.5% in a bid to cool off the Slovak koruna's gains.

The night before, for similar reasons, the National Bank of Romania also slashed rates, taking its main lending rate down by 50 basis points to 7.5% from 8.0% after having cut by 75 basis points in February.

"The 50-basis point cut was partly to squelch speculative investors," Popa said.

Fast-growing economies may suffer imbalances if they link to the euro prematurely, as suggested by Latvia, which last year posted a current account deficit of more than 20% of GDP. Popa noted that Bulgaria, which joined the European Union this year with Romania but also has a currency board arrangement linking its currency to the euro, had a current account deficit of around 16% of GDP.

Popa said the large deficits may not be cause for alarm so long as they are being fueled by foreign direct investment, which tends to boost productivity and also constitute equity rather than debt that needs to be financed.

-By Christopher Emsden; Dow Jones Newswires; chris.emsden@dowjones.com; +39 348 861 9789

Romania urged to rein in public spending

EU finance ministers warned Romania to do more to curb overheating as its economy rapidly grows.

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said Tuesday that Romania needs to rein in public spending, echoing a similar warning from the International Monetary Fund that said the government should cut back on expenditure to lower inflation. Wages have soared in Romania as a result of labor shortages.

"We have sent a message to the Romanian authorities that the overheating of the economy requires more strict fiscal policies," Almunia said. "They have not been strict in correcting the budgetary imbalances and ... contributing to the sound policy mix that the Romanian economy requires."

He spoke after the monthly EU finance ministers meeting.

The ministers backed an EU warning to the Romanian government that deficits could run higher than its own forecasts if it overspends. The EU also recommended that more be done to pay off debt as Romania enjoys high growth.

Romania, which joined the EU on Jan. 1, has enjoyed rapid growth since 2001, after years of recessions and restructuring of heavy industries in the 1990s.

The economy expanded by 7.7 percent in 2006 compared with a year earlier, the national statistics institute has said.

The IMF has warned that GDP growth would slow to about 7 percent in 2007 and that inflation could grow to 5.5 percent unless the government tightened its spending.

Wages have been rising as the country experiences labor shortages, worsened by people leaving to find work in other, better-paid parts of Europe.

Annual inflation slowed to 4.87 percent in 2006 from 8.6 percent in 2005, and continued to slow in January to 4.01 percent.

The International Monetary Fund also urged Romania to increase its flat tax, which is now 16 percent, to reduce the budget deficit to under 1 percent. The government predicted a budget deficit of 2.8 percent of gross domestic product this year -- scraping under an EU limit of 3 percent -- but the IMF says the target could be exceeded due to higher public wages.

Associated Press

Unilever Moves Bulgarian Production Facilities to Romania


27 March 2007, Tuesday

Consumer products giant Unilever said on Tuesday it would close down its margarine and mayonnaise plant in the Bulgarian town of Dobrich, moving the production of the Kaliakra brand to Romania.

The move will make 100 of Unilever's employees redundant, but the company said adequate compensation packages would be provided.

The relocation is part of the company's strategy to concentrate production in locations that offer the best prospects for future development.

Even though production will be moved to Ploiesti, in central Romania, the Kaliakra brand, one of the best-known in Bulgaria, will not be discontinued, company officials said.

Unilever opened the Ploiesti facility in December to serve as the nexus of its production capacities in the region.

Unilever Bulgaria, which had a turnover EUR 20 M last year, is part of Unilever's South Central Europe division, headquartered in Bucharest.

The regional division oversees operations in Romania, Bulgaria, Serbia, Montenegro, Macedonia, Moldova and Albania, and had a turnover of EUR 175 M in 2005.

Tuesday, March 27, 2007

Romania refuses to be rushed on euro entry

von Christopher Condon

Romania, which has seen a big increase in interest from foreign portfolio investors on the back of EU membership, wants to avoid the scenario lately seen in Hungary.

Romania will resist European Central Bank exhortations to bring forward its target date for adopting the euro, opting instead for a more cautious path towards the single currency, according to the country's central bank governor.

Mugur Isarescu told the FT that while Romania, which joined the European Union in January, was on course to meet the Maastricht criteria for eurozone membership earlier than expected, he was keen to avoid rushing ahead until "real convergence" had occurred.

"Euro adoption seems like a simple decision, but it is a complicated one, and we have to balance being ambitious with being realistic."

He said Romania, which has seen a big increase in interest from foreign portfolio investors on the back of EU membership, wanted to avoid the scenario seen in Hungary where the central bank has twice been forced to abandon its target dates for joining the eurozone. Those delays angered investors and undermined the Hungarian currency.

Mr Isarescu recounted with satisfaction a recent encounter with Jean-Claude Trichet, ECB president, who suggested that Bucharest's target for joining the euro in 2014 could be brought forward, asking: "Why are you not more ambitious?"

The Romanian answered that adopting the euro on the technical basis of the Maastricht criteria alone was dangerous.

"Speaking only of nominal convergence, Romania could reach it in the short term," he told the FT. "But without real convergence, [adoption of the euro] is clearly unfavourable for Romania."

To adopt the euro in 2014, Romania would have to comply with Maastricht and enter the so-called ERM II - the eurozone's waiting room - in 2012. But, as Mr Trichet recognised, the country is on course to comply in 2010 or 2011.

Public debt is now 18 per cent of gross domestic product, well below the Maastricht line of 60 per cent. The budget deficit for 2006 is likely to be about half the Maastricht limit of 3 per cent of GDP. Inflation is below 5 per cent and the central bank is targeting 2 per cent within three years, which would also comply. The bank's main interest rate is 8 per cent but if inflation falls towards 2 per cent, the rate would also fall.

However, Mr Isarescu said he worried about Romania's ability to sustain the criteria, especially the inflation mark, and about other threats to long-term financial stability, such as exchange rate volatility.

Structural reforms, he said, must also begin before euro adoption to remove fiscal uncertainties. He pointed to poor government budget management, as well as a need for pension, health and education reforms that would make long-term budget obligations more predictable.

ROMANIA, CROATIA AND BULGARIA COMPETITIVE DESPITE CURRENT ACCOUNT DEFICIT

Tue 27 Mar 2007

Bulgaria, together with Romania and Croatia experienced sufficient increase of its current account deficit, research of rating agency Fitch Ratings showed.

According to Fitch Ratings the increase of current account deficit shows higher domestic demand rather than competitiveness crisis in these countries.

Bulgaria's current account deficit reached 16.3 per cent of the country's GDP in 2006 while Croatia registered a deficit of 8.1 per cent and Romania 10.3 per cent, Bulgarian National Radio reported.

At the same time the three countries registered export growth as the average increase for Bulgaria and Romania for the period from 2000 to 2006 was 21 per cent annually and for Croatia- 12 per cent.

The trade deficits of the three countries also went up, the report said.

The increased current account deficit has to be funded through higher foreign capital inflow, Fitch Ratings said.

Bulgaria, Romania and Croatia are now funding their deficits through direct foreign investment. Yet their Gross Foreign Debt (GFD) keeps increasing in relation to the GDP.

February Witnesses Increases in Romania Car Sales

Car sales in Romania rose sharply in February. Sales of imported cars registered a jump of 74% whereas the sale of homemade cars dropped 18%.

Association of Automobile Producers & Importers of Romania says that the car sales in Romania increased from 14,887 to 18,704 in the month of February. The sale of imported cars increased 74% to 12,210 cars whereas the sales of locally made cars fell 18% to 6,494 units.

Sulfina Barbu, Romanian Environment Minister said, "Last month, that even after two years of soaring new-car sales, the average model in Romania is more than 13 years old". She added that the government would be extending a program, which will encourage the owners of cars, which are older than 12 years to buy new ones. In news published in
Bbj.Hu., Barbu said, "The government will give 3,000 lei ($1,160) to 16,500 owners of older cars this year to help them junk the vehicles and buy models that meet stricter emissions standards",

Many factors play a role in this rise in car sales: the appreciation of Leu (which resulted in lowering prices in lei, whereas the price of vehicles are expressed in Euro usually), introduction of flat income tax (which resulted in high net income for many), reduction in the loan interest rates, scrapping incentive (30 million Lei - around EUR 850 - to scrap an old car above 12 years of age and buy a new one).


The powerful economic growth and the increase in income have also played a role in increase in car sales in Romania. The car importers came out with more advertisements, publicity campaigns, and promotions which resulted in the growth of car sales in the country.

Research analyst at
RNCOS says that the automotive industry of Romania is not believed to be influenced by the slump in the local market, as Romanian car manufacturing would become progressively export-oriented.

Experts anticipate new challenges for the Romanian market in the year 2007. With the rising inflation, the interest rates are expected to hike and this can result in more pressure on the car market. EU accession, which is expected in the year 2007, might result in an increase in the growth of cheap used vehicles.

Eastern Europe competes for share of the IT outsourcing cake

Times Online


The rise and rise of Bangalore as the centre of outsourcing could be under threat from new challengers nearer to Europe’s commercial heart. Increasingly, companies are being attracted to workforces in countries such as Romania, which, a report suggests, have better language skills and a keener understanding of their clients than competitors further east.

A survey of European chief information officers (CIOs) found that nearly 90 per cent would prefer a more local supplier for at least some of their IT services and that just under a third had unsatisfactory experiences with companies in more distant countries, such as India and China.

In the KPMG survey of more than 100 companies, more than half of CIOs said that they planned to boost spending on suppliers in Central and Eastern Europe, including Romania, the Czech Republic, and Hungary; less than a third forecast similar increases in Asia’s emerging markets.

The survey found that although Eastern Europe still charged more for IT outsourcing than Asia, the cost was counterbalanced by the high quality of innovation and the ability to cater to local needs.

Virgin Atlantic, Lloyd’s and Thomas Cook are among the British companies that out-source IT to Eastern Europe.

Crispin O’Brien, chairman of the technology group at KPMG, said: “There’s a certain kind of work — low-cost/high-volume — where the customer experience doesn’t matter so much, but if you’ve got a ‘mission critical’ call centre, you’re going to want somewhere which has a greater level of cultural understanding, whether it’s knowing German law or French customs, and that’s where Eastern Europe is gaining ground.”

In all, Western European companies placed offshore about $2.28 billion of IT services in 2005, according to IDC, the research firm. The vast majority — $1.9 billion — went to India, but growth in Central and Eastern Europe was expected to be more than 20 per cent in the next few years.

“IT offshoring used to be all about sourcing low-cost suppliers in India,” Lionel Lamy, a research director at IDC, said, “but now it’s more refined. Every day we hear about companies opening service centres in Bratislava and Budapest.”

Smaller time differences and strong language skills are among the benefits in Eastern Europe, according to a government official in Romania, where the IT industry is worth €4.8 billion (£3.2 billion) and growing at 17 per cent per year.

Sorin Gavanescu, chief executive of IT Six Global Services, an IT supplier based in Craiova, Romania, said: “Romanian companies offer better communication, a strong work ethic and greater flexibility, and can provide a ‘cultural fit’ to many different markets.”

Kris Wadia, head of outsourcing at Accenture, which employs thousands of people in Warsaw, Bucharest, Bratislava and Prague, said that India would cater to the bulk of European offshoring, but for work requiring extensive collaboration between supplier and customer, companies were turning to Central and Eastern Europe: “It’s about clients managing their risk threshold. They’re saying: ‘I’d be more comfortable with the guy where I can turn up in two hours’ time if there’s a problem.’ ”

Hopes to donate research library

Scientists in Romania could benefit from the closure of a renowned research centre in Scotland.

The Hannah Dairy Research Institute at Ayr closed last year when it lost Scottish Executive funding.

The centre's extensive, 70-year-old library could now be shipped to the National Institute of Animal Biology and Nutrition in Bucharest.

Organisers are still looking for £1,000 of the £5,000 shipping costs for the journals, papers and other materials.

The Hannah Research Institute in Ayr, where 66 staff were employed, was set up in 1928 to carry out research work for the dairy industry.

It had increasingly become involved in technological and biomedical work and was involved in the quest to create Dolly the sheep.

BBC News

Nokia signs deal to open cell phone production facility in Romania

(AP) - BUCHAREST, Romania-Nokia signed a deal Monday with the Romanian government to open a cell phone production facility in Transylvania, the company said.

Nokia plans to invest Euros 60 million (US$80 million) in the plant near Cluj, a major city in Transylvania. The plant will be the company's 11th cell phone production facility globally.

The company said its decision to build a factory in Romania reflected Nokia's strong growth globally, as well as increased demand for mobile devices in Europe, the Middle East and Africa.

Nokia said it selected Cluj County for the plant because of its pool of skilled labor, its good logistics connections and its industrial tradition.

Romanian authorities have agreed to spend Euros 33 million, or about US$44 million, on improving roads and on utilities for the plant, which will be built in the village of Jucu on the outskirts of Cluj, about 400 kilometers, or 250 miles, northwest of Bucharest.

Construction will start in this spring and production is expected to begin in the first half of 2008. Nokia will recruit 500 workers by the end of the year. Eventually, the project is estimated to create 15,000 jobs, the government said.

As part of the plans, Nokia is looking to establish an industrial park in the area, enabling a number of key suppliers and partners to locate their operations there.

Prime Minister Calin Popescu Tariceanu said the Cluj airport could also need to be expanded to cope with increased traffic.

The projects will add to Romania's developing technology sector. Ericsson, Microsoft and Renault have also announced plans to open research, support or design facilities in the new European Union member country.

Romania: Bank Mediator aimed at settling client compensations

26 March 2007

The members of the Romanian Banks Association (ARB) are discussing a project to establish a Bank Mediator, an institution responsible for settling litigations arisen between credit institutions and their clients – individuals or judicial persons, ACT Media news agency reports.


The mediator will be authorized to settle claims against all products and services offered by the credit institutions contributing to its establishment. This free of charge service is aimed at improving the image of the banking system on one hand, and speed up claims settlement, stepping in instead of the judicial system for compensations no higher than 50,000 euros, on the other hand.

The ARB working group that currently handles the project includes representatives of the National Bank, Alpha Bank, BCR, ING, Raiffeisen Bank and recommends that the new institution be established as a volunteer-based, private, independent scheme, after a model broadly in use in the European Union.

(The alternative would be the establishment of a public institution with the mandatory participation of all credit institutions on the market.) However, the first variant is considered more flexible and easy to implement and adjust to the market’s response.

If the first variant is approved, the authors of the project say the necessary approvals from the cen.bank and the National Authority for the Consumer’s Protection (ANPC) can be obtained in April and the institution could be officially launched in November this year.

The new institution should be supervised by a Confidence Council, that appoints the banking mediator from the list of mediators authorized according to Law 192/2006.

The Council will ensure the institution’s independence and will be made up of National Bank, ANPC and bank representatives. According to the project, the Bank Mediator is necessary given the 'significant deficiencies in the current system for the protection of the consumer of financial products and services.'

With an increasing number of financial products and services appearing on the market, the client is exposed to higher risk, as familiarity with increasingly sophisticated banking and financial notions is required.

Source: ACT Media News Agency

Romania: Real state market lacks adequate financial support

26 March 2007

The Romanian real estate market still lacks adequate financial support, reads a study by Willbrook Management International Image. 'In the real estate sector, Romania can lose important ground to Bulgaria, because the financial market is not yet sufficiently developed to support real estate projects,' says Daiana Voicu, Willbrook Management International managing director, ACT Media news agency reports.


According to Voicu, the Romanian real estate market has several shortcomings in comparison with the Bulgarian counterpart sector, because the legislative framework does not stimulate real estate investment trusts - REITs.

“Therefore, investments on the real estate market are slowed down or delayed in terms of invested or re-invested capital and although steadily expanding, the Romanian real estate sector is not capitalized on according to its real potential,” underscores Daiana Voicu.

Bulgaria is the only country in Central and Eastern Europe to finance the real estate sector through the Stock Exchange. Unlike the other regional real estate markets, Sofia offers public access to the yields of real estate property and projects through bourse-listed REITs. At first, the REITs were implemented in Bulgaria as an alternative, more accessible method to invest in real estate. Subsequently Bulgaria used it to encourage and boost foreign investments. Taking advantage of the “zero” tax on the reinvested profit offered in Bulgaria, the investors can re-invest their profit in other real estate projects developed in the same country, generating unremitting growth in global investments. Although the absence of REITs can have unfavorable consequences on the long term, the Romanian real estate market is still high in the preferences of foreign investors due to the strong urban population interested in acquiring or renting a house. Real estate experts consider that land for future residential projects is the most profitable investment in the two fresh EU entrants, pointing to the seaside and the capital cities as top-potential areas.
Although the residences on the Bulgarian littoral are priced lower than those on the Romanian littoral, both in Sofia and Bucharest the price per. sq.m. in new residences reaches some 1,000 euros. Of all the countries where Willbrook Management International has on-going real estate projects - Romania, the Czech Republic, Poland, Latvia, Bulgaria and Turkey - Romania holds a leading position with investments worth over 1.2 bn euros of a total of almost six bn euros. “It would be a pity for the financial market and the relevant legislation not to adequately support the real estate sector in the future by financing it also from public sources,” concludes Daiana Voicu.
Willbrook Management International is a corporation specializing in the management of luxury real estate development projects, active in Romania, the Czech Republic, Poland, Latvia, Bulgaria and Turkey.

Source: ACT Media News Agency

Romania and Bulgaria unfold common EU-funded projects

26 March 2007

Paul Branza, director general of the Romanian Navy Authority (ANR), and his Bulgarian counterpart Nicolai Apostolov, signed a common declaration providing that all the projects implemented on the Danube with EU funding shall be jointly carried out, ACT Media news agency reports.


The document was signed in Ruse - Bulgaria, and the first Romanian-Bulgarian naval project will be the expansion of the system for the identification of ships cruising the Danube – a branch of the Dutch project RIS - River Information Services, NewsIn reports. Bulgaria and Romania have similar identification systems (Romanian RIS).

The ANR head stated that talks with his Bulgarian counterpart led to the conclusion that common Romanian-Bulgarian projects can be developed along certain sectors of the Danube, allowing the two countries to prevent overlapping expenditures. The ANR director general underscored that a meeting will take place in two weeks in Brussels, where the EU funding will be tabled and assigned.

The project is completed and talks with experts will start as soon as the Navy Authority learns the amount earmarked for the project. The project needs to be adjusted to the Danube course from the entry into the country to the Black Sea river mouth, specified the ANR head.

Source: ACT Media News Agency

Romanian PM announces death of current governing alliance

BUCHAREST, March 26 (Xinhua) -- Romanian Prime Minister Calin Popescu-Tariceanu said on Monday that people are witnessing the death of the D.A. Alliance and that in the coming period he will seek a new governing solution.

The D.A. Alliance (The Justice and Truth Alliance) is a political alliance comprising two political parties in Romania: the center-right National Liberal Party (PNL) and the centrist Democratic Party (PD).

The head of the Executive underscored that the parliament will have a heavy say in the shaping of a new ruling line-up.

Tariceanu voiced disappointment over the current political situation, a feeling caused mainly by the talks he had with the PD representatives on Monday morning.

"Because of PD, we practically witness the death of the D.A. Alliance," said the prime minister who is also the PNL president, underscoring that this state of affairs is the result of the Democrats' actions, beginning with their decision to run on separate tickets in Euro-elections and culminating with the recent position of several PD ministers who -- in Tariceanu's opinion -- have boycotted the government's actions.

Tariceanu underscored that the parliament has entrusted him a clear mandate and Romania now needs a stable and solid government, pledging to make all efforts to this aim.

"In the coming period I will have to seriously ponder on how the future government should look like and this is where the parliament will play a highly important role," said Tariceanu.

The main opposition Social Democrat Party (PDS) leader Mircea Geoana threatened last Thursday to table a censure motion against the current cabinet unless the prime minister comes before the parliament with a reshuffled government within a week.

According to PNL Vice-president Crin Antonescu, the future ruling formula might not include PD.

Referring to Tariceanu's statement, PD leader Emil Boc said the Democrats will take a decision some time this week or next week at the latest.

Romania is going through a deep political crisis. The irrational hatred between the governing Liberals and Democrats has worsened in recent months.


Monday, March 26, 2007

Romania's GMO dilemma: who to side with - corporations or the EU?

The Environment Ministry in Bucharest is due to push for public debate two new initiatives on genetically modified food - one for the introduction of GM soy testing and one for tests of GM plum trees. The Ministry recently authorized tests on GM corn. The moves come as agricultural experts are pushing hard to make Romanian citizens understand that GM crops are not harmful.

But environmental militants are redirecting the debate towards studies they say may help stop the expansion of non-conventional crops, while modified corn is the only GM plant allowed in the EU agriculture.

Romania is facing backbreaking decisions on aligning its agricultural legislation to the EU's and applying it wherever possible. But major companies are also pushing hard to have GM crops allowed at large-scale level.

"We're doing what the EU laws says and it says very clearly what can be cropped and what not", Environment Ministry official Catalin Cheran told HotNews.ro.

A short look over all notifications submitted on GMOs on EU territory (http://gmoinfo.jrc.it/gmp_browse.aspx) shows most come from US corporations such as Monsanto, Pioneer and Syngenta. Several other local players - state universities and companies covering national territories alone - are also profiled, but in a much lesser measure.

Pioneer, Monsanto and Syngenta have submitted documents asking to test GM crops in Romania. If applied, the groups may start putting up crops for testing GM soy, corn and plum trees.

They're also claiming that food is already insufficient and that "a solution to these crisis is the use of biotechnology in agriculture", as Clive James, a GMO supporter, put it during a Bucharest conference on March 2.

But anti-GM campaigners are also doing their best in preventing such pressure. Shortly after Hungary obtained an exemption from regulations on GM corn crops, a study was published claiming that GM corn damages human health.

And for the first time since GM corn was authorized for food production, a study recently published by Professor Gilles Eric Seralini of the University of Caen claims the only EU-approved GMO used on testing animals provides signs of toxicity in at liver and kidney level.

Pay up to prove you live:Romania tells state worker

BUCHAREST (Reuters) - A cashier for Romania's state-owned railway has been asked to pay a month's worth of wages to receive government confirmation that she is alive.

Filoftea Popescu discovered when she applied for a passport that the Romania's People Registration Service had mistakenly declared her dead in November 2005, stripping her of all her rights as a citizen.

"I went to the police ... and I found out that I have no rights in the Romanian state because I died in 2005," the 55-year-old Popescu was quoted on Monday by daily Evenimentul Zilei as saying.

Romania is struggling to cut through vast red tape and complicated legislation to improve a bloated and ineffective administration in order to benefit from new membership in the European Union.

"A lawyer told me it costs me 500 lei (to obtain a court order). Why should I pay to prove I am alive?" Popescu said.

The People Registration Service admitted its error and said it fired the staff responsible.

But Popescu's family doctor is still reeling from the shock of seeing her at his office not long after receiving a copy of her death certificate from the state. "When she came to my clinic, I lost my voice," said Nicolae Toboiu.

Romania plans Iraq troop pull-out

Bucharest /26/03/ 12:37 Romanian Prime Minister Calin Tariceanu proposed withdrawing of Romania's troops from Iraq by the end of the year.

"It's time to bring our soldiers back home. I will do everything in my power and in line with the constitution to bring the troops back to Romania by Christmas," Tariceanu said after today's meeting with the mayors.

He added the decision on troop pull-out will be made upon consent with Romania's allies.

makfax.com

China appreciates Romania's adherence to one-China policy

China's top legislator Wu Bangguo said on Monday that China appreciated Romania's consistent adherence to the one-China policy.

"The Taiwan issue is a sensitive issue related to China's sovereignty and territorial integrity as well as the feelings of 1.3 billion Chinese people," said Wu while meeting with President of Romanian Chamber of Deputies Bogdan Olteanu.

Wu, chairman of the Standing Committee of the National People's Congress (NPC), spoke highly of China-Romania cooperation, which has undergone smooth development since the two countries forged diplomatic relations 58 years ago.

The two countries have carried out pragmatic cooperation in various fields, said Wu, highlighting bilateral trade growth.

China-Romania trade hit 6.3 billion U.S. dollars in 2006.

Wu said parliamentary exchanges play a unique role in facilitating nation-to-nation relations, adding that Olteanu's visit will further expand and deepen exchanges between the NPC and the Romanian parliament.

China owns another friend in the European Union after Romania joined the EU on Jan. 1, said Wu.

Olteanu said Romania will become a bridge between China and the EU.

The political parties in Romania have consensus in developing Romania-China relations, said Olteanu, whose China visit started on Sunday and is scheduled to last till April 1.

Source: Xinhua

Romania's coalition heads towards collapse

Monday, March 26, 2007

BUCHAREST, Romania: Romania's feuding coalition government headed closer to collapse on Monday when Prime Minister Calin Popescu Tariceanu said relations between its two main parties had broken down.

"We are witnessing the death" of the center-right Justice and Truth Alliance, said Tariceanu, who heads the Liberal Party after he held meetings with leaders of the Democratic Party.

Tariceanu said he blamed the Democratic Party, which President Traian Basescu used to head, for the breakdown in the alliance which came to power in 2004. Without the Democratic Party, Tariceanu would head a minority government.

Tariceanu said he was "thinking seriously" what kind of government he would lead. A party representing Romania's 1.4 million ethnic Hungarians is the other coalition partner.

Feuding in the government has been going on for months. Relations between Tariceanu and Basescu deteriorated in June after the prime minister said he wanted to withdraw Romania's troops from Iraq and Basescu disagreed.

A Parliamentary commission on Wednesday recommended suspending and impeaching Basescu for violating the constitution and interfering in the government.

Romania: Traktionssysteme to invest in a production facility in Lugoj

Austrian manufacturer of train and trams engines Traktionssysteme is interested in investing even EUR 10m in a production facility in Lugoj.
Representatives of the municipality had a meeting with a delegation including officials of Traktionssysteme and Donau Consult, the Austrian business consultancy company in Romania.

All the parties expressed their interest in building a trains and trams engines plant in Lugoj - said mayor Martinescu.

The investment will be finished in 2008.

Railway Market Magazine

Romania, Serbia: Rehabilitation of the cross-border railway line

Delegations of Serbian and Romanian railway representatives met in Reşiţa to discuss the rehabilitation of Anina - Oraviţa - Iam - Jasenovo - Biserica Albă – Baziaş railway line.
Serbian delegation included: Milutin Minic from the Ministry of Capital Investments, Nenad Kecman, Milan Vucinic and Radovan Lekic from Serbian Railways.

The Romanian side was represented, among others, by: Alexandru Potocean and Alexandru Silvăşan - CFR Regional Timişoara, Constantin Manea, assistant general manager of National Company of Railways CFR SA.

At the opening speech, the president of District Council dr. Iosif Secăşan, wanted to highlight the importance and the opportunity of the projects submitted to common debates: „...I am convinced that restructuring Oraviţa - Jasenovo - Biserica Albă - Baziaş railway does not represent a revival of history, but a promise made to the future. The projects we have been developing together since a long time are presently beneficiating of a new frame through the opportunity of using the funds allocated by EU for cross-border cooperation”.
Being few steps away to being closed because of odd financial reasons invoked by the management of the railways, the oldest Romanian railway section will be saved, its restructuring being, as president Secăşan said, a promise made to the future.

Railway Market Magazine

Romania: Buyer to take over all debts of Electroputere

The President of the Authority for State Assets Recovery (AVAS), Teodor Atanasiu, declared that all debts of the (manufacturer of electrotechnical equipment for energetics and railway) Electroputere will be compulsory taken over by the potential buyer.
At the end of 2006, the debts of the railway provider reached approximately EUR 51m, of which 40m represented the debts to the state budget and suppliers and 11m to the banks.

In contrast, the total value of the assets reaches EUR 30-40m.

AVAS tenders for the sixth time the share package it holds at Electroputere Company, representing almost 62,8% in the social capital of the railway provider in Craiova city.\

Railway Market Magazine

China's Great Wall Motor signs Romania export deal

BEIJING (XFN-ASIA) - Great Wall Motor Co Ltd, China’s largest sport utility vehicle (SUV) maker, said it has signed an export agreement with Romania’s Alexandrion Group.

Great Wall said in a statement that Alexandrion projects annual sales of 10,000 Great Wall vehicles by 2010. Great Wall’s 2006 sales totaled 40,062 units, up 41 pct, and accounting for 17.5 pct of China SUV sales

UN asks Bucharest to make available police officers withdrawn from Kosovo

25/03/2007

PRISTINA, Kosovo, Serbia -- UNMIK asked Bucharest on Friday (March 23rd) to make available 11 Romanian police officers who were pulled out of Kosovo despite an ongoing investigation. At issue is the police response to a pro-independence rally that turned violent last month. Two demonstrators were killed when police opened fire with rubber bullets on February 10th. UNMIK had asked the police officers to remain in Pristina until the investigation ends in early April. Romania says it pulled all 75 of its police officers out of Kosovo because they had already extended their tour of duty by a month. (UN website, AP - 23/03/07)

Sunday, March 25, 2007

Romania to keep old car taxation

Romania's Finance Minister said today he plans to maintain a car registration tax which is subject to legal action by the European Union over concerns the tax is discriminatory.

The EU, which Romania joined in January, launched legal action against the new member state and Malta on Wednesday, saying their registration taxes discriminate against second-hand cars imported from other countries.

"The tax will remain in force. The finance ministry will send a letter to the government, which will make a decision," Sebastian Vladescu was quoted as saying by local Rompres agency. The minister did not elaborate.

The EU's three-stage legal action process starts with a letter of formal notice and ends up in the European Court of Justice unless Romania changes its rules.

Romanian authorities say the tax, which can reach €7,000 for a six-year-old car, is meant to deter consumers from buying old cars that tend to pollute more than newer vehicles.

Reuters

Get stake in Dracula digs in Romania

By Jennifer Harper
THE WASHINGTON TIMES
Published March 25, 2007

For sale: Big home with mountain view, ideal for large family, pets. Fixer-upper, potential in-law suite or home office. Formal dining, fireplace. Nice. Plumbing as is; may need exterminator. $77 million, OBO. (Please contact Igor in little cottage down by the lake before sundown.)

Just in time to shore up a flagging real estate market, Dracula's Castle has come up for sale in Bran, Romania, nestled there in the brooding foothills of the Carpathian Mountains near Transylvania. It's everything a stronghold should be -- just ask Igor, and maybe his lovely wife, Rapunzel. Thick stone walls, red-tiled turrets, four looming towers, a secret passageway, barrel arches, tapestries, dark pines, a large inner courtyard big enough for villagers holding torches.

"Bran Castle was originally a fortress built by the Knights of the Teutonic Order in the year 1212," notes the official description from the Romanian government, which has operated the immense property as a tourist site for decades.

It has a complicated pedigree. After years of court and political complications, descendants of the old Habsburg monarchy managed to regain their ancestral title to the castle in 2006. The new owner is one Dominic Habsburg, a New York architect who is perfectly willing to sell the fortress back to the local government, which pines to preserve it as a dignified historical landmark rather than a theme park or worse.

Yes, Dracula's Castle conceivably could be bought by Disney. Imagine. The company immediately would trademark the name Disney's Dracula Adventure and erect the Inn at Transylvania Commons, the Bela Lugosi Buffet & Cafeteria and the Black Forest Safari Ride.

Starbucks could nab the property, too. We then would be subjected to the Dracu-Mocha Chocolatte. And Bat Muffins. Maybe Michael Jackson would be interested; oops, he has to sell Neverland first.

Meanwhile, Mr. Habsburg -- who grew up in the castle before fleeing from Romania's then-communist government in 1948 -- is still negotiating with the locals over ownership. He vows to do what's best for his family and the surrounding countryside, according to recent British press accounts. As in any real estate deal, the two sides are still talking.

There has not been any Sunday open house yet, though it might not be a bad idea for Igor and Rapunzel to set out fresh flowers, buy new window treatments and light linen-scented candles to entice potential buyers. The castle gift shop continues to do a rousing business selling Dracula T-shirts, coffee mugs, drink coasters, baseball caps emblazoned with the motto "Got Blood?" and throw pillows boasting a Count Dracula portrait worthy of Albrecht Durer.

And why not get in there and merchandise a little? The castle has some competition. It's not the only fortress for sale on the planet.

There's also Schloss Matzen, a 60-room castle in the Tyrolean Alps built in 1167. That's only $6 million. There's always Castle Schwalenburg in Lower Saxony, Germany, which is 42,000-square-feet and has a little zoo. The asking price is $2.2 million.

Why not Castle Messina, located in Sicily? The 12th-century site once belonged to the Princess of Lancia and boasts "a marvelous blue sea view with the mythical Eolian Islands on the horizon." It has a watchtower, large rose garden and inner compound -- all for $1.6 million, which might procure a little shack in Bethesda or McLean.

Not to be outdone, South Africa's Stratford Castle, which features stained-glass windows and a Finnish sauna, is a mere $365,000. The owners will throw in the furnishings -- armor, antiques, rugs and all -- for another $98,000.

Even as we cope with one-room condos in Manhattan for a million bucks, there is a real estate company that only sells castles. For the past 12 years, Texas-based Castles of the World has maintained a directory of castles, palaces, chateaux and medieval buildings for sale -- or rent -- throughout the world. Its listing includes the 20-room Castle of Berkeley Springs, W.Va., complete with great hall, eight bedrooms, six baths, wine cellar and tower. It's priced around $1.8 million.

The company's Web site is worth a look (www.castles-for-sale.com).

Still, the sales saga of Dracula's Castle continues. Will Mr. Habsburg get his $77 million? Will the townsfolk go on selling snappy Dracula throw pillows? Will Igor get his real estate license and go into the business? The mind reels.

Dracula's castle is a bargain in certain respects. Forbes magazine has just issued its annual list of the world's most expensive homes. The newly built Updown Court in the English countryside is at the top of the heap. The 103-room home is set on 58 acres and features a bowling alley, movie theater, helipad, twin ballrooms and a "panic room" just in case the dogs and children are acting up.

The price? At $138 million, it's almost twice as much as Dracula's place. But hey, it has no secret passage, no turrets, no gun battlements, no moat. Hah. You call that a castle? Somebody call Igor.

Saturday, March 24, 2007

Mobile Phones from Romania?

Reuters has been disclosing news about a 200 million mobile phone investment in Romania. Mr. Marius Nicora from the City of Clujin has stated that the City will sign a contract with Nokia the coming week. There has been rumours about this investment in a Roumania blog earlier this week. The Nokia VP of communications Arja Suominen is not disclosing any comments about the investment.

Reuters has been disclosing news about a 200 million mobile phone investment in Romania. Mr. Marius Nicora from the City of Clujin has stated that the City will sign a contract with Nokia the coming week. There has been rumours about this investment in a Roumania blog earlier this week. The Nokia VP of communications Arja Suominen is not disclosing any comments about the investment.

"We've nothing new to say about this subject," Mrs Arja Suominen says to the Finnish Online business journal Kauppalehti.

Nokia has nine manufacturing plants for volume production of mobile phones around the globe.

1. Two are located in Latin America
2. Four are Located in Asia
3. The European plants are operating in Finland, Germany and Hungary
4. There is a special phones plant in UK called the Vertu plant

The rumours around Nokia's possible purchase of the US Palm company has not yet been verified. Motorola is also still in the picture. More information about these activities to be delivered soon.

Sex Slavery Plagues Romania and Bulgaria

Anca thought girls who spoke on television about being sold into sex slavery were paid to invent such stories to boost TV show ratings.

That was until she answered a friend's invitation to join her in Germany and work as a dishwasher in a town near Hamburg.

When she arrived, her passport was taken away and her captors forced her to work as a prostitute for their clients.

Three months later she slid down two floors on a drainpipe, ran several kilometres through a forest and finally found a taxi that took her to a police station and safety.

"The girl who invited me won her freedom by bringing in two other girls," said Anca, a quiet 20-year-old from a Romanian village. She asked for her real name to be withheld to protect her from her captors.

After the two countries joined the European Union on January 1, Romania and Bulgaria are struggling to contain human trafficking and smuggling, particularly in drugs, which is endemic in the Black Sea region that will soon become the EU's eastern border.

Every year, thousands of women such as Anca, some as young as 13, are kidnapped or lured by promises of well paying jobs or marriage and sold to gangs who lock them up in night clubs and brothels or force them to work on the streets. Observers say even more women could be at risk after the two countries join the EU in January and traffickers seek to increase business by taking advantage of easier access to western Europe, where most of the victims end up.

Crime routes

Romania and its southern neighbour Bulgaria are among 11 countries listed by the United Nations as top sources of human trafficking, based on reported numbers of victims.

Other countries in the region, the poorest in Europe, are also hotbeds for organised crime and illegal trade such as Moldova and Ukraine. Poverty, disillusionment with the region's slow reforms after the collapse of communism, and a fraying fabric of society following decades of forced repatriation of many communities help gangs flourish and find easy victims.

"There is poverty, dysfunctional families, mentality. The girls have no roots, no self-esteem," said Iana Matei, who runs Reaching Out, a Romanian charity that helps trafficking victims.

"The traffickers now look for 13 to 14 year olds. They are easier to control. They are trained and brain-washed here. They see they can get little help from police, the system. And they think they can make money and become independent."

Iana Matei

Geography is also a problem. Bulgaria and Romania are part of the "Balkan route" for transporting heroin from Afghanistan - which produces the vast majority of the world supply of poppies - to Western Europe. Eighty percent of Afghani heroin reaches Western users through this route.

Some observers worry that Romania and Bulgaria's membership of the EU could aid the spillover of illicit trade that plagues the Black Sea region into the west.

Bucharest and Sofia governments say they are doing all they can to combat trafficking and abuse. Romania has won praise from Brussels for reforming border controls, combating endemic corruption and improving police cooperation.

But the EU has been more cautious on Bulgaria, rapping Sofia for not doing enough to fight rampant organised crime.

Aid workers say police work is not enough. Governments need to train judges and prosecutors, better protect victims and fight corruption which still allows traffickers to take women through borders or keep underage girls on the streets.

They also need to change the mentality in the traditional Balkan societies which often blame victims for their plight.

"My girls all knew about trafficking. But they thought it only happened to whores," said Matei, whose charity assists girls caught up in prostitution rings.

(Athens News)

Romania probes ex-minister

Romanian anti-corruption prosecutors have launched a fresh criminal investigation against former Transport Minister Miron Mitrea over murky land deals, officials said on Friday. Mitrea, a Social Democrat Party minister between 2000 and 2004, was also charged for taking bribes a year ago. "There are clues that he approved a land transfer from the Baneasa (state-owned) airport to a unnamed person, causing a 7 million euro loss," said Livia Saplacan, a spokeswoman for the anti-corruption department.

Air traffic increases in Romania after EU integration

"EU integration has certainly increased the levels of air traffic in Romania," said Corina Enciu, commercial manager with BA for Romania and Moldova. She estimated the number of passengers has increased on the Bucharest-UK route, as a result of the elimination of foreign visas for Romanian citizens traveling to fellow EU countries.

Consecutively, the company posted an occupancy rate of 86 percent in February, up 11 percent against the same month in 2006.

The number of passengers on the Bucharest-Zurich route operated by SWISS airline rose by 10 percent in the first two months of this year compared with the same corresponding period last year.

Low-cost operators boasted the highest growth rates, generally a growth of more than 50 percent, expecting to double or even triple their passenger numbers every year. As a result of positive figures, a rising number of airlines are interested in the domestic low-cost market owing to its growth potential.

Even though low-cost air travel was expected to develop at the expense of road transportation, this trend has not been highly visible until now.

Source: Xinhua

Friday, March 23, 2007

Moldovan Leader Blasts Romanian 'Intervention'

March 23, 2007 -- Vladimir Voronin, the president of Moldova, has accused neighboring Romania of trying to undermine his country by demeaning its language and culture and offering its citizenship to Moldovans en masse.

In an interview with Reuters, Voronin said Bucharest is pursuing a nationalist and "unionist" policy. He said that "an intervention is under way against Moldova's statehood, its people, history and language."

Most of present-day Moldova's territory was part of Romania before World War II and some two-thirds of its population speak Romanian.

But Voronin said that the "Moldovan language is the mother of the Romanian language. It is the mother. This is how it should be treated, and this is what we teach our citizens about our language. Attempts to call it Romanian, attempts to call it anything else, are attempts to cheat history and deceive one's own mother."

Since Romania joined the European Union in January, hundreds of thousands of Moldovans have applied for Romanian passports. The have been trying to take up a long-standing Romanian offer of fast-track citizenship.

Voronin also said that currently improved relations with Russia means that prospects to resolve Moldova's 15-year-old dispute with its pro-Moscow separatist region of Transdniester are better.

Transdniester broke away from Moldova in 1990. The two sides fought a short war in 1992, which was curbed by Russian troops in the region. No final agreement has been concluded between the two sides.

(Reuters)

Tough times at Romtelecom

Source: Broadband TV News, UK

Date: March 23, 2007

Romtelecom's latest results only serve to highlight the increasingly competitive nature of the Romanian electronic communications marketplace.

The telco, which is owned by its Greek counterpart OTE (54.01%) and Romanian Ministry of Communications and Information Technology - MCTI (45.99%), has undoubtedly had its work cut out following full market liberalisation. Today, it finds itself operating in a sector in which several other companies, including Teletrans, also have extensive fibre-optic infrastructure.

The long-established national transmission company Radiocom is in addition a key player, while the cable industry, headed by UPC and RCS/RDS, provides strong competition in the provision of both Internet access and telephony. It was therefore perhaps inevitable that Romtelecom would sooner rather than later start to fight back by adding TV services to its offer. Dolce, now Romania�s fifth DTH platform, was launched at a cost of �15 million late last year and claims to have already secured at least 60,000 subscribers. Offering nine programme packages, with the most comprehensive containing 45 channels and available for �3.90 a month, it is likely to be followed by an IPTV service in the near future.

This, however, will require heavy investment in the telco's infrastructure and OTE has stated its intention of committing in the region of 500 million Euro to that effect. On the other hand, it has recently been reported that several companies, including Telekom Austria and Deutsche Telekom, are interested in buying OTE's stake in Romtelecom.

In its business plan for 2007-9, OTE has forecast that Romtelecom's income will fall by between 1-2% a year, while its operational expenses will increase by between 1.5-2.5%. Although the Greek telco's commitment to the Romanian market is certainly clear its mobile company Cosmote, launched in early 2006 in a sector dominated by Orange and Vodafone, is performing particularly well Romtelecom, whoever it is owned by in the future, is unlikely to find the going easy.

Romania: Environmental projects need investments of 1.7bn euros

23 March 2007

The achievement of the projects aimed at environmental protection, under the Sectoral Operational Programme for Environment, scheduled to be carried out by 2009, needs investments of more than 1.7 billion euros, Minister of Environment and Water Management (MMGA) Sulfina Barbu said, ACT Media news agency reports.


Approximately 16 percent of the 1.7 billion euros are to come from European funds, with the remainder to be covered from the State Budget as co-financing and with the most important sources to be the National Fund for Development and the Environment Fund.'

The Ministry is fully aware that each and every manager with the National Administration Romanian Waters (ANAR) wants the hydrographic basin it manages to be the first to get the funds for upgrading, but they all must understand that MMGA uses certain criteria to establish the priorities,' the Environment Minister also stressed.

Another priority on the MMGA agenda is the upgrading with state-of-the art equipment of the stations in all the regions of the country, in order to have accurate meteorologic and hydrologic forecasts, with re-upgrading projects already existing worth 181 million euros.

'We must cooperate with the local authorities to avoid such situations as in some localities where the newly built, state budget hydrologic and meteorologic stations are being vandalized,' Sulfina Barbu added.

Source: ACT Media News Agency

Romania: Preferential energy contracts to decrease 10%

23 March 2007

Economy Ministry Varujan Vosganian said that those preferential contracts which some companies concluded with local energy makers will downsize significantly, ACT Media news agency reports.


Varujan Vosganian said at a news conference held in Iasi (eastern Romania) that no attempts of influencing the prices of energy and energy policy have been observed lately.

The Economy Minister said at the same press conference that by the end of this year, preferential contracts would decrease from 22% to below 10%.

‘'The up-to-date situation of the energy contracts show that half of them are concluded with prices established by the National Energy Regulatory Authority (ANRE), 28% of the contracts were set at the free market price and 22% are cheap contracts,'' said Economy Minister Varujan Vosganian.

Source: ACT Media News Agency

Romania: Dem party doesn't plan to leave the govt

23 March 2007

Minister of Transports, Democrat Radu Berceanu, said that withdrawal of political support in the case of the Premier does not also mean the Democratic Party will leave the Government,' ACT Media news agency reports.


Most likely we will reach such a situation. We can think about. If these things continue, maybe, at a certain moment, we will think to such a thing, as well.

We know very well that withdrawal of political support is a formal gesture. We do not imagine that in case we withdraw our political support Mr. Tariceanu would be inundated by emotions', Radu Bercenau stated.

According to Minister Berceanu, PD could make use of such a 'formal gesture' with the aim to clarify this party's point of view toward 'certain issues'.

'When we withdraw our political support, we make official the idea according to which, at least from our point of view, the Premier no longer represents PD side of D.A. Alliance (Justice and Truth) and that he should go, so we can have another Prime Minister', explained Radu Berceanu.

Source: ACT Media News Agency

Romania: First transaction w/electricity conducted on BRM

23 March 2007

The first transaction with electricity was adjudicated in the Romanian Commodities Exchange (BRM), the contract being concluded between TEN Transilvania and Beny Alex, at a price of 161.48 MWh for a quantity of 54,600 MWh, ACT Media news agency reports.


The opening price for all the bidding, stood at 170 lei/MWh and the winners were SC Ennet Grup SRL (165.5 lei/MWh), SC Ezpada SRL (162.9 lei/MWh), SC Grivco SA (168 lei/MWh) and SC CEZ Romania SRL (162.9 and 169.25 lei/MWh).

Starting with April, the Order issued by the Minister of Economy and Trade through which electricity producers were constrained to maintain or prolong their contracts with Electrica comes to an end.On July 1, 2007 the local electricity market is going to be fully liberalized.

Starting with February 22, 2007 BRM has launched the energy trading rink. The solution proposed by BRM and through which it wishes to participate in reconfiguring the electricity market is represented by forward contracts (with 10 day - 18 month delivery deadline) on the available market.

BRM is a private institution set up in 1992 that functions on the basis of Law No. 357/2005 regulating commodities exchanges and has 120 shareholders amid which Electrica, Nuclearelectrica, Transelectrica, Termoelectrica and Hidroelectrica.

Source: ACT Media News Agency

Romania: 40% of produced electricity to trade on BSE in '08

23 March 2007

Approximately 40 percent of the electricity produced in Romania is to be traded since 2008 on the Stock Exchange, 50 pc is to remain on the regulated market and just 10 pc will be found in bilateral contracts negotiated directly, ACT Media news agency reports.


Under these conditions, Romania's electricity market will be one of the most advanced in Europe from the point of view of liberalization and transparency.

OPCOM electricity stock exchange operator in Romania has launched recently the Centralized Market of Forward Contracts with Physical Delivery (PCCF), where forward contracts trading is to be carried out online, through open bidding, from the terminals of participants in the market, in order to secure operations' transparency.

Minister of Economy and Trade Varujan Vosganian stated recently that OPCOM has already become an integrated operator on the wholesale market of electricity, but transactions with electricity can also be made through Bucharest Commodities Exchange, namely on the retail market.In 2006, on the Market of Bilateral Contracts (PCCB) some 2 percent of the overall electricity quantity produced in Romania was traded.

On the Following Day Market (PZU) 6-7 percent of produced electricity was traded and on the balancing market - some 2 percent. Just 11 percent of the electricity produced locally was traded on the free market. The difference of 89 percent was divided among direct contracts, bilaterally negotiated between producers and providers (some 39 percent) and the contracts on the regulated market (50 percent).

Through and Order of the Minister of Economy and Trade, producers were constrained to sell the available quantities exclusively on OPCOM platform.

Following this decision, the proportion increased in Q1 2007 to 7.5 percent, and on PZU and the balancing market the percentage remained relatively the same. Some 17 percent of the electricity produced in Romania has entered now on the exchange platform.

Source: ACT Media News Agency

Romania: Six wind turbine co's qualified for energy production in '07

23 March 2007

A number of six wind turbine electricity producers have qualified for the priority production of energy for 2007, according to a list published on the site of the National Regulatory Authority in Energy Field (ANRE), ACT Media news agency reports.


The six producers are Ecoprod Energy SRL, Pentium SRL, Blue Line Impex SRL, Electrogrup SRL, Electro Margo Line SRL and E Market SRL.

The list made public by ANRE comprises 24 electricity producers from regenerating sources, the remainder of 18 being based on hydro energy. Among them there are Energy Holding SRL, Turceni Power Complex, Luxten Lighting Company, Romelectro SA, Steaua Romana Refinery etc.

The European Commission will present until this year-end, the targets for each European Union member state that must be attained in order to contribute to the objective set by the EU until 2020, according to which 20 percent of the energy consumption should originate from renewable sources.

At the summit of March 8-9, 2007 the EU assumed as targets the reduction of energy consumption until 2020 by 20 percent from the level in 1990, utilization - until 2020, as well - of 20 percent of renewable energy, as well as the reduction of gas emissions by 20 percent.

According to President of the Romanian Agency for Energy Conservation, Silviu Lefter, Romania's energy efficiency potential accounts for 35-45 percent, but currently it is used at the smallest extent. In his opinion, a normative act is also to be adopted that would rule boosting investments in this field.ARCE President also said that, in 2007, a series of commercial companies started some studies on mounting wind turbines in different zones in Romania.

In order to mount a wind turbine a year-long wind force study is needed to determine if the zone is adequate for the construction of such an installation whose price reaches one million euros.

Source: ACT Media News Agency

Romania: President signs decree for PM's caretaker Foreign Min

23 March 2007

President Traian Basescu signed a decree appointing Prime Minister Calin Popescu-Tariceanu as caretaker Foreign Minister so that he may fulfil the foreign minister's tasks, ACT Media news agency reports.

Tariceanu decided to head the Foreign Affairs Ministry temporarily, until the Constitutional Court rules on this case and until the settlement of the current crisis which the premier says was generated by Basescu's refusal to accept the nomination of Liberal deputy and MEP Adrian Cioroianu as the new Romanian Foreign Minister.

The prime minister argued Romania should benefit from adequate representation in the European Union, notably after having joined the European bloc, and in its relation with other states and this is not possible since the foreign ministry doesn't have a minister to head it.Mihai-Razvan Ungureanu resigned from the post in early February, in the wake of a row related to two Romanian workers detained in Iraq, and about whose situation the premier had not been informed by the foreign ministry.

The National Liberal Party on Feb. 19 nominated Cioroianu to take up the foreign minister's post, by the president refused to approve the proposal.Basescu said he appreciates Cioroianu's parliamentary activity, but insisted the foreign ministry should be led by a person having experience in foreign policy, taking into account that Romania's projects in this field need continuity.

The president underscored he had announced the prime minister of this view before Cioroianu was nominated for the job.

Source: ACT Media News Agency

Romania: Porto Petrol, majority shareholder of Sinteza Oradea

23 March 2007

Porto Petrol SRL was reported as majority shareholder of the Oradea-based chemical company, holding 51.83% of its share capital.

Porto Petrol reached its present participation in Sinteza after absorbing Timisoara Plaza Center SRL and Trans World Trading SRL, each holding 48.8% and 3% respectively in Sinteza.

Porto Petrol is controlled by Mirela Pongracz, Ioana Pop, Gratian Peltic and Cristian Pop, each owning a 25% interest.

Another important shareholder of Sinteza is businessman Tibor Tincau, with a 27.5% stake. The chemical company has a market value of €10m and a trading price of RON 0.51/share.

Reporter.gr



Romania: Privatization could save energy sector

23 March 2007

Romania could face an energy crisis in the next two years. A solution envisaged by president of oil company Rompetrol Dinu Patriciu, is the privatisation of the electric energy production system, ACT Media news agency reports.
The president of the Rompetrol Group told The Money Channel on Saturday that the privatisation of the state-owned energy producers, could lead to the emergence of a market in this area and could therefore balance the electric energy prices. 'When all the companies are private, regardless of being profitable or not, the market would emerge, the element by which the prices are balanced.'

The privatisation should include all production capacities for electric energy, whether they are coal thermo-electric power stations, hydro-electric power plants or the nuclear station from Cernavoda.

Alexandru Sandulescu, the general director of the Energy Policies Division within the Ministry of Economy and Trade agrees with Patriciu and considers that the amounts that the energy sector will be granted by the European funds are not sufficient to rehabilitate the energy producers.

'Romania will be the beneficiary of 600 million euros between 2007 and 2013, but the largest part of the amount will be oriented to the growth of the energetic efficiency', the director of MEC explained. Beside the capital infusion, the privatisation of electricity producers could generate cuts in the supplied electric energy prices, as an effect of the competition, Dinu Patriciu estimated.

As regards the proposal of the president of the Industry and Services Commission at the Chamber of Deputies, Iulian Iancu, to create a legal instrument by which a part of the profit of suppliers, that acquire energy at low amounts and sell it to the consumers at much higher prices, should be granted to the producers, Patriciu considers it an absurdity: 'This would be absurd.

How can we penalize the private sector? It should be stimulated. The suppliers have their role and take their chances', Patriciu added. The declarations of Patriciu were supported by the latest scandals related to the 'smart boys', who have concluded energy contracts at low prices in order to resale it on the market at much higher prices for profits of millions of EUR.The pressure for the conclusion of energy contracts has stopped.

The Minister of Economy and Trade Varujan Vosganian said that the 'smart boys' are history. 'From January, since I was appointed as minister, I did not receive any phone call in order to influence the prices or the energy policy' Varujan Vosganian said Sunday, at a press conference in Iasi.

The minister stated that the number of the preferential contracts, with cheap energy, will gradually decrease, as the contracts will expire.

The independence of Romania in terms of energy will increase in the following years and will exceed 90 percent in 2015, when the investment projects in the nuclear-electric production units and in the mine industry in Valea Jiului are concluded, the Minister of Economy and Trade Varujan Vosganian on Sunday said in Iasi.

Reporter.gr

Romania: British bookmaker enters Romanian mkt

23 March 2007

The main subsidiary of the Internet British bookmaker Leisure&Gaming, Betshop, will develop this year an entire network of franchised licensed betting offices throughout Romania, according to the company’s financial report, Nine o' Clock reports.
Betshop was awarded a licence to operate on the Romanian market last year and has recently opened an office in Bucharest.

The plan of the company is to establish a franchised chain of betting offices across Romania, similar to the one it operates in Italy. Company officials estimate their business sin Romania will already be contributing to the corporate revenue in Q3.

Betshop Group Limited entered the Leisure&Gaming portfolio in June 2006, when the British group sold the whole business in the US for the symbolic amount of one US Dollar. ‘2006 was a difficult year.

Reporter.gr

Romania: Foreigners' net acquisitions on stock market grew up 2.7

23 March 2007

Foreigners' net acquisitions at the Bucharest Stock Exchange (BVB) and RASDAQ market grew by some 2.7 times in Februarycompared to the same period one year ago, ACT Media news agency reports.

Foreigners' net acquisitions at the BVB totalled 113.1 million euros (382.7 million lei), according to figures carried on March 21, by the National Securities Commission. (CNVM).

The level of acquisitions made by non-residents in February is almost double as against the first month of this year, when they stood at 57.8 million euros (196 million lei). Foreign investors bought in February shares worth 193.5 million euros (654.6 million lei) and sold shares that cumulated 80.4 million euros (179.7 million lei), up 21 percent as against the same period one year ago.

The most important buyers were investors from UK, Austria, the United States and Cyprus. According to Rompres, the most active foreign buyers in February were from Cyprus, Luxembourg, Austria and Cayman Islands, who together recorded sales of almost 75 percent.

Source: ACT Media News Agency

Romania: BAE Systems signs deal with Aerostar Bacau

23 March 2007

Romanian company Aerostar Bacau will be the main contractor in the conversion program turning passenger airliners BAE 146QT in freight planes, ACT MEdia enws agency reports. Aerostar plans to employ secondary contractors for parts of the program, Avioane Craiova being one of the targeted companies.

Aerostar will be in charge with maintenance, assembling large doors for freights and installing the interior of the planes. Avioane Craiova will fabricate the large doors with vertical opening.

The planes transformed within this contract are operated by large transport companies, like TNT Express, Australian Air Express, Titan Airways (UK) and Western Air Sweden.

Source: ACT Media News Agency

Romania: Security laws discussed in Parliament

March 2007

The Legal and Defence Commissions of the Chamber of Deputies started the debates over the five draft laws from the package regarding the national security, but they found out that there is not any point of view of the Government or the Supreme Defence Country (CSAT) over this package, Nine o' Clock reports.
The most important thing, however, is that the discussions over these draft laws take place in the absence of a national security strategy that Cotroceni Palace should have worked out two and a half years ago. According to the Constitution of Romania, “the President of Romania is the commander of the army and fulfils the office of president of the Supreme Defence Council.”

Moreover, art. 5 from the Law regarding the planning of defence stipulates that the President of Romania submits to Parliament, in six months at most after he was sworn in, the National defence strategy, which Parliament discusses and approves through resolution, in a joint session. In this context, the package of laws regarding national security, initiated by 71 Liberal MPs, has arrived on the table of the Deputies who decided to request CSAT, the Government and the parliamentary parties a point of view over this issue.

“Without this strategy, the discussions will be subjective,” said the PSD Deputy, Marian Saniuta. SPP, STS might to be subordinated to MAI The representatives of the Services targeted in this legislative package, the Romanian Intelligence Service (SRI), the Foreign Intelligence Service (SIE), the Guard and Protection Service (SPP), the Special Telecommunications Service (STS), present at the debates of the Commissions, criticised the five draft laws.

STS and SPP are the most affected because according to the normative acts these Services – which currently are accountable only to Parliament – will be subordinated to the Ministry of Administration and Home Affairs (MAI). Present at the debates, SPP director, Gen. Lucian Pahontu, said that if this Service is shifted to MAI it is not clear any more who will manage the missions to be carried out by SPP and, especially who will he responsible for these missions.

Moreover, the Services are prohibited to receive funds from other sources than the state budget and, also, to have agents under cover in the media, politics or unions.

The package of laws also stipulates the strengthening of parliamentary control over the activity of the intelligence Services. The Democrat Deputy Daniel Buda asked why the Government has not worked out the legislative package, if Premier Calin Popescu Tariceanu is one of the initiators.

“This legislative package is in a proportion of 80 per cent similar to the one adopted by the Government in October 2006. (…)

We wanted to issue a political signal and therefore it was signed by 71 MPs. Hopefully, CSAT will prove this time a bigger opening and will express its point of view,” explained the Liberal Deputy George Scutaru. He stressed that if the legislative package is not passed in 60 days, it will be approved tacitly by the Chamber of Deputies and then will go to Senate.

The normative acts have very big chances to be tacitly adopted, as demonstrated yesterday by the Deputies, who tried for over half an hour to set a common working agenda together with the representatives of the involved Services in order to finalise the debates within the 60 days.

Reporter.gr

Romania: Govt invests RON 49.5 mil in auto park renewal

March 2007

The Government will allot this year RON 49.5 M to carrying on the 'Lemon Car Program,' which has the purpose to renew the auto park, the Minister of Environment and Water Management, Sulfina Barbu, said, Nine o' Clock reports.
The repealed car bonus stands at RON 3,000 for each auto vehicle out of use. A number of 16,500 citizens stand to benefit from that bonus during the three stages of this program.

“In 2005 and 2006, carbon dioxide emissions were cut by 700 metric tons, and 29, 717 old cars have been taken out of use. The program proved efficient from the standpoint of both the environmental and traffic safety,” the Environment minister said.The auto vehicle to be repealed must be 12 years old or older and operational.

Citizens willing to benefit from the bonus much choose a manufacturer or importer from the list published on the website of the Environmental Fund Administration (www.afm.ro). The acceptance note from the producer is valid for a period of 30 days.

The list of authorised manufacturers will be available 28 days since the date of March 22, 2007, when the “Procedure for Registration in the Auto Park Renewal Program” will be published in the Official Journal.

Reporter.gr

Romania ACG: Illegal aspects found in energy, highways, state assets and properties

23 March 2007

The Government’s Control Authority (ACG) presented its 2005-2006 activity report, ACT Media news agency reports.

According to the official releases and statements, ACG organized 127 controls within a year, out of which 22 were finalized by criminal files tables to prosecutors. The inspectors found faults in both central and local administration institutions.The balance meeting was attended to by PM Calin Popescu Tariceanu, chief of the ACG Emanoil Negut and the Delegate Minister for Foreign Program Implementation Control, Cristian David.

According to the report ACG verified 310 institutions in the central administration and 210 local administration bodies. Illegal aspects discovered included the Bucharest - Brasov highway, the bird flu crisis, the State Protocol Properties Administration Agency (RA-APPS) and the State Assets Agency (AVAS), as well as in the energy producing industry.

Source: ACT Media News Agency

Romania: Transgaz considers 10% share cap to float on BSE

23 March 2007

According to Florin Muntean, CEO of the national natural gas transport company Transgaz, it is most likely that the company will float 10% of its share capital on the BSE by year-end or the beginning of next year.

The State holds 85% of Transgaz, accounting for RON 103.83m (€31m), after 15% of the company was transferred to Fondul Proprietatea. Transgaz estimates for this year a turnover of RON 1.12bn (€330m), 33% higher y/y, and a gross profit of RON 244m (€73m).

Reporter.gr

Nokia to build 200 mln euro plant in Romania

BUCHAREST, March 23 (Reuters) - Finnish-based Nokia (NOK1V.HE: Quote, Profile, Research) plans to build a 200 million euro ($266.7 million) mobile phone plant in Romania, a local government official said on Friday.

"We will sign a memorandum with Nokia next week. It is a 200 million euros investment," said Marius Nicoara, a local government official in the city of Cluj said.

((Reporting by Radu Marinas; editing by Erica Billingham Reuters Messaging: radu.marinas.reuters.com@reuters.net; +40-21-315 8320))

In April 2007, Amkodor Company to supply eight excavators-loaders to Romania

In April this year Amkodor Company will supply eight excavators-loaders to Romania, BelTA was told in the marketing center of the company.

According to the specialists, since the beginning of the year Amkodor has already sent six such machines (Amkodor-702E) to Romania. In 2006, Romania bought 11 excavators-loaders. This model is especially popular in Romania.

Amkodor has been taking part in the international exhibition of construction machinery Construct Expo Utilaje-2007 held in Bucharest (Romania) on March 21-25. The company has been demonstrating its five-ton bucket front loader Amkodor 352 and a multifunctional integrated tool carrier Amkodor 342C-03. The machinery was presented by the general foreign trade distributor of Amkodor – BELANTES Holding Co.

According to the specialists of the marketing center, due to such international exhibitions as Construct Expo Utilaje-2007 more European companies have been showing interest in other road building machines made by Amkodor. For example, the Romanian company Estagroteh, SRL has expressed readiness to purchase Amkodor bucket front loaders and multifunctional integrated tool carriers. At present the sides have been settling an issue relating to the certification of these machines for the European market.

Amkodor is one of the CIS and Europe’s largest producers of road construction machines, refuse collection and street-cleaning vehicles, snow removers, airfield cleaners, special purpose vehicles, machines for timber industry and agriculture. Amkodor’s product range includes almost 40 types of machines with the payload capacity of 2,5-6 tons. Every year the company rolls out over 4,000 road construction machines, including around 2,000 loading shovels. The company sells almost 70% of the output in Russia.

Romania Opens Graft Probe Against Ex-Minister

Romanian anti-corruption prosecutors have launched a fresh criminal investigation against Miron Mitrea over murky land deals.

Mitrea, a Social Democrat Party Transport minister between 2000 and 2004, was also charged for taking bribes a year ago. He has denied both accusations.

"There are clues that he approved a land transfer from the Baneasa (state-owned) airport to a unnamed person, causing a 7 million euro loss," said Livia Saplacan, a spokeswoman for the anti-corruption department.

The new European Union member was praised by Brussels for anti-graft reforms carried out by the two-year-old centrist government after it started inquiries on several top-level politicians, including former Prime Minister Adrian Nastase.

But Romania could face sanctions from Brussels if it does not introduce an agency to monitor wealth amassed by politicians and show further progress by convicting high ranking criminals.

On Thursday, the Supreme Court suspended a corruption trial against Nastase after defence lawyers said the case was based on unconstitutional procedures.

Fuel loaded into Romania’s Cernavoda 2


23 March 2007

The first bundle of nuclear fuel has been loaded into the Cernavoda 2 reactor in Romania, paving the way for commercial operation this summer, AECL has said.

A consortium of AECL and Ansaldo Nuclear of Italy, with owner Societatea Nationala Nuclearelectrica (SNN), is managing the completion of the partial construction of the Cernavoda Unit 2 power plant, the second in a series of CANDU 6 plants that began construction in the early 1980s.

The manual loading of 4,560 fuel bundles, amounting to 100 tonnes of uranium, was completed over a 10-day period. The unit is expected to achieve criticality in April; first synchronisation and connection to the grid is expected shortly thereafter; and the plant scheduled to be in service late summer.

Ron Cullen, AECL’s vice-president of projects said: “While AECL’s prime focus is the completion of Cernavoda Unit 2, some initial work is being reviewed in readiness to participate in the completion of Units 3 and 4 as the Romanian government moves forward with its plans to complete the construction of these units.”

Units 3 and 4 were partially built in the 1980s but work on completion is now scheduled to begin late in 2008 with commissioning in 2013 at an estimated cost of €2.2 billion.

Commission recommends impeaching Traian Basescu

BUCHAREST (AP) – A Romanian parliamentary commission yesterday recommended suspending and impeaching President Traian Basescu for violating the constitution. The commission, set up to investigate allegations against Basescu brought by three opposition parties, said the president undermined the government, refused to name ministers proposed by Prime Minister Calin Popescu Tariceanu, abusively took part in cabinet meetings, ordered illegal telephone tapping, and told prosecutors what cases to investigate. Basescu has been at odds both with Tariceanu, a former ally, and three opposition parties. Any decision by parliament to impeach the president would have to be approved the majority of Romanian voters in a referendum – which is unlikely.

From the Cleveland International Film Festival

Another review from Anne Price, whose covering the Cleveland International Film Festival for About.com Cleveland this week. This one's about the Romania film 12:08 East of Bucharest...

If Christopher Guest were a Romanian director, he couldn't top the hilarity and wry commentary on revolution found in Corneliu Porumboiu's terrific directorial debut, 12:08 East of Bucharest.

This was on my schedule of films as the cinematic equivalent of oatmeal, or prunes: good for the constitution, but probably nothing worth writing about. How wrong could one person be? I left the theater with eyeliner streaming, wondering if perhaps a lung collapsed from too much laughter. Was thankful for English subtitles; a roaring audience drowned-out much of the spoken dialogue.

The basic premise: sixteen years after dictator Ceausescu's scramble to flee Romania amidst a swarm of angry protestors, Jderescu (Teodor Corban), the TV station owner in a small hamlet outside Bucharest, wants to know: was their city part of the revolution, or merely witnesses and celebrants after the fact? Staging a panel discussion, he's determined to answer this question.

Unlikely Stars
When scheduled participants bail on him, he's left scrambling to find replacements. Enter the town's drunken history teacher, Manescu (played with deadpan hilarity by Ion Sapdaru), and its elderly part-time Santa Claus, Piscoci (a perfect Mircea Andreescu). That fateful day might have found them staging a revolution. However, they just might have been getting drunk in the local bar.

Unfamiliar with the spotlight and ensuing challenges, panelists spend their time shredding paper in quiet frustration or building paper boats from boredom. The latter is simply a priceless, hilarious touch. Equally wonderful is Piscoci's mundane but beautiful retelling of exactly what he did the day Communism fell in Romania. Was he watching Tom and Jerry or Laurel and Hardy? We may never know for certain.

Hilarious Blend
Add more alcohol, confusion, callers who range from cantankerous to just plain quirky, an inexperienced, literally unfocused videographer and shake well. The result is a perfect blend of breezy humor and relevant questions about what constitutes recollection of "the truth."

Despite the overall levity, a deeper, more serious profound message is contained with the film. Piscoci, the aged voice of reason and resignation, is used as the delivery vehicle. People make revolution wherever and whenever they can; liberation from within is far more important than the details of location and timing.

Romania: Romania Posts to sell POSTelecom shares

10:00 - 23 March 2007
The Romanian Post sold the Czech Tactical Network Investments, for 5 million euros, its package of 80 percent shares in the First Project, former POSTelecom, early this March, announced Romania Post general director, Dan Mihai Toader, ACT Media news agency reports.

POSTelecom used to own a license in the 3.5 GHz bandwidth, which the General Inspectorate for Communications and Information Technology withdrew, because it never made use of it.

The Romanian Post and Tactical Network set up, early this year, the POSTelecom Network SRL and the former planed to bid in the auction the IGCTI stages to grant operation licenses in bandwidths of 410-415 MHz and 420-425 MHz, bands to supply mobile phone services and data broadcasting.

Provided POSTelecom Network wins an operation license, the Tactical Network Fund owning 51 percent of the shares of POSTelecom Network SRL will invest at least 60 million euros in the development of a communication network, in the first stage, Toader stressed.
Tactical Network is an investment fund developed by ZTE Corporation that showed interest in the POSTelecom project to enter the Romanian market of telecommunications supplying telephony services and data broadcasting.

Source: ACT Media News Agency

Romania: Ex-Foreign Minister will not willing to fill post in SECI in Vienna

09:46 - 23 March 2007
Ex-Foreign Minister Mihai Razvan Ungureanu wants to propose somebody else to fill the post of special representative of Romania in Vienna with the South-East European Co-operation Initiative (SECI), ACT Media news agency reports.

Former Foreign Minister filled the post in Vienna over 2003-2004, before being appointed Romania's foreign minister, and in Dec. 2004 the post was suspended.'Mihai-Razvan Ungureanu is on holiday now, he is an employee of the Foreign Ministry, and in conformity with the law the post with SECI is re-activated.
The post has not been created and will not be kept for Ungureanu, he wants to propose somebody else for it, in agreement with SECI leadership,' Vintan said.She also said that when he proposed a higher salary for the post in Vienna, which has reached 5,280 euros, Ungureanu has not thought of himself, but of the future.

The rise because the post in Vienna requires high professionalism, considering the frequent contacts with officials from organizations in Vienna, asking high representation and protocol level.

According to Liberal and governmental sources, Ungureanu prefers the position in Vienna to that of EMP the National Liberal Party has offered him. Diplomatic sources told Rompres on Wednesday that members of the Liberal leadership are angry with Ungureanu, because he prefers the post in Vienna to that of EMP, although he was top of the list for the latter.

Source: ACT Media News Agency

Romania: Transgaz criticizes Nabucco project

09:42 - 23 March 2007
The planned Nabucco pipeline that should carry gas from the Caspian Sea region to Europe was started as an economic project but has gradually turned into a political one, Transgaz Medias General Manager Florin Muntean said, Nine o' Clock reports.
‘The Nabucco started as a commercial project but has grown into a political one, and tat is the reason for the delays in execution’, Muntean stated during the hearings within the Committee for Industries and Services in the House of Deputies, investigating into the work of the Ministry of Economy and Trade. The consortium that is constructing the gas pipeline is negotiating the affiliation of a new shareholder. ‘Turkey opposes bringing a new shareholder (…).

Talks are being held with another company that is on a list of prospective project shareholders’, said Muntean. At the middle of March, the Bulgarian company Bulgargaz was informing that Gaz de France was negotiating the possibility of becoming the sixth shareholder in the Nabucco consortium.

Companies Bulgargaz, Transgaz, OMV (Austria), mol (Hungary) and Botas (Turkey) plan to deploy a pipeline designed to carry natural gas from Iran and from the Caspian region to Europe, within a project evaluated at EUR 4.6 bln.

Florin Muntean indicated that Transgaz would invest between RON 180 and 200 M in developing the natural gas transportation networks. ‘In 2007 we shall allocate between RON 180 and 200 M for development and other funds for modernizing older networks.

Even if some of the pipes are old, they do not pose a risk because they are regularly inspected, checked and cleaned’, added Muntean. Transgaz will develop its network in the County of Bihor, around Bucharest and in North Moldavia.

The state owns 85 per cent in the share capital of Transgaz, in the value of Ron 103.83 M, having ceded 15 per cent to the Proprietatea Fund. The company stocks wait trading on the Bucharest Stock Exchange.

Reporter.gr

Romania: State could give companies 200,000 euros for exports

09:26 - 23 March 2007
Activities promoting exports will be financed by the state budget in the limit of 200,000 euros, granted for three years on a row, according to European norms about stare aid, ACT Media news agency reports.

The delegate minister for trade, Iuliu Winkler announced theat value of state financing should be in the limit of 200,000 euros, for three years on a row. The rule of state aid will be applied to all new instruments promoting exports, adopted by the government on Wednesday, by a decision that amended the export promoting system.

Even participation in fairs and exhibitions in countries where there are Romanian firms or branding activities will be financed from the state budget. The minister declared that in 2007, the program stimulating exports had a budget of 25 million lei from MEC.

On the other hand, the overall budget for promoting Romanian exports is 423 million lei in 2007, of which 334 million lei are for Eximbank to grant financial banking instruments for trade promotion and stimulation. The export promotion program of the Ministry of Agriculture has a budget of 35 million lei while the Agency for Small and Medium Companies has 8 million lei.

Source: ACT Media News Agency

Romania: Opposition wants cabinet to be restructured immediately

09:14 - 23 March 2007
Pressure for the Cabinet to be restructured came from PSD again yesterday. PSD had also threatened to initiate a non-confidence vote before the session of the Parliament began. PSD President Mircea Geoana said he would be willing to support a new cabinet as long as the premier announced the restructuring the following week, Nine o' clock reports.
The Conservatives also asked for a rapid restructuring of the Government, yesterday, and also demanded the resignation of President Traian Basescu. ‘We are willing to also explore other formulae for a complete government’, PSD leader Mircea Geoana stated yesterday.

Otherwise, he threatened, PSD will initiate a non-confidence vote against the Government. For the restructuring to take place, the law governing the organisation and the operation of the Government needs to be amended, therefore the Parliament would need to vote.

The voting procedure is similar to the one for instating the Government, where the qualified majority is needed and, in case the law failed to be passed, the prime minister would be considered dismissed.

The blunt support the Social Democrats are ready to give a Tariceanu cabinet heated up spirits among the Democrats, who accused the Premier of leaving PD and UDMR out when deciding on the restructuring outside the alliance and the coalition. Over the past few days the press has been speculating on the fact that PD may be removed from government, anticipating a PNL-PSD-PC-UDMR coalition.

The Government will be restructured by Easter (within two weeks), UDMR Deputy Hunor Kelemen stated yesterday, but a decision on the political composition (that is with or without PD) has not been yet made by the Premier.

The Democrats have informed that they were not going to leave the Government anyway ‘not to give Tariceanu the satisfaction’, whom they accused of obscure plotting with the PSD president. ‘Mircea Geoana is already assigning to him (the PM – editor’s note) tasks and instructing him about who should be the ambassador, who is good and who is bad, when he should proceed to restructuring the cabinet, he is already setting deadlines and term limits for him, so we can easily imagine what the rule will be like after this new romance has turned into an assumed relationship.

It would be, in fact, a rule by PSD, PRM and PC while PNL would be the only one to suffer the fatigue, because PNL will be the only party in the Government’, PD leader Radu Berceanu (photo) stated yesterday. He also criticized the decision of the Pm to take over the responsibilities of the foreign minister himself before the situation of the ministry is clarified by the Constitutional Court. ‘We have realised that the Premier wants to be the foreign minister as well.

I suggest he could also be the president of ANAF, in Bodu’s place (…) There are other vacancies as well, all created since he started dismissing PD people and we are gladly expecting him to fill them all’, he said. In fact, the PM’s decision to provisionally undertake Romania’s diplomatic responsibilities was looked at in doubt by Geoana, too, who was foreign minister between 2000 and 2004.

‘You cannot be a one man show’, deeming the Romanian diplomacy will lose efficiency because of the war of the palaces. At least a third of the positions on the cabinet – eight of the 23 offices of minister stipulated by the Government Organisation and Operation Law – are in suspension.

The foreign minister’s post is vacant, after the resignation of Foreign Minister Mihai Razvan Ungureanu, and the refusal of President Basescu to accept the appointment of Adrian Cioroianu made Premier Tariceanu decide he would take over the portfolio of the foreign minister himself. A similar situation can be also found at the Government Secretariat General that is still being headed by Minister Radu Stroe (PNL), who resigned. The situation at the Ministry of Communications is quite delicate, as Minister Szolt Nagy (UDMR) has been placed under investigation in the case about the privatisation deals in the energy sector.

Atmosphere is extremely tensed at the Ministry of Administration and Home Affairs and at the Ministry of Justice as well – two PD portfolios – after the PM prompted Ministers Vasile Blaga and Monica Macovei to resign.

The PD Minister of Integration, Anca Boagiu, was left without the object of work when the PM passed a decision giving all the competence of her ministry to a new department reporting directly to him. Boagiu was supposed to take over the management of the structural funds and prepare mechanisms for drawing and spending them, but, in the absence of a new law on the organisation and functioning of the Government her work has been put on hold.

The two offices of vice-premier (the one for SMEs and the one for the macro economy) were vacated last year when PD gave them up. Although they are not filled, the two positions are still mentioned in the law. In conclusion, despite the fact that PM Tariceanu has recently stated that the restructuring of the government was not a priority, the government structure needs to be revitalized and stabilized, also considering that Romania has a week to send to Brussels the assessment report based on which the European Commission may activate safeguard clauses or not. Prime Minister Tariceanu according to sources from PNL has not made his decision on whether or not to remove the Democrats from the Executive by restructuring it, and that is why he is putting off the moment.

However, the majority of people around him are pressuring him to introduce, no later than next week, a PNL-UDMR cabinet to the Parliament. The advocates of the variant count on PSD’s voting for a restructured Government, as promised.

On the other hand, Tariceanu’s advisers and people from the Government warned him that a restructured Cabinet without PD in it may not be passed by the Parliament, with votes from the Social-Democratic Opposition, because some of the PSD leaders could be blackmailed.

Tariceanu’s advisers fear Traian Basescu might convince PSD to vote against Tariceanu by giving them the leadership of the Foreign Intelligence Service.

Reporter.gr

Romania: City Hall intends Metrorex takeover

12:20 - 21 March 2007
The municipality of Bucharest has tackled with the prime minister the take over of Metrorex, subjected to the Ministry of Transportation, Nine o' Clock reports. Bucharest General Mayor Adrian Videanu declared that among the means of public transportation the subway will become the most important.

He mentioned that the strategy for the extension of the subway line is planned for 7-8 years and includes the development on two important areas: Drumul Taberei-Colentina and Piata Victoria- Otopeni subway lines.

Reporter.gr

Romania: Electricity prices to rise by 3.95% on avg in April

14:09 - 22 March 2007
The price of electricity will go up starting April 1 by 3.95 on average, following the hydrological deficit registered last year, president of the Romanian Electricity and Heat Regulatory Authority (ANRE) Nicolae Opris said, ACT Media news agency reports.


‘'Under normal circumstances this should be the last rise of this year, however, if the year will be extremely droughty, a similar rise could occur in autumn,' said ANRE's president.

Opris is confident a new rise is not necessary because of the commissioning of the Cernavoda-based nuclear power plant's Reactor 2 in September provided the initial programme be observed and no delays reported.

Source: ACT Media News Agency

Thursday, March 22, 2007

Eastern Europe may face rating downgrades in 2007, Danske says

Romania, Bulgaria and Slovakia, may face ratings or outlook downgrades, only the Czech Republic and Hungary may expect positive actions from the rating companies A/S Danske Bank said.

The six countries have overheating economies, unsustainable credit growth and high inflation, and they have postponed euro adoption, raising the risk of ratings or outlook changes, Lars Christensen, a senior analyst at A/S Danske Bank, the Nordic region's second-largest lender, said today in a report „New Europe: Mind the ratings.” High inflation, asset bubbles built on quick credit growth and fast economic expansion may leave countries in eastern Europe vulnerable to economic declines should financing slow as the European Central Bank tightens monetary policy, Danske said. A ratings downgrade could reduce investor confidence in these countries. „Our models indicate that the countries which are most fragile to negative rating actions are to a large extent the same countries that are likely to face a hard landing in the economy and possibly also financial distress,” Christensen said.

Latvia, the fastest growing economy in the European Union, may face a cut from all three credit agencies. Fitch and S&P may lower Latvia's sovereign debt rating to BBB+ from A-, Danske said. Moody's may reduce the Baltic country's outlook to negative from positive. „Latvia stands out, and our analysis clearly shows that the risk of downgrades of Latvia's sovereign debt is substantial,” the report said. S&P cut Latvia's outlook to negative February 19, saying the country risked a „hard landing.” Danske Bank said the scrutiny of Latvia's external imbalances brought attention to the rest of Eastern Europe.

The Slovak economy is showing „clear signs of overheating” and a possible delay in euro adoption may trigger all three rating companies to change outlooks from stable to negative, Danske said. The ratings companies seem to be „a bit too optimistic about Slovak euro adoption in 2009,” the report said.
Moody's and Fitch may lower the outlook for Lithuania to negative from stable, and for Estonia the assessment may fall to stable from positive, according to Danske Bank's models.

Bulgaria and Romania have been rated „too generously” since the two countries joined the European Union in 2007, Danske Bank said. Rising external imbalances and increasing loan growth could lead to a cut in the outlook for the two countries. Bulgaria could be lowered to negative from stable by S&P and Fitch, the report said. Romania could see a reduction to negative from stable by Moody's and the credit rating may be cut to BBB- from BBB by Fitch, it said.

Only the Czech Republic and Hungary may expect positive actions from the rating companies, Danske Bank said. Fitch may raise the outlook for the Czech Republic to positive, while S&P may raise the ratings a level higher. Hungary may see rating outlooks raised by both S&P and Fitch, the report said. (Bloomberg)

News loc:
http://www.bbj.hu/news/news_24351.html

Greek company takes branch security, automation to Romania, Bulgaria

ATHEN, Greece — Mellon Group has announced it is launching branch security and automation solutions in Bucharest, Romania, and Sofia, Bulgaria. During a conference held Feb. 27-28, Mellon explained to financial institutions and public utilities how innovative branch and office solutions can benefit their industries.
Under the general theme 'The Future of Branches: Customer Friendly & Secure,' presentations focused on challenges FIs and other organizations face in the two countries. Since the European Union accession of Romania and Bulgaria, FIs and others with high transactions are dealing physical security policies and infrastructural challenges, Mellon says.

New EU standards, which took effect Jan. 1, require that certain guidelines be met for physical security and insurance. In case of fire, robbery or another disaster, insurance companies are now only liable for valuables kept in accredited areas (e.g., certified safes, deposit boxes, teller-cash recyclers, fireproof cabinets, vaults, etc).
During the conference companies were provided updates about those regulatory changes.
Workshops also touched on the international financial market’s move toward branch automation. The approach emphasizes self-service that incorporates FI employees to improve branch efficiency and cut operating costs.

Mellon also presented advanced-function solutions, such as self-service bill payment and teller-cash recyclers.

Jews in Romania protest pardon of WWII leader

Two Romanian Jewish organizations on Thursday protested a recent court ruling that cleared the country's wartime pro-Nazi leader, Ion Antonescu of charges of starting a war against the Soviet Union.

"In those times Ion Antonescu was a faithful ally of Hitler, carried on a war which produced great damage to humanity, with the loss of millions and millions of lives," the Federation of Jewish Communities and the Romanian Association of Jewish Victims of the Holocaust said in a statement.

The Appeals Court in Bucharest said in a ruling last month that Romania's attack on the Soviet Union in 1941 was justified as self-defense because the neighboring country had occupied parts of Romania a year earlier.

The court said, however, that Antonescu was guilty of other charges from his original trial in 1946, including war crimes and deporting hundreds of thousands of people to death camps. He was executed that year, along with several Cabinet members.

The Jewish groups fear the ruling could hurt recent efforts by Romania to come to terms with its role in the Holocaust. It "can generate extremist attitudes and actions in our country, with negative effects in the national and international political climate," the statement said.

Antonescu was arrested in 1944 by King Michael, and Romania switched sides until the end of the war in 1945.

Russia has also protested the ruling.

Associated Press, Jerusalem Post

Romania's main opposition party threatens to submit censure motion

Romania's Social Democrats will table a censure motion against the current cabinet unless Prime Minister Calin Popescu-Tariceanu comes before parliament with a reshuffled government within a week, announced Mircea Geoana, leader of the main opposition Social Democratic Party, on Thursday

"The prime minister must appear before parliament immediately and propose a reshuffled government. Otherwise we will explore other ways of forming a competent government," said Geoana, stressing that "the prime minister has one week to do this, before Palm Sunday and Easter."

"If he does not appear before parliament, the opposition's move, which is already prepared, is a censure motion," Geoana said.

"We cannot wait until Easter without an efficient government, able to find solutions to the current crisis," he added.

In Geoana's opinion, "temporary or other solutions are simply superficial."

Local analysts say that Romania is going through a deep political crisis. The opposition Social Democrats are currently trying to impeach President Traian Basescu. The irrational hatred between the governing Liberals and Democrats, as well as the political vendetta between the president and the prime minister, has worsened in recent months to the point that they confront each other publicly.

Source: Xinhua

Romania suspends Nastase trial

BUCHAREST, Romania (Reuters) -- Romania's Supreme Court suspended a corruption trial against former prime minister Adrian Nastase on Thursday after defense lawyers said the case was unconstitutional.

"The court acknowledged the claim of unconstitutionality raised by the defendant's lawyers and decided to send the case to the constitutional court for assessment," a spokesman for the Supreme Court said.

The trial is one of the first prosecuting top-level graft in Romania, which joined the European Union this year, and is regarded as a litmus test of the two-year-old centrist government's ability to combat rampant abuse.

The trial was scheduled to start in January but court sessions have been delayed by the defense's requests. No timeframe was set for a ruling by the constitutional court.

Nastase's lawyers said requests to start inquiries into former ministers should come from parliament and not from prosecutors.

Anti-graft prosecutors have indicted Nastase, 56, with blackmail and taking bribes worth 1.4 million euros ($1.85 million). He headed the Black Sea state's government between 2000 and 2004.

Nastase has denied the charges and said his case was politically motivated.

Nastase's opposition Social Democrats were widely accused of allowing endemic graft to fester, particularly at the top level.

Romania: Tourism to Take a Step Up

Romania’s already strong tourism sector is looking to meet the potential it and others see for it, with massive new investments in the pipeline and new plans for how to manage and promote the sector.

Building on a solid base of cultural attractions and modern facilities, Romania is expected to be the fastest-growing tourism industry in Europe for the next 10 years, according to the World Travel and Tourism Council.

Tourism in Romania is a major contributor to the economy, contributing 4.8% of GDP in 2006, with revenue from the industry estimated at $8bn last year. Figures released in early March showed that just over 6.2m foreign tourists flocked to Romania in 2006, a 7.1% improvement over the previous year, with 520,000 arrivals in December alone.

However, despite predictions the sector will continue to expand by 7.4% annually for the next ten years, there are fears the industry’s very success could be its undoing. Unrestricted development in the Danube Delta and some of the country’s picturesque mountain regions, combined with insufficient services and facilities, threaten to undermine Romania’s appeal, according to some observers.

Romanian Prime Minister Calin Popescu Tariceanu said on March 1 that it was time the tourism industry put its house in order and start dealing with realities rather than abstracts.

I am tired of strategies and plans, I want concrete projects with deadlines and measures, Tariceanu said during a meeting with industry leaders. This is how you should work. You will not be friends with me if you work with strategies. I want to see some concrete results.

The prime minister warned that high prices and unregulated construction work were threatening the appeal of the Danube Delta, one of Romanian’s most popular destinations for both domestic and foreign tourists.

Go to the Delta Danube and see the catastrophe, he said. In this way, the Delta will be transformed into the Tower of Babel. Tourist destinations will look like real monsters.

Romania also risks losing its own holidaymakers to Greece or Turkey unless specific measures for the improvement of services are taken, said Tariceanu.

The prime minister’s concerns were borne out by official figures showing that 692,000 Romanians went overseas in December, one of the country’s peak holiday seasons, a 31% increase on the same month in 2005.

While low cost airlines are already travelling to Bucharest, it appears Romanians, whose incomes are slowly rising, are using them to get out - rather than foreigners hopping aboard to visit the country.

Perhaps ironically, given Tariceanu’s criticism of plans and strategies, the March 1 meeting with industry representatives was called to announce that the government would draft a new master plan for developing Romanian tourism in conjunction with operators and the World Tourism Organisation.

The government has already committed $430m to develop tourism between 2005 and the end of this year, with much of the funding being directed toward the improvement and construction of nature trails, recreational ports and holiday spas.

National Tourism Authority (ANT) President Mihaela Barbuletiu believes the country should be working to attract visitors to the countryside, saying activities like horseback riding and local festivals can be popular for foreigners.

Another who feels Romania needs to act quickly to preserve its natural appeal is Count Tibor Kalnoky, the owner of an estate of traditional 19th century guesthouses in the mountainous area of Transylvania. According to Kalnoky, unrestricted development is not in keeping with the rural feel of the region and is harming the aesthetics of the countryside. The real potential is in the natural assets of the country, said Kalnoky.

For the rest of the world, mass resorts are over. The same thing happened in the 1960s and 1970s in the West and now these buildings are being destroyed, he added.

Romania is already well equipped to deal with a rising tide of tourists, having more than 4000 hotels, pensions and guest houses, and more coming opening all the time.

However, in the rush to capitalise on the tourist boom, Romania must be careful not to destroy the natural attractions of its seaside, mountains and traditions that are the country’s main draw cards.

Oxford Business Group

Bulgaria, Romania open gates for RP exports

THE European Union (EU) has advised the Philippine Government that Filipino exporters may now export to Bulgaria and Romania under the EU's Generalized System of Preferences (GSP scheme) effective January 1, 2007.

Charge d'affaires to the European Union Roger De Backer told the government that since Jan. 1, 2007, Bulgaria and Romania became member-states of the EU. Because of this, beneficiary countries like the Philippines may export to Bulgaria and Romania.

The two new EU members are in addition to the 25 EU members-states, namely, Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and United Kingdom.

The news was relayed to the Philippine Exporters Confederation Inc. (Philexport) by the Bureau of Customs Commissioner Napoleon Morales.

The rules of origin of the EU GSP scheme include administrative cooperation provisions in order to ensure their correct application. On the side of the EU, Article 93(3) of Regulation 2454/93 requires the European Commission to send to beneficiary countries specimen impressions of the stamps used by the customs authorities of the EU Member States for the issue of movement certificates EUR.1.

The movement certificates are used by exporters in the EU, when they send EU originating goods to beneficiary countries for the purposes of bilateral origin under the EU GSP scheme.

Decker also said the United Nations Commission on Trade and Development (Unctad) is amending the certificate of origin to reflect the new membership of the EU, and Note III(b)(4) because Bulgaria now applies the EU scheme instead of its own.

However, this will not happen immediately and a long transitional period will be allowed. In the meantime, beneficiary countries may use their existing forms (irrespective of whether they bear the 2005, 2004 or 1996 notes on the back) for GSP exports to Bulgaria and Romania as well as the 25 other EU member-states.

In the case of Bulgaria, which until the end of 2006 applied its own GSP scheme, it was stressed that the origin criteria to be applied for GSP exports to it since January 1, 2007 are those of the EU's GSP scheme.

Sun Star Manila

Sixth Kosovo-assigned gendarmes contingent leaves Romania

The first 75 staff of the Romania's Gendarmes Detachment assigned to Kosovo attended on Tuesday the ceremony preceding the departure on mission.

The sixth contingent to leave for the Kosovo province is 115- strong, counting 12 officers, 103 warrant officers and non-coms. The next 40 troops will leave for the theater of operations between April 2-4.

The Romanian gendarmes will fulfill a broad array of missions such as: crowd control, escort and protection of MPs and VIPs, guard and defense of objectives, detainee escort, special operations, keeping and restoring public order, cooperation with police forces.

All the five contingents of Romanian gendarmes that participated so far in the stabilization missions in Kosovo have remarkably fulfilled their tasks, for which they were awarded a total of 460 UN "In Service of Peace" medals.

"You were selected to accomplish the hardest and challenging mission. You will be deployed for one year to a hostile, extremely tense and insecure theatre of operations," head of the Romanian Gendarmerie Gen. Costica Silion told the troops assembled in the court of the Inspectorate General of the Romanian Gendarmerie.

The Romanian Gendarmes Detachment is deployed to Peja, located in the south-west of the Kosovo province.

Source: Xinhua


Consultations offer no clear solution to end political crisis in Romania

The consultations held at Cotroceni Presidential Palace between Romanian President Traian Basescu and the leaders of parliamentary parties ended on Tuesday without bringing an agreement to end the political crisis.

The leaders of the governing Democratic Party and of Hungarian Democratic Union of Romania brought into discussion the organization of early elections, while the governing National Liberal Party (PNL) is convinced that President Basescu cannot solve the political crisis.

The opposing Social Democratic Party said the prime minister can solve the issue by eliminating the Democrats from the governance, the opposing Conservative Party demanded President Basescu's resignation, while the opposing Greater Romania Party, who refused the invitation, called the consultations tragic-comic.

"Romania's political difficulties can be solved in the Parliament and Government, not at the Presidential Palace," said the Liberal Vice President Crin Antonescu.

The Liberals went to Cotroceni out of respect for the presidential institution, but expecting nothing, said Antonescu, stressing that the party and the Liberal ministers do not answer for their actions before the president, but before the electorate.

The Democrats believe that the early elections are the solution for the crisis. "Romania crosses an important period. In a democracy, the solution are not backstage maneuvers, but the return to people, the only capable to offer parliamentary majority and a stable government," said the Democrat leader Emil Boc.

UDMR sees two solutions to overcome the present situation: a Government with majority support in the Parliament or early elections. According to the Union's leader Marko Bela, a minority government can lead to a permanent crisis for the next one and a half years remaining until the next elections, which is unacceptable.

"The President came with no solution and he couldn't have offered one as the solution is in the Parliament. As long as there is a premier appointed, the Government's answer resides in the relation with the Parliament," said the PSD leader Mircea Geoana Geoana.

Geoana said the D.A. Alliance (Liberals plus Democrats) should be abolished and the Democrats be eliminated from the governance.

The Conservatives suggested Traian Basescu to resign, stressing that Romania can go back to normality only if the president resigns.

President Basescu invited the leaders of parliamentary parties to a round of consultations in order to find solutions to stabilize the political situation.

Basescu has recently stated that there is no political crisis in Romania, but a more intense public debate.

This round of consultations came two weeks after the previous one when the head of state wanted to hear the opinion of party leaders on the referendum for the introduction of single vote for the legislative elections in 2008.

Local analysts said Romania is going through a deep political crisis. The opposition PSD is currently trying to impeach President Basescu, and the "irrational" hate between the governing Liberals and Democrats and the "political vendetta" between the president and the prime minister has worsened in recent months.

Source: Xinhua

Sex Tourism Involving Underage Youth Flourishing In Bulgaria And Romania- DW

Sex tourism involving underage youth in Black Sea coastal resorts endangered the image of Bulgaria and Romania as tourism destinations, ECPAT organisation against child prostitution representative Astrid Winkler said.

Bulgaria and Romania had to take measures because sex tourism could have negative effect already seen in other countries which neglected it, Winkler said as quoted by Deutsche Welle (DW) Radio.

Thailand was an example of a country that fights sex tourism but fails to defeat the negative image already gained. Experts said that the situation in the Black Sea region will become similar.

Bulgaria lacks official statistics for the number of children ‘working’ at its coast. Children became victims of sexual exploitation at the age of 13 or 14. Some of them were of Roma origin, others were victims of human trafficking, DW said.

Winkler said that the organisation received weak support from Bulgaria’s government.

The resolution of the problem depended on the countries where it existed, but also on the countries where the sex tourists came from, Winkler said.

Romania returns Carpathian castle to former king

Wed Mar 21, 2007 8:17AM EDT

BUCHAREST (Reuters) - Romania returned a picturesque castle in the Carpathian mountains to its former king, who was chased out by the communist regime 60 years ago.

The Peles castle, now hosting a museum and an art collection, has become a popular tourist attraction since opening to the public after the execution of Stalinist dictator Nicolae Ceausescu in 1989.

According to a memorandum signed by the representatives of the former monarch King Michael, the castle will be sold back to Romania if authorities agree to keep it as a museum.

"This is a historical moment, a symbolic one that marks Romania's return to the family of nations who recognize the sacredness of private property ... it backs national reconciliation," Andrew Popper, the king's representative said.

A lawyer for the royal house told Reuters the king will get as much as 30 million euros ($40 million) for the estate, in the mountain resort of Sinaia, but an exact sum will be set at a later date following an official evaluation.

Michael went into exile in Switzerland after the communists forced him to abdicate and stripped him of his citizenship in 1947, shortly after Romania joined the Soviet bloc.

When communism collapsed, he returned and claimed the castle which was built by his great uncle King Carol I and was used by Ceausescu to entertain heads of state and hold lavish shooting parties, sometimes bagging dozens of bears in a single day.

Peles, built by a German architect between 1875 to 1883 in a neo-Renaissance style with turrets and pointed towers, served as a summer residence for the royal house. It is near skiing areas and a 300-year-old monastery in a wooded alpine setting.

Last year, Romania returned a medieval fortress known as "Dracula's Castle" to the former royal family of Habsburg.

For thousands of Romanians who struggle to cut through red tape and complicated legislation to get back their properties seized by the Nazi and communist regimes in the 1940s and 50s, such handovers are a good sign.

Under current law, which was introduced by the two-year-old government, most former owners should win back their original properties, wherever possible, but only a fraction have succeeded so far.

Romania to boost planned domestic debt sales by 50% in 2007

Romania will increase its planned sales of domestic debt this year by 50% as it seeks to raise the proportion of its debt in the local currency.

Romania will sell 12 billion lei ($4.8 billion) in Treasury bills and bonds, compared with the 8 billion lei originally planned, the Finance Ministry said in an e-mailed statement today. It will also hold debt sales more frequently. „The increase to the announced sum reflects growth of the ratio in financing in lei in all borrowing,” the ministry said. This „takes into account the objective of limiting hard currency risks in the public debt portfolio and of developing the local market.” Romania aims to increase spending on infrastructure and social areas to help it catch up to standards in other members of the European Union, which it joined on January 1. The government targets a 2007 budget deficit of 2.8% of GDP, from a deficit of 1.7% of GDP last year.

The International Monetary Fund warned Romania on March 6 that its budget deficit target is underestimated and that the shortfall may reach 3.8% of GDP this year, exceeding the 3% limit stipulated by the EU. Romania last sold domestic debt on March 12, selling 300 million lei in one-year Treasury bills at an average yield of 7.03%. The bid-to-offer ratio was 3.29. The Finance Ministry said it will hold sales of Treasury bills in the second and fourth weeks of each month and will sell Treasury bonds in the first and third weeks. The next sale is April 11. The ministry hasn't announced the details. The ministry also today reiterated plans to sell at least €500 million ($665 million) of bonds abroad this year, the first such sale in almost four years. (Bloomberg)

Top Romanian sculptor dies in Paris

BUCHAREST, Romania: Ovidiu Maitec, one of Romania's top contemporary sculptors who was considered the successor to legendary sculptor Constantin Brancusi, has died. He was 81.

Maitec died on Sunday in a hospital in Paris, where he was being treated for an unspecified illness, the Romanian Academy said in a statement.

The sculptor was one of a few Romanian artists to be able to travel abroad during the communist era and he exhibited in the Venice Biennale contemporary art shows several times, the International Festival of Edinburgh and in Bilbao, Spain.

After communism ended in 1989, Maitec — considered one of the most original contemporary sculptors — exhibited in the Georges Pompidou Center in Paris. His works in metal and wood are displayed in the Tate gallery in London, in Paris, Sydney, Florida, and the German cities of Cologne and Mannheim, said Beatrice Weber, a family friend.

His sculptures included series of gates, wings, birds and columns. Late Romanian-born writer and religious historian Mircea Eliade described him as "the real successor to Brancusi," Romania's best-known artist, Weber said in a statement.

Born in the western city of Arad in 1925, Maitec studied sculpture at the Nicolae Grigorescu Institute of Fine Arts in Bucharest from 1945 to 1950. In the same year, he became one of the founders of the Union of Plastic Artists of Romania and lectured at the institute until 1956.

His debut as a sculptor came in 1953, when he exhibited sculptures inspired by communist art of the time, Socialist Realism.

He was one of a group of Romanian intellectuals who took part in a movement centered around transcendental meditation which led to him being expelled from the Communist Party. "He was an 'official' artist but he was also very talented," said Petru Romosan, an art critic.

He will be buried in Bucharest on Friday. He is survived by his painter wife Sultana Maitec a son, Stefan and a grandson.

Associated Press

Romania's PM decides to be interim FM

Romanian Prime Minister Calin Popescu-Tariceanu on Wednesday decided to be the interim Foreign Minister until the current political crisis, generated by President Traian Basescu's refusal to approve the nomination of Liberal Adrian Cioroianu for this position, is resolved.

The head of the Executive said that Romania needs to be properly represented in the European Union and in relation with other states, and this is not possible because there is no minister at the helm of the Foreign Ministry.

"I strongly believe that the Romanians' future depends on our capacity to grasp the chances Europe offers us, the assistance and structural and cohesion funds EU citizens offer the Romanian people," Tariceanu said, adding that "in order to take advantage of these opportunities, in order to guarantee a better life for all Romanians, we need an active and responsible foreign policy, especially in our relations with the EU."

"In this crucial moment for our evolution, Romania cannot afford not to be duly represented abroad. We therefore need a foreign minister to represent and promote Romania's interests. We need a foreign minister to fight in Brussels and the European capital cities for the 22 million Romanians," underscored Tariceanu.

Tariceanu said that Cioroianu, who was proposed for the Foreign Affairs portfolio, is a good professional with top-level expertise, a man with excellent relations with European officials and a candidate appreciated in Brussels.

The prime minister said that President Basescu did not give any reason for his refusal and has brought Romania's foreign policy in a gridlock.

Former Foreign Minister Mihai-Razvan Ungureanu had been forced to resign by Tariceanu early this February, for not informing the government of two Romanian workers detained by the U.S. forces in Iraq. On February 19, the prime minister nominated Cioroianu as successor, but Basescu refused to accept the nomination.

Source: Xinhua

Romanian Parliament Body Wants President Suspended

A Romanian parliament commission said President Traian Basescu should be suspended over alleged corruption.

Political analysts say efforts to oust Basescu are part of a drive by the Social Democrat Party (PSD) to regain power after it lost a parliamentary election in 2004 following a wave of corruption scandals.

There was no immediate comment from the president's office.

Parliamentary approval of the president's suspension from office would pave the way for a nationwide referendum on his impeachment. No date has yet been set for a vote in parliament.

Opposition politicians had accused Basescu of unconstitutional behaviour and had called for an investigation.

The parliament commission launched an inquiry last month and said results showed Basescu had fomented political instability, used secret services to spy on politicians, pressured the judiciary and protected special interest groups.

"Traian Basescu breached the constitution and is involved in criminal deeds," said Dan Voiculescu, head of the commission and leader of the small Conservative party.

Since winning power in 2004, Basescu has drawn international praise for giving strong support to the centrist government's efforts to fight widespread corruption and for preparing Romania before it entered the European Union at the start of this year.

But he has become embroiled in a clash of personalities with Prime Minister Calin Tariceanu and top opposition politicians, such as Voiculescu.

Opinion polls conducted in the past year have shown about 55 percent of Romanians trust the president, who has also been touted as the most popular politician in the country.

The parliament commission said a date for a vote on Basescu's suspension would be scheduled after a 20-day consultation period with the Constitutional Court.

Romania would then have to hold a national referendum on his impeachment within 30 days.

Observers say Romania could lose its chance to reap quick benefits from EU accession, because bickering among top politicians is taking the focus off reforms.

Reuters

Romanian Woman 'Kidnapped by N.Korea in 1978'

A Romanian woman who went missing in Rome in 1978 was abducted by a North Korean agent and lived in the North for some two decades, the Romanian daily Evenimentul Zilei reported in its March 20 issue. Doina Bumbea was 27 when she went missing.

Missing in Italy

Bumbea was born in the Romanian capital Bucharest in 1950. A talented artist, she married an Italian when she was 21 and went to Italy to study. She worked as a sculptor there. Her family said she came home regularly and phoned them every two weeks. But in October 1978 she disappeared. Her family reported her missing but were unable to track her down. According to the family, an Italian man approached Bumbea right before she went missing with an offer to exhibit in a gallery in Japan.

Married U.S. Army deserter

The possibility that Bumbea fell victim to the North’s bizarre abduction policy was first raised in the 2005 memoirs of Robert Jenkins, who deserted from barracks in the South and defected to North Korea. He later married Japanese abduction victim Hitomi Soga in Pyongyang and left with his wife in 2004, when some Japanese victims were repatriated. In his memoirs, Jenkins recalls that his wife lived with three other foreign women in Pyongyang, one of whom was a Romanian identified as “Doina.” Jenkins says Doina taught North Korean agents foreign languages. On the orders of North Korean authorities, she married U.S. deserter James Joseph Dresnok and died of cancer in 1997 at the age of 47.

Identified from documentary

The identification happened by chance. In 2006, the British filmmaker Daniel Gordon submitted a film entitled "Crossing the Line" to the Sundance Film Festival. It featured Dresnok, who had lived in Pyongyang for 44 years after deserting. In the film, Dresnok says his second wife was from Eastern Europe and introduced their son Gabriel. Watching the film, Bumbea's family were stunned by the close resemblance between Gabriel and the missing woman. Besides, Gabriel was also the name of her younger brother. The brother told a Romanian newspaper his namesake’s eyes, nose and mouth closely resembled his sister’s and guessed she called the child Gabriel because she missed her family.

No response

After Jenkins's memoirs was published in 2005, the Romanian government asked North Korea for an explanation about Bumbea’s abduction, but there has been no response. In February this year, Romanian Prime Minister Calin Popescu Tariceanu met Japanese Prime Minister Shinzo Abe in Japan and asked him how Tokyo handled the abduction issue. Representatives from the National Association for the Rescue of Japanese Kidnapped by North Korea testified in the U.S. Congress last year. They said North Korea abducted at least 523 people from 12 countries around the world since the Korea War broke out in 1950 -- 485 South Koreans, 16 Japanese, four Lebanese, four Malaysians, three French, three Italians, two Chinese, two Dutch, and one each from Thailand, Romania, Singapore and Jordan.

http://english.chosun.com/w21data/html/news/200703/200703220016.html

Romania, Bulgaria push back registry launch

20.03.07

Bulgarian and Romanian companies will not be able to transfer carbon credits under the European emissions trading scheme until late April due to a delay in linking up their national registries, according to officials in both countries.

Romania to Increase Electricity Exports to 18% On Cernavoda

Romania will be in a position to export 18% of its electricity production when the Unit 2 of the nuclear power plant in Cernavoda becomes operational, the Romanian Minister of Economy and Commerce Varujan Vosganian said, according to local media.

The plant is expected to become operational again late April. The last two years, Romania has been exporting up to 10% of its electricity production.

Romania's EU accession will benefit Romanian-Chinese relations: official

Romania's EU accession will be beneficial to Romanian-Chinese relations, Romanian Minister of Economy and Trade Varujan Vosganian said on Monday during a meeting with Chinese ambassador in Bucharest Xu Jian.

The two sides presented the latest economic evolutions of the two countries and analyzed the stage of economic cooperation and bilateral trade, the need to increase the Romanian exports and the boost in mutual investment.

They also spoke about the implementation of projects in road infrastructure and telecommunications fields, according to the Ministry of Economy and Trade.

Vosganian appreciated the ascending trend of bilateral trade with China, the main player in Romania's policy to develop relations with Asia.

The Romanian official expressed Romania's permanent concern to reduce the negative trade balance and recalibrate the trade by promoting Romanian exports on the Chinese market and increase the number of Chinese economic missions expert in buying Romanian products.

In 2006, China was Romania's main commercial partner in Asia, the total value of bilateral exchange reaching 2.47 billion U.S. dollars, according to Romania's official statistics. Romanian imports represented 2.22 billion dollars, while exports accounted for 248 million dollars.

Source: Xinhua

Romania says auto industry to become main economic engine

Auto industry may become one of the most powerful engines for the development of Romania's industry, Romanian Prime Minister Calin Popescu-Tariceanu said on Monday.

He was speaking at a ceremony to open the Renault Design Center in Romania.

He said the project, together with the coming privatization of the local Daewoo automobile factory, enables the country to employ some 100,000 people and boost the development of other industries, such as the spare parts industry and the distribution business.

Tariceanu said the Renault Center at Titu, southern Romania, will employ over 3,000 specialists and voiced hope that this will contribute to stimulating design concerns with other market suppliers.

He also voiced the hope to turn the automotive industry into a principal component of the Romanian economy, saying he hopes the privatization of Daewoo Craiova will materialize, given that the bidders are General Motors and Ford.

"If we manage to make this second project come true, I can guarantee that Romania will indeed become a force to reckon with in this area," said Tariceanu, adding that the automotive industry will offer Romania the foundations for a high and sustainable economic growth in the years to come.

Source: Xinhua

Romania intelligence chief resigns

BUCHAREST, Romania (UPI) -- The director of the Romanian Foreign Intelligence Service has resigned over "doubtful" tapping of telephone conversations.

SIE Director Claudiu Saftoiu's resignation came after his testimony before a parliamentary commission last week, the Serbian news agency Beta reported Monday.

Saftoiu admitted he had approved intercepting phone calls only after receiving a prosecutor's approval, although he needed a judge's approval, Beta said.

The parliamentary commission was probing into allegations by opposition parties condemning President Traian Basescu for illegal activities.

A former journalist and an adviser to Basescu, Saftoiu was appointed director of the

Moldova: What's Behind Harsh Criticism Of Romania?

March 19, 2007 (RFE/RL) -- Statements about Romania by Moldovan officials have recently become increasingly harsh. Officials accuse Romania of trying to undermine Moldova's statehood and security. What underlies this negative turn in Moldovan-Romanian relations?

Recent statements by Moldova's government have made headlines for their caustic tone toward neighboring Romania. President Vladimir Voronin in early March attacked Romania for "financing a fifth column" in Moldova and not respecting Moldovan independence.

The Moldovan government has also criticized the Romanian leadership for "concocting and artificially aggravating" the issue of Moldovan application for Romanian citizenship. Romanian President Traian Basescu recently estimated that the total number of Moldovans seeking to obtain Romanian citizenship could exceed 800,000.

The statement also argued that Romania's refusal to sign a basic political treaty and a border treaty "cannot but be interpreted as a proof of the neighbor state's true intentions."

About the same time, Andrei Stratan, Moldova's minister of foreign affairs and European integration, reversed an earlier decision to open new Romanian consulates in Balti and Cahul.

The additional facilities were meant to ease workload on visa applications for Moldovans looking for work in Romania. Stratan, announcing his decision, said the new buildings were no longer necessary.

For its part, the Romanian government has refused to respond to these accusations, defending their policies as an attempt to re-establish free trade and movement that existed between the states before Romania's accession into the European Union on January 1, 2007.

To some extent, the harsh tone of Moldova's rhetoric toward Romania is an extension of Moldova's general foreign policy. However, the timing of these statements suggests that this is also part of an effort to improve relations with Moscow and the breakaway region of Transdniester.

Ups and Downs

Moldova and Romania have experienced many ups and downs in their relationship since Moldova's independence in 1991. While pan-Romanianism has been a consistent part of Moldovan politics, and was adopted in the Popular Front of Moldova's platform in 1992, it has played only a minor role in Moldovan policy.

The Front's term in office under Prime Minister Mircea Druc was brief, and its successor, the Christian-Democratic People's Party, has only entered government in coalition with the Communist Party.

After calls for unification failed to gain widespread support, relations with Romania cooled considerably. In 1992, Moldova and Romania started negotiations on inter-state political and border treaties. Both treaties were prepared for signing in 2000, but they have yet to be approved by the Romanian government.

One of the low points in bilateral relations came during the 1994 parliamentary elections, when several Moldovan political parties denounced Romania's interference and its assertion that the Moldovan language and culture were Romanian. Romania, in turn, accused the Moldovan government of using the identity question to stifle dissent.

The 2004 elections in Romania began a period of improved relations. The newly elected Romanian president made Moldova his first official trip abroad, and the states found common ground as Moldova set EU integration as the country's main strategic foreign policy goal.

Two States, One Nation?

Romania's official policy toward Moldova is "one nation, two states," based on shared history, language, culture and traditions.

In contrast, Charles King, a professor at Georgetown University, describes Moldovan foreign policy as "Bessarabism."

This policy orientation defines Moldova as "a distinct cultural and political space, a region whose traditions and interests derive both from its position as a small region surrounded by large neighbors and from the overlapping identities of its multiethnic population."

From this perspective, recent statements from Romania about citizenship rules may seem hostile, and the magnitude of citizenship applications claimed by Romanian officials are somewhat embarrassing to the Moldovan government.

In addition, the government has already expressed its concern about the size of its population working abroad -- as many as 1 million Moldovans -- and has encouraged its citizens to stay home. It is understandable that they would be concerned about the easing of citizenship requirements, which would allow easier exit to EU labor markets.

The current government has an incentive to reassert its commitment to an independent Moldova with local elections approaching. Many Moldovans do not support unification, and this is especially salient among Moldova's linguistic minority groups.

The Price of Transdniester

Yet, the harsher tone of Moldovan officials toward Romania started well before these most recent statements. A month before Romania's formal accession to the EU, President Voronin slammed Romania's offer of help in Moldova's EU integration, saying "Romania is trying to impose certain rules of the game and principles of Moldova...this should be qualified as interference in the domestic affairs of a sovereign state."

It is interesting that the December 1 statements from Voronin came only a couple of days after Russia announced that it would end its ban on Moldovan wine. It also fell between the September referendum on independence and the December presidential election in the breakaway region of Transdniester.

In his New Year's address, President Voronin expressed his belief that 2007 will be "the year when the genuine and final reintegration of our motherland will start."

It makes sense that, as part of this strategy, Moldova would increase its efforts to resurrect the inter-state political treaty and border treaty with Romania as a method for allaying the concerns of Eurasianists in Transdniester and the regime's sponsors in Moscow.

As Nicu Popescu, a research fellow at the Center for European Policy Studies, puts it, "[T]he true architect of the foreign policy of Moldova since the declaration of its independence has been neither Mircea Snegur, nor Petru Lucinschi, nor Vladimir Voronin, but [Transdniester President] Igor Smirnov."

The Shorter Long Shot

With EU enlargement put on hold indefinitely, and territorial integrity an important part of Moldova's EU integration strategy, Moldova's cooling of relations with Romania can be interpreted as an attempt to reassure leaders in Tiraspol and Moscow that this administration is not moving closer to Romania.

Reintegration with Transdniester is a long shot, and Russia continues to delay the restoration of economic ties that are essential to Moldova's economy. But criticism of Romanian policy still presents a low-cost method for Moldova to further a number of its political goals.

(Ryan Kennedy is a Ph.D candidate and a Fulbright researcher from Ohio State University who recently returned to the United States after living in Moldova.)

Sunday, March 18, 2007

Romania: PM against Justice minister

16 March 2007

Prime Minister Calin Popescu-Tariceanu stated that Justice minister Monica Macovei has modified the bill on the establishment of the National Integrity Agency (ANI), after it had been discussed by the parties and the government had come to terms over it, ACT Media news agency reports.

The head of the Executive rejected the accusations of the Justice minister, who claimed that the government's Secretariat-general (SGG) has changed particular ordinances after the government had approved them.

The Premier said the government's Secretary-general Radu Stroe is with 'good reason' upset with the Justice minister.'It is not the first time when Monica Macovei makes accusations with no justification.

Work at the Secretariat-general requires high responsibility and except for material mistakes that can occur in the bureaucratic routine, there have never been complaints from ministers about amendments to normative acts,' stated Tariceanu.

The Premier said in this context that Monica Macovei has changed the text of the law on ANI's establishment after the government had mainly agreed on it.

Source: ACT Media News Agency

Romania: 4 new advisers for Basescu

16 March 2007

President Traian Basescu has four new Presidential Advisers, announced Presidential Administration spokesperson Adriana Saftoiu, ACT Media news agency reports.

The head of state signed the decree of appointment of Mihai Stanisoara as Presidential Adviser for Defence and National Security and Sebastian Lazaroiu is to fill in the position of Presidential Adviser with the Department of Planning and Political Analysis.

Cristian Preda will be Presidential Adviser for Education and Research and Bujor Bogdan Teodoriu on Economic Problems.

President Basescu also signed the decree on releasing from presidential adviser's job of Sergiu Medar, following his request on health reasons.

Source: ACT Media News Agency

Romania: EC Vice President to visit Rom

16 March 2007

Vice-President Franco Frattini, European Commissioner responsible for Justice, Freedom and Security, will visit Romania, ACT Media News Agency reports. During his visit, the Vice-President will meet the Romanian President Traian Basescu, Prime Minister Calin Popescu Tariceanu, Minister of Justice Monica Macovei and Minister of Administration and Home Affairs Vasile Blaga.

The European Commissioner will also meet Attorney-General with the High Court of Cassation and Justice Laura Codruta Kovesi, Attorney-General with the National Anti-Corruption Prosecution Directorate Daniel Marius Morar and President of the Chamber of Deputies Bogdan Olteanu.

The high-level EU official will hold a speech at the Conference of Magistracy Schools from Central and Eastern Europe, hosted by the National Institute of Magistracy in Bucharest.

Vice-President Frattini will also attend the Conference on “Romanian economic migration at the outset of the European integration project”, organised by Aspen Institute Romania.

Source: ACT Media News Agency

Romania: Basescu calls for political stability

16 March 2007

Romanian President Traian Basescu has invited the parliamentary parties for talks aimed at finding solutions to stabilize a political stage that has grown increasingly tense between the co-ruling Liberal and Democratic parties, presidential spokeswoman Adriana Saftoiu said, ACT Media news agency reports.

This is the second call for party consultations in as many weeks, after a long time without such a meeting. The party’s discussed the referendum for the open-party ballot, which the president agreed to give up until the European Parliament elections, which were scheduled to take place May 13.

Prime Minister Calin Popescu Tariceanu has since postponed the date of the EP elections until the second half of the year, without the consent of the co-ruling Democratic Party (PD), further deepening the political crisis, especially within the ruling alliance.

Discussions will also focus on the future evolution of the open-party ballot and speeding up institutional reform, as well as other issues the parties might introduce, Saftoiu said.

Liberal Party vice president Ludovic Orban said he is skeptical of the president’s initiative, however he said he is open to a dialog that would improve the political climate.

The postponement of the EP elections resulted in widening the gap between the Liberal Party (PNL), headed by Tariceanu, and PD as Liberals requested the resignations of Democrat Minister Vasile Blaga and independent Minister Monica Macovei for defying the prime minister.

Source: ACT Media News Agency

Romanian co's promote to US markets

16 March 2007

According to a release of the Ministry of Economy and Trade (MEC), nine Romanian companies operating in the housewares sector promoted their productsto the North-American market on the occasion of an economic mission organized between March 9-15 in Chicago (USA), by the Foreign Trade Department, ACT Media news agency reports.

The Romanian companies participated on the same occasion in the 'International Home and Housewares Show,' one of the world's largest events featuring home goods.

The Romanian companies met also with representatives of 30 local companies at the economic forum 'Business opportunities in Romania, as a new EU entrant state,' as well as with representatives of local companies from the sectors of constructions, homewares, furniture, finance-banks, investments.

The meetings were aimed at promoting bilateral trade and attracting American investments in the Romanian real estate-residential sector, commerce, industry, tourism and environment protection.

On the occasion of this economic mission, UGIR 1903 and the International Trade Club of Chicago signed a Partnership Agreement under which the two sides pledged to join forces for the organization of economic missions, seminars, conferences, the participation in fairs and exhibitions held in the two countries.

The participants in the economic mission in Chicago also identified business opportunities, like for instance a major American company interested in the project for the upgrading of the local airport in Tulcea (eastern Romania), a potential partnership for the manufacturing in Romania of lightweight eco-friendly walls, investments in real estate and the promotion of the Romanian tourism offer in the USA.

Source: ACT Media News Agency

Romania: Investment law needs transparency and clarity

16 March 2007

Romania’s economy has shown significant growth in recent years, mainly because EU accession and the approach to it has led to much greater confidence among investors, who are looking for stability and the assurance that the government is committed to principles of a functioning market economy, based on transparency and the rule of law, ACT Media news agency reports.


However, in spite of the positive economic situation, the investment climate cannot be helped by the fact that the new Investment Law, which was supposed to take effect from 1 January 2007, has not yet been passed by Parliament, even though the previous law automatically expired at the end of 2006.

As Patrick Leonard, Tax Partner at KPMG Romania explains, “in spite of this legislative uncertainty, investment does not appear to have diminished significantly. However, the reasons for this are difficult to determine.

It is quite likely to be simply a reflection of greater confidence being shown in the market thanks to EU Accession, meaning that the increase in investment has been despite the lack of a coherent system of investment incentives, rather than because of it.

Conceivably the level of inward investment would have been even greater if such incentives had existed.

Source: ACT Media News Agency

Romania: Investments of 300 mil euros in free trade zones

16 March 2007

The investments in Romania's free trade zones are assessed this year at 300 million euros, therefore representatives of the administrations of these areas say they will have to increase the area bound for leasing, following the rising demand, ACT Media news agency reports.


The customs facilities and the leasing tariffs prompt the development of a business in the six free areas of Romania - Curtici-Arad (western Romania), Giurgiu (south), Constanta (Black Sea coast), Braila (eastern country), Galati (east) and Sulina (east) - where around 600 companies run at present.

Most are companies activating in the field of trade, bakery, industrial production and auto industry. Renowned companies - such as Autorom, Lafarge, Flamingo Computers or Toyota Romania - did not waste the opportunity to set up production or distribution centres.

In the Braila Free Zone there are 60 entrepreneurs are operating. Galmopan company in Galati, one of the biggest bakery companies in Moldova will start in April the production in the new biscuit plant, situated in the Braila Free Zone, investments appraised at almost 3 million euros.

The draft law stipulates the construction of a milling and bakery complex, Capital magazine reports in its latest issue. Gabriel Biris, partner at consulting company Biris-Goran says that the free zones are important especially for the companies which run import-export activities with neighbouring countries, which are not EU members, such as Ukraine for instance.

Radu Petrescu, general manager of Braila Free Zone, says that a lost of people make investments in this area in order to benefit from state aid for the companies that run businesses in free zones: 65 percent for the investments carried out by small and medium-sized enterprises (SMEs) and 50 for big-sized enterprises.

In this area, it is estimated all the land available will be leased out by the end of the year. Bioromoil company will invest 10 million euros in a biodiesel plant. Romania's biggest container terminal is most likely to be carried out this year.

The works at the industrial park in which there where invested 6 million euros are scheduled to finalise. In Giurgiu, an Austrian company leased 6 ha in view to set up a biodiesel plant.

The investment amounts to some 87 million euros, said Camelia Toma, commercial manager of the Giurgiu Free Trade Zone. In the Constanta Free Trade Zone, two British companies are to set up a grain silo each. The investment in the construction of one silo is of about 20 million euros

Source: ACT Media News Agency

Romania: Proprietatea and Nat'l Development Funds may worsen budgetary deficit

16 March 2007

IMF experts believe that the Proprietatea Fund and the National Development Fund could contribute to the worsening of Romania's budgetary deficit in 2007, ACT Media news agency reports.


IMF says in its report concluded during the visit in Romania that the budgetary deficit could reach 3.7 percent of GDP, above the 2.8 percent level announced by the Romanian authorities.

'Although the fiscal sustainability does not represent an immediate concern and could determine the authorities to postpone major decisions, a fiscal obstacle is needed to stop the excessive demand,' the report mentions. The IMF report shows that the wage increase scheduled for this year comes in conflict with the National Bank's inflation goals.

IMF also warns upon the expansion of crediting in Romania, which might increase the vulnerability on medium term.

The worsening of the current account deficit, the increase in price at consumer goods over BNR's limit and the delay in consolidating macroeconomic policies could make investors withdraw their capitals from Romania, which could put pressure on the exchange rate, the IMF experts said.

The Fund believes that Romania's economic development in 2006 was triggered by a series of factors that might not necessarily repeat in 2007. Therefore, Romania must take all measures to reduce the gaps separating it from the European Union.

IMF appreciates the privatization of the Romanian Commercial Bank (BCR) but reminds that the sale of House of Savings CEC was postponed.

The public services, especially the health and education systems, are frequently criticized. The labour market stays rigid, while the reform of the justice system, although progressing in conformity with the EU regulations, did not bring an effective implementation of norms.

To reach the EU living standards, Romania must attract more investment, make efficient the governmental expenses and focus on generating new jobs, the IMF shows.

Source: ACT Media News Agency

Romania: Referendum law initiative unfavourable to the President

16 March 2007

A group of ten MPs from PNL, PSD, PC and PRM filed a new project of modification of the referendum law which limits the right of the President to establish through decree the date of a referendum, Nine o' Clock reports.
Moreover, according to this initiative, the President cannot call a referendum, if the procedure of Constitution’s revision or of suspension of the head of the state is initiated. If President starts however a procedure to consult the population, such procedure is null, the initiative reads.

While, according to the current law, a referendum is valid if at least half plus one of the total voters come to the ballot, the project of the ten proposes only for the revision of the Constitution the obligation of certain participation to vote, but only 30 per cent of the citizens recorded on the electoral lists.

The new project reads that the President is discharged with the majority of the expressed votes, at the level of the country, of the citizens who take part to the referendum. A novelty is the fact that the date of the referendum is not established by the President through decree, being established by the Government, after Parliament adopts with the majority of the Senators and Deputies, a decision through which they express their point of view.

The head of the state consults first the Parliament, through a message in which he specifies the problem of national interest that will make the object of the referendum.

The new project brings modifications to all the types of referendum, but the most important are for the revision of Constitution and the discharging of President. For the time being, Parliament tried to modify only the regulations for the dismissal of President, with a view to simplifying them, but the Constitutional Court did not approve them.

The Court rejected as unconstitutional also the provision which would forbid the President to call a referendum simultaneously with, or six months prior to any elections, and that which would have allowed discharging with fewer votes the President elected in the second round.

The law in effect stipulates that the head of the state is dismissed with at least half plus one of the total number of voters. Gheorghe Funar (PRM), Norica Nicolai (PNL), Gavrila Vasilescu (PC), Florin Iordache (PSD), Eugen Nicolicea (PSD0, Antonie Iorgovan (PSD) are among the signatories of the legislative project.

Reporter.gr

Romania: ANAF accuses Loteria Romana of cashing undue income

14 March 2007
A control made by the National Fiscal Administration Agency (ANAF) shows that the members of Loteria Romana management cashed undue income during 2003-2005, Nine o' clock reports.

According to ANAF, the amounts cashed by the members of the General Assembly of the Shareholders totaled ROL 1.25 bln, representing the participation of the employees to the profit of the Lottery, without being employees. The members of the Board and the auditors also received illegally from the fund of participation of the employees to the profit amounts of ROL 1 bln and respectively ROL 100 M, although not being employees.

Loteria Romana Manager cashed ROL 7.59 bln from bonuses, and ROL 4.2 bln from the quota to the fund of participation of the employees to the profit of the company, reads a press release issued by ANAF.

General Manager at that time was Nicolae Cristea, charged with tax evasion. The anticorruption prosecutors started at the beginning of the last year the criminal pursuit of Cristea, Georghe Copos, at that time Vice-Premier, and a shareholder of the company Ana Electronic, Gilio Giuseppe Rosa, investigated for economic offences connected with the trading of some spaces between the firm Ana Electronic and Loteria.

Reporter.gr

Saturday, March 17, 2007

East Coast Artists in "Waxing West," a Surreal Journey Between Romania and NY

By Koen Machielse

From April 5 to April 22, La Mama E.T.C. will present East Coast Artists (Richard Schechner, Founder and Artistic Director) in the New York premiere of "Waxing West" by Saviana Stanescu, a new play by a prominent new-wave Romanian playwright that explores the tragic-comic journeys of her compatriots caught up in the cultural and economic dislocations of post-Iron Curtain Eastern Europe.

In "Waxing West," Romanian cosmetologist Daniela Popescu arrives in the United States as the soon-to-be bride of the sexually repressed computer engineer, Charlie Aronson. As Daniela seeks to adjust to her new life with Charlie in the land of dreams, Nicolae and Elena Ceausescu-formerly Dictator-and-Wife of Romania, but now vampires-haunt her, making her life miserable. This comic yet socially and politically relevant drama journeys between Romania and New York, between past and present, between "the American Dream" and the American nightmare. Will Daniela be able to escape the ghosts of her past to move on?

"Waxing West" offers a remarkable glimpse into the surreal world of contemporary culture. Daniela-culturally, sexually, and personally disoriented; seemingly displaced within a confused landscape of dreams and nightmares-embodies the destabilization of self prevalent in today's fluid society, with its porous political borders, and where physical space collapses to be replaced by the virtual.

In "Waxing West," Stanescu parallels Daniela's story with Romania's struggle to find itself in the wreckage of freedom it seized through the bringing down Communism. Both Daniela and Romania are lost amid contradictory ideals of progress. However far Daniela and Romania attempt to advance, Stanescu reminds us that the specter of Ceausescu's regime, personified by the return of Mr. and Mrs. Ceausescu as vampires, haunts the unconscious memory as an indelible feature/phantom of the collective mind, sucking the living marrow out.

On a personal level, the age-old conventions of boy-meets-girl are subverted into a witty and funny parable of dislocation. It ends in a surreal recitative, blending images of the fall of Ceausescu with the fall of the Twin Towers in 2001. Individuals' lives are always affected by unexpected collective traumas. No longer teased between New York and Bucharest, finally connected with Charlie on a deeper level, Daniela is painfully braided into the bad-hair-roots of the American Dream.

Saviana Stanescu is an award-winning playwright with Macedonian-Albanian grandparents, who draws on her own tangled roots in the Eastern European experience to fashion a witty and incisive commentary on one segment of the Romanian diaspora. She is arguably the most prominent playwright to have emerged in Romania after 1989. Her plays have been presented in the United States, Great Britain, France, Austria, Hungary, Macedonia, Montenegro, Switzerland and, of course, Romania. AHer short play "Aurolac Blues," performed at HERE Arts Center in New York, was published in the anthology "Plays and Playwrights 2006." Two of her monologues have been published in the Playwrights' Center's "Monologues for Women." Stanescu won the Antoine Vitez Award for her play "Final Countdown," (translated and published in France) and also won the Best Romanian Play of the Year UNITER Award in 2000. She is a TCG fellow with the Lark Play Development Center, where "Waxing West" had a barebones production two years ago. She is also a NYSCA playwright-in-residence with Women's Project. Over five years, Stanescu has served as Playwright-in-Residence of East Coast Artists.

From its inception, East Coast Artists (http://eastcoastartists.org/) has been committed to the development and presentation of works that explore and illuminate an intercultural and global perspective. With ECA Founder and Artistic Director Richard Schechner, Stanescu developed "YokastaS," an outstanding production that was lauded by The New York Times and Backstage among others. She is also collaborating with novelist Paul Auster on a dramatization of his critically acclaimed novel, "Timbuktu," tentatively scheduled for performance in 2008.

While "Waxing West" has had numerous workshops around the country (the New York Theatre Workshop, The Women's Project, the Lark Play Development Center, Travelling Jewish Theatre and the Playwright's Foundation), the current East Coast Artists production at La MaMa E.T.C. marks the professional debut of this important work in the United States. John Clinton Eisner, the producing artistic director of the Lark center, has written, "Ms. Stanescu's world is wonderfully absurd, profound, human, and hilarious, all at the same time; she writes with awe-inspiring style, wit and poetry. . .The play mixes genres, combining dark absurdism in the vein of Beckett and Eugene Ionesco..."Waxing West" is both thought-provoking and hysterically funny, with wide audience appeal."

"Waxing West" is also supported by the Romanian Culture Institute-New York through its New Drama Program. Thanks to the generous support of the Trust for Mutual Understanding, the play will be presented in June in Romania as part of the Sibiu International Theater Festival which has been designated as "Europe's Capital of Culture" for 2007.

Director Benjamin Mosse has directed more than 35 plays around the country. He has served as artistic director of the Yale Cabaret, producing 21 shows during his tenure. He was also founding artistic director of the noted Cincinnati ensemble troupe, the IF Theater Collective, whose "Burn This" was honored for outstanding production and direction in 2001. He works with Richard Schechner in New York as associate artistic director of East Coast Artists, where he develops new international plays, including last year's La MaMa New York premiere of Manjula Padmanabhan's "Harvest."

He has assisted David Esbjornson, Mark Lamos, Doug Hughes, Michael Wilson, Richard Schechner and John Tillinger at such theatres as The Public Theatre/ Shakespeare in Central Park, New York Theatre Workshop, Yale Repertory, Hartford Stage, the Guthrie Theater and Williamstown Theatre Festival. He was a member of the Lincoln Center Directors Lab, and has attended workshops by Tadashi Suzuki, Robert Lepage, Double Edge, Gardzienice, Elizabeth LeCompte, among others. He received his BS from Northwestern University, MA in Performance Studies from NYU and MFA in Directing from Yale School of Drama.

The actors are Elizabeth Atkeson, Jason Lawergren, Kathryn Kates, Alexis McGuinness, Tony Naumovsky, Grant Neale, Dan Shaked, Marnye Young. Stage Manager is Adam Ganderson. Scenic Design is by Kanae Heike. Costume Design is by Alixandra Gage. Sound Design is by Sharath Patel. Composition is by Lucian Ban.

Performances are April 5 to April 22, 2007 at La MaMa E.T.C. (First Floor Theater), 74A East Fourth Street, Manhattan. Performances are Thursdays through Saturdays at 8 p.m. and Sundays at 2:30 and 8 p.m. Ticket prices are $18 for general admission, students and seniors pay $13. The box office number is (212) 475-7710 and online ticketing is available at www.lamama.org.

Romania : Tarnava to open 2 new stores in Bucharest

Tarnava Company, producer of textile clothing, based in Sighisoara city, in Mures County, Romania, estimates a turnover of 4.8 million-euros in the current financial year up 3.7 percent from last year.

Export accounts for around 80 percent of Tarnava's total turnover. The company opened new stores in Cluj-Napoca, Targu-Mures, Brasov, Sibiu, Bistrita, Alba-Iulia and another store in Stuttgart, Germany.

In 2006 Tarnava Company invested to purchase new embroidery machines to increase production capacity. In 2007, the company plans to expand with the opening of two new stores in Buchares

Romania made progress in sphere of security: EU Justice Minister

Bucharest. Considering the security on external border, Romania has achieved very good results, EU Justice Commissioner Franco Frattini said cited by Rompres. Frattini met on Friday in Bucharest with the Justice Minister Monika Macovei and the Interior Minister Vasile Blaga. Frattini also met with the Chief Prosecutor Laura Codruta Kovesi and with Dan Morar, a prosecutor at the National Anti-corruption Directorate. The EU Commissioner welcomed Romania’s decision to join the Prum Convention.

“I pointed to the importance of the leading role, which Romania could play in the Western Balkans and in the defense of the Black Sea. I am pleased to point to the firm action of Vasile Blaga in this respect”, Frattini said.

Focus News Agency

Romania to condemn communist past

BUCHAREST -- More than 500 intellectuals urged Parliament on Saturday to investigate communist-era repression in Romania.

In an open letter, some 550 Romanian intellectuals called for action in following a report's recommendations that the country condemn its communist past.

President Traian Basescu, who has said Romania's communist era was "criminal and illegitimate," commissioned the report. It was presented to Parliament in December and implicated journalists, writers and politicians, including former President Ion Iliescu, to have allegedly contributed to the former communist regime.

Communism ended in December 1989 in Romania, but members of the former communist elite still hold top positions in politics, business and the media.

"In Romania the collapse of the communist dictatorship led to over 1,100 deaths and 3,300 people injured," the intellectuals said in the letter. "Among those being investigated and held responsible for this massacre are public and political personalities, some of whom are present in Romania's parliament."

Those who signed the letter included Ion Caramitru, a former Culture Minister who now runs the National Theater and was a key revolutionary.

The letter also called for an investigation into who was responsible for the repression of two workers revolts during the end of late dictator Nicolae Ceausescu's rule, and of miners' rampages in 1990 and 1999 in which several people died.

B92 News

Down with bureaucracy!

Seventeen years after the end of communism, Romanian bloggers say, the country is still snarled in unnecessary red tape.

By Paul Ciocoiu for Southeast European Times in Bucharest – 16/03/07

During the communist regime, long queues were common in Romania as food was subject to "rationalisation". But while shortages of basic goods may be a thing of the past, bureaucracy isn't. Compared to the rest of Europe, Romanians still encounter more than their fair share of red tape, hassles and delays.

"The advantages of reducing bureaucracy, unfortunately, are not on the public agenda," writes Maxim at the business ethics blog zi de zi. As a result, he suggests, Romania is losing out on a wealth of benefits -- higher productivity, fewer traffic snarls, less pollution, as well as reduced administrative expenses and taxes.

Allowing driver license renewals by mail, for example, would help eliminate long queues. "Fill in the form, post the picture and send the envelope to the police headquarters and after a few weeks get the new driving license at home while you're still at work? Science fiction? No. This is what happens all over the civilised world, in England and even in Italy. But in Romania…" Maxim sighs.

The word bureaucracy is practically synonymous with Romania, agrees Straight. "Bored, irritated clerks who do nothing else but make things harder for the tax payers ... It looks like, unfortunately, we haven't yet developed the cult of precious time. But in a democratic, modern society, as we intend to be -- and we will become so, like it or not, as part of the EU -- effectiveness is a second nature."

"Say no more!" Visatoru' chimes in. "Let me tell you something about the passport service -- namely, I woke up at 5 am to stand in line and the office closed right before my turn came? Thousands of complaints filed by the citizens have been overtly ignored. It's high time we went beyond this flawed pattern inherited from the communists and show we can freely move outside these administrative barriers which relate mostly to mentality."

Anya, however, brings a note of optimism to the discussion. "I for one think that things have evolved. We can now pay bills online or via ATMs. It's a small step, but a beginning. I think things will change, as much has changed, in general, in Romania."

"It's our role, as young people, to make things move on. We can't rely on politicians anymore; we've known that for 17 years now. We, those who chose to stay here, and those about to return home from abroad, will bring a new spirit and remove in time all these expired and counterproductive practices," she predicts.

Friday, March 16, 2007

Competition Intensifying in the Romanian Telecoms Market

Source: BUSINESS WIRE
Date: March 16, 2007

DUBLIN, Ireland--(BUSINESS WIRE)--Research and Markets has announced the addition of Romania Country Outlook January 2007 Edition to their offering. In the fixed market, competition is intensifying, with Romtelecom significantly decreasing prices of DSL services and competing head-on with the cable carriers, resulting in strong broadband growth. Competition in the fixed line telephony segment is also intensifying, with alternative operators taking share away from Romtelecom and prices declining.

Double and triple play packages are increasingly used to attract and retain customers. Coverage is also increasing as incomes increase and a higher portion of the population can afford telecommunications services. Competition is also rising in the mobile market; Cosmorom achieved significant growth in 2006 following its rebranding and positioning; it increased its share from 0.4 to 6.2 percent between YE2005 and YE2006. Market leaders Vodafone and Orange are implementing strategies to retain their market share; for instance, Vodafone launched HSDPA services in 2006. Two new 3G licenses were also sold, one to Telemobile and the other to fixed line carrier RCS&RDS. Investment is also growing in WiMAX.

The Economist and the Financial Times continue their promotion campaign for Romania

Source: MIE
Date: March 16, 2007

On Friday 16 March, the Economist and the Financial Times published a new series of articles aimed at promoting Romania to the international business environment, within the framework of the campaign initiated together with the Ministry of European Integration. The second series of articles, published today, present Romania's development priorities for the period 2007-2013: transport, environment, human resources, administrative capacity, economic competitiveness, regional development and the opportunities the foreign investors have.

The articles also present the financial allocations destined for Romania for the same period. The next series of articles will be published on 6 April in the Economist and on 10 April in the Financial Times. The Economist and the Financial Times, with the support of the Ministry of European Integration and with private financing, carried out an information campaign at European level, whose aim is to assist foreign investors identify business opportunities offered by Romania, in its capacity of EU Member State with full rights.

The campaign takes place during the period March-April and consists of the publication of information articles on our country's progress in EU accession preparation period and the opportunities to invest in Romania. The campaign also includes a series of editorials of the top companies in Romania. The Ministry of European Integration provides the information needed to draw up the materials to appear in the two publications. After the end of the campaign, The Economist and the Financial Times will draw up a market study to measure the level of influence over the readers' opinion and the image benefits for the participants in the project.

Ex-bank official wanted by French authorities arrested in Romania

Friday, March 16, 2007

BUCHAREST, Romania: Police have arrested a former banking official in Romania who is wanted in France on charges of money laundering and a failed plot to kill a Swiss citizen.

Sever Muresan, who was deputy director of a now collapsed Romanian bank, was detained Thursday by detectives and officers from the Romanian branch of Interpol, according to a police statement released Friday.

Muresan, a former tennis pro, played on Romania's Davis Cup team in the 1970s.

A court in Lille, France, issued a warrant for Muresan's arrest in January. A European arrest warrant issued in February included charges of organized money laundering, blackmail and making false statements on French territory, the police statement said.

Muresan, 59, is also wanted by the French court on charges of being part of a group that was plotting to kill one of his former associates, a Swiss financier, the statement said.

A court ordered Muresan held without bail for 29 days pending extradition proceedings.

Muresan's lawyer, Gheorghe Diaconescu, said his client was innocent of all the charges and was being framed by his former Swiss associate.

Muresan was the former vice president of the now bankrupt Dacia Felix bank. In 1997 he was accused with other former officials of siphoning millions of dollars from the bank for business ventures in western Europe. He was sentenced by a Swiss court in 2000 to three years in prison on that charge.

Muresan also owned Romania's annual ATP tennis open tournament in Bucharest until 1996, when it was taken over by other promoters.

Business: IKEA to open its first store in Romania

The popular Swedish furniture retailer IKEA will open a new location in Bucharest on March 21st, the company said in a press release. The store will cover 26,000 square metres and initially offer 7,000 furniture articles and accessories. The total investment is 25m euros. Ikea says it expects approximately 2.5 million visitors during the store's first year in business.

“The EU is an enterprise where all of us are shareholders”

Judit Járadi - Budapest - 18.11.2005

In an interview with café babel, Hungarian MEP István Szent-Iványi reflects on the attitudes of Hungarians towards the EU accession of their neighbours, Romania and Bulgaria.

Since May 2004, Hungary has gone from being an EU hopeful to one of the ‘in-crowd’, speculating on the accession of more countries to the EU club. István Szent-Iványi, previously Undersecretary for the Hungarian Ministry of Foreign Affairs, believes that Hungarians have nothing to fear from the accession of Romania and Bulgaria.


What fears do ordinary Hungarians have regarding the up-coming enlargement of the EU?
In my opinion, Hungarian society as a whole is not afraid of the accession of Romania and Bulgaria. It is natural that there are some concerns, for example, people are worried about cheap Romanian workers coming in. What makes the question more difficult is that for historical reasons [namely the annexation of Transylvania from Hungary to Romania in 1920], Hungarians have reservations about Romania. However, for Hungary, it is not only of political but also economic interest that Romania joins the European Union. Not just for Hungarian multinationals investing capital in Romania, but also for the hundreds of small and medium-sized enterprises that have managed to work out stable cooperation agreements with Romanian partners. Beyond these economic advantages, Romanian membership will also bring the possibility to launch common infrastructural investments and regional projects.

And on a political level, what concerns are there?
There is concern over the allocation of EU funds, since the more members the EU has, the less member states have to settle for. It seems that the big member states have become more and more tight-fisted and they want to freeze their contribution to the EU budget at 1% of the EU’s Gross National Income. People have had enough of this horse-market EU. Those haggling over small amounts have entirely forgotten about their common goal: to increase the competitiveness of the Community. The EU should be looked at as an enterprise, where all of us are shareholders. Obviously, the interest of the shareholders is the success of the enterprise as a whole.

Do you think that Romania and Bulgaria are ready to join the EU?
Politicians tend to react to the fears of the public, which is why derogations have been made to the EU accession treaties that could postpone the entry of Romania and Bulgaria to 2008. It is important to note that postponing the date of accession would not be because of the level of preparedness of the two acceding countries, but could rather be evaluated as a reaction to the recent problems of the European Union; in other words, a gesture to the public. As a whole, I would not deem the postponement of Romania and Bulgaria joining the EU as a tragedy. It is a fact that it would cause a loss of prestige for them but, strictly speaking, accession in 2007 would be financially disadvantageous for Romania: it gains much more money from the Pre-accession Funds than it would from EU coffers after joining.

Will the accession of Romania and Bulgaria give the EU member states that joined last May more weighting?
The last one and a half years have shown that new member states can only get their way if they manage to win over at least one old member state to their cause. In the European Parliament, even if the ten new member states vote together, the aggregate number of their votes is still not enough to sway a decision alone. Should Romania and Bulgaria vote with the other new member states, it would still not be sufficient for a majority. At the same time, it is obvious that when Romania and Bulgaria join the EU, the weight of middle-sized countries (8-20 million inhabitants) will grow. Nevertheless, although the ten new member states share common interests, they do not necessarily act together in any case.

Rich Christian populist woos Romanians

news.bbc.co.uk | Friday, 16 March 2007

By Oana Lungescu
European Affairs correspondent, Bucharest

Less than three months after Romania joined the EU, the country is in deep political crisis, with the president and prime minister accusing each other of lying and corruption.

Meanwhile, a third man is climbing in the polls. He is Gigi Becali, the multi-millionaire boss of the champion Steaua football club.

From humble beginnings as a shepherd, Mr Becali made his fortune in real estate after the fall of communism to become one of Romania's richest men and the second most popular politician after the president himself.

His New Generation Party (PNG) headquarters is as flamboyant as the man - a palace in Bucharest being polished back to its former glory with no expense spared.

Restorers carefully apply gold leaf to every moulding, while Gigi Becali, a dark-haired man in his late forties, looks on whistling O Sole Mio.

In Berlusconi's footsteps

His soulmate among European politicians is Silvio Berlusconi. Like the former Italian prime minister, Mr Becali wants to use football and money to get to the top. But he is also a devout Orthodox Christian.

I met him on his return from Mount Athos, the holiest site in Eastern Orthodoxy. He often goes there in a private jet to pray before key matches.

His office looks more like a shrine, with Byzantine icons on every wall, a life-size painting of himself as St John in the desert and on his desk a statuette of his namesake St George killing the dragon.

"I too want to kill the devil in Romania, the corruption and lies," he tells me, with an eye on the huge TV screen in the corner to check how often his own face pops up on the news channel.

So how does he explain his spectacular rise from shepherd to multi-millionaire politician?

"In the Byzantine Empire, the great kings were shepherds. And if you want me to quote the Bible, Jesus didn't say I am your captain or your driver, but I am your shepherd. So in Romanian politics, I see myself as an apostle because I'm trying to do something no one has tried before", he said.

"Now that Europe has been reunited, I also want to see a spiritual reunification of Europe, I want western Christian-democracy to be enriched by Eastern Orthodoxy. If we don't counter sin with faith, then the end of the world is nigh," Mr Becali says.

Fan base

This messianic tone goes down well in a country where the Orthodox Church is the most trusted institution. Football too enjoys cult status.

At a match in the Black Sea port of Constanta, I saw Steaua fans furiously chanting and waving their red and blue banners.

Some even had flags that looked suspiciously like iron crosses. Notorious for their violence and their racist taunts against Hungarian, Roma or black players, they are a force to be reckoned with, on the pitch and at the polls.

"Gigi would make Romania a cleaner and fairer country, because he has faith in God and he wants to clean out the mafia," one young man said. "He helps poor people, he understands their difficulties, while other politicians do nothing," said another.

Help for poor

For leading political analyst Alina Mungiu-Pippidi, Mr Becali "satisfies an important need in the voters right now - the need to denounce the whole corruption of the political system".

"He managed to create an image for himself of a person who not just speaks differently from the rest of the political class, but also is different. He's a man of his word, he is a provider, he delivers what he says he does," Alina Mungiu-Pippidi says.

The proof can be seen in a village in eastern Romania called Vadu-Rosca. It is now known as Becali's village.

The houses here were swept away by catastrophic floods two years ago. Then came Mr Becali in his trademark Maybach limousine and promised to build them all up again. And so he did.

Eleonora Lazar showed me into one of 200 identical small white bungalows, all built by Mr Becali. A widow with three children, she told me she had more faith in the football boss than in the government.

"He's so generous, he deserves to become president," she says. "Why should we elect someone who didn't even bother about us? We pray for him every day, for his health and so people should stop accusing him of all sorts of things. He's never done anything bad," Mrs Lazar told me.

Mr Becali has fought off accusations of tax evasion and dodgy deals. He equally rejects any charges of extremism and intolerance.

Anti-gay stance

But what about an offer he made last year to give a few million dollars to anyone who would root out homosexuality in Romania? Amid the faint smell of incense that pervades his office and with three bodyguards looking on, he got visibly angry.

"I love homosexuals like everyone else. I have nothing against them. But I insist, it's a sin. And I will repeat it everywhere, including in the European Parliament, because I'm not afraid of any European policy or whatever, homosexuality is a sin, and that's that!" he shouted.

If he is elected, I asked him, what are the first three things he plans to do?

"I will ask God to give me wisdom," came the answer after a pause. "He will tell me, this is the first thing you should do, this is the second, and this is the third. I can't tell you now what God will tell me then."

Mr Becali's parting words were just as striking. "We'll see," he told me with a smile, "if you are on the side of God or on that of the devil."

In one of Europe's poorest countries, his voice is unashamedly anti-liberal, promising some sort of salvation to those angered and frustrated with conventional party politics.

Political turmoil

Mr Becali's party is gaining ground on the more established Greater Romania Party, which recently caused a stir in the European Parliament by helping to form a new ultra-nationalist group.

Polls credit PNG's list headed by Gigi Becali with 10-15% of the vote, which could see it wining four to six seats of the 35 allotted to Romania in the European Parliament.

But as Alina Mungiu-Pippidi explains, it is not just happening in Romania. "People like Becali and others in Central Europe, where everywhere radical populism is on the rise, are the product of a certain failure in our political transition," she says.

"Our transitions were very successful economically, they succeeded in bringing our countries into the EU, but didn't succeed in creating normal politics. If Becali fails, it's going to be somebody else. The problem is that normal politics don't manage to deliver as they should," Mrs Mungiu-Pippidi says.

If he fails, Mr Becali told me he would buy a few thousand sheep, make cheese and stop answering journalists' questions.

But many fear his flock will be the stray sheep of Romania's long transition to democracy

EU Members Urged to Reinforce Budgets

By Raf Casert
Posted 07 March 2007

The European Union's monetary chief on Wednesday urged the 27 member countries to use the current economic upturn, Europe's fastest growth spurt since 2000, to reinforce their budgets instead of going on a spending spree.

After EU Economic and Monetary Affairs Commissioner Joaquin Almunia lauded national efforts to balance budgets, he warned continued high overall debt and the growing cost of rapidly aging societies would require continued fiscal rigor for years to come.

"We must create now, during this year and the next years of economic recovery, a budgetary margin of maneuver to be able to weather the next economic downturn," Almunia told reporters.

He is urging governments to put windfall tax revenues into paying off debt, allowing them to make much-needed reforms to improve European economies.

Almunia said projections for next year show only three EU nations - Portugal, Poland and Hungary - would fail to stay below the bloc's mandated budget deficit threshold of 3 percent of gross domestic product. By comparison, the EU's average budget deficit was above that mark in 2003.

On average, he said, the deficit was forecast to fall to 1.4 percent of GDP in the 13-nation euro-zone this year and 1.1 percent next year. In the 27-nation EU as a whole it would drop to 0.7 percent in 2009.

"It is absolutely clear that we need to use good times in the economic cycle to put public finances in a sound and sustainable position," he said.

Presenting the reviews of Romania, Bulgaria and Latvia, he said he was concerned about a loosening of fiscal policies in those countries, especially at a time of better economic growth. "Stability oriented fiscal policies are key for sustainable economic development," Almunia said.

Bulgaria may have high growth but lacks sufficient labor market flexibility. There are shortages of highly skilled workers. Furthermore, emigration and a drop in fertility have contributed to a rapid shrinking and aging of the population.

In Romania, an economic upturn has seen little increase in the employment rate. At the same time, it faces the same problems when it comes to emigration and the aging of its population.

Latvia may have high economic growth, yet faces relatively high inflation that is pushing up wages.

Even though Almunia lauded Spain and Belgium for their 2007 budgetary plans, he did warn them to stick to fiscal rigor to deal with the financial impact of their aging societies in the decades to come.


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