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THE WEEK IN REVIEW 01-07/09/2008
(2008-09-05)
Last updated: 2008-09-08 15:07 EET

On Monday Romanian President Traian and PM Calin Popescu Tariceanu attended in Brussels the European Council’s extraordinary session on the crisis in Georgia. The head of state said the meeting was the most important on the EU – Russian Federation relation in the past 18 years, following Russia’s disproportionate reaction and the recognition of the independence of the breakaway regions of South Osetia and Abhazia. President Basescu believes the conclusions drawn at the meeting are very good, and the meeting’s final report reflects Romania’s stand as well:

“It acknowledges the fact that due to the crisis in Georgia, the relationship between the EU and Russia is at a turning point. A solution was adopted to postpone negotiations for a fresh EU – Russian Federation partnership until the withdrawal of the Russian troops to the positions held before August 6th, 2008”.

Prime Minister Tariceanu has stated that the meeting was a proof of Europe’s capacity to react fast in crisis situations.


This week at the International Court of Justice in the Hague, Romania has defended its case in the trial against Ukraine, regarding the delimitation of the continental shelf and the exclusive trade economic areas in the Black Sea. Delimitation across a surface of some 12 thousand square kilometres depends on the Serpents Island, disputed by both Romania and Ukraine. Both Romanian diplomats and foreign experts Romania has resorted to, to defend its case, have tried to prove that the island is actually just a promontory, around which Kiev cannot extend its exclusive economic area. The island was ceded to the USSR in 1948 by the then communist regime in Bucharest, and Ukraine took it over in 1991 as a successor.


Romania’s capital Bucharest on Wednesday and Thursday hosted the annual meeting of the Romanian consuls and ambassadors, organised by the Foreign Ministry. President Traian Basescu and PM Calin Popescu Tariceanu insisted on the implementation of a so called economic diplomacy, which should become a major instrument in promoting Romania’s interests. In turn, Foreign Minister Lazar Comanescu announced that all Romanian diplomats will have the task of providing Romanian companies with assistance in their efforts to find new retail or capital markets, as well as new business partners. Lazar Comanescu:


“It’s time we went beyond the routine activity of promoting national companies, attracting foreign investment and mediating national and foreign private business, which we traditionally call commercial diplomacy. We must be able to deal with a pragmatic economic diplomacy”.


Minister Comanescu insisted that Romania, whose main trade partners are the EU countries, should return to markets in the former Soviet space, Asia, Africa and South America.


In the first six months of the year 2008, Romanian economy registered the best results since the fall of the communist regime in 1989. According to the National Statistics Institute, the GDP recorded a record growth of 8.8% in the first six months, and of 9.3% in the past three months, which places Romania first in the region in terms of economic development. There have been several factors contributing to these results: a very good agricultural year, a 32% investment rise, especially in the construction sector, and a 24% increase in salaries, which stimulated the appetite for consumption and loans. Though at a first sight the situation looks glamorous, experts believe the Romanian economy is actually overheating.


Another Romanian soldier has died in the line of duty in Afghanistan, and another four have been wounded during a patrol mission between Qalat and the capital Kabul. An armoured transporter drove over an improvised explosive device. The soldier’s body was repatriated on Thursday. President Traian Basescu has decorated him posthumously with the national order the Star of Romania in rank of Knight. The soldier’s death raises to 7 the death toll among Romanian military in Afghanistan. Romania has over 800 military deployed in this country.
 
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