A joint IMF, European Commission and World Bank delegation is in Bucharest for talks with the Romanian authorities on the recent economic developments, the fiscal and monetary policy and the progress made with regard to reform implementation in this country. According to the IMF, the main challenges for Bucharest are to ensure macro-economic stability and stimulate economic growth. After talks with representatives of Romania’s international creditors, president Traian Basescu said that a new agreement with the IMF was decided, with the approval of PM Victor Ponta and Central Bank Governor Mugur Isarescu.

The National Bank of Romania changes economic forecasts.

The National Bank of Romania estimates a 5.1% inflation rate for 2012, way higher than the 3% target. The Central Bank Governor, Mugur Isarescu, says that the growth was generated by an increase in prices, especially of foodstuffs, and the depreciation of the Romanian currency, the leu, against the main hard currencies. He has warned that there will be no economic growth in Romania next year, unless European funds are unblocked. Also, the Governor has stated that adopting the Euro in 2015 is out of the question, but the attempt to meet accession criteria, including maintaining the budget deficit under 3% of the GDP is a good exercise in discipline. In his opinion, by keeping the national currency at a stable exchange rate, Romania has gained flexibility in adjusting interest rates, controlling liquidities and has allowed the Romanian currency to depreciate, in order to reduce the budget deficit.

The campaign for parliamentary elections is on in Romania.

The election campaign for December 9th parliamentary elections has started in Romania. This is the third time this year that parliamentary parties are in campaign, following the local elections in June and July’s referendum on the impeachment of president Traian Basescu. Senators and MPs will be elected through single voting. Some 2,000 candidates are fighting for the 452 seats in Parliament: 137 for senator, and 315 for deputy. Out of the 452 seats, 40 are earmarked for Bucharest, and 6 for the Diaspora. Romanians outside the borders are represented by 4 deputies and 2 senators. 18,751 polling stations will be organized, of which 295 abroad. Most of them will be in Italy, Spain, the US, France and the Republic of Moldova.

The Romanian Foreign Minister Titus Corlatean visited Iraq.

Early this week, the Romanian Foreign Minister, Titus Corlatean, paid a visit to Iraq, focusing on business opportunities. After high level talks in Baghdad, he announced that Romania and Iraq will strike a number of partnerships in the field of energy, the chemical and petro-chemical industry, in the oil sector, constructions, infrastructure and agriculture. Iraq is interested in attracting Romanian investors in these fields, said the Iraqi President Jalal Talabani during the talks he had with the Romanian official. The two voiced their support for projects of training Iraqi students in Romania, thus resuming the tradition of Iraqi youth specializing in Romanian higher-education institutions. Also in Baghdad, Titus Corlatean met with Prime Minister Nouri al Maliki and the Iraqi Foreign Minister Hoshyar Zebari.

The Romanian Palestinian-born Raed Arafat is the new Minister of Health.

Raed Arafat, the Romanian Palestinian- born physician who established the Mobile Emergency Service for Resuscitation and Extrication – SMURD – in the 1990s, is the new Romanian Minister of Health. On October 1st, Victor Ponta had become the interim minister, after the resignation of Vasile Cepoi. Since 2007, Arafat was an undersecretary of state with the line ministry. In January, he criticised the draft health law, under debate, saying it would destroy the integrated emergency system. Roughly criticised by the President of Romania, Traian Basescu, Arafat resigned. Subsequently, the draft law was withdrawn, and Arafat came back to the Health Ministry, to further develop the field to which, as he himself stated, he had devoted his entire career.

The international Henri Coanda airport in Bucharest has a new terminal.

Early this week, a new terminal was inaugurated at the Henri Coanda International Airport in Bucharest. The construction of the new facility, one of the most expected infrastructure projects this year, was made in 17 months, at a cost of 52 million Euros. Both passengers and airliners now benefit from high-level services and facilities, supported by last generation technology. The building, which has 4 stories and serves all domestic flights, has actually doubled the airports’ processing capacity, adding another 52 check-in desks to the existing 52. The new terminal was designed to meet the Schengen accession requirements.