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Romanian top court annuls presidential election result

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By Luiza Ilie

BUCHAREST (Reuters) -Romania’s top court annulled an ongoing presidential election after accusations of Russian meddling and said on Friday the entire process, which had been due to conclude this weekend, would have to be re-run.

The second round had been scheduled for Sunday and voting has already begun in polling stations abroad. It would have pitted Calin Georgescu, a far-right, pro-Russian candidate, against pro-European Union centrist leader Elena Lasconi.

“The electoral process to elect Romania’s president will be fully re-run, and the government will set a new date and … calendar for the necessary steps,” the court said in a statement.

Georgescu scored single digit numbers in opinion polls before the first round vote on Nov. 24 but then surged to a first-place finish that raised questions over the result.

Georgescu wants to end Romanian support for Ukraine against Russia’s invasion. If he won the presidency it would upend the pro-Western politics of the EU and NATO member, pushing Romania closer to a belt of states in central and eastern Europe that have powerful populist, Russia-friendly politicians, including Hungary, Slovakia and Austria.

Friday’s court ruling plunged the country into institutional chaos. Current President Klaus Iohannis’s term ends on Dec. 21 and it was unclear who would be head of state after this date.

Analysts said the ruling may erode institutions, trigger street protests and ultimately still endanger the nation’s pro-Western course. It was not yet clear if Georgescu would be allowed to take part in the re-run election.

Romania’s top security council declassified documents on Wednesday that said the country was a target of “aggressive hybrid Russian attacks” during the election period.

Russia has denied any interference in Romania’s election campaigns.

The top court, which had validated the first presidential round on Monday, said in its Friday reversal that it was “seeking to ensure the fairness and legality of the electoral process”, adding that a detailed explanation of its ruling would be released at a later date.

There was no immediate comment from Georgescu, but he was due to make a statement at 1900 GMT on Friday.

George Simion, the leader of the opposition hard-right Alliance for Uniting Romanians (AUR) called the court ruling a “coup d’etat”, adding “nine politically appointed judges, scared that a candidate outside the system had all chances to become Romania’s president, decided to annul Romanians’ will”.

Simion came fourth in the first round. He and AUR then endorsed Georgescu.

Lasconi condemned the court’s ruling. “The constitutional court’s decision is illegal, amoral and crushes the very essence of democracy, voting,” she said.

However, Social Democrat Prime Minister Marcel Ciolacu supported the move, calling it “the only correct solution”.

INVESTIGATING CAMPAIGN

Romania’s anti-organised crime prosecuting unit DIICOT said it was launching an investigation into Georgescu’s campaign after analysing the declassified documents.

“Prosecutors are looking at the commission of the crimes of illegal operations with computer devices or programmes, the attempted crime of disrupting the functioning of computer systems and the attempted crime of illegal access to a computer system,” it said in a statement.

Sunday’s run-off vote would have been the third consecutive ballot after the first presidential round and a Dec. 1 parliamentary election in which far-right parties gained a third of seats, though the ruling Social Democrats emerged as the largest grouping and hope to cobble together a pro-EU coalition government.

The parliamentary vote was unaffected by Friday’s court ruling.

In one of the declassified documents, Romania’s intelligence agency said Georgescu was massively promoted on social media platform TikTok through coordinated accounts, recommendation algorithms and paid promotion. Georgescu has declared zero funds spent in the campaign.

TikTok denies giving Georgescu special treatment, saying his account was labelled as a political account and treated like any other.

The intelligence service also said access data for official Romanian election websites was published on Russian cybercrime platforms. The access data was probably procured by targeting legitimate users or by exploiting the legitimate training server, the agency said.

It added that it had identified more than 85,000 cyberattacks that aimed to exploit system vulnerabilities.

Some experts predicted Georgescu would be barred from running again.

“It is extremely likely that the court will not allow Calin Georgescu to run again,” said Sergiu Miscoiu, a political science professor at Babes-Bolyai University. 

Earlier this year, the court banned ultra-nationalist party leader and European Parliament member Diana Sosoaca from running for president in a move that analysts said overstepped court powers.

© Reuters. A Jandarmeria member closes a gate to the Palace of Parliament, after the Romanian top court annulled the result of the first round of the presidential election, in Bucharest, Romania, December 6, 2024. REUTERS/Louisa Gouliamaki

“There will be street protests, people will become radicalised and depending on which candidate from the radical right remains in the race, people will rally around him,” said Miscoiu.

Romania’s hard-currency bonds rose following the ruling. Dollar-denominated issued enjoyed the biggest gains, with the 2048 bond rising 0.7 cents to be bid at 81.15 cents in the dollar, its strongest level since mid-November, Tradeweb data showed.

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Bank regulator gives BlackRock new deadline on bank stakes, Bloomberg reports

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(Reuters) – The Federal Deposit Insurance Corporation gave a fresh deadline of Feb. 10 to BlackRock (NYSE:) to resolve an issue regarding oversight into the firm’s stock in banks, Bloomberg News reported on Sunday, citing three people with knowledge of the matter.

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Israel to use withheld Palestinian tax income to pay electric co debt

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By Steven Scheer

JERUSALEM (Reuters) -Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA’s nearly 2 billion ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totalling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday’s cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels.

“The procedure was implemented after several anti-Israeli actions and included Norway’s unilateral recognition of a Palestinian state,” Smotrich told cabinet ministers.

“The PA’s debt to IEC resulted in high loans and interest rates, as well as damage to IEC’s credit, which were ultimately rolled over to the citizens of Israel.”

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account “a punitive measure linked to the government’s financial support for Gaza”.

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by the Islamist movement Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

“This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza,” the ministry said.

© Reuters. FILE PHOTO: An Israeli power distribution plant is seen in Hebron in the Israeli-occupied West Bank January 22, 2020. REUTERS/Mussa Qawasma/File Photo

It added it was working with international partners to secure the release of these funds as soon as possible.

($1 = 3.6763 shekels)

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Romanian protesters demand cancelled presidential election should go ahead

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BUCHAREST (Reuters) – Tens of thousands of Romanians angered by the cancellation of a presidential election marched through Bucharest on Sunday to demand that the ballot should go ahead and that outgoing centrist President Klaus Iohannis should resign.

In a move that polarised voters, Romania’s top court voided the presidential election on Dec. 6, two days before the second round.

The cancellation came after state documents showed frontrunner Calin Georgescu, a critic of NATO, had benefited from an unfair social media campaign likely to have been orchestrated by Russia, accusations Moscow has denied.

The court ordered that the election be re-run in its entirety. The pro-European coalition government has yet to approve a calendar for the election, although party leaders agreed to hold the two rounds on May 4 and May 18.

Iohannis, whose term expired on Dec. 21, will stay on until his successor is elected.

On Sunday, tens of thousands of protesters, including left-wingers and those angered by the way the way the election was cancelled, joined the protest organised by the opposition hard-right Alliance for Uniting Romanians (AUR), Romania’s second-largest party.

“We ask for a return to democracy by resuming the election with the second round,” AUR leader George Simion told reporters.

Organizers said 100,000 people were at the protest, but riot police along the march estimated the numbers at around 20,000. Protesters waved flags and shouted “Freedom” and “Bring back the second round.”

“Our right to vote was broken,” said Bogdan Danila, a 43-year-old truck driver. “In addition, Iohannis was in power for ten years and did nothing for the people, while parties betrayed us, they are all corrupt. We want something else.”

Some protesters carried portraits of Georgescu or Christian Orthodox icons while street vendors sold flags and vuvuzelas.

“Authorities must say why they cancelled the election, we want to see the evidence,” said Cornelia, 57, an economist wrapped in a Romanian flag who declined to give her last name.

© Reuters. Protesters wave Romanian national flags during a demonstration organised by Romania's far-right party Alliance for Uniting Romanians (AUR), urging the government to re-run a presidential election, in Bucharest, Romania, January 12, 2025. REUTERS/Andreea Campeanu

“At this rate we won’t be voting anymore, they will impose a leader like in the old days.”

It remains unclear whether Georgescu, who opposes Romanian support for Ukraine against Russia’s invasion, will be allowed to run for president again.

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