Saturday, June 30, 2007

Romania: Cernavoda 3 and 4 decisions forthcoming

The Cernavoda plant was originally intended to host five Canadian Candu pressurized heavy water reactors of 633 MWe each.

Saturday, June 30, 2007
by World Nuclear News

The Romanian nuclear industry expects Cernavoda 2 to begin commercial operation in July and government approval for the completion of units 3 and 4 within days.

Teodor Chirica, CEO of state generator Nuclearelectrica, said that Cernavoda 2 was in the final commissioning stage. After receiving permission from regulators, it had achieved 5% power and would progress to 100% and full commercial operation in July.

He also stated that before the end of June the Romanian government would approve the completion of units 3 and 4. Chirica was speaking at a London meeting, Nuclear New Build: The Role of the Private Sector, on 27 June.

The Cernavoda plant was originally intended to host five Canadian Candu pressurized heavy water reactors of 633 MWe each. Construction on units 2-5 has halted in 1991 in order to concentrate on unit 1, which entered commercial operation at the end of 1996. It now provides 10% of the country's electricity.

The government decided to resume work on unit 2 in 2000. After some upgrades during completion, unit 2 is rated at 655 MWe.

Negotiations to assemble a commercial consortium for the completion of units 3 and 4 are underway. It is expected that a project company would be formed and work begin in March 2008.

Chirica said the 64 month completion project would cost Eur2.2 billion ($3.0 billion), not including the cost of capital, but would result in two 720 MWe units with 30-40 year lives. He projected the cost of electricity generation by the units would be between Eur28.2-32.5 per MWh ($38.1-43.7).

The units would be constructed in parallel with a gap of "a couple of months" between each unit's start-up around 2014-5.

Danube water quality at good level: Romanian official

The water quality of the Danube River remains constant and will be improved, Romanian environmental official Serban Iliescu said on Friday.

"Improvements in water quality became visible in Romania with the decline in industrial activities in the country," said Iliescu, water quality monitoring coordinator of the Romanian National Water Administration (ANAR).

He added "there are plans for the building of water treatment plants in Tulcea and other Danube cities, and I am convinced that once the plans are carried out, water quality of the Danube river will stay at good levels."

Iliescu made the statement in the eastern Danube city of Tulcea, based on the test results conducted by the Danube Caravan program to assess the water quality of the Danube River.

The program, carried out on Danube Day, was aimed at collecting water samples from the Danube.

He said that officials of the International Commission for the Protection of the Danube River (ICPDR) will organize a scientific group, which has attracted researchers from Danube cities, who will test water quality in real time.

The Danube Caravan, set up by the ANAR and the Ministry of the Environment and Sustainable Development under the guidance of the ICPDR, traveled seven cities of Romania from June 15 to 29, with the aim of raising public awareness on the importance of water protection and conservation.

Danube Day was launched by the ICPDR in 2004. All Danube countries organize celebratory events on Danube Day to display their wish to adopt common measures and strategies for the protection of the river against extreme weather and accidental pollution.

Source: Xinhua

Romania: EU's Clarion Call

Oxford Business Group Latest Briefing

Romania, along with fellow new European Union member Bulgaria, has been told in no uncertain terms that it needs to get its house in order to bring the country into line with the membership requirements of the European Union, especially regarding the fight against corruption.

On June 27, the European Commission (EC) released a report on the progress made by the two countries in putting in place reforms and addressing issues left outstanding when they formally joined the EU on January 1 this year.

In handing down the report in Brussels, Justice Commissioner Franco Frattini said that corruption at high levels remained a problem in both countries and needed to be dealt with. He urged them to be more aggressive in implementing anti-corruption and judicial reforms.

In particular, the report said that insufficient measures have been taken to combat high-level corruption in Romania, though it acknowledged significant progress had been made towards the creation of a National Integrity Agency (ANI), which is to be tasked with combating such activity. The agency is expected to be in operation this coming October.

The report also recommended that adoption of the new codes for civil and criminal procedures be finalised, the new criminal code be reinforced and more be done to strengthen the independence of the judiciary, including making it more professional and giving it more funding and powers.

Romania has been told to put in place a coherent countrywide anti-corruption strategy and guarantee the legal and institutional stability of key institutions such as the National Anti-corruption Department (DNA).

While Romania had made progress in addressing weaknesses that could prevent an effective application of EU laws, policies and programmes, this progress was nowhere near enough to warrant an end to the EC keeping the country on its watch list, the report said. The commission said it would issue an updated version of its report on Romania's compliance early next year.

However, the situation was not so bad that the EC was prepared to recommend calling for sanctions to be applied to Romania under the safeguard clause built into its accession agreement. These could have included cutting agricultural subsidies by 25%, freezing other assistance and even suspending some of Romania's EU membership rights.

EC President Jose Manuel Durao Barroso said Romania must focus on implementing required legislation in the monitored fields rather than just adopting new laws or it could still incur the bloc's ire.

"Although at this stage the commission does not recommend any safeguard clause, we will remain vigilant. Acquiring additional necessary changes requires a long-term engagement," said Barroso when the report was released.

Failure to meet the EU's benchmarks could still result in sanctions when a new report is issued in June 2008.

"I would expect Romania and Bulgaria to meet the benchmarks," said Frattini. "They have adopted the laws necessary to get results. Now the focus is on implementation."

Despite the warnings, reactions to the report were for the most part positive.

President Traian Basescu, who has long championed both Romania's EU membership and the fight against corruption, said the report was objective and reflected the developments in judicial reform made since last September, when the EU had tabled its previous assessment.

Justice Minister Tudor Chiuariu also talked up the positives of the report, saying the EC had said progress had been made.

"The report confirms the priorities of my term: the adoption of the ANI law and efficiency in the fight against corruption," he said.

Chiuariu said he would present the government with a comprehensive plan of action to address all of the deficiencies set out in the report by October, as called for by the EC.

In its defence, in the six months covered by the report, Romania has been embroiled in a series of political crises that partly derailed the programme of reforms. The political turmoil centred around a clash between Basescu and Prime Minister Calin Popescu Tariceanu, which briefly saw the head of state removed from office over allegations he attempted to influence senior judges. Reinstated after a referendum in May, Basescu has said he will work with the premier to get Romania's reform train back on track.

Romania needs to address the issues raised by the EC report not only to get Brussels off its back but to counter the negative image corruption gives the country, one that could harm foreign investment and business confidence.

Romania PM supports Moldova's EU accession

Romanian Prime Minister Calin Popescu-Tariceanu Friday voiced support for Moldova's accession to the European Union (EU), saying that Romania wants its neighboring country to be as close as possible to the bloc.

Tariceanu made the statement after meeting with his Moldovan counterpart Vasile Tarlev in the Moldovan city of Chisinau. The two leaders discussed the possibility of establishing a development and cooperation fund aimed at financing Moldova's economic infrastructure and cultural projects.

The Romanian leader also urged his fellow businessmen to invest more in Moldova to help its economy, so it can meet EU economic accession standards at an earlier date.

Moldovan PM Tarlev welcomed any kind of assistance to help it join the EU bloc early. Bilateral trade and economic cooperation between the two countries have been increasing in the past two years, Tarlev said, and he was quite optimistic that they would become more dynamic in the future.

During his one-day short visit, Tariceanu will also meet Moldovan President Vladimir Voronin.

Source: Xinhua

Habsburgs Retain New York Investment Firm for Bran Castle

NEW YORK--(BUSINESS WIRE)--Archduke Dominic Habsburg and his family have retained a private investment firm, Baytree Capital, to create a long-term strategic plan for the enhancement and preservation of historic Bran Castle in the Transylvanian region of Romania.

Under the terms of the agreement, Baytree will have exclusive rights to represent the Habsburgs with regard to Bran Castle and associated properties. Bran Castle has tremendous historical significance to Transylvania and Romania, both real and mythical, and is known throughout the world as Dracula's Castle. This association can be traced back to Irish author Bram Stoker, who used Bran Castle as his inspiration for the settings of his classic 1897 novel, Dracula.

With Romania's recent accession to the European Union, investors from all over the world are seeking to exploit the tremendous economic upswing now underway in the country.

Michael Gardner, Chairman of Baytree Capital, said, "I am privileged and honored that the Habsburg family have entrusted me with the future of this precious asset. Bran Castle is one of Romania's top tourist attractions, and with the expected boom in tourism generated by the mythological draw of Transylvania, the Habsburg family believes that a strategic plan for the development of Bran castle is needed."

Archduke Dominic said, "I chose Michael Gardner to create a plan for Bran Castle because I felt he would do it with the utmost sensitivity towards my family, the castle's history, and our ties to the country. Aside from the castle's connection to one of the most famous novels ever written, Bran Castle is steeped in critical events of European history dating from the 14th Century to the present."

Queen Marie, the Archduke's grandmother, and her family lived in the castle in the early part of the 20th Century. The seven hundred year-old castle was seized from the family by the communist regime in 1948, and was converted into a museum in the late 1950s.

The Bran Castle was rightfully returned to the Habsburg family by the Romanian government in 2006.

Three million Romanians live in poverty

Source: Radio Netherlands Worldwide


The Romanian capital of Bucharest isn't one of the poorest cities in the world. But considering the country joined the rich countries' club - the European Union - at the beginning of this year, poverty in the city is at a disproportionate level. And it's visible.

Showroom manager Mike Costache proudly shows us a 'Gran Turismo', the latest model by exclusive Italian car manufacturer Maserati. The price tag is upwards of 130,000 euros and this year he's already sold 15. "We're considering opening a new showroom in Kluj (a town in the north of Romania, ed.) because there's so much demand." Who are the customers? Mr Costache will say no more than "people in the financial sector". Judging by the stylish appearance of Dorobanti Street, where the showroom is located, there's plenty of trade at the luxury end of Romania's car market. This is where the new rich go to show off their affluence.

Painful transition
If you base your impression on this street, you might conclude that Romania is rapidly catching up with the standard of welfare in the rest of the European Union, the "rich countries' club" to which it has belonged since 1 January this year. After the fall of communist dictator Nicolai Ceausescu in 1989, Romania experienced a painful transition from planned to free market economy. The relative security of an assured income disappeared and the traditional agricultural sector proved to be no longer viable, so a large section of the rural population in particular were plunged into deep poverty.

But since 2000, the country has been experiencing steady economic growth - at a rate of 7.7 percent in 2006. While GNP per capita was only 6800 dollars in 2000, six years later it has climbed to 9165 dollars. It's a leap forwards, but still a long way from the Western European average, and what's more, this is an average figure with extremes on either side. According to the World Bank, 15 per cent of the Romanian population still live below the poverty line. "A lot of people at the bottom end of society have lost out in the economic transition," warns Mariana Stanciu of the Romanian Research Institute for Quality of Life."We're seeing new phenomena: parents emigrate and leave their children behind. It's not clear how the children survive," she continues. "The elderly are also a concern. The poverty is visible, people beg, even if they have an income or a pension."

No social safety net
Romania is a country with no social safety net, as Vasile Vasin discovered. Due to a law that enables people to claim ownership of pre-war property, he lost his home. "A four-room apartment I bought 32 years ago." He is now expected to find a rented house, with no financial compensation. "On an income of 400 lei (about 125 euros) that's impossible" says 63-year-old Mr Vasin, who was a builder all his working life but now has to get by on disability benefit. He currently lives with his wife Greta and their dog in a 1985 Dacia Logan - a car that West Europeans would recognise as a Renault 12 - parked outside his former home.

A sign next to the car doesn't beg for money but simply draws attention to their plight. "Look there are no lights on, the new owner isn't even living there," says Greta Vasin. "But where are we supposed to go? Here at least we still get our post." There's a toilet in the café round the corner and they can take a shower at their family's house. But the family can't really come to their aid." They've got problems of their own and no room to take us in," says Mr Vasin. The couple have been living in the car since Christmas. But is it an option to spend the rest of your life in a car? "Ah, we haven't got so many years left," says Mr Vasin bitterly.

"In this situation it would be worth considering leaving the city," says Mariana Stanciu. "It's true that living standards in Bucharest are quite a bit higher than they are in the countryside, but life can still be harder in the city. In the countryside people at least have the chance to grow their own vegetables. That's why there are initiatives to move pensioners to the countryside. It's easier for them to survive there."

Antioch woman killed by bear

Educator mauled while hiking in Romania



Posted Friday, June 29, 2007

A 30-year-old Antioch woman was mauled to death by a bear Saturday in Romania where she was working to educate people on preventing HIV and family violence.

Kathryn Irene Evans was killed while hiking with five others, including her husband, John Evans, on a remote trail in the Carpathian Mountains.

According to reports, the bear killed Evans after injuring Sara McKelvey, 26, of Frederick, Md., and a man, despite efforts by others in the group who threw stones at the bear.

The bear had earlier bitten a Romanian tourist on the shoulder and attacked sheep, one of the members of the rescue team told news television Realitatea TV.

Authorities are searching for the bear to euthanize it.

Evans was project manager for the International Orthodox Christian Charities USAID-funded project, “Strengthening Community-Based Initiatives on HIV/AIDS and Family Violence in Romania,” from April 2006 until her death.

Matt Parry, USAID director of operations, described Evans as a hard worker who understood how to easily relate to people from different cultures.

Parry said Evans was hired after an internship with the organization and became her peers’ supervisor.

“What could have been an awkward transition was seamless, which says a lot about how Katie did her job,” Parry said. “She did not preach to people or speak to them in a condescending way. She just understood and listened.”

Evans attended Grass Lake and Emmons elementary schools, and graduated Antioch Community High School in 1994.

After earning a bachelor’s degree from St. Cloud State University in St. Cloud, Minn., in 1998 and a master's degree in public health from Florida International University in North Miami, Fla., in 2006, Evans spent her career serving others.

She was a Peace Corps volunteer in Bangladesh from 2000 to 2002, where she met John Evans. They were married in 2004.

Other survivors include her mother and stepfather Judy and John Shaffer, of Lake Villa; father and stepmother Gregory and Beth LaPlante, of St. Anne.; brother Edward LaPlante of Carmel, Ind.; and sister Michelle Yearout of Kenosha, Wis.

Visitation is 4 to 8 p.m. Monday at Strang Funeral Home, 1055 Main St., Antioch. Funerals services are 11 a.m. Tuesday at St. Peter Church, 557 Lake St., Antioch.

Friday, June 29, 2007

Fabian Romania swings to FY profit; says current year outlook attractive

LONDON (Thomson Financial) - Fabian Romania Property Fund Ltd swung to a full-year pretax profit and posted a 36 pct increase in net asset value per share, and said the current year's outlook is attractive in light of the significant progress it has made on its investment pipeline.

The Romania-focused real estate fund said it committed a total 35.6 mln eur across four projects during calendar 2006, on which it raised bank debt of 18.9 mln eur, and said its share of the market value of these projects was 46.7 mln eur as at Dec 31 2006, before the deduction for financing.
At the end of June, the company said it has total capital commitments of over 70 mln eur across nine investments.

Operating revenues came in at 1.45 mln eur during the year and pretax profits for 2006 came in at 1.34 mln eur. In the period from April 20-Dec 31, 2005 the company made a pretax loss of 0.7 mln eur. NAV per share was 1.356 eur on Dec 31.

Dracula's Castle could become a Transylvanian resort

NEW YORK (Reuters) -- In the cutthroat business of real estate, U.S.-based firm Baytree Capital Associates has been chosen to market Dracula's Castle.

Archduke Dominic Habsburg, who lives in New York State, and his family retained the private investment firm to market Bran Castle and the surrounding property in the Transylvanian region of Romania.

"They're looking to flat out sell the entire project, but they are particular about who they sell it to," said Michael Gardner, Baytree chairman.

"While they are amenable to someone building a resort that continues the castle and such, they're not amenable to blood dripping on swords. This is not going to be Vampire Land."

While he would not say how much the property would go for, he suspects it would be in the nine-figure euro range. He expects to start marketing the property in about 60 days.

The castle and ancillary buildings are located on 22 acres and additional acres also may be attached to the sale. The property is about 20 minutes away from an international airport that is currently under construction and near the Brasov ski area.

The association of Bran Castle as Dracula's Castle can be traced back to Irish author Bram Stoker, who used the castle as his inspiration for the settings of his 1897 novel, Dracula. The Romanian government has about two years left to operate the castle as a museum, which hosts about 450,000 visitors a year, Gardner said.

The castle was originally built as a fortress in 1377 and was given to the Romanian royal family in 1920. The castle became a possession of the state in 1947 and was transformed into a museum in 1957. The Romanian government returned the property to the Habsburg family in 2006.

Gardner said the property will probably be marketed to private equity firms and hotel real estate investment trusts, but the buyer will probably be European.

Romanian Posts 0.16 Pct. Budget Surplus

BUCHAREST, Romania (AP) - Romania posted a budget small surplus of 0.16 of gross domestic product during the January-May 2007 period, but the government planned to increase spending to deal with a severe drought, the Finance Ministry said Thursday.

Total budget revenue through May was 47.75 billion lei (euro15 billion or US$20.2 billion), about 12.2 percent of GDP, while spending totaled 47.15 billion lei (euro14.9 or US$20.07), or 12.1 percent of GDP, the ministry said.

The government had forecast a 2.8 percent deficit for this year, but the European Union warned it could be higher, reaching 3.2 percent of GDP -- above the EU deficit limit of 3 percent of GDP.

European Commissioner for Economic and Monetary Affairs Joaquin Almunia warned Romania last month it could face disciplinary action over its deficit.

On Wednesday, Romanian Prime Minister Calin Popescu Tariceanu said the government would not be able to lower the deficit because it needed to spend on agricultural subsidies to fight the effects of drought.

The government is scheduled to hold a special budget revision meeting to allocate additional funds for agriculture, health and transportation.

Betfair taps Romania for offshore software skills

"It's not stupidly cheap but it is cost effective"...

By Andy McCue

Published: Thursday 28 June 2007
silicon.com

Online betting and gaming company Betfair has set up an offshore software development centre in Romania to cope with the demands of its rapidly expanding product portfolio.

Betfair opened the 50-person facility earlier this year with just eight developers. Already it is up to 35 staff and the company expects the facility to be full by September. Although the cost of the staff is around 25 to 30 per cent cheaper than in London, Betfair said the main reason for setting up in Romania was to tap into extra skills and resources.

Eachan Fletcher, director of Betfair development in Romania, said there is so much work on the company's product roadmap that decisions were having to be made on what couldn't be done.

He told silicon.com: "We just didn't have the capacity to deliver all of it. It makes no sense to stick another 200 developers in London. We have almost reached a critical mass. You have to attract them away from city banks and it is costly and takes a long time."

Betfair looked at various countries including China, India and the Ukraine but opted for Romania because of the high-quality skills available, its relatively untapped potential as an offshore location and its recent EU membership.

Fletcher said: "It's virgin territory we were looking for. It's not stupidly cheap but it is cost-effective. We compared lots of locations. Many were cheaper but didn't have the quality versus investment you put in."

Betfair also decided to build and run the Romanian offshore facility itself rather than outsource it to a third party - and chose to locate it in the city of Cluj-Napoca.

Romanian lawmakers pull out of Council of Europe over CIA secret prison allegations


Thursday, June 28, 2007

STRASBOURG, France: Romanian lawmakers, critical of a Swiss investigator' s report that said Bucharest hosted CIA secret prisons, pulled out of the Council of Europe's parliamentary assembly Thursday until he visits Romania to prove his claims.

Swiss Sen. Dick Marty, leading an inquiry on behalf of the human rights watchdog, said in a report earlier this month that the CIA ran secret prisons in Poland and Romania — with the knowledge of several local politicians — to interrogate key terror suspects after the Sept. 11 attacks.

The report was approved Wednesday by the parliamentary assembly, a body comprising lawmakers from the human rights watchdog's 47 member states, which meets four times a year to debate human rights issues and social and political trends in Europe.

Romanian and Polish parliamentarians sharply criticized Marty in a debate Wednesday, saying he failed to provide a single piece of hard evidence to back up his report, which was based largely on information he had gathered from unnamed CIA operatives.

"The Romanian parliament's delegation has decided to take no further part in the assembly's activities until (Dick Marty) personally visits Romania to verify the so-called information and proof forming the basis for the accusation that the country was involved in hosting secret detention centers," the 10-member delegation said in a statement.

The lawmakers said they were shocked by Marty's refusal to accept repeated invitations to visit Romania and carry out field visits at the site where media reports said the jail was located.

Marty traveled to Bucharest in 2005, at the beginning of his investigation, but turned down recent invitations by the Romanian authorities, saying he did not want to be manipulated by them. His assistant has visited Romania twice, said Mihaela Draghici, an official with the Romanian delegation to the parliamentary assembly.

Marty was asked by the Council of Europe to investigate CIA activities on the continent after media reports of secret prisons violating Europe's human rights standards emerged two years ago.

The Romanian pullout is a symbolic gesture, as the parliamentary assembly has no executive powers.

"We have cooperated with Mr. Marty's team, he received all the information he had asked for. His assistant was able to see anyone he wanted in Romania, there were no restrictions, " said Draghici, adding it was the first time a delegation has withdrawn from the assembly.

Thursday, June 28, 2007

Thunderbirds perform in Romania

The Associated Press
Posted : Thursday Jun 28, 2007 13:10:17 EDT

CONSTANTA, Romania — The Air Force fighter jet precision flying team performed Thursday at a Romanian airport near the Black Sea, with over 4,000 spectators applauding the stunts.

The show was part of festivities celebrating the U.S. Air Force’s 60th birthday, with the Thunderbirds team flying in group formation and performing aerial acts.

The Thunderbirds, based at Nellis Air Force Base, Nev., are taking part in air shows in nine European countries this year.

In Romania, the show took place at the Mihail Kogalniceanu International Airport near the Black Sea port of Constanta and located next to an air base which will be taken over later this year by the U.S.

The Thunderbirds were joined by planes belonging to the Romanian air force, which also performed aerial feats.

Monitoring of Bulgaria and Romania to continue

By Judith Crosbie
The Economist

The European Commission has warned that Bulgaria and Romania must step up efforts in the fight against corruption and has said it will continue to monitor both states until at least June next year.

But the progress reports, published yesterday (27 June), do not recommend triggering a safeguard clause, under which decisions by Bulgarian and Romanian courts would not be recognised elsewhere in the EU.

Both countries were relieved at the Commission’s decision not to recommend sanctions but were disappointed at the continuation of the monitoring. They had hoped a final report would be delivered at the end of the year.

Yesterday’s reports will be updated at the end of the year and a new report will be published in mid-2008.

The Commission criticised both states for “insufficient” efforts to tackle high-level corruption. Bulgaria has adopted a programme for addressing this problems but “it remains unclear whether measures to protect potential whistleblowers have been effectively implemented”. The report adds: “There is little evidence of rigorous and systematic judicial follow-up on allegations of high-level corruption.

Bulgaria was also criticised for lack of progress on fighting organised crime. An updated action plan on the problem has been implemented but data that would allow an assessment of how judges treat such cases is “patchy or inadequate”.

Romania has brought in a specialised prosecution service for corruption but judges have handed down several suspended sentences in high-level corruption cases. “The rationale for these suspensions…needs to be clarified,” says the report. The Commission also says it is concerned about recent events in Romania, such as the decriminalisation of bank fraud, parliament’s intention to shorten the maximum duration for investigations and the dismissal of a senior member of the corruption prosecution service.

Commission Vice-President Franco Frattini, in charge of justice, as well as Romania’s and Bulgaria’s commissioners, Leonard Orban and Meglena Kuneva, sought to tone down the report’s conclusions during discussions in the College. But the main message of the report remained the same in the report’s final version.

German MEP Elmar Brok, a member of the European Parliament’s foreign affairs committee, has requested the Commission to apply a more consistent policy to Bulgaria and Romania. Brok deplores the fact that although the Commission criticises deficits in both country’s judicial systems and the fight against corruption, “the Commission has not drawn the necessary consequences by activating the safeguard clauses provided for by the accession treaties. Instead, it has limited itself to observe both countries further until spring 2008”.

Brok, former Parliament rapporteur for enlargement, accused the Commission of succeeding “only in talking and not in acting”.

Romania sells meat processor

ROMANIA: State-owned shares in meat processing company Prelucrarea Carnii Splai up for sale.

The Romanian government is to sell off nearly three quarters of the shares in the meat processing company Prelucrarea Carnii Splai as part of a privatisation programme.

The Authority for State Assets Recovery (AVAS) has advertised the sale at a price of 1.9 million Romanian lei – approximately €598,000 - 9.25 lei per share.

The sale is expected to take place in July.

According to AVAS the Bucharest based company has a share capital of 733,627 lei.

In all just over 70 per cent of the state owned shares will be sold.

Bulgaria and Romania progess report: must do better

Source: eupolitix.com


Bulgaria and Romania must implement reforms if they are to successfully tackle judicial reform and high-level corruption, said commission vice president Franco Frattini.

His comments follow the commission’s publication on Wednesday of two progress reports, which, despite being accused of watering down criticism of both countries, indicate that not enough has been done to eradicate high-level corruption.

“Bulgaria, has adopted important constitutional reforms,” said Frattini.

“It has largely met the benchmark, but not completely because these reforms have yet to be implemented.

As for Romania, Frattini said that he noted with “great satisfaction” that benchmarks had also been “largely met”.

A major weakness in both however was the fact that neither country has successfully tackled high-level corruption.

“Both governments are aware of this,” said Frattini.

The commission has effectively given both Bulgaria and Romania a year to clean up their act, with a progress report due to be published mid-2008.

Frattini also defended the non-confrontational nature of both reports.

“These are not monitoring reports,” said Frattini.

“These are member state countries in the post-accession phase, and the aim of these reports is to help them to deliver, to get results.

“I believe that the college that adopted these two reports was credible and able to strike a balance."

European Liberal Democrat leader Graham Watson said that the postivie nature of the reports undermine the concerns of some member states that the 2007 accession was premature.

However, EPP-ED group leader Joseph Daul warned that "becoming a member of the European Union does not mark the end of work”.

EU warns Bulgaria and Romania to do more on corruption

by Lorne Cook
AFP

The European Commission warned EU newcomers Bulgaria and Romania Wednesday to take more action to fight corruption but stopped short of imposing sanctions for their failure to meet reform targets.

The European Union's executive arm said in two reports that the Balkan states, which joined the bloc on January 1, had made progress with judicial reform but needed to do more to implement the changes.

"These efforts need to be consolidated, particularly in the area of the fight against corruption," said EU Justice Commissioner Franco Frattini.

But the commission decided against triggering the so-called "safeguard clauses" that had been put in place for the first three years of the two countries' membership because of their poor degree of readiness.

"The commission has not proposed at this stage the use of safeguard clauses as sufficient progress has been made to suggest that in time the benchmarks can be met by the Bulgarian and Romanian governments," it said in a statement.

EU countries and the commission can sanction either country for failures in their judicial systems or in the management of EU funds and food safety.

They can refuse to recognise legal decisions and can even suspend farm aid to Bulgaria and Romania.

The two countries immediately conceded that there were shortcomings and vowed to continue with, and implement, the necessary reforms.

"We share the opinions presented in the report as to the fact that there are still problems left to solve," Romanian Prime Minister Calin Tariceanu said, adding that his country would "continue eliminating the weak points".

The report on Romania said it should ensure a more transparent and efficient judicial process; establish an agency to check conflicts of interest; and take more effective action against high-level corruption.

Bulgaria was urged to adopt constitutional amendments on the independence of its justice system; continue with reforms of the judiciary; and investigate high-level local government and border corruption.

It was also told to implement a strategy to fight organised crime.

"Bulgaria received recognition that it has taken a stride forward" towards meeting reform targets, Bulgaria's Minister of European Affairs Gergana Grancharova told journalists in Sofia.

"But no particular bravery is needed to admit that we continue to have problems that we must tackle. It is a question of courage and political determination to do that as soon as possible."

Both states were requested to draw up action plans to tackle the issues.

While the two were given the benefit of the doubt because of their short time as EU members, Frattini warned that he expected to see results by the time a new full report is published in June next year.

"I would expect from now till summer 2008 (to see) Bulgaria and Romania meeting the benchmarks," he told journalists in Brussels.

A particularly worrying sign, he said, was the amount of time it took for high-level corruption cases to work through the system.

"After a suspect is brought before a court, it takes a very long time, excessive time to get the final decision," he said. "An average of three or four years, that is too much time."

But safeguard clauses should only be implemented as a last resort, he said.

"Safeguard clauses are triggered in cases of no progress made at all," he said. "Safeguard clauses should be seen as an exceptional clause. It's not normal to trigger a safeguard clause on a full member state."

The commission is due to make visits later this year to the two countries to study their progress on the use of agricultural funds and on animal health and food safety, as well as aviation safety in the case of Bulgaria.

EU officials acknowledged privately that the reports had been toned down from earlier drafts.

Frattini defends mild stance on Bulgaria and Romania

27.06.2007 - 17:44 CET | By Renata Goldirova

EUOBSERVER / BRUSSELS – The European Commission's vice-president Franco Frattini has been forced by media to defend his apparently indulgent stance on Bulgaria and Romania's poor performance in the fight against corruption, while some MEPs stressed Brussels should have triggered sanctions against the two newest EU entrants.

"It is not a blaming and shaming exercise. Our reports are honest, fair and balanced," Mr Frattini told the press room on Wednesday (27 June), as he presented six-monthly evaluations of how Sofia and Bucharest are addressing shortcomings in their judicial systems, the fight against corruption and organised crime.

The two Balkan states were admitted to the EU bloc in January 2007, but only under unprecedented conditions, including regular monitoring of all sensitive areas with the possibility to apply penalties.

At this stage, however, Sofia and Bucharest both escaped sanctions, although the reports show that progress is visible mainly only on paper while implementation remains a weak point.

But the EU's executive body doesn't speak in one voice on the issue, with the college of 27 commissioners divided into two camps - one trying to highlight positive achievements, the other favouring tougher language.

Franco Frattini (Italy), Meglena Kuneva (Bulgaria), Leonard Orban (Romania), Olli Rehn (Finland), Charlie McCreevy (Ireland) and Jan Figel (Slovakia) were among those trying to sweeten the otherwise critical reports.

Mr Frattini, who is in charge of the home affairs dossier in the commission, defended such moves by saying it was necessary to choose "proper language" and "the post-accession approach."

It would be a mistake to use, for example, the word "monitoring," as the two countries are no longer candidates for EU membership, Mr Frattini argued, asking rhetorically "what kind of message [would] we send to the Bulgarian and Romanian population [if we said] you are under scrutiny?"

MEPs reservations
But some members of the European Parliament have criticized the EU's executive arm for failing to apply a more consistent policy vis-a-vis the two newest EU states.

According to German conservative MEP Elmar Brok, the commission's inconsistent behaviour might not only damage the EU's credibility, but could also undermine reform efforts in the two countries.

"The commission has not drawn the necessary consequences by activating the safeguard clauses provided for by the accession treaties. Instead, it has limited itself to observe both countries further until spring 2008," Mr Brok said.

He added that "At this point, it would have been possible to make a symbolic sign. Unfortunately, the commission did not seize this opportunity".

But according to Mr Frattini, the safeguard measures written in the accession treaties are an exceptional and last-resort tool. Nobody in the 27-member college tabled a proposal to trigger sanctions at this stage, he says.

The reports highlight what the two governments should do as well as giving them credit for what has been achieved, Mr Frattini argued, underlining that this is the way to treat an EU member.

Daniel Mitov: Criticism for Romania is softer than that for Bulgaria

Focus News Agency

According to Daniel Mitov, Chairman of the Democracy foundation in Bulgaria, no triggering of safeguard clause is necessary, because it would be a specific message for the Bulgarian citizens, but according to him, this was the language of diplomacy, which says that problems were serious. Mitov was commenting on the report of the European Commission on the progress of Bulgaria and Romania.
‘The report on Romania is quite softer, only the problem with corruption is mentioned there’, he said and added that it was still not clear whether a safeguard on agriculture would be triggered for Bulgaria as well.

Uniqa's stake in Romania's Astra now 50 pct plus 1 shr, to make mandatory offer

VIENNA (Thomson Financial) - Austrian insurance company Uniqa Versicherungen AG said it has bought a further 23 pct in Romania's Astra and now holds 50 pct plus one share in the listed company. In accordance with Romanian law, Uniqa will make a mandatory offer to buy the remaining shares in Astra, the insurer said in a statement.

Harting opens new plant in Romania

An official opening ceremony was held recently to inaugurate the HARTING Technology Group's new plant in the Romanian city of Sibiu (formerly Hermannstadt).

Source: evertiq
The entrepreneurs Dietmar and Margrit Harting, together with the Board and representatives of company management, had traveled to Sibiu to attend the celebrations along with Romanian members of staff.

In addition to a number of invited guests representing the local authorities and the business and political communities, the event was also attended by the Mayor of Sibiu, Klaus Johannis. The Metropolitan of the Orthodox Church in Sibiu, Laurentiu Streza, blessed the new plant. Afterwards on a tour the plant, the guests were able to gain a fuller impression of the modern production facilities.

"We regard Sibiu as an important building block in the HARTING Technology Group. Thanks to the skills of our local employees, we are able to extend our capacity for labor-intensive assembly operations and at the same time safeguard jobs in Germany," explained Dietmar Harting at the opening ceremony for the new plant.

HARTING began its commitment in Romania in 2002 and meanwhile has business units in the country manufacturing industrial connectors and preformed cables for medical, telecoms and industrial applications. In addition, connector systems and magnet systems for the automotive industry as well as tool molds will now be produced in Sibiu. The new HARTING plant is located alongside other international investors in the recently developed West Park industrial zone. In the first stage of construction, the plant facilities cover an area of some 5,500 square meters.

Romania's Telemobil rated 'B-' with stable outlook on shareholder support - S&P

MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has assigned a 'B-' long-term corporate credit rating, with a stable outlook, to Telemobil SA.

The rating agency attributed the rating to the financial assistance that the Romanian mobile operator is getting from its shareholders well as its focus on the provision of affordable wireless data services.

S&P expects the group's liquidity to remain sufficient to fund growth over the next two years.

However, it sees Telemobil's vulnerable competitive positions, weak liquidity, and high leverage as constraints on its ratings.

S&P also assigned 'B-' senior secured debt rating and '4' recovery rating to the Romanian company's proposed 125 mln usd senior secured notes due 2014.

eBay cracks down on Romanian fraudsters

Source: zdnet.co.uk
Auction site's clampdown on online fraud in Romania over the last three years has resulted in several hundred arrests

Online auction site eBay has made public the details of a three-year long campaign to curb online fraud being perpetrated by criminals in Romania — an effort that has resulted in several hundred arrests.

Matt Henley, a member of eBay's US-based Fraud Investigations Team, spoke about the campaign while taking part in a two-day workshop in Sydney with representatives of local law enforcement agencies.

Henley is currently in town to discuss the latest online fraud techniques with representatives from the Australian Federal Police, the Australian High Tech Crime Centre, the Australian Crime Commission, the Australian Communications and Media Authority and all the state and territory police forces.

The e-commerce site's internal fraud team first took note of a higher-than-usual amount of fraudulent activity from Eastern Europe in 2005.

"A huge percentage of the fraud we were seeing was from Romania," Henley said.

While schemes varied, many of these criminals committed fraud after approaching eBay users that had narrowly lost an auction.

"The fraudster can see that a user that didn't win was prepared to spend AU$145 (£61) on a particular item," Henley explained. "They would then attempt to contact the user off the eBay platform to offer them a second chance. The number one goal of these fraudsters was to pull users off of eBay — away from our security cameras so to speak."

The fraudsters would first have to guess the emails of the losing bidders — most commonly by combining their eBay username with popular webmail domains.

"It's very common that users have the same username for their eBay as their email," Henley explained. "Simply by sending out 50 emails of the most common domain names — including the eBay username — at Gmail, Hotmail, Yahoo, [they would have a certain level of success]."

The scale of the fraud was such that eBay formed a dedicated team to look into the issue — hiring a crack team of analysts and lawyers to work with victims and the Romanian authorities to come up with some solutions.

The team's initial assessment attributed the Romanian problem to two central issues — a technology knowledge gap and a lack of resources to tackle cybercrime.

"What we found is that there is a huge gap between generations in Romania," Henley said. "There are 25- to 30-year-old criminals that are among some of the brightest we've ever dealt with. But law enforcement officials and magistrates might have never even used a computer."

The eBay team first took an education role — running roadshows for law enforcers, and conducting a two-day course with the National Institute of Magistrates in Bucharest in conjunction with Visa and MasterCard.

Last year, eBay and Microsoft also sponsored a national cybercrime conference in Romania, talking about the online fraud issue with 200 law enforcement agencies.

Next, eBay attempted to address resourcing issues to fight cybercrime in Romania.

Romania tends to base its resource allocation on population, so most of its law enforcement efforts in the country had been concentrated on its capital, Bucharest.

"Whereas we found that most of the fraud is coming from towns with populations of 50,000 or 100,000," Henley said.

In some of these towns, the eBay team found backlogs of 200 eBay-related fraud cases.

"The police presence in these towns often didn't even have an internet connection," Henley said. "Some were using the same internet cafés as the criminals, which was of grave concern to us."

The Romanian police force thus became the lucky recipients of donated internet connections, computer equipment and digital cameras, courtesy of eBay.

Since the campaign began three years ago, Henley claims that eBay has helped the Romanian authorities make "several hundred arrests" related to online fraud.

"Prior to this, nobody was being arrested," he said. "At least now there is the knowledge that there is a risk associated with being involved in this fraud."

Henley is in no doubt that another country like Romania will prove attractive to online criminals, but for now is satisfied that there is no one country more problematic than another.

"The next [problematic] country will be wherever there is the same pattern — highly-trained people with little opportunities to make money legitimately," he said.

Romania: EU production base to challenge China?

Only a small percentage of the 250,000 t/y of polymer needed by Romanian plastics converters is actually produced in the country, which depends largely on imports, the newsletter Plastics Information Europe (PIE, Bad Homburg / Germany; www.pieweb.com) says in a report in its current issue. The only two major Romanian polymer producers are Oltchim (Rîmnicu Vîlcea; www.oltchim.ro) and Rompetrol Petrochemicals (Navodari / Rumänien; www.rompetrol.com). Due to its low wages, the country has considerable growth potential as a European investment location that could compete with China , PIE notes.

Bulgaria and Romania 'plagued by corruption'

Source: The Independent
By Jennifer Rankin in Brussels and Claire Soares
Published: 28 June 2007

Romania and Bulgaria are fighting alarming levels of lawlessness with contract killings, criminal mafias and corruption still plaguing the eastern European members of the European Union.

That was the verdict yesterday of a six-month progress report from the European Commission, raising doubts about how qualified the two newest EU members are to belong to the continental club.

The EU singled out Bulgaria for its worryingly high number of hit-man assassinations. "Contract killings continue to be of great concern, and in particular most recent killings of local politicians since January. To date no prosecution and conviction had taken place," the report said.

Romania and Bulgaria escaped sanctions from Brussels. But they were both criticised for failing to tackle high-level corruption and enact promised judicial reforms since they joined the Union in January.

"High-level corruption is still one point of weakness and both the governments are aware of this," said Franco Frattini, the European Commission's vice-president. Too few results are shown concerning practical results ... too many indictments still need to be translated into a final decision of a court, that's why we say, very frankly, progress made in this field is still insufficient."

The final version of the reports on the two newcomers omitted a warning that there "was no room for complacency" in either country and Mr Frattini was forced to defend the report from accusations it had been watered down.

Bulgaria and Romania had been threatened with bureaucratic sanctions that would have in effect stopped them participating in joint justice and interior decisions until they had met EU standards.

Now they have until June 2008 to get their houses in order although critics doubt how much incentive there is for Sofia and Bucharest to act now they have been accepted into the EU fold.

The Bulgarian President, Georgi Parvanov, was defiant. "We are already a member of the bloc, a member who strictly and correctly implements its commitments," he told national radio, according to Reuters. "I hope Brussels will look at this behaviour of ours in a more responsible manner."

Victor Alistar, executive director at Transparency International in Romania, said the EU verdict was more positive than the reality, with less judicial progress made in either country than the reports implied. In Transparency International's world rankings, which measure perceptions of corruption, Bulgaria languishes in 57th place and Romania 84th, making it the most corrupt country in the EU.

Bulgaria has Europe's highest per-capita rate of organised crime killings, with some 150 people murdered in connection with organised crime between 2000 and 2006.

As if to emphasise the scale of the corruption plaguing Sofia, the country's top investigator resigned yesterday following a corruption scandal which allegedly involved the energy minister, blackmail and embezzlement.

Prosecutors have said that they lack the evidence to bring charges but are still investigating whether there has been an obstruction of justice.

And things are no better across the border in Romania. The former prime minister Adrian Nastase is accused of blackmail and taking bribes worth millions of euros although he denies all accusations.

With hearings suspended for three months on Monday, the EU report specifically questioned the willingness of the judiciary to prosecute cases into former politicians that are currently in limbo.

Marty slams "wall of silence" over CIA jails

Source: swissinfo

A Swiss investigator says European governments have built "a wall of silence" against charges that they colluded in a secret CIA prison network for terror suspects.

In a report earlier this month Senator Dick Marty said the CIA ran secret jails in Poland and Romania to interrogate key terror suspects after the 2001 attacks on the United States.

The report – the former prosecutor's second into the affair – was approved on Wednesday by the parliamentary assembly of the Strasbourg-based Council of Europe, a human rights watchdog.

"There has been a wall of silence on the part of the governments, silence that covers illegal acts, human rights violations," Marty told the assembly, which asked him to investigate CIA activities in Europe after media reports of secret prisons emerged in 2005.

People were "spirited away without any judicial control... and that was also the case in Europe", he added.

His report, citing unidentified CIA sources and other contacts, said that "high value detainees" such as self-proclaimed 9/11 mastermind Khalid Sheikh Mohammed and suspected senior al-Qaeda operative Abu Zubaydah were held in Poland. It said lesser detainees, who were still of "remarkable importance", were taken to Romania.

Marty accused the former Polish president, Aleksander Kwasniewski, and the current and former presidents of Romania, Ion Iliescu and Traian Basescu, of having known and approved of the secret CIA operations on their soil.

The Swiss senator added that Germany and Italy had used "state secrecy" to obstruct investigations.

Poland and Romania have vehemently denied the allegations of housing secret prisons, and most of the other EU countries mentioned in Marty's reports have denied any wrongdoing.

"It is a far-fetched conspiracy theory spiced up with a generous helping of anti-Americanism," Polish senator Urszula Gacek told the assembly, describing the report as a "piece of fiction".

Romanian socialist Vasile Ungureanu said the report was "like a film scenario" and called for it to be rejected.

Initial findings

Marty stated in his preliminary report last year that 20 mostly European countries colluded in a global "spider's web" of secret CIA jails and flight transfers of terrorist suspects stretching from Asia to Guantanamo Bay.

EU justice commissioner Franco Frattini has complained Marty's second report only quotes anonymous witnesses and does not name any sources.

But Marty defended the use of anonymous witnesses saying his sources needed to be protected because they would face charges of high treason in their countries if their identity were revealed.

Over 30 serving and former members of intelligence services in the US and Europe are said to have been interviewed.

Switzerland also reportedly knew of the secret prisons. A Swiss newspaper revealed that in late 2005 the country's intelligence services intercepted a fax from Egypt claiming that the US was operating a secret prison in Romania.

Earlier this year the cabinet authorised plans to launch criminal proceedings over a suspected CIA flight that took a Muslim preacher kidnapped in Italy across Swiss airspace.

IMPLICATED COUNTRIES

The 14 European countries implicated in Marty's preliminary report for colluding with the CIA extraordinary renditions programme, allowing undeclared flights or failing to investigate kidnappings of their citizens or residents: Austria, Belgium, Britain, Cyprus, Denmark, Germany, Greece, Ireland, Italy, Poland, Portugal, Romania, Spain and Sweden.

CONTEXT

Dick Marty, a Swiss senator, was appointed by the Council of Europe in November 2005 to investigate claims that the CIA had set up secret prisons in eastern Europe.

In his initial report published in June 2006 he concluded that 14 European countries had colluded with the US in a "spider's web" of human rights abuses.

Marty, who is chairman of the council's Committee on Legal Affairs and Human Rights, said other countries, including Switzerland, had been involved actively or passively in the detention or transfer of unknown persons.

President George W Bush acknowledged the existence of a secret detention program in September, but did not say where the prisons were located.

LINKS

Romanian hacker charged with breaching NASA computers

BUCHAREST (AFP) - A young Romanian has been charged with hacking into NASA computers and causing more than 1.5 million dollars (1.1 million euros) of damage for the US space agency, prosecutors said Tuesday.

Victor Faur, 26, from the western town of Arad, was also accused of breaking into the computers of the US navy and the Department of Energy between November 2005 and September 2006, a statement said.

Romanian police alerted NASA in July last year that its servers had been breached by unknown people based in Romania.

An ensuing probe, launched jointly by Romanian police and the FBI, led to Faur.

NASA had to rebuild its systems and scientists and engineers had to manually communicate with spacecraft, resulting in huge losses for NASA.

Faur, meanwhile, said in television interviews that his action was aimed at "proving that several computers are vulnerable to attack," and underlined that he had not tried to make any "material gains."

"I had neither modified nor erased the files, nor destroyed the communications systems," said Faur, who was formally put under investigation in December and has been barred from leaving the country.

An earlier indictment by the US Attorney's Office charges Faur with leading a hacking group called the "WhiteHat Team," which broke into the systems because of their reputation of being among the most secure in the world.

Wednesday, June 27, 2007

EU raps Bulgaria and Romania for corruption

From
June 27, 2007

Bulgaria and Romania were warned today that they have failed to do enough to tackle high-level corruption and contract killings, but that they would be spared sanctions for the time being.

In a six-monthly progress report, the European Commission told the two new EU member states that there was no room for complacency, despite some progress in remedying weaknesses on justice and home affairs.

Franco Frattini, the EU Justice and Home Affairs Commissioner, said that to meet EU rules in the field the two countries needed to step up their battle against corruption, and work to overcome the backlog of cases waiting to go to court.

"High-level corruption is still one point of weakness, both governments are aware of this," Mr Frattini told reporters, after the Commission voted to adopt reports on the two EU members.

"Too few results are shown concerning practical results ... too many indictments still need to be translated into a final decision of a court, that’s why we say very frankly progress made in this field is still insufficient," added Mr Frattini.

Concern over corruption and organized crime has led the EU to insist on a long period of monitoring the progress of the two countries, which joined the EU in January. Both countries must report to the EU every six months on progress in reforms to curb corruption and streamline their judiciaries, or risk losing a chunk of economic aid.

In today's report - the first - the Commission said it was too early either to decide on possible sanctions or to remove that threat for the two states.

It had threatened to invoke so-called safeguard clauses under their membership treaties, which would have suspended the two Black Sea neighbours from participation in EU justice and interior policies until they met EU standards and norms in the area.

Mr Frattini warned them that the threat of such a sanction would be extended until June 2008, when another report card is to be issued on their reforms.

The threat is meant to put extra pressure on the two countries to redouble efforts to overhaul their judicial systems.

Romania was credited with progress in judicial reform and substantial progress in creating a National Integrity Agency.

Recently Romania has started to take action against corruption among political leaders. In May, the former Romanian Prime Minister Adrian Nastase was charged over allegations he used his office to end a probe into his bank accounts over claims he accepted just over a million euros in bribes.

But in both countries “progress in the judicial treatment of high-level corruption is insufficient”, the reports said.

In Bulgaria, an unfolding corruption scandal has implicated the economy minister and the government’s chief investigator.

Bulgaria was criticised in the report for failing to achieve enough across the whole area of crime-fighting. Between 2001 and 2006, more than 150 people were gunned down in broad daylight in the capital, Sofia, including Bulgaria’s top banker, a football company boss and one of its top importers. No-one has been jailed.

“Contract killings continue to be of great concern, and in particular most recent killings of local politicians since January," said the report. "To date no prosecution and conviction has taken place.”

The Commission said that Bulgaria had met one key benchmark by passing a constitutional amendment establishing the independence and accountability of the judiciary.

It had also made some progress towards transparency in its judicial process, improving the professionalism and efficiency of judges. However, the overall picture was unsatisfactory.

The EU executive is also due to report separately later this year on the two states' ability to administer and absorb regional aid and agricultural subsidies, which may lead to a partial withholding of some money from Brussels, EU officials say.

EU Commission Criticizes Bulgaria, Romania

June 27, 2007 (RFE/RL) -- European Union newcomers Bulgaria and Romania got some tough criticism today from the European Commission.

The EU's executive body told the Balkan states that they have made insufficient progress in fighting corruption -- and that they risk sanctions in the future if they do not meet detailed benchmarks.

"High-level corruption is still one point of weakness. Both the governments are aware of this," European Commission Vice President Franco Frattini told a news conference in Brussels.

Earlier, the commission issued its six-month survey on the Balkan newcomers in meeting benchmarks on judicial reform, corruption, and organized crime under their EU accession treaty.

"Our aim is to help Romania and Bulgaria to deliver, to get results, not [to] point fingers or accusing or blaming," Frattini added.

'No Room For Complacency'

Nonetheless, there was plenty of blame for both countries, even if Frattini credited each with "good-will and determination."

The survey by the European Commission warned them that there is no room for complacency despite some progress they have made in remedying weaknesses on justice and home affairs.

However, the commission said it was too early either to decide on possible sanctions, or to remove that threat. Both countries joined the bloc in January.

The report saw corruption as a key problem that continues to plague both countries. It noted that, "Contract killings continue to be of great concern, and in particular most recent killings of local politicians since January. To date no prosecution and conviction has taken place."

Sofia was seen as meeting only one key benchmark. It passed a constitutional amendment to establish an independent and accountability judiciary. Bulgaria also made some progress toward transparency in its judicial process, improving the professionalism and efficiency of judges.

Reason For Optimism?


Frattini said that while the overall picture remains unsatisfactory, there is reason for optimism. He said their "good-will and determination" are the "concrete elements that are necessary to get results. That's why I can say both [countries] deserve our confidence. We trust Bulgarian and Romania not only because they are EU member states, but because they are cooperating with the verification and cooperation mechanism."

Romania and Bulgaria have another chance to impress -- or disappoint -- later this year, when the EU executive is due to report again on their ability to administer and absorb regional EU aid and agricultural subsidies.

EU officials say that if things don't improve by then, they might have to withhold some money from Brussels.

FT: Bulgaria and Romania warned on corruption

By George Parker in Brussels, Christopher Condon in Budapest and Theodor Troev in Sofia

Published: June 27 2007 14:24

Bulgaria and Romania were on Wednesday warned by Brussels to step up their fight against corruption, but a critical report was watered down in an attempt to shore up reformers in the two countries.

The European Commission on Wednesday reported that the two new EU members have failed to crackdown on serious corruption. In the case of Bulgaria there was “insufficient” progress of tackling organised crime.

But Brussels backed away from the use of sanctions against the Balkan countries, and gave the two countries another year to meet the basic membership rules of the Union. In the meantime hundreds of millions of euros of EU farm and regional aid will flow into the region.

The language in the Commission’s draft report was toned down this week after a rearguard action by Franco Frattini, EU justice commissioner and the Bulgarian and Romanian commissioners - Meglena Kuneva and Leonard Orban respectively.

They argued that a highly critical assessment would undermine reformers in the two countries, who are faced with unstable coalitions and deeply ingrained graft at the highest political level.

One Commission official admitted it would also be hard to explain why Brussels had not implemented sanctions - notably the non-recognition of court rulings in the two countries - if it produced a scathing report.

Mr Frattini was despatched to explain the diluted report to the media, insisting it was “credible and balanced”, telling the truth about the lack of progress in fighting serious crime but giving praise where appropriate.

“Our responsibility is to have a political discussion,” he said. “We have to evaluate the factual results and strike the right balance.”

He said sanctions would only be applied “in exceptional cases” but said he expected both countries to have seen through necessary reforms by the summer of 2008.

But his generally upbeat assessment surprised some observers, notably his assertion that “a lot of concrete results have been delivered” including the bringing of suspects on high level corruption charges before the court.

When challenged by a Bulgarian journalist whether he could name any such case in her country, Mr Frattini was unable to answer.

Mr Frattini was accused in April by ambassadors from Britain, France and Sweden of being too close to the governments of Romania and Bulgaria, including spending the weekend on the ski slopes with the Bulgarian interior minister.

The Italian commissioner strongly denies the allegations and says the ski trip was a working visit.

Supporters of future EU enlargement fear the slow reforms in Bulgaria and Romania could harm the club’s expansion deeper into the Balkans.

Meanwhile EU cash intended to boost Bulgarian and Romanian development could end up in the pockets of bent politicians and criminals, as happened in southern Italy.

Additional reporting by Hugh Williamson in Berlin

Romania a global hotspot for eBay fraud

Source: apcmag.com

eBay has taken the extraordinary step of calling a press conference in Australia to discuss the problem posed by Romanian fraudsters. eBay said it was shocked to discover that many Romanian police stations, prosecutors and magistrates had never used a computer. This lack of access to cyber crime fighting tools was allowing internet crime to go unchecked.

The company found law enforcement agencies had been trying to investigate online fraud at the same internet cafes being used by the fraudsters, "which was a huge concern to us", said Mat Henley, of the eBay global fraud investigation team. Although eBay does not have a Romanian office, the problem was so large for eBay and other companies like Visa and Mastercard, that the company has since established a dedicated fraud team in Romania.

"We discovered that Romania had a huge technology gap between generations," said Henley. "It was enormous: 25-30 year old criminals were some of the brightest people we’ve dealt with, but when you mix in the prosecutors, law enforcement and magistrates, some of them had never been on a computer - period," he said. eBay was forced to purchase computers and internet access for Romanian law enforcement agencies and train them on prosecuting internet fraud. The company also supplied digital cameras so agencies could more easily collaborate on photos of the scammers. Incredibly, eBay even involved the US Secret Service (which plays a dual role alongside protecting the President in investigating US treasury fraud).

The USSS provided intelligence from agents in Romania who were able to help Romanian law enforcement unpick the criminal internet fraud networks.

According to Henley, the Romanian scammers' preferred mode of operation is to try to lure people off the eBay site to complete transactions outside of eBay's framework. "They do a very specific attack, and they've gotten really good at it as we've tightened our platform: their number one goal is to pull users off eBay. "If an auction goes through all the way, they will not touch that auction. They know that we have all the details of that auction. They want to pull them away from our security cameras. "They're also kind of famous for the second-chance offer scams - those are 100% off the site. They look at people who bid on auctions but didn't win the item; they know that for example, eBay user Banana123 is interested in an item and willing to pay $140 for it." "Then they'll start trying to blindly guess the person's email address - banana123@gmail.com, banana123@hotmail.com, for example. That's where we have to work with Romanian law enforcement - it's entirely off the eBay system. They're just using eBay to find and target users," Henley said. eBay has since implemented a system whereby once bids for an item reach over $AU200, the bidders' names are concealed.

According to Henley, the Romanian scammers had concocted elaborate stories to convince their victims to send money via unrecoverable methods such as Western Union - even though Western Union asks every customer as a matter of policy whether the payment is for an eBay auction, and advises of the risk. "Romanian fraudsters will ask for certain payment methods – generally they aren’t PayPal or credit card. Generally it’ll be Western Union. They tailor their scam to instruct people not to be honest with Western Union that the payment is for an eBay transaction - they'll claim Western Union will charge them an eBay surcharge of 10% more, so they just say they're sending money to their Romanian cousin," Henley said.

The auction house has recently removed the administration fees involved in making claims through the PayPal buyer protection program, meaning that shoppers are covered against fraud even for smaller purchases. However, eBay also admitted it has simultaneously cancelled the eBay buyer protection program, meaning that shoppers are only protected against fraud if they pay through PayPal. eBay's Henley said "hundreds" of internet fraudsters had been arrested since the company had put its operation into play with Romanian law enforcement.

Though he repeatedly refused to provide any firm numbers on the actual impact on internet fraud, eBay Australia Trust and Safety Director Alastair MacGibbon said that overall fraud on eBay was now less than the "one hundredth of one per cent" figure the company used to tout frequently. The company now uses a large number of proactive measures to try to honeypot scammers, and is "constantly watching for the next Romania," according to Henley.

AP: Govt's condemned over prison accusations

STRASBOURG, France — European governments have built "a wall of silence" around accusations that they let the CIA abduct their residents and run clandestine prisons on their territory, a European investigator said Wednesday.

Swiss Sen. Dick Marty charged in a report earlier this month that the CIA ran secret jails in Poland and Romania — with the knowledge of several local politicians — to interrogate key terror suspects after the 2001 terrorist attacks on the United States.

"There has been a wall of silence on the part of the governments, silence that covers illegal acts, human rights violations. Why this silence, why this systematic refusal to respond to our questions?" Marty told the Council of Europe's parliamentary assembly, which asked him to investigate CIA activities in Europe after media reports of secret prisons emerged in 2005.

Poland and Romania have vehemently denied the allegations, and most of the other EU countries mentioned by Marty have denied any wrongdoing. EU Justice Commissioner Franco Frattini has complained Marty's report only quotes anonymous witnesses and does not name any sources.

His report, citing unidentified CIA sources, said that "high value detainees" such as self-proclaimed 9/11 mastermind Khalid Sheikh Mohammed and suspected senior al-Qaida operative Abu Zubaydah were held in Poland. It said lesser detainees, who were still of "remarkable importance," were taken to Romania.

In an earlier report, Marty accused 14 European nations of colluding with U.S. intelligence in a web of rights abuses to help the CIA spirit terror suspects to illegal detention facilities.

President Bush acknowledged the existence of a secret detention program last September, but did not say where the prisons were located.

Marty's latest report, which did not give specific locations for the alleged jails, provided graphic descriptions of conditions. It told of prisoners being kept naked for weeks, and said masked guards who never spoke were the only contact for those consigned to four-month isolation regimes.

Polish lawmaker Urzsula Gacek, from the opposition Civic Platform, called Marty's report a "piece of fiction, a gripping political thriller which fails to provide a single piece of evidence."

ROMANIA, SERBIA, BULGARIA CO-OPERATE IN FIGHTING TERRORISM DURING JOINT TRAINING

Source: Sofia Echo


Military training Danube Guard 07 participants demonstrated the opportunities for co-operation in the fight against terrorism between Bulgaria, Romania and Serbia.

Six border cutters of which four Bulgarian and two Romanian, two helicopters and one ship took part in the first phase of the training close to the Bulgarian village of Vruv, Bulgarian news agency BTA reported.

The presidents of the three countries observed the training.

The first phase of the training simulated actions in case of vessel kidnapping. The participants had to neutralise the terrorists and free the hostages.

The second part of the training will take part in Timok River with the participation of Bulgarian and Serbian soldiers. The third part will be at the territory of Danube's pass Zhelezni Vrata 2 and will involve Romanian-Serbian actions.

EU Says Romania, Bulgaria Fail to Tackle Graft, Crime

By Adam Brown

June 27 (Bloomberg) -- The European Commission said Bulgaria and Romania must intensify their fight against corruption and organized crime or face curbs on their rights as members of the European Union.

The Balkan nations, the poorest and newest members of the EU, have passed laws to combat crime and graft in the past six months and must now ensure they are enforced, the commission said in a report released today.

``High-level corruption is still one point of weakness,'' Franco Frattini, the EU justice commissioner, told a news conference today in Brussels. ``We have to be honest, we have to be transparent, we have to stress also areas where progress still has to be made.''

Romania and Bulgaria joined the EU on Jan. 1, extending the union's borders to the Black Sea, after the commission decided the countries had upgraded regulatory standards enough to avert a one-year delay in membership. A lack of progress in the new member states may raise concern about EU entry bids of other countries in southeast Europe, including Croatia, which also face calls to fight crime and corruption.

During membership talks with Romania and Bulgaria, the commission repeatedly warned Romania to better fight corruption and told Bulgaria to intensify its fight against organized crime and contract killings.

New Report

Frattini said the commission will issue a new report on Bulgaria and Romania in 12 months. In the meantime, the EU will monitor the nations' steps toward fighting corruption and organized crime and improving the safety of food supplies and airlines.

``I would expect Romania and Bulgaria to meet the benchmarks'' by June 2008, Frattini said. ``They have adopted the laws necessary to get results. Now the focus is on implementation.''

Romania is rated by independent monitor Transparency International as the most corrupt nation in the EU, while Bulgaria has seen a continuation of contract killings since it joined the union.

In Romania, two former cabinet ministers and an ex-prime minister are under investigation on allegations of corruption, which they deny. Parliament also passed in May a new law creating an agency with the power to verify public officials' declarations of assets.

Lawmakers in Bulgaria, with Europe's highest per-capita rate of organized-crime killings, passed constitutional amendments in February meant to increase the independence of the judiciary and enable it to fight organized crime better.

`Real Test'

The Romanian and Bulgarian governments have ``prepared the necessary draft laws, action plans and programs,'' the commission said. ``However, the real test can only be met through determined implementation of these into action on the ground every day. There is still a clear weakness in translating these intentions into results.''

The report also set four goals, or benchmarks, for each country, to be reviewed in its report in a year. Bulgaria must further increase independence, professionalism and transparency of its justice system and conduct ``professional, non-partisan investigations into allegations of high-level corruption,'' according to the report.

Romania has to increase accountability of public officials and judges, further investigate allegations of corruption against senior officials and improve efforts to fight graft in regional and municipal governments, the commission said.

Airline Safety

In the report, the commission said Bulgaria must also improve airline safety. The nation's carriers have been treated as non-EU airlines since the country joined the EU and Bulgaria was ``capable of applying neither community nor Joint Aviation Authority rules on the safety of aeronautical products and maintenance.''

The commission also called on Romania to improve food safety and animal disease-prevention and restricted the country from trading horses with other EU members.

``In the meat, fish and milk sectors, transitional measures have been granted to a large number of establishments and they are allowed to market only on the national market in Romania,'' the commission said.

Romania stands to receive as much as 32 billion euros ($43 billion) in EU funds through 2013, while Bulgaria, with a smaller population, can receive as much as 11 billion euros. The per-capita gross domestic product of the two countries is about a third of the EU average.

The entry of Bulgaria and Romania marked the EU's second expansion into the former Soviet bloc to establish market-based rules for industries ranging from energy and transport to telecommunications and banking. Ten countries, including Poland and seven other nations in formerly communist eastern Europe, joined in May 2004 and swelled the bloc's population to about 460 million.

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

EU executive chides Romania, Bulgaria on corruption

BRUSSELS (Reuters) - The European Commission told EU newcomers Bulgaria and Romania on Wednesday they have made insufficient progress in fighting corruption and that they risk sanctions in the future if they do not meet detailed benchmarks.

The European Union executive adopted surveys of the Black Sea neighbors warning them there was no room for complacency despite some progress in remedying weaknesses on justice and home affairs.

The Commission said it was too early either to decide on possible sanctions or to remove that threat for the two states which joined the bloc in January.

Romania was credited with progress in judicial reform and substantial progress in creating a National Integrity Agency.

But in both countries, "progress in the judicial treatment of high-level corruption is insufficient", the reports said.

The Bulgaria report was critical of the absence of practical results across the whole area of crime-fighting, saying there was no room for complacency.

"'Contract killings' continue to be of great concern, and in particular most recent killings of local politicians since January. To date no prosecution and conviction has taken place."

The EU executive was mandated to report every six months on the eastern Balkan newcomers' progress in meeting a series of benchmarks on judicial reform, corruption and organized crime under their accession treaty.

It is also due to report separately later this year on their ability to administer and absorb regional aid and agricultural subsidies, which may lead to a partial withholding of some money from Brussels, EU officials say.

The Commission set out a series of detailed measures each country should take to implement reforms and demonstrate results to meet the benchmarks on justice and home affairs.

It said Sofia had met one key benchmark by passing a constitutional amendment establishing the independence and accountability of the judiciary.

Bulgaria had also made some progress towards transparency in its judicial process, improving the professionalism and efficiency of judges.

However, the overall picture was unsatisfactory.

Making friends in Romania

Source: Oxford Diocesan
by Paul Persson

Some members of St Mary's Church, Thame formed a link over two years ago with Bethany Baptist Church in the village of Hidiselu de Jos, Romania. The link has been made possible by EPIC - European Partners in Christ.

Last year, we invited Pastor Danut and his family to stay with us in Thame and, in May of this year, six of us, all in our 'golden age'(!), travelled to the village in Romania. We decided on the theme of 'Friendship' and went with suitcases stuffed with equipment for games, crafts and a puppet show.

We had no idea how many would respond to the idea of a Friendship Day on the Saturday. Having blown up balloons and put up bunting, we waited. Eventually 30 children arrived and entered enthusiastically into all that we had prepared for them. We were helped by six students from the University in nearby Oradea. They were on hand to translate for us and be our voice to the children.

We were able to take with us a keyboard and sound equipment as a gift from the people of St Mary's and, on the following day, it was made good use of in the Morning Service. Two of our team preached, one in the morning and one in the afternoon and they continued the theme of friendship - Jesus' offer of friendship to us. Puppets were used to tell the story of the Good Samaritan.

On the next day, we visited the Kindergarten and Primary Schools in the village and were greeted with wide grins from 'our' children who had come to the Friendship Day. We felt that we had made real connections with them and we trust that they will be added to the life of the Church in Hidiselu de Jos.
It was a happy visit and one that we would like to build on in the future.

The link has been mutually beneficial as we meet each month to pray for them and they pray for us.
For further information about EPIC, visit the website on www.EPIC-churches.org

Paul Persson is a member of St Mary's Church.

EU asks Bulgaria and Romania to take action on corruption

Brussels (Thomson Financial) - The European Commission has asked Bulgaria and Romania to take more action to fight corruption but has decided not to slap sanctions on them for failing to meet reform benchmarks.

The commission said in a report that Bulgaria and Romania, which joined the EU on January 1, had progressed on judicial reform but that they needed to make a determined effort to implement the changes.
The EU executive said it would not trigger so-called 'safeguard clauses' that have been put in place for the first three years of the two countries' membership because of their poor degree of readiness.'The commission has not proposed at this stage the use of safeguard clauses as sufficient progress has been made to suggest that in time the benchmarks can be met by the Bulgarian and Romanian governments,' it said in a statement.

Their fellow member states, and the commission, are allowed to apply sanctions against the two countries for failures in their judicial systems or in the management of EU funds and food safety.
They could also refuse to recognise legal decisions taken in the two states or suspend farm aid to them.nina.chestney@thomson.com

Bulgaria and Romania escape sanctions, but not criticism

EUOBSERVER / BRUSSELS – The two newest EU entrants, Bulgaria and Romania, will face open criticism over their poor anti-corruption record on Wednesday (27 June), but the European Commission will stop short of calling for sanctions.

EU home affairs commissioner Franco Frattini will present two reports - seen by EUobserver - on how Sofia and Bucharest are tackling deep-rooted corruption, reforming their judiciary, using agricultural funds and improving food safety - all areas showing serious shortcomings before the two entered the then 25-nation bloc six months ago.
"Continued attention will need to be paid to all areas," both evaluations state, adding that "in particular, there is no room for complacency in the pursuit of judicial reform and the fight against corruption."

According to the paper, Bulgaria and Romania have shown "clear weakness in translating intentions into results," with Brussels being particularly frustrated by the countries' inability to combat high-level corruption.

"There is little evidence of rigorous and systematic judicial follow-up on allegations," it says.

The latest high-level corruption cases in Romania have been suspended and referred to the constitutional court on speculative arguments made by the defence, while in general, the sentences applied by Romanian courts in such areas - on average one to two years in jail - are considered mild.

The courts in Romania do not seem to understand their role in the effort to curb corruption, according to Brussels.

Bulgaria, in addition, is dragging its feet on the fight against organized crime, namely on legal prosecution of alleged contract killings and confiscation of criminal assets.

Time not ripe for sanctions
The European Commission reports are part of Bulgaria and Romania's accession package, setting out the toughest-ever conditions imposed on a country entering the EU club - something designed to keep the political pressure up, as many EU states questioned their fitness to join.

The accession treaties make it clear that if there are serious shortcomings in the transposition and implementation of the EU standards in the economic, internal market and justice and home affairs areas, so-called safeguard measures can be taken for up to three years after accession.

Penalties may include cuts in EU funding or a red light for participation in a particular policy area, for example, refusal to recognise court decisions made in the two countries throughout the 27-nation bloc.

However, Brussels has chosen not to come down too hard on Sofia and Bucharest this time, indicating it is too early to trigger sanctions. Instead, it will stick to the monitoring scenario for at least another year.

By October, Sofia and Bucharest must both prepare an action plan showing how they intend to catch up and meet the benchmarks. In mid 2008, the commission will table another detailed analysis, reviewing its decision not to pull sanctions out of its pocket.

Frattini intervenes
But the report - to be approved by the 27-member college of commissioners - could still see minor changes, as three members oppose its tone.

EU home affairs commissioner Franco Frattini, together with Bulgarian commissioner Meglena Kuneva and their Romanian colleague Leonard Orban, say the critical remarks are too strong and should be toned down.

The trio has reportedly met with reluctance from the rest of the commission, reflecting the mood in some EU capitals, questioning the political health of the two countries.

Southeast Europe Sizzles; 38 Die

By DEREK GATOPOULOS
The Associated Press
Tuesday, June 26, 2007; 7:26 PM

ATHENS, Greece -- Sizzling temperatures in Greece, Italy and Romania brought power cuts and brush fires in a heat wave that has led to at least 38 deaths in southeast Europe in recent days.

Four more people were reported dead in southern Romania Tuesday, bringing the country's death toll to 23. Italian news agency ANSA reported that three elderly people died Tuesday in Sicily after suffering heart failure blamed by doctors on the heat.

In Greece, seven large brush fires broke out Monday and Tuesday and hundreds of people were evacuated from threatened homes near the southern city of Pyrgos, 200 miles southwest of Athens. Air tankers helped contain that blaze after a night-long effort.

Fire warnings were issued Tuesday for all parts of Greece, while overheated power cables were blames for outages in 10 areas of Athens. Five people have died in southern and central Greece.

The government closed most public services early at noon, as temperatures in the capital reached 109 degrees.

Italy also continued to bake. The heat wave has sparked two dozen forest fires in Sicily and Sardinia, as well as in the southern mainland regions. Temperatures in much of Italy were about 95 degrees on Tuesday morning, the weather service said. Colder winds were expected to bring some respite on Wednesday, according to forecasts.

High temperatures damaged electric cables and increased electricity demand, causing an overload in the power system of Sicily's capital, Palermo, Enel Spa power company said.

Albania, and Serbia have also been hit hard by the heat. Seven people in Serbia were reported to have died of heat-related causes.

In southern Romania, temperatures reached 104 F Tuesday. Large trucks were banned from national highways between 11 a.m. and 8 p.m. to protect the softened road surfaces from damage.

In Bucharest, city personnel set up tents and offered drinking water and free blood pressure checks to residents. The ambulance service in Bucharest said 78 people had fainted in the street since Monday.

The south and eastern regions of Romania were experiencing the worst drought since 1945, and authorities issued fire alerts in affected areas.

Severe weather death toll rises in Europe

Source: Euronews

Romania is providing medical assistance to people on the street, as a heatwave continues to claim victims. The death toll from the exceptional temperatures gripping parts of Europe has now risen to at least 46. Romania has paid the highest price, with nearly 30 lives lost in several days of sweltering heat that has also proved deadly in Greece, Italy, Albania, Croatia, Turkey and Bosnia

In Great Britain, severe flooding continues to cause chaos and tragedy. A fourth death has been confirmed by police. Thousands of people have been forced to flee their homes since torrential rain started on Monday.

In Yorkshire in northern England efforts are intensifying to stop a dam collapsing. The fear is that tons of water could pour into already submerged streets. The crisis has left many in temporary shelters, afraid they may find they have lost everything when the waters recede.

Bulgaria, Romania and Serbia Attend 'Danube Guard 2007'

Source: news.bg

The state heads of Bulgaria - Georgy Purvanov, of Romania - Traian Basescu and the president of Serbia Boris Tadic will attend ‘Danube Guard 2007' - tripartite command - staffs exercise with army units and forces for real action.

The statesman will give a press conference. Later on Georgy Purvanov and Boris Tadic will sign an agreement for the opening of 2 new border check points between Serbia and Bulgaria.

The border points will be: Bankia - Petachinci and Salash - Novo Korito.

The ceremony of the signing will be after the end of the main part of the exercises which takes place in the border zone of the three Danube countries.

GE and Helios team up for €175m Romanian project

Source: PropertyWeek.com

GE Real Estate has teamed up with Helios Phoenix to fund a €175m (£117m) development programme in Romania.

The tie-up was announced today. The agreement will enable Helios Phoenix, a joint venture between Helios Properties and Romanian developer Phoenix Real Estate, to begin the speculative development of units in Bucharest, Timisoara, Constanta, Brasov and Cluj.The joint venture will initially develop seven schemes totalling 3.4m sq ft (315,000 sq m). Karim Habra, managing director of central and eastern Europe at GE Real Estate, said: ‘These developments will be the first bespoke portfolio of logistics warehouses in Romania, a market which is currently undersupplied.

‘The recent EU accession is expected to further enhance Romania’s GDP growth and consumer and industrial demand, which in turn will lead to greater demand for warehouse space.’‘Romania represents our 8th market in the region and as in prior markets we hope to build our presence in the market through partnerships with local players, such as Helios.’

ROMANIA AND BULGARIA ASKED TO SUBMIT ACTION PLANS FOR DEALING WITH PROBLEMATIC AREAS

Source: Sofia Echo

In its June 27 report on Bulgaria and Romania’s reform progress, the European Commission would ask the two countries to draft by October 2007 action plan for dealing with problematic areas.

Bulgarian news agency BTA got the information from an anonymous commission source.

The number of problematic areas for Bulgaria is six and for Romania, four. Because of the slow reforms in these areas, EC imposed a monitoring mechanism and said it might introduce safeguard clauses.

Apart from the action plan, Bulgaria and Romania have to report every six months on the progress made in each of the areas.

A final draft of the report will be prepared on June 26. Small amendments are expected, but the general tone of the report will remain unchanged.

BTA reported that three European commissioners recommended softer report tone.

So far, media lack information that the report will recommend the introduction of safeguard clauses for either country.

German cop kills Romanian driver

Reuters


Berlin - A plain clothes police officer shot dead a 27-year-old Romanian man on Tuesday during a vehicle check in the northern German port of Hamburg, police said.

Police said they were investigating the plain clothes officer on suspicion of acting negligently.

"There is no indication that the officer was acting in self defence," said a police spokesperson, who declined to give further details, saying the circumstances of the incident were unclear.

A bullet from a police officer's gun shot through one of the car's rear windows and killed the Romanian who was in the driver's seat, the spokesperson said.

An accompanying passenger, also Romanian, was unhurt but arrested on the spot on suspicion of fraud. Police found several forged cheque cards in the vehicle, which German media reported had British licence plates.

Bulgaria and Romania face EU rebuke

International Herald Tribune
Tuesday, June 26, 2007

BRUSSELS: Bulgaria and Romania will receive a stern rebuke Wednesday from the European Commission for failing to root out corruption and organized crime, fueling concerns that the two nations were admitted prematurely to the European Union.

Though neither nation will face special sanctions that the EU could impose, officials will make it clear that both countries need to intensify efforts to rein in bribery, criminal networks and contract killings.

The harsh verdict comes as the EU is experiencing expansion fatigue following the bloc's enlargement in from 15 countries to 27 since 2004.

The inclusion of Bulgaria and Romania in January extended the EU's borders to the Black Sea and was seen as a means to promote stability in an often volatile region. But it also challenged an already overstretched bureaucracy.

Moreover, it gave the world's biggest trading bloc two countries where per capita income is less than €4,000, or $5,270, a year, spurring concerns that the poor, southeast European countries would be a drain on EU finances.

At a meeting Wednesday, European commissioners will argue over the exact wording of a formal assessment. But a draft of the document on Bulgaria concluded that, while the country has stepped up efforts in the fight against corruption and organized crime, "much remains to be done."

Government statistics "mix up domestic murders with those linked to general criminality and/or linked to organized crime, particularly contract killings."

The draft adds: " 'Contract killings' continue to be of great concern and in particular most recent killings of local politicians since January. To date no prosecution and conviction has taken place."

Laws still protect those who amass unexplained wealth but who cannot be investigated without a link to a criminal offense, and "progress in the fight against serious and organized crime is still insufficient," according to the draft.

Similarly the document concludes that "overall, progress achieved in the judicial treatment of high-level corruption cases in Bulgaria is still insufficient."

The effectiveness of penal and judicial reforms remains unclear and confusion persists about who is ultimately responsible for the drive against corruption, "the prime minister, the minister of interior, the prosecutor general, the chairman of some interagency body or somebody else."

Another failing spotlights weaknesses in aviation security. Bulgaria has already been told that its airline safety certificates will not be accepted by the rest of the EU.

In February, Sofia withdrew airworthiness certificates for more than 160 aircraft.

A separate document on Romania will express concerns about political instability there following an ultimately unsuccessful attempt to impeach the president, Traian Basescu.

Though less severe than the assessment on Bulgaria, the document on Romania highlights a series of concerns. There is, says the draft, "a need to step up efforts in the pursuit of judicial reform and the fight against corruption."

But of most concern to EU officials is the question of whether structures are in place to combat the lingering corruption and lawlessness that surfaced during the transition from communism.

As a result, the EU imposed some of the toughest conditions ever on the poor southeast European entrants, including granting the Commission the power to suspend aid programs if the two countries backtrack on vital reforms. Romania expects to receive as much as €1.7 billion in the first year after entry, while Bulgaria, with a smaller population, would be entitled to 661 million.

So concerned was the European Commission that it had threatened to postpone the two nations' entry to the bloc until January 2008 but it decided against such a sanction because it thought it might prove demotivating for reformers in the country.

Romania and Bulgaria had more endemic corruption than the eight newest EU members from the east did before joining, according to Transparency International, an anticorruption watchdog whose reports are widely read within the commission. In progress reports leading up to their admission on Jan. 1, the Commission expressed fears about the countries' sluggish pace of judicial reform, a worrying backlog of cases in their court systems, and a persistent problem with organized crime and human trafficking.

In the six months since Bulgaria and Romania joined , European diplomats have complained that neither country has made sufficient progress. In Romania, the judiciary has failed to completely root out corruption, in part because judges and government bureaucrats have among the lowest salaries in Europe - a problem the government is seeking to rectify. In Bulgaria, where salaries are similarly low, the judicial system is considered chronically ineffective, with many criminals not brought to justice. Meantime, dozens of organized crime figures have been publicly assassinated in the last several years, without any arrests.

Romania tries to join Schengen area by 2011

Romania's accession to Schengen area by 2011 is the government's main goal for the next period, said Cristian David, Minister of Interior and Administrative Reform on Tuesday.

The minister said it at a meeting with a German parliamentary delegation led by Vice President of Bundestag Juridical Commission Wolfgang Neskovic. The officials spoke about Romania's accession to Schengen area, the progress reported on border security, the fight against corruption and preparation for the accession to Prum Treaty, the Ministry announced in a press release.

The representatives of seven EU states signed in Prum in May 2005 a Convention between the Kingdom of Belgium, the Federal Republic of Germany, the Kingdom of Spain, the French Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands and the Republic of Austria on the stepping up of cross border cooperation, particularly in combating terrorism, cross border crime and illegal migration.

They also spoke about the fight against corruption, stressing the need to involve the civil society in preventing such deeds.

Source: Xinhua

Renault to invest E100 million in Romania

Source: Automotive Business Review online

Renault is planning to expand its international development program with an investment of E100 million over the next two years on Renault Technologies Romania. The country will act as a regional engineering center, with three locations developing vehicles and powertrains for the surrounding markets.

The center is expected to employ around 3,000 people by the end of 2009. Renault Technologies Romania will function under the Renault Engineering global function, which aims to develop eight new models every year as part of Renault's plans to release 26 new models by 2009. The center will focus on engineering functions (design and testing), along with purchasing, design and support (management, human resources, IT) functions.

GE Real Estate Enters Romanian Warehouse Market Through Joint Venture

NEW YORK (AP) -- GE Real Estate Central & Eastern Europe and Helios Phoenix said Tuesday they created a joint venture for 175 million euros ($235.6 million) to build warehouses in Romania.

The deal, GE Real Estate's first entry into the Romanian real estate market, will initially result in the development of seven logistics and distribution warehouses in the country's largest cities.

Phoenix Real Estate has been active in Romania since 2001.

Shares of Norwalk, Conn.-based General Electric Co. dipped 16 cents in aftermarket trading to $37.86. In the regular session the stock declined 19 cents to $38.02.

EU sanctions unlikely against Bulgaria, Romania: diplomat

Source: EUbusiness
26 June 2007, 18:11 CET

(BRUSSELS) - The European Commission is unlikely to sanction Bulgaria and Romania in a report this week even though the two still have much work to do to battle corruption, an EU diplomat said Tuesday.

"The report will show that Bulgaria and Romania have made progress in some areas but they must still make greater efforts, particularly in fighting corruption," the diplomat said, on condition of anonymity.

The commission is due to release the report Wednesday.

The two states joined the EU in January but are under strict surveillance for the first three years of membership because of their poor degree of readiness.

Their fellow member states, and the commission, will be able to launch sanctions against the two for failures in their judicial systems or in the management of EU funds and food safety.

They could refuse to recognise legal decisions taken in the two states or suspend farm aid to them.

The commission considers that it does "not yet have enough elements" to decide "at this stage" whether to activate the so-called safeguard clauses against Bulgaria and Romania, the diplomat said.

New EU states attacked over graft

By Oana Lungescu
BBC News, Brussels

The European Commission is to criticise Bulgaria and Romania for failing to tackle deep-rooted corruption and reform their judiciary. Bulgaria and Romania joined the EU six months ago. A report by the Commission highlights the lack of convictions in high-level corruption cases and voices concern about contract killings in Bulgaria.

The report, seen by the BBC and due to be released on Wednesday, stops short of calling for sanctions. Bulgaria and Romania joined the EU on the strictest terms ever but the report shows that, in the last six months, judicial reforms have had little or no result. Politicians killed The main concern is the lack of convictions for high-level corruption. The report says Romanian judges have failed to show they understand their role in curbing corruption.

Judges in the country continue to hand down suspended sentences or to refer the most important cases, including one against a former prime minister, to the constitutional court. The report also highlights contract killings in Bulgaria as a great concern. It draws particular attention to the targeting of several local politicians since January, which have not led to any prosecutions. Risk to businesses The European Commission says it is too early to trigger sanctions and it will continue to monitor both countries for at least another year.

The monitoring reports are supposed to keep up political pressure on new and future EU entrants. But the only penalty available to the commission is to refuse to recognise court decisions made in Bulgaria and Romania, such as arrest warrants or decisions on company law. Many fear that would hurt western businesses and let criminals off the hook. As one EU official put it, it would be like using our only missile against our own navy.

Tuesday, June 26, 2007

Bulgaria and Romania must work harder on justice reforms - EU


Brussels (dpa) - New European Union members Bulgaria and Romania must do more to reform their justice systems, according to a report by the European Commission.

Above all the fight against corruption and organized crime must be strengthened, the Commission said in a report to be published Wednesday.

However, EU diplomats said that the use of safeguard clauses was not being recommended.

These were clauses agreed with Romania and Bulgaria before their EU entry in January this year to deal with serious shortcomings or delays in the fulfilment of commitments as members states. As a last resort they can be used to suspend a country's member rights.

The Commission report acknowledges improvements in the justice systems in both countries but concludes that these have not been sufficient.

It will take several more years before the justice systems in Romania and Bulgaria reach the necessary EU level, the report says, particularly in Bulgaria where corruption and organized crime are significant problems.

The European Commission reserves the right to trigger the safeguard clauses in the future. The progress of reform in the two new member states is examined every six months.

EU Commission critical of Romania and Bulgaria

Source: Radio Netherlands Worldwide

Romania and Bulgaria last year received the green light from the European Commission, but now the green light has turned to yellow. Brussels is critical of reform efforts so far by the new member states in the areas of justice and corruption, but finds it still too early for concrete sanctions.

It has been well demonstrated that the presidency of the Bulgarian football club Lokomotiv Plovdiv is no healthy job. Last month Alexander Tasev was found with two bullets in his head at the entrance to his house, meaning that for the third time in three years this football club had lost its Chairman as a consequence of liquidations in the crime scene. It's hot in the Bulgarian underworld, and the judiciary and the police appear to have no control over it. That's also one of the main criticisms raised by the European Commission in a report that came out on Wednesday.

Priority
Romania, as well as Bulgaria, is showing insufficient progress in the fight against corruption and reforming legal powers. The reforms look good on paper, but fail to be carried out, according to the report. The Commission is especially critical of the impotence of Bulgaria in getting to grips with organized crime. Liquidations are common, but are rarely solved.

Bulgarian Prime Minister Sergey Stanishev signalled at the beginning of this month that the fight against corruption would become a 'national priority'. "Bulgaria will very shortly produce concrete results in the fight against top level corruption", promised Public Prosecutor Margareta Popova, who said she valued a critical glance from Brussels. "As a Public Ministry we want to operate independently. Pressure from the European Commission is for us a guarantee that this will happen."

Political chaos
Since their accession on 1 January, Romania and Bulgaria have landed in troubled waters. With EU membership in the bag, suddenly Pandora's box appears to have been opened. A government crisis in Romania led to the departure of Justice Minister Monica Macovei, the only minister in whom Brussels had much trust as an active opponent of corruption. Her Bulgarian colleague gave up the post at the beginning of this month for 'personal reasons'. The Bulgarian government has for several months been involved in a sizable corruption scandal.

The political chaos in the new member countries was, for a number of countries including the Netherlands, reason to express their concern over the progress of the promised reforms. The Dutch Minister of Foreign Affairs, Maxime Verhagen, recently expressed her hope that the Commission would act more toughly against the new member countries. There was also criticism of the responsible European Commissioner of Justice, Franco Frattini. His credibility reportedly took a blow when he went skiing with the Bulgarian Secretary of the Interior, Rumen Petkov.

Delay
To prevent the new member countries from slipping backwards after accession, the Commission has decided to consider the possibility of imposing sanctions such as the withdrawal of subsidies, and the introduction of so-called opt-out clauses, by means of which a member country can be excluded from participation in a particular policy area. This is possible until three year after accession. At the moment, Bulgaria already has an opt-out clause in the area of air travel. Because the Bulgarian air inspectorate do not satisfy all at the Commission's rules, Bulgarian airlines do not enjoy unrestricted access to European airspace - a measure that remains temporarily in force.

But now Brussels wants to have similar measures in its pocket in the areas of the judiciary and policing. Both countries have been given another six months to show an improvement in results. This demonstrates that the Commission wants to avoid coming down too hard on countries that are full members. In addition, sanctions would also mean a loss of face for the Commission, which granted full membership to both countries at a time when many doubted that they would be able to get their affairs in order in a timely manner.

Searing heat kills 28 in Romania

Source: Earthtimes.org

Bucharest - Searing heat has claimed more lives in Romania, leading to the death of at least 28 people in the past week, the country's health ministry said Tuesday. As the temperature rose to 40 degrees Celsius in the shade in the eight southern, hardest-hit districts, five of the victims, most of whom were the elderly and chronic patients.

The number of calls for medical help remained well above the average, with some 20 per cent of all requests related to the heat, local reports said.

With no cooler weather in sight, Prime Minister Calin Popescu Tariceanu has called for another emergency cabinet session on Wednesday, with water supply in crisis regions on the agenda. Many artesian wells in have dried up during the ongoing heatwave.

It was also very hot, between 35 and 40 degrees or more, everywhere in the Balkans, between the Black Sea and the Adriatic. However, in the region only Romania has a formal heat alert.

In Montenegro, the water in the Bay of Kotor reached an incredible 31 degrees, and the air was heated to 41 degrees.

Authorities in Serbia incessantly appeal on the population to stay inside when possible and to drink water in temperatures ranging from 32 to 39 degrees.

In Bulgaria an afternoon ban was imposed on heavy traffic on some routes in order to save the melting roads from total damage, even as and road construction workers had their working hours reduced.

Czech energy giant CEZ mulls nuclear reactors for Romania's Cernavodaplant

PRAGUE. JUNE 26. INTERFAX CENTRAL EUROPE - Czech state-run energy giant
CEZ's Romanian unit is mulling a EUR 2.4 bln investment into building two new nuclear reactors at the country's Cernavoda nuclear power station, analysts said Tuesday, in a move that could lead to a lower price for large coal-powered plants Romania has slated for privatization.

"There are three private distributors in Romania: CEZ, [Italian oil/gas concern] ENEL and [German] E.ON, all without generating capacities," Wood & Co. analyst Tibor Bokor said, noting that Romania is expected to privatize three large coal-fired power plants this year. "The nuclear project [is] new and increases the supply side of the equation, perhaps
likely to cause weaker selling prices for the assets."

Investors interested in bidding for the construction of the two nuclear reactors will have until August 10 to submit their offers, according to Wood & Co. The winning bidders are to be selected by October 29. The two nuclear reactors are set to start functioning in 2014 and 2015 respectively.

"We would take positively an announcement of CEZ buying or building generating assets in Romania," Bokor said. Romania aims to increase the shares of nuclear and renewable energies in its energy mix, and Enel, which this month acquired Romanian electricity
distributor Electrica Muntenia Sud (EMS) for EUR 820 mln, also plans to invest in new wind farms in the country.

Prague-and Warsaw-listed CEZ has earmarked some CZK 9 bln for acquisitions in the CEE region and southeastern Europe. CEZ bought back more than 2.02% of its shares in a share buyback program aimed at improving its capital structure. Through the buyback of a planned total 10% stake, CEZ hopes to increase its debt to equity ratio, which currently stands at some 20%.

Orange Romania launches 3.6 Mbps service

Telecompaper

Orange Romania has launched 3G+ services. The service increases download speeds to up to 3.6 Mbps in ten cities, namely Bucharest, Timisoara, Cluj-Napoca, Constanta, Brasov, Craiova, Iasi, Oradea, Gelati and Ploiesti. The company aims to extend broadband coverage by the end of the year, bringing faster mobile data transfer via 3G+ to all of its subscribers in capital cities and the principal mountain resorts. 3G+ can be used by prepaid and postpaid customers to connect to the internet on their laptop and desktop computers.

Three EU Commissioners Object to Tough Talk in Bulgaria, Romania Report

Sofia News Agency

26 June 2007, Tuesday

Three EU commissioners have asked for a milder wording of a report assessing the progress of reforms in Bulgaria and Romania, but met the opposition of the rest of the bloc's executive, Reuters reported on Tuesday.

Justice and home affairs commissioner Franco Frattini wants criticism to be toned down and was backed by the commissioners from the two countries, the latest additions to the EU as of January - Bulgaria's Meglena Kuneva, in charge of consumer protection, and Leonard Orban, in charge of multilinguism.

But their objections were shot down by the rest of the commission, who argued that the report has to be objective if the EU enlargement process is to maintain its credibility, Reuters said.

The draft of the report, due to be approved by the commission on Wednesday, will see only minor modifications, without a major shift in its attitude, the agency said, quoting unnamed European officials.

The report is set to criticise the two countries for failing to make enough headway regarding judiciary reform, as well as combating organised crime and corruption in Bulgaria's case, but would not trigger the safeguard clauses stipulated in accession treaty signed by the two Balkan neighbours.

For the first time, however, it will set concrete targets to measure progress, while the threat of the safeguard clauses will not be lifted.

AP: 4 More Dead in European Heat Wave

Southeastern Europe continued to sizzle under an intense heat wave Monday, with temperatures over 100 degrees Fahrenheit leading to the deaths of four people in Greece and Cyprus and sparking two dozen forest fires in Italy.

Temperatures in the southern Italian city of Bari reached 113 degrees Fahrenheit, while the Sicilian capital of Palermo hit 108 degrees and parts of Greece topped out at 107 degrees.

The Greek Health Ministry said three pensioners aged 76, 84 and 103 died of medical conditions aggravated by heat stroke. In Cyprus, a 72-year-old woman died of heatstroke as temperatures there reached 106 degrees Fahrenheit.

Nearly 30 people were reported killed in Romania, Serbia and Albania last week because of the heat wave, officials said.

Italian officials said the high temperatures and strong winds had started 25 blazes Monday on the islands of Sicily and Sardinia, as well as in the southern part of the mainland. A forest fire had also broken out north of Athens in Greece.

In the Mediterranean resort of Antalya, Turkey, authorities were banning people from entering the forests to avoid possible fires, CNN-Turk television reported.

Farming officials, meanwhile, warned that Sicily's lemons were literally baking in the heat and that farmers were being forced to harvest them unusually early to save them.

Greek electricity consumption exceeded 10,000 megawatts to hit a record high Monday, causing limited power outages in the Athens area and other parts of the country.

Temperatures were expected to remain well above normal until Wednesday, forecasters said.

Associated Press reporters in Cyprus, Italy and Turkey contributed to this report.

SERBIA, BULGARIA AND ROMANIA TRAIN TROOPS TOGETHER

Source: Sofia Echo

Troops from Bulgaria, Romania and Serbia launched the joint military training Danube Guard 07.

The training will take place in the border zone between the three countries, on the Danube River. It will last until June 29.

Danube Guard 07 aims to co-ordinate the efforts of the three countries in disaster management.

More than 1600 troops and civilians will take part in the training. Bulgaria is represented by 360 people, Romania by 700 and Serbia by 550.

Tanjug news agency reported that the aim of the training was to increase regional security. It also carried importance for better co-operation between Bulgaria, Romania and Serbia.

Co-director of the Bulgarian participation Dimitar Dimitrov said that the training will increase mutual trust and friendship.

The presidents of the three countries will attend the main part of the training scheduled for June 27.

Clear Channel moves into Romanian outdoor market

San Antonio Business Journal

Clear Channel Outdoor has acquired a controlling stake in Klass Advertising, a leading banner and neon advertising firm in Romania.

Financial terms of the deal were not disclosed. The acquisition marks Clear Channels' first foray into this Eastern European country since it has joined the European Union.

"This is an important strategic step in expanding Clear Channel Outdoor's reach in Eastern Europe," says Paul Meyer, global president of Clear Channel Outdoor. "It is a great complement to our growing businesses in Poland, the Baltics and Russia."

Clear Channel officials expects the Romanian outdoor advertising market will experience further growth with the country's entry into the European Union. Klass currently has a national network of banners placed at premium positions in Bucharest and other major Romanian cities, according to Clear Channel.

"In Klass, we recognized the same strong dedication to product quality and customer satisfaction as Clear Channel Outdoor," says Rickard Hedlund, regional president of Northern and Eastern Europe for Clear Channel Outdoor. "We very much look forward to developing the Romanian market together with our partners at Klass."

Clear Channel Outdoor (NYSE: CCO), a subsidiary of San Antonio-based Clear Channel Communications Inc., is the world's largest outdoor advertising company with more than 973,000 displays in more than 60 countries.

Romanian Laughter

Source: Interesting Times - George Packer's blog for the New Yorker.

12:08 East of Bucharest,” currently playing at Film Forum in New York, is part of a new wave of Romanian movies that are slowly reaching American audiences. National cinemas often become great just as dictatorships loosen up or fall, when there’s the right combination of freedom of expression and miserable conditions. Think of Czech cinema during Alexander Dubček’s Prague Spring, Polish cinema during the early years of Solidarity, Yugoslav cinema during the country’s disintegration after Tito, or Iranian cinema during the now dead reform era. Totalitarian rule makes artistic creation impossible, but, apparently, social peace threatens it with triviality. Romania hasn’t been a dictatorship since 1989, but it still suffers from appalling economic misery, a blighted industrial landscape, and vast government corruption. Naturally, it’s enjoying a golden age of movies.

The Romania of “12:08 East of Bucharest” is bleak—the streets are gray and wet, the lamps flicker on and off, and almost all the color has been washed out of the film stock, rendering the apartments even more dingy and cramped, the human faces more exhausted—and yet, when I saw it, the audience laughter was as loud and sustained as at “Borat.” The premise is that a small-time TV anchor in an unnamed town east of Bucharest devotes a call-in show to the subversive question “Was there a revolution in our town?” The anchor relentlessly interrogates an alcoholic townsman who claims to have fought the security police in the main square just a few minutes before the violent overthrow of the Ceauşescu regime in December, 1989. Romanians have had few other recent triumphs, and yet the film’s director, Corneliu Porumboiu, doesn’t hesitate to make a mockery of this last shred of national glory. It’s a type of black humor that’s particularly Eastern European: “12:08 East of Bucharest” shows how much laughter and art can be built on the notion that everything about one’s country is basically shit.

Italy tells Romania: We don't want your Roma

1,000 migrants a month arrive in Italian capital £20-a-week wages mean few are likely to go back

Tom Kington in Rome
Tuesday June 26, 2007

Guardian

Tourists gazing down from Rome's third-century BC Milvian bridge get a glimpse of an idyllic, tree-lined stretch of the Tiber winding its way into the heart of the city. But if they look closer, they can make out a cluster of well-hidden shacks on the river bank built by homeless Roma migrants - many from Romania, a new EU member.

Desperate families sleep under elevated roads that ring the capital, in suburban woods and even, in the case of 14 Romanians discovered by police last month, in a Roman cistern along the Appian Way.

Now, however, amid the surge in immigration - 1,000 Roma arrive from Romania every month - Italy's politicians are starting to take decisive, but controversial, action. Rome's mayor Walter Veltroni flew to Bucharest yesterday to urge the government to discourage its people from leaving in the first place. He has also announced the construction of four huge new camps in the suburbs of the Italian capital to house the arrivals.

"We need to contain the flow from Romania and part of that involves working with child welfare groups to improve conditions and convince parents to stay put," said a town hall official travelling with Mr Veltroni. The party will visit the mayors of three towns - Craiova, Calarasi and Turnu Severin - from where the majority of Rome's new arrivals hail.

There are now around 7,000 Romanian Roma in the Italian capital. "Of those only 1,500 are living in council-run facilities, the rest are in shacks or in the open," said town hall spokesman Enrico Serpieri.

Their presence has generated a succession of confrontations in Italy. An angry mob in Ascoli Piceno, near the Adriatic coast, torched a camp in April after a drunk-driving Roma youth killed four teenagers on a narrow road. Such scenes are yet to occur in Rome, but in May the regional president, Piero Marrazzo, was barracked by a crowd for being soft on immigration when he attended the funeral of Vanessa Russo, a girl from the gritty suburb of Borgata Fidene murdered by a Romanian prostitute during a row.

Livio Galos, an official from Romania's interior ministry who is liaising with the Italian police, said some Roma arrivals were involved in petty theft, although he played down hysterical Italian headlines about a wave of criminals taking Italy by storm. "Thanks to the Romanian education system a few have become expert credit card cloners, but the stories about circus acrobats becoming daredevil burglars is pure myth," he said.

While Mr Veltroni hopes his trip is a success, a Roma spokesman was dubious that many would want to return to Romania while available wages ranged from €20 to €40 (£13 to £27) a week.

Massimo Converso, a spokesman for Italian Roma group Opera Nomadi, said there was, however, an alternative to returning or entering the planned camps, which Mr Veltroni's opponents have likened to prison camps.

"We want to live in houses," he said. "So we are pushing the Italian government to hand over disused public buildings like stations and maintenance buildings along highways." Mr Converso said that after a pilot project saw Roma families move into old farmhouses near Venice he was now eyeing the many abandoned and semi-abandoned medieval hamlets that dot Italy, usually on isolated rocky outcrops.

EU to Criticise Romania And Bulgaria on Corruption

Reuters

The European Commission will criticise Romania and Bulgaria in a report on Wednesday for failing to meet EU targets for improving justice and fighting systemic corruption and organised crime, EU officials said.

They said the European Union executive would stop short of triggering sanctions against the Black Sea neighbours, which joined the bloc in January, since it was too early after just six months, but they would spell out more detailed benchmarks.

"At this stage we do not foresee any safeguards, but we do not exclude the possibility for the future if necessary," one official said after a final preparatory meeting on Monday.

The officials said three commissioners -- Romania's Leonard Orban, Meglana Kuneva of Bulgaria and Franco Frattini, the Italian vice-president in charge of justice and security -- had expressed reservations about aspects of the report.

Frattini objected to some of the criticism of Bulgaria and sought to soften the language, they said.

The sources said the report noted progress made in several areas, notably in Bulgaria's adoption of a constitutional amendment guaranteeing the independence of the judiciary.

It highlighted the absence of convictions in high profile corruption cases and the long wait before suspects were brought to justice.

"We try to be fair and give credit where credit due, but not shy away from saying there has been insufficient progress on some of the bigger problems," another official said.

Both have revamped their justice systems and passed laws to set up graft-fighting institutions, in line with EU demands. But observers say results are stymied by hesitant policymakers, political feuds and ineffective state administration.

For the first time, the report compiled by the secretary-general of the Commission, Catherine Day will set out indicators within each benchmark for specific measures to be taken.

A majority of commissioners backed the tone of the report and said the Commission must be tough and rigorous to uphold the credibility of the EU's enlargement policy, while offering the new member states targeted assistance to meet the goals.

The officials said the paper would be slightly redrafted before Wednesday's full Commission meeting, but the balance would not be changed.

Bulgaria, Romania Dodge Safeguard Clause - Report

Sofia News Agency

25 June 2007, Monday

Bulgaria and Romania escape safeguard clauses, sanctioning them over their progress in the field of justice and the fight against corruption, but have to stay under EU Commission's watch till mid 2008, reports due to be published on 27 June state.

The news on the progress reports on the two countries cropped up simultaneously from the EUexpands.com, Europe.bg and Radio France Internacional Romania on Monday.

None of the countries have fully addressed the "benchmarks" set out in the connection with fighting corruption and justice reform.

Brussels chose not to punish the two by the activation of the safeguard clause, as the EU Accession Treaty gives the possibility to do, but to maintain the pressure on both Bucharest and Sofia.

Therefore, since some progress is listed, the conclusions of the report on Bulgaria, which is said to have performed less impressively compared to Romania, is believed to escape punishment if continues efforts with "diligence".

EU Commission experts say they would update these reports in the beginning of 2008 and then make a detailed analysis in mid 2008.

Brussels officials, as quoted by Radio France International, warn that tolerance is out of the question in the fight against corruption for both countries.

The main accent in the report on Bulgaria is on the justice system, the fight against corruption and organized crime.

Reforms in the justice system and fight against corruption and organized crime are on a larger scale and Bulgaria would need many years to implement them properly, the report states.

Monday, June 25, 2007

Renault expands in Romania

Source: The Engineer Online

Renault has announced plans to invest around €100m over the next two years on Renault Technologies Romania (RTR), a regional engineering centre which develops vehicles and powertrains.

RTR will employ around 3000 people by the end of 2009 to make the products at regional plants and market them in Central and Eastern Europe, Turkey, Russia and North Africa.

According to Renault, RTR, along with other regional engineering centres in Brazil and Korea, will support Renault’s international development programme, under which 26 new models are to be released by 2009.

RTR will handle the development of powertrain and vehicle projects to be made at regional production plants or sold on Euromed regional markets. This includes vehicles based on the Logan platform. RTR is currently working with Renault’s Western European engineering team on a number of vehicle projects and will eventually become the engineering hub for all vehicles developed on the Logan platform.

Renault Technologies Romania will be split across sites in Bucharest and Pitesti, and a new test centre scheduled to open in the second half of 2009.

Romania Justice Minister Rejects Corruption Charge

Source: BIRN

25 06 2007 Bucharest __ Romania’ Justice Minister, Tudor Chiuariu, on Monday accused his former colleague, Monica Macovei, of “positioning herself against Romania’s real interests” following her criticism of the alleged lack of real reform in justice.


Chiuariu’s comments came after Macovei, a former justice minister who lost her job in April due to bickering among top politicians, on June 24 presented an independent study accusing the authorities of delaying fraud trials, and of “institutionalised corruption”.
Chiuariu said that Macovei’s comments were wrong, recalling that in early May parliament unanimously adopted a law to establish a National Integrity Agency, ANI, whose main aim is to monitor the wealth of politicians. “This type of institution is unique in Europe and shows the country’s commitment in fighting corruption,” the Justice Minister said.

The disputes between Chiuariu and Macovei have come at a critical time for Bucharest, which is anxiously waiting a monitoring report from the European Comission. The EU report, the first on Romania and Bulgaria since they joined the bloc on January 1, is scheduled for Wednesday.

While previous comments suggested Romania risked crossing EU justice tripwires if it did not register more progress in fighting corruption and consolidating the legal system, a today report from Radio France International, RFI, suggests the contrary.

RFI quoted excerpts from the EC document, which said that despite clear shortcomings, “Romania has made progress in reforming its judiciary”.

The EC Commission is concerned mainly about the independence of ANI, which should function as of October. Other worries voiced in the report concerned property restitution.

Reforming justice was the most important pre-requisite for Romania before it joined the EU. In recent years, the Balkan country has taken important measures of fighting crime and corruption and carrying out administrative reforms.

Romania Postpones Landmark Corruption Case

Source: BIRN

25 06 2007 Bucharest __ The Supreme Court in Romania on Monday postponed by three months the initial hearings in a graft case involving the former prime minister, Adrian Nastase.

The delay raised eyebrows at a time when the Balkan country is trying to prove it is serious about fighting corruption.

Hearings were postponed until 19 September on procedural grounds. The trial is seen as a test of the ability of the reformed judiciary to prosecute top-level fraud.

Adrian Nastase, Romania’s left-wing premier between 2000-2004, was indicted in November on charges of blackmail and taking bribes worth some 1.4 million euro. Prosecutors expanded the case in May, saying he promoted an official to the top of the state agency combating money-laundering in an effort to stop an investigation into a bank account belonging to his wife.

Nastase has denied all charges but lost his post as the leader of the opposition Social Democrat party last year.

Romania, which is waiting an European Commission report on June 27 about its
progress in reforming the judiciary, has made efforts to introduce new anti-corruption institutions. But it remains the most graft-prone country in the EU, according to the organisation Transparency International.

Romania: EC report won't propose fund reduction

European sources said the Commission could propose a partial block in funds for Bulgaria, but Romania is in no danger of receiving less money


“The report which will be passed by the Commission refers to the legal system and the issues related to corruption and organized crime in Romania and Bulgaria and will not deal with the funds granted by the European Union,” said Mark Gray, a Spokesman for the EC. Other European sources however said that Bulgaria risks a partial blockage of the funds because of high concerns regarding Bulgarian authorities ability to fight corruption and organized crime.

Gray said that the Commission will later on this year analyze the situation and decide whether it is necessary to propose such measures, after a separate audit to establish how each of the two countries created appropriate financial control mechanisms. The same sources said that the European Commission could trigger at least one safeguard clause for Bulgaria in order to prove to EU budget contributors that their interests are protected and to put pressure on Sofia authorities so that they enforce more severe measures to fight corruption and to improve public administration. Such action is unlikely in what regards Romania, the same sources said.

The EU should grant Romania €11.5 billion ($15.4 billion) between 2007 and 2009, while Bulgaria is scheduled to receive €4.6 billion ($6.2 billion). Bulgaria's European Commissioner Meglena Kuneva recently said that Bulgaria amended Constitution to ensure justice independence as required by the EU and that the country has made progress in fighting organized crime. She admitted that one safeguard clause could be triggered if Bulgaria doesn't do anything to prevent this from happening. (portalino.it)

Fabian Romania buys 50 pct stake in Timisoara site for 4.7 mln eur

LONDON (Thomson Financial) - Fabian Romania Property Fund Ltd said it has bought a 50 pct stake in a residential development site in Timisoara for 4.7 mln eur.Coltex, the co-shareholder holding the other 50 pct interest, has entered into a partnership agreement with Fabian to build over 250 apartments and will be the development manager.

Fabian said it acquired 50 pct of a development company owning 1.1 hectare site in North Timisoara, the equity consideration of which amounted to 1 mln eur.The development company has secured and fully drawndown on a land finance facility from Banca Romaneasca for 3.6 mln eur.Mark Owen, property director of Fabian Capital, the company's investment adviser said: 'This is the first investment for Fabian outside Bucharest and our second residential scheme. The purchase price for the land is extremely attractive relative to comparable plots in Bucharest.'

Bear mauls U.S. tourists, 1 dead

BUCHAREST, Romania (AP) -- A bear attacked a group of U.S. tourists on a remote trail in the Carpathian Mountains, killing a woman and injuring two other people, authorities said Sunday.

The attack happened Saturday night at around 10 p.m. (2000 GMT) when the group of six tourists were on their way to a cabin about 120 kilometers (75 miles) north of Bucharest.

The victim, a 31-year-old woman, died from her injuries shortly after the arrival of rescuers, state news agency Rompres reported, citing local police officials.

The group initially spotted the bear near a cabin and chased it away when it tried to approach them, but the bear appeared later on the trail and attacked the group, Paul Sasu, a local police officer, told Rompres.

The bear initially attacked a 26-year-old woman, then after she fell down and the other tourists threw stones, it switched its attention to a man. It bit him on the leg, and then mauled to death the 31-year-old woman, despite desperate efforts by the others in the group who threw stones at the bear.

The bear had earlier bitten a Romanian tourist on the shoulder and attacked sheep, Andi Mihai, one of the members of the rescue team, told news television Realitatea TV.

Romania is home to about half of Europe's brown bear population, but attacks on humans are rare. Three years ago, two men died when they were attacked by a rabid bear.

Authorities were searching for the bear to euthanize it.

Details on the identity and hometowns of the victims were not immediately available.

Pyjamas pile up for Romania

Source: This is Lancashire


Dozens of pairs of pyjamas have been donated to sick and poverty-stricken youngsters in hospital in Romania.

Shoppers in Bolton donated the nightwear, or went especially to buy some, when the Rotaract Club of Bolton held a special event.

Volunteers dressed in their pyjamas to tell passers-by in the Crompton Place shopping centre about the plight of the children.

Louise Tansey, Bolton Rotaract president, said: "We couldn't believe the response. So many people stopped to ask questions and then many of them bought pyjamas to donate to us. These children are extremely poorly. Many live in poverty and don't have their own nightwear. So when they go into hospital they have nothing to sleep in.

"If we don't do something about that, then no-one will."

The pyjamas will be sent to the Santa Maria Children's Hospital in Iasi, one of the biggest cities in Romania.

Rotaract is a branch of the Rotary Club for younger members, aged 18 to 30.

Sunday, June 24, 2007

Mountain men's life under threat

Shepherds of the Transylvanian peaks face EU rules that may rob them of their traditional work

Daniel McLaughlin in Piatra Craiului, Romania
Sunday June 24, 2007

Observer

The huge white dogs are used to fending off wolves, bears and lynx, and they erupt when a stranger approaches the shepherds' camp high in the mountains of Transylvania.

The men call them off with shouts and whistles and return to milking their flock, but remain alert for one dreaded visitor - a government inspector who could end their ancient way of life at a stroke. The Transylvanian shepherds make cheese, milk and butter in the same way as their ancestors, but since Romania joined the European Union last January, time is running out for these long-held traditions.

The EU wants to stop the sale of dairy products made without modern sterilisation, cooling and transportation equipment - an impossibility for poor men who eke out a living in a wild and beautiful place where running water means a mountain stream and electricity only flows in the lightning that crackles over their pastures.

'I've been doing this 43 years and it hasn't changed,' said Aurel Cotinghi in the pungent little cabin where he makes cheese, as his two sons continue milking outside. 'Now I suppose things will change, but no one has explained it properly to us. Sometime, someone will have to tell us what to do or they will just close us down.'

Farming groups say the Romanian government has done nothing to prepare them for the shock of joining the EU, or to help avert a ban on vital sales of dairy products domestically or in lucrative foreign markets.

'Lots of young people have left to go to Italy and Spain and 14 shepherds in this area have just left to pick cucumbers in Germany,' says Eugen Gontea, head of the local farmers' association.

'Measures adopted by our officials have completely paralysed the shepherds. They are scared and panicking. They've taken steps to forbid the seasonal movement of livestock, which applies to 80 per cent of our sheep, and 40 per cent of shepherds aren't milking their sheep now because they fear they won't be able to sell the cheese.'

Many Romanian farmers fear the government wants to wipe out smallholders and create a series of 'super-farms' that meet EU norms; and they suspect that Brussels would like to eradicate the small-scale dairy producer, to open the Romanian market to imports.

A deadline for farmers to comply with EU food safety standards - the end of this month - has been postponed until the end of December. But that will make little difference unless Romania launches a massive education and investment drive in its mountains.

'We need investment to overcome our natural hardships: no access roads or infrastructure, no electricity, rugged terrain where transport can only be by donkey and horse, shepherds taking sheep 60 miles to pasture,' said Gontea.

'Wolves and bears take the sheep and attack shepherds. Four were attacked and one died last year,' he said. 'Few young men want this work and girls won't marry those that do. Who'd be mad enough to go into the mountains in these circumstances?'

The shepherds' hard lives are shaped by landscape, the elements, tradition and superstition and follow a cycle that their remote forbears would easily recognise. They gather sheep and cows in late April or early May from village smallholdings and backyard pens and lead them up through forests and orchid-strewn meadows to lush pastures beneath the mountain peaks.

There they build a wooden stockade for the sheep and use their milk to make several types of cheese in the small shack that is their only protection from sun, wind and fierce summer storms.

Then they wrap the salty cheese in softened pine bark to make packages for livestock owners and village markets, where the shepherds arrive on carts drawn by horses and donkeys that wear red pom-poms on their heads to ward off the 'evil eye'.

In early autumn, the animals are taken to lower pastures and, when the first snow falls, the shepherds drive them back through the villages and return them to their owners, using a tag or a paint-marked rump to identify where they came from back in springtime.

For some shepherds and sheep, however, the journey is just beginning: livestock owners who do not have enough hay to feed their animals through winter leave them with the shepherds, who move across the country building huge flocks that they drive south to warmer pastures, often halting traffic for hours on major roads as they cross.

Watching over some 280 sheep and 40 cows in the pastures beneath the 2,000-metre Piatra Craiului mountains, Cotinghi says he gets around £3,000 from their owners to look after them for six months. It is a meagre wage for four shepherds to share, especially if they have to compensate an owner for an animal killed by a predator.

'If we lose the sheep from the mountains, we have lost the mountains: the whole ecosystem will be destroyed and the wild animals will come to villages looking for food,' said Gontea. For Cotinghi's 19-year-old son Bogdan there is little to recommend this tough existence. 'Perhaps I'll be a carpenter,' he said as his father prepared a lunch of bread, cheese and spring onions. 'There's no way I'm doing this for the rest of my life.'

Saturday, June 23, 2007

Poland and Romania: Take responsibility for secret detention sites

AMNESTY INTERNATIONAL
PRESS RELEASE

AI Index: EUR 37/003/2007 (Public)
News Service No: 119
22 June 2007


Amnesty International calls on Poland and Romania to conduct independent, impartial and thorough investigations into new information concerning CIA flights and secret detention centres on their territories. All European governments must ensure that the truth about unlawful activities carried out by national and foreign officials in their territory or elsewhere in the context of the US-led rendition and secret detention programme is exposed.

Amnesty International makes these calls as the Parliamentary Assembly of the Council of Europe (PACE) is preparing to debate Senator Dick Marty's latest report on 27 June. The report contains new information about the complicity of European governments in the CIA programme of rendition and secret detention.

Amnesty International calls on PACE to adopt the draft Resolution and Recommendation on rendition and secret detention accompanying Senator Dick Marty's report.

PACE's Committee on Legal Affairs and Human Rights "now considers it factually established that secret detention centres operated by the CIA have existed for some years in Poland and Romania". The delegations to the PACE of Poland and Romania have rejected these findings, but their denials remain hollow in the absence of impartial and thorough investigations.

"Europe's political leaders must take a clear stand against rendition and secret detention, wherever they occur. The decision-making bodies of the Council of Europe and the European Union have yet to publicly condemn the US's secret rendition and detention programme. They must demonstrate strong commitment to ending Europe's complicity in illegal counter-terrorism practices," said Claudio Cordone, Senior Director for research at Amnesty International.

"While there have been credible efforts to investigate and ensure accountability for past violations, these have happened largely in spite of governments, rather than with their full support. Continued denial in the face of mounting evidence undermines the credibility of European governments and officials."

See also: Council of Europe: Amnesty International calls for action against renditions http://web.amnesty.org/library/index/engeur100032007

Romania's biggest hydropower plant reduces output

The electricity output for the national system from the Iron Gates I power plant, southwest of Romania's capital Bucharest, dropped significantly because of a drop in the flow of the Danube, said a senior official of the company on Friday.

Compared to the average flow of the Danube in June, which is set at 6,400 cubic meters per second, the present flow from this river is only 3,600 cubic meters per second, said Theodor Pavelescu, general manager of the Iron Gates branch of Hydroelectric Company.

Due to the drop in the flow of the Danube, the six upgraded hydro-generators at Iron Gates I can produce only 11,000 megawatts of electricity per hour at present, far less than the normal output of 17,000 megawatts of electricity per hour.

A similar drop in electricity supply occurred in 1993 when the Danube's flow dropped to 2,600 cubic meters per second, said Pavelescu.

The Iron Gates I power plant is the biggest hydropower plant in Romania. Its electricity output accounts for nearly 20 percent of the nation's energy supply.

Source: Xinhua

Romania to hire charter plane to repatriate its citizens from Gaza

The Romanian government will hire a charter airplane to repatriate 31 Romanian citizens from the Gaza Strip whose security is endangered by the latest developments in the area, Romanian Prime Minister Calin Popescu- Tariceanu and Foreign Minister Adrian Cioroianu announced on Friday.

There are currently 15 women, 15 children and one man of Romanian citizenship in the Gaza Strip who should be brought back to Romania on Saturday.

"Following consultations with Israeli authorities, a decision was made to evacuate the persons in question on Saturday. Taking into account the decision of Israeli authorities to shut down the airport in Tel Aviv for such operations, the Romanian citizens will be repatriated via Jordan," the Romanian Foreign Ministry said in a press release.

According to it, the Israeli authorities will cooperate for the transfer of the Romanians from Gaza, via Israel, to Jordan. They will next leave Amman by a charter flight, ordered by the Romanian government. The Romanian citizens will arrive in Romania on Saturday night.

Some of the women are religiously married to Palestinian men, but religious marriage is no impediment to repatriation in administrative terms, according to Cioroianu.

Tariceanu said in turn the situation in the area is getting increasingly tensioned, not only because of the conflict between the Fatah and Hamas groups, but more because of the overall situation, which risks degenerating and Israel probably has some designs about it.

Source: Xinhua

Romania to cut 2007 budget deficit to meet European rules


By Luiza Ilie - Reuters

BUCHAREST – Romania’s government plans to lower this year’s budget deficit by 0.2 percentage points to bring the target in line with EU requirements, Finance and Economy Minister Varujan Vosganian said yesterday. The official target will be lowered to 2.6 percent of gross domestic product, or 2.95 percent according to Brussels calculations, Vosganian said.

Romania, which joined the bloc in January, had initially targeted a deficit of 2.8 percent of GDP, but EU officials have said their accounting standards had put it at 3.2 percent.

Vosganian said the deficit cut reflects mainly an increase in expected revenues, but analysts said new forecasts were optimistic and failed to take into account low tax collection. “The budget deficit, which we will discuss on Wednesday, falls to 2.6 percent from 2.8 percent of GDP,” Vosganian stated. ”We are not reducing spending that much, we are adding various revenues, mostly from taxes on profit.”

The Black Sea state has often been criticized for poor transparency of its public finances. The International Monetary Fund has said disclosure is crucial to boosting spending efficiency and making badly needed infrastructure improvements.

In recent months, both the IMF and Brussels have urged Bucharest to tighten fiscal and budget policies, saying revenue projections were overestimated and spending plans unrealistic.

“The cut is to avoid excessive deficit procedures from the EU,” said Ionut Dumitru, head of research at Raiffeisen Bank. “It remains to be seen where they made the 0.2 percentage points adjustment, but the ‘more revenues’ argument does not hold.”

Harmful leu

The economy minister also said next year’s budget revenues would be damaged by the steep appreciation of the leu currency, which is also hurting exporters.

“For certain industries, such as textiles, the effect (of the leu’s rise) is very serious and all modernizing efforts do not manage to restore the pace of this sector,” Vosganian said.

“We will have some negative implications on revenues next year because of the evolution of the exchange rate,” the economy minister added.

The leu hit its highest level against the euro since October 2002 this week at around 3.2 per euro on foreign interest, after rising more than 4 percent so far this year.

Romania: Once bitten, twice smitten

The Independent

The last time Simon Calder visited Romania, he was arrested and deported. This time, the locals were much more friendly, and the Dracula restaurant even has a vegetarian option


It's like Baghdad here," explained Iulian as he turned from the main road into a side street as gloomy as the gathering dusk. "We pick you up, go and meet some men with guns, and take all your money." Then he roared with laughter – as did I. Iulian was an engineer, civil in both senses, who had rescued me from the roadside 50 miles north of Romania's most beautiful big city.

Highway deliverance in the European Union's latest arrival involves more than picking up a hitch-hiker from an apparently hopeless location in southern Transylvania and transporting him somewhere slightly more sensible. Iulian was travelling with his brother-in-law Ioan ("I" often replaces the English "J" in this island of Romance language amid a Slavic sea) – plus a lamb that bleated from the back of their van.

When Iulian discovered that I was several bookings short of an itinerary, Ioan was detailed to call friends and relatives to book a hostel on my behalf. They dropped me off at the door in Brasov, wished me drum bun – or "bon voyage" – and sped away into the Transylvanian gloom with a farewell bleat from the lamb.

The slaughter in the medieval mayhem of present-day Baghdad bears not the slightest resemblance to 21st-century Romania, despite the truths and myths about the Balkan nation's brutal history. I wanted to test the theory that this Britain-sized country provides the kind of journey of discovery that has long since disappeared elsewhere in the EU.

This time, though, I was taking no chances. Well, all right, I'd made a few time/distance miscalculations as I crossed Transylvania, the province whose name means the "land beyond the woods". But I had no wish to repeat my first experience of Romania, 22 years ago.

Dark days they certainly were. In January 1985, the only light bulbs that Romania's decaying economy was capable of producing had the luminescent intensity of a failing firefly. It was a land of shadows, smothered by the Stalinist dictatorship of Nicolae Ceausescu, and his wife, Elena, a regime that made the Czechoslovak and Hungarian governments look benign.

Into this dismal, despotic land arrived a plane-load of British tourists in search of cut-price winter sports. The ski company Inghams had negotiated a smart deal with the hard currency-hungry Romanian authorities to offer a week's all-inclusive skiing for under £200.

The ski instructors were as keen on black-market currency transactions aboard the chair lifts as on providing tuition. Ski and subterfuge school took place only in the mornings, which left the afternoons free for exploration. One unusually sunny day, I set off for Dracula's abode.

The castle at Bran, whose Mitteleuropa turrets teeter on the brink of caricature, is the start and end of what many people's misconceptions of Romania. The Irish writer Bram Stoker took the Transylvanian reality of a 15th-century prince named Vlad Tepes, also known as Vlad Dracul, then added gore, a Hungarian legend and some oversized incisors. Next, the tourism authorities alighted on Bran castle as the place for visitors to get their teeth into something vaguely historical in an appropriately faux-Hollywood setting. (Stoker's actual inspiration for Dracula's home was a stay at Slains Castle, now crumbling on the Aberdeenshire coast.) After viewing the unhaunted home, I wandered through the village of Bran and casually took a snap of an impressive 19th-century edifice that looked like one of the final flourishes of the Hapsburg Empire.

Click. Clunk.

The heavy iron gate of what turned out to be the local HQ of the Securitate swung shut, and I was on the wrong side of it. The secret policemen had a ball. Photographing sensitive buildings turned out to be a serious offence in Ceausescu's Romania. Three chilling hours later, I signed a bundle of freshly typed documents that confessed to goodness-knows-what misdeeds against the nation and its people, and walked free.

Freedom lasted only until the journey home. At passport control at Bucharest airport, I was taken aside. After 24 hours that comprised an interrogation, an involuntary stay in a hotel and a minute inspection of my map of Romania for evidence of invisible ink, the Securitate concluded (reluctantly, I sensed) they had detained a foolish tourist rather than a devious spy. I was put on the next plane home.

In 1989, the Ceausescus were executed as the final Communist domino tumbled. And this summer, I sought an adventure without the mis-. So I enlisted the help of Romania's representative in London.

At the start of this year, Raduta Matache was everywhere. The acting Ambassador to the Court of St James appeared across Britain's media, briskly refuting the more absurd tabloid claims about the effects of Romania joining the EU. For anyone burdened with a bit of previous, Mrs Matache was the woman to ask.

Her Excellency prescribed a route through the country, and told me how to stay out of trouble. "Smile. Don't travel at night. And call me if you have any problems." Now that's what I call diplomatic immunity.

LOCAL COLOUR

Everything about this train is brown. The plastic veneer of this compartment is the shade of a manila envelope. The imitation-leather seats are a hue that corresponds with Mid Tan Cherry Blossom shoe polish. The curtains are beige, except for a coffee-coloured motif bearing the letters CFR (the abbreviation for Romanian Railways) and a stylised image of a bullet-like train, not a common sight at this end of the Balkans.

Happily, through the brown film clinging to the windows, the land unfolds as a picture of rich tranquillity: folds of deep green drift past, populated with cattle that roam unconstrained by hedgerows. The view drifts off to a range of hills that, every so often, sports a crumbling citadel.

Romanians are prayerful people, judging by the evidence from the average settlement. Along the Mures valley of the Banat – the western province of Romania – even small towns boast an Orthodox and a Catholic or Lutheran church, or sometimes all three. Much evidence remains of Ottoman domination, too: minarets pierce the horizon, while in the foreground dwellings of brick and terracotta gently subside.

The Orient Express used to rumble through this rural backwater, but the area has remained unscathed by tourism. As a result, finding a place to stay can prove challenging. Never mind guidebooks or internet searches; on the train journey from the Hungarian border that winds beside the broad Mures river, I was reduced to hopping off at every station, asking the railway staff if there was a hotel in the village and jumping back on board smartly when each stationmaster shook his red-capped head.

Despite the ambassadorial admonition not to travel at night, the moon was high over the river by the time the tawny (and tardy) train lurched into Deva – the closest approximation to a city hereabouts.

Next day, next train. This one was bright and blue and new and German. With windows as tall as I am, the latest acquisition by Romanian Railways mirrors the old observation carriages that used to rattle through the prettier parts of Europe. The 21st-century version is the ideal way to see how the land lies. Mostly, it lies very prettily. This is one of the best rides in the Balkans, swooping and swerving through the Transylvanian hills that preface this year's European Capital of Culture. Welcome to Hermannstadt.

Officially, this half of 2007's pair of cultural conurbations (the other is the city of Luxembourg) is called Sibiu. Yet the Romanian city spent centuries as Hermannstadt, thanks to an influx of people from Luxembourg and other locations along the Moselle and Rhine valleys of present-day western Germany. The nomenclature gets even more complicated: these 13th-century settlers are called Saxons, though uo there is little evidence of any strong link with that region of Germany.

Whatever you call it, the city comprises an ensemble of elegance – full of handsome houses painted in pastel pink and mint, peach and cream. Last weekend, though, Hermannstadt/Sibiu was occupied by an unusual breed of cultural tourists. As I scrambled up the muddy bank from the railway track (the station is celebrating the year of culture by being closed for renovation), I noticed that a disproportionate number of my fellow travellers were sporting Iron Maiden T-shirts.

I heard Sibiu's city centre – a trio of Baroque plazas that cluster high above the Olt river – long before I saw it. The British rock band Anathema were in town for Artmania (Romania's Glastonbury), and their sound check shook what remains of the 14th-century walls of the city. A man wearing a shirt urging "Death Metal No Compromise" quietly explained that this festival was the high point in the Balkan rock calendar, and the lady in the tourist office confirmed that every hotel and hostel was fully booked for a radius of around 30 miles. Anathema for adventurers.

BODY COUNT

"My friends call me the Englishman," said Sebastian, as he avoided yet another crater, "because I like to drive on the left."

European funds are slowly replenishing Romania's infrastructure. In the meantime, reasons for tourists not to rent a car include lunar-grade road surfaces, poor markings and signposting, and a lethal cocktail of horse-drawn vehicles and assertive drivers.

Sebastian, a salesman for an American multinational, fits the latter category. His car met my thumb at the town of Blaj, sometime home to Transylvania's intelligentsia and a location where the Romanian identity was forged. It is also home to the Uniate church, combining Orthodox and Roman traditions in a manner that reaches a climax in the town's cathedral where the Virgin stands downstage from an elaborate iconostasis.

The Ambassador had sounded faintly disapproving when I'd mentioned hitch-hiking. Yet, as a result of her motoring compatriots' generosity, Romania has rocketed towards the top of the European Hitching Superleague (of which I am self-appointed custodian). The only thing that keeps Germany in top place is the superior highway network and classier range of vehicles. But give Romania another 22 years...

We sped, mostly on the English side of the road, to Sigisoara – a city that is about to hit the British package holiday map. The UK's biggest holiday company is Thomson. In the firm's Lakes and Mountains brochure for this summer, page 25 is occupied by Spain. In next year's counterpart, that honour goes to a tour called "Heights & Sights of Transylvania" .

Clamber up the steps to the enchanting little hilltop city, perched amid a lilting landscape, and you find yourself trying to shrug off the clichés "fairytale", "Hansel" and "Gretel". Reach the main square, and you are confronted by another stereotype: a be-fanged bat invites you to dine at the Dracula Restaurant. The claim behind the name is that Vlad Tepes was born in a house in the area. Touchingly, the Dracula offers a vegetarian platter (heavy on tomatoes), which you can wash down with "Vampire Vodka" or "Werewolf Wine".

The thick soup of central European tribalism is evident in Sigisoara, which has two other identities: Segesvar in Hungarian and Schässburg in German. The latter personality is preserved in the Lutheran church opposite Drac's place. Along with a fine array of 16th-century carpets draped along the walls, a plaque remembers the 56 men and women from Sigisoara who were deported to die in the Soviet Union at the end of the Second World War.

ROYAL RETREAT

From the Count of Darkness to the Prince of Wales: the heir to the House of Windsor has a little-known residence in southern Transylvania.

A truck driver dropped me off on the highway at the start of the five-mile drive to the village of Viscri. It turned out to be a five-mile hike, through countryside unscathed by modernity. The soundtrack soon changed from a baritone roadside rumble to a soprano evening chorus of birdsong.

For centuries, Viscri was Weisskirch. Accounts of the 20th-century depopulation of "Saxon" villages across Transylvania vary. Some say Ceausescu sold German-speaking citizens to the West German government, which paid handsomely to ease the suffering of a minority with whom they shared a language. Others insist that the Germans were among the most eager émigrés in the 1990s, escaping the wreckage of Romania's shattered economy for their ancestral homeland. Either way, their villages lay as abandoned and ghostly as the burnt-out shells of Communist-era factories that blemish Romania's otherwise rosy future.

The Mihai Eminescu Trust has fought to preserve the priceless medieval character of these villages, and has secured a lofty patron in Prince Charles. He has bought a property in Viscri and encouraged others to invest in rural tourism. The result: a thriving community that straggles down a wide Hauptstrasse. Each stout house is painted in turquoise or baby-blue beneath rustic tiles with the hue of tarnished copper, and is joined to the next by a wide, arched gateway. The impression is of a village in which all the homes are holding hands.

Charles and Camilla are regular visitors to this royal retreat, but were not in evidence last Saturday night. As the shadows lengthened and the prospect of reaching Brasov that night dwindled, I went to the only bar and persuaded one of the customers to become Viscri's temporary taxi-driver.

Thirty bumpy minutes and 60 lei (£13) later, Vasile dropped me off at the nearest railway station – and promptly picked me up again, when we worked out that the last train south had departed a few minutes before, and the next was not until the early hours. He drove me to a road junction and gave me instructions to draw a sign reading BV (the number-plate abbreviation for Brasov). I was busily doing so, and wondering what I had done with the Ambassador's phone number, when the guardian angels arrived in the form of Iulian and Ioan, complete with the hitch-hiking god's holy lamb

Brasov has been described as "the next Prague". In fact, it is the last Prague – or at least a close approximation to the medieval mercantile jumble of the Czech capital before the stag parties invaded. I could fend off the "fairytale" tag no longer when I learnt from Iulian and Ioan that the Pied Piper and his troupe from Hamelin re-emerged right in the main square – and that Brasov is one of the key locations for the new Harry Potter film. Just to the south, Sinaia looks even more Ruritanian: Peles Castle, the extravagant winter retreat created by King Carol I, is Romania's signature fortress, a folly fronted by a flouncing statue of the monarch himself.

HIPPIE HAVEN

Fast forward? Not on Romanian Railways, at least for a few more years.

One of the EU's slowest "expresses" starts in the far north-west of the country just before 1pm on Sunday and wiggles across the entire nation at an average speed of less than 30mph, ending up in the extreme south-east at the Black Sea port of Mangalia. This is not quite Romania's last resort; that title goes to Vama Veche, a further six miles south past the cryptically named village of "2 May".

Vama Veche is described in the official tourist literature as "a haven for non-conformists". I searched in vain for the successors to John Bunyan and William Blake, and instead met a bunch of old hippies.

Dorin sported a beard, a ponytail, and fewer teeth in his talkative jaw than he had decades under his belt. The EU was a good thing, he drawled: "We had forgotten we were part of Europe."

We met outside the Punk Rock Hotel, a marginally less fragile structure than the other timber buildings that tumble down to Vama Veche's enticing crescent of sand, complete with beachside bars dispensing banana milkshakes. The sunbathers had shaken off more than the chains of Communism; the women had also unshackled their bikini tops. I made my excuses and left the country.

At the border, I was confronted by two border officials, from Bulgaria and Romania respectively: a squat, scowling, shaven-headed official in green, and a kind and pretty rhapsody in blue.

"Goodbye," she smiled. An easier exit than last time, then. In a generation, Romania has transformed from a land of threat to a land of promise.

Traveller's Guide

GETTING THERE

Bucharest, the Romanian capital, is served from Heathrow on British Airways (0870 850 9 850; www.ba.com) and Tarom (020-7224 3693; www.tarom.ro), and from Luton on Wizz Air (00 48 22 351 9499; www.wizzair.com); Wizz Air plans a new service from Liverpool from October.

For western Romania, the best gateway is Budapest; the Hungarian capital is served from Heathrow, Gatwick, Luton, Stansted and Manchester on a range of airlines.

GETTING AROUND

CFR (Romanian Railways) runs an extensive national network, with low fares. Covering 100 miles on the slowest trains costs 15.50 lei (£4); " accelerat" services 29 lei (£7.60); "rapid" trains 36 lei (£9.70); and Inter City 40 lei (£10.60). Services are neither frequent nor predictable: schedules on station notice boards differ from those printed in the national timetable, which in turn are at odds with those available online at www.infofer.ro.

Private minibuses operate on local and rural routes, and supplement rail services over longer distances; they are more expensive, but often faster and more frequent.

MORE INFORMATION

Romanian National Tourist Office: 22 New Cavendish Street, London W1G 8TT (020-7224 3692; email: romaniatravel@btconnect.com)

Friday, June 22, 2007

Reuters: Fight against fraud stalls in Romania and Bulgaria

Six months after joining the European Union, Romania and Bulgaria have failed to demonstrate credible progress in fighting systemic corruption and organized crime, despite broad legislative reforms.

The lack of results is raising concern in Brussels and some EU states say the poor Balkan duo may have joined too early.

The new EU members are still subject to monitoring and face sanctions after a June 27 report from the European Commission if they do not meet requirements on combating abuse.

Both have revamped their justice systems and passed laws to set up graft-fighting institutions, in line with EU demands. But observers say results are stymied by hesitant policymakers, political feuds and ineffective state administration.

"We haven't seen any evidence of results, any impact on society," said one EU diplomat in Bucharest. "They should have produced more proof they are intent on fighting corruption at all levels."

Observers say fraud is so entrenched in the Romanian and Bulgarian establishment that many local politicians are reluctant to implement effective reforms. Judiciaries are often too close to crime groups and new laws lack implementation mechanisms.

Add deepening rifts within ruling parties as governments in Sofia and Bucharest watch their popularity sink, and reforms have all but stopped since the two joined the EU in January. In Romania, the architect of a sweeping overhaul of the judiciary, former Justice Minister Monica Macovei, lost her job in April due to bickering among top politicians. Observers say her replacement, Tudor Chiuariu, is weak and ineffective.
In Bulgaria, where organized crime is the key problem, civil society groups complain anti-graft legislation lacks concrete measures to combat abuse, while corrupt public procurement deals still siphon out millions of euros a year from the state budget.
The Socialist-led government has met most legislative demands from the EU but has shown little resolve to push for quick results in combating the country's powerful crime gangs.

Diplomats say public officials are often involved with groups connected to former secret services agents and running vast parts of Bulgaria's tiny economy. No one has been convicted for dozens of contract killings in recent years.

Instead, Sofia's top prosecutor recently said patience was needed to weed out fraud.

Renault to invest 100 mln eur in new engineering division in Romania

PARIS (Thomson Financial) - Renault said it plans to invest 100 mln eur over the next two years in Renault Technologies Romania (RTR), a new engineering division that will develop vehicles and equipment to be produced or sold in Central and Eastern Europe.

Like existing regional centres in Brazil and Korea, RTR will form part of the Renault (other-otc: RNSDF.PK - news - people ) Engineering global function, which is responsible for developing eight new models per year under the group's programme to 2009.

According to Renault, RTR will operate across three sites in Romania: a design office in Bucharest; the Pitesti production plant; and a future test centre to be launched in the second half of 2009.

GayFest: Live from Romania

Between The Lines Newspaper
by Rev. Mark Bidwell

BUCHAREST, ROMANIA - Despite rain the GayFest march went on as planned for almost a year.The event served as a reminder to me that we in the United States take pride events for granted. It also made me fully aware that we should never be complacent in fighting for the rights of all LGBT people in all countries. I'm sure the recent violence and oppression of gays and lesbians in Russia affected this event both for those marching and those protesting. Tension was in the air.

"As we arrived at the march site in the heart of the city the first thing we saw were 20 armored vehicles, each holding 20 to 30 police personal with helmets and weaponry. We were about 300 to 400 very worried -- but nonetheless brave -- marchers, outnumbered by about 500 -- concerned and very wary -- police officers. (The number of LGBT marchers was down from the first march. Even in Romania, it seems many gays don't like to get wet!)

"The police marched with us step by cautious step. 12 man-made smoke bombs were thrown at the vehicles escorting us as we marched inside their narrow corridor of safety. The hour-long march seemed an eternity. Four hours after the march we heard no reports of actual violence done to LGBT people (although the BBC later told the real story). At a gay film showing a few nights prior to the parade one gay man was seriously beaten as he left the movie house.

"Fortunately because I speak no Romanian I didn't understand what the protesters were angrily screaming and shouting at us. (The words certainly didn't need any translating. Hate is hate in any language.) Protesters had held a counter march earlier in the day with several hundred attending. Several arrests were made.

"'Axil', a German MCC minister, and I carried an MCC banner with 'God loves all' in Romanian. It was a hit with the TV news crew. We supplied many marchers with face masks to shield their identity from family, friends, and coworkers, enabling them to be, if not fully out, an important part of the body count. Our rainbow-colored plastic Pride Bracelets were popular. I took pictures of several persons proudly wearing them. We also printed cards for distribution with contact information about our Sunday service, to be held in an out-of-the-way building in Bucharest where pride events are often being held. The service was well attended. We also distributed literature and books on transgender issues -- information very scarce in Romania.

"LGBT Romanians are proud, dedicated to on-going, activist organizing, and determined to speak out for acceptance as citizens with full human rights and dignity. In many ways their struggle is our struggle."

ROMANIA: Cannes Award Brings Back Memories


By Claudia Ciobanu
BUCHAREST, Jun 22 (IPS) - A Romanian triumph at the Cannes film festival this year has revived painful memories for thousands of women.

The film '4 months, 3 Weeks, and 2 Days' presents the picture of illegal abortions during the communist days in Romania. Scriptwriter and director Cristian Mungiu tells the story of a university student trying to get rid of an unwanted pregnancy with the help of her roommate.

The two young women are forced seek the help of "Mr. Bebe", a fixer who takes advantage of them. The story is set in the late 1980s during the Communist dictatorship of Nicolae Ceausescu, when abortions were illegal.

Mungiu said the experience of someone he knows inspired him to write the script for this film. Most Romanians have a relative or a friend who terminated a pregnancy in illegal and dangerous circumstances.

Mungiu's film has not yet been distributed in Romania. Still, people talk about it as if they have seen it already.

"This film came to me in a period when I am looking back at my life," said Crenguta, 55, an accountant from Brasov. "My two children have grown up. They are the same age I was when I was making the abortions. Looking at them, I wonder how I survived all those attempts. My body was very strong. And I ignored most of the dangers I was putting myself through."

Abortions were allowed in Romania until 1966, when the Communist government passed a decree making them illegal. Women who violated the law could get between six months and two years in prison. Doctors who carried out abortions without permission could get between one and three years imprisonment.

Pregnancy-related medical procedures undertaken in hospitals were supervised by special commissions made up of prosecutors, members of the secret police, of the Communist Party and sanitary inspectors.

Given the high risks, women would rarely find a doctor who would carry out an abortion. Many tried to terminate the pregnancies themselves or looked for midwifes who claimed experience in childbirth and abortions.

"Out of desperation, women would resort to insane methods," medical generalist Elena Borza explained. "They would use salt, detergent, or any other substance which they thought could help them get rid of the baby." Women would inject such substances into the uterus, hoping this would eliminate the foetus.

Other methods involved drinking large quantities of red boiled wine, injecting hormone-based substances in their veins, and hitting themselves in the belly.

Women were often unaware of the serious threats posed by these procedures. According to data provided by the National Centre for Statistics and Legal Medicine, between 1966 and 1989, more than 9,000 women died because of such clandestine abortions.

"These techniques would cause inflammation of the uterus. Many women would become infertile after that," gynaecologist Anca Galitianu told IPS. "Sometimes, the infections were so severe that the women died."

Maria, 50, a kindergarten teacher from Brasov, thinks that the tumor in her uterus could have been caused by abortions done through inappropriate methods. "Nobody told me that, but I know what I have done to my body. I must have injected alcohol or etilic acid in my uterus on at least five occasions. I didn't know what I was doing then, but I am feeling the consequences today."

After the first birth, Maria's husband did not want any more children. "Sometimes, if he got mad at me, he would even threaten to tell the police I made the abortions," she said.

The brutality of the abortion methods and the constant state of fear imposed by the regime would often place a heavy burden on the couple.

"I will never forgive my husband for not helping me when I almost bled to death during an abortion," says Valentina, 54, a physical education teacher. "I was just sitting over the bowl, which was filling up with blood. We were afraid to call an ambulance because they would understand what I did, and arrest me." Valentina added that, after that, she could never have sexual intercourse again.

"I remember once the pain was so much that I had to go lie down on the cool, concrete floor of the balcony to feel better. But it kept hurting. I never thought I would survive that," Maria recalls. "I did survive it," she added, "but the pain and the fear gradually weakened me. I remain a vulnerable person."

Abortions were legalised in Romania in December 1989, through the first decree passed by a revolutionary government brought to power at the end of a popular revolt against the Communist dictatorship.

Crenguta, Maria and Valentina all have adult daughters. Crenguta said the story of Mungiu's movie made her talk to her daughter about pregnancies and abortions all over again, just to make sure her daughter is never in need of advice and afraid to ask for it.

DPA: Heat kills 19 in Romania, but higher temperatures to come


Bucharest - Persistent heat of 35 degrees celsius has caused 19 deaths in Romania by Friday morning, but the worst was yet to come, meteorologists and medical services warned. The people who succumbed to the heat were mostly older or chronically ill people, according to the health ministry. In Bucharest alone 143 people passed out in the searing heat on the streets.

After hovering around mid-30's since the start of the week, the temperature was expected to rise to 38 in the coming days. The heat in the streets is already higher, since the temperature is measured in the shade and away from the concrete and asphalt.

Of the 41 Romanian districts, 23 have declared emergency measures to deal with the heat and help people with health problems.

Prime Minister Calin Tariceanu Popescu threatened dismissal to all local officials who failed to take steps such as to erect tents on the streets for emergency treatment and rehydration of stricken pedestrians.

The heatwave has been accompanied by a drought which has dried out the artesian wells in 16 municipalities, where drinking water had to be brought to the population in cisterns.

The interior ministry said that it could ban the watering of gardens and farms if the situation remains grave.

The heatwave has also gripped other Balkan countries, which, unlike Romania, have had no formal heat alerts, despite temperatures higher than 35 degrees or more.

An increased number of emergency calls was reported across the region, in Serbia and Kosovo, Croatia, Bosnia, Albania and Macedonia.

In Albania, the ATA news agency said that two people succumbed to the heat in the Elbasan in the south.

In Croatia the parliament speaker, Vladimir Seks, had to postpone scheduled meetings because of his heart condition. The Adriatic Sea was warmed to an unseasonable 26 degrees at Split.

The Black Sea waters along the Bulgarian coast were also warmer than usual, reaching 25 degrees.

Im Banja Luka, in northern Bosnia, the temperature reached 41 degrees on Thursday, local reports said.

Brussels "Concerned" over Stalled Corruption Combat in Bulgaria, Romania

Sofia News Agency

Romania and Bulgaria have failed to demonstrate credible progress in fighting systemic corruption and organized crime, raising concerns in Brussels, Reuters wrote.

The article cites observers saying that results are stymied by hesitant policymakers, political feuds and ineffective state administration even though both countries have revamped their justice systems and passed laws to set up graft-fighting institutions, in line with EU demands.

"We haven't seen any evidence of results, any impact on society," said one EU diplomat in Bucharest.

"They should have produced more proof they are intent on fighting corruption at all levels."

Observers say fraud is so entrenched in the Romanian and Bulgarian establishment that many local politicians are reluctant to implement effective reforms, Reuters comments.

The EU is to issue a progress report on the state of justice, corruption and organised crime in Bulgaria and Romania on June 27th.

The European Commission has steadfastly refused to confirm claims that its upcoming assessment report on Bulgaria will not propose safeguard clauses in justice and home affairs.

Latest unofficial reports that the EU is likely to trigger at least one financial safeguard for Bulgaria and none for Romania.

ROMANIA AND BULGARIA FAIL SHOWING PROGRESS IN FIGHT AGAINST CORRUPTION- REPORT

Sofia News Agency
15:02 Fri 22 Jun 2007

Bulgaria and Romania still fail registering progress in the fight against corruption and organised crime after the EU entry of the two countries.

Reuters news agency reported that the two countries may face sanctions after European Commission announces its report on June 27.

Despite changes in justice systems in both countries, improvements in the sphere are still insufficient. The report said that main factors hindering the reforms include political controversies and bureaucracy.

The ties of Bulgarian and Romanian magistrates to criminal groups, combined with lack of effective laws feature among reasons for stalling reforms, the report said.

Organised crime is the key problem in Bulgaria. Shady public procurement deals divert millions of euro a year from the state budget, the report said.

According to the report, many of Bulgaria’s public officials were previously connected to intelligence services in the country. A number of public murders in the country remain unresolved, the report said.

Biking Tour of Romania starts on Sunday

The caravan of the 44th edition of the Biking Tour of Romania will set off in the race on Sunday from Mioveni, about 100 km to the west of Bucharest.

The official caravan will run over 1,100 km divided into eight stages and challenging the participants with 21 sprint stretches and 24 mountain climbing sections.

In the first day of the Tour the contestants will ride 174 km west to Targu Jiu. They will cross the finish line on July 1, 2007 in Botosani, northeastern Romania.

The almost 100 participants are from Romania and another nine countries: Greece, Germany, Moldova, Albania, Bulgaria, Ukraine, The Netherlands, Serbia and Turkey.

Source: Xinhua

FT: Awaiting its makeover

By Christopher CondonThu Jun 21, 10:22 PM ET

In a city known for its ghastly architecture, choking traffic and unrelenting bustle, Bucharest hides an unpolished gem right in the heart of its downtown. The area is rich in history, oozing an atmosphere that is equal parts neglect and new life. Yet it also seems cursed. While property prices and development have soared across the rest of Romania's capital, this most promising of quarters remains best known for what it could be.

"Potential? There is no discussion about it," says Jerry van Schaik, a Dutch businessman who runs a small hotel, a furniture shop and a bar in Bucharest's Lipscani neighbourhood. "But they have to renovate it and do it with style."

Lipscani is a jumble of streets in the city centre first settled in the 16th century. It lies just north of a vast stretch of the capital levelled by Nicolae Ceausescu, the Communist dictator, and built up with drab apartment blocks, office buildings and the infamous People's Palace. Luckily for Lipscani, Ceausescu simply let it rot and so it survived. The area is decrepit but it has all the ingredients necessary for a signature urban quarter. With its graceful architecture and narrow lanes, it can easily be imagined as a tourist magnet capable of redefining Bucharest's dismal image.

Instead, despite the economic boom that surrounds it - Romania's economy grew 8 per cent last year on the back of EU9bn in foreign investment - Lipscani is a mess. The cobble-stoned streets are pocked with sizeable craters that become dangerous after nightfall because few of the streets are well lit. Basic infrastructure, from water pipes to power lines, badly needs upgrading. Most of the 300 buildings in the neighbourhood lie in a serious state of disrepair. Many are vacant or occupied by poor squatters to whom the city has offered no alternative housing.

The mess is more than physical. Because of restitution claims from families that lost property under Romania's fascist and Communist regimes, ownership rights remain unclear for about 35 per cent of the buildings, according to the city. And, most controversial to businesses and others who want the area revived, city hall has stumbled in implementing a comprehensive plan to redevelop Lipscani. The city did ban vehicle traffic from the neighbourhood in early 2005. But because no other progress has been made, the severity of the ban has only served to damage the local economy.

"This is a microcosm of Romania," grumbles Van Schaik, who heads a group of entrepreneurs that has lobbied city hall on the project for more than two years, "full of business opportunities and incompetent people who won't let it happen."

That a Dutch businessman should be a leading figure in the Lipscani story is somehow appropriate. Beginning in the 16th century, after Mircea Ciobanul, prince of Wallachia, built a royal palace near the banks of the Dombovita River, the area has attracted foreign entrepreneurs. Craftsmen and traders flocked here from Germany, Austria, Greece and Turkey. Today, the street names recall some of the early guilds and professions that occupied the neighbourhood: Selari (saddlers), Covaci (blacksmiths), Sepcari (hatters), Blanari (furriers), Bacani (grocers) and Zarafi (money changers). Lipscani itself is the name of one of the main streets running through the area and means Leipzig, referring to merchants who brought goods from the German city.

Aside from fragments or reconstructions, nearly all of the medieval structures are gone. The oldest extant buildings now date to the 18th century and include Stavropoleos church and Manuc's Inn, a guest house for travelling merchants. The vast majority of buildings, however, were erected in the 19th and early 20th centuries.

According to Adrian Majuru, a Bucharest historian, commerce in the neighbourhood gradually diversified from the basic crafts. By the 19th century and right up until the first world war, Lipscani was known for its luxury goods shops and banks. The British-Romanian Bank operated on Smardan Street. On Selari Street sat the Concordia Hotel, a once prestigious address where, in 1859, the heads of Romania's political parties elected Alexandru Ioan Cuza prince of Moldova and Wallachia, uniting these principalities to create the Romanian national state.

The city says it has big plans to bring Lipscani back to life with funding from the European Bank for Reconstruction and Development, the United Nations Development Programme and its own budget. Beginning with Smardan, Selari and Lipscani streets, the neighbourhood will have its basic infrastructure completely renewed. Street surfaces will be redone and small parks, benches and fountains added. The city will also renovate a number of buildings it owns in the quarter, beginning with 12 prominent houses, and, say officials, force private owners to follow suit or sell. By April 2008, says Catalin Cazacu, the city's chief architect, Lipscani will be reborn.

But officials have been making such promises for at least two years. In January 2005, a representative from the office of urban planning said the new infrastructure would be completed by April 2006. A year past that date, very little work has been done. Cazacu insists no such target was ever in place and he chastises the local business community for being impatient.

"[They should] be more flexible and more interested to understand the complexity of the project," he says.

Cazacu makes a fair point that the plans for Lipscani are ambitious and complex. They require a lumbering and inexperienced bureaucracy to co-ordinate several utility companies and government agencies along with developers, builders and archaeologists eager to study every turn of earth.

Yet there is hardly a hint of progress. Diggers broke ground at the foot of Smardan Street last October but abandoned the site when an 18th-century foundation was discovered just below street level. It remained exposed for months, though archaeologists could have quickly completed their examination of the ruins and allowed work to continue. More recently, work began on a small portion of Lipscani Street but it is progressing very slowly. Making matters worse for local residents and businesses, by nearly everyone's account the city has behaved abysmally at communicating its decisions and plans.

With little work under way and less information available, investment into the Lipscani neighbourhood has moved slowly. "Sooner or later, this area is going to turn to gold," says Andre Sandu, director of Media City, a property agency. But "it could be in two years or 10 years. Nobody knows when."

Price ranges vary according to different agents, though all agree that they have at least doubled over the past two years. Sandu says average closing prices are now EU1,500-EU1,700 per sq metre, but asking prices can top EU5,000 per sq metre. Colliers International, the property agency, says prices are much higher, more in line with or even exceeding prices for new apartment units outside Lipscani. Monica Barbu, head of the company's retail division in Bucharest, says closing prices in Lipscani now top EU4,000 per sq metre on the back of a recent surge in demand.

Agents say both local and foreign buyers have picked up buildings one at a time - but carefully. According to Barbu, non-Romanian investment funds have been active in the neighbourhood as well as individuals, especially from Greece and Spain.

Few are investing in serious renovation, however. Rents remain low and there is no demand for individual apartments. Potential single-unit buyers are, agents say, discouraged by the run-down condition of the neighbourhood and the lack of access by car. So owners sit on their hands. New businesses are moving in but they tend to be bars and cafés; these add some zest but could prove transient.

While investors fret, local residents are even more anxious. In the old Concordia hotel, now a run-down apartment house, a filthy, shaggy dog sleeps on the first floor landing outside the room where Cuza united Romania. Residents emerge, sheepishly at first, from their apartments but then readily vent their frustration at city hall. Conditions are typical for the neighbourhood. They have no gas and no hot water. They use butane tanks to cook and heat their small flats. (The large suites were long ago broken up with thin partition walls.) The residents are technically squatters, though they only stopped paying rent because the owner stopped making repairs. With all the talk of the neighbourhood being renewed, they live in fear that they will be tossed on to the street any day now.

"The city has never told us anything," says Lenuta Patrascu, 48, who has lived in the old Concordia for 30 years. "We only know what we read in the papers."

Other residents and business owners say much the same. Eduard Tanase, has owned Unistrade, an antiques shop, on Lipscani Street since 1990 and has worked in the neighbourhood for 37 years. Since the area was closed to traffic he says his sales have dropped 60 per cent. He thinks he will survive because he is nearly finished paying off a bank loan but "a lot of other businesses are in a desperate situation".

The neighbourhood is awash with rumours that officials are deliberately holding back the redevelopment plan until city hall cronies can buy up a substantial number of properties. Then the project will burst forward. Cazacu dismisses the rumours as absurd and pledges that Lipscani will soon get its long-awaited makeover.

"You will see what happens," he says. "You will be amazed."

Local agents

Media City, tel: +40 21-310 0399; www.mediacity.ro

Colliers International Bucharest, tel: +40 21-319-7777; www.colliers.com

Nursing home donates extra beds to Romania

By Jim Wozniak
Erwin Bureau Chief
jwozniak@johnsoncitypress.com

ERWIN — Having just replaced about 100 of its beds, Erwin Health Care donated the old ones Thursday to a charitable organization that will direct them to a hospital in Romania.

“I’m just tickled to death that this stuff’s going someplace and somebody’s going to be able to use it for hopefully a long time,” said Lori Tilley, the nursing home’s administrative assistant. “I think it makes us appreciate what we have, and we’re just thrilled to be able to help somebody else out like this."

Tilley said the beds are still usable and in good shape, just not working as well as they once did. Now, they are headed to the village of Laslea in the Transylvania region in central Romania.

Representatives of Christian Emergency Relief Team International, based in Crossville, came to town Thursday with a moving truck and loaded the beds. Dr. Jim Mesereau, vice president of operations, said his organization learned about the hospital’s needs when a CERT medical and dental team headed to the region.

“They provide services to people who generally are missed by the rest of the medical system,” Mesereau said. “They’re not receiving a lot of help from other people, and the patients can’t pay. So when this offer (of beds) was made to us, we knew right away we had a place to put them.”

He said the hospital’s director e-mailed him and was excited and wondered when the beds will arrive. Mesereau said CERT will buy mattresses in Romania.

This donation to CERT followed a similar gift of beds by Country Place, a sister facility in Crossville to Erwin Health Care, that went to a different hospital in Romania.

For more information on CERT, visit www.certinternational.or

Another $3,000 Car in the Works

Business Week

It's official -- Renault and Nissan are working on designing a $3,000 car for the Indian market. That move will challenge India's Tata Motors for a slice of the fast-growing car market in India, which is expected to double by 2010. Tata is planning to unveil a bargain-basement car costing $3,000 next year.

In February, Renault-Nissan Chief Executive Carlos Ghosn hinted that he would pioneer an even cheaper car than the trail-blazing $6,000 Logan, which is built in Romania and other emerging markets. The Logan's sales are growing at a breakneck pace, and Ghosn aims to sell 800,000 a year by 2009. Yesterday Ghosn announced in Toyko that Nissan and Renault are exploring the concept together, since many consumers in India can't afford a car that costs more than $3,000.

Ghosn's game plan shows the global race to build really cheap cars is accelerating. Although these no-frills models will probably not be sold in Western Europe or the US, you can be sure that the innovations used to bring costs down will flow through the entire design and engineering chain at Renault and Nissan, helping them bring costs down across the board as they craft a new generation of no-frills models. The question now is: How green will they be. And who else will join the fray.

Doctors perform partial kidney transplant

CLUJ, Romania, June 21 (UPI) -- Doctors in Romania performed a successful partial kidney transplant on a 3-year-old boy who suffered from renal insufficiency.

The child received part of his mother's kidney during a seven-hour operation, Hotnews said. The surgical team was led by Dr. Mihai Lucan at the Urology and Renal Transplant Institute in Cluj, Romania.

Thursday, June 21, 2007

Heatwave kills 19 people in southern Romania

BUCHAREST, June 21 (Reuters) Nineteen Romanians died this week as a heatwave gripped southern parts of the Black Sea country and temperatures reached 35 degrees Celsius (95 Fahrenheit), the Health Ministry said today.

Meteorologists said temperatures were at the highest level in five years and would likely climb further by Saturday, reaching close to 90-year-highs of 40 degrees Celsius in the capital Bucharest.

''The heat contributed to the death of 19 people,'' the health ministry said in a statement.

Television footage showed people jumping into the Dambovita river that crosses Bucharest or into fountains in front of Parliament's Palace, in an effort to cool down.

Authorities have put up 66 tents throughout the main cities in Romania to offer cold water and medical assistance to passers-by.

Drought is expected to last for the rest of the summer, affecting cereal crops and hydropower production, but temperatures should fall below 30 degrees Celsius from Wednesday, meteorologists said.

UK skills shortages crisis set to deepen despite migrant workers - survey


LONDON (Thomson Financial) - The current skills shortages crisis in the UK is expected to deepen, despite employers looking to source a greater number of staff from other countries to plug the shortage, according to a survey by recruitment company Vedior.

In an interview of human resources managers for the survey, Vedior said that 38 pct of those managers expect the skills crisis to get worse in the next few years.

The skills gap has led to 40 pct of the organisations polled in the public, manufacturing and services sectors to say it is very likely they will have to raise salaries to attract and retain the right people. This was more acute for manufacturers.

Rate-setters at the Bank of England have expressed concern about rising wage pressures feeding through into broader inflation in the economy.

The most commonly cited shortage is engineering skills, faced by 20 pct of organisations, followed by 10 pct each for skilled manual positions and financial specialists. Amongst public sector organisations, 32 pct face a shortage of healthcare workers, and 18 pct skills in finance.

A hefty 67 pct of the organisations interviewed feel that membership of the European Union will help them to fill skills shortages, with nearly a quarter saying that eastern Europe provides the best source of foreign talent for this, way ahead of France (9 pct) or Germany (8 pct), or Asia which barely featured (India 4 pct, Far East 3 pct).

Among manufacturers, 38 pct said eastern Europe would be the best source outside the UK.

However, companies seemed to support the government's approach to using immigration to address skills shortages, saying that the recent restrictions on workers from new EU members Romania and Bulgaria will not affect their ability much to fill positions.

In order to counter the skills gap, 39 pct of companies said they expect to invest in training to counter the skills gap.

They also suggested that employing workers which do not fit the traditional 9-5 working hours could alleviate the shortage, for instance people aged over 50, foreign and temporary workers, people returning from career breaks, and by introducing family-friendly policies.

However, the organisations added there is a strong need to improve the education standards of new entrants to the labour market, particularly in literacy, numeracy and spoken English, and to link education more effectively to the workplace and skills training.

Visa Bias

Washington Post Editorial
Thursday, June 21, 2007; A22

A relic of the Cold War galls America's stalwart allies.

AS PRESIDENT BUSH is reminded practically every time he travels abroad, America's once-sizable reserves of international affection and respect have been badly depleted by his administration's knack for highhandedness. A major exception has been Eastern Europe, where even Mr. Bush's maladroit diplomacy has not undone the warmth and admiration for the United States felt by millions of former Warsaw Pact residents to whom America was a beacon of freedom during the Cold War. But now America's reputation is being bruised even in those countries, especially among younger people. The culprit: Washington's arbitrary and blatantly discriminatory visa policies for tourists, businesspeople and other travelers.

About half the visitors to this country each year come from 27 generally friendly countries whose citizens need nothing more than a valid passport to travel to the United States. They include most of the wealthy Western European states plus a handful of affluent Asian and Pacific ones. But in a dozen other up-and-coming European countries, including former Warsaw Pact members, people who want to visit America are required to pay a $100 visa application fee, appear at U.S. consulates and submit to interviews -- despite their governments' pro-American orientations, commitment to democracy and generally robust economies.

Thus it's no surprise that popular resentment toward the United States is growing in those countries, which include some of America's most stalwart friends and NATO allies. This second-class status has been particularly galling to Eastern European nations, many of which have sent troops to serve in the U.S.-led wars in Iraq and Afghanistan; to them, the American rules are a moldy relic of the Cold War. This wrongheaded approach to visa policy is partly the result of the attacks of Sept. 11, 2001, after which heightened security concerns froze out nations that had hoped to join the visa-free travel club. The results include some glaring disparities. Take the Czech Republic and Portugal, countries with nearly identical populations, incomes, and levels of U.S. trade and investment. As Daniel T. Griswold of the Cato Institute has noted, Portugal sends more than twice as many visitors each year to the United States as the Czech Republic, and no wonder: the Portuguese can come here visa-free while Czechs cannot. The result: Czechs travel to Western Europe, where they are welcome as full members of the European Union. Over time, says Mr. Griswold, a trade expert, the United States will pay the price not only in diminished esteem overseas but in lost business opportunities.

To its credit, the Bush administration wants to waive the visa requirement for South Korea and for a dozen more European countries. (In addition to the Czech Republic and Poland, they are Bulgaria, Cyprus, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Romania and Slovakia.) At the same time, it is pressing for tougher rules covering passports, passenger watch lists, airport security, air marshals and so forth. The administration's approach makes sense, and not only for the countries hoping to join the visa-free list. After all, none of those nations poses an acute security threat; one could argue that they are less threatening than some countries whose citizens already enjoy visa-free travel to the United States.

But in the Senate, the administration's proposal is embedded in a broader homeland security bill that, for reasons unrelated to visas, Mr. Bush has threatened to veto. In addition, the bill has been amended in ways that would keep in place visa requirements for millions of Eastern European travelers, including Poles. That may leave the hard work of dismantling the unfair visa rules to the House, where many representatives wrinkle their noses at any suggestion that travel to the United States should be easier. They shouldn't. If the United States insists on keeping its friends at arm's length, pretty soon it will discover it doesn't have any.

Trelleborg Automotive Inaugurates New Manufacturing Facility in Dej, Romania

STOCKHOLM, Sweden--(BUSINESS WIRE)--Today, the Trelleborg Group's (STO:TRELB) Trelleborg Automotive business area has inaugurated a newly constructed manufacturing facility in Dej, Romania.

The increased production capacity from this state-of-the-art plant serves the needs of Trelleborg's existing customers Audi, Dacia, Ford, Peugeot and Renault by providing local supply to their Romanian and Eastern European plants. "We have a strong global platform that will be further reinforced by this plant," says Trelleborg President and CEO Peter Nilsson. "It is important to be close to the companies we supply to fulfill just-in-time requirements. This facility continues our commitment to the developing automotive sector in Eastern Europe." Using proven leading-edge manufacturing processes, the production site in Dej will produce engine and chassis mounting systems. Initially, the plant will supply the Renault (Dacia) plant where the successful Logan model is assembled.

The investment is in response to increasing component volumes. Dej facility will have about 100 employees by the end of the year and is designed to meet stringent environmental standards. "We now have a best-in-class facility with enough capacity to meet growing requirements," says Henrique Fischer, President, Trelleborg Automotive Europe.The inauguration on June 21 was attended by guests from all around the world, including representatives from customers such as Renault Dacia, General Motors and BMW, personnel from the facility's supply base, along with key members of the local community, and management and personnel from Trelleborg Automotive.

Trelleborg is a global industrial group whose leading positions are based on advanced polymer technology and in-depth applications know-how. Trelleborg develops high-performance solutions that seal, damp and protect in demanding industrial environments. The Trelleborg Group has annual sales of approximately SEK 27 billion, with about 23,000 employees in 40 countries. The Group comprises four business areas: Trelleborg Engineered Systems, Trelleborg Automotive, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The Trelleborg share has been listed on the Stockholm Stock Exchange since 1964 and is listed on the OMX Nordic List, large cap. www.trelleborg.com

Engel East Europe discontinues talks for project in Romania

LONDON (Thomson Financial) - Engel East Europe NV said it has discontinued talks for a project in Romania, having been unable to agree on the terms that would result in an acceptable return for shareholders.

The property developer, however, said it continues to view Romania as a key market and is in negotiations for other large-scale projects there.

On July 24, 2006, Engel East had said it signed a memorandum of understanding to take a stake in the planned development of several thousand residential units in "a central location in Romania".

UK SAID TO ABOLISH RESTRICTIONS FOR WORKERS FROM BULGARIA AND ROMANIA

Sofia News Agency


UK government may abolish restrictions applied to Bulgarian and Romanian citizens willing to work in there.

The Times reported that UK interior ministry was going to re-consider labour quotas imposed on those countries after their EU accession in January 2007.

UK officials will take part in the first forum on migration's influence in the country. The forum will analyse migration figures, places of employment for Bulgarian and Romanian workers and whether UK's industry needs more low-qualified staff.

A decision on simplifying or removing labour restrictions will also be taken.

Worker quotas provoked discontent in Bulgaria and Romania. UK applied an open-door labour policy to the other Eastern European countries which joined the EU in 2004.

Data showed that nearly 8000 Bulgarians and Romanians entered UK to work there in the first three months of 2007 and another 2400 joined the seasonal agricultural programme.

UK farmers union demanded that the government should allow more immigrants to work in agriculture sector claiming that the number of workers from Poland, Slovenia, Slovakia and the Czech Republic decreased.

Ford knocks down Slovak plant report, eyes Romania

BRATISLAVA (Reuters) - U.S. carmaker Ford (F.N: Quote, Profile, Research) on Thursday dismissed a media report saying it was considering building a new assembly plant in Slovakia.

The Slovak daily Hospodarske Noviny on Wednesday quoted unnamed sources as saying a new Ford factory would be located in an industrial park near the eastern Slovak town of Kechnec, where a Ford-Getrag joint venture already makes gearboxes.

But Todd Nissen, spokesman for Ford of Europe, told Reuters the story was purely "speculative".

"We cannot confirm anything like that (story)," he said.

The paper also quoted the Kechnec mayor as saying he was in talks with a renowned producer to make higher-class cars in the east. The investment should be worth tens of billions of crowns and create hundreds of jobs, the mayor said.

The state investment agency SARIO said it was not in talks with Ford about a new plant in Slovakia, which has been a magnet for investment inflows in the auto sector.

The auto sector accounts for one third of total industrial output and the Slovak crown is extremely sensitive to investment inflows because they put firming pressure on the currency.

Nissen reiterated Ford's interest in an upcoming privatisation of Romania's Automobile Craiova.

"Eastern Europe is certainly the area where markets are growing and we have to consider how to increase our presence there. We are preparing a bid for the plant in Romania, which we are also referring to as eastern Europe," Nissen said.

Nissen declined to reveal details of the bid, only saying that Ford was looking to expand the plant. The Romanian privatisation agency AVAS has said the buyer would have to ensure a minimum yearly output of 300,000 cars.

General Motors (GM.N: Quote, Profile, Research) and Russian Machines, a unit of one of the largest privately held conglomerates in Russia, are also said to be interested in the Romanian plant.

The deadline for binding bids is July 5.

Europa says to test Romania well after discovering gas-bearing sandstone

LONDON (Thomson Financial) - Oil and gas producer Europa Oil & Gas (Holdings) PLC said it will be conducting tests on one of its wells in Romania, after discovering gas-bearing sandstone. The well, Arbore-1 in northern Romania, will be cased and a drill stem test performed. The company says it will announce results of the test in due course.

Romania acting PM meets with Hungary PM in Budapest

Romania Acting Prime Minister Béla Markó traveled to Budapest Tuesday and met with Hungary Prime Minister Ferenc Gyurcsány to discuss current political and social issues in their countries, reports fn.hu.

Gyurcsány and Markó, who is head of the Hungarian Democratic Association of Romania, shared information about internal affairs in Hungary and Romania, including European Union-related issues and relations between Hungarians and ethnic Hungarians in Romania.

The two prime ministers specifically discussed homeland support of ethnic Hungarians living in Romania and reviewed the efficacy of the Homeland Fund (Szülőföld Alap). They also reviewed how transborder Hungarians could participate in the development of Romanian areas near the border.

Gyurcsány and Markó spoke about European political affairs, too, and about the ongoing discussions over the European Constitutional Treaty. They promised to meet again in the fall.

Cyprus 8th largest foreign investor in Romania

Source: Financial Mirror
600 Cyprus companies invest EUR 110 mln in a year


Cyprus is one of the largest foreign investors in Romania currently maintaining its eighth position in the overall rankings with most of the interest remaining in property and real estate, said Iuliu Winkler, Romanian Secretary of State in charge of international trade, tourism as well as small and medium sized companies. In an exclusive interview with the Financial Mirror, Winkler said his meetings with his Cypriot counterpart, Commerce Minister Antonis Michaelides, and at the Cyprus Chamber of Commerce and Industry (KEVE) were fruitful and will help in the development of business ties between the two countries. But he admitted that interest is predominantly in real estate and property with Cyprus companies having established 600 companies in Romania, investing a total of EUR 110 mln between June 2006 and May 2007.

Cypriots usually register a Romanian company the capital of which will be owned by a Cyprus based company, which then becomes the owner of the Romanian property and thus many tax issues are bypassed. Winkler nevertheless is satisfied with the arrival of thousands of Cypriots into Romania, as well as international companies booking investments to Romania through Cyprus, helping push Cyprus into eighth position in the FDI table, which in 2007 totaled EUR 9 bln.

“If you strip out the privatization of Commercial Bank of Romania, then the actual figure in 2006 was EUR 7 bln, which we hope will be repeated again in 2007,” Winkler told the Financial Mirror. While total FDIs in the first quarter of 2007 amounted to EUR 1 bln, this figure is expected to climb as more companies are privatized. Winkler also expressed his satisfaction at the fact that development companies from Cyprus have recently started to establish a presence in Romania, with some moving into property development beyond Bucharest to the other cities.

“There is a lot of potential since Cyprus is strong in services, with about 75% of GDP based on your services sector, while the reverse is true in Romania, which is dominated by manufacturing, industry and agriculture. Cyprus and Romania compliment each other.” -- Massive infrastructure potential Winkler also called on Cyprus companies to rush to Romania in order to help in the modernization drive of the country. He noted that Romania will have access to EUR 31 bln in EU-structural funds in the 2007-2013 period, most of which will be spent on boosting the infrastructure, while funds will also be spent on environmental projects, agriculture, human resources and others.

Romania also wants Cyprus companies in order to take advantage of its low but skilled labour force. “Unfortunately the number of Cypriot business people with manufacturing units in Romania is on the decline, but we are sure with the right marketing, we can improve the situation,” said Winkler. In addition to shipbuilding on behalf of Cyprus based shipping companies, Romania may be tapped to supply fuel and energy to Cyprus, as well as light industry products. Following discussions here, KEVE has decided to organize a trade mission to Romania in order to further boost bilateral trade ties.

UK considers lifting Bulgaria and Romania work ban

EUobserver
21.06.2007 - 09:30 CET | By Lucia Kubosova

The UK government has announced it will review its temporary limits on Bulgarian and Romanian workers with a possibility of lifting them completely.

The review of the British closed-door policy on the latest EU newcomers is expected by the end of this year along with an introduction of a points-based system for non-EU migrants, on the basis of advice by Migration Impacts Forum.
The new body consists of experts from local government, police, health care and education sectors, business and unions, analysing wider implications of migration on the public services as well as on labour shortages in the country.

Immigration minister Liam Byrne, who co-chairs the forum said the modified system will provide for London to "start counting people in and out of Britain."

"When we set the bar that migrants need to cross we won't just listen to business. Today we deliver our promise to systematically listen to other voices before we set immigration policy," he added, according to Reuters.

But according to UK daily The Times, a Home Office document published on Thursday (21 June) opens the way to allowing in more Bulgarians and Romanians with curbs on numbers to be reviewed or cancelled by the end of the year.

Britain and Ireland introduced limitations on migrants from the two countries before their EU entry this year due to a higher than expected inflow of newcomers from central and eastern Europe.

Before 2004 enlargement, British officials had expected about 15,000 migrant workers a year to arrive in the country, but over 600,000 have taken the plunge in just two years.

Under the UK system, there is a precisely-set quota of 19,750 low-skilled Bulgarian and Romanian workers that are allowed to come and work in agriculture and food processing.

The specialist jobs can be filled by them without such limitations but only if there are no local residents available or interested.

It is estimated that nearly 8,000 Romanians and Bulgarians came into the UK between January and March this year, plus 2,400 who joined the seasonal agricultural workers' scheme, according to UK reports.

East European brides, children evacuated from Gaza

Middle East Times
June 20, 2007

EREZ BORDER CROSSING, Gaza Strip -- A flood of grim-faced East European women and bewildered children was Wednesday being evacuated from the Gaza Strip, packed into buses and desperately fleeing the Hamas-run territory.

Ninety Ukrainians were rushed through the Erez border crossing to the safety of Israel, with approximately 140 Russian citizens scheduled to follow immediately, Israeli military spokesman Lieutenant Shady Yassin said.

"Ninety people with Ukrainian citizenship have already left. Right now we're preparing to evacuate approximately 140 Russian citizens from the Gaza Strip. It should be starting right now," he said by telephone.

The mainly women and children, pale faced, plainly dressed, and visibly strained just days after Hamas seized control of the Palestinian territory in a deadly takeover, sat in buses and looked bleakly through the window.

Yassin said that the flight was coordinated by the relevant embassies, the Israeli foreign ministry, and the civil administration in the Gaza Strip, and that Ukrainian embassy representatives had been waiting to receive them at Erez.

"Every foreigner in the Gaza Strip can come out whenever he likes. The Erez crossing is open for foreigners and for foreign reporters to go and come in."

The head of the Romanian representative office to the Palestinian Authority said that around 60 to 70 Romanian women who married Palestinian sweethearts who studied in Romania, and their children, were also desperate to leave.

"I'm speaking about a lot of women and of course their children. We hope, at their request, to do something tomorrow or the day after tomorrow to help them get out, in fact to run away from Gaza," Marian Stefan said. "In the past, there were a lot of scholarships for young Palestinians, who were educated there [in Romania] and at the same time they married and they returned to Palestine with wives.

"They are very concerned. They want to get out as soon as possible," Stefan said, adding that their return to Romania would be without their husbands.

The Russian Itar-Tass news agency reported Sunday that the foreign ministry in Moscow had given the Israeli authorities the names of 138 Russians who wanted to be evacuated from the Palestinian territories.

Migration review 'by September'

Press Association
Thursday June 21, 2007 3:13 AM

The Government is to review the restrictions imposed on Romanian and Bulgarian workers as early as this September, it has been announced.

The findings will be influenced by the new Migration Impacts Forum (MIF), which meets for the first time on Thursday to discuss the effects migrants have had on public services such as the NHS and housing.

Current rules limit the number of visas which can be handed to new arrivals from the two former Communist states.

Immigrants from Romania and Bulgaria - which joined the EU in January - can work here only if they fall into one of five categories. These are highly-skilled workers, students, those with specialist skills which cannot be met by resident labour, the self-employed and a quota of 20,000 low-skilled workers for the food processing and agriculture sectors.

Documents published by the Home Office showed the MIF will consider a report on "emerging findings" about the two new EU members in September, with a decision by ministers following some time in the final three months of this year.

Figures published last month showed nearly 8,000 Bulgarians and Romanians came to work in Britain in the first three months of this year, plus 2,400 who joined the seasonal agricultural workers' scheme. But the data did not provide a full picture of the numbers because no such records are kept by the Government.

At the end of last year Migrationwatch, which campaigns against mass immigration, predicted there could be 180,000 arrivals in the first year, while left-wing think-tank the Institute for Public Policy Research (IPPR) put the figure at 56,000.

The MIF will also influence the working of the new points-based immigration system. Each potential immigrant will be awarded points based on earning power, qualifications and other factors such as the demand for their skills in the UK job market. The MIF will be able to influence the "pass mark" and affect whether it is raised or lowered, depending on conditions in the UK.

Immigration minister Liam Byrne said: "We are creating the machinery for a much more open debate about where we need migration and where we don't but based on evidence, not anecdote. It is important that we involve and understand the experience of people from the front line - from local authorities, the health sector and businesses."

Shadow immigration minister Damian Green said: "This is all very well but, unless the Government adopts our policy of having an explicit annual limit on economic migration, this will be just another example of tough talk not matched by effective action."

Romania wants Aug. 10 deadline for nuclear bids

BUCHAREST, June 20 (Reuters) - Romania's finance ministry wants to set an Aug. 10 deadline for binding bids for the license to build and operate two nuclear reactors at the Cernavoda power plant, a ministry document showed. On Wednesday, the centrist government approved a strategy to select investors for the Danube river plant but did not announce the bidding details.

The government spokeswoman's office declined to comment on the finance ministry report, submitted to the cabinet and obtained by Reuters. The government said work to complete the units will start next year and the reactors will go on stream in 2014 and 2015 respectively. Last year, Romania shortlisted 13 firms interested to finalise, launch and operate the two units. The investors are: AES of the United States, Italy's Enel , Germany's RWE and E.ON , Spain's Iberdrola , Canada's Gabriel Resources , Korea Hydro & Nuclear Power, and Belgium's Electrabel . Romanian firms TESS Conex-ASAM-Iasi, Electrica Bucuresti, Alro Slatina , consortium of Luxembourg's Unit Investments and Turkey's Dogan Enerji and a grouping of Italy's Ansaldo and Canada's AECL were also picked.

A list of winning investors will be finalised by Oct. 29. Work at the Cernavoda plant, designed to have five reactors, began 30 years ago under the former communist regime. Construction stopped in 1990 when a survey revealed some of the equipment was in poor condition and the welding was faulty. The plant's first reactor went on stream in 1996 and accounts for more than 10 percent of the country's power generation. A second unit is expected to be connected to the national grid sometime in July.

Vodafone Romania launches fixed telephony services

Source: DMeurope.com

Mobile operator Vodafone Romania has launched Vodafone Acasa, a fixed-line telephony offering.

Vodafone Acasa services are available nation wide in areas covered by Vodafone Romania's GSM network.

Vodafone Acasa is an alternative to traditional fixed-line telephony and offers a range of services previously available only on mobiles, such as SMS over fixed-line phone. Vodafone Acasa customers also have free access to additional services like Cost Control (by calling *123#), Customer Service (*222), hide call ID, waiting call, call barring, and conference call. The Vodafone Acasa handset features include games and polyphonic ring tones.

Vodafone fixed voice numbers have the prefix 0372, followed by 6 figures, and are accessible from a number of national networks, both mobile and fixed. These include Romtelecom, Orange, Cosmote, Telemobil, RCS & RDS and UPC Romania. Customers who use both Vodafone fixed and mobile services will receive a single invoice.

Wednesday, June 20, 2007

Revitalization, rehabilitation in Romania

Dunn County News Online

What can 12 men from three countries speaking at least three different languages and working in metric and English measuring systems accomplish in eight days? Four men from Menomonie found out when they traveled to Romania May 21, and stayed until June 4. There, they worked on constructing a physical therapy building at a camp for special needs individuals.

Romania, which became an independent country in 1990 then joined the European Union in January 2007, is making its way among the other European countries as it tries to update its social, economic and political systems.

The country, where the Carpathian mountains weave their way through, has a long history dating back to the Roman Empire, and derives its name from that relationship. Its capital is Bucharest with a population of approximately 3 million people.

The four men from Menomonie — Arden Alexander, Bob Spinti, Mike Schendel and Don Kuether — got involved in the project because of the relationship between MOSAIC (operators of The Oaks, an independent senior living facility in Menomonie) and MOTIVATION (a nongovernmental agency in Romania that works with special needs people).

Special needs people have been a concern of an English-Swedish organization called Save The Children, which became involved with MOTIVATION, formed in 1990.


At that time, there was a great need for wheel chairs. Costs led the group to start manufacturing them in Bucharest. Special Olympics-Romania was formed at the same time.

Christian Ispas became the Romanian director of Special Olympics and MOTIVATION. He learned of MOSAIC through an Internet search, and the two groups have been cooperating since.

It is because MOSAIC is an international organization that specializes in special needs people that the request was issued from MOSAIC to The OAKS for assistance in building a rehabilitation building at a summer camp north of Bucharest in the foothills of the Carpathian mountains at Varatec.

The camp is about a seven-hour drive from Bucharest. It has an orthodox monastery adjacent to the camp, which has six cabins completed for campers and a dining facility.

When the Menomonie foursome arrived, there were concrete pillars in the ground for the structure to be built upon. The men were able to complete exterior framing for the two floors and interior walls on the first floor.

The building will contain an apartment for the resident manager and a large rehabilitation room on the first floor and five bedrooms for guests on the second floor. Plans are to have the building completed this summer.

Romania's Mobexpert To Open Bulgarian Megastore in Q3

Sofia News Agency

Romanian furniture retailer Mobexpert will open its first Bulgarian hypermarket towards the end of the third quarter of the year, in the Lyulin district of capital Sofia.

This will be the chain's sixth hypermarket and the first outside Romania, as it seeks to take advantage of strong economic growth south of the Danube.

Sprawling on 11 000 square meters, the store will employ 100 people.

Initially, the company will sell only furniture assembled in its own factories, but could expand to include merchandise made in Bulgaria as well.

The company has announced plans to open a total 25 hyperstores in the region, including five outside Romania, by 2011. Two of them are pencilled in for Plovdiv and Varna.

Mobexpert is an integrated group of companies, with its own production facilities, real estate and logistics companies, which sells furniture through its Mobexpert and Mobexpert Office retail chains, as well as exporting to western Europe.


The group had a turnover of EUR150 M last year.

Sweltering Heat Kills 4 in Romania

Sofia News Agency

20 June 2007, Wednesday

The heat wave that pushed the temperatures in Romania to 35oC takes the lives of four people on Tuesday. Three men and a woman died after heart attacks caused by the high temperatures in the city of Braila.

The phones of the emergency services are constantly red-hot, local media reported. The Health Ministry recommend to the elderly people and to those, who suffer from heart diseases not to go out in the summer heats.

Wizz Air establishes operational base in Romania

Source: Easier Travel

Wizz Air has inaugurated a new operational base established in Romania. The decision has been determined by the company’s ambitious growth plans for the country.

"Wizz Air has begun to operate flights from Tirgu Mures in July 2006 and from Bucharest in January 2007. The enthusiasm of passengers in Romania for our service offering of young aircraft flying to attractive destinations at consistently low fares has encouraged us to dedicate an aircraft and open an operational base in Romania. This decision also takes in consideration our significant growth plans in the country." stated József Váradi, Chief Executive Officer Wizz Air.

The operational base will function inside the Henri Coanda airport until the reopening of the Bucharest Baneasa Aurel Vlaicu International Airport and will host a new Airbus A 320 aircraft with 180 leather seats. The aircraft will be flown by a Romanian team of pilots and cabin crew already hired.

Currently, Wizz Air is operating flights from Tirgu Mures to Budapest, Rome Ciampino and Barcelona and from Bucharest to Barcelona, Budapest, Dortmund, London Luton and Rome Ciampino. Starting October, Wizz Air will operate flights from Bucharest to Liverpool (Great Britain), Parma (Italy) and Valencia (Spain) and from Tirgu Mures to London.

Find out more by visiting Wizzair.com.

easyJet announces new flights to Austria and Romania

Source: Easier Travel
20 June 2007

easyJet, Europe’s leading low-fares airline, today announced the addition of two new countries to its network this autumn – Austria and Romania, taking the total number of countries easyJet operates from, to 22.

The new daily service between London Luton and Vienna commences on 29 October and is the first time the airline has entered the Austria market, which is expected to be particularly popular as a year round city break destination as well as a ski gateway in the winter. Flights are available from as little as £22.99 one way.

The grand, romantic Austrian capital is located on the banks of the Danube. A stunning monument to the Habsburg Dynasty, Vienna is a city of immense cultural and historical heritage with its UNESCO World Heritage Site centre, filled with medieval back streets and imperial squares and palaces. In this opulent and indulgent metropolis there is a variety of world-class museums to explore, grand palaces such as the Schonbrunn or the Imperial Palace, wide boulevards to wander along and enjoy the magnificent architecture.

See the famous white stallions perform or an orchestra perform at one of the many lavish concert halls, such as the Wiener Philharmoniker or the Vienna Boys Choir at the Vienna Conservatorium. Once home to the likes of Beethoven, Mozart, Schubert and Strauss, Vienna is also a sophisticated modern city with a strong focus on music and the arts, boasting a vibrant scene for younger travellers with its famous coffee houses, wine taverns and trendy bars.

Romania is also a new market for easyJet, with the new daily service connecting its base at Milan Malpensa with Bucharest Baneasa Airport starting in September. The airline recognises the great potential for growth of both business and tourism developments in this emerging market and is assessing further expansion opportunities. Flights are available from €22.99.

Seats for both new routes are on sale now.

In addition to these two new routes, easyJet has also begun to launch its winter 2007 – 2008 schedule, flights from 28 October 2007 and 29 March 2008, which includes the most popular time for travel in Spring – the Easter holidays.

As easyJet now operates such a huge network, the airline is releasing its winter schedule base by base. Seats are on sale now at EasyJet.com for flights operating from:

Paris Orly
Berlin
Liverpool
Belfast

Flights from the remaining bases: Basel, Bristol, Edinburgh, Gatwick, Geneva, Glasgow, Madrid, Milan, Newcastle and Stansted, will be available within the next few weeks.

Romania May Face Extreme Drought This Summer

Source: BIRN

20 06 2007 Bucharest. High summer temperatures in Romania could lead to extreme drought, creating fears that wheat crops will be seriously affected and hurt the country's economy, local experts are warning. A dry winter has given way to a hot, early summer that has already affected wheat crops on about a third of Romania's crop land and cut water levels in hydroelectric power plants. Livestock breeding may also be effected by the heat, Agriculture Minister Decebal Remes said on Wednesday.

The economic newspaper "Ziarul Financiar" estimated that wheat harvests will fall by at least 6.5 million euros compared to last summer.

"Romania has to find solutions in order to supply the population, so the spectre of having to import grain at the expense of widening the trade deficit is clear now," economic analyst Ilie Serbanescu said.

Romania registered a 3.8 billion Euro trade deficit for the first three months of the year, some 88% more than in the first quarter of the year.

Temperatures in Bucharest and the rest of southern Romania are expected to reach 40 degrees this weekend. High temperatures for mid-June are usually 30 degrees on average.

TNT branch opens in Romania

Urban fashion label opens first international branch in Eastern European country, 40 more branches planned within three years
Ynetnews

TNT, an urban fashion label for teens and young adults owned by Honigman & Sons Ltd., opened its first international branch in Romania this week. A total of NIS 1 million was invested in the new store, which is located in the Euromall commercial center in Pitesti.

By the end of November, the company plans on opening two more branches; one in Romania’s capital, and the other in Constanta. Honigman’s director of business development, Olly Honigman, said that TNT will have five stores open throughout Romania by the end of 2007, and 40 within the next three years. According to Honigman, Romania was chosen as the ideal location for TNT’s first venture into the international clothing market, after extensive market research showed the country was in real need of a fashion label for young people.

In addition to its aspirations in Romania, TNT has also signed a contract with a Russian franchiser who is well experienced in marketing international clothing labels, and has already opened over 160 clothing stores in Russia. TNT is expected to open its first Russian branch in early 2008. TNT was launched in 1999, and makes up about 20 percent of the clothing market for young people in Israel. The chain currently has 57 branches throughout the country.

Romania moves forward towards the construction of nuclear reactors 3 and 4

20 June 2007 | FOCUS News Agency

Bucharest. A shortlist of investors for the construction of units 3 and 4 at Romania’s nuclear reactor in Cernavoda, near the Black Sea, is expected to be ready by the end of October, the government has announced.

Under the Ministry of Finance’s schedule, the company picked to carry out the works will have to be registered in Romania by March 31, 2008.

The schedule for attracting investors for the construction of the two units consists of several stages.The strategy must be approved by July 2, 2007 while the negotiation commission must be assigned by July 15, 2007. Requirements for the offers must be completed by August 10 this year while the analysis of the offers and the investor’s list must be ready by October 29, 2007.

The chosen investors will have to come up with a 30 percent cash contribution to the construction of Cernavoda’s units 3 and 4. A new company will be established and registered in Romania by the contractors. Several shareholders will be part of the company’s General Shareholders Assembly and none of them will hold a majority stake in the units.

The government will discuss on June 20 the strategy for the selection of the investors. Investments of about 2.2 billion euros are needed to get the two reactors on-line by 2014.
As many as 13 companies have remained on the short list to build the third and fourth reactors: AES Corporation (SUA), Alro Slatina, TESS Conex- ASAM-Iasi, Ansaldo (Italy) AECL (Canada), Unit Investments (Luxembourg) - Dogan Enerji (Turkey), Electrabel (Belgium), Electrica, ENEL (Italy), E.On Energie (Germany

Romanians Call for Snap Legislative Election

(Angus Reid Global Monitor) - Many people in Romania believe calling for an immediate election would help solve the country’s current political crisis, according to a poll by Data Media. 40.2 per cent of respondents support holding a snap legislative ballot.

Conversely, 26 per cent of respondents believe a change in the governing coalition would be the best way to solve the crisis, while 18.4 per cent back the continuation of the current government.

The Alliance for Justice and Truth (DA)—comprising the Democratic Party (PD) and the National Liberal Party (PNL)—won the November 2004 parliamentary election, securing 132 seats in the 332-member Chamber of Deputies. DA candidate Traian Basescu won the presidential run-off in December 2004 with 51.23 per cent of the vote, defeating Social Democratic Party (PSD) contender Adrian Nastase. Basescu later appointed fellow alliance member Calin Popescu Tariceanu as prime minister.

Along with Bulgaria, Romania joined the European Union (EU) on Jan. 1. This year, tensions between Basescu and Tariceanu have increased, and the coalition government has come to a stalemate. In April, Basescu was suspended from the presidency over charges of abuse of power in a 322-108 Chamber of Deputies vote, following an initiative developed by PNL members of parliament loyal to Tariceanu.

On May 19, 74 per cent of participating Romanian voters rejected Basescu’s impeachment in a national referendum. After his victory, Basescu urged lawmakers to work with him in introducing anti-corruption reforms, adding, "This whole project hinges on parliament’s backing. Otherwise it cannot be done."

Polling Data

What would be the best solution to Romania’s current political crisis?

A snap parliamentary election

40.2%

A change in the governing coalition

26.0%

The continuation of the current government

18.4%

Source: Data Media
Methodology: Interviews with 1,200 Romanian adults, conducted from May 25 to May 29, 2007. Margin of error is 2.7 per cent.

Romania takes over Human Rights Council presidency

Romania took over on Tuesday the presidency of UN Human Rights Council (HRC) for a one-year term, the Foreign Ministry said in a press release.

The HRC presidency is the most important mandate Romania has held in the last 17 years within the UN system, after the terms of office held with the UN Security Council (1990-91 and 2004-2006). Romania is at the same time the first EU member state to hold this mandate.

Romania will be in the position to demonstrate through hard facts its commitment to human rights and the way it understands to act in order to ensure the necessary conditions for the promotion and defense thereof in the only global jurisdiction body dedicated to these fundamental values, according to the release.

Romania is a member of the Human Rights Council for a two-year term (2006-2008). The effective presidency of the council is ensured by Romania's permanent representative to the UN Office in Geneva, said the release.

Source: Xinhua

Romanian Retirees Demand Higher Pensions

The Associated Press
Tuesday, June 19, 2007; 3:57 PM

BUCHAREST, Romania -- Hundreds of retirees took to the streets Tuesday in cities around Romania to demand that pensions be raised to at least 45 percent of the average national salary and other benefits.

Small protests were staged in the capital and about 20 other towns. The trade unions that coordinated the protests said they also wanted cheap accommodation and free medicine for the country's elderly population. Romania has 6 million retirees out of a population of 22 million.

The average monthly salary in Romania is about $500 before taxes.

Labor Minister Paul Pacuraru said it was not "realistic" to increase pensions due to budget constraints. He said pensions would be raised in 2008, but did not say by how much.

In a separate protest in Bucharest, activists rallied against government plans to force a pro-democracy group out of its offices in a building that has become a symbol of Romania's efforts to build a democracy.

The Group of Social Dialogue was the first pro-democracy organization set up in the 1989 anti-communist revolt. The government wants to force them out of the building and hand it over to the nationalist Greater Romania Party.

Actor Marcel Iures, former Prime Minister Teodor Stolojan and political scientist Vladimir Tismaneanu, who led an investigation into the crimes of the communist era in Romania, were among dozens who packed the building's courtyard.

"The roots of this place are too deeply entrenched for it to be pulled out by a group of politicians," said Stelian Tanase, a well-known political commentator.

New Center in Romania to Aid Missing and Exploited Children

ALEXANDRIA, Va., June 19 /PRNewswire-USNewswire/ -- To combat the growing problem of missing and exploited children, including child trafficking and child prostitution, a new non-governmental organization (NGO), The Romanian Center for Missing and Exploited Children has opened in Bucharest, Romania.

The new center will work closely with government, law enforcement, other non-governmental organizations, and the general public on cases involving and issues affecting missing and sexually exploited children and their families.

The new center is a member of the global network that is being created by the U.S.-based International Centre for Missing & Exploited Children (ICMEC). The new Romanian Center was modeled after the National Center for Missing & Exploited Children (NCMEC) in the U.S. and Child Focus in Belgium.

Why Romania? -- The number of missing children reported missing in Romania has steadily increased from 244 in 2003, to 660 in 2004, to 750 in 2005. -- There are an estimated 100,000 homeless children throughout Eastern Europe, including 2,000 in Romania. Child trafficking and child prostitution are problems in Romania and represent a large threat throughout Eastern Europe. Homeless or "street" children are frequent victims. An estimated 5 percent of the homeless children in Romania are forced into child prostitution. -- An estimated 30% of sex workers in Bucharest are under 18 years of age. Romania, and in particular Bucharest, is one of the key travel destinations in Europe for child sex offenders. -- Romania is a country of origin and transit for women and girls who are internationally trafficked from Moldova, Ukraine, and other parts of the former Soviet Union to Asia, the Middle East and Europe. -- Romania has the seventh largest population and the ninth largest territory in the European Union. It is the largest country in Southeastern Europe and the twelfth largest in all of Europe. Romania is not only a leader in shaping policies of Eastern Europe, but it now enjoys membership in the European Union.

The new center was established through the leadership and efforts of Mihaela Geoana who will serve as the organization's Chairman of the Board. Mrs. Geoana is a Board Member of the International Centre for Missing & Exploited Children (ICMEC), and wife of the former Foreign Minister of Romania.

The new Romanian Center will provide a variety of information and services for both law enforcement officials and the public, including the following:

-- Operate a new 24-hour call center to receive and manage reports of missing and sexually exploited children; -- Establish networks within Romanian stakeholders who work to report and solve cases involving missing and sexually exploited children; -- Facilitate communications and coordination with similar centers throughout the world; -- Establish a system to monitor and track cases; -- Develop a national network of volunteers that will be trained and utilized in search operations; -- Provide technical assistance to professionals who interact with children and their families to be responsive to the special needs of victim children and their families; -- Increase public education and awareness about the issues of missing and exploited children through media campaigns, conferences, workshops and other events; and -- Establish a monitoring system to help prevent children from becoming victims of Internet child pornography.

"The problems of child abduction and child sexual exploitation need to be addressed on a global basis. Creating regional and national centers similar to the new center in Romania is critical to eliminating the problems of child victimization," said Ernie Allen, President and CEO of ICMEC. "There is no greater priority than protecting children and keeping them safe."

The new Romanian Center opened on May 25 -- the day set aside around the world to remember missing children who have not yet been recovered and to celebrate those missing children who have been safely returned to their families. Funding for the new center will be through private donations, with special thanks to lead corporate donors, TOTAL and Microsoft Corporation.

About The International Centre for Missing & Exploited Children

ICMEC is a private, non-profit 501(c)(3) non-governmental organization. It is the leading organization working on a global basis to combat child abduction and exploitation. It is the sister organization of the National Center for Missing & Exploited Children. For more information, visit http://www.icmec.org/. International Centre for Missing & Exploited Children

CONTACT: NCMEC Communications Department, +1-703-837-6111,
media@ncmec.org

Web site: http://www.icmec.org/

IFC Support to Credit Europe Bank, Romania, Will Benefit Smaller Businesses

(WebWire) 6/19/2007

IFC, the private sector arm of the World Bank Group, will provide a seven-year loan to Romania’s Credit Europe Bank to support the bank’s expansion into small and medium enterprises and strengthen its balance sheet by providing local currency funding with a longer tenor than currently available in the local market.

The $26 million equivalent investment will be the first local currency loan offered by IFC in the Romanian market. As an internationally triple-A rated institution, IFC leverages its credit to provide customized local currency products to private sector clients. Tamer Ozatakul, General Manager of Credit Europe Bank, said, “In 2006 we took the first step to address all segments of the Romanian economy by establishing our SME banking unit.

The facility, granted by IFC, will help us develop our SME client base and better meet their needs by providing medium-term local currency loans. We hope that our role will continue to grow in serving the SME sector, which is an important engine for growth in Romania.” Ana Maria Mihaescu, IFC Chief of Mission in Romania, said, “This loan is a sign of IFC’s commitment to Romania and its innovative approach to serving market needs, particularly the financial sector, which is key for economic development. This local currency loan will strengthen the banking system in Romania, while enabling Credit Europe Bank to increase services to the underserved SME sector.”

Tuesday, June 19, 2007

Danubius ups stakes in subsidiaries

Hungarian hotel chain operator Danubius Nyrt announced yesterday that it has acquired another 43.51% stake in Romania's Salina Invest S.A., boosting its holding in the company to 99.94%.

Danubius Nyrt first bought a 20% interest in Salina Invest S.A. in 2001 and since then it had gradually increased its ownership in the company to 56.5%. Danubius has spent all the Ft 600 million ($3.2 million) it has raised in the Romanian subsidiary on refurbishing its Salina hotels, such as the Danubius Health Spa Resorts Sovata, daily Napi Gazdaság reported, citing a company official. Danubius spent about Ft 1.6 billion ($8.57 million) to buy the 43.51% stake and an estimated Ft 2.7 billion ($14.5 billion)in total on the entire company. (Napi Gazdaság)

EU To Issue Report On Bulgaria, Romania Corruption On June 27

BRUSSELS -(Dow Jones)- The European Commission will publish its long-awaited reports on corruption in Romania and Bulgaria on June 27, a Commission official said Monday.

Until now, the exact date of publication hasn't been known.

"We will give an independent, fair, robust report," said Mark Gray, a commission spokesman. "It will show the progress, but is not shy about what should be done."

The reports could be crucial to the future of the two Balkan countries' governments. But although the E.U. could impose sanctions, officials say it would be difficult to cut off funds from Brussels and both countries probably will get a little more time.

European Commission President Jose Manuel Barroso has said that "the credibility of the two countries" is at stake.

The E.U.'s larger enlargement process is also at stake. Both Bulgaria and Romania entered the E.U. last January, bringing the bloc up to 27 members. Critics say the two were brought in too early and are pushing for stricter conditions on future applicants.

The Commission report on Bulgaria will focus on six areas of problems ranging from the independence of the judicial system to the fight against corruption and organized crime. The report on Romania will focus on the independent of the judicial system and corruption, but not on organized crime.

Protest action of retired employees against low pensions takes place in Romania

In spite of strong heat, thousands of Romanian of retired employees came out at the streets of Bucharest and other cities of Romania in order to carry out protest actions.According to ITAR-TASS, the retired employees demand to increase the pensions, social benefits, and issuance of discounts for medicine, and free-of-charge medical procedures.

Romania: Cluj Goes Mobile

Oxford Business Group Latest Briefing

Scandinavian mobile phone producer Nokia cleared the last hurdle on its path to developing a major production centre in Romania, a week after the proposal hit an unexpected bump in the road.

On June 12, Romania's parliament voted in favour of a motion to allow the education ministry to transfer authority of a 160-hectare piece of land to the Cluj District Council. This opens the way for the land to be passed on to Nokia and construction work on the $81m plant to begin.

The authorisation had been delayed by a week when Democrat Party (PD) deputy Valeriu Tabara opposed an emergency government ordinance, necessitating a parliamentary vote. Tabara, a former agriculture minister, said he could not accept seeing publicly owned land, which had been set aside for education and research, being transferred to private companies.

I cannot sit back and watch when it comes to the assets of public agriculture education, he said on June 6. I am a member of the academic community and I know that the status of university assets must be to the benefit of universities.

Emil Boc, president of the PD, was quick to distance himself and his party from Tabara's actions, saying the PD had always supported large-scale investments that have a positive effect on local communities.

On June 7, Viorel Gavrea, manager of the industrial park, warned that the delays caused by blocking the transfer could deter other international investors. Such political interference sends a negative signal and could result in foreign companies having second thoughts, he said. The delays could also harm the credibility of the Cluj local administration, which had lobbied hard to get the industrial park proposal off the ground, said Gavrea.

Now that the way has been made clear, Nokia intends to start work on the plant and its associated support facilities as soon as next month, with initial production scheduled for 2008.

Once running, the plant, to be located at the Tetarom III industrial park near the Transylvanian city of Cluj-Napoca, will employ at least 3500 people, most of them recruited locally. Nokia also plans to establish a research centre, as well as construct an industrial village to host suppliers and support facilities, bringing the total cost of the development to $270m.

Aside from transferring the land, the government has vowed to support the development, committing to provide $4.5m to pay for infrastructure and utilities work at the Tetarom III industrial park. With a high level of unemployment in the region, and the promise by Nokia that it would provide training to locals to work at the plant, the government had strong reasons to assist the development.

John Guerry, Nokia's manager of the new project, said the plant would reach full production by 2009.

Things may develop faster than we first estimated, we may reach the desired capacity sooner than 2009, but everything depends on the development of the market, he said in an interview with a local business publication on May 23.

According to Guerry, some of Nokia's suppliers are also considering establishing a presence in Romania to be near their customer, though none have so far made a firm commitment to set up shop at Cluj.

One of the reasons Nokia chose the Cluj site was its easy access to major logistics routes, with good road, rail and air links. Another advantage was its proximity to Nokia's plant in Hungary, some 450 kilometres distant. The Transylvanian Highway, running from central Romania to the border with Hungary, is expected to be completed by 2010. This will further improve links to the West.

We have a strong supplier base in Hungary and it's beneficial to have these two plants near each other, Nokia spokesperson Liisa Nyyssonen said in an interview with an electronics magazine on May 29.

Nokia's commitment to Tetarom III and the clearing away of the last obstacles to the development came as welcome news to Cluj officials. Only days before, another international telecommunications giant, Ericsson of Sweden, announced on June 1 that it had chosen Bucharest, after considering several other Romanian cities, including Cluj-Napoca, as the site for its technical support centre.

Romania: red hot economy vulnerable to dip in risk appetite

Capital Economics-Emerging Europe Update
June 14, 2007

Is Romania’s economy overheating? On balance we think it is. In particular, the ballooning current account deficit leaves the currency vulnerable to a rapid adjustment if global risk appetite falls. This in turn could trigger a spiral of rising interest rates and slower growth. But even without a weaker currency, mounting inflationary pressures could prompt interest rates to be hiked by the end of this year.

It is not hard to see why commentators such as the World Bank have become concerned about the sustainability of growth in Romania. For a start, the economy has been expanding well above potential - last year GDP grew by 7.6%, while we estimate potential growth to be closer to 6%. But credit growth has also been very strong, fuelling growth in the money supply of over 30% y/y, wages have been increasing by nearly 30% y/y and the current account deficit has reached a massive 11.5% of GDP.

Admittedly, these figures should be viewed in context. Romania is still a poor country and, like all countries in the region, expanding credit markets are an important source of growth. What’s more, Romania is a recipient of strong capital flows, with the over half of current account deficit covered by foreign direct investment (FDI).

But risks still exist and the size of the current account deficit is particularly concerning. After all, the Asia financial crisis demonstrated that supposedly stable flows of FDI can dry up pretty quickly. This would leave the leu, which currently looks overvalued, vulnerable to adjustment. So far the currency has strengthened on the back of high risk appetite and a sizeable interest rate differential with the eurozone. This has helped contain inflationary pressures and even allowed the National Bank to cut interest rates by 150bps since December to 7.25% despite rapid growth.

But it is questionable how long this can last. The fact that the leu emerged unscathed from the recent political turmoil suggests that external rather than internal developments pose the main risk to the currency. In particular, the leu looks vulnerable to any dip in global risk appetite, which remains close to historic highs. A weaker currency would cause inflation to spike, requiring interest rates to be hiked and causing growth to slow sharply.

Eve