Fiscal & Political Report (November 15-11, 2024)

Political Updates

??Internal Affairs

???First Round of Presidential Elections This Weekend This Sunday, November 24, Romanian citizens will cast their votes in the first round of the presidential elections, with polling stations open nationwide from 07:00 to 21:00. For Romanians abroad, voting options include mail-in ballots or in-person voting over three days, from November 22 to 24. Notably, voters in Bucharest will encounter four ballots, as the presidential elections coincide with a local referendum addressing key issues like mayoral authority, tax distribution, and funding health education in schools.

These elections are pivotal for Romania’s future, shaping its governance and international representation within the EU and NATO. Let’s explore the profiles of the main candidates vying for this crucial role:

• Marcel Ciolacu (PSD): Current Prime Minister, lawyer, and seasoned politician, leading polls despite controversies surrounding his tenure and connections.
• Elena Lasconi (USR): Former journalist and rising political star, with recent gains in popularity making her a serious contender.
• George Simion (AUR): Ultraconservative and euroskeptic candidate, drawing support with nationalist rhetoric, but raising concerns about Romania’s Euro-Atlantic commitments.
• Nicolae Ciuc? (PNL): Former military leader and experienced politician, now trailing in polls due to scandals.
• Mircea Geoan? (Independent): Former NATO Deputy Secretary General, struggling with campaign challenges and accusations of misconduct.

External Affairs

???? Roxana M?nzatu Joins the European Commission Leadership Romania’s Roxana M?nzatu has been appointed as Vice-President of the European Commission, signaling the country’s growing influence in EU policymaking. Her role, alongside five other Executive Vice-Presidents, strengthens Romania's voice in shaping key policies at the European level.

?? OECD Approval for Romania’s Digital Policy Romania has made significant progress toward OECD membership by receiving formal approval for its digital policy alignment. This milestone highlights advancements in governance for emerging technologies, cybersecurity, and digital innovation, bolstering Romania's position in the global digital economy.

?? Fiscal and Economic Updates

??Tax Amnesty Extension

The Romanian government has extended the deadline for applying for tax amnesty to December 19, 2024, allowing more time for taxpayers to regularize their fiscal situations. Additionally, a phased increase in excise duties on alcoholic beverages will take effect in 2025, reflecting efforts to bolster state revenues despite political opposition to tax hikes.

?? Romania’s Inflation Challenge

With an inflation rate of 5%, Romania leads the EU for the eighth consecutive month. This economic pressure has prompted the National Bank of Romania to maintain its monetary policy interest rate, signaling ongoing fiscal challenges.

?? Training for SME Employees

In a positive development, the Romanian Digitalization Authority extended the deadline for SMEs to apply for grants under the National Recovery and Resilience Plan (NRRP). This initiative focuses on digital skill upgrades, offering opportunities for workforce development.

This week’s updates underscore Romania's dynamic political and fiscal landscape, with critical elections, economic challenges, and strides in European integration. Stay informed and engaged as these developments unfold, shaping Romania’s trajectory at home and abroad.

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