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Anti Government Protests in Romania against Healthcare Reforms Continues

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`A Romanian man holding the national flag with a hole,
Earlier there used to be a symbol on that place, which was later dropped.

Thousands of Romanians protesters marched through the streets and University Square in the capital, Bucharest. The protest against the government has now spread to over 40 cities in the country, demanding the resignation of the president for imposing harsh austerity measures in order to receive international loans for the nation’s slow economy.

Romania is seeing one of the largest protests in recent time. Last big revolution was in 1989 which brought down the communist regime in the country. The same University Square was the place where anti communist revolution took place, hence it keeps a great historical significant for the citizens of Romania.

Protesters hanged the dummies of President Basescu and other ministers (such as the Tourism and Regional Development Minister Elena Udrea) to demonstrate their anger towards his corrupt government and laws. So far most of the protesters and protest demonstrations have been really peaceful, except few incidences.

Protests in Romania

A Romanian reporter giving Rose to the policemen

The editor of Cadran Politic Review and a close friend of ours, Gabriela Ionita went through the depth of the event and analyzed the situation with her experience in journalism.

In her recent article Romania – a revolution for evolution? on her blog, she explains that the protests in the country are for various reason. The anger against the government was stacking up for years and was only sparked by the resignation of Deputy Health Minister, Raed Arafat. It all started with President Basescu calling him enemy of health reform on national TV.

Arafat, a Syrian who became Romanian citizen, is the founder of advanced state of the art emergency rescue system (SMURD). The system is so sound that even some West European countries like France want to implement it.

The protests don’t focus only on the health reforms but has now has widened against the corruption and the bad governance of Basescu’s government.

The Government, in a failed attempt, tried to appease the protesters and the situation in the country with some excuses that didn’t convince the people of Romania. The heads of the government, Prime Minister and President, are maintaining a low profile and in between have mimic the protests by calling it a political game by opposition, similar to what we have been observing in India, which is in the state of peaceful protest and demonstration of public demands since early 2011 (as the country saw protest against Black Money and Corruption).

Romanian kid giving heart balloon to police

A Romanian kid giving a heart shaped balloon to the police

A large number of Romanian protesters are demanding for early election and change in the government, a possibility which has been rooted out by the government saying it would create dangerous precedent and economic instability. The people of Romania seem unconvinced with this, as in 2011 the amount of foreign investments in Romania fell down by 36%, 18% of Romanians have fallen below the poverty line, a poor Romanian employee now earns 159 euros achieving the lowest minimum wage in EU countries, as compared to UK ~ 967 Euros, Bulgaria ~ 233 Euros, Poland ~ 326 Euros, says Gabriela.

As Romania became ally of western bloc joining NATO and EU, the country was supposed to be benefited but didn’t experience much change. Many Romanian soldiers have been killed in Afghanistan and Iraq unnecessarily in the name of NATO army, though the actual war was in America’s interest.

Romanian Protesters claim that the President and his close allies have sold their country resources for the benefit of himself and richer west European countries.

petarde

A similar blame was slapped on former government of Ukraine which was considered a puppet to US and West Europe, but Ukrainians were quick to realize the destiny of their country in the hands of Pro western government. The government changed in the next election, the process to join NATO was stopped and ties with Russia were fixed. (Read More: Europe or Russia? Whom will Ukraine Choose?).

Looking at the scenario in Romania, the theory of East Europe loosing confidence in Democracy, capitalism and western powers looks even stronger. In an article posted few weeks ago (Democracy, Capitalism Loosening in Former Soviet Union, Union is Being Missed) we took example of three East European countries, Lithuania, Ukraine and Russia to show that the public confidence in their economy, democracy in their country and western powers is declining. Now Romania is joining the same league, showing that governance and economy culture enforced by western countries is not working out in this region as the current ruling politicians are not much enlightened on how to lead a democratic society.

US, which claims to support the voice of the people in the name of democracy, is currently quiet and is just following the protest incidents happening in the country. As the deal of Anti Ballistic missile with Romania is on the way, US wouldn’t like the government to fall down.

It is very much similar to what happened in Egypt. Mubarak was a dictator, but at the same time an ally of US. When people marched and organized rally in protest against their Egyptian leader, US was mere a spectator. But when people came out to protest against Libyan leader Gaddaffi, NATO and European force came up with full military, monetary and medical support.

Just like conventional media, this protest event in Romania has taken over the social media as well. While Romanians are posting the updates of the events, people living in different countries are getting the real picture which is sometimes purposely not covered by mainstream media.

top 50 images of Romania

Protesters on the streets being monitored by the Police

Facebook is full of pictures and videos from the University Square.

A commentator on our Facebook page (Join Now) says, “The generation of protest is the favorite and catchy scenario all over the world .No body is satisfied with anybody. Once the protestors are satisfied with their victory, next they start fighting amongst themselves to establish his/her (group) hegemony. This continues till a powerful group with support of Arms and Ammunition s from neighboring / interested greedy country, takes over through a massacre of human lives. This is NOT THE END. Vultures are available to exploit with slight provocation. The century of protest is on.”

Davis Wendy on RT says, “It’s a coincidence I guess that the entire globe’s developed nations are simply coming unglued. It’s funny how the collapse of economies simultaneously occurred just as a handful of “savvy businessmen” got richer than stink. Credits ruined, homes lost, jobs outsourced, medical care unattainable, currency crashes, the banks becoming consolidated into a mega corporation. All just a fluke, right? Do you think we are stupid? The party is OVER. It was devised, designed to end with them with everything and us with NOTHING. Pawn shops have never done so well. How dare men without regard for human suffering are now equipped with their very well-trained personal armies!”

Another commentator on Facebook says, “Americanism…Romanians you caught that one …part of the American bankster extortion or harvesting program…you too can now have mind numbing psychotropic drugs with little effort. Don’t stress about it and no need to protest about it….there is always Prozac. hahaha. (made in Taiwan)”

Aleahim said, “None of you know the truth about how hard is to live nowadays for the people in Romania. We have no industry, no doctors, the education system was crushed… everything is being sold to other countries for 50 cents… people can’t stand this anymore! First get informed and then comment! The protests will go on until some changes will be made, for better living conditions hopefully!”

An intellectual gentleman Dan Veliscu told RT, “In Romania – a country were almost nothing works as it should or as it’s claimed, we have one working emergency service – the SMURD. And now a good-for-nothing president tries to close it. People have sided with the SMURD, against the president who, on his second term, can’t show anything that he’s done for the country – not like he did anything tangible before being elected president when he held positions such as transports minister or mayor of Bucharest.

Now the intended closure of the SMURD is just the tip of the iceberg – the spark that ignited the masses – as there are countless reasons to protest and overthrow the regime.

WE ROMANIANS DON’T NEED THE IMF! We don’t want any money from the IMF, we don’t need to borrow and we don’t want any debts for us or for our children to pay. Previous money the IMF gave to Romania were ALL stolen, most of it by banks which sent billions outside the country just as soon as they got their bailouts, and the rest was stolen by politicians. We don’t need foreign money and foreign debt, we can make it on our own. Politicians which demand IMF money are all thieves and traitors, since they want that money for their own pockets, not for the country. Let them pay the debts, not us!”

All images are copyright of their respected owners, TWR doesn’t own the material unless notified.

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Sanskar Shrivastava is the founder of international students' journal, The World Reporter. Passionate about dynamic occurrence in geopolitics, Sanskar has been studying and analyzing geopolitcal events from early life. At present, Sanskar is a student at the Russian Centre of Science and Culture and will be moving to Duke University.

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Economy

Manufactured goods and industry: a symbol of German decline

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German industrial power and quality levels became a national symbol in the latter part of the 20th century, and to some extent the lifeboat of post-war reconstruction. Even throughout the industrial rise of Asia at the end of the century, the German island remained sanctuarize from the competitive attacks of Eastern developing countries. But several German industries have been increasingly struggling in the past decade and gasping for air. Is Germany at the end of its prosperity cycle, for having rested on its laurels?

Germany, along with its wartime Japanese ally, impressed the world with its rise from its ashes in the latter half of the 20th century. Starting with the Marshall plan quickly followed by self-standing growth, Germany speedily re-built its industrial capacity, and its reputation for top-notch quality. As soon as in the 1960s, German brands invaded the global market with their sturdy reputation preceding them: if the product said “Made in Germany” then the customer could feel sure there was nothing better on the market. At the end of the century, a large share of the top global engineering segment was German: BMW, Bosch, Rheinmetall, Merck, the list is endless. Economic historian Werner Abelshauer describes [1] how the label “made in Germany” became a symbol of quality: “The label “Made in Germany” ultimately developed into a sign of quality, though it took a while.” But the era during which Germany levitated above the rest of the industrial world is coming to an end. While Germany remained unharmed by Asian competition for longer than its neighbors, it is now fighting on a level field with all other manufacturers in the field, and worse: it’s not doing all that well. Economic reporter Chris Papadopoullos placed [2] the start of the decline during the year 2015: “Total production, which includes construction, manufacturing and mining, dipped 1.2 per cent in August compared with July, German statistical office Destatis said. The production of capital goods fell 2.1 per cent while consumer goods dipped 0.4 per cent. Construction and energy output also posted declines “.

Of course, the Volkswagen scandal caused a major dent in the image of industrial Germany. Consulting group ALVA published an extensive study of the post-scandal consequences on the image of Volkswagen and German quality altogether, and wrote [3]: “After the emissions scandal revelations, we can see a very different picture, with all Advocacy drivers having moved into negative territory to a greater or lesser extent. This is indicative of a reverse halo effect in which a negative emotional response to a company due to an erosion of trust spills over and clouds rational judgement of all of its traits.” Until then, German car manufacturers had been above suspicion, thanks to their reputation for industrial quality and business performance: when one is the best, there is no need to cheat. Through the fraudulent emissions revelations, Volkswagen, one of Germany’s flagships, showed that “Made in Germany” wasn’t all it was cracked up to be, and that they had flown too high on borrowed wings. The scandal shed doubt over other German flagships in its wake, as reported [4] by automotive journalist James Mills: “German media allege that US authorities have discovered that Daimler, parent of Mercedes, developed software for its diesel-powered vehicles that would shut down vital emissions equipment after driving just a short distance. Daimler is reported to have come up with programs that would shut down certain functions of the selective catalytic reduction filter after just 16g/km of NOx is admitted.” And the damage extended beyond the automobile world, into the whole industry.

Of course, if the problem were limited to the automobile world, Germany could survive on the others. But the slipping in industrial standards, the resulting loss of performance, and finally the need to resort to unsavory business practices to survive, seems to have contaminated all fields of the German industrial apparatus. German shipbuilder TKMS recently illustrated the downfall: after decades of occupying high grounds on the submarine market, the engineering firm is facing such a severe string of problems that it is facing being sold off entirely and scrapped from the national heritage. After losing a major submarine contract in Australia, it delivered a few corvettes to the German Navy, which simply refused them on the dock, due to quality standards being overstepped. Wall Street Journal William Wilkes reported [5]: “Germany’s naval brass in 2005 dreamed up a warship that could ferry marines into combat anywhere in the world, go up against enemy ships and stay away from home ports for two years with a crew half the size of its predecessor’s. First delivered for sea trials in 2016 after a series of delays, the 7,000-ton Baden-Württemberg F125 frigate was determined last month to have an unexpected design flaw: It doesn’t really work.” Germany’s submarine fleet, also built by the same shipbuilder, is currently completely out of order [6]. In desperate need for new contracts, it resorted to bribing officials, resulting in a political and economic quagmire in Israel. In an attempt to secure a submarine purchasing contract in Tel-Aviv, TKMS allegedly transferred over 10 million dollars through shell companies to a top government Israeli official. News Site Haaretz [7] reports: “At least ten high-powered individuals have been identified as involved in the scandal, including very close associates of Prime Minister Benjamin Netanyahu. A multimillion dollar submarine deal with German shipbuilder ThyssenKrupp is the focus of a police investigation, which is probing possible wrongdoing involving Netanyahu’s personal lawyer and German shipbuilder ThyssenKrupp’s local representative.” For weathered investors, this time in which German manufacturers need to resort to cheating to make up for their slipping industrial standards is something completely new, and in some ways an earthquake. As a result, investments are scarce for start-ups [8], as well as for established businesses [9].

Germany’s downfall in the industrial world isn’t taken lightly by political forces, and the economic problem is turning into a political one, with worker unions stepping up their criticism of management, and politicians scrambling to stop the nosedive. Angela Merkel has been urgently addressing the problem, but so far too little or no avail. “Angela Merkel champions Industry 4.0, urging investment in new technology. German business isn’t heeding the call”, says Politico [10]. Unlike Angela Merkel, many in the country haven’t figured out that Germany had slipped from one industrial model to another: initially known for the superb quality of its products, it was caught up quickly by its direct competitors: United Kingdom, France, Japan and the United States in particular. The core of German’s added value today lies mainly in the machine-tools and high-tech subsystems of German equipment-makers. But as a whole, Germany no longer has the capacity to integrate large and complex systems such as aircrafts, frigates or new-generation submarines.

[1] https://www.dw.com/en/125-years-of-made-in-germany/a-16188583
[2] http://www.cityam.com/226018/german-industrial-production-sees-steep-decline
[3] http://www.alva-group.com/en/reputation-damage-vw-emissions-scandal/
[4] https://www.driving.co.uk/news/emissions-scandal-vw-mercedes-cheat-diesel-tests/
[5] https://www.wsj.com/articles/german-engineering-yields-new-warship-that-isnt-fit-for-sea-1515753000
[6] https://www.defensenews.com/naval/2017/10/20/all-of-germanys-submarines-are-currently-down/
[7] https://www.haaretz.com/israel-news/LIVE-the-israeli-submarine-scandal-what-we-know-1.5626626
[8] https://global.handelsblatt.com/companies/german-startups-drying-up-without-risk-ready-investors-863686
[9]https://www.reuters.com/article/germany-investment/big-investors-cautious-on-german-public-private-partnership-plan-idUSL5N0XK45Q20150423
[10]https://www.politico.eu/article/why-europes-largest-economy-resists-new-industrial-revolution-factories-of-the-future-special-report/

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Hungary And Poland To Lose Up To 25% Allocation Of EU Funds

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Hungary and Poland are set to be hit with new cuts in cohesion support after EU commission proposed new radical changes. This came to light after a series of propositions were published recently by the EU executive. Eastern European countries will be hard hit by the propositions, but more impact will be felt in Hungary and Poland.

The changes come in light of the immigration policies that certain countries have chosen to adopt. The two most affected countries will lose nearly 25% in cuts due to their problematic policies. The repercussions of the cuts could be felt very soon especially if the Eastern European countries decide to take on Western Europe.

Even though the commission has maintained that the new changes are not meant to be punishment for inconsistency and criticism, there is a general feeling that the countries will not take the changes well. The commission also argued that there is no need to compare the allocations between EU member states as each country has their own share of prosperity.

The proposed changes will also affect more countries in Eastern Europe including Lithuania, Czech Republic, Slovakia, and Malta. Germany will also get a reduction in the allocation to the tune of 20%. There are some countries however that will get a raise in their allocation including Greece, Romania, Bulgaria, and Italy.

The EU commission, through its commissioner for regional development, Corina Cretu, says that the recent changes have no political bearing behind them.

How the commission arrived at the figures

In previous years, the commission had an established formula for calculating the allocation of funds. This year though, it seems like there was a break from tradition since the calculation method was visibly adjusted. The GDP would be used to determine prosperity in the region during the past, for instance. This criterion seems to have been adjusted in addition to the inclusion of other factors like climate, education levels, employment levels, and of course the attitude of the countries towards immigrants.

It is yet not clear how these changes will affect the forex market in Europe. What is clear though is that the aftermaths of major decisions in recent years have often caused some disturbances in the stocks and forex markets. At times like these, stock and forex traders need to be on the lookout for any major breaking news. Admiralmarkets.pl suggests using the current forex and stock platforms to get market feeds in real-time.

The current feeling from the Eastern European countries is that the commission is finding ways of diverting money from the region to other regions that have faced challenges in recent years. The southern part of Europe has for instance been in the red for a couple of years now. The crisis in Greece and Spain is yet to completely settle.  The sentiments of Eastern Europe do not seem to bother the commission, however. The commission argues that these countries have seen major growth in recent years and that they would even handle stiffer cuts. This, the commission argues, would especially be true if issues like GDP per capita were to be considered.

EU officials have spent much of the time explaining how their recent propositions are in no way related to the crisis in the south. Instead, the commission has used every opportunity to highlight the changes in GDP as the key reasons for the allocation cuts. It is indeed easy to find reason in this rationale when you analyze the economies of Eastern European countries.

Poland has for instance seen a lot of positive growth in the past few years. In 2017, the economy grew by 4.6%. This growth came in the backdrop of a similarly strong growth the previous year where the GDP growth was recorded as having been 3%. The forecasts for this year do not look bad either. The GDP is expected to grow by at least 4.3% as per what the commission has established on its forecasts. The growth pattern in Hungary was also comparable, being 3.3% in 2016, 3.45% in 2017 and with a projected growth of 4% year.

Looking south, the economy of Italy recorded growths of 0.9% and 1.5% in 2016 and 2017 respectively. The forecast does not look any different also as a projected growth of 1.5% is expected. In order to argue their case, the commission argued the case of Portugal, which is still struggling but which got some cuts due to its strong performance recently.

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Hungary Economy: Population, GDP, Inflation, Business, Trade

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The Hungarian economy is ranked as the 55th freest according to 2018 statistics. This economy has undergone a lot of transformation and it has particularly improved in the areas of the judiciary, labor freedom and investment. There are some realms however that have not seen great improvements especially in the areas of business freedom, government integrity, and property rights. In overall, Hungary is below average in most metrics in Europe compared to other peers in the region. The country is also just above the world average on the global scale.

Looking at its recent past, this country has seen a bit of relapse into some laws that were previously abandoned. The country has definitely seen much freer and liberal laws in recent years just before the government began to intervene in the areas of policy. Much of the changes over the years have been instituted to support economic growth and to balance out the budget while steering clear of areas that might cause conflict with the European Union. There are many targets that the government has including reducing public debt. It plans to achieve all of them by taking an active role and instituting sectoral laws.

The history of Hungary is long and colorful. It was once part of the communist realm until 1990 when it became completely independent. The country is currently a member of NATO having been in the organization since 1999. When the EU was formed, Hungary was not among the founding members and only joined the organization in 2004. There have been numerous economic reforms in the last decade and today, the economy is supported by strong local demand as well as exports. In recent years, things have been looking very optimistic for the country. The construction industry has boomed and there is a hands-on approach by the government on economic matters. The unemployment rate in the country is low.

Despite these improvements, there are still some challenges that face the government. It is for instance not as open as it ought to be and the judiciary is weak and subject to government interference. The policies surrounding land tenure are pretty straightforward and the government keeps updated records. Because of its somewhat domineering government and a weak judiciary, there are always concerns about corruption. The business sector is thus highly affected by the apparent indifference in the government towards corruption. A lot more needs to be done by the government to deal with prominent figures who have been a menace to business.

Moving on to the financial sector, there is a generally fair support by the government to the financial markets. The tax for corporates is maintained at 19% and tax for individuals is at 15%. The stock market is pretty vibrant with the Budapest SE index enjoying some good figures in recent years. Forex traders can do many things in this country even though the market is not as developed especially compared to the West. Forex trading is supported a lot and there are dedicated providers that allow Hungarians to access tens of thousands of markets.

As a country that is still developing many sectors, Hungary has a government that has a direct oversight over some sectors. You will thus often find direct government support for some industries. There are some sectors where there is not enough manpower. The labor regulations are somewhat basic which makes mobility a little difficult. Most of the product prices are market-determined but some goods’ prices are regulated by the government. Some of the areas in which the government has a hand on the prices include the markets of pharmaceuticals, tobacco, digital money, some machinery and electronic appliances and telecommunication products.

The health of the economy is definitely good considering that the trading industry is pretty vibrant. Hungary relies a lot on both exporting and importing goods. The total value of goods that either leave or enter the country comprises of up to 175% of the GDP. There are no strict tariff regulations and there is a general preservation of a 1.6% tariff rate. While there is much more government presence in many areas of the economy, the impact is not too big to disrupt economic activities. The financial sector is still in its formative years and it will take sometime before the banks get the necessary regulatory policy that supports growth.

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