1 1. President Basescu

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

No. 12/ 11th Year

15th - 30th June 2014

POLITIC

1. President Basescu: Signing agreement with EU, an important step in Moldova getting away from a grey area 2. PM Ponta: we have necessary gas reserves in short term 3. INTERVIEW PM Victor Ponta: We have learned enough to avoid losing the presidential election a third time 4. PM, ForMin condemn violent attack on young Romanian in France 5. Romania, Israel ForMins signed cooperation programme on culture, education, science 6. The Royal Family celebrates 150 years since the setting up of the Senate 7. Corlatean:the security paradigm in the Black Sea changed fundamentally, military presence is necessary on a long term 8. Where from the government will take the money for the CAS reduction for the last three months of 2014 9. Government decides to forfeit tax on agricultural income proportional to observed damages 10. Cristian Socol: Romania fully respects commitments until end of preventive agreement in 2015 11. Specialty committees of Parliament approve candidates for the future Board of Directors of the BNR 12. Mugur Isarescu approved by parliamentary committees for new tenure 13. Gov't adopts order modifying Romanian president election law 14. Government approves draft laws for ratification of EU-R. Moldova, Ukraine and Georgia Association Agreements 15. The works in Romania for the Iasi – Ungheni oilpipeline are finalised 16. Romania always reliable partner for neighbouring countries 17. SEECP officials discuss instruments, concepts aimed at upgrading consulate activity 18. State Secretary Aurescu opens SEECP conference on cyber-security 19. European directive on consumer rights comes into force 20. EurActiv: Romania to resend Dacian Ciolos as commissioner 21. PNL Congress 22. AOAR: The statements of Fule about the accession of Romania and Bulgaria to the EU, offensive and incorrect 23. The Ambassador of Romanian to the UK, Dr Ion Jinga, was awarded Freeman of the City of London

ECONOMIC

1. Analysis:Romania has the chance to become an emerging market over the next 12- 18 months 2. Statistics: Turnover of market services provided mainly to businesses dips 1.8 pct this April 3. Fondul Proprietatea wants to sell 5% of the Romgaz shares, package worth 155 million euro

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

4. Romania Hub, a programme to position Romania on the map of entrepreneurship in Europe as a country favourable to start-ups 5. SOCAR: We are still interested by Oltchim and we analyse the taking over of the unit 6. Moody's: Improved macro-economic balance supports Romania's credit profile 7. Guillermo Tolosa, IMF: As of next summer Romania will no longer need a new accord

SOCIAL

1. End-May Bucharest unemployment rate at 2.06 pct 2. Romanian medical assistant qualification recognized in EU after additional course 3. Romania, the biggest 'provider' of physicians for Germany 4. Digital illiteracy affecting 41 pct of Romanian workforce

CULTURE

1. Simona Halep to become ambassador of Romanian sport during first competition hiatus 2. National Art Museum receives TripAdvisor certificate of excellence 3. Farming, crafts, forestry, tourism seen as possible Rosia Montana development solutions 4. Festitalia in Bucharest

POLITICS

1. President Basescu: Signing agreement with EU, an important step in Moldova getting away from a grey area

The signing of an association agreement and a free trade agreement between the European Union and Moldova is a very important step forward toward Moldova's getting away from a grey area in which it finds itself, Romania's President Traian Basescu told Jurnal TV in an exclusive statement.

'Friday is the day for the official signing of an agreement under which Moldova clearly opts for a European path, bringing in its own values that became European values and itself adopting European values, acknowledged as thus, and the aspirations of Moldova's citizens: to benefit from prosperity projects, because what the European Union guarantees is freedom,' Basescu says in a message carried on Thursday on the Jurnal TV website.

Basescu also underscores that Moldova will not be welcomed in the European community unless the Moldovan authorities combat corruption in the judiciary.

'You will not be members of the European Union unless you put order in your judiciary. Politicians will not be able to refuse the citizens of Moldova the right to be members of the European Union one day only because they have some interests of their own. There will be public pressure as it was in Romania,' Basescu says in his message, adding that the society will be satisfied only when justice works.

2. PM Ponta: we have necessary gas reserves in short term

Prime Minister Victor Ponta has announced that he had a discussion with Energy Minister 2

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

Razvan Nicolescu, the conclusion being that, in the short term, Romania has the necessary gas reserves to keep 'any problems' at bay.

'We have the obligation to govern and you see that the situation in the region is deteriorating, gas [deliveries] are discontinued. This morning I talked to the energy minister and I want to give the signal that, for Romania, in a short term of 6 months, there is no problem. We have the necessary reserves. The most important thing for us is to have stability and predictability on the whole political stage and the main responsibility for stability rests with us. I want to ask all of you, in all structures that you represent, to give the same message, that it is a period in which Romania needs stability more than anything,' PM Ponta said amid Russia's decision on Monday to interrupt gas supplies to Ukraine, the country transited by a significant part of the Russian gas exports to the European Union.

3. INTERVIEW PM Victor Ponta: We have learned enough to avoid losing the presidential election a third time

Prime Minister Victor Ponta talks about the impact of reducing social security contributions [CAS] and the position of the political class regarding this measure, about increasing pensions and salaries in 2015, but also about the designation of the European Commissioner from Romania in an interview granted to AGERPRES. Furthermore, the interview approaches issues regarding the presidential campaign, the main candidates of the right-win in the competition for Cotroceni Palace, as well as negotiations with PP-DD.

AGERPRES: Mr. Prime Minister, at the end of last week, the visit of the International Monetary Fund - World Bank - European Commission joint delegation ended. The negotiations were tough, as the Finance Minister said. You announced that the main objective of the negotiations - reducing CAS - will be applied starting with October 1, through a draft law. How feasible is this measure and why was it necessary this year, why did you insist on its application?

Victor Ponta: Let me answer it in another way. The sooner the better, because practically this reduction in the taxation of the work force was the main request of the business environment. I believe that not only in the Social Liberal Union [USL] program, that we ran in the elections with, but also in the program of the opposition the reduction of CAS with 5 percent is present and it is rare that all the political parties have the same economic objective.

The reality is that you have two effects: Firstly, a reduction in illegal or barely legal labor contracts that exist in reality and employers, in order to not pay very high contributions, prefer to pay salaries under the table or pay minimum wage and pay the rest and not declare it, secondly, a lot of the companies that approached me and other ministers in this period want to draw up a medium and long-term business plan and they're saying yes, the 16 percent flat tax rate is good, yes, it's very good what you've done with energy prices, help us with the reduction in labor tax and then surely business plans for the future will include jobs.

So the main reason: as many jobs as possible because [we're alright on] the other data, and here I'll return to what I've discussed with the IMF and the European Commission, we have economic growth, we have low deficits, we have low inflation, we are on track with absolutely all the commitments of fiscal-budgetary policy and the main challenge for Romania is to create new jobs.

I have said it and I believe anybody in my position would say the same thing: Until we have the same number of employees and pensioners we cannot say that in 10 years or in 15 years Romania can develop. Whereas the CAS reduction is exactly in this sense. If it is sustainable. For this reason we did not go forth with it on July 1, because it would've meant a budgetary impact of over 2 billion [RON] that we could cover, but not with full certainty. From October 1, 3

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______categorically, the 850 million RON negative impact to the budget we already have from superior budget collections and from reducing some costs. In fact the buffer is larger than 850 million RON, but no Government and no good manager says: ok, I'll spend all my money at once, but practically, we also have a reserve for unforeseen situations. For 2014, the reason for which the IMF and the European Commission did not say they are against it is that we showed them that we have money for 2014, we are changing nothing in the targets we have set together.

For 2015, at the moment the 2015 budget is drawn up, categorically the negative impact must be compensated through superior income or reducing costs. So for 2014 things are clear and for 2015, the coalition that I'm running, and I think, I don't know, the opposition if they were at rule would say the same thing as we are -- namely that this reduction in CAS was a fundamental objective and it must have been done.

And I want to say one more thing. In the USL program two types of measures were presented: on one hand social reparation measures, especially of the PSD [Social Democratic Party], that envisaged giving back what was cut from pensions, from salaries, reducing the VAT for bread, giving back to soldiers, diplomats, aviators what was taken from them. On the other hand some liberal measures that belonged especially to the Liberal colleagues that participated in the program and who were: Mr. Tariceanu, Mr. Chitoiu, Mr. Rusanu, who said three things: firstly, maintaining the flat tax rate -- and it was maintained and still is, secondly tax exemptions for reinvested profits since July 1 -- this is also in force, and thirdly reducing CAS.

Practically, in November, we will present the main economic points of the program we ran with as accomplished, something that not only in Romania, but also in Europe, is pretty rare and it makes me very proud to be able to promise other things so long as what we promised in 2012 we have achieved. Honestly, I await eagerly to see the vote in Parliament, surely the Governing coalition will vote 'for', because we already consulted on the matter. I believe that the PNL [National Liberal Party] and PDL [Democratic Liberal Party] MPs will not ally themselves around a point of view that is hard to explain of ... I don't know, I think Mr. Predoiu or Mr. Iohannis said they oppose the CAS reduction, I believe that the PNL and PDL MPs, regardless of what their leaders say, will vote 'for', because ultimately it is in their governing plan, and President Basescu will promulgate the law. I admit, it is a sort of political chess, because so long as they have attempted a motion to censure the Government for not reducing CAS, and now when we have reduced it to say they are against it...

AGERPRES: Why do you think they are saying this, because it is a right-wing measure...?

Victor Ponta: I believe Mr. Iohannis, and Mr. Predoiu, are both people who lack political experience. And they've started off on this idea that they must oppose anything and did not pay attention at one point and were opposed to themselves. It is a matter of lack of experience, of, how to say this, political intelligence because the idea is not to always oppose, but when your adversaries propose a good thing support them. Whereas here they got carried away.

AGERPRES: They are saying it is an electoral measure that would be applied on the first day of the presidential election campaign.

Victor Ponta: Well they wanted to take down the Government for not applying it, that was the purpose of the motion of censure. You know how it is, if we didn't do it, they would say that they were right with the motion of censure, if we do it... Again I say, this is about two leaders who don't know much politics and don't know much economy, neither of them, neither Mr. Predoiu, nor Mr. Iohannis know the arguments that are the basis for taking economic measures -- what a negative budgetary impact means, what income means, additional costs, when they react that way, like two opposition journalists. But I'm convinced that the opposition MPs will vote for this

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

measure because it is a good measure for Romania. I want to say this for all people to understand because, practically, what a company saves for 20 employees through this measure...

AGERPRES: This is what I wanted to ask, to get a bit of background...

Victor Ponta: I'll say it so that everyone understands. For 20 employees, the money you save through reducing CAS, can pay for the salary of the 21st. So, practically, for every 20 employees you can hire another person with no additional cost. That isn't a small thing.

AGERPRES: It's evident that employers will make some economies.

Victor Ponta: Categorically yes.

AGERPRES: But do you believe these economies will be put forth for salaries?

Victor Ponta: Initially, probably no, because the employers have complained all this time of this financial burden and I think the first thing they'll do is surface what they were paying barely legal and will fill work cards with the full salary. Which is what I want, because people at first may not understand the advantage. But, in fact, what happens with those social security contribution? We're talking about pensions, healthcare, unemployment. And anybody can say: I have a lot of time until my pension, I'm healthy, I have a job. But anybody can happen to need any of these three fundamental social protection components and it's not a small thing to go then and look on your work card and see that you have a smaller salary than what you've earned. In the second stage, obviously that at the moment the employee is negotiating his salary with the employer, be it an individual salary or collective labor contracts, this measure is not a secret deal between the Government and the employer to reduce CAS, it's something public, and practically, each employee will know to say to his employer: I'm working hard, I'm doing my duty, you've earned 5 percent from the Government, it's normal that this would show and it is in fact shown in the increase in real income of the employer.

AGERPRES: I want to come back a bit to the sustainability of the measure, given that you've said that there will be no additional taxes or tariffs...

Victor Ponta: Yes, and there actually won't be, because as I've said in 2014 we have the necessary additional income and a reduction in costs that allows for this negative impact to not lead to new taxes and tariffs and not lead to an infringement of the deficit target we have set together with the European Commission. This was possible, I'll say it frankly: because firstly Romanians have worked more than last year, and as such, given that we have economic growth, we have additional income and because slowly, slower than I'd like to, but this can be felt, the effects of the reform of the Anti-Fraud Directorate of the ANAF [National Tax Administration Agency] and all the investigations, that were also covered in the press, made by prosecutors against those who were committing tax avoidance with the VAT, against those that were committing all sorts of crimes, started to be felt.

There is one more essential moment, from my point of view, when budget income will increase significantly: the entry into force of the Insolvency Code. It was marred by political decisions -- firstly, President Basescu refused to promulgate it, then I believe colleagues from PNL contested it at the Constitutional Court, but the Court rejected the complaint by 9 - 0 vote ... It was stalling. The moment we will have the New Insolvency Code and the moment many of those who up to now would declare insolvency so as to not pay taxes and tariffs to the state and not pay debts to

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______private beneficiaries, we will have another moment of important growth, firstly economical, because you're eliminating those that are affecting economic competitiveness, and secondly budgetary because one cannot run [from taxes] as they could up to now.

You would declare yourself insolvent and idly sit there without paying taxes or tariffs. So I believe that from this point of view the positive data gives us the right to believe that we can take this measure. That's why I saw a sort of frustration, why aren't the IMF and the European Commission reprimanding us. We're not being reprimanded because they saw the numbers and because they know that when we said we will have 1.6 economic growth we had 3.5, when we said we'll have a deficit of 3, we had 2.6... It's the first time when Romania runs better than they imagined two years in a row.

AGERPRES: Is the IMF agreement necessary for the application of these new measures, because it's a bit unclear. And what are the relations between us and the IMF at this moment?

Victor Ponta: The agreements with the three institutions, because the IMF is the most used, but from my point of view and in reality the agreement with the European Commission is the most important. So the agreements with the Commission, with the International Monetary Fund and the World Bank are operations. This means, to be more straightforward - that the European Commission is offering us that top up of 10 percent for European funds -- that is in fact the benefit of the agreement. The International Monetary Fund is putting at our disposal in any moment we may need a 2 billion dollar line of credit. We don't need it, but if, God forbid, some cataclysmic event happens, tomorrow we can access it, the World Bank has almost one billion in credits for Healthcare, for Education, they are there, we use them every day.

So the agreement is absolutely operational. Further on. This has been explained a little unfairly in Romania so that other may be blamed. It was not the IMF that cut pensions and salaries in 2010, it was the Romanian Government. Sure, the IMF said 'if this is the solution, go for it!'. Now it's the same, the IMF is not saying to reduce or not reduce social security contributions. They'll come and say 'at the end of the year we want to see if you're meeting the 2.2 percent deficit, if you've met those standards that all the EU countries have'.

That is why I'm saying that the IMF is not the main guardian, but the European Commission. Because we, next year, will conclude our agreement with the International Monetary Fund. Normally, Romania will not need a new agreement with the IMF because it is a much healthier economy than others in the area, but the standards and conditions of the European Commission will still be there. They will never disappear as long as we are members of the European Union and they are the same in all 28 countries. So it is them who will have a say in November, that is why I said 'come discuss the budget on 2015!'. The 2014 budget is clear, it's alright, it's fine. When we will meet and discuss the 2015 budget we will see if we can or cannot meet the targets.

From my point of view, we can meet them, but this is a moment, 2014, in which, after two years, you know how they say, after two years of being a good student and doing your homework, you've worked, now comes a moment in which you can take some measures that actually stimulate economic growth. I've discussed very clearly with them and I said: we are good on the numbers, we are not good on jobs in order to achieve that level that Romania absolutely needs. What will we do about jobs? I asked the entire private business environment and they all said 'there's one more thing, reduce labor taxation, reduce the CAS'. This will not work in a day or a week, these are not measures that garner results in a really short term, but I'm convinced that on the medium and long-term it is a very correct measure.

AGERPRES: Why did you prefer a bill instead of an Urgency Ordinance?

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

Victor Ponta: For two reasons. First and foremost, as we had no urgency for July 1, we considered this to be also a matter of political legitimacy. Otherwise, the context in Romania is such that whatever you undertake to do, you are told you should have done the opposite. If you turn to the left, it's why you didn't take the turn to the right, if you go to the right, it's why you didn't go to the left. We've seen it these days too, we were asked 'why don't you cut the social security contributions?' I choose to pass the law through Parliament and to the extent that it gets a quasi-unanimous vote -- because that's how I think it will be -- it will be hard to criticize something you voted for yourself. From the political viewpoint it's important that I, as a Government, show international partners that this measure enjoys the Parliament's political support. So there was no hurry. We can do it under perfectly legal conditions. And secondly, exactly for us to be able to highlight in a debate in Parliament the precise points that we have had in the USL program and which we accomplished. I tell you, few governments after 2004 can say 'yes, we promised items 1 to 5 and did all 5.' This is a political benefit I think we must use.

AGERPRES: Having in view the surprises you had before, do you believe the President will promulgate the law? Just remember the fuel excise duty. Such heated debate, so much passion...

Victor Ponta: Categorically, I think the President will sign this bill into law, or if he doesn't, he will have to explain why not, because he himself has spoken dozens of times about reducing labor taxation, and he even criticized the Government for not doing it. I think he is somehow in the situation of the PDL-PNL leaders who lambasted me for not reducing the CAS, and who now criticise me for reducing it. Beyond this sometimes sterile political discussion, the essence for the companies is that this is a good measure, a measure the business community has unanimously welcomed, and I am that Social Democrat of the 21th century who knows that jobs are being created only by the private sector, not by the State. The State helps through its policies, like reducing the CAS, but ultimately it's the private sector that creates jobs, and which then pays taxes wherewith I can keep schools, hospitals, army and roads up and running. As long as the unanimous message from private business milieu is acceptance of this measure, even commendation for it, political disputes are unessential.

AGERPRES: Do you also envisage other tax relief measures? There was talk at a certain moment about reducing the VAT on foods other than bread. Can this be done this year?

Victor Ponta: Implementing other such measures is definitely no longer possible this year. It would be unrealistic to say you can do them all at once. This is comparable with the situation of a man who comes home and says 'this year I'll buy a car and also change my furniture and go on holiday.' You cannot do all at once. So we took them one by one. This year is dedicated to reducing the CAS, for the next year we already have the fiscal and budgetary strategy planned, pegging the pensions by an average of 4.5 percent and a wage-rising pool we will distribute as we did in 2014, not very little to everybody -- a crumble of around 2-3 percent -- but rather targeted at certain categories that experience very large gaps. I don't think anyone in the public sector collects high wages, but we'll proceed as we did this year with resident doctors, with entry-level teachers, I'd say that there are certain priorities. My point is that we'd better make a targeted use of the money we have, instead of sharing it out in 2 percent portions for no one to feel any improvement...

AGERPRES: Are you referring to small incomes?

Victor Ponta: I am referring to small incomes too, but also to certain categories as resident doctors were. We haven't succeeded in bringing incomes of resident doctors to a level comparable to what physicians receive in the West, but before this, their incomes were truly a disgrace affecting them not only materially, but also sapping the respect for the extraordinary

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______profession they practice. The same with entry-level teachers. How do you persuade a young one to remain in education with this absolutely shameful salary? So the idea is how you solve -- to put it like that -- a material problem too, you cannot entirely fix it, but in the first place you give a certain message, that to the Romanian society, what these people are doing is important.

AGERPRES: Moving to a different thread, could we please clarify the situation of Minister- delegate for Budget Liviu Voinea, who, I gather, intends to switch to the National Bank of Romania?

Victor Ponta: The situation was very clear. Mr. Voinea himself has cleared his situation before my coming up with explanations. In the first place, alongside [Finance Minister] Ms. Petrescu, he has been a main negotiator in relation with the international institutions and the cut of the CAS had his full support, as a man who understands how the private sector works. Because it's been said that Voinea disagrees of the reduction. But he himself said he supports the measure, live, right at the television that claimed the opposite!

Secondly he didn't tender his resignation whatsoever, nor will he do it before we have a discussion about his successor, about how things will be handed over. And thirdly, yes, he was proposed for BNR deputy-governor, something he has wanted for a long time. As a matter of fact, he has always had a special relationship with governor Isarescu, and with the first deputy, Mr. Georgescu. These are the people whose advice I have always sought on everything that has to do with economic and fiscal policies. This is a five-year term in an extraordinary team and I cannot tell Liviu Voinea 'no, you don't go there.' He worked very hard during this period, he was a Secretary of State, he was Minister for the budget. I cannot tell him 'don't go'... This means a career peak for any finance professional. Parliament vote comes first and then we'll discuss how to do the transition. For the beginning, I must find another Budget Minister. I heard a rumor that I would take over that ministry myself. No, no, the budget needs someone stable and with specific knowledge to deal with, because you cannot play with the State budget, and from this point of view, things are... The more so as Secretary of State [Gheorghe] Gherghina, who has spent twenty years and something in the Ministry, is leaving too. In the end, he deserved a nomination for the BNR Board. But I shape the transition with the two with whom I have actually worked very well, even if they are not the most popular people in the Government. But I worked very well with them and they always helped me take the right decisions.

AGERPRES: Mr. Prime Minister, the Government needs to designate Romania's European Commissioner, you said you want us to keep the portfolio of Agriculture, but this seems quite difficult. What else could it be, if it's not Agriculture?

Victor Ponta: It's a bit weird situation, to say the least, and I don't want to get into polemic. But yes indeed, under both the EU Regulation and national law, the Commissioner is appointed by the Government, but I do not participate in negotiations, it's the President who participates, the one who goes to the European Council. It's as if I must buy a car I've never seen and have someone else negotiate for me, the more so as the one to negotiate is Mr. President Basescu, with whom, so to say, I don't have a very close institutional relationship, he did not ask me...

AGERPRES: There has already been a meeting in Brussels...

Victor Ponta: It has been and there will be another at the end of June. I generally find out what goes on there from the other Prime Ministers who are my colleagues and friends, and who share it with me. I don't find it out from the President.

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

AGERPRES: You didn't discuss at all after that informal meeting?

Victor Ponta: No, we did not. We had just one discussion, more than two months ago, I think, and yes we agreed from this point of view. I said, well, our main goal is to keep Agriculture, because it is an important portfolio, but we had no other discussion on what happens if we cannot get Agriculture, so that, what can I say, I can only hope that the President will negotiate well on behalf of Romania. It's a situation... I repeat, I may get input via informal channels from the other Prime Ministers, but for Romania this actually means a very low power of negotiation because everyone there knows very well that they negotiate with... they know perfectly well that they are negotiating with the wrong person, with the President, who cannot appoint the Commissioner.

AGERPRES: You know that the name of Romania's former chief negotiator with the European Union, Vasile Puscas, has been floated about [for this position]. How do you regard this nomination?

Victor Ponta: I have an excellent opinion about Vasile Puscas, I think he is one of the best prepared Romanians for such a position, but there hasn't been anything concrete. Puscas is very down-to-earth and he is not the type to say 'it doesn't matter what portfolio we get, just appoint me'. So the idea is for us to know what our portfolio is in the first place and then look for the matching professional profile, because the Commissioner proposed by Romania still needs to pass hearings in the European Parliament, and these are no easy thing at all. But, I say this again, most likely after [June] 27 I hope to hear from the other Prime Ministers what Romania will get. Which, frankly, isn't OK.

AGERPRES: This is a first, politically speaking. Four months before the campaign for the presidential election, the big contesters, from the Power and the Opposition alike, have not officially announced any candidate for the presidential election. How have thing got here, particularly since you said that things on the political stages will clarify after the European elections?

Victor Ponta: Things happened the way they did in a hard to anticipate manner, namely following the break-up of the Social Liberal Union [USL]. Probably I was more naïve than others. Until this March, the coalition I had been ruling and the party, the Social Democratic Party [PSD], were absolutely sure that we had a decision taken by the congress of the coalition to endorse Crin Antonescu for President. To be honest, I do not believe there was anyone able to defeat Crin Antonescu for the office of President this November, no matter how many candidates there could have been, because the USL candidate was the undisputable favorite to win. Then, two things happened. The first, anticipated by some, was the break-up of the USL, and the second one, which I believe was unanticipated by PSD and our allies the National Union for Romania's Progress [UNPR], the Conservative Party [PC] and the Hungarian Democratic Union of Romania [UDMR], was Mr. Antonescu's withdrawal from the political stages. I saw he already announced his withdrawal. The idea is that we should have a candidate to call our own that will almost surely make it to the presidential runoff. On the Right sides, there are, I do not know for sure, Mr. Iohannis, Mr. Predoiu, Mr. Mihai-Razvan Ungureanu, Mr. Cristian Diaconescu, very many candidates, so I believe that until November 2 the fight will be for who can reach the runoff against our candidate.

From this point of view, that is a good thing for us. Why? Because we can focus on what is most important, namely on governing. Had my colleagues and I stayed prisoners to the idea of electioneering, governing would have surely been relegated to a secondary place. This way, we can take care of governing and we will see after November 2 who our runoff challenger will be. Besides that, I believe that, as I see things now, the cart was put before the horses, in that there

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______are very many discussions about the challenger being x or y or z.

The thing is who can defeat Ponta and the Government. I am saying that mistakes were made -- and I have seen a very experienced man, Mr. Tiriac, who has no business with politics, but who placed things back on their right track by asking what the future president should do? He or she should be conversant with foreign policy, he or she should know what national security means, what the relations are between the judiciary, Parliament and the Government. He or she may also be able to speak foreign languages, know the European institutions. After drawing up a portrait you can say, here, this is how things are done in a private company, where you first say what the requirements are for a position and only then you call people for the interview. In our case, people have showed up for the interview but you realize that they are no good in foreign policy, national security, Romanian or European institutions. I believe this is where the big confusion emerges, because we have not defined the job descriptions, those vying for the position. Apropos of the discussion over Romania's future European commissioner, first of all, we have to know what portfolio we get and then to see whether the candidates know anything about that field. For instance, it would be ridiculous for me to run against European Agriculture Commissioner Ciolos.

The same is true about the President's office: you say that you want a president, which is very good, I think everybody wants a president; the question is whether or not you know what being the president is all about, whether or not you are ready, what is your own self-evaluation, and after that you ask the public about these fields, which, according to the Constitution, are in the President's job description. So things may get back to the right track before September. PSD and its allies will categorically start up and conduct a procedure to appoint their presidential candidate. Our candidate is already prepared.

AGERPRES: So far as we know, there is a short list inside PSD...

Victor Ponta: A very short one...

AGERPRES: Which you said you have shortened to the displeasure of some to leave only your name and the name of Bucharest Mayor Oprescu. And yet, Mr. Geoana is contradicting you when he says Sorin Oprescu is a non-solution and that he is ready to run. Do you think a new presidential bid of Mircea Geoana is viable?

Victor Ponta: I cannot say anything about that. Only the party can say something overall, because when it comes to running on behalf of PSD, PC and UNPR you must win the agreement of the three as well.

AGERPRES: I am not meaning the designation process only, but real chances if such appointment was done.

Victor Ponta: Let us wait for the designation of the candidate. I have very much appreciated Mr. Geoana having very clearly said that he will wholeheartedly endorse anyone but him if that person is the candidate. That is a normal thing because we endorsed him in 2009, no matter the wishes back then, and from this point of view we will be united. The others will categorically be disunited and then our message will have to be as clear as possible so that people may get it as a very clear matter that we make changes in the Government and Parliament as well as in the office of the President, as we replace a regime against which we have been fighting for ten years.

AGERPRES: Do you think we can expect surprise candidates? Some surprise announcements

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around the presidential campaign?

Victor Ponta: Honestly, I do not think so, because not anyone can run for President. There are some name recognition and political support requirements, and then the job description. There are some knowledge to be learned, some questions you cannot eschew: what is Romania's main foreign policy issue -- Moldova; have you been to Chisinau to meet the local leaders there, do you know how to be of assistance, what to do for them? You cannot eschew answering to these questions if you are to become Romania's President.

AGERPRES: Do you have a short list of Right endorsees that makes you uneasy in the presidential race?

Victor Ponta: All the competitors are strong. And I very clearly remember that our candidates lost both in 2004 and 2009, albeit by a whisker. I say once again that the idea is any Right endorsee making it to the presidential runoff is a strong candidate simply because he or she will try to get together the others. If we do not treat the matter very seriously, we may lose a third time. Yet, at the same time I think we have learned quite a lot from the past and we can avoid our mistakes.

AGERPRES: Mr. Iohannis and other Liberals are claiming that you are afraid of the Right getting united and you are trying to stymie the process by covertly supporting Mr. Tariceanu's Initiative Group for the Preservation of the Liberal Identity.

Victor Ponta: You have spoken well when saying Mr. Iohannis and the Liberals do, because there is no connection between them. I am more Liberal than other Liberals are.

AGERPRES: And other Liberals as well...

Victor Ponta: I am more Liberal than Mr. Iohannis even for the fact that in 2012, inside the USL of which Mr. Iohannis was a member, we were fighting against the party of Mr. Basescu, even for the fact that we implemented the measures proposed by the Liberals, exactly those Liberals that we see are now chased away from the party: Mr. Tariceanu, Mr. Chitoiu, Mr. Silaghi. So, we have done what we agreed upon with PNL and what won the votes of the PNL electorate, and did so with those people. What I said was in jest, because me being more Liberal than Mr. Iohannis is no reality. I am no more Liberal than Mr. Tariceanu, who 24 years ago founded the PNL, or more so than the others, so when I am mentioning the Liberals I mean those who truly took part in the establishment of the USL, contributed to the government programme, brought up some very good Liberal ideas, three of which we have already implemented.

The idea of a single party is the ideal of Traian Basescu going back to 2005. All those involved in politics back then remember very clearly that in 2005 Traian Basescu wanted a merger of PNL and the Democratic Liberal Party [PDL] to get a big party for the European People's Party [EPP]. You see, history is strange: what did not come to happen in 2005 is coming to happen in 2014, exactly the year when he leaves office. I believe trying in 2014 to do what Mr. Basescu failed to do in 2005 is a sign of political nearsightedness.

AGERPRES: A last question: What chances do you think the Dan Diaconescu - People's Party (PP-DD) are standing of joining the Government, given that your partners are opposing the demarche and negotiations have somehow stalled lately?

Victor Ponta: No, the idea of cooperating with PP-DD came from political reality. Because we

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______ran in 2012 in the local elections as USL we managed to change all counties, with the exception of the counties of Alba and Arad. If I am not so much mistaken, two years now, the PDL leadership only changed one agreement. Mr. Blaga outwitted the Liberals as he pulled them out of USL and came back in power. We were compelled, because there is not other political formation except for PP-DD in the county councils. I do not think there is any exception from building majorities with them. From that point of view, it was a negotiation forced upon by what happened between PNL and PDL.

And then, there is another thing: I want the incumbent government to represent as many Romanian citizens as possible. PP-DD won a significant electoral score in 2012, something above 10 per cent, and I, the Government, am obliged, whether or not I like the formal or informal leader of the party, to govern for the 10 per cent as well. That electorate is even more Left leaning than the PSD voters, because they have social problems, serious economic problems. If I can represent them, I will do it wholeheartedly.

4. PM, ForMin condemn violent attack on young Romanian in France

Prime Minister Victor Ponta says that harsh punishment is required for acts like the June 13 attack against a young Romanian, brutally beaten by several person in Pierrefitte-sur-Seine, north of Paris.

Ponta mentioned the discussion he had earlier in the day with his French counterpart, who confirmed the condemnation of such acts by top French officials.

The French embassy in Bucharest also highlighted on Tuesday the reaction of French President Francois Hollande and of Prime Minister Manuel Valls, who denounced the violence and asked the competent authorities to identify and indict the perpetrators.

The Romanian Minister of Foreign Affairs Titus Corlatean also voiced his outrage; he added that he was displeased by the fact that the Romanian embassy has been informed by media, not by French authorities about the attack on the young Romanian. The latter is in coma in a hospital in Paris, after 12 people beat him on suspicions of housebreaking, according to AFP.

France Presse also quoted the prosecutor in charge of the case, Sylvie Moisson, who asserted, 'It was a savage act, a mob justice act attributable to several individuals. The motive was personal revenge.'

5. Romania, Israel ForMins signed cooperation programme on culture, education, science

Romanian Foreign Affairs Minister Titus Corlatean during a visit he payed to Israel on Sunday met his Israeli counterpart Avigdor Lieberman, on which occasion they signed a programme on cultural, educational and scientific cooperation between the Government of Romania and the Government of the State of Israel for 2014-2017, the Romanian ministry said in a release.

The two top diplomats also signed a Cooperation Protocol between the foreign ministries of Romania and Israel, the release added.

Corlatean and Lieberman, during the talks, evoked the excellent phase in the bilateral political- diplomatic dialogue and reconfirmed the special tie established during 66 years of continuous bilateral relations as well as their two countries' determination to advance towards a strategic dimension of their cooperation.

The two ministers underscored the importance of holding the second common sitting of the Romanian and Israeli governments in Jerusalem on June 24 and spoke of the agreements to be

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signed by the ministries of Romania and Israel on that occasion and the significant number of projects envisaged by the two states for the next year.

Corlatean and Lieberman also assessed the measures discussed in the previous rounds of political consultations and agreed to step up the moves aimed to deepen the cooperation of their two ministries. They agreed to hold a round of bilateral consultations in the consular area.

They evoked the excellent cooperation on such areas as economy, investments, research and development, tourism, education and others, the ministry stressed.

The agenda of the talks also included issues relating the international files, with the two ministers swapping extensive views with emphasis on the phase in the Middle East Peace Process talks. Corlatean underscored the importance of continuing with the direct talks with a view to reaching a solution accepted by both sides - Israeli and Palestinian respectively.

The two ministers looked into the recent developments in the European Union's Eastern Neighbourhood, with special stress on the security developments in Ukraine and the Republic of Moldova's European route as well as the relation between the EU and Israel, the release said.

6. The Royal Family celebrates 150 years since the setting up of the Senate

The royal princess Margaret will deliver a speech during the Senate meeting which will celebrate 150 years since the setting up of the superior chamber of the parliament where she is representing King Mihai I. According to a press release of the Royal House the solemn meeting will be attended by HRH Radu and prince Nicolae.

At the same time, the heiress-presumptive Margareta and HRH Radu will offer a dinner in honour of the Senate at the Peles Castle. The event will bring together the leadership of the Senate.The students sponsored by the Tinere Talente programme of the Princess Margareta of Romania Foundation will deliver a classical music recital.

The heiress-presumptive Margareta is for the third time in the parliament: on 25 October 2011 she took part in the speech delivered by the king in front of the two chambers reunited of the parliament on the occasion of the age of 90 and on 1 April 2014 she represented the royal family at the solemn meeting of the two reunited chambers of the parliament on the occasion of 10 years since Romania’s accession to the NATO.

7. Corlatean: the security paradigm in the Black Sea changed fundamentally, military presence is necessary on a long term

The Ministry of Foreign Affairs, Titus Corlatean stated at Antena 3 in connection to the possibility of new military bases in Romania besides the one in Deveselu as military presence is necessary on a long term.

‘A long term military presence is necessary as the security paradigm in the Black Sea has changed a lot affecting us and we need to be sure on our feet. It is a long way to the budget of 4- 5% and we need to appeal to the allies who could help you when you need it’, Corlatean said.

He said that Romania is an ally who counts very much in the region. ‘There is no expectation of the US, there is support, very serious, for a stronger Romania (…) politically and economically, from the point of view of security, a stable Romania who counts very much as European and EuroAtlantic policy matters in this area, and it seems to be very complicated’ Corlatean said.

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8. Where from the government will take the money for the CAS reduction for the last three months of 2014

When referring to the reduction to social insurance contributions (CAS) by 5 percentage points, between October – December 2014, the minister for budget said that this measure has already budgetary cover. In the context, he showed that the government will initiate a draft law for the reduction of CAS by 5 percentage points for the period of October – December 2014, and give the parliament the possibility to decide if they reject or adopt the CAS reduction.

As financing sources for the reduction of CAS for the last three months of 2014, Liviu Voinea mentioned that:  The government bets on ‘economic growth beyond expectations’. ‘ If the necessary time passes and it will come into power on 1 October (the CAS reduction) there is financial resource, as the economic growth is beyond expectations, it was revised upwards’ considered the minister for budget.The economic growth, based on agricultural production especially,does not mean it turns into income for the budget, as Romania’s agriculture is weakly fiscalised, the international financial worry.  The government has the funds resulting from a blockage of 10% of the state expenditure, established at the beginning of the year and kept until the second amendment towards the end of the year. According to the law of public finances, year after year, 10% of the expenditure is blocked at the beginning of the year with the exception of salary expenditure, thus making sure that the budget is within the limits established in the budget law ‘ this blockage is a sure source of coverage’, Voinea said.

9. Government decides to forfeit tax on agricultural income proportional to observed damages

The Government has decided, through emergency ordinance, to forfeit tax on agricultural income proportional to the degree of damages observed for taxpayers that have had agricultural activity in 2013 and have suffered losses as a consequence of external factors.

According to the Cabinet, the normative act also regulates 'an exception regarding the obligation to designate a representative by taxpayers that have fiscal deadlines but do not have a fiscal domicile in Romania', but also the possibility to issue and transmit administrative fiscal papers in electronic format.

Furthermore, the ordinance establishes the possibility of taxpayers to send fiscal documents, requests or other procedural papers through modern means of communication, but also the possibility that the fiscal institution send, electronic format included, at the request of other public authorities, documents pertaining to the fiscal situation of a taxpayer.

'The claims set by other organs and sent to the ANAF [National Agency for Fiscal Administration] for recovery are to be included in the installment schedule', the quoted source mentions. As such all debts existent in the fiscal administration's database will be part of the installment schedule.

10. Cristian Socol: Romania fully respects commitments until end of preventive agreement in 2015

The finalization of the International Monetary Fund - World Bank - European Commission delegation's visit without the signing of an intent letter does not mean in any way that the agreement with international creditors is suspended, as some public voices suggest, said for Agerpres Cristian Socol, adviser to the Prime Minister. According to him, the evaluation in November will end with conditions agreed upon by both parties.

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'Romania respects/will respect all the conditions agreed upon with international creditors in what regards both macro-economic targets and structural reforms. The total commitment to respect the provisions of the stand-by agreement, but also the provisions set by the new macro-economic governance rules as set by the Fiscal Compact, Six Pack, European Semester, and others, can be seen in the absolute fulfillment of previously agreed targets. Romania has not/will not draw any money from international financial institutions during the preventive agreement for one simple reason - it does not need to', said Socol.

The Prime Minister's adviser has also stated that Romania shows a solid macro-economic perspective, with record economic growth, inflation and current account deficit at historical lows, dropping foreign debt and public debt far below the sustainability threshold. Socol considers that Romania at the moment fulfills 10 of the 11 criteria stated in the European Macro- economic Imbalances Procedure system - an early warning mechanism for macro-economic imbalances.

'Romania is strongly immunized to internal and external shocks - a 7 billion euro buffer in the treasury that can ensure over 4 months worth of the current funding need, National Bank of Romania's reserves exceed far beyond the comfort limit, whether we are calculating on the Greenspan Guidotti rule by relating them to short-term foreign debt (remaining maturity), by the degree of coverage of three-months worth of imports or if they cover at least a fifth of the money supply. Exports have a growth rhythm that exceeds that of short-term foreign debt. Romania is perceived as a solid economy (...)' said Cristian Socol.

The IMF and European Commission delegations visited Romania during June 2-12 for the third evaluation of the stand-by agreement and the first evaluation of the preventive agreement regarding the Romania's balance of payments with the European Commission.

11. Specialty committees of Parliament approve candidates for the future Board of Directors of the BNR

Gheorghe Gherghina, Virgil Stoenescu, Daniel Daianu, Agnes Nagy and Dinu Marin received the approval for becoming members in the future BNR (Romanian National Bank) Board of Directors from the joint specialty committees of the Deputies Chamber and the Senate.Thus, Gheorghe Gherghina obtained 36 votes in favour, Virgil Stonenescu - 35, Daniel Daianu - 34, Agnes Nagy - 33 and Dinu Marin - 28.

The BNR Board of Directors is made up of nine members who are appointed by the Romanian Parliament for a 5-year term in office. The President of the Board of Directors is the same with the governor of the National Bank.

The current mandate of the BNR Board of Directors expires on October 10, 2014.

12. Mugur Isarescu approved by parliamentary committees for new tenure

BNR (Romanian National Bank) governor Mugur Isarescu received the approval of the specialty committees of the Senate and Deputies Chamber for a new tenure, while Florin Georgescu got the approval for a new tenure as First Deputy Governor. They both achieved unanimity.

The current mandate of the BNR Board of Directors expires on October 10, 2014.

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13. Gov't adopts order modifying Romanian president election law

The Government has adopted an executive order on the modification and completion of Law no. 370/2004 on the election of the President of Romania, the Executive.

According to the act's explanatory note published on the Standing Electoral Authority website, the main changes to the law include the extension of a deadline for the Government to set the election day to 60 days ahead of the voting day from a previous 45 days.

The Authority explains that the deadline for filing the candidacies was also modified; it is now up to 45 days ahead of the polling day, so that such candidacies might be final on the day the pre-election campaign kicks off.

At this moment, the date of the start of the pre-election campaign is the same as the deadline for filing the candidacies, which means the date for the candidacies that remain final is six days from the date the electoral campaign kicks off.

Another major modification cited in the explanatory note is that the special polling stations are abandoned, since there is now the possibility for a voter to exercise their voting right in any polling station, should they travel away from their town of residence on the polls day.

The executive order also seeks to clarify the civil servants' having the possibility to be named chairpersons or deputy chairpersons of the electoral bureaus of the polling stations by introducing a clear text removing any interpretation of a possible incompatibility.

The new act plans to define the phrase 'parliamentary political parties or parliamentary political groupings' by stressing that ranking as a parliamentary party or parliamentary political grouping are the ones that pass the electoral threshold and are voted on by the voters at the polls.

14. Government approves draft laws for ratification of EU-R. Moldova, Ukraine and Georgia Association Agreements

The Government in the extraordinary meeting approved three draft laws for the ratification of the Association Agreements between the European Union and the European Atomic Energy Community and their member states, on one side, and the Republic of Moldova, Ukraine and Georgia, on the other side.

'We made a commitment: that immediately after the signing in Brussels of the Association Agreement between the European Union and the Republic of Moldova in the first place, but also Georgia and Ukraine, we shall be, I hope, the first country to ratify these agreements. I talked with Prime Minister Leanca, whom I congratulated and who told me that today, at 10,00, they had a Government meeting for their own procedure. Today [Saturday] I want to formally adopt the draft laws on the ratification of the Agreements (...) and this way Parliament next week, in extraordinary session, will be able to pass the two laws which are going to be promulgated. (...) I am very glad. I even think it is a truly historic moment this step which the Republic of Moldova, in particular, but also Ukraine and Georgia take towards the EU,' the Prime Minister said, in the beginning of the extraordinary Government meeting.

Ponta added that Romania had the obligation to do 'concrete things' for the Republic of Moldova.

'If, until now, we have done concrete things - and I believe many of you will go in September- October to inaugurate the kindergartens the Moldovan Government is building with the money we allotted. We have been supporting Prime Minister Leanca, the Foreign Minister, but also the others, with MEPs, we have obtained the visa lifting,' Ponta also said.

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15. The works in Romania for the Iasi – Ungheni oilpipeline are finalised

The works in Romania for the Iasi-Ungheni oil pipeline were finalised, including the subcrossing of the Prut river, the operating system being quickly taken over by the Transgaz, announced the minister for energy Razvan Nicolescu, in the meeting of the government. The legal framework which allows Transgaz to operate this pipeline was regulated by the government through emergency ordnance which completes the law of oil and gas.

At the end of the meeting, the government sent a press release in which they showed that, through the ordnance they approved, the legal framework was created for the interconnecting pipelines – the system of transport in Romania to be linked to the neighbouring countries - to become an integrated part of the national system for the transport of oil and natural gas.

Romania and the Republic of Moldova work for the construction of a gas pipeline between the two countries on the route Iasi and Ungheni, having as objective the interconnection of the transport system of natural gas.

16. Romania always reliable partner for neighbouring countries

Prime Minister Victor Ponta declared that Romania will keep being a reliable partner for all the countries in its region; he pointed out that the Ministry of Foreign Affairs has his full support to play an active role on behalf of the country in the mediation and identification of solutions for the most difficult problems in the area.

'Romania has been and will continue to be a reliable partner for all the countries in the region. We believe that the stability of cooperation helps everybody, and you can count on Romania being an active and objective player in the region; I also strongly believe that only share prosperity and dialogue can guarantee a better future to all of us,' Ponta said at the 3rd meeting of the foreign affairs ministers of the South-East European Cooperation Process (SEECP) countries.

He stressed that Romania will keep supporting the idea that joining the EU and NATO is the best option for all the countries in the region.

'I think Romania and Bulgaria, and other countries, too can be examples of success as EU and NATO member states; this provides security, rules, clear perspectives (...) we will do everything in our power to convince all the EU and NATO member countries that enlargement is the right decision,' said the prime minister.

He mentioned his full support for the Ministry of Foreign Affairs playing a very active role on behalf of Romania, in mediation and finding solutions to the region's most challenging problems.

'There is no situation without solutions; we believe that dialogue, goodwill, and shared interests can be the right solution to all problems, and I am sure that all of you, ministers or diplomatic representatives, will help us politicians to make the right decisions, and always find the dialogue and the good solutions, instead of fighting and looking for radical solutions,' Ponta added.

17. SEECP officials discuss instruments, concepts aimed at upgrading consulate activity

Officials of the Southeastern Europe Cooperation Process (SEECP) states gathered at the Romanian foreign ministry's headquarters to discuss the instruments and concepts aimed at upgrading the activity of the consulates, a release said.

According to the ministry, the debates focused on pinpointing the best solutions to adjust the capabilities of the foreign consular networks to the current dimensions and dynamic of the

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: london.mae.ro

Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______requests for consular assistance services, amid the extension of the right to free movement and an increase in the mobility of the persons applying for specific services.

'The Romanian foreign ministry representatives unveiled the projects having been recently finalized or still undergoing implementation in the institution, that aim to modernize and streamline the consular activity: the eVisa system (for filing the visa applications via an electronic portal), the Contact and Support Center for the Romanians from abroad (a call center for answering and managing the phone calls and the electronic correspondence aimed at requests for consular information), eCons (meant to turn all the consular procedures computer-assisted), the programmes for the constant training of the consulate's staff', the release explained.

Attending the meeting were officials of the Romanian foreign ministry's Consular Department and delegations of the SEECP states made up of the officials of the consular departments of the relevant states' foreign ministries as well as diplomats having consular tasks at the embassies of the SEECP states in Bucharest.

18. State Secretary Aurescu opens SEECP conference on cyber-security

Foreign Affairs Ministry (MAE) State Secretary Bogdan Aurescu stressed the need of collective response to global threats to cyber-security; speaking at the Regional Conference of the South- East European Cooperation Process (SEECP), he underlined the necessity of enhancing collaboration to ensure the convergence of national strategies to this effect, alongside the guidelines of the major international organizations concerned by these matters - the Organization for Security and Co-operation in Europe (OSCE), NATO, the European Union, and the United Nations.

According to a release of MAE to AGERPRES, Aurescu reviewed in his speech the main goals of the conference, Romania's contribution to the international efforts towards guaranteeing cyber-security, and the dimensions of international collaboration in this field.

The state secretary also highlighted Romania's role in cyber-security, both through its involvement as EU and NATO member state and as a regional actor and supporter of international efforts in the region; he provided the example of the Cyber-crime Programme Office of the Council of Europe recently opened in Bucharest.

The Romanian official also pointed out the importance of simultaneously approaching three dimensions in formulating an efficient response to global cyber-crime, namely the need for new international agreements or mechanism for exchanging data on cyber-crime, the role of the academic world in the development of a cyber-security culture, and the involvement of the private sector.

The goal of the Conference organized under the current Romanian presidency of SEECP was to consolidate the cooperation in the field of cyber-security, one of the most important challenges for the region in the present context. Besides the SEECP member states, the Conference gathered representatives of the Council of Europe, of OSCE, of the Southeast European Law Enforcement Center (SELEC), of the United States, and of national institutions with competencies in this field such as Romanian Intelligence Service's (SRI) National Cyberint Centre, the Ministry of Justice, the Ministry of Internal Affairs, the Directorate for Investigating Organized Crime and Terrorism (DIICOT), and the Ministry of National Defence.

The conclusions of the conference hosted by Romania highlighted a better awareness of threats in the field of cyber security and the identification and formulation of adequate responses on national and regional level. The conference also created the opportunity for open dialogue on the best practices and the experience of the relevant national organizations of the SEECP countries.

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The result was the outline of a perspective for the development of a regional mechanism for the exchange of relevant data on cyber-attacks.

19. European directive on consumer rights comes into force

The Directive on Consumer Rights has come into force on 16th June in Romania, the pieces of national legislation transposing the directive will be applicable.

Among the main provisions of the new directive are eliminating hidden fees and costs for Internet services, increasing price transparency, forbidding predefined options on websites and setting in place a 14-day deadline for withdrawal from sales contracts.

The directive also establishes consolidated consumer rights in relation to the refund of bought items, introduces a model for EU form for the exercise of the right to withdrawal, eliminates surcharges on the use of credit cards and direct assistance lines, provides clearer information about the responsibility got the payments of product return, better protection of costumers in relation to digital products, as well as common rules for enterprises facilitating their commercial exchanges all around Europe.

'Getting the Romanian legislation in line with European legislation is a permanent concern of the Consumer Protection National Agency (ANPC). The observance of the fundamental consumer rights in Romania and elsewhere in the European space is our main aim and that is why we deploy all efforts to achieve it. I want to assure consumers that ANPC is taking all the steps for the relevant national legislation and permanent update to European rules and the market trends. Translating the directive on consumer rights into the contracts concluded with professionals is a success that comes to the aid of consumers,' ANPC Chairman Marius Alexandru Dunca told Agerpres.

20. EurActiv: Romania to resend Dacian Ciolos as commissioner

Both the centre-right Romanian President Traian Basescu and the Socialist Prime Minister Victor Ponta announced their official support for Dacian Ciolos, the present EU Commissioner for Agriculture, to run for a second term, hopefully with the same portfolio. Officials told EurActiv Romania that this target could be achieved unless a political decision is taken at EU level, similar to the one taken in 2009, that the EU Commissioners should change their portfolios in the case of taking a second mandate. According to government sources, Romania has no "plan B" for the moment, in case the Ciolos option failed. Speaking to the press, Ponta mentioned that the Justice portfolio was also an option for the Romanian commissioner. However, insiders said that given the fact that Romania is still under the Cooperation and Verification Mechanism (CVM) monitoring its deficient justice system, this option was out of the question (see background). "The EU Commissioner for Justice is also coordinating the CVM, so it could raise suspicions of not being impartial in this respect." Bulgaria is in the same situation, sources explained. Ciolos, 44, is considered EPP-affiliated, because he became Commissioner following the proposal of the centre-right government of Emil Boc. At that time, the proposal was criticised by the opposition socialists. However, during the last two years, Ciolos has reportedly been on excellent terms with the present Ponta government. Valentin Naumescu, doctor in political science and University teacher, said that there was a small chance that Romania could get a portfolio of the same importance as Agriculture. Still, he said the chance to obtain if national political leaders made their efforts in this direction. 19

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"The President Traian Basescu should get support from the EPP group, which most probably will get, and the Prime Minister should promote the idea within the S&D Group," said Naumescu, who is a former secretary of state in the Ministry of Foreign Affairs and ex-Consul of Romania in Toronto. He added that if Romania loses Agriculture, the alternative would be, without any doubt, a less significant portfolio. Romanian sources from the European Parliament told EurActiv that if Romania doesn’t get the agriculture portfolio, or another one of equal or greater importance, an option to be seriously considered was to send as commissioner a more junior politician.

21. PNL Congress

Newly-elected National Liberal Party (PNL) Chairman Klaus Iohannis on Saturday thanked Liberals for the vote and invited those who left the party to return.

'It is an overwhelming vote. This result is very touching to me. I dared to ask for your vote, I presented a motion that I believe can be beneficial to PNL, but this massive vote is very beautiful. Thank you very much!' Iohannis said, after being elected PNL Chairman in the Ordinary Congress of the party.

In this context, he invited those who left PNL to return to the party.

'We are a big party, but a party can never be too big and should never waste its resources, I am talking about the human resources of a party. That is why, please allow me today, from this stand, to invite back to the party those who, for various reasons, on a temporary basis, believed it was better for them to be outside the party,' Iohannis said.

PNL fusion with PDL, approved; new group to be called PNL

National Liberal Party (PNL) Chairman Klaus Iohannis on Saturday said that the Democratic Liberal Party (PDL) accepted that the party that would result following the fusion between the two groups be called the National Liberal Party (PNL) and the PNL Congress approved their fusion. 'I personally am in favour of the fusion. I am in the position to confirm that PDL accepts that the new group be called PNL,' Iohannis said at the PNL Congress.

The delegates to the Congress voted by wide majority the fusion of PNL with PDL. There were 6 votes against and 4 abstentions.

Predoiu, on new PNL name: I announce Iohannis he has not my mandate in this matter

Democratic Liberal Party (PDL) First Deputy Chairman Catalin Predoiu maintains that Liberal Chairman Klaus Iohannis was not mandated to inform the National Liberal Party (PNL) Congress that the new party resulting following the fusion would be called PNL.

'Mr Iohannis announced he was mandated to inform the PNL Congress that the newly formed party following the fusion with PDL would be called ... PNL. I want to announce Mr Iohannis that I do not know what mandate he has, but he certainly hasn't got mine,' Predoiu says in a Facebook post.

He underscores this thing should have been negotiated at the right time in the PDL-PNL negotiation committee and criticises the announcement Iohannis made.

'This manner of speaking is unfair. It was established that any matter would be discussed and negotiated formally in the committee. It is not fair to learn from the television things that are 20

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intended to be imposed on us. I regret and disavow this manner reflecting lack of respect for partners. As Vasile Blaga said, 'we shall not offer PDL on a plate,' Predoiu also said.

PNL affiliation to EPP, approved in Party's Ordinary Congress

The National Liberal Party (PNL) Ordinary Congress voted by wide majority the affiliation of PNL to the European People's Party (EPP).

Most delegates to the Congress voted for this resolution proposed by PNL Chairman Klaus Iohannis, with only 3 Liberals having voted against.

22. AOAR: The statements of Fule about the accession of Romania and Bulgaria to the EU, offensive and incorrect

The Association of Business People (AOAR) appreciates as offensive and incorrect the statements of the European commissionaire for extension Stefan Fule about the accession of Romania and Bulgaria to the EU, stating on Thursday that the accession of the two states placed doubt on the credibility of the extension process. Fule said on Thursday, in an interview offered to Euractiv Cehia that the member states as well as the candidate ones have become dissatisfied by the slow rhythm of the accession process.

The Association of Business People of Romania (AOAR) appreciates that with these statements there was a breach of the obligation of equidistance imposed through the statute of any European high official, empowered to contribute through his actions to the strengthening of cohesion between the EU member states and no to launch unjustified incorrect and nonfundamented political issues which lead to the increase of the feeling of lack of cohesion at the level of the EU.

The representatives of AOAR consider that Fule made these statements to support, in perspective, the chances to keep his portfolio of commissionaire for EU extension in the structure of the future European Commission, and the official proved an unfavourable approach to the consolidation of the EU in a period of economic difficulties.

23. The Ambassador of Romanian to the UK, Dr Ion Jinga, was awarded Freeman of the City of London

On 13 June, the Ambassador of Romanian to the Court of St James’s, Dr Ion Jinga, was awarded Freeman of the City of London, the Romanian Embassy informs. The event took place in the Chamberlain’s Court Room at the Guildhall, the historical administrative headquarters of London's financial district.

The ambassador of Romania was nominated by Dr John Smail, Alderman and Master of the Guild of Freemen of the City of London, and by Alderman Anne Holden, Past Master of the Guild. He joins a prestigious list of Freemen which includes, among others, royals, political and religious personalities, famous artists, writers, musicians, outstanding business people and a few foreign ambassadors.

Receiving the certificate, Dr Jinga said: “It is a huge privilege to serve as Ambassador of Romania to the Court of St James’s. I see this Freedom as a symbol of the excellent bilateral relations between Romania and Great Britain under the aegis of our Strategic Partnership, and as recognition of the loyal commitment I made six years ago to ever closer ties between our two countries. “

The award ceremony was conducted by Mr Paul Double, Remembrancer of the City of London. Among the ambassador’s guests were Sir Gavyn Arthur, the 675th Lord Mayor of the City of

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London, Alderman Nick Anstee, the 682nd Lord Mayor of the City, Baroness Gloria Hooper, Baroness Emma Nicholson, Lord Quentin Davies, Lord Peter Bowness, Lord Alfred Dubs, Lord Alan Watson, Sir George Iacobescu, Chairman of Canary Wharf, Radu Podgorean, Deputy Foreign Minister of Romania, John Bennett, Chief Commoner al City of London, Dr John Smail, Master of the Guild of Freemen of the City of London, Alderman Anne Holden, Past Master of the Guild, Dr Jonathan Eyal, Director at the Royal United Services Institute, Andrew Popper, Honorary Chief of HM King Michael's House, Nicolae Raţiu, Chairman of the Raţiu Family Foundation, soprano Nelly Miricioiu-Kirk, writer Mike Phillips, diplomats, journalists, barristers, representatives of the business community in the City of London and members of the Romanian community in London.

ECONOMICS

1. Analysis: Romania has the chance to become an emerging market over the next 12- 18 months

The representatives of the industry of funds administration segment of the economy which last year recorded the fastest increase since the beginning of the economic crisis, considered that Romania has big chances to go from the statute of border market to that of emerging market in the next 12- 18 months. According to International Financial Corporation, member of World Bank Group, emerging market is ‘the market which grows in dimension and variety, in contrast to a relatively small market, inactive and which has little sign of change’.

There are several indicators in favour of getting this statute, of emerging market, to happen before 2016:  In May, the rating company Standard&Poor’s improved the country rating of Romania.’ We think that Romania will keep its growth rhythm, around 3% between 2014 – 2017’ the S&P analysts say.

 Romania has a budgetary deficit under the EU standard of 3%  Romania has one of the most reduced debt degrees in the EU – approximately 40% Dragos Neacsu, member of the Association of the Funds Administrators (AAF) association which reunites 28 members, with total assets of 5.5 billion euro, stated at the round table Challenging Crossroads, of 13 June that the Romanian economy needs ‘public policies with immediate effects’. ‘This is the moment to act’ was the message of the AAF chairman for the representatives of the business environment and the political decision-makers present at the round table organised by AAF.

‘Together with private pensions, we represent over 10% of the public debts of Romania. Not by chance, the share owned by the local companies in stock exchange capitalisation in Romania is about the same significant threshold, of 10% with a clear tendency of growth in the years to come. We will be one of the sustainable financial pillars, on medium and long term, of real economy and public policies obtained by allocations from the state budget’ Dragos Neacsu said.

The round table Challenging Crossroads is the first initiative of AAF to start a dialogue between the top representatives of the business environment in Romania and the political decision- makers. The strategic directions for action of AAF are the institutional construction of modern European Romania and the Romanians’ financial education. The assets managed by the AAF members and the pensions funds administered privately have over 9.2 billion euro, plus the over 3 billion euro of the Proprietatea Fund. The cumulated value of those investments is 10% of the GDP of Romania.

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At the first session of the Romanian Roundtable Challenging Crossroads were presented: Misu Negritoiu - chairman ASF, Stefan Nanu – general manager of State Treasury Ludwik Sobolewski - CEO BVB, Mihai Marcu – Board chairman Medlife, Mihai Ionescu – head of Bucharest office Deutsche Bank in Romania, Horia Braun-Erdei – general manager and investment manager ING Investment Management Romania, Radu Craciun – head economist BCR. The market of pensions funds administered privately, the only financial segment who recorded growth during the crisis period, was represented by Crinu Andanut, CEO Allianz-Tiriac Pensii Private and vicechairman of Asociatia pentru Pensii Administrate Privat of Romania.

AAF had the initiative to place on the public agenda the statute of emerging market for Romania starting from the main priorities: active participation to the creation and implementation of public policies with immediate and sustainable effects in the Romanian economy and the contribution to the creation of domestic entrepreneurial culture.

2. Statistics: Turnover of market services provided mainly to businesses dips 1.8 pct this April

The turnover of market services provided mainly to businesses, expressed as raw series, dipped 1.8 pct in April 2014 compared to the previous month, shows data released by the National Statistics Institute (INS).

This downward trend is the effect of the setback registered in communications (- 3.4 pct), other services provided mainly to businesses (-2.2 pct), transport activities (-1.1 pct) and the computing and information technology services (- 0.7 pct). On the other hand, film, video and television program production activities, program broadcasting and transmission activities increased by 0.9 pct.

Expressed as seasonally and working-day adjusted series, the turnover of market services provided mainly to enterprises increased 2.2 pct overall this April compared with the previous month, due to a rise in film, video and television program production activities, program broadcasting and transmission (+2.7 pct), other services provided to enterprises (+1.3 pct) and computing and information technology services (+ 0.6 pct). A decrease was registered in transport activities (-2.2 pct) and communications (-1.1 pct).

According to INS, on a y-o-y basis, the turnover of market services provided mainly to businesses expressed as raw series was 2.8 pct higher overall in April 2014, due to growth in film, video and television program production, program broadcasting and transmission activities (+19.2 pct), computing and information technology services (+15.5 pct), communications (+6.5 pct) and other services provided to businesses (+3.3 pct). Transports saw a 2.7 pct drop in turnover y-o-y.

Expressed as seasonally and working-day adjusted series, the turnover of market services provided mainly to businesses saw a 5.5 pct increase y-o-y due to growth in film, video and television program production activities, program broadcasting and transmission activities (+18.4 pct), computing and information technology services (+14.3 pct), communications (+5.6 pct), other services provided mainly to businesses (+ 3.1 pct) and transport (+ 0.8 pct).

According to INS data, in the period January 1 - April 30, 2014 compared to the same period of the year before, the turnover of market services provided to businesses increased 4.6 percent overall as raw series, mainly due to growth in computing and information technology services (+18.3 pct), film, video and television program production activities, program broadcasting and transmission activities (+15.8 pct), communications (+5.9 pct), transport (+5.0 pct) and other services provided mainly to businesses (+0.8 pct).

Expressed as seasonally and working-day adjusted series, between January - April 2014, the

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Embassy of Romania in the United Kingdom of Great Britain and Northern Ireland ______turnover of market services provided mainly to businesses increased 4.9 percent overall compared to the same period of 2013 mainly due to growth in computing and information technology services (+ 14.9 pct), film, video and television program production activities, program broadcasting and transmission (+14.5 pct), transport (+6.3 pct), communications (+4.9 pct) and other services provided mainly to businesses (+1.3pct).

3. Fondul Proprietatea wants to sell 5% of the Romgaz shares, package worth 155 million euro

Fondul Proprietatea (FP) wants to sell, in a private accelerated placement, a package representing 4.99% of the Romgaz Medias shares (SNG) evaluated at 685 million lei (155.7 million euro) depending on the most recent quotation from the stock exchange.

The shares will be sold in a private accelerated placement destined to qualified investors and other investors, without exceeding 150 natural persons or judicial persons per member state, according to a press release published by FP. The placement will start immediately.

FP owns 14.99% of the Romgaz shares, and supposing that the available shares in the trading will be sold total, the fund will own later on 10.01% of the company.The price of Romgaz shares dropped on Monday on the BVB by 0.43% at 35.6 lei. At this price, the market capitalisation is 13.72 billion lei (3.11 billion euro).

Goldman Sachs International will act as bookrunner of the trading, and Erste Group Bank AG will act as joint lead manager.The Romgaz company is controlled by the state through the ministry of economy which owns 70% of the bonds. A package of 15% represents free float of the company

4. Romania Hub, a programme to position Romania on the map of entrepreneurship in Europe as a country favourable to start-ups

The programme Romania Hub is a concept through which we propose to bring independent entrepreneurial initiatives in Romania and to promote them jointly, so that we position Romania on the map of entrepreneurs in Europe as a country favourable to start-ups, said the minister delegated for SMEs, business environment and tourism (DIMMAT), Florin Jianu, at the launch of the programme.

Romania Hub is an initiative of DIMMMAT which has as objective the creation of a joint platform dedicated to the entrepreneurship which should reunite under the same umbrella governmental actors, non-governmental, as well as education institutions and companies. In this programme there will be organised workshops for young people who want to become entrepreneurs, as well as meetings between the business environment and representatives of public institutions.

At the same time, in this initiative there will be signed partnerships with governmental entities and non-governmental on the basis of which the interested people will get counselling. ‘This concept, Romania Hub reaches three aspects: we position Romania as favourable nation for start- ups, we make the basis for partnerships and we support the business environment by all these protocols we have and our actions will be directed so that we become a true ministry for the business environment, for entrepreneurship. The actions which take place under this concept, Romania Hub will be on a calendar placed on the site of the department’ minister Jianu said.

The activities will take place both in Bucharest and in the eight headquarters of Romania HUB for 12 months. ‘As you know, Romania does not have good performance as competitiveness and through this programme we can contribute to the increase of competitiveness, to create regional

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clusters, we propose to create incubators and business accelerators, even of the academic ones through partnership with the ministry of education. Besides the initiatives we have, we will support those of creating new companies, of creating new work places’ Florin Jianu said.

At present, one of the main issues our institutions have is the presentation of the national and European programmes among young people. For the next period, the drop in unemployment down to 20% is expected.

5. SOCAR: We are still interested by Oltchim and we analyse the taking over of the unit

The Azher oil state company SOCAR is still interested by the taking over of the unit Oltchim Ramnicu Valcea and analyses this opportunity, stated on Monday Hamza Karimov, the head of SOCAR Romania, during the Regional Energy Forum FOREN 2014. ‘We watch Oltchim with interest, which is an important project for the Romanian state. SOCAR continues to analyse this opportunity, but there is no concrete opinion in this sense. We have sent the technical data about Oltchim to the parent company which is going to analyse the opportunity and take a final decision’ the representative of the Azher company said.

‘We have another similar unit in Turkey, Petchim and we planned investments of 6-7 billion euro in a refinery in Turkey, on the same kind of products.The advantage of Oltchim is that it can produce at lower costs’Karimov said.The deadline for the bids to the investors interested to buy Oltchim was 6 June 2014 but no investor showed their interest.

The government will not close down Oltchim, and if no investor presents his interest for the unit by 6 June, the process of privatisation will be prolonged, stated, at the beginning of June, Constantin Nita, the minister of economy.

‘I have a very clear message. The government will never close down Oltchim. It is a viable company, which has market and which needs restructuring, which is possible’ Nita said. He mentioned that the executive has plan B in case no investor shows its interest for the acquisition of the unit.

‘In this case, we will postpone the privatisation for a longer period to do some restructuring.We will find funding to put into function a line or two of production to stop the waste.’ Nita said.He said that there are investors who showed their desire to buy Oltchim together with the refinery Arpechim. Owned by Petrom, the refinery has been closed down since 2009, but it is the main supplier of raw materials for Oltchim.

Oltchim is the biggest company in Valcea and has been insolvent since January 2013.The viable assets of the unit have been evaluated at 305 million euro.

6. Moody's: Improved macro-economic balance supports Romania's credit profile

Romania's Baa3 government bond rating is supported by the government's moderate debt levels as well as the anticipated improvements in productivity and incomes, says the annual credit report published by Moody's Investors Service.

These improvements are expected to accrue as a result of Romania's continued integration into the European Union via trade and investment, it adds.

Policy vigilance and financial support from international institutions are additional sources of support for the rating. The rating also incorporates credit challenges, including a relatively high external debt burden and inefficiencies in some state-owned enterprises that pose contingent 25

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In April 2014, Moody's changed the outlook on Romania's Baa3 rating to stable from negative, as the recovery in the euro area and Romania's own improved macro-economic outlook had reduced negative pressures on Romania's sovereign credit profile. Over the last year, Romania's growth has accelerated while its fiscal and current account deficits have declined, and inflation has decelerated.

The stable outlook on Romania's Baa3 rating reflects Moody's expectation that these macroeconomic improvements are likely to be sustained. According to the report, a combination of an improved regional growth outlook, reduced domestic macro-economic imbalances and policy efforts to kick-start domestic investment and consumption will improve Romania's average growth over the next five years to levels above those in the last five years, the report underscores.

However, the report adds that GDP growth is likely to remain below pre-crisis averages of between 6% and 7%, as external leverage and domestic credit are unlikely to rise to the extent they did in the years prior to 2008. Still, if the current recovery proceeds in conjunction with low fiscal and current account deficits and improved international competitiveness, Moody's believes that growth could be more resilient to shocks than it was prior to the global financial and euro area debt crises.

A reversal of fiscal consolidation, a decline in competitiveness or deterioration in balance of payments metrics could put downward pressure on Romania's rating. Upward pressure on the rating may emerge from a combination of a material improvement in the medium-term growth outlook or in external debt and debt-service ratios, or a shift in the government debt profile such that refinancing risks were reduced, the rating agency says.

7. Guillermo Tolosa, IMF: As of next summer Romania will no longer need a new accord Most probably Romania will no longer sign a new stand-by accord with IMF as of next year, according to Guillermo Tolosa, the IMF representative for Romania. “Our expectation and I think their point of view too (of the government- e.n.) is that as of next summer Romania will be on its own and will no longer need these stand-by accords,” was the answer made by Tolosa to a question coming from foreign investors present at a meeting with Romanian and foreign investors organized this week by Franklin Templeton, the administrator of Property Fund.

Mention should be made that in 2009 Romania obtained a foreign financing program of 19.95 billion euro from IMF, EU, WB and other international financial institutions. The IMF component of the program represented a stand-by accord of 12.95 billion euro for two years, completed in 2011. The government continued the relationship with IMF by a preventive type accord of 5 billion euro expiring this year.

The IMF official spoke about political risks in Romania and was confident that there would be very few negative effects. “I don’t see a very big political risk in Romania. The letter of intention was signed a few months ago by an alliance including the socialists, liberals and another political group, parties which represented most of Romania’s Parliament. The alliance no longer exists now but I am still confident in political stability. Now we only have some political noise,” Tolosa mentioned.

The IMF representative pointed out that the only really important risk for Romania is that of not implementing reforms quickly enough. “The only risk is a not very rapid implementation of reforms which we have already discussed. It is a risk for Romania of not reaching its potential. Otherwise I do not expect major problems in years to come. The Ukrainian crisis is not a major

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risk for Romania. On the contrary, I heard talks about investors who have reconsidered their stands in Russia and reoriented towards East European countries, Romania included,” Guillermo Tolosa concluded.

SOCIAL

1. End-May Bucharest unemployment rate at 2.06 pct

The total number of paid and unpaid unemployed in Bucharest stood at 22,456 persons at the end of May, corresponding to an unemployment rate of 2.06 per cent, according to data released by the Bucharest Municipal Agency for Employment (AMOFM).

As many as 11,884 of the total paid and unpaid unemployed persons were women.

Out of the 8,969 paid unemployed, 4,690 were women and out of the 13,487 unpaid unemployed 7,194 were women.

According to AMOFM, 2,381 out of the total number of unemployed were university graduates, 3,265 were high-school graduates and 3,323 had only received primary, elementary or vocational education.

In case of the out-of-work university graduates, 3,005 had exceeded the deadline until when they could receive pay, the same as 4,305 of the high-school graduates and 6,177 of those who only completed primary, elementary or vocational education.

As of January 1, 2014, as many as 8,284 were able to get a job.

In May, 15 persons submitted payment requests with the AMOFM.

The active civil population in the Romanian capital city was 1,092,700 persons on May 31, according to the abovementioned release.

2. Romanian medical assistant qualification recognized in EU after additional course

More than 59,000 graduates of post-secondary education with general medical assistant diplomas obtained before 2010 can get their qualification recognized in Europe after completing a one- year revalorization course, the Ministry of Health announced.

'The Ministry of Health, the Order of General Medical Assistants, Midwives and Medical Assistants of Romania and the Ministry of Education have obtained, following negotiations with representatives of the European Commission, the review of Directive 2005/36/EC on the recognition of medical qualification. Following this procedure, Romania has the right to implement a revalorization programme aimed at refining the previous training of medical assistants, allowing them to acquire skills in accordance to the minimal criteria set by the European directive,' a release of the Health Ministry informs.

Thus, the professional diplomas obtained by medical assistants before 2010 will be recognized in the EU member states without further theoretical testing or adaptation periods in the countries where they intend to work in this profession.

The ministry mentions that the respective post-secondary education is not equivalent to tertiary education.

The general medical assistants who want to use the new measure can ask the state post-

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3. Romania, the biggest 'provider' of physicians for Germany Romania came first in a ranking of countries with the largest numbers of physicians that migrated to Germany, with 3,215 physicians, followed by Greece, 2,500 physicians, and Austria, 2,189 physicians, according to an article published by Bloomberg citing data provided by the German Medical Association for 2013.

The number of foreign doctors practicing in Germany surged 120 percent in the past decade to more than 31,000. These young doctors are filling a critical need in Germany, where a diminishing birthrate has created a doctor shortage. Thus, approximately 44 percent of them are more than 50 years old. And there are fewer young doctors to take their place. That's because the population as a whole is aging even as many of Germany's young physicians leave the country, eager to earn higher wages in Switzerland and enjoy shorter working hours in Scandinavia. The shortage is in turn creating a big opportunity for foreign doctors, drawn by higher pay and greater career opportunities to help fill the gap.

It's a trend occurring across continental Europe, as immigrant doctors flow in from the south and the east. The number of doctors in France who got their medical degrees outside the country climbed 43 percent between 2008 and 2013 to 17,835, according to the French medical board. In the U.K., which has long welcomed doctors from India and Pakistan, 37 percent of physicians got their initial degrees abroad.

In what concerns Germany, the foreign doctors are predominant, especially in the hospitals located in the outskirts of the cities. 'The farther you go to the periphery, the more foreigners you'll find,' said Juergen Hoffart, head of the medical association in Rhineland-Palatinate. State officials aren't explicitly recruiting foreign doctors, he said, but they're coming anyway, lured by better salaries and working conditions. For instance, an entry-level doctor in Serbia earns about 350 euros ($477) a month, while an apartment in Nis can cost about 120 euros a month, Mladen said. An assistant doctor in Germany might earn 10 times as much.

The rural hospitals are often in places where German doctors don't especially want to work, Hoffart explained. They also are looking higher pay and more flexible hours, a quest that is taking many across the border to Switzerland and beyond. Last year, about 3,000 doctors left Germany for countries including Switzerland, Austria and the U.S. 4. Digital illiteracy affecting 41 pct of Romanian workforce

While the majority of the Romanian workforce has lacking digital competence, 41 percent are digitally illiterate, shows the Digital Agenda Scoreboard report.

The number of people using the Internet at least once a week has increased in the EU from 60 pct to 72 pct since 2010 and Romania is among the countries that has made significant progress in this regard.

Romania also maintains a leading position in terms of the speed of available digital connections, but whereas the share of citizens having never used the Internet is of just 20 percent in Europe, in Romania this percentage is double (42 pct). This reflects in the workforce skills: whereas in Europe only 39 percent of the employees and prospective employees have insufficient digital competence and just 14 percent don't possess digital skills at all, in Romania 83 percent of the workforce has insufficient digital competence, and 41 percent has no digital competence at all. At EU level half of the population has made online purchases and interacted with the public administration through the e-governance platform, while nationally only 8.3 percent and 5 percent of the population, respectively, has used these services.

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Data in the Digital Agenda Scoreboard report shows the Commission is about to complete 95 of the 101 Digital Agenda actions by 2015, which represents good progress. The EU citizens and organizations are getting increasingly online, do more online shopping and have greater ITC confidence and skills. However, especially in rural areas, they are often missing the high speed connection required to satisfy this digital appetite and the emerging digital competence gap is still a serious issue.

ECDL Romania further supports the Digital Agenda of the European Commission, considering it an opportune and necessary initiative. The improved digital competences and the development of IT skills will be key to restarting the Romanian economy by educating innovative workforce and minimizing the digital divide, and will be an integral part of the success of a policy of smart, sustained and inclusive growth. Through the nationwide network of ECDL Testing Centres and through the projects it undertakes, ECDL Romania makes sure that the opportunity to obtain and have one's digital skills certified at international standards is open to everybody. Youth, pupils, students, civil servants and company employees can have their IT skills proven through the ECDL.

The European Computer Driving Licence is the most common digital competence certification program recognized internationally in 150 countries and counting so far 13 million people registered in the program.

CULTURE

1. Simona Halep to become ambassador of Romanian sport during first competition hiatus

Roland Garros finalist, tennis player Simona Halep, is to become an ambassador of Romanian sport and will receive a diplomatic passport that was already prepared by the Ministry of Foreign Affairs (MAE), as soon as she returns to the country, during the first competition hiatus to come, said Minister of Foreign Affairs Titus Corlatean.

'We have already fulfilled the standard procedures for the diplomatic passport, all the procedures regarding electronic signature, photograph, fingerprinting, for the new biometric diplomatic passport. We will organize a small special event, probably at the Government House, to hand this diplomatic passport. It is our homage for an extraordinary performance, that made Romania a subject of talks very often this week. The diplomatic passport is already completed, but we will set the date when Simona is in the country, between competitions and we do not disturb the schedule she has', said Corlatean, who attended the international conference titled 'Forum: cultural diplomacy, media and tourism' in Sibiu.

2. National Art Museum receives TripAdvisor certificate of excellence

The National Art Museum of Romania (MNAR) has received the 2014 TripAdvisor Certificate of Excellence due to the favorable reviews received from visitors over the last year.

According to a MNAR release, the TripAdvisor prize is granted following the qualitative analysis of the opinion of those who visited MNAR and reflects the positive image of the institution, which recorded a total number of 90,700 visitors in 2013.

TripAdvisor.com is a well-known tourism promotion website, whose goal is to provide detailed and current information about various tourist locations based on visitors' experience. It also includes an interactive forum dedicated to travels. 29

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The MNAR is the owner of the richest heritage of Romanian and universal art in the country. Established in 1948, it is housed by the former Royal Palace, occupying an important place in the hierarchy of cultural institutions in Bucharest.

The steps to make the museum accessible to all public categories has continued in 2014 by launching virtual tours, available free of charge on the museum's website. Made in collaboration with Imago Factory, the tours include, along the permanent galleries of MNAR (Romanian Old Art Gallery, Gallery of Modern Romanian Art and European Art Gallery) also satellite- museums: the Museum of Art Collections, the K.H. Zambaccian Museum and the Theodor Pallady Museum.

3. Farming, crafts, forestry, tourism seen as possible Rosia Montana development solutions

Farming, crafts, wood industry, forestry and tourism are the solutions that the Association of Architecture, Restoration and Archaeology (ARA) proposes for the development of Rosia Montana (western Romania) and the nearby area, where gold quarrying is planned, the Association vice president Stefan Balici told Agerpres.

He said, on unveiling the results of a four-day mission he had conducted with the Europa Nostra Organization and the European Investment Bank (EIB) institute in Cluj, Rosia Montana and Bucharest that such ideas have been shared by the local community as part of a range of meetings held in the town these days.

'The people came up with such proposals. These are solutions that can be backed by the local authorities and the community', Balici stressed.

The mission is aimed at making a technical assessment of the development potential of Rosia Montana area and finding possibilities to fund economic activities that should help save the area.

'We've met to discuss the possibilities for the development of Rosia Montana and the nearby area starting from the wildlife and cultural heritage resources that it has, not by mining. We've drawn the conclusion that there already are important economic activities here, some of them traditional and ones that can make up the foundation of a future development and there are other activities that are not traditional and that should be developed under programmes we are to work out', Balici said.

The ARA supports the development of financial levers to help the Rosia Montana area and the Western Carpathians. Rosia Montana is included in the Europa Nostra Organization list for the Seven Most Endangered Programme.

4. Festitalia in Bucharest

The second edition of Festitalia Festival brings a week of Italian country feasts to Bucharest's Herastrau Park between June 25 and July 1.

'Festitalia, under the slogan 'A Bit of Italy in Bucharest', was born from the idea of creating a very actual bridge between Italians and Romanians. (...) The event has a program considering all ages. The festival's goal is to bring families to a relaxation area, where they can enjoy greenery and fresh air,' says Enzo Peraro, director of the Italian Cultural Institute of Bucharest.

The festival's guest list includes the folk band Le Ninfe della Tammorra of Naples; the jazz band Il Magnetofono; the urban folk group Sestomarelli of Milan; the Jalisse duet; Laura Kibel with

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

an original, fascinating theatre performance - the Leg Theatre, with the artists' legs, hands, and knees as puppets representing fantastic creatures; the Passione quartet, winner of the 2014 DocMusiContest international contest in Rieti; accordion player George Romanu, and pan pipe player Nicolae Voiculet. Artists of the Parada Romania Foundation will perform in the circus show 'A Red Nose against Indifference.' Students and graduates of the Bucharest National University Music will sing opera arias in the 'Vissi d'arte, vissi d'amore' event - a heading from Puccini's opera Tosca.

Children are invited to play soccer with Inter Campus, in a social programme initiated by the Internazionale Milano football club.

Festitalia's next-to-last day, June 30, is dedicated to ecology and environment protection. A programme directed by Alfredo Tisocco will teach Bucharest locals to ride a mountain bike under the guidance of Pro Cycling Team's Ulisse Gheduzzi.

The last night is dedicated to Greece and its culture, as Italy takes over the presidency of the European Union from Greece.

Entry to all events is free.

Stands with Italian products and cuisine will be open throughout the seven days of the festival.

Festitalia's second edition is organized by the Italian Embassy and the Italian Cultural Institute, in a partnership with Creart - Bucharest Municipality Centre of Arts and Traditions, and the Green Revolution Association, with the support of Bucharest Municipality, ALPAB (city's Lakes, Parks and Leisure Administration), RO.AS.IT (Association of Italians of Romania), and the Greek Embassy.

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: london.mae.ro