Radio România Internațional

Tag: benefits

  • August 24, 2024

    August 24, 2024

     

    CONVENTION Romanian Social Democrats convene today to elect their new leadership and to appoint their candidate in the forthcoming presidential election. The party leader, PM Marcel Ciolacu, seeks a new term in office, backed by a team of 21 candidates. Ciolacu has also announced he will be running for president of Romania, and is to be validated by the party congress today. Another topic on today’s agenda is the election campaign, and the Social Democratic spokesman, Lucian Romaşcanu, said the party is able to mobilise so that in December Romania may have a Social Democratic president. The party last won a presidential race in 2000. The first round of the election is scheduled on November 24, and the second on December 8th.

     

    UKRAINE The president of Romania, Klaus Iohannis, sent a letter to his Ukrainian counterpart, Volodymyr Zelenskyy, on Ukraine’s Independence Day. According to the Romanian presidency, Iohannis voiced his appreciation for the courage and resilience of the Ukrainian armed forces and civilians in defending their country’s independence, sovereignty and territorial integrity. He reiterated Bucharest’s firm commitment to provide constant, predictable and multidimensional support to Ukraine until its victory and further on in its reconstruction and European integration process. Iohannis emphasized that the security cooperation agreement signed by the 2 countries in July, on the sidelines of the NATO summit in Washington, proves that Romania’s support is not circumstantial, but long-standing, predictable and transparent. On Ukraine’s Independence Day, the Cotroceni Palace in Bucureşti, the headquarters of the Romanian presidency, will be lit tonight in Ukraine’s national colours.

     

    CROPS The European Union’s maize output will be smaller because of the drought and extreme heat in Romania, whose crops will be 30% lower. Estimates for the EU’s maize output were cut from 63 million tonnes, as reported last year, to 60-61 million tonnes, which is still above the level in 2022, when the drought affected the entire continent. Romania’s output is expected to drop from around 11 million tonnes last year to less than 8 million this autumn. In France, favourable humidity levels kept maize crops in a generally good condition, and the increase of the areas under crops should ensure higher output, namely over 14 million tonnes. In Poland, smaller areas under maize crops may lead to a 13% drop in output, while in Germany the crops are estimated to be 2% lower.

     

    PENSIONS The National Liberal Party, a junior member of the ruling coalition in Romania, proposes new amendments to the Pensions Law, so as to address the situation of pensioners whose benefits have been cut down in the latest revision. The Liberal leader and Senate speaker Nicolae Ciucă said the law should not have retrospective effect, and confirmed that the pensioners whose benefits have been cut down on paper will not benefit from cost-of-living adjustments for several years, although they will not be paid smaller amounts. According to official data, over 700,000 pensioners have received decisions by which their benefits have been cut down. These include workers in hazardous conditions, such as coal miners, engine drivers and nuclear industry personnel, who were able to stop working before the standard retirement age. Also at a disadvantage are people with disabilities, where the revised benefits are smaller by as much as 60%, for instance for the visually impaired. Hundreds of people are already asking for explanations from the authorities. They have until September 1 to appeal the decisions, and may even take the matter to court.

     

    SCHOOLS Students in secondary schools and high schools in Romania with final grades above 9.50 will receive merits scholarships, under the new School Regulations recently published in the Official Journal. Merit and resilience scholarships will be granted to at least 30% of the students in each class, including in professional and dual education units. Merit scholarships for 5th graders will be granted based on the average grades in the first two modules of the current school year. For 9th-graders, scholarships will be granted based on the high school admission results, which should be above 9.50. Scholarships in public secondary schools and high schools are financed by the education ministry, except for those in military high schools, which will be funded by the defence ministry. For the new academic year, the merit scholarship minimum amount is nearly EUR 90. This amount may be increased by school boards, depending on the budget earmarked by the local authorities. (AMP)

  • Romania in the EU: a net beneficiary

    Romania in the EU: a net beneficiary

     

    “Romania is a major chapter in the history of the European Union. It means a chance given together with the money from Brussels, for modern infrastructure and opportunities for all Romanians.”

     

    The statement was made by the finance minister Marcel Boloş on May 9th, Europe Day. Boloş voiced his confidence that the European funds are indeed changing lives. If only in financial terms, Romania’s EU membership has been a huge benefit, translating into funds that most likely the country could not have been able to receive from other sources.

     

    According to minister Boloş, for each euro contributed by Romania to the bloc’s budget, it has received 3 euros back. “Specifically, since its accession in 2007, Romania has received over EUR 95 billion, and it has contributed EUR 30 bln to the European Union budget. So the net financial balance points to benefits of EUR 65 bln,” the finance minister explained.

     

    According to him, due to these funds Romania managed in 2020 to have more than EUR 6 bln in EU funding invested in one year, and last year it has reached a record-high EUR 16 bln.

     

    On the other hand, Romania’s EU accession also meant integration in the single market, and the free movement of goods, people, services and capital, Mr. Boloş said. He argued that since the accession foreign investment has doubled, to approx. EUR 108 bln in 2022, and the fact that Romania has become attractive for EU companies meant not only investments, but also the development of sectors that had previously been neglected.

     

    For Romanians, the development entailed by the EU accession also meant higher salaries. Over the past 17 years, minimum wages have been increased 20 times, to a monthly gross EUR 660. Marcel Boloş also mentioned the dozens of schools and kindergartens built or revamped using EU funds, including in villages and small towns, and the 1,300 km of roads built or upgraded.

     

    The EU funding for the period 2014 – 2020 has helped over 95,000 Romanian companies to become more productive, thanks to investments in new equipment, automation, personnel training, and enhanced energy efficiency, the finance minister pointed out. Other projects funded from the EU budget include modernised regional airports, as well as thousands of km of utility networks.

     

    But what the EU accession has meant for Romania, even more important than access to resources and welfare, was embracing the values and principles governing the European bloc: the rule of law, freedom of expression, social inclusion, tolerance—the ingredients of a functioning democracy.

     

    And while self-styled sovereignsts and purported conservatives criticise and despise the European project, they know they have nothing sustainable to replace it with. (AMP)

  • Pensions and social assistance, reviewed in Parliament

    Pensions and social assistance, reviewed in Parliament


    A new pensions law will be discussed and voted on this week in the 2 chambers of Romanias Parliament. The document was recently passed by the government, after heated talks between the Liberals and the Social Democrats concerning the impact of the new legislation on the budget in the years to come.



    The bill provides for two pension increases, one on January 1 and the other one on September 1, next year.



    The law is stable and sustainable, based on respect for lifetime contributions and for work, and the new rules for calculating pension benefits will lead to cancelling current inequities, the labour minister Simona Bucura-Oprescu says:



    Simona Bucura-Oprescu: “The new calculation method will lead to major changes. First of all, there will no longer be inequities between Romanians who have done the same work, but retired at different moments. Secondly, we reduce the inequities between men and women. And thirdly, an important injustice that will be tackled is the one concerning the social minimum allowance.”



    The government would like the bill rushed through Parliament by November 20, and taking effect on January 1, 2024. The labour and social solidarity minister, Simona Bucura-Oprescu:



    Simona Bucura-Oprescu: “We want it finalised by November 20, so as to meet the deadline agreed on with the committee renegotiating the National Recovery and Resilience Plan; the renegotiation concerns, among other things, the 9.4% GDP impact parameter, which would have led to freezing Romanians pension benefits until 2070.”



    AUR party in opposition argues that the new legislation benefits people with big pensions. Marius Lulea, AUR senior vice-president:



    Marius Lulea: “Romania needs fair pensions, it needs to raise the benefits for the underprivileged categories, but the reform they are aiming at is not a reform that addresses inequities, but rather one that makes poor Romanians even poorer and the rich, the ones who already have privileges, even richer”.



    Another legislative package, on the reform of the social assistance system, adopted last week by the Cabinet, has also reached Parliament. The new law will no longer allow the operation of a social assistance centre before on-site inspections, and reduces the duration of provisional permits from one year to 3 months for centres with accommodation facilities and to 6 months for those without accommodation. The new legislation also introduces unannounced inspections, and in case violations are found, the permit will be suspended a lot more quickly.



    According to the labour ministry, fines are also increased up to 5 times, to EUR 20,000, in case of abuse. The new provisions come after serious irregularities were uncovered this year following inspections in senior centres in Ilfov County, near Bucharest. Subsequently, centres operating illegally and exploitation and abuse cases instead of specialised care were also identified in other parts of the country. (AMP)


  • November 1, 2023 UPDATE

    November 1, 2023 UPDATE

    TAXATION Some of the new fiscal measures aimed
    at reducing the budget deficit in Romania came into force on Wednesday. Under
    the law for which the Government has assumed responsibility in Parliament, personnel
    in the IT sector will pay an income tax for amounts exceeding EUR 2,000 per month. Local
    public institutions and authorities cannot use public funds for the organisation
    of community events, such as festivals, concerts, local competitions or other
    themed celebrations. Other fiscal measures, such as the introduction of new
    taxes for SMEs and the payment of health insurance contributions for the value
    of meal vouchers, will take effect on January 1, 2024. The measures run counter
    to many entrepreneurs’ interests. At a conference on this topic, organised by
    the Chamber of Commerce and Industry of Romania, the participants argued that in
    order to contain the budget deficit, top priority measures should include combating
    tax evasion, improving revenue collection and improving the work of the Tax
    Office. The President of the Chamber, Mihai Daraban, said that the government
    now has more options available before attacking the business community.




    PENSIONS In Romania, a draft pensions law has been posted for public
    review on the Labour Ministry’s website. The document was approved by the
    ruling coalition, and the government is seeking to have it endorsed under an
    emergency procedure by the end of this month. Under the new legislation, all
    pension benefits will be adjusted to the annual inflation rate, and will be
    re-calculated based on a new formula. No benefits will be lower than they are
    at present, the PM Marcel Ciolacu promised after a meeting of the ruling
    coalition. The minimum contribution period will be 15 years, and the maximum
    period 35 years, with bonuses given for workplace stability. According to the
    Prime Minister, pensions will be raised in 2 stages next year, on January 1 and
    on September 1, respectively.






    DONATION The first F16 fighter jets that the
    Netherlands will donate to Ukraine will arrive at a training center set up in
    Romania in two weeks, the Dutch Prime Minister Mark Rutte announced. He emphasised
    that the current situation in the Middle East should not and will not be able
    to distract the Netherlands from the fight of the Ukrainians against the
    Russian aggression. Denmark, Norway and Belgium have also announced that they
    will supply Ukraine with F16 aircraft.




    FOOTBALL The match between the national
    football teams of Israel and Romania, in the EURO 2024 Qualifying Group I, will
    take place in Hungary, the Romanian football federation announced. The game
    will be played on November 18, in Felcsut, approximately 50 kilometers from
    Budapest. UEFA stated that the presence of spectators will be
    allowed. Previously, the organisation had decided to suspend all matches scheduled
    in Israel, because of the armed conflict there. After the match against Israel,
    Romania is to meet Switzerland, on November 21, in Bucharest. After eight
    games, Romania is undefeated and ranks first in the group, with 16 points.
    Switzerland (15 points) and Israel (11 points) have played one match and two
    matches less, respectively. The two top-ranking teams go to the final
    tournament in Germany. Romania has not reached a European championship final
    tournament since 2016, and a World Cup since 1998.




    RADIO Radio Romania celebrated 95 years of uninterrupted broadcasting.
    In recognition of the critical role that Radio Romania has in Romania’s
    history, in December 2019 Parliament decided to establish November 1 as the
    National Radio Day. Over three million people listen to Radio Romania every
    day. Public institutions, NGOs, major personalities in Romania’s arts and
    cultural scene have congratulated Radio Romania on the occasion. PM Marcel Ciolacu pointed
    out that for 95 years, the public radio broadcaster has been a source of
    information and education for generations of listeners, while the Senate
    speaker Nicolae Ciucă said that Radio Romania has been promoting Romanian
    traditions and values for nearly a century and deserves recognition for its
    efforts in this respect. The president of the Romanian Academy Ioan-Aurel Pop
    also congratulated the Romanian Radio Broadcasting Corporation, which, he said,
    has been a witness to all the milestones in Romanian history. In Timişoara,
    this year’s European Capital of Culture, the Gaudeamus Radio Romania Book Fair takes
    place until November 5. On Friday, November 3, an anniversary concert of the
    National Radio Orchestra is scheduled, and between November 22 and 26, a new
    edition of the Gaudeamus Radio Romania Book Fair, the longest-running project
    of its kind in the country, will be organised at the Romexpo exhibition centre
    in Bucharest. (AMP)

  • New draft of the special pensions law, endorsed

    New draft of the special pensions law, endorsed

    The
    Social Democrats and the Liberals, holding a majority of seats in Romania’s
    Chamber of Deputies, managed to pass a new draft of the special pensions law, after
    adjusting it to meet the requirements of the Constitutional Court.


    The
    only provisions that were revised in the new draft concerned the pensions of
    magistrates, to bring the text in line with the requirements issued by the
    Constitutional Court judges, and compared to the draft endorsed by the Senate
    the Deputies only introduced technical amendments.


    The
    Social Democratic Party and the National Liberal Party basically rejected all
    the amendments tabled by the Opposition. USR, AUR and the Democratic Union of
    Ethnic Hungarians in Romania (UDMR) criticised the bill, on grounds that it
    actually preserves the high, even indecent level of pension benefits paid to
    magistrates and other categories of public sector employees, and that it
    continues to overlook the rule that pension benefits should depend on the
    amount of contributions paid by a beneficiary to the public pension fund, as it
    happens with regular pensioners.


    Moreover,
    Save Romania Union (USR) claims that non-permanent bonuses have been introduced
    in calculations, to benefit party cronies, while UDMR mentions that its
    proposal to introduce heavy taxes on all incomes in excess of the president’s salary
    was dismissed.


    The
    Social Democrats reply that the bill complies with both the Constitutional
    Court decisions and with the requirements coming from the European Union,
    enabling Romania to access the EUR 2.8 bln earmarked for this chapter in the
    National Recovery and Resilience Plan.


    In
    turn, the Liberals claim the Opposition’s amendments were against the decisions
    issued by the Constitutional Court. While they admit that special pensions remain
    in place, they emphasise that the new bill does take into account, to some
    extent, the contributions paid during one’s working period and introduces a
    taxation threshold, so that pension benefits are reduced.


    Under
    the new law endorsed by the Chamber of Deputies, the decision-making body in
    this respect, magistrates may retire at the age of 60, with pension benefits
    accounting for 80% of the average monthly incomes, including bonuses, received
    during the 4 years before retirement.


    The
    law also allows judges, prosecutors, assistant magistrates with the supreme
    court and the Constitutional Court, as well as other judicial personnel, to
    retire as of next year if they have at least 25-year length of service and are
    aged at least 47 years and 4 months. The retirement age is then set to increase
    by 4 months per year, until it reaches 60.


    Also,
    pension benefits cannot exceed the net income in the last month of work, and
    the tax rate is to increase gradually up to 20%. (AMP)

  • Deputies review special pensions bill

    Deputies review special pensions bill


    The Chamber of Deputies is currently working on a draft law to reform the pension system used primarily for the magistrate corps and for army and interior ministry personnel, and which is not based on contributions to pension funds during the employment, but on other, special criteria.



    This reform is a benchmark in the National Recovery and Resilience Plan. As long as the issue was not linked to financial considerations, Romanian politicians were reluctant to tackling this delicate topic, with the exception of Save Romania Union, in opposition, which has repeatedly lobbied for scrapping the special pensions.



    Before reaching the Chamber, the bill on the special pensions saw amendments from the ruling coalition parties-the Social Democratic Party, the National Liberal Party and the Democratic Union of Ethnic Hungarians in Romania.



    According to their authors, these amendments were designed to eliminate abuse and inequity, and the pension contribution principle will be, from now on, the primary factor in the entire public pension system. According to the new amendments, exemptions will be eliminated with respect to the standard retirement age, so that from now on diplomats and auxiliary staff in courts will also retire at the age of 65. The same principle will be applied gradually, until 2035, for military personnel as well.



    Also, until January 2034, the minimum relevant length of service requirement will be increased to 25 years for several categories of employees, including diplomats, Parliament clerks, and Court of Accounts staff.



    Under another amendment, certain categories of employees who previously had the same rights and obligations as magistrates or diplomatic staff will no longer benefit from special pensions.



    The calculation basis for special pensions is also being adjusted to the one used in the public system. Whereas so far special pension benefits were calculated based on the revenues during the last 12 months in office, from now on this period will be gradually raised to 300 months. No special pension will be higher than the salary received while in office.



    Also, a 30% tax rate will be levied on the special pension amount in excess of the current national gross average salary and in excess of the contribution principle.



    Another amendment cancels a mechanism used so far, under which magistrate pensions were raised proportionately with the increase of gross monthly allowances paid to active judges and prosecutors.



    “The retirement benefits paid to each citizen must reflect the importance of their lifes work and their contribution to the public system,” PM Nicolae Ciucă said. He also added that with the Pension Law and the Salary Law, Romania will have completed the reform package stipulated for this year in the National Recovery and Resilience Plan, thus ensuring sustainability and equity in the public salary and pension sector.



    Quite predictably, the Higher Council of Magistrates has criticised the draft law on special pensions, warning that a sudden increase of the retirement age for judges and prosecutors might force over 1,500 magistrates out of the system. (AMP)


  • Prospects for the pension system

    Prospects for the pension system

    The retirement age will gradually increase to 65 for all citizens, and no pensions in Romania
    will be higher than the corresponding salary, the
    labour minister Marius Budăi said. In addition, some of the special allowances
    will be scrapped.


    These are some of the criteria agreed on
    with the European Commission, for the benchmark in the National Recovery and
    Resilience Plan to be checked. The criteria discussed last week in Brussels
    with respect to the new pension law include, among other things, the gradual
    increase of the retirement age and the fact that pension benefits will be
    calculated based on the entire contribution period. Previously, a specific
    period of employment, with higher salaries, would be selected for calculating
    the retirement benefits. Another
    principle is the gradual increase in the professional seniority required for
    certain categories of employees.


    On the other hand, certain privileges for
    various professional categories, such as magistrates and parliamentary civil
    servants, will be scrapped.


    Marius Budăi: Certain categories of allowances and benefits
    paid under special laws will be scrapped, and this will be achieved by no
    longer allowing for seniority to be considered as a whole, but only in the relevant
    position for retirement. This will be the case for magistrates, for instance,
    where the requirement will be to have worked for at least 20 years as a
    magistrate, instead of the overall seniority. The same goes for certain
    categories of civil servants in parliament.


    Marius Budăi also said that an impact study
    conducted by the World Bank had been submitted to the European Commission ahead
    of his visit to Brussels, and that talks were based on that document.


    The labour minister did not mention a
    deadline for the implementation of these new provisions, but said that
    amendments are to be tabled by the ruling coalition this week to the Chamber of
    Deputies, which is currently discussing the new pension law.


    Up until now, the standard retirement age
    in Romania was 63 years for women and 65 for men. Mention should be made that Lithuania,
    Romania, and Bulgaria are last placed in Europe in terms of life expectancy,
    with around 74 years as against roughly 83 years in Norway, Iceland and Ireland. More than half of the deaths reported
    in Romania are related to hazardous health behaviours: Romanians drink lots of
    alcohol and smoke too much, have unhealthy eating habits and do not exercise
    enough, the report concluded. (AMP)

  • June 11, 2022

    June 11, 2022

    Summit. Romanian president Klaus Iohannis on Friday met his Latvian
    counterpart Egils Levits on the sidelines of the
    Bucharest Nine summit hosted by the Romanian capital. Talks looked at ways to
    consolidate bilateral cooperation, coordinating actions within the EU and
    various formats of regional cooperation, such as the upcoming meeting of the
    Three Seas Initiative hosted by Latvia on 20th June. Iohannis
    reiterated the importance of this organisation for Romania, with many strategic
    implications, from security to the economy, with emphasis on the transport and
    energy infrastructure. He recalled Romania’s decision to resume from 2023 its
    participation in the NATO air policing mission in the Baltic area, a move
    described by the Latvian president as a contribution to ensuring allied
    security on the NATO eastern flank. Speaking at the Bucharest Nine summit,
    president Iohannis said that NATO’s future strategic concept must reflect the
    new security parameters as accurately and realistically as possible, give
    priority to collective defence, define Russia as a threat and consolidate the Alliance
    at all levels. He also spoke about a strengthened NATO presence on the eastern
    flank, especially the Black Sea, which is most exposed to Russia’s threats.




    Extradition. Former Romanian tourism minister Elena Udrea will be
    extradited from Bulgaria following a ruling by a Sofia court saying there is no
    evidence that her human rights and liberties would be violated on her return to
    Romania as she had claimed. The Bulgarian court ruling also showed there is no
    question mark over the way in which Romanian prosecutors investigated her case,
    which Udrea said was politically motivated. She left the country on 7th
    April before the Supreme Court was about to issue a final sentence convicting
    her to 6 years in prison for bribe taking and abuse of office. She is on trial
    in two other cases.




    Benefits. The Romanian Postal Service has begun the distribution of
    cards for the payment of social vouchers worth around 50 euros, with payment to
    be made after all cards have been distributed, from 20th June, said
    prime minister Nicolae Ciucă on the government’s Facebook page. Three million
    people, including pensioners, persons with disabilities, families with low
    incomes and homeless people will benefit from these vouchers once every two
    months, which they can use to buy food. The total value is some 626 million
    euros and will be granted in four tranches until the end of the year.




    Ukraine. The European Commission president
    Ursula von der Leyen arrived in Kyiv to meet president Volodymyr
    Zelensky and discuss Ukraine’s request to join the European Union and the
    country’s rebuilding after the war. On the ground,
    the situation has become dramatic in the Azov Sea port of Mariupol, where over
    20,000 inhabitants were killed and the lack of hygienic conditions and food has
    increased the risk of epidemics, especially dysentery and cholera. The city’s
    mayor called on the United Nations and the Red Cross to create a humanitarian corridor
    to evacuate the civilians. The German health minister, who visited Ukraine on
    Friday, also warned of the risk of a cholera epidemic in the Ukrainian
    territories occupied by Russia. He said Germany would boost medical aid for the
    wounded. The fighting continues in the east, with Ukrainian officials requesting
    more help from the West, including faster deliveries of weapons to halt the
    advance of the better equipped Russian forces.




    Visit.
    French president Emmanuel Macron is travelling to Bucharest on Tuesday to
    express France’s solidarity with its European allies most exposed to the war in
    Ukraine, said the French president’s office. He is expected to visit the French
    troops stationed in Cincu, in the centre. The NATO Battle
    Group Forward Presence was created in May in Romania. The group is led by
    France, which also has an air defence component in Romania. This is the third
    visit to Romania by the French president, and the first since winning his
    second term on 24th April. On Wednesday, he will travel to the
    neighbouring Republic of Moldova to reiterate support for this country affected
    by the war in Ukraine. Macron has tried to maintain a dialogue with Vladimir
    Putin since Russia’s invasion of Ukraine in February, but his position has come
    under repeated criticism from some European partners, who see his engagement
    with Putin as undermining efforts to bring the Russian president to the negotiation
    table.




    Schengen. It’s very important to have a realistic prospect of a
    timetable for Romania’s joining the Schengen area, said the country’s interior
    minister Lucian Bode, who attended on Friday the EU’s Justice and Home Affairs
    Council in Luxembourg. He said Romania made considerable efforts and
    significant investments to this end. Referring to Ukraine, he highlighted the
    progress made by the European Commission in the implementation of its 10-point
    plan to ensure stronger European coordination of its response to displacement
    from Ukraine. The Romanian official said it was essential for the Republic of
    Moldova to continue to receive support to be able to cope with the challenges
    it is facing. (CM)

  • New social measures

    New social measures


    3.3 million low-income
    pensioners will benefit from state aid to cope with recent price
    hikes, according to a government decision. Next month, people with
    pensions below 2,000 lei (the equivalent of 400 euros), will receive
    benefits in the form of a single payment of around 140 euros. State
    secretary Cristian Vasilcoiu says
    the measure will account for 2% of the total pension budget for this
    year. He explained:







    The government has adopted
    an emergency order providing for a single payment of 700 lei in July
    for all pensioners with incomes below 2,000 lei, benefiting both
    public sector pensioners and pensioners with state army pensions,
    veterans, survivors, spouses, people who were subject to ethnic and
    political persecution and people who carried out forced labour during
    the communist regime.







    The government is also
    considering increasing the value of meal vouchers, a decision which
    requires, however, the political backing of the ruling coalition
    formed by the Social Democratic Party, the National Liberal Party and
    the Democratic Union of Ethnic Hungarians.







    The Save Romania Union in
    opposition says the government took too long to take these measures
    and that it’s too little anyway to cover the needs of low-income
    pensioners. The Union calls for a reduction in
    public spending, granting aid to the most vulnerable categories
    and VAT cuts for
    energy. The coordinator of the Save Romania Union’s department for
    public policies,
    Cristian Ghinea:







    It’s an insult for
    people, given the
    inflation rate, the increase in all prices, for
    the government to be so slow to act and offer such ridiculously
    small amounts,
    and they’re not even
    guaranteed. We are again calling for a reduction in
    public spending and social measures targeted to the people who need
    them, as well as effective measures to bring down the prices. The
    best way to cut the energy price is to lower the VAT, something we
    proposed as early as last autumn, because most of these increases go
    to the state in the form of tax and the state can simply let the
    people have the money instead so that we are all a little less
    affected by the rise in energy prices.


    Other social and economic
    measures are also coming into force on 1st
    July, such as the postponement for nine months of bank rates for
    citizens and companies in financial difficulty as a result of recent
    crises. On the other hand, commentators are wondering how long will
    Romania be able to cope under the pressure of the budget deficit and
    large government debt. The government has promised, however, that it
    will take measures to ensure fiscal consolidation and compliance with
    its budget deficit commitments. (CM)

  • New social measures

    New social measures


    3.3 million low-income
    pensioners will benefit from state aid to cope with recent price
    hikes, according to a government decision. Next month, people with
    pensions below 2,000 lei (the equivalent of 400 euros), will receive
    benefits in the form of a single payment of around 140 euros. State
    secretary Cristian Vasilcoiu says
    the measure will account for 2% of the total pension budget for this
    year. He explained:







    The government has adopted
    an emergency order providing for a single payment of 700 lei in July
    for all pensioners with incomes below 2,000 lei, benefiting both
    public sector pensioners and pensioners with state army pensions,
    veterans, survivors, spouses, people who were subject to ethnic and
    political persecution and people who carried out forced labour during
    the communist regime.







    The government is also
    considering increasing the value of meal vouchers, a decision which
    requires, however, the political backing of the ruling coalition
    formed by the Social Democratic Party, the National Liberal Party and
    the Democratic Union of Ethnic Hungarians.







    The Save Romania Union in
    opposition says the government took too long to take these measures
    and that it’s too little anyway to cover the needs of low-income
    pensioners. The Union calls for a reduction in
    public spending, granting aid to the most vulnerable categories
    and VAT cuts for
    energy. The coordinator of the Save Romania Union’s department for
    public policies,
    Cristian Ghinea:







    It’s an insult for
    people, given the
    inflation rate, the increase in all prices, for
    the government to be so slow to act and offer such ridiculously
    small amounts,
    and they’re not even
    guaranteed. We are again calling for a reduction in
    public spending and social measures targeted to the people who need
    them, as well as effective measures to bring down the prices. The
    best way to cut the energy price is to lower the VAT, something we
    proposed as early as last autumn, because most of these increases go
    to the state in the form of tax and the state can simply let the
    people have the money instead so that we are all a little less
    affected by the rise in energy prices.


    Other social and economic
    measures are also coming into force on 1st
    July, such as the postponement for nine months of bank rates for
    citizens and companies in financial difficulty as a result of recent
    crises. On the other hand, commentators are wondering how long will
    Romania be able to cope under the pressure of the budget deficit and
    large government debt. The government has promised, however, that it
    will take measures to ensure fiscal consolidation and compliance with
    its budget deficit commitments. (CM)

  • December 15, 2021 UPDATE

    December 15, 2021 UPDATE

    COVID-19. 829
    new Covid-19 cases were reported in Romania on Wednesday, as well as 88
    fatalities, including 17 dating from an earlier date. Since the vaccine rollout
    kicked off in Romania a year ago roughly 7.6 million people have been fully
    vaccinated. Since the start of the pandemic, Romania has reported 1.8 million
    cases and almost 58,000 deaths. Amid the anti-vaccine psychosis fuelled by part
    of the media, and some politicians and public figures, Romania has the second
    lowest vaccination rate in the European Union. Health minister Alexandru Rafila said an emergency order
    was approved on a form to be filled in when entering Romania, which must be
    done 24 hours prior to this. He said the document was not intended to prevent
    travel, but to allow for the swift tracing of the contacts of a person infected
    with Covid. The measures comes into effect from 20th December and is
    already in use other 18 EU member states.




    Measures. The government in Bucharest adopted series of
    social measures to benefit children, pensioners and persons with disabilities. These
    include an emergency order providing for an increase in child benefits from 1st
    January to reach 50 euros for between the
    ages of 2 and 18 and 110 euros for children up to two years old and children
    with disabilities up to 18 years old. Pensions are also about to grow, with the
    lowest pension to reach around 200 euros. These measures will be taken into account
    when creating next year’s budget, with a bill in this respect published for
    public consultation on Friday and approved by the government next Monday,
    before being adopted by Parliament by 23rd December.


    Resignation. The minister for research Florin
    Roman resigned from the cabinet after he was accused of plagiarism in his
    master’s degree paper. Both the centre-right Save Romania Union and the
    ultranationalist Alliance for the Union of Romanians, in opposition, earlier
    called for his resignation or dismissal. Florin Roman tarnishes the position
    of minister for research. He tarnishes the idea of meritocracy and competence
    for any young person who worked hard in school and for any decent citizen who never
    cheated in school. Out with him!, the Save Romania Union Dacian Cioloş posted on his Facebook page. The co-president
    of the Alliance for the Union of Romanian George Simion said the minister’s
    omissions and lies in his CV do not recommend him for the job of minister for
    research and digitalisation. Roman is the first minister to resign from the
    government formed by the Social Democratic Party, the National Liberal Union
    and the Democratic Union of Ethnic Hungarians in Romania and which came to
    power less than a month ago.




    Summit. Romania’s
    president Klaus Iohannis is attending the sixth Eastern Partnership summit
    under way in Brussels and which brings together EU heads of state and
    government and the leaders of the five ex-Soviet partner countries, the
    Republic of Moldova, Ukraine, Georgia, Armenia and Azerbaijan. Iohannis said he
    would call on the European Union to adopt a more active and frequent
    involvement in solving conflicts that affect its partners and to give a chance
    to those who wish to do more, giving the Republic of Moldova as an example.
    Developing a sustainable and integrated economy, digital transformation and the
    creation of a fair society are some of the long-term goals of the policy
    regarding the Eastern Partnership and are accompanied by an ambitious regional
    plan of economic investment worth 2.3 billion euros. In another move, the
    European Union announced plans to grant the Republic of Moldova non-reimbursable
    aid worth 60 million euros, which will reach the country by the end of the
    year. The European Council will meet on Thursday, with talks expected to tackle
    the Covid-19 pandemic, energy prices, migration, EU security and defence and the
    situation on the bloc’s borders with Ukraine and Belarus.




    Revolution. Romania
    celebrated on Wednesday 32 years the first events that led to the anti-communist revolution of 1989. Dozens
    of people gathered on 15th December 1989 in Timişoara, in the west
    of Romania, to defend Reformed pastor Laszlo Tokes from being evicted by
    Romania’s political police, the Securitate. The protests grew in intensity on
    December 16 and the communist regime fell a couple of days later. Events like
    religious services, exhibitions, concerts and performances are to be carried
    out all over the country over this period in the memory of those killed in the
    anti-communist uprising. (CM)

  • Constitutional Court slams bill taxing special pensions

    Constitutional Court slams bill taxing special pensions

    As the name suggests, Romanias special pensions are set under special laws. They were originally granted to magistrates and force structures. Later on, lawmakers decided that there are more eligible recipients, including MPs themselves, diplomats and aviation staff.



    Unlike regular pension benefits, special pensions are not—or not only—based on lifetime contributions to pension funds. They are funded both from the social security budget, and from the state budget.




    This, as well as their often inflated amounts, in the thousands of euros, make special pensions, or rather their beneficiaries, the target of criticism from regular citizens, whose pensions are based on active lifetime contributions and average at around 300 euros per month.




    Politicians listened to the people and this summer drafted a bill levying 85% taxes on the special pensions in excess of 1,400 euros, including those received by magistrates, the military and the police.




    The bill did not eliminate the concept of special pensions, but rather reduced the benefits paid as such. But the Constitutional Court dismissed the law, ruling that it was unconstitutional as a whole.




    The bill adopted by Parliament in June had been challenged by the Ombudsman and the by the countrys highest court, according to which the draft legislation came against the principle of fiscal equity. The High Court and the Ombudsman claimed the special pensions set by special laws are subject to double taxation, which comes against the principle of non-discrimination and fair tax burdens, while also breaching the independence of magistrates and the principle of legislative predictability.




    The Constitutional Court, which had deferred a ruling on the case several times, is yet to make public its reasons for dismissing the bill.




    A number of Constitutional Court rulings of late have fueled speculations that, in its current configuration, the Court is politically biased, ruling in favour of the Left. With the special pensions bill, the Court has an additional moral dilemma, noticed by everyone: constitutional judges are themselves receiving such pension benefits.




    And the saga of this law includes another relevant episode: in the last plenary sitting of the Chamber of Deputies, before the elections, all MPs from the Save Romania Union resigned in order to not be eligible for special pensions. So did 6 Social Democrats, including the party president Marcel Ciolacu. While the decision of Save Romania Union is credible, as the party had constantly lobbied against special pensions, the Social Democrats are the champions of legislation that favours MPs, giving their opponents reason to claim the move was populist and driven by electoral goals. (tr. A.M. Popescu)

  • Child allowances to double

    Child allowances to double

    The government is obliged to double child allowances for
    around 4 million children following a ruling by the Constitutional Court which
    rejected as unfounded the government’s argument against this move. The Court
    ruled that a law passed by Parliament to reject a gradual increase in child
    allowances as proposed by the government is constitutional. As a result, the
    initial law will remain in force, a law that was proposed by the Social
    Democratic Party in opposition in December last year and which provided for the
    doubling of child allowances from 150 lei to 300 lei, which is about 60 euros,
    and from 300 to 600 lei for children with disabilities. The measure was to be
    applied last January, but the government argued the state budget could not sustain
    it and adopted an emergency order to postpone it by August.




    After hearing the Court’s ruling, prime minister
    Ludovic Orban said doubling child allowances at this particular moment would
    lead to an increase in the budget deficit and that they should be doubled instead
    over five stages as proposed by the government. Ludovic Orban:




    Doubling child allowances requires additional budget
    funds of some 7 billion lei [around 1.44 billion euros], which would lead to an
    increase in the budget deficit of 0.6%. We’ve been in this situation before. The
    National Liberal Party will double child allowances, but will do so over five
    stages, with the final stage on 1st July 2022. Increasing child
    allowances is a priority for the National Liberal Party, but this increase must
    take into account the economic situation and the budget resources available.




    Liberal senator Alina Gorghiu says the government will
    consider its options when the Constitutional Court publishes its justification.
    The leader of the Social Democratic Party Marcel Ciolacu says, however, that
    there are enough budget funds to double child allowances, while his fellow party
    member and interim Senate speaker Robert Cazanciuc accused the government of
    incompetence. The president of the Alliance of Liberals and Democrats Călin
    Popescu-Tăriceanu said the government is obliged to double child allowances and
    increase pensions by 40% and accused it of trying to prevent these measures
    from coming into effect.




    The latest Constitutional Court ruling comes after
    Parliament this week moved to increase pensions by 40% instead of 14% as decided
    by the government. According to the government’s estimates, the decision would
    cost the budget an additional 2 to 3 billion euros this year and 12 to 14
    billion euros next year. Romania’s public debt has already gone up considerably,
    rising by some 15.4 billion euros in the first seven months of the year alone. (CM)

  • July 30, 2020

    July 30, 2020

    COVID-19 President Klaus Iohannis has a new meeting today with the interior minister Marcel Vela and with the head of the Department for Emergencies Raed Arafat, to assess the situation and the causes of the steady growth in the number of COVID-19 cases. New containment measures were included by the Government on Wednesday night in an executive order concerning the state of alert. Authorities have decided that in counties or localities with large numbers of COVID-19 cases, the opening hours of outdoor bars and restaurants may be restricted. Also, in crowded areas where social distancing cannot be ensured, protection masks may become compulsory even outdoors. As of Thursday, face masks are compulsory in crowded outdoor areas in several counties in Romania where the number of coronavirus infections has risen sharply in recent weeks. The measure is adopted by an increasing number of counties, after more than a week with over 1,000 new COVID-19 cases per day. On Thursday a new record-high number of new cases was reported, 1,356, with the total so far in Romania nearing 50,000, and the death toll standing at 2,304. Nearly 26,600 patients have recovered.



    CHILDREN The labour minister Violeta Alexandru presented in the Cabinet meeting a bill providing for the gradual doubling of child benefits, to roughly 60 euros per month for children aged 2 to 18 and to 120 euros per month for children up to 2 years of age and for children with disabilities. The minister explained the increase will be gradual, up until 2022. In a first stage, in September, child benefits will be raised by 20%. The Government intends to pass the bill in Fridays Cabinet meeting. Parliament voted to double child benefits, at the proposal of the Social Democratic Party in opposition, but the implementation of the measure was postponed because the coronavirus crisis has put pressure on the state budget.



    YOUTH 56% of Romanian youth lost their confidence and motivation, according to a survey, Insights PulseZ, designed to identify the response and behaviour of young people during the 2-month state of emergency introduced in March over the COVID-19 pandemic. Moreover, the survey revealed, the sudden suspension of day to day activities disrupted youngsters emotional balance. More than half of them were affected by the lack of face-to-face meetings, and nearly 35% admitted to having experienced tiredness and mood swings. The survey also shows that 44% of Romanian youth spent over 8 hours a day online. 33% of them attended online classes, and an equal number watched series and films.



    ELECTION Over 2,000 Romanian citizens living abroad have registered on an electronic platform, votstrainatate.ro, to vote in this years parliamentary elections. Over 1,390 of them chose to vote by mail, and nearly 620 registered to vote in polling stations. The Permanent Electoral Authority in Bucharest urges Romanian nationals living abroad to choose voting by mail as a safe and comfortable means to cast their ballots, without queuing, traveling, costs or risks, particularly in the context of the coronavirus pandemic. Information on the registration procedure is available at votstrainatate.ro, and questions can be sent by email at contact@votstrainatate.ro. The Permanent Electoral Authority says citizens may enrol as voters abroad no later than 15 days prior to the election date.



    UNTOLD The 6th edition of the largest electronic music festival in Romania, Untold, begins today and will be held online for 4 days, amid restrictions and social distancing rules triggered by the coronavirus pandemic. The organisers have announced exceptional guests and surprises. In February, Untold announced its first participants this year, including David Guetta, Martin Garrix and Dimitri Vegas & Like Mike. Pussycat Dolls, Iggy Azalea and The Script also confirmed their participation, while Paul Kalkbrenner, Charlotte de Witte and Richie Hawtin make up the techno section of the festival. Over 80,000 fans have enrolled to take part in this online edition of the festival. (translated by: Ana-Maria Popescu)

  • July 28, 2020

    July 28, 2020

    PARLIAMENT The speakers of the Senate and Chamber of Deputies, Robert Cazanciuc and Marcel Ciolacu, respectively, have sent a letter to PM Ludovic Orban asking him to present Parliament with a report on the measures considered by the Government in order to contain the spread of the novel coronavirus until the local elections due on September 27 and the start of the new school year on September 14. Government officials said it is still too early to discuss the postponement of the local elections. As for the new school year, the authorities are looking at several scenarios, including the rotation of students between face-to-face and online classes.



    COVID-19 In Romania, the number of new COVID-19 cases has been steadily over 1,000 per day for a week. The total number of cases is over 47,000, with 1,151 new cases reported in the last 24 hours, some 26,000 patients recovered and a total death toll of 2,239. Out of around 5,500 Romanian nationals who have tested positive abroad, 123 died. Local lockdown has been introduced in the past few days in several localities in Romania, and authorities are considering additional measures to contain the disease. Meanwhile, a growing number of countries are introducing restrictions for Romanian citizens. The Republic of Moldova, Cyprus, Finland and Lithuania have closed their borders to Romanian tourists. Travellers arriving in Greece from Romania are required to produce a negative Covid-19 test conducted no more than 72 hours prior. The measure is in place until August 4. Other countries, including Italy, the UK, Ireland, Norway, Estonia and Latvia have introduced 14-day isolation requirements for travellers from Romania, the Netherlands recommends self-isolation, while Hungary, Belgium and France recommend testing.



    PANDEMIC In spite of national and global efforts, the novel coronavirus continues to spread at unprecedented rates around the world. Many states are closing their borders to citizens from high-risk areas, or are introducing quarantine and testing requirements, but a coordinated strategy is yet to be implemented. While recognising the difficulty of a global strategy, the World Health Organisation says nonetheless that travel restrictions will not be enough to contain the spread of the virus. The WHO director general says the coronavirus pandemic is by far the most severe global health emergency ever experienced. According to worldometers.info, over 16.5 million cases have been confirmed worldwide, and the death toll exceeds 650,000. The worst hit is the USA, which has reported so far over 4.4 million cases and some 150,000 deaths. Europe remains the most affected continent by number of deaths (over 200,000, of which 45,000 in the UK, 35,000 in Italy, 30,000 in France and 28,000 in Spain). Meanwhile, European tourism continues to suffer, with the absence of tourists triggering chain reactions that impact restaurants, cultural sites, retail and the leisure industry.



    UNIONS Romanias PM Ludovic Orban and health minister Nelu Tătaru have today met with representatives of Sanitas and Solidaritatea Sanitară trade union federations, to discuss the problems facing healthcare staff during the pandemic. Unionists want better working conditions, shorter working hours and longer paid leaves, especially in intensive care wards, which experience staff shortages. The PM explained that some of the problems can be solved by posting healthcare staff from other hospitals, and said one of the issues discussed with the unions was that of bonuses to be paid to certain categories of healthcare personnel.



    CHILDREN The finance minister Florin Cîțu announced an increase of child benefits by around 15%, with a further increase scheduled as of January 1. Florin Cîțu emphasised that the increases will be operated without financial assistance from institutions like the IMF. In other news, budget execution figures 6 months into the year may be released today. One month ago the finance minister said Romanias budget deficit this year would reach 6.7% of GDP, with a negative 2.2% economic growth rate at year end.


    (translated by: Ana-Maria Popescu)