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What the newspapers say: July 15, 2009

de A.C.     HotNews.ro
Miercuri, 15 iulie 2009, 8:27 English | Press Review

Sports minister Monica Iacob Ridzi resigned after allegations of illegal spending of some 750,000 euro, one newspaper reads on Wednesday. Also in politics, the governing alliance is on the verge of new quarrels as PM Boc is said to cut Social Democratic functions in the government, as anti crisis measures. Elsewhere in the news, Romania's diaspora in Spain and Italy became the main investors in the national economy.

Most newspapers on Wednesday read about the resignation of Sports minister Monica Iacob Ridzi. Cotidianul reads that Basescu classed the whole scandal as a serious moral crisis, saying that there was a dirty collaboration between politics and the media.

Romania Libera reads that now ex Sports minister Ridzi declared that she is not guilty but that she quits to cut short the public debate and media aggressiveness that affect the image of the Government. Moreover, she motivated that her family is too exposed to the pressures of the scandal.

The decision comes after the mass media revealed that the events paid through the ministry to mark Youth Day were over evaluated and that the ministry chose some companies based on interests rather than official requirements.

Gandul reads that finally, both the government and the Presidency managed to find a reason to dismiss Ridzi and not leave the impression that the decision came as a result of the media pressure. The main reason was the internal Sports ministry audit, published by sports daily Gazeta Sporturilor which revealed a series of inconsistencies in the way public money were spent for Youth Day.

The governing Democrat Liberals replaced Ridzi as soon as she announced her resignation with Democrat Liberal Senator Luminita Placinta.Basescu did not miss the opportunity to attack the media moguls and classed the whole scandal as a dirty cooperation between politics and media.

Also in politics, a new scandal is about to emerge in the governing coalition as Democrat Liberals might cut Social Democratic functions in the government and class them as anti crisis measures, Cotidianul reads.

Apparently, according to Social Democratic sources, PM Boc will announce the dissolution of 50% of governmental agencies. This translates in a 50% cut of Social Democratic functions, negotiated during the formation of the government.

Environment and Education ministers declared that they cannot dissolve the agencies within their subordination. Moreover, Environment minister Nemirschi even suggested that the Prime Minister should cut some agencies in the subordination of the government.

Cotidianul reads that Romanians living abroad send back home sums that exceed 400 million euro when compared to foreign direct investments in the country. Therefore, the newspaper reads, Romanians living abroad became the main export product of the country.

According to Romania's National Central Bank data, Romanians living abroad sent by June some 2.89 billion euro, registering a 13.5% decrease compared to the same period, last year. By comparison, foreign direct investments dropped by more than 44% to reach 2.47 billion euro.

The newspaper reads that the gap will deepen as foreign direct investments will crash and the money sent back home by Romanians will decrease. The main explanation put forward by experts is that Romanians are working in economies which recover faster than Romania.

These sums would cover Romania's foreign deficit and on top of that, would exceed it by 1 billion euro. Data reveals that money transfers represent the only foreign currency gate into the country that is still working quite normally if we are to consider that Romania's exports dropped by 26.5% compared to last year. 
























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