In March, the annual rate of inflation in Romania registered a new historical minimum in the past 23 years, reaching 2.4%, the National Statistics Institute has announced. Prices went up 0.4% in March, as compared to the previous month, as both foodstuffs and service fees soared. Eggs, vegetables and fruit saw the biggest hikes. Fuels got the most expensive, with prices going up 3%. On the other hand, medicine and thermal energy saw lower prices. Financial analysts warn that inflation might rise significantly by the end of the year, to reach 3.5%. In February, the National Bank of Romania revised the 2012 inflation forecast, from 3% to 3.2%. The National Statistics Institute has announced that Romania’s trade deficit grew in the past two months of the year by almost 60%, to 970 million Euros, as compared to the same period last year. Imports grew at a significantly higher pace than exports. According to the Statistics Institute, the import value in the first two months exceeded 4 billion Euros, and exports stood at 3.5 billion. The current balance of payments account deficit was 663 million Euros, 64% more than in January – February 2011.

Romania has a new Environment Minister

The term in office of the new Romanian Environment Minister Attila Korody, member of the Democratic Union of Ethnic Hungarians in Romania, is very likely to be a difficult one. At the swearing-in ceremony, Romania’s President Traian Basescu called on the new minister, and also on the government, to be fast in making decisions about natural resources exploitation projects. The president actually referred to three such projects: the exploitation of the gold ore reserve at Rosia Montana, the selling of the Cuprumin company (where the Romanian state owns 20% of the shares) and the exploitation of shale gas, which has awaited environmental permits for months. Under pressure from environmentalists, civil society and the opposition (the latter vehemently criticizing the effects of these projects), Romanian authorities have postponed any decision-making. President Basescu, which has championed the projects, believes that a lack of decision on these matters is the worst thing for Romania, which could pay dearly if sued by the foreign companies that won the projects. Moreover, president Basescu says, Romania has neither resources to create new jobs, nor billions of Euros to import high technology to exploit these resources. According to the head of state, partnerships with foreign companies are the only solution. The new Environment Minister however, known as an opponent to the Rosia Montana project, said that the approval process cannot be sped up, because specialists need to take into consideration all the aspects involved before issuing their approvals.

MPs in the legal affairs committee rule that former Environment Minister Laszlo Borbely be stripped of parliamentary immunity

The legal affairs committee of the Romanian Chamber of Deputies has approved the anti-corruption prosecutors’ request to lift the immunity of Laszlo Borbely, an MP of the Democratic Union of Ethnic Hungarians in Romania and former Minister of the Environment. Borbely resigned last Thursday, being suspected of influence peddling and false statement of wealth. According to prosecutors, Borbely had allegedly benefited from works worth 20 000 Euros to refurbish an apartment. In exchange for this, Borbely helped a company in Satu Mare secure contracts from the Romanian Waters, an institution subordinated to the Environment Ministry. On the other hand, in his wealth statement, the minister wrote that he owned no real estate property, but legal sources claim the Borbely family does own such a property.

Romania has got a new referendums law

Romanian President Traian Basescu has promulgated the new Referendum Law, which has already stirred controversy, especially since it was adopted in an election year. According to the new law, Parliament must endorse the request to hold a referendum within 20 days, following the voting of the majority of attending senators and MPs. Also, if the referendum is held at the same time with parliamentary, presidential, euro-parliamentary or local elections, it can be organized in the same election-polling units. Still, the main amendment to the law regards impeachment. Under the new law, the head of state can only be removed by 50+1 of the votes cast by voters. So far, half plus 1 of the expressed votes were needed to sack the president. The social-liberal opposition has criticized the law, saying it unjustifiably boosts the president’s position, whose removal through referendum thus becomes almost impossible. Political analysts say the current head of state, who sees plummeting approval rates, needs a minimum form of protection in case the opposition wants to impeach him following autumn’s parliamentary elections.

The Romanian Prime Minister holds the first talks with trade union leaders

Romanian Prime Minister Mihai Razvan Ungureanu on Tuesday met with leaders of the main trade union confederations, for the first time. He made a proposal for them to work together to find solutions for economic growth. Ungureanu said the Government’s priorities are combating poverty and generating economic growth in disadvantaged areas. Also, he stressed the government’s’ interest in ensuring better salaries and creating more jobs. In turn, trade union leaders said they were ready to participate in talks and work with the government, provided it was a ‘real dialogue’. The parties agreed to resume talks after Easter, with an agenda including three topics: fighting tax evasion, the creation of new jobs and identifying investment opportunities.