Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

No. 1/ 6th Year 1th – 15 th of June 2013 Politics 1. Traian B ăsescu attends Central Europe Summit of Heads of State, in Bratislava 2. PM Ponta’s visits to Germany and Slovakia 3. ForMin Corlatean met his German counterpart Guido Westerwelle 4. ForMin Titus Corl ăţean visit to Paris 5. Senate Speaker attends Association of European Senates Meeting in London 6. Traian B ăsescu informs he has started procedure for Referendum on unicameral Parliament 7. MAE director Cornel Feru ţă appointed IAEA as chief coordinator 8. Meeting of PM Victor Ponta with Tony Blair in Bucharest 9. ForMin Corlatean’s Forthcoming visit to Moscow in July could restart bilateral relations 10. PM Victor Ponta visit to Poland 11. ForMin Corlatean visit to Egypt and Morocco 12. Prince Charles visit to Romania 13. Serbian PM visit to Bucharest

Economics 1. Romania sees third big economic growth among EU countries in Q1 2. Romania registers highest industrial production increase in EU in April 3. Romania to cut green certificates 4. Industrial output up 4 pct in April (gross series) 5. German Group Daimler to inaugurate investment project in Sebes on July 29 6. Romania’s export grew 7.2 percent and imports 0.5 percent in first four months 7. Romanian agriculture will receive bln 10.6 euros over next seven years 8. Romania has very big trade surplus with UK and Russia – an undisputable advantage 9. FinMin : Romania’s economic growth over full 2013 to stand at around 2 pct

Culture 1. India’s Anand Gandhi’s Ship of Theseus wins Transylvania Trophy at TIFF 2. Cultural route: In the Footsteps of the Habsburgs - tourism project in north-eastern Romania 3. Launch of Wild Carpathia Epsiode 2: From The Mountains to The Sea

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• Politics 1. TRAIAN B ĂSESCU ATTENDS CENTRAL EUROPE SUMMIT OF HEADS OF STATE, IN BRATISLAVA President Traian Basescu attended the 18th Central Europe Summit of Heads of State, with the topic 'Growth Strategy for Post-Crisis Recovery,' held in Bratislava. Traian Basescu participated in the two plenary sessions of the Summit. In Bratislava Castle he hold a joint press conference with the Presidents of the Republic of Austria, Lithuania, Poland and Hungary, and participated in the official dinner hosted by Slovak Republic President Ivan Gasparovic. The Slovak Presidential Cabinet Chief, Jan Soth, underscored that this summit meeting 'represents one of the few platforms through which the European Union member states can meet non-member states of the block and can engage in a debate on topical issues,' according to TASR Slovak News Agency. 'The heads of state approached key-matters in the political, economic, social and security area, associated with the post-crisis developments in our region and on the entire continent,' President's Spokesman Marek Trubac said. According to TASR, the first day of the Summit also count on the presence of European Council President Herman Van Rompuy. NABUCCO PROJECTS PRIORITY , EU ENLARGEMENT ARE BRATISLAVA SUMMIT OBJECTIVES ANNOUNCED BY BASESCU Declaring Nabucco gas pipeline project a priority, the European Union enlargement and the Danube Strategy are among the objectives that Romanian President Traian Basescu supported at the Bratislava Summit meeting of the Central European leaders. 'It is an interesting summit by the number of officials it gathers there. There are, if I am not mistaken, 21 heads of state representing various regional or sub-regional groupings. The topics will be varied and they target the situation to date of the European Union, the EU members or non-members that are part of these organisations', Basescu told reporters on leaving at Henri Coanda ‘Otopeni' Airport. The president stressed Romania will ‘without reserves' back the continuation of the EU enlargement, particularly as regards the Republic of Moldova and the Western Balkans. 'We all speak of the Danube Strategy, but now it's the time the European Union member states put forward the funding drafts for the 2014-2020 budget in a correlated manner and assigned (funds) to the project aimed at upgrading the Danube transport and attaining this objective from the budgets distributed each Danube River state,' he said. Added Basescu: 'Last but not least, I hope the interested states - I mean, first and foremost, Bulgaria, Romania, Hungary and other states - should together sign a letter declaring Nabucco a priority project. You may be well aware there is special competition for the Azeri gas between Nabucco project and TAP project, which goes farther South, to Greece and . We will have to have a firm unified position of all the interested member states and I am speaking here not only of the states on the territory of which Nabucco will pass, but I also target the beneficiary states, such as Poland, for example, which can be a beneficiary of the gas carried by Nabucco pipeline'. At this summit, Romania pronounced in favour of accelerating the pace of implementing the structural 2

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reforms as the key to boosting competitiveness in the EU and outside it, for the states aspiring to become members. Another issue Romania raised in Bratislava is the high number of young jobless and insisted on trying to find solutions.

2. PM PONTA’S VISITS TO GERMANY AND SLOVAKIA Prime Minister Victor Ponta's visits to Germany and Slovakia offered opportunities for Ponta to meet officials of the two countries as well as investors and conduct a strong lobby for Romania, which was presented as an attractive place for investment. In exchange, he was asked to respect the rule of law, to fight against corruption and increase transparency. Germany Chancellor Angela Merkel told Ponta that the German economy would like to see the standards of the rule of law respected, the corruption fought against and the existence of transparency. Ponta underscored that Romania regained stability and wants to become again Germany's strategic and trustful partner. 'The main message I want to convey to the German Government is that Romania, after some years of economic, social and political crisis, regained stability and wants to become again Germany's strategic and trustful partner,' Ponta said on the first day of his visit to Germany. He underscored that a stable, democratic and strong Romania could be a partner for Germany and Europe at the eastern borders of the European Union. To German investors, Ponta told that he intends to be the most business-friendly Social Democrat in Europe, pointing to the importance of investments ad projects under public-private partnerships for infrastructure development in Romania. At a conference hosted by the Deutsche Bank in Berlin, Ponta talked about the positive aspects in Romania: a 2.2-per cent economic growth on the forts quarter of 2013, reduced deficits and unemployment, qualified workforce, along with deficiencies, such as poor infrastructure and a small absorption rate of European funds.

His outmost priorities, said Ponta would be projects under public-private partnerships, the absorption of European funds and funding infrastructure projects. 'I am fully aware that without acceptable infrastructure all investment projects will get stuck in the end,' said Ponta. He gave assurances that his Government will preserve the 16-per cent flat income tax throughout his term in office, an aspect commended by Chairman of the Committee on economic relations of Germany's business community with Eastern Europe Eckhard Cordes. Cordes pointed out that investors disagree with frequent modifications in the tax system and that they need stability and predictability. He also recommended that efforts be intensified to fight against corruption and red tape and increase transparency. These desiderata were like a leitmotif of all of Ponta's meetings in Germany. Qualified young people, the rule of law, predictable legislations and the elimination of corruption are the main conditions the Romanian Government has to secure if it is to encourage German investments 3

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______in Romania, said Prime Minister of Germany's Baden-Wurttemberg land Winfried Kretschmann at a joint press conference on Tuesday in Stuttgart with Prime Minister Ponta. Ponta also toured the headquarters of the Daimler company, where he met member of the Daimler administration board Andreas Renschler. He also toured the Daimler factory, where he had a short conversation with Romanian workers from Cugir attending professional training classes there. They are to return to Romania once Daimler opens its factory at Sebes. Daimler will relocate 50 per cent of its Stuttgart-based gearbox factory to Romania. Daimler AG will invest over 300 million euros in its subsidiary in Romania Star Transmission. The German carmaker announced this April it is intending to build a factory in Romania that will manufacture gearboxes for the luxury makes of Mercedes Benz. Ponta announced on Monday evening that by autumn another important German company will invest in Romania, refusing to provide details. In the second part of Tuesday, Ponta visited Bratislava. He and his Slovak counterpart Robert Fico pleaded for intensifying economic ties between Romania and Slovakia, reaching agreement on the organisation of a business forum to invite investors of both countries interested mainly in agriculture, energy and industry. 'It was to this end that we decided to delegate our economic ministers to organise a business forum to be attended by all interested people,' said Fico. Ponta underscored that the two countries can improve their economic relations and increase commercial exchanges. He pointed out that all the proposals for economic cooperation are welcome, voicing the 'clear wish' of the Romanian Government to support investors.

3. FORMIN CORLATEAN MET HIS GERMAN COUNTERPART GUIDO WESTERWELLE Romania's Foreign Minister Titus Corlatean met in Berlin his German counterpart Guido Westerwelle, to whom he introduced the latest domestic developments in relation to the country's accession to the border-free Schengen Zone, voicing a legitimate hope that a positive decision on this matter will be taken by the end of the current year. 'In this context, Corlatean underscored that the Romanian authorities are playing responsibly the part assigned to them at the eastern borders of the European Union and are fulfilling all the criteria established under the Schengen legislation, a fact that has been confirmed by the European Commission as well,' Romania's Ministry of Foreign Affairs (MAE) reports in a press release issued on Monday. The meeting was part of an official visit to Germany by Romania's Prime Minister Victor Ponta. The two ministers hailed the excellent stage of the bilateral relations between Romania and Germany that have been underscored by frequent high-level contacts over the past years and by the consolidation of Germany's position as Romania's main trade partner and a major investor. Also highlighted was the contribution of the German minority of Romania and ethnic Germans who have immigrated to Germany to the development of cooperation between the two countries. Corlatean

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informed his German counterpart of the Romanian Parliament having passed a law concerning the compensation of deported or persecuted people by the late Romanian communist regime which provisions will benefit the Germans who repatriated from Romania and are now living in Germany. The recently adopted decision by the Romanian Government and Parliament was hailed by the German minister. MAE also reports that a common interest in developing the Eastern Neighbourhood of the EU as a stable and prosperous area was reaffirmed, as well as an interest in supporting the European prospects of the Western Balkans. The two ministers tackled the latest developments in Moldova, voicing support for the continuation of domestic reforms and the promotion of European objectives by the new Moldovan Government. Corlatean underscored the importance to extend Moldova clear European prospects as well as the need for progress in the context of the forthcoming Vilnius summit meeting in relation to the association agreement, the free trade agreement and the liberalisation of visas. Also discussed were the latest developments in the Middle and Near East, with the two ministers having exchanged opinions following their recent tours to that region. Corlatean, who previous to his visit to Germany toured Egypt and Morocco, underscored Romania's readiness to continue its contribution toward the democratisation, institutional construction and reconstruction in that region.

4. FORMIN TITUS CORL ĂŢEAN VISIT TO PARIS My visit to Paris confirmed a privileged political relation between Romania and France, Minister of Foreign Affairs, Titus Corlatean, told Agerpres, also adding that Prime Minister Jean Marc Ayrault could pay a visit to Bucharest in July. ‘I think that the visit was a success, the political talks I had with my French counterpart, Laurent Fabius, with the Minister of European Affairs, Thierry Repentin, the public hearing at the Committee on Foreign Affairs of the National Assembly, the debate I was the main guest of at the very prestigious French Institute for International Relations, all these political contacts confirmed a privileged political relation between Romania and France', the Minister concluded after his official visit to France. Titus Corlatean also said that the French Prime Minister is expected to pay a visit to Romania in July, including for inaugurating the new French high school in Bucharest. Among the topics approached during his visit to France, he also mentioned the roadmap of the Strategic Partnership and the concrete measures to be taken as part of the implementation of this Strategic Partnership. Prime Minister Victor Ponta and his French counterpart had signed the roadmap a few months ago in Paris. ‘We have discussed about economy and projects under development, including such projects that I will say are more special, being related to the high competitiveness area, the ELI - Extreme Light Infrastructure Project, the biggest laser project worldwide to function near Bucharest, with France to bring its technical contribution. Cultural exchanges were also approached during the meetings I had in France, especially the Francophonie issue and the new measures Romania is adopting to support Francophonie in the country, which measures are highly appreciated in France', said Corlatean. 5

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Other topics of current interest at European and international level were also discussed. ‘I pleaded the cause of Moldova wanting to become EU member state, I discussed the Balkans issue and of course such topics of major interest on the international agenda: Syria, the Middle East, Mali etc', said the head of the Romanian diplomacy.

5. SENATE SPEAKER ATTENDS ASSOCIATION OF EUROPEAN SENATES MEETING IN LONDON Senate Speaker Crin Antonescu attended the 15th meeting of the Association of European Senates, an event hosted by the British Parliament's House of Lords. The working sessions was dedicated to the following two subjects: 'Relations between upper and lower chambers' and 'Senates and the use of social media.' On this occasion, the Romanian Senate Speaker had bilateral meetings with counterparts from France, the , Poland, Spain, as well as a series of meetings with representatives of the Parliament and Government of the host country. Crin Antonescu met with Deputy Prime Minister Nick Clegg, with the agenda of talks of the two officials including subjects such as the free movement of labour, migration and Romanian-British cooperation within EU institutions. The Romanian Senate Speaker also met chairman of the House of Lords Romania - UK Friendship Group, Lord Davies of Stamford, and representatives of the Romanian Business Club.

6. TRAIAN B ĂSESCU INFORMS HE HAS STARDED PROCEDURE FOR REFERENDUM ON UNICAMERAL PARLIAMENT President Traian Basescu Tuesday evening informed that he started the procedure for a new referendum that includes two questions - whether the want unicameral or bicameral Parliament and a legislature cut down to 300 lawmakers. Basescu said he no longer has any political interests relating the ongoing revision of the Constitution and he pointed out that the Parliament is among the institutions that should be revised. 'I would start from a crucial prerequisite in the stand I take, namely that I no longer have any political interests relating the revision of the Constitution. I can no longer run for another term, I can no longer be the president of Romania. That is why I see things with neutrality and in the Romanians' interest', the head of state said in a statement for the reporters at the presidential Cotroceni Palace on the issue of the revision of the Romanian Constitution. He spoke of the goal he had set ahead of taking up his second president's term, namely to modernise the Romanian state. Basescu underscored that he succeeded in some of the targets and failed in others, but an essential goal had targeted making the state more flexible. 'Also a goal was to revise other institutions too, not only to cut the state apparatus. One of the fundamental institutions that needed review was the Parliament of Romania, a Parliament that can be described as often being inefficient', the president said.

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7. MAE DIRECTOR CORNEL FERU ŢĂ APPOINTED IAEA AS CHIEF COORDINATOR Director-general for Political Affairs with the Romanian Ministry of Foreign Affairs (MAE) Cornel Feruta was appointed chief coordinator with the International Atomic Energy Agency (IAEA), informs a MAE release. From this position, which he will effectively take over in September 2013, the Romanian diplomat will coordinate IAEA internal and external activities. 'Apart from standing testimony to his professional competencies, this new success of a Romanian diplomat in acquiring an important position with the IAEA represents a recognition of Romania's role and contribution to the Agency's activities in strengthening international security. I express my satisfaction for this development which takes place at a time when the Ministry of Foreign Affairs actively promotes Romanian diplomats to positions of high responsibility with international organizations,' said Foreign Minister Titus Corlatean. The decision of IAEA Director General Yukyia Amano to appoint the Romanian diplomat to this important leadership position with the Agency was welcomed by the Romanian Ministry of Foreign Affairs. Cornel Feruta is a career diplomat who served over 15 years with the Ministry of Foreign Affairs. His experience with the national diplomatic service includes execution and management positions with the OSCE and Western Balkans departments, stints as the ForMin's Office manager, and Director- general for Political Affairs. Feruta also acted as Romania's Permanent Representative to the International Organizations in Vienna between 2007 and 2012. The international experience of the Romanian diplomat also includes the position of vice president of the IAEA Board of Governors (2008-2010), president of the IAEA 55th General Conference (2011), and president of the Second Preparatory Committee for the 2013 Review Conference of the Parties to the Treaty on the Non-Proliferation of Nuclear Weapons.

8. MEETING OF PM VICTOR PONTA WITH TONY BLAIR IN BUCHAREST Romania's Prime Minister Victor Ponta, national leader of the Social Democratic Party (PSD), major in the ruling Social Liberal Union (USL) met former British Prime Minister Tony Blair, who visited Bucharest after a previous visit in 2012. Ponta posted on his Facebook page several pictures of him and Blair in an album called 'Special meeting with Tony Blair.' After a meeting at the headquarters of PSD, Ponta and Blair walked to a restaurant, where, Ponta says, Blair enjoyed Romanian food. Ponta says discussing with somebody who was prime minister for ten years was an extraordinary opportunity. 'On the labour market and in the investment area, Romania has to be taken increasingly more serious and I believe that, although I am not overly optimistic, just realistic, I believe Romania can become a Poland in its geographical area,' said Ponta after meeting Blair . Ponta also says that when he asked him for a piece of advice for Romania, Blair said Romania should increase its self- confidence. 'Self-confidence was his advice, because if we do not have confidence in Romania nobody else will have more confidence than we have,' says Ponta. 7

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Blair was previously in Romania in 2012, when he delivered a conference on the future of Europe in the new international order.

9. FORMIN CORLATEAN’S FORTHCOMING VISIT TO MOSCOW IN JULY COULD RE- START BILATERAL RELATIONS Romanian Foreign Minister Titus Corlatean will be visiting Moscow in July, the spokesperson for the Romanian diplomacy Brandusa Predescu told Agerpres on Friday. The last Romanian top diplomat to have paid an official visit to Moscow was Cristian Diaconescu on Feb. 27, 2009. The topic of the Romanian-Russian relations was tackled at debates sponsored by Chatham House Rules on Thursday, during which it was said that Russian Foreign Affairs Minister Sergey Lavrov is in favour of trying to improve the relations with Romania, as he stressed the Romanian-Russian dialogue is lagging behind. Even though statistics show a rise in the commercial exchanges between the two states - with such trade volume hitting 4.422 billion dollars in 2012, up by 1.8 percent from 2011 - the society remains fraught with ‘exaggerated stereotypes', the reason for which is the over-politicization of history. Moscow would prefer to ‘separate history from the political factor' as it believes that if the historic aspects prevail in the bilateral dialogue, the relations between the two states will not record improvement. Hope was voiced during the debate that the Romanian foreign minister's forthcoming visit to Moscow will be able to mark a re-start of the bilateral relations, to the benefit of both states, a decade since the signing of the Romanian-Russian Basic Political Treaty (July 4, 2003), but also the need to create events having a positive symbolical meaning for the accelerated re-opening of the political dialogue at the highest level. Romania and Russia - two Black Sea countries - cannot remain ‘disconnected' amid the globalization, which entails a consolidation of the relations among the states, it was also said at the event, where there was argued in favour of setting priorities, addressing the problems that can be solved and delaying the difficult aspects. As regards the conditions for the investors, the Russian side says it does not claim advantages, but neither does it want to be discriminated and as such it evoked some problems being faced by Gazprom Neft and Lukoil. With respect to the Republic of Moldova, Moscow considers that being a member of several alliances is not an ‘antagonistic' situation and addresses the issue as follows: 'Romania speaks of the Republic of Moldova's chances to join the European Union. Why cannot we too say that it can join the Customs Union (of Russia-Belarus-Kazakhstan - editor's note)?!' The main conclusion of the debates was the need to use the real potential of the bilateral relations on a pragmatic and constructive basis, to the mutual benefit.

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10. PM VICTOR PONTA VISIT TO POLAND Romania must coordinate as much as possible the economic and development policies with Poland, Romanian Prime Minister Victor Ponta said on Tuesday, before the visit he would pay to Warsaw. Polish Prime Minister Donald Tusk said Wednesday that Romania is a very good example of how to weather a crisis, adding that Poland and Romania are interested in diversifying energy resources. In a joint press statement with Romania's Prime Minister Victor Ponta he said Romania's two-per cent economic growth in the first half of the year is praiseworthy. He added that Romania has been for some time Poland's strategic partner, voicing his appreciation. Bilateral relations between Poland and Romania, he said, are excellent. An important aspect is played by economic ties between the two countries, he said, adding that that Ponta mentioned how Romania weathered the economic crisis, as well as the effects on Romanians, who had to put up with budgetary cuts. Tusk also talked about Poland's support for Romania in relation to European funds. He said Romania and Poland are interested in promoting what has been done in relation to shale gas and in diversifying resources, reiterating Poland's support for the Nabucco gas pipeline. Poland and Romania, he added, will back up actions to actually diversify energy sources. AGREEMENT ON COOPERATION IN DEFENCE AREA BETWEEN ROMANIA AND REPUBLIC OF POLAND GOVERNMENTS , SIGNED IN WARSAW Romanian National Defence Minister Mircea Dusa and his Polish counterpart Tomasz Siemoniak in Warsaw on Wednesday signed the Agreement on the bilateral cooperation in the defence area between the Governments of Romania and of the Republic of Poland. 'The objectives of this Agreement are the strengthening of the political - military dialogue, the creation of some direct partnership relations between the categories of forces and the education military institutions. The document reflects the statute of the two NATO and EU member states and will allow the signing of specific technical understandings in various areas,' the Romanian National Defence Ministry (MApN) informs in a release. In this context, Mircea Dusa said that the agreement 'will bring to the implementing of concrete cooperation projects and programmes on the level of the National Defence Ministry, included in the Action Plan.' At the same time, the Romanian official said that the rounds of bilateral consultations on a Secretary of State level between the two Defence Ministries were constructive and he voiced his confidence in the existence of the prospects for an intensified collaboration between the two institutions, which he, as Minister, would support. 'The cooperation between Romania and the Republic of Poland will consist of peace, humanitarian missions, but also in the development on a technical-military level of the three categories of forces. Another element included in the Agreement will be the military education, in the context of the process of professional preparation and training, especially of the air forces staff. The research in the area of defence technology is also included in the Agreement,' the release shows.

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The two delegations had an opinion exchange on the topic of NATO and EU operations. In the area of EU's Security and Common Defence Policy, they discussed the experience of the active involvement of the two countries in the civil and military missions undergoing or scheduled in the coming period.

11. FORMIN CORLATEAN VISIT TO EGYPT AND MOROCCO Romania's Foreign Minister Titus Corlatean was on a tour to Egypt and Morocco, June 6 - June 8, to meet his Egyptian counterpart Kamel Amr and his Moroccan counterpart Saad Eddine El Othmani. The Romanian Foreign Ministry (MAE) was also welcomed by Egypt's President Mohamed Morsi, Moroccan Prime Minister Abdeliah Benkirane and Speaker of the Chamber of Representatives of Morocco Karim Ghellab. Corlatean met Secretary General of the League of Arab States Nabil El Arabi as well as members of the Egyptian and Moroccan cabinets, representatives of the local political parties and local business people. 'The tour reflects the priority interest of Romania in developing cooperation with Arab countries, while reconfirming the objective of restarting political dialogue for consolidating the bilateral ties with the two countries,' MAE explained. In his conversations with the Egyptian and Moroccan officials, Corlatean discussed the latest developments in bilateral relations as well as ways to restructure and amplify cooperation in all areas - politics, economy, investment and culture. Also discussed the cooperation inside international organisations as w well as international issues of major interest and the latest regional developments.

12. PRINCE CHARLES VISIT TO ROMANIA PM PONTA MET PRINCE CHARLES AT THE MUSEUM OF ART COLLECTIONS Prime Minister Victor Ponta says he and visiting Prince Charles made a promotion of the Bucharest- based Museum of Art Collections, saying that the prince had an opportunity to see probably for the first time the masterpieces of some Romanian painters. 'I was very thankful to Prince Charles for having accepted my proposal. We had scheduled a meeting at the Victoria Government Palace, as in fact another one was scheduled for the Cotroceni Presidential Palace. I suggested to the staff of Prince Charles that we should not hold a traditional meeting at Victoria Palace, but take the opportunity of his presence in Romania to open together after very many years all the three wings of the building. By his presence, Prince Charles not only saw for the first time masterpieces of Romanian painters Grigorescu, Tonitza and Petrascu, but together we advertised the museum and I hope the starting tomorrow the number of visitors will increase because it has been a long time since the works of arts here could be seen,' said Ponta. Ponta on Monday welcomed visiting Prince Charles of Wales at the Museum of Art Collections in Bucharest. Prince Charles arrived last Thursday in Romania. During the first evening of his stay he was

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a guest of Count Kalnoky Tibnor of Micolosara, Cavasna County. On Friday he toured the village of Archita of Mures County, while he spent the Saturday morning in the Zalan Valley.

PRESIDENT TRAIAN BĂSESCU RECEIVED PRINCE CHARLES AT COTROCENI PALACE President Traian Basescu at the Cotroceni Palace on Monday had a meeting with Price Charles, who is paying a private visit to Romania and who said that he remained impressed every time with the hospitality and warmth Romanians received him. 'Mr President Traian Basescu during the meeting insisted on thanking for the support and trust that His Royal Highness Charles, Prince of Wales, grants Romania, but also for the involvement of the foundations His Royal Highness coordinates in projects aimed at biodiversity preservation, sustainable development and social responsibility in Transylvania. His Royal Highness Charles, Prince of Wales, spoke of the joy he felt each time he visited our country. At the same time, His Royal Highness added he remained impressed each time with the hospitality and warmth Romanians received him during the visits he paid to our country,' shows a Presidential Administration release. According to the source, President Traian Basescu told Prince Charles that his visits to Romania represent a great favour made to the country, for they bring a lot of publicity to Romania. ‘I watched, in one way or another, on television your visits paid to several localities in Transylvania. You are doing us a great favour with you presence in Romania. I saw Carpathia (editors' note: it refers to the ‘Wild Carpathia' documentary film). You are bringing us a lot of publicity', Basescu told the heir of the British Crown, during the official talks between the two high officials. President Traian Basescu on Monday received Prince Charles' visit to the Cotroceni Presidential Palace. 13. SERBIAN PM VISIT TO BUCHAREST Stable and friendly governments in Romania, Serbia and Bulgaria are absolutely necessary for regional relations, Romania's Prime Minister Victor Ponta told a joint press conference on Friday with his Serbian counterpart Ivica Dacic, who in turn said the friendship between Serbia and Romania will be 'key to stability in the Balkans.' 'On this occasion of Serbian Prime Minister's presence in Bucharest, I want to voice satisfaction over the positive developments in Romania's neighbour countries. I was very glad and I extended congratulations to the prime minister and the new government in neighbour Bulgaria. Stable and friendly governments in Romania, Serbia and Bulgaria are absolutely necessary for regional relations,' said Ponta. He also voiced satisfaction over the installation of the new prime minister of Moldova Iurie Leanca, about which cabinet said it is a pro-Europe one. 'I believe that together with Prime Minister Dacic, Prime Minister Oresharski and Prime Minister Leanca as well as all the other heads of government in the region, young and pragmatic, we can work together for the better. I want to assure Mr. Dacic that Serbia will always have only friends in Romania,' said Ponta. Dacic pleaded in his turn for solving all the outstanding issues between Serbia and Romania, 11

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______mentioning to the point the situation of the Romanian minority of Serbia. On his ongoing visit to Romania, Dacic, who is also the interior minister of Serbia, and his Romanian counterpart Radu Stroe signed a protocol for the establishment and operation of a joint border contact point at the border between Romania and Serbia. PM VICTOR PONTA ASSURES SERBIAN COUNTERPART OF ROMANIAN GOVERNMENT ’S ENTIRE SUPPORT Premier Victor Ponta on Friday assured his Serbian counterpart Ivica Dacic of Romania's 'entire support' for starting the negotiations for Serbia joining the European Union. The Belgrade official voiced hope that the date for beginning the talks with Brussels would soon be made known. 'I wanted to voice publicly too my admiration and support for the efforts made by Prime Minister Dacic and Serbia's Government for modernizing and connecting Serbia to the European integration process. On behalf of Romania's Government I want to voice my entire support for starting the negotiations for Serbia joining the European Union and, on the basis of our friendship, I have offered the support of our institutions, of our experience, which was sometimes positive and some other times, negative, in the pre-accession process and Romania will be ready to give any necessary support to Serbia for it to be able to meet all procedures as quickly as possible.,' said Victor Ponta. The Romanian Head of Government in context welcomed 'the courage and determination of the Serbian Government and especially of Premier Dacic when it comes to the development of the relations between Belgrade and Pristina.'

The Heads of Government in Serbia and Kosovo said in Brussels, on April 19, that they came to an agreement in principle on getting the relations between Belgrade and Pristina back to normal after several months of difficult negotiations. 'It is in the interest of Romania and of the entire region to have stability and cooperation in our area. Romania will always be a faithful friend of Serbia and, at the same time, we shall support all the efforts made by the Serbian Government for bringing relations back to normal and for making these relations as constructive as possible,' added Ponta. Serbian Premier Ivica Dacic said in his turn that Romania's support in the process of integrating Serbia into the European Union was very important for his country. 'We expect that Serbia should get a date for beginning the negotiations. All criteria pertaining to the domestic policy, to the dialogue with Pristina and other criteria, referring to the domestic situation, are met,' he said. Belgrade hopes that, during the next European Council, in June, they should establish a date for starting the negotiations for joining the EU. In context Dacic voiced wish to consolidate economic and cultural relations with Romania. 'Romania is a very important trade partner for Serbia. It is the third of the EU countries as regards trade exchanges with Serbia. Only Germany and Italy are ahead of Romania. And these trade exchanges are worth more than 1.5 billion euros. Our interest is to have trade exchanges worth even more and develop joint projects,' he also said. The Belgrade official added that the problems opened between Romania and Serbia must be 'discussed 12

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directly,' referring to the situation of the minorities in the two states. 'Considering the very good relations it has with Romania, Serbia thinks there must be no problem connected to national minorities, the Romanian one in Serbia and the Serbian one in Romania,' said Dacic, who added that 'the Vlachs' problem' must be solved. THE SERBIAN PRIME MINISTER RECEIVED AT THE COTROCENI PALACE President Traian Basescu received, on Friday, at the Cotroceni Palace, the Serbian Prime Minister, Ivica Dacic, occasion for the head of state to evoke the special relationship developed by Romania with the Republic of Serbia and to reiterate the firm support for the European prospects of this country. According to the Presidential Administration, Traian Basescu was keen to underline that the future of the Republic of Serbia is in the European family, integration which, once achieved, will contribute significantly to the stability, safety and prosperity of the entire region. The head of state welcomed the progress made by the Republic of Serbia in the priority areas, for EU accession, and recorded in the report presented by the European Commission in April this year. A particular attention in the framework of the dialogue has been paid to the issue of the Romanian community in the Republic of Serbia, President Traian Basescu saying that Romania wishes the equal application of standards in the field of national minorities protection for all Romanian ethnics living in this country and who are freely identified as ethnic Romanians, namely the right to education, information and religion in the mother tongue, the Presidency announces. In this context, the head of state expressed Romania's willingness to made available to the Serbian authorities Romanian language teaching staff for the schools in the region, as well as a collection of books in Romanian language. During the talks, President Traian Basescu welcomed the conclusion of the Agreement on normalization of relations between Serbia and Kosovo. Regarding Kosovo, Serbian Prime Minister Ivica Dacic expressed belief that identifying of some solutions for Kosovo will contribute significantly to the advancement of the accession process of the Republic of Serbia to the European Union. Ivica Dacic stated that the Republic of Serbia has a special interest in deepening bilateral relations with Romania in all areas of common interest, considering it as a natural friend. During talks on regional matters, Traian Basescu said that cancellation of the Summit of Cooperation Process in South East Europe (SEECP), which was to take place in Ohrid (Republic of Macedonia) on June 1, represents a major setback for the entire region and reiterated the importance of compliance with the understanding established between Belgrade and Pristina, bilaterally, about the representation of Kosovo within the regional cooperation formats, the Presidential Administration also informs.

• Economics 1. ROMANIA SEES THIRD BIG ECONOMIC GROWTS AMONG EU COUNTRIES IN Q1

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Romania scored the third big economic growth among the EU countries, in the first quarter of the year, compared to the previous quarter, and given that the Gross Domestic Products of the Eurozone dropped by 0.2 percent, and saw a 0.1 pct contraction in the EU countries (EU 27), informs revised assessment the European Union Statistical Office (Eurostat) made public on Wednesday. Thanks to a quarterly economic growth of 0.7 percent, Romania ranks the third among the EU states, same as Hungary and after Lithuania (1.3 percent) and Latvia 1.2 percent). Comparatively to the same time span of the last year, Romania's GDP grew by 2.2 percent, in Q1, higher figures seeing Latvia (5.6%) and Lithuania (4.1%).In exchange, the Eurozone economy registered an annual contraction of 1.1 percent, while the EU saw 0.67 percent contraction. National Statistics Institute (INS) data say that Romania's Gross Domestic Product in Q1, this year amounted to 154.887 billion lei, in current prices, and 0.7 percent higher in real terms vs. the Q4 of 2012, and 2.2 percent than in Q1 of the last year. INS revised 0.2 pct upwards, and up to 0.7 percent the economic growth of Q1, 2013 vs. Q4 of 2012, and 0.1 percent to 2.2 percent up compared to the first three months of 2012.

2. ROMANIA REGISTERS HIGHEST INDUSTRIAL PRODUCTION INCREASE IN EU IN APRIL Romania in April this year ranked first in the European Union in terms of industrial production increase, compared with the similar period of 2012, in the conditions in which the index dropped 0.6 percent in euro area (EA17) and 0.8 in the European Union (EU27), as show the data released by the European Statistics Office (Eurostat).

According to Eurostat, the industrial production advanced in eight member states and declined in 13 member states. The highest increases were registered in Romania (12.6 percent), Lithuania (5 percent) and Estonia (2.7 percent), and the most significant declines were recorded in Finland (minus 10.2 percent), Italy (minus 4.6 percent) and the Czech Republic (minus 3.4 percent). In April 2013, compared with the previous month, Romania was placed third in the European Union as concerns the advance of the industrial production, in the conditions in which the index went up 0.4 percent in the euro area (EA17) and 0.3 percent in the European Union (EU27). According to Eurostat, the industrial production dropped in 11 member states and went up in ten member states. The highest increases were registered in Ireland (3 percent), France (2.3 percent) and Romania (1.9 percent), and the most significant declines were registered in Finland (5.1 minus percent), Holand (minus 4.3 percent) and Portugal (minus 3.6 percent).

3. ROMANIA TO CUT GREEN CERTIFICATES The Romanian government has approved legislation that will severely cut PV incentives for investors. Critics say the move could lead to a halt in foreign investment for the country's solar market.

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

The Romanian government announced a new emergency government ordinance on June 7 that will lead to the unexpected suspension of two out of six green certificates awarded to photovoltaic energy generators and which industry officials believe could lead to the cancellation of many PV projects. The new ordinance modifies Romania’s earlier system that granted investors six green certificates per megawatt hour fed into the national grid if they completed their projects by the end of 2013. These certificates can then be traded in a price range of between a floor value of €27 ($35.70) and a cap value of €55 ($72.72), subject to indexation. As a result of these changes, which begin July 1, the Romanian Energy Regulatory Authority (ANRE) will still issue PV solar plants six green certificates but withhold two of them until March 2017. Significantly, this provision does not include any guarantees that the two withheld certificates will eventually be recovered, which is a major source of concern for the industry. This new ordinance is expected to go into force on July 1, provided the European Commission is notified beforehand. Ciprian Glodeanu, president of the Romanian Photovoltaic Industry Association (RPIA), told PV magazine: "It could be construed that according to this ordinance, a reduction of the green certificates for PV could occur even in the course of 2013. Nevertheless, it is not clear yet if the government would adopt any decision to reduce the green certificates for PV during this year. Such a reduction ... would obviously conflict with all public statements given so far by the representatives of the Romanian Energy Regulatory Authority, the energy minister and the prime minister, according to which there would be no reduction of green certificates before Jan. 1, 2014. "We consider that this ordinance is abusive, against the Romanian constitution and breaches the principle stated under the Energy Charter Treaty, which was ratified by Romania back in 1998," Glodeanu added. "Also, it is a clear sign sent by the government that it has no clear vision regarding the renewable energy sector, which, by the enactment of this ordinance, will become unstable and unreliable." Interestingly, as late as July 2012, the current government coalition supported law No. 134/2012, which stated that there would be no reduction of green certificates before Jan. 1, 2014, for PV and Jan. 1, 2015, for other technologies. "We do not understand what happened in these 10 to 11 months that triggered the government to change its opinion and to significantly alter the trust of investors in the Romanian business environment with these abusive measures. In these unpredictable and non- transparent circumstances, it is difficult to assess if investors will continue investing in the Romanian PV sector or if banks would keep on lending funds for such projects," Glodeanu warned. RPIA expects that "most probably a lot of projects will be cancelled," which will decrease foreign direct investment in Romania. Last year almost 50% of such investment in the country came from renewable energy projects. In addition, other projects will not be able to serve their debts to the banks, creating additional pressure for banks that are still struggling to find a solution for the non-performing loans granted during the real estate boom. Glodeanu said the ordinance violated two principles under the Energy Charter Treaty: fair and equal treatment of investors and discrimination. "We are expecting to see some international litigation against the abusive measurements taken under the ordinance and unfortunately such litigation would end up in 15

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

Romanian tax payers paying millions of euros for the mistakes of the Romanian authorities." Further complicating the issue is a report published by ANRE in March that recommended the reduction of the total number of green certificates for PV energy from six to three. Glodeanu said the government "should definitely take into consideration that ... a reduction to three green certificates makes PV projects unattractive and not bankable." The RPIA president added that if two out of three green certificates are suspended until March 2017, PV project development based on green certificates would essentially cease to exist.

4. INDUSTRIAL OUTPUT UP 4 PCT IN APRIL (GROSS SERIES) The industrial output rose 4 percent, 1.9 percent respectively, in April 2013 compared with the previous month, both as gross series and as adjusted series depending on the number of business days and seasonality, according to the National Institute of Statistics. The industrial output (gross series) was backed mainly by the growth recorded in the processing industry (+5.9 pct) and the mining industry (+4.9 pct). The production and supply of electricity, heat, natural gas, hot water and air conditioning declined 12.6 pct. By large industrial groups, major increases were recorded in most categories of goods, as following: intermediary goods industry (+7.2 pct), capital goods (+5.7 pct), durable goods (+5.1 pct), consumer goods (+4.0 pct). The energy industry dropped 7.5 pct. Industrial output, adjusted series depending on number of business days and seasonality, grew by 1.9 pct, mainly due to the increase in the mining industry (+10.6 pct) and the processing industry (+9.6 pct). The production and supply of electricity, heat, natural gas, hot water and air conditioning dropped 0.8 pct.

By large industrial groups, growth was recorded in the capital goods industry (+10.4 pct), consumer goods (+3.1 pct), intermediary goods (+2.7 pct) and the energy industry (+1.2 pct). Durables declined by 1.4 pct. Compared with April 2012, industrial output grew by 18.9 percent gross series, following the growth recorded in the processing industry (+21.9 pct) and the mining industry (+12.3 pct). By large industrial groups, there was recorded growth in the capital goods industry (+27.8 pct), durables (+25.1 pct), intermediary goods (+20.3 pct) and consumer goods (+16.4 pct). The energy industry dropped 4.8 pct. Industrial output, adjusted series depending on the number of business days and seasonality, grew 8.5 pct compared with the same month last year, following the positive results recorded in the processing industry (+15.6 pct) and the mining industry (11.1 pct). Industrial output increased 8.2 pct as gross series January through April this year, compared with the same interval last year, following growth recorded in the processing industry (+9.9 pct) and the mining industry (+7.3 pct). Production and supply of electricity, heat, natural gas, hot water and air conditioning dropped 4.8 pct. By large industrial groups, rises were recorded increases in most categories of goods, as following: 16

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

durables (+14.6 pct), capital goods (+13.1 pct), intermediary goods (+10.3 pct) and consumer goods (+5.5 pct). The energy industry dropped 5.7 pct. Industrial output as adjusted series depending on the number of business days and seasonality advanced 6.3 pct in January through April 2013 compared with the first four months of last year, helped by the processing industry (+8.4 percent) and the mining industry (+5.9 pct). Production and supply of electricity, heat, natural gas, hot water and air conditioning dropped 5.5 pct. By large industrial groups, rises were reported in durables (up 14.1 percent), capital goods (up13.4 pct), intermediary goods (+7.5 pct) and consumer goods (up 4.1 percent). The energy industry dropped 5.5 pct.

5. GERMAN GROUP DAIMLER TO INAUGURATE INVESTMENT PROIECT IN SEBES ON JULY 29 German multinational automotive corporation Daimler is going to inaugurate an investment project in Sebes (Alba County, central Romania) on July 29, Minister Delegate for Infrastructure Projects of National Interest and Foreign Investments, Dan Sova, who payed a visit to Germany on Monday and Tuesday, alongside Prime Minister Victor Ponta, made the announcement. Daimler plans to have 300 employees in the first stage of its investment, with the possibility to expand in the next two or three years. On Tuesday, during the second day of his visit to Germany, Victor Ponta went to Stuttgart, the capital of the German land Baden-Wurttemberg, to visit the Daimler headquarters and to meet Andreas Renschler, a member of the corporation's Board of Management. The Prime Minister met there with the Romanian workers from the Cugir factory who are currently getting trained by Daimler.

Daimler AG is going to invest more than 300 million euro in its Romanian branch, Star Transmission, following to produce gearboxes and transmission parts for Mercedes, according to a release of the Minister Delegate for Infrastructure Projects of a National Interest and Foreign Investments, Dan Sova, issued on May 28. Sova signed the investment agreement between the Romanian government and the legal representatives of the German auto concern Daimler. According to the abovementioned release, Dan Sova assured the German delegation of the fact that the Romanian government, together with the local authorities, will make all the necessary efforts to provide a good climate for the investment, so that the German company to enjoy the best conditions for developing its business. The German multinational automotive corporation in April this year announced it intended to build a factory in Romania, where to produce gearboxes for the Mercedes-Benz luxury brand. ‘We conceived the expansion of our production capacities in new locations where to assemble the gearboxes as being added to our already existing capacities. Our main objective is to cover the demand of our customers by proving an even higher flexibility', Andreas Renschler, a member in the Daimler Board of Management informed back then. 17

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

The German group decided to build a new production facility in Romania because expansion in Stuttgart is no longer possible. ‘Star Transmission has remained a trustful partner for our plants in Germany for more than ten years. Taking into account our excellent experience with Star Transmission we preferred to extend our production capacities there', the manager of the Mercedes plant in Unterturkheim, Peter Schabert, said. The Star Transmission branch was set up in 2001 currently having 800 employees. Daimler emphasized that the Romanian employees will enter first a special training programme for several months at the plant in Unterturkheim. Moreover, depending on the support to be obtained from the Romanian government, the Daimler group made known its intention to start production of a new automated transmission box in Sebes, beginning with 2016.

6. ROMANIA’S EXPORT GHROW 7.2 PERCENT AND IMPORTS 0.5 PERCENT IN FIRST FOUR MONTHS Romania's exports grew 7.2 percent in the first four months of 2013 and the imports advanced 0.5 percent, the National Institute for Statistics (INS) announced on Monday. According to the IND preliminary data, in April 2013, the FOB exports totalled over 17.942 billion lei (4.085 billion euro) and the CIF imports accounted for 20.557 billion lei (4.685 billion Euros). Compared with April 2012, the exports grew 15.9 percent, in lei-denominated values (15.5 percent in euro-denominated values), and imports advanced 5.3 percent, in lei-denominated values (5 percent in euro-denominated values).

Compared with March 2013, the exports of April 2013 increased 2.1 percent, in lei-denominated values (2 percent in euro-denominated values), and the imports enhanced 2.5 percent both in lei and euro- denominated values. The trade balance deficit (FOB/CIF) in April 2013 stood at 2.615 billion lei (599 million Euros), decreasing 1.423 billion lei (323.7 million Euros), from April 2012. The FOB exports conducted in the period January 1 - April 30, 2013, stood at 68.799 billion lei (15.665 billion Euros), and the CIF imports amounted to 76.117 billion lei (17.336 billion Euros). Compared with the period January 1 - April 30, 2012, the exports advanced 8.1 percent, in lei- denominated values (7.2 percent, in euro-denominated values) and imports grew 1.3 percent, in lei- denominated values (0.5 percent in euro-denominated values). The FOB-CIF trade deficit, in the period January 1 - April 30, 2013, stood at 7.318 billion lei (1.671 billion Euros), decreasing 4.201 billion lei (971.3 million Euros), form that registered in the period January 1 - April 30, 2012. The value of intra-community goods exchanges, in the period January 1 - April 30, 2013, exceeded 48.577 billion lei (11.080 billion Euros) in goods shipping, and the entries stood at 58.532 billion lei (13.351 billion Euros), representing 70.7 percent of the total exports and 77 percent of the total imports. The value of intra-community goods exchanges, in the period January 1 - April 30, 2013, totalled

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

20.222 billion lei (4.585 billion Euros) in exports and 17.584 billion lei (3.985 billion euros) in imports, representing 29.3 percent of the total exports and 23.0 percent of the total imports. Significant shares in the structure of exports and imports in the period January 1 - April 30, 2013, were held by the transport machinery and equipment (42.8 percent in exports and 34.8 percent in imports) and other manufactured products (34.0 percent in exports and 29.9 percent in imports).

7. ROMANIAN AGRICULTURE WILL RECEIVE BLN 10.6 EUROS OVER NEXT SEVEN YEARS The European Union will secure Romania's agriculture a financial support worth 10.6 billion Euros, during 2014-2020, Agriculture Minister Daniel Constantin said in Iasi (east), on Thursday June 6. According to him the annual amount will go up from 1.3 billion Euros in 2014 to 1.8 billion Euros in 2020. The Common Agriculture Policy (CAP) reform is in progress, and we are given a financial framework which seems generous, at first glance, but it is not as generous as we'd like it to be. The total amount is worth 10.6 billion Euros, over 2014-2020' Minister Constantin said. Minister Constantin stressed that the Romanian authorities persuade the European Union to agree on a budget-funded support amounting to rd. 350 million Euros. The current policy proposition no longer stipulates Romania to be given an additional aid worth million Euros per surface. We have 1.3 billion Euros. 'The proposition for the current agricultural policy no longer stipulates an extra support per surface. We used to have 1.3 billion Euros, which we divide by 1.9 million ha. Unfortunately, remain we at this package, we risk the aid per surface to be lower in 2013,' Minister Constantin said.

Agriculture Minister opines that the subsidy given to the Romanian farmers will amount to 196 Euros per ha, in 2020. ROMANIA IS EXPECTED TO RETURN TO AGRICULTURAL PRODUCTION CLOSE TO PAST 5-YEAR AVERAGE , IN 2013 Romania's farming production will go closer to the average figures of the past five years, even if due to bad weather conditions it scored only 5.8 percent of the GDP, in 2013, i.e lower than that of 2011, when it stood for 7 percent of the GDP, Agriculture Minister Daniel Constantin said. 'The agricultural production reached 30 billion lei, namely about 7 percent of the GDP, in 2011, but it dropped to 5.8 percent of the GDP, in 2012, due to bad weather. But it is expected to return to the production closer to that of the past 5 years, in 2013,' Minister of Agriculture and Rural Development Daniel Constantin said on Wednesday, in the end of the consultations with the academic environment on the main guidelines of the long-term development of the Romanian agriculture. As for the farming products trade, Minister Constantin emphasized that although Romania still registers a deficit, things have improved during the latest years and figures say that Romania's negative commercial balance, amounting to two billion euros in 2008, went down to 1.5 billion euros in 2009 and to 0.729 billion euros in 2010, and to 0.375 billion euros in 2011, and it stood at 0.745 billion euros 19

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______in 2012. There are sectors that were witnessing important growth and succeeded in exports, and it is worth mentioning here the fowl breading whose exports exceeded imports in 2012, Minister Daniel Constantin said. According to the Ministry of Agriculture and Rural Development (MADR) data, Romania's commercial balance deficit posed for 745.45 million euros in 2012, namely almost twice higher than that of 2011 when it stood at 375.96 million euros.

8. ROMANIA HAS VERY BIG TRADE SURPLUS WITH UK AND RUSSIA – AN UNDISPUTABLE ADVANTAGE Economy Minister Varujan Vosganian on Friday, on the occasion of his attending an economy-related topic forum in Mamaia resort (Constanta County, south-eastern Romania), informed that Romania had a very big trade surplus with the UK and Russia, highlighting that our country might not have the competitive advantage on some products, but had a comparative advantage with certain countries. 'We may not have a competitive advantage on some products, but we can have a comparative advantage with certain countries. I shall give you two examples from different corners of the world, the United Kingdom and Russia. Romania has a very big trade surplus with both. With the UK, the surplus comes from the fact that the UK focused its efforts mainly on the financial area and has an extremely reduced industrial capacity. ... Romania's trade surplus with Russia, except for the energy products, stands at one billion dollars. Russia's exports to our country amount to approximately 400 million dollars, our exports to Russia account for 1.4 billion dollars. It is an undisputable advantage we must use,' Vosganian said.

According to him, by November 2013, Romania will have its own competitiveness strategy concerning the industry area, a strategy that needed to be completed before the European 2014-2020 programming period. 'We must outline for Romania what competitive advantage means and, as a corollary, what comparative advantage means. ... Therefore, defining the competitive advantage is fundamental, as based on it we must establish the funding, what industries to fund, what kind of labour force to qualify with European funds,' the Economy Minister pointed out.

9. FINMIN : ROMANIA’S ECONOMIC GROWTH OVER FULL 2013 TO STAND AT AROUND 2 PCT Romania's economic growth over full-2013 will stand somewhere at around 2 percent, given the agricultural production that looks set to be very good this year and the important factors having backed the 2.2 percent growth in the first quarter-year, Public Finances Minister Daniel Chitoiu said on Thursday. 'The exports and the industrial production were important factors for the 2.2 percent growth in the first 20

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

quarter-year. When we worked out the 2013 state budget taking into account the evaluation made by the IMF and the European Commission, we considered a pessimistic 1.6 percent growth, since we knew the European economy does not have a reasonable growth level, being below one percentage point and the Romanian economy is more than 70 percent dependent on the European economy. We had an excess export volume in the first quarter and this fact had a positive influence that makes the economic growth of Romania to stand somewhere at around two percentage points over the full-year, given that the agricultural production also looks set to be very good this year', Chitoiu stressed at a public television broadcast. He explained that the authorities, in drawing up such estimates, did not include the national leu currency's depreciation, since the budget was built on an exchange rate of 4.5 lei to the euro. 'We built the state budget on a 4.5 lei exchange rate and the exchange rate policy rests with the Central Bank. The Government cannot influence the rate of exchange and the rate of exchange does not influence the excise tax revenues, because the excise tax is paid at the exchange rate recorded on October 31 of the prior year, in line with the European directive taken up in the Romanian Fiscal Code', the minister underscored.

• Culture 1. INDIA’S ANAND GANDHI’S SHIP OF THESEUS WINS TRANSYLVANIA TROPHY AT TIFF Indian film 'Ship of Theseus' by Anand Gandhi is the big winner of the 12th edition of the Transylvania International Film Festival (TIFF).

Gandhi was presented the 15,000-euro Transylvania Trophy at the TIFF closing gala hosted by the National Theatre House of Cluj-Napoca. The film also won the award for best cinematography. The film is an exploration of identity, justice, sense and death issues by three main characters: a female photographer suffering from a botched surgery, an erudite monk struggling with a dilemma over when to choose between principles and death and a young stock trader facing a complicated situation. There were 12 productions by directors from Sweden, the US, Germany, Denmark, the Netherlands, Saudi Arabia, Uruguay, Poland, India, Slovakia and having competed in this year's edition of TIFF. The jury was made up of director Cristi Puiu; Frederic Boyer, artistic director of the Tribeca Festival (New York); director Gyorgy Palfi; producer Lynda Myles and actress Franziska Petri. The best director award went to Japan's Rikiya Imaizumi for his 2012 production 'Koppidoi neko' (I catch a terrible cat). The film 'Tanta agua' (So Mch Water) (2012 - Uruguay, Mexico, the Netherlands, Germany) directed by Ana Guevara and Leticia Jorge won the special jury award. Danish actor Michael Noer won the best performance award for his part in 'Northwest'. The award of the FIPRESCI International Federation of Film Critics went to the 2012 Peruvian production 'El limpiador'(The Cleaner) directed by Adrian Saba, while the audience award went to 21

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

Saudi Arabia - Germany film 'Wadjda,' directed by Haifaa Al-Mansour . At the TIFF Gala, four special awards were presented to personalities of the filmmaking industry: an excellence award went to Romanian actress Luminita Gheorghiu, while internationally acclaimed film directors Jiri Menzel of the Czech Republic and Stephen Frears of the UK as well as Romanian composer Adrian Enescu received lifetime achievement awards. The Romanian Days Award for Feature Film went to 'Aici... adica acolo' (Here ... I Mean There), directed by Laura Capatana Juller. The Romanian Days Award for Short Film was presented to Radu Jude for his 2013 production 'O umbr ă de nor' (Shadow of a Cloud). The Romanian Days Award for Best Debut went to Paul Negoescu's 2012 production 'O lun ă în Thailanda' (A Month in Thailand).

2. CULTURAL ROUTE: IN THE FOOTSTEPS OF THE HABSBURGS - TOURISM PROJECT IN NORTH-EASTERN ROMANIA Suceava Municipality and the Museum of Bucovina will join the cultural route project dubbed In the Footsteps of the Habsburgs, presented at the Bucovinan Dialogue Forum, mayor Ion Lungu said after the talks he and the Programme's representative Jean Klinkert held on the topic. Lungu said that together with the director of the Museum of Bucovina Emil Constantin Ursu, who came with the initiative, are to take steps that Suceava (north-east) should join the Project, soon. The cultural tourism project In the Footsteps of the Habsburgs was presented in Suceava at the Bucovinan Dialogue Forum started in 2011 by the Austrian representatives and includes cooperation between Suceava and Cernauti (Ukraine). During the Forum, the general manager for cultural programmes with Austria's Ministry of Foreign Affairs Martin Eichtinger spoke about the cultural tourism cooperation, and particularly about the European cultural tourism routes. He also introduced the In the Footsteps of the Habsburgs Programme's French official Jean Klinkert who presented the entire project to be developed in regions of four countries, namely France, Germany, Austria and Switzerland and which is an European tourism route capitalizing the 800-year history of the Habsburgs. Following the talks, the parties reached the conclusion that both Suceava and Cernauti could join the Programme, both being situated in areas with Habsburg inheritance.

2. LAUNCH OF WILD CARPATHIA EPSIODE 2: FROM THE MOUNTAINS TO THE SEA The second film in the Wild Carpathia series was launched on Wednesday, 5 June, at the prestigious British Academy of Film and Television (BAFTA) in Piccadilly, London. The premiere took place in the Presence of Their Royal Highnesses and Princess Margarita of Romania and Prince Radu, Madam Minister of SME’s and Tourism Maria Grapini, Mr Razvan Filipescu, President of the Tourism Authority. The event was co- hosted by The Travel Channel and The European Nature Trust (TENT).

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Arundel House, 4 Palace Green London W8 4QD UK Phone: 0044 (0)20 7937 9666 Fax: 0044 (0)20 7937 8069 e-mail: [email protected] web site: www.london.mae.ro

Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______

Paul Lister founder of TENT said ‘ the main objective in producing the series was to show and communicate to the viewer just how important, amazing, rich, threatened, fragile & unique rural Romania really is’ The event was attended by 220 guests and began with a performance by Grigore Lese. Among those present was four times olympic gold medallist Ivan Patzaichin, representatives from the Romanian embassy and Cultural institute, and invited VIP’s and journalists. Wild Carpathia part 2 to be produced by Almond Films will be broadcast in early September and is part of an important agreement between Travel Channel and the Tourism Authority which involves two episode of wild Carpathia as well as 24 vignettes about different aspects of Romanian tourism. Broadcast in over 120 countries and in 12 different languages on Travel Channel, Wild Carpathia I continues to be a huge success, receiving well over 200,000 hits on YouTube and substantial media coverage in Romania, UK and around the world. Following on from the airing of episode one in 2011, Travel Channel are working with Almond Productions to produce two 47 minute programmes (episodes two and three), along with 24 short promotional films. The series continues to delve into the unique landscape, meeting the local people and personalities who are working to preserve it and exploring the many diverse wonders of the region. Fronted by writer and presenter Charlie Ottley, the series will culminate in an interview with HRH The Prince of Wales, who has been involved in the campaign to preserve the Carpathian region. The two sequels will again be shown in over 120 countries and translated into 19 different languages as well as being aired on National Television in Romania. The collaboration will see a comprehensive promotional campaign including the 24 promotional films featuring stunning locations across the country plus an extensive advertising campaign using the Travel Channel's worldwide broadcast network. The eight three minute films and 16 one minute films will focus on a range of subjects; wildlife and nature, active and adventure, wellness and health, touring and countryside. Writer and environmentalist Charlie Ottley, who will present both new episodes said, “I am hugely grateful to the government for making this possible. It will give us a chance to

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Arundel House, 4 Palace Green London W8 4QD UK Phone: 0044 (0)20 7937 9666 Fax: 0044 (0)20 7937 8069 e-mail: [email protected] web site: www.london.mae.ro