The state invests in the war industry and eliminates the pacifist presidential candidate Călin Georgescu

The first month of spring was a dense one in government decisions, with a wide range of interventions, from support for agriculture and industry to strategic investments in energy, defense, infrastructure and national security. The government led by Marcel Ciolacu mobilized significant amounts from European funds, the national budget and revenues obtained from emission certificates to support economic growth and protect vulnerable categories, a fact that left its mark on the budget deficit, which on March 1, 2025 had already reached 1.58% of the Gross Domestic Product. Therefore, in order to have the necessary revenues for the state budget to cover public spending, the Government continued to borrow from external financial markets, but also from the domestic market. The Fidelis government bond issue in March alone attracted over 2.2 billion lei to the state budget, with a new Tezaur issue also launched last month, which was completed in April.

Read March in numbers

The budget execution for February, published at the end of March, shows us that, although revenues increased by 3.5%, investments decreased by almost 24%, which could signal a risk to the economic recovery expected by the Government. Especially since in the middle of last month, the National Bank of Romania reported, for January 2025, a slight decrease in total external debt, but also a halving of direct investments by non-residents compared to January 2024, noting that the current account deficit increased, following persistent external pressures.

Despite this situation, the PSD-PNL-UDMR governing coalition continued to allocate funds from the state budget for various measures and programs. Thus, the Ciolacu government has allocated over 1.5 billion lei as support measures for farmers and livestock breeders. In addition, the ceilings for transitional national aid for the 2024 agricultural year have been established, which will take over one billion lei from the state budget. Moreover, in 2025, livestock breeders will receive another 450 million lei (210 million commitment credits and 240 million budget credits), mainly intended for the management of herd registers.

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Last month, the Executive approved the financing of 18 smart natural gas distribution projects, worth 1.18 billion lei, from greenhouse gas emission certificates, established a state aid scheme of 3.12 billion lei for the closure of uncompetitive coal mines in the Jiu Valley and approved a state aid scheme of 578.4 million euros for large energy consumers, by exempting them from paying green certificates, in order to support the competitiveness of the energy-intensive industry.

The Ciolacu cabinet also decided in March to allocate 440 million euros (which will be recovered from the EU budget) for a new edition of the Start-Up Nation program, as well as the continuation of the "New House" program with a total guarantee ceiling of 500 million lei.

To support vulnerable people, the Government has also decided to provide in 2025, in two installments, a total financial support of 800 lei, which will benefit 2.7 million pensioners with incomes below 2,574 lei.

Regarding investments, in the last month of the first quarter of 2025, the Executive established the priorities for the legal commitments of the National Investment Company (CNI) in 2025, amounting to 3.805 billion lei, money from which over 100 projects regarding the rehabilitation of schools, hospitals and streets in rural areas, as well as sports infrastructure, will be financed.

To all these expenses, those established in last month's meeting of the Supreme Council of National Defense would be added, which decided to purchase a modern multi-role corvette for the Romanian Naval Forces, continue to provide increased military and economic support to Ukraine, and gradually increase the defense budget.

In terms of domestic politics, March was quite hectic, taking into account the fact that March 15, midnight, was the deadline for submitting candidacies for the presidential elections, the first round of which will take place on May 4, 2025. The Central Electoral Bureau and the Constitutional Court decided to reject the candidacy files submitted by Călin Georgescu and Diana Şoşoacă, thus removing them from the presidential race. Against the backdrop of these decisions, Călin Georgescu's supporters, instigated by his statements, George Simion's, and Horaţiu Potra's TikTok videos, provoked violence in the center of the Capital. They were detained by the gendarmes and ended up with criminal cases. Moreover, the Prosecutor General's Office opened a criminal case on George Simion, who stated that BEC members should be skinned alive in Victoriei Square, and Horaţiu Potra, after being put on international alert, was faced with a new criminal case for incitement to change the constitutional order through violent acts. In this context, at the end of March, DIICOT also dismantled the network of influencers on TikTok financed by Bogdan Peşchir, who was also faced with a preventive measure until the completion of the criminal trial.

Under these conditions, upon completion of the entire process of submitting candidacies and judging the appeals filed and after the withdrawal of her own candidacy by Anamaria Gavrilă (POT), Crin Antonescu (PSD-PNL-UDMR), George Simion (AUR), Nicuşor Dan, Victor Ponta, Daniel Funeriu, Elena Lasconi, Cristian Terheş, Lavinia Şandru, John Ion Banu, Silviu Predoiu and Sebastian Constantin Popescu remained in the presidential race.