Tag: 2018 draft budget

  • December 21, 2017

    December 21, 2017

    DECEMBER 1989 – 28 years since the December 1989 anti-Communist
    Revolution, Romania’s president Klaus Iohannis has conveyed a message today,
    saying that in 1989, Romanians called for the fall of Communism, an urge that
    can still be heard today. This should be a warning to politicians, who have
    proven lately they are not willing to leave the past and its bad habits behind.
    Upholding the ideals of the anti-Communist Revolution means defending the rule
    of law, freedom and democracy and respect for citizens, wrote the president on
    a social network, stressing that the investigation of the Revolution Case File
    must be completed and the crimes and abuses perpetrated in 1989 must be
    punished. After four days of protests, which started in Timisoara on December
    16th 1989, during which dozens of dead and wounded were reported,
    the army joined the population and revolutionaries developed the first
    democratic platform. Started as a protest staged by citizens of Timisoara
    against an abusive measure taken by local officials, the revolution spread
    rapidly across the country, culminating on December 22nd with the
    presidential couple’s attempt to flee. More than 1,000 people died and some
    3,400 were wounded between the 16th and the 25th of
    December 1989. Romania was the only country in the Eastern Bloc where the
    regime was changed violently and its communist leaders were executed by firing
    squad.






    JUSTICE
    LAWS – The Romanian Senate, the decision making body in this matter, has today
    adopted the bill modifying the Law on the organisation and functioning of the
    Superior Council of Magistracy. This was the last in the justice law package
    that the Senators had to rule on, after the adoption of the ones on judicial
    organisation and the status of magistrates. The changes that the ruling
    coalition, formed by the Social Democratic Party and the Alliance of Liberals
    and Democrats, has brought to these laws have been vehemently criticized by the
    right-wing opposition and a large part of civil society. Moreover, hundreds of
    magistrates have protested in Bucharest and in other cities across the country
    against the way in which these changes have been brought, saying the process
    has lacked transparency.






    BUDGET
    BILL – The Romanian Parliament continues to debate today the 2018 state budget
    bill, which establishes the amounts allocated to ministries and the main credit
    authorizing bodies. The budgets of some of the most important institutions have
    been maintained as they were in the draft proposed by the government, as the
    amendments filed by the opposition were not voted by the majority. The budget
    was built on an estimated 5.5% economic growth rate, an average exchange rate
    of 4.55 lei for one Euro and a monthly salary of 565 Euro, as well as an
    estimated budget deficit standing at 2.97%
    of the GDP. The priority fields in 2018 are health, education and
    infrastructure. The right-wing parliamentary opposition has criticized
    Government’s measures, saying the structure of the budget is dangerous and will
    trigger an increase in the public debt.








    POLISH LAWS – The Polish president
    Andrzej Duda has promulgated two controversial laws, which give the government
    more power over the judiciary, right after the European Commission decided to
    activate art.7 of the EU Treaty, saying that the laws represent a high risk of
    violation of the rule of law. Brussels’s decision may leave Poland without the
    right to vote in the European Council. The first-vice-president of the European
    Commission Frans Timmermans has stated that it was the only option and Poland has
    three months to implement the recommendations issued by the Commission, and
    then the EU leaders would have to decide on penalty measures. France and
    Germany have announced they support the Commission’s decision, but Hungary has
    announced it might use its veto power to block what they termed an abusive
    sanction against a democratically elected government.




    CATALONIA – Five and a half million
    Catalans are called to the polls today to elect the members of the regional
    parliament. Currently, the region of Catalonia, one of the richest in Spain, is
    governed by the central government in Madrid, after the regional executive
    headed by Carles Puigdemont held on October 1st an illegal referendum that
    subsequently led to a unilateral declaration of independence. Today’s favorites
    are the Republican Left of Catalonia, whose leader, Oriol Junqueras, is in
    prison, for having organized the referendum, and Ciudadanos, a liberal party
    which supports Spain’s unity, whose main candidate is Ines Arrimadas. The
    candidate of the coalition Together for Catalonia, Carles Puigdemont, who is
    currently in Belgium, is wanted by the Spanish judiciary for rebellion and
    embezzlement. If he gets to Spain, he will be arrested right away.



  • The 2018 budget under Parliament debate

    The 2018 budget under Parliament debate

    Debates on the 2018 state budget and social security bill have reached the final stage, and Romanian MPs are supposed to endorse it on December 21st at the latest. The bill reached parliament last week, and since then parliamentarians have had the opportunity to propose amendments, which have been centralized by chief authorizing officers and are to be discussed in the specialized committees.



    Thousands of amendments have been proposed since the bill reached parliament, including the allocation of resources to continue the works on the Bucharest ring-road, consolidating the buildings at risk of being destroyed by earthquakes, carrying on works on the metro, programs and actions for the Diaspora and the building of schools and kindergartens. Based on an estimated 5.5% economic growth rate, the 2018 budget includes more funds for the fields that need support. According to Prime Minister Mihai Tudose, health, education and infrastructure are next years priorities:



    The new budget provides for a 17% increase in funds for healthcare, 16% for education and 42% more money for investments, as compared to 2017.



    According to the bill approved last week by the Government, agriculture is another field that will benefit from more money. According to the main party in the ruling coalition, the Social Democratic Party, next years budget is fairer and more balanced. The Social Democrats say that the situation might be even better than estimated, because hopes are that economic growth in 2018 will exceed expectations. The opposition, however, sees things differently. Deputy Eugen Tomac, member of the Peoples Movement Party has stated that implementing this budget will be a very big challenge for the governing coalition:



    Their calculations are wrong. And they are wrong because there are already hundreds of municipalities across the country that do not have money for salaries.



    According to the opposition, the focus should be on channeling resources towards development. According to the bill approved by the government, personnel expenses will go up by 11.6 billion lei (some €2.5 billion) as compared to this year, following the implementation of the new salary law. Also, investment expenses will increase by 13 billion lei (some €2.8 billion). The final form of the budget will be decided in a plenary session of parliament, and debates are to start on December 18th. (Translated by M. Ignatescu)