Press Review - February 1, 2019

02.01.2019 By Oana Gavrila

Finance Ministry Publishes 2019 Draft Budget

Romania's finance ministry has published its 2019 state budget draft which targets a deficit of 2.55% of gross domestic product.

The budget was built on a projected economic growth of 5.5% and a projected exchange rate of less than 4.7 lei to the euro.

Romania Leu Recoups Some of Its Losses Vs Euro

The Romanian leu firmed to 4.7348 units to the euro, up 0.44% on the day from Wednesday's midday rate of 4.7555 lei to the euro.

The leu has tumbled since the beginning of the year and hit new all-time lows for seven days in a row in January.

Another Social Democrat Defects to Ponta's Party

Social democrat MP Georgian Pop announced Thursday he was quitting the Social Democrat Party and joining Victor Ponta's Pro Romania party.

Pop criticized party leader Liviu Dragnea for dividing Romanians and causing internal party tensions.

Social Democrats Accuse Iohannis of Leaving Army  Vulnerable

The ruling Social Democrat Party said President Klaus Iohannis “understands nothing of his obligations” and has left the country's army vulnerable without a chief of general staff.

“This is the first time a NATo army is left without a first in command. Even though the court decision is not final the Romanian Army cannot be mired by uncertainty and cannot be a matter of political disputes. Iohannis should leave stubbornness aside and appoint a new chief of staff,” the party said on its Facebook page.

Romania's defense ministry challenged the presidential decree extending the previous chief of staff's term and the Bucharest Court of Appeals on Thursday suspended its effects.

Iohannis issued the decree last year extending the term of Romanian Army Chief of Staff Nicolae Ciuca for another year after rejecting the nomination made by defense minister Gabriel Les for the office. The court decision is not final and can be appealed within five days.