Radio România Internațional

Tag: bills

  • Security decisions in Romania’s Parliament

    Security decisions in Romania’s Parliament

     

    The Chamber of Deputies in Bucharest, as the first party to be notified, endorsed a draft law that allows drones that illegally enter Romanian airspace to be shot down. More precisely, drones that enter national airspace illegally will be destroyed or disabled if Romanian or NATO military forces are unable to control them.

     

    Another bill, which regulates the way military missions in Romania are carried out in peacetime, was also passed by the Chamber of Deputies. One of the measures allows the authority of specific structures in the Romanian Army to be transferred for a limited period to a commander of the Allied military forces participating in these missions.

     

    The bills were criticised by the populist-sovereigntist opposition comprising S.O.S. Romania, the Young People’s Party (POT) and AUR. The AUR deputy, Ramona Bruynseels:

     

    Ramona Bruynseels: “NATO is not an instrument for ceding sovereignty. We do not know who will be in government tomorrow. Do you want us to expose ourselves to the risk that, at some point, someone, anyone, will come and use this instrument to introduce repressive measures against Romanian civilians?”

     

    The Social Democrat Daniel Suciu retorted:

     

    Daniel Suciu: “What do you want, esteemed colleagues from the opposition who talk about a transfer of sovereignty and it is not true, it is not about this… what do you want? To have drones fall on our schools? To have drones fall on our cities and then shrug your shoulders that Parliament did not do its job?”

     

    Along with the Social Democratic Deputies, their ruling coalition partners, the National Liberal Party and the Democratic Union of Ethnic Hungarians in Romania, as well as the USR in opposition, voted in favour of the draft laws.

     

    After the documents regarding the control of the national airspace, and the management of military missions on Romanian territory in peacetime were endorsed, the defence ministry made a number of clarifications, amid “an extensive campaign of disinformation and fake news massively distributed by a number of users of various digital platforms in Romania” triggered by the 2 bills.

     

    The defence ministry says that all the procedural steps required for these bills have been taken, including public reviews. The same source also says that attempts to depict concrete measures to strengthen Romania’s and NATO’s defence capacity as acts of national treason are part of a pattern of disinformation campaigns carried out in the public space in Romania, “including by state actors with an agenda contrary to Romania’s sovereignty and against NATO, through which an attempt is made to induce panic and to weaken confidence in the capacity of national security institutions to fulfil their constitutional missions.”

     

    “Claims of unconstitutionality or betrayal of Romania’s interests are false and totally unjustified,” the defence ministry emphasizes, in a press release which explains in detail the content of the two laws. (AMP)

  • January 18, 2024 UPDATE

    January 18, 2024 UPDATE

    LAWS The government
    in Bucharest on Thursday endorsed a series of bills to implement the solutions
    agreed upon after the talks it had with transporters and farmers following the
    latter’s protests of late. Among them there are amendments to the ways of
    weighing products at the border checkpoints. Aspects regarding the periodical
    technical checking of the vehicles registered in Romania and the professional
    certification of the specialized personnel in the field of road transportation
    have also been clarified. Under the new amendments, the prices of the mandatory
    insurance for trucks will go down. In another development, the government is
    granting a direct support of 100 Euros per hectare to the producers of
    vegetables in order to offset the losses they incurred due to the war in
    Ukraine. Farmers and transporters of Romania carried on their protests on
    Thursday for the ninth day in a row. They took to the streets of Afumati, a
    commune close to Bucharest, and to the checkpoints at the border with Ukraine. Also
    on Thursday, the mayor of Bucharest, Nicusor Dan, announced the local
    authorities approved a fresh protest on Sunday, Monday and Tuesday in
    Bucharest. Five thousand people, 100 tractors and 100 tractor heads are to
    participate in the aforementioned protest. Another professional category who is protesting against the
    government’s austerity measures these days is the family physicians and the
    medical personnel in the outpatient care units.




    RATE According
    to data released by the EU statistical office, EUROSTAT, Romania was among the
    EU countries with the highest inflation rate, in December last year. The average
    inflation rate at EU level stood at 3.4 % in December higher than a month
    before, when it reached 3.1%. The EU members with the highest inflation rates
    were the Czech Republic with 7.6%, Romania with 7% and Slovakia with 6.6%. The
    lowest inflation rates were reported in Denmark, 0.4%, Italy and Belgium, each
    with 0.5%. As compared to November 2023, the annual inflation rate went down in
    15 member states, was stable in Spain and rose in 11 countries.




    DEFICIT Romania’s
    budget deficit this year will be around 5% of the GDP, Finance Minister Marcel
    Bolos has announced. He said that Romania is among the countries with significant
    deficits, and that ten countries, including Poland and France will enter the excessive
    deficit procedure. According to Bolos, the government in Bucharest has to carry
    on its fiscal-budgetary measures, projects related to digitization, or aimed at
    implementing an improved collection of taxes and fighting tax evasion.




    EU The
    European Commission has announced it kicked off a detailed research into the
    legislation of Ukraine and the Republic of Moldova, the first step in the process
    of the two countries’ EU accession. The Commission is concurrently assessing
    the way in which, Ukraine and the Republic of Moldova have already applied what
    the EU has requested as a preliminary condition. The Community Executive is
    working on a draft of the negotiation framework with the two states, a document
    to be submitted to the Council for approval, which will also mark the formal
    opening of the accession negotiations. The decision to launch this process was made
    by the European Council in December 2023.


    (bill)

  • Education bills trigger disagreement

    Education bills trigger disagreement

    In a country with alarming rates of functional illiteracy and
    disquieting school drop-out figures, politicians agree that something needs to
    be changed. The Social Democrats and the Liberals have made the education laws
    a top priority, but heated debates are expected on the topic within the ruling
    coalition.


    The National Liberal Party and president Klaus Iohannis, a former
    teacher himself, have put a lot of energy into these bills, which, they say,
    will create the framework for making education more efficient, more accessible,
    more flexible, more inclusive and better adjusted to market requirements.


    The Liberals insist that certain provisions in the bills must remain as
    worded in the draft tabled by the current education minister,
    Ligia Deca. These include tripling the budget for scholarships and increasing
    the number of beneficiaries, as well as turning the Hot Meal Programme into a
    Healthy Meal Programme.


    Other stipulations the Liberals feel strongly
    about include certifications recognised or accepted in the labour market for
    all specialities, including theoretical ones, a tax-free signing bonus,
    amounting to 5 gross minimum national wages, paid to teachers at the start of a
    minimum 5-year period of teaching in underprivileged areas, and expansion of work-based
    learning to the higher education segment. Under the new bills, the Education
    Ministry may also organise, jointly with the Foreign Ministry, Romanian schools
    abroad. Finally, priority education zones are introduced, in order to narrow
    access, participation and performance gaps for students facing social exclusion
    risks.


    The Liberals’ strong attachment to the education
    bills has gone so far as to affect their political partnership with the Social
    Democrats. The state secretary with the Education Ministry, Florin Lixandru, a
    Social Democrat, said his powers were withdrawn under a minister order for what
    he called a thought crime. He argues that the Education Laws are much too
    important and they require thorough discussion, and that there is enough time
    for analysis, given that the deadline for the education laws in the National
    Recovery and Resilience Plan is in the 3rd quarter of this year.


    According to Lixandru, the Social Democrats’
    analysis on the bills submitted by the Education Ministry indicates that a
    number of key elements, critical to the children’s future, need correcting.
    Lixandru says that, with respect to high school admission, the Social
    Democratic Party will not accept a procedure that drastically reduces
    children’s access to high-quality education. In his opinion, the right of high schools to
    organise their own admission exams is questionable at best, because it
    increases the risk of unfair practices like corruption and private tutoring.


    As for the baccalaureate, the Social Democratic
    Party is reluctant to increasing the number of exams, as the bill stipulates. And
    not least, an education law must include provisions concerning the Romanian
    children in the diaspora, the Social Democrats argue. (AMP)

  • Political Priorities

    Political Priorities


    After a rather long winter recess, which started well before Christmas, on December 14, 2022, Romanian MPs are returning to work on Wednesday, February 1, 2023, for the first parliamentary session of the year.



    Among their priorities, the mass media notice, are sensitive bills, such as the one capping special pensions at the level of the salaries paid for the respective positions, or the ones amending the education laws, on which the parties in the ruling coalition, the Social Democrats, the Liberals and the Ethnic Hungarians in Romania are yet to reach an agreement.



    The Undergraduate Education Bill and the Higher Education Bill are still being analysed by education experts in the 3 parties. These are part of the Educated Romania project, launched nearly a decade ago by president Klaus Iohannis, and still pending approval.



    According to the timetable agreed by political decision-makers, these bills should be passed by the government in February and reach Parliament in March, for endorsement. But the Social Democratic MP Vasile Dîncu said recently that he had asked his party chief Marcel Ciolacu to request an extension for the education laws deadline, for further consultations. On the other hand, the Liberal spokesman Ionuţ Stroe insists that the original timetable must be complied with.



    Another bill to be discussed and endorsed concerns the pension benefits granted to certain categories of public sector employees, including magistrates, court staff and military personnel.



    Ahead of the elections due in 2024, another bill pending in Parliament stipulates that at least one-third of the candidates for parliamentary and local elections must be women.



    Meanwhile, analysts say, the Liberals and the Social Democrats are planning ahead for the PM rotation decided by the ruling coalition. Under a protocol in this respect, the 2 main coalition members are to swap posts at the end of May, when the Social Democrat Marcel Ciolacu should replace the Liberal Nicolae Ciucă as prime minister, and the latter should take over the Senate speaker post, currently held by his fellow Liberal Alina Gorghiu.



    The Liberals insist that, under the protocol, some government ministers should also be replaced, although the Social Democrats would like to keep the offices where they claim their members have put up good performances, such as Sorin Grindeanu at the transport ministry and Adrian Câciu at the finance ministry. (AMP)


  • Energy cards, under way

    Energy cards, under way

    Two weeks ago, the
    government of Romania approved support measures, partly financed from EU
    funding under the 2014-2020 cohesion policy, to help vulnerable citizens cover
    their energy bills.


    Energy cards will be
    delivered by post as of February 1, and beginning on February 20 they can be
    used for the payment of electricity, heating and natural gas bills, and for purchasing
    firewood, natural gas bottles, fuel oil, pellets and other heating materials.


    A card carries a value
    of around EUR 140, the first installment of the total aid of EUR 280 for the
    year 2023, addressing beneficiaries with incomes below EUR 410 per family member. Where several beneficiaries share the same address,
    one card will be issued for the address.


    For those living in individual
    houses, things are quite straightforward. But if a beneficiary lives in a block of flats and
    wants to use the card for their energy expenses, the building manager will have
    to break down expenses and issue a debt validation certificate.


    The second installment
    of the aid will be distributed in September, and will consist of cards with a
    similar value, but the Government considers broadening the category of
    beneficiaries to include people earning less than EUR 600 per family member per
    month.
    Energy card beneficiaries will be able to pay energy bills using this document,
    their ID and the invoice in question only via the Romanian Post, the minister
    for European Projects and Investments Marcel Boloş explained:


    Marcel
    Boloş: Beneficiaries will be able to use the cards either with their
    mailman, or at their local post office, and as of next week we hope to have the
    electronic postal order service also available, where possible. After each
    operation, they must request the proof of payment, which is the document that
    confirms that the Romanian Post will transfer the money received from us to the
    beneficiary’s energy supplier. Also, using the card serial number,
    beneficiaries will be able to check their balance and payment history.


    The Romanian authorities will also continue to fund the social
    vouchers worth around EUR 50 every 2 months, used for the purchase of food and
    hot meals. The vouchers are partly financed from EU funds and partly from the
    state budget, and since 2022 over 2.5 million people have been receiving them. Also,
    in 2023 as well, an energy price cap and subsidy system will be in place for
    all household consumers. (AMP)

  • November 2, 2022 UPDATE

    November 2, 2022 UPDATE

    Plan – President Klaus Iohannis signed, on Wednesday, in a ceremony that took place at the Cotroceni Palace in Bucharest, the decree for the promulgation of the law on the National Plan to prevent and combat cancer. The plan covers the period 2023 – 2030 and represents the main public policy document that underpins the measures in the field at the national level. The law stipulates that all citizens have the state-guaranteed right to medical, social and psychological support services such as: prevention, diagnosis and treatment of cancer, care, including palliative care, psycho-oncology, onconutrition and oncofertility, social services and monthly food allowances. “These are remarkable advances of the medical science, they are state-of-the-art technologies that transform cancer into a disease that can be controlled. Romanians have the right to these innovations of the present”, said Klaus Iohannis.



    Winter season – 58% of Romanians say they will find it hard to pay their energy bills in the upcoming winter season, the same percentage estimating temperatures in their homes will be lower compared to previous years, a recent study reveals. According to the study, increased utility costs have caused changes in the Romanians consumption and purchasing behavior. Therefore, 55% of Romanians say they have stopped buying non-essential products. 40% of the respondents say the energy bills represent their biggest concern for the coming period.



    Moldova – The President of the Republic of Moldova (an ex-Soviet state with a majority Romanian speaking population), Maia Sandu, received assurances, in Bucharest, of Romanias full support in the context of the energy crisis. On Tuesday, she met with the President Klaus Iohannis and the Prime Minister Nicolae Ciuca, whom she thanked for their support and for the measures adopted by Romania regarding the facilitation of the supply of electricity, natural gas, fuel oil and firewood for Moldovan citizens. Furthermore, Maia Sandu thanked Romania for the reaction regarding the emergency compensation of the electricity deficit. We remind you that Bucharest urgently began to supply Moldova with electricity and natural gas, after Ukraine stopped exporting energy to Chisinau due to damaging of the power plants in the bombings of the Russian army.



    Russia – Russia announced on Wednesday that it reentered the Ukrainian grain exports agreement, after receiving “written guarantees” from Ukraine regarding the demilitarization of the maritime corridor used for their transport, AFP reports. Moscow suspended its participation in the grain deal on Saturday, citing a Ukrainian drone attack on Russian military ships in the port of Sevastopol in the annexed Crimea. According to Russia, in this attack, remote-controlled aerial and maritime drones moved through the secured corridor intended for ships carrying Ukrainian grain. On Monday, Moscow warned of the “danger” of continuing navigation without its consent and asked Ukraine to guarantee the security of the respective maritime corridor.



    Governemnt – In Wednesdays meeting, the Romanian government approved a draft law on the organization and functioning of the National Signaling Information System and Romanias participation in the Schengen Information System, which ensures harmonization with the standards in the field. On the other hand, the government expanded by 21 molecules the list of compensated and free medicines. These are destined for patients with oncological diseases, heart failure, Parkinsons disease, endocrine and metabolic diseases and chronic lung diseases. The updated list will enter into force on December 1.



    Constitutional Court – The Constitutional Court of Romania admitted, on Wednesday, the notification of the opposition Save Romania Union – USR in relation to the law that allows the construction of small hydropower plants in protected areas. USR invoked 11 arguments of unconstitutionality, including the violation of the principle of bicameralism, given that there are major differences in legal content between the form adopted by the Senate, as the first Chamber notified, and the form adopted by the Chamber of Deputies. USR also invoked the violation of the right to a healthy environment. At the beginning of the year, the Parliament, controlled by the government coalition made up of the PSD-PNL-UDMR, adopted the bill which stipulates that hydropower plants in protected areas, with a more than 60% completion percentage, are considered of major public interest and national security and are to be put into operation by the end of 2025. (LS)

  • Measures to lower fuel and energy prices

    Measures to lower fuel and energy prices


    The leaders of the ruling coalition have agreed on new measures to lower natural gas and electricity bills and to help slow down the rise in inflation seen early this year.



    A temporary 50% cut in the fuel excise is one of the measures prompted by the energy crunch. Data shows that in Romania, fuel costs account for 8% of the market basket, but for households with small and medium incomes the share may reach as much as 12%.



    With this measure validated on Tuesday by the ruling coalition comprising the Social Democratic Party, the National Liberal Party and the Democratic Union of Ethnic Hungarians in Romania, the retail price of petrol and diesel is set to drop by more than RON 1 from around RON 7 per litre at present.



    The measure was backed by the Social Democrats, whose leader Marcel Ciolacu says the move is designed to put a stop to price rises.



    Marcel Ciolacu: “Weve seen the rise in oil prices but we are hoping to balance this by cutting the excise. We are thinking about the problems Romanians struggle with and about ways to stop this surge in prices.”



    The Liberals agree in principle with lowering taxes, excises, contributions and anything that would help ease the fiscal burden, the Liberal leader Florin Cîţu said. He warned however that if retail prices fail to drop, someone must take responsibility.



    Florin Cîţu: “Well see the figures from the finance ministry. I feel these scenarios are optimistic. I hope these measures are not just for the sake of the governments image, because they would cost RON 3-4 billion.”



    By giving up half the petrol and diesel excise for the next 6 months, the government is giving up a share of budgetary revenues, while citizens and companies see their current costs reduced.



    Talks will be held in the forthcoming period with the European Commission and major fuel suppliers to keep fuel prices at a manageable level for all household and corporate consumers, the finance minister Adrian Câciu said.



    The ruling coalition also decided to introduce an emergency order in April, to offset and put a cap on electricity and natural gas bills. (A.M.P.)


  • Government aid to help cover electricity bills

    Government aid to help cover electricity bills

    The price of electricity and natural gas in Romania followed the upward trend in Europe, and the government is currently looking for solutions to extend the aid schemes in the energy sector.



    Last week 2 such schemes were approved, targeting energy producers and the local administration or inter-community development associations that put up or upgrade energy facilities.



    A memorandum was also endorsed, extending the aid schemes for large energy consumers. According to the government spokesman Dan Cărbunaru, over EUR 82 million will be channelled to those investors that tap into renewable energy sources. The energy ministry was tasked to hold consultations with the European Commission regarding the extension of the state aid programme to support large energy consumers.



    Dan Cărbunaru: “Everybody is affected, not only the smaller households, but big consumers as well. Obviously, we are talking about large amounts of money and the procedure requires the approval of the European Commission. The government was tasked with initiating talks as soon as possible, so that major consumers in Romania may continue to benefit from state aid in due time.”



    Dan Cărbunaru also says that these measures are intended to preserve both the competitiveness of Romanian companies compared to other competitors in the EU and outside it, and to keep the around 200,000 jobs in these sectors.



    Dan Cărbunaru: “These state aid schemes were implemented in Romania in 2019-2021. They were effective, given that these companies in energy-intensive sectors contribute an annual 6% of Romanias GDP. An important element to take into account are the jobs that a company benefitting from such state aid has to keep in place.”



    In the forthcoming period, the government is to finalise new support measures for household consumers to cope with the surge in energy prices. Apart from the measures taken so far, the government plans to continue to shield the economy and households from the effects of the energy crisis after April 1 as well.



    Dan Cărbunaru: “These support packages being prepared by the government are almost ready. I can confirm that the PM requested all stakeholders to find a solution which is as quick, as comprehensive and as easy to implement and to explain as possible.”



    Within 2 weeks the government will have ready a set of measures concerning electricity bills, the finance minister Adrian Câciu said in his turn. (A.M.P.)

  • New measures to reduce energy bills

    New measures to reduce energy bills

    Focusing exclusively on the topic of reducing the high electricity and gas bills, this years first meeting of the ruling coalition made up of the National Liberal Party (PNL), the Social Democratic Party (PSD) and the Democratic Union of Ethnic Hungarians in Romania (UDMR) put together the solutions found by these parties to the problem. The proposed solutions, however, mirrored the parties different visions. As urgent measures, to be enforced starting February 1st, the PSD proposed capping the prices and reducing the VAT from 19% to 5% for household electricity and gas consumers. The Social Democrats also came up with a set of measures such as the recalculation, without penalties, of the bills that have not been issued correctly, fining the abuse and over-taxing the profit of energy companies.



    The Liberals, on the other hand, have announced they do not want just a short-term solution, but a plan with firm budget allocations to investment in energy. At the same time, PNL says that the measures in force, which they say reduce bills by 33%, must be implemented. The meeting ended with an accord and the Government is to take new measures to cut the energy and gas bills. PM Nicolae Ciuca: “The energy ceiling will decrease from 1 leu to 0.8 lei per KW. Also, the consumption limit to which this price applies will go up from 300 to 500 KW. The price of 1 leu per KW will be capped for SMEs. The cap for natural gas will go down from 0.37 to 0.31 lei per KW and the consumption limit for five months will be increased from 1,000 to 1,500 KW. ”



    Moreover, all incorrect bills will be recalculated, without consumers being fined or disconnected. The measures for household consumers and SMEs will be applied from February 1st to March 31st and will be included in an Emergency Order adopted by the Government next week at the latest. Meanwhile, the National Authority for Consumer Protection has fined the energy suppliers that issued the bills for November and December 2021 without observing the rules in place and had them recalculate the bills. According to official data, although more than 90% of them observed the new legislation, one of the few suppliers that didnt, has contracts with 30% of the household consumers in the country. Another big supplier has announced that more than half of the bills it issued comply with the new regulations. (EE)




  • Debates on capping energy bill prices

    Debates on capping energy bill prices

    In Romania, the price of gas and electricity bills has exploded in recent months, and in some cases has even increased 4 up to 5 times, despite the fact that, in October, a law was adopted according to which, between November 1, 2021 and April 1, 2022, the final price of electricity bills is capped at a maximum of 1 leu/kWh, and that of natural gas at a maximum of 0.37 lei/kWh. Furthermore, this law also compensates for the prices of electricity and natural gas bills for household consumers if they meet certain consumption limits.



    The law on capping and compensating energy prices will be amended by the government, says the energy minister, Virgil Popescu, so that the suppliers who miscalculated the bills, ignoring the law, can re-issue the bills without paying penalties. An increase in gas bill compensation is also being considered and it will be forbidden to disconnect consumers.



    Moreover, the government intends to also take measures in relation to the ​​food industry and agriculture. Here is the energy minister, Virgil Popescu: “From February 1, we will discuss a package for the food and agriculture industries. We may also discuss an additional discount on natural gas, we either increase the discount from 33% to 50% or reduce the VAT for gas. We will find solutions for the continuation of this scheme as of February 1 and April 1, respectively.”



    The energy bill crisis has caused reactions from the leaders of the governing parties, PSD and PNL. Mutual accusations have been made, the resignation of the leadership of the Energy Ministry and of the Romanian Energy Regulatory Authority — ANRE was asked, and proposals were made to balance the situation. The Social Democrats are dissatisfied with the law initiated by the Liberals regarding the compensation of bills and the capping of energy prices, and several PSD members asked for the dismissal of energy minister Virgil Popescu. PSD leader Marcel Ciolacu believes that quick solutions are required, such as capping the VAT on energy and natural gas, but also organizing a meeting of the Supreme Council of National Defense – CSAT.



    Marcel Ciolacu: “We are obviously in full crisis. I think that people expect solutions from this coalition, which has a comfortable majority in the Romanian Parliament, rapid solutions, found now, not as of April 1.”



    The president of the PNL Florin Cîţu says that talks on the issue should be more pragmatic, without populist messages and solutions that have a big impact on the budget. Florin Cîţu: “I would prioritize. We cannot talk about measures that discriminate or promise that we will pay everyones bills, we cannot promise all kinds of tax eliminations. The balance we have reached in the economy in recent years can be easily disturbed”.



    Trade unions and employers’ associations also demand the capping of energy and natural gas bill prices both for domestic consumers and companies, and point out that without systemic and unitary measures, many companies will go bankrupt. (LS)

  • Europe and energy prices

    Europe and energy prices

    The energy crunch will be once again on the agenda of the December European
    Council meeting, senior EU officials announced after last week’s meeting
    devoted to this topic.


    In the meantime, the Commission is
    tasked with running an analysis on the operation of the European electricity
    and natural gas market and on the carbon trading market, after several member
    states blamed the rise in energy prices on problems in these fields.


    Nuclear energy is not mentioned in
    the Council meeting’s conclusions although it had been included in the original
    text. However, countries like France, Romania and others requested the European
    Commission to rank nuclear energy and gas as transition sources this autumn,
    until clean energy sources will be able to cover most of the Union’s energy
    needs.


    There is no doubt that if we
    seek cleaner energy, we need interim solutions. It is very possible and
    desirable for renewable sources, including solar energy, wind power and so on,
    to account for most of the energy output by 2040-2050. But until we get there,
    our opinion in Romania is that we need to use nuclear power plants, to upgrade them
    and broaden nuclear power sources. At the same time, Romania needs and is
    determined to use natural gas for heating, for electricity production and for
    industry. So we certainly must have nuclear power and gas, the president of
    Romania Klaus Iohannis said in Brussels, and emphasised that it would be
    excellent for these forms of energy to be fundable from EU sources.


    The European Commission president,
    Ursula von der Leyen, seems to have eventually accepted this view, and said
    after the meeting that, in the medium and long term, additional steps will be
    prepared to enhance Europe’s energy independence and resilience.


    She said a stable source, i.e.
    nuclear power, is necessary, and the role of natural gas as transitional fuel
    will be preserved. The Commission will present a draft document in this
    respect, von der Leyen said.


    She added that efforts are made to
    set up a strategic gas reserve and to jointly procure energy. We will step up
    initiatives to contact as diverse suppliers as possible. We will diversify
    sources and speed up interconnection, the Commission president also said.


    EU reference prices for natural gas soared
    by over 300% since January, because of supply problems and high demand. The hike
    pushed electricity prices in Europe to the highest level in recent times, and
    the situation is likely to continue until the end of the year, keeping heating bills
    on the rise. To mitigate the impact on citizens, Romania and other member
    states are taking measures to support vulnerable households and struggling companies.
    (tr. A.M. Popescu)

  • Energy prices cause growing concern

    Energy prices cause growing concern

    A committee has been set up in the Parliament of Romania to investigate the substantial increase in the price of natural gas and electricity. The committee found that these increases are in line with European trends.



    Energy prices in the continental market have reached record-high levels, fuelled by the costs of green certificates and the natural gas prices. Another problem for the European energy market is the uncertainty around gas imports from Russia, given that European storage facilities were only 70% full.



    The European Commission vice-president Frans Timmermans said the unprecedented electricity prices in member states prove that the Union must give up fossil fuels and step up the transition to green energy. He also noted that, while fossil fuel prices rose substantially, the costs of renewable energy remain low and stable.



    EU member states like Italy, Spain and Greece responded to the rise in conventional energy prices and have already announced aid measures to help people pay their bills. In Bucharest as well, the government is planning to help households cover their electricity and natural gas bills.



    Under a draft emergency order first discussed on Wednesday, the government would subsidise electricity prices by 3.6 eurocents per KWh and natural gas bills by 25%. Beneficiaries will include households that use between 30 and 200 KW of electricity per month and between 100 and 1,200 cubic metres of natural gas per year. The average price used by the government in its plans is 16 eurocents per KW, and bills will be around 3.6 euro smaller per 100 KW.



    The government is also looking at options to introduce a natural gas price ceiling. PM Florin Cîţu said this should not affect investments in the economy, and that the measure requires talks with the Competition Council and the European Commission. According to the energy minister Virgil Popescu, such a ceiling would discourage foreign investments in Romanias electricity and natural gas extraction markets, because companies would be forced to sell for less than the market price.



    The Social Democratic Party in opposition announced that in the forthcoming period they will table a bill introducing a ceiling on electricity and natural gas prices for household consumers, as a stop-gap solution. The Social Democrats vice-president Mihai Tudose criticised the right-of-centre government for deregulating the energy market at the worst possible time, when the domestic output is considerably below its potential. (tr. A.M. Popescu)

  • The Week in Review 8-14 December

    The Week in Review 8-14 December

    The Liberal Government requests Parliaments confidence


    The minority Liberal government in Bucharest has decided to rush a number of measures through Parliament, by taking responsibility for them instead of going through the regular parliamentary endorsement procedure. This past week, the Cabinet, which came to power thanks to a no-confidence motion against the Social Democrats, introduced 3 bills concerning amendments to the justice laws, free school transport for children, pensioners and people with disabilities, and the budgetary caps for next year.



    As far as the judiciary is concerned, after the Senate, as the decision-making body in this respect, adopted some of the measures planned by the Cabinet—namely a 2-year deferral of early retirement for magistrates and a 1-year deferral of the switch from 2 to 3-judge panels—the Government is only left to take responsibility for an increase of seniority requirements for entry-level magistrates. Under the law, if a censure motion is not introduced within 3 days from this procedure, the bills tabled by the Executive come into force after being signed into law by the President.



    The Social Democrats, now in opposition, announced they would refer 2 of the 3 bills to the Constitutional Court, on grounds of a 2009 ruling under which the Government may only take responsibility for legislation if the parliamentary procedure is stuck and the measures in question are urgently needed. Nonetheless, the Social Democrats say they are not thinking of introducing a no-confidence motion. They argue that both the deferral of increasing seniority for entry-level magistrates and the transport regulations that the Government is pushing through Parliament are already being discussed by the legislative body and do not require an exceptional procedure.



    Meanwhile, the Government also intends to request Parliaments confidence over a number of provisions in the Emergency Order no. 114, dubbed “the greed tax order, through which a year ago the Social Democratic Government had introduced new taxes for banks and caps on electricity and gas prices charged to households.




    Opposition tables simple motion against Finance Minister


    This week, the Senate adopted a simple motion tabled by the Social Democratic Party against the Liberal Finance Minister Florin Citu, with 59 to 56 votes and 2 abstentions. Under the Constitution, the endorsement of a simple motion does not necessarily entail the dismissal of the minister in question, but quite a number of voices are now calling for his resignation, also mentioning that Florin Citu had not been approved by the specialist parliamentary committees prior to his appointment.



    During the debates, the Social Democrats argued that the incumbent Finance Minister made irresponsible and risky statements leading to a fall in the national currencys exchange rate against the Euro and the US dollar, which will have ripple effects on the Romanian economy. They also criticized Minister Citu and the Cabinet as a whole for what they called “chaotic measures concerning the budget deficit and the minimum wages.



    In reply, Florin Citu says the simple motion is a purely political move, designed to divert attention from the state of Romanias economy after 3 years of Social Democratic government. The Liberals also blame the Social Democratic Party for the recent downward adjustment of Romanias rating from stable to negative, operated by Standard&Poors agency. According to the National Liberal Party, this happened because the previous Governments excessive expenditure led to budgetary imbalances.



    “How is Standrd&Poors not supposed to lower Romanias rating, when this morning the budget deficit is 3.7% of the GDP, by noon it is 4.1%, in the evening it is 4.3%, but official documents say it is 4.4% of the GDP? How is the rating not to drop, when yesterday the government debt accounted for 45% of the GDP for 2020, and today it is 40%, the Social Democrats former economy strategy expert Cristian Socol retorted in a Facebook post. For 2020, the Liberal Government targets a 3.6% of GDP budget deficit, with personnel expenditure of maximum 9.7% and an economic growth rate of 4%.




    The President of Romania attends European Council meeting


    Attending the meeting of the European Council in Brussels at the end of this week, President Klaus Iohannis announced that European leaders had decided to transfer the task of drafting the European Unions multi-annual budget framework from the Finnish presidency of the EU Council to the presidency of the European Council.



    As regards achieving a climate-neutral economy by 2050, as desired by the new European Commission, Klaus Iohannis said that Romania is in a fairly good position to meet its targets, at least until 2030.



    Last but not least, with respect to the early parliamentary elections in Britain, the Romanian President voiced satisfaction with the outcome of the ballot, as well as hopes that the resulting parliamentary majority would finalise a Brexit agreement.


    (translated by: Ana-Maria Popescu)

  • Government resorts to exceptional procedure to pass 3 bills

    Government resorts to exceptional procedure to pass 3 bills

    Tuesdays Government meeting was, for the first time in history, held in 2 sittings, with an intermission in the afternoon to allow PM Ludovic Orban and some of his Cabinet members to take part in a roundtable organised by trade unions with respect to next years economic prospects. Later in the day, the Government resumed its meeting, with a first reading of a bill for which the Cabinet is to request Parliaments confidence within 10 days.



    The bill concerns the repeal of provisions in the infamous Order 114, dubbed the “greed tax order, under which a year ago the Social Democratic cabinet had introduced additional taxes for banks and ceilings on electricity prices for households. Unhappy with the consequences of that order, the Liberals are now seeking to cancel it. In the talks with business people ahead of the Government meeting, PM Ludovic Orban spoke about the provisions to be cancelled:



    Ludovic Orban: “We want to repeal the provisions regarding ceilings on the price of electricity for households, as well as the current energy export limitations and the overcharges introduced in the energy sector. We also intend to cancel all the provisions concerning privately-managed pension funds in the public pension system, the financial-banking system, and charges in the communications sector. There are a number of other provisions we have in mind, but facilities for consumers will not be affected.



    All these changes will be discussed with the social partners, prior to being pushed through Parliament. Meanwhile, however, the Government initiated an extraordinary procedure, requesting Parliaments confidence on 3 other pieces of legislation: a bill amending the justice laws, the repeal of Order 51/2019 on county transportation, and a bill setting public budget ceilings.



    Back when they were in Opposition, the Liberals constantly criticised the justice laws, which they now want amended to the effect of deferring the early retirement of magistrates, the extension of the seniority requirement for entry-level magistrates from 2 to 4 years and the increase in the membership of judge panels from 2 to 3. The Orban Cabinet, which is now trying to have these provisions deferred, may seek to fully repeal them next year.



    Secondly, the Government wants to define in-county transportation as a public service subordinated to local authorities, so as to make sure that transport companies provide free school transport for children.



    Last, but not least, the Orban Cabinet will take responsibility before Parliament for a bill setting the public budget ceilings on which the 2020 state budget law will be based. Posted for public review on the home page of the Finance Ministry, the bill stipulates a budget deficit of maximum 3.6% of GDP, and a 9.7% cap on personnel expenditure. Next years public budget will also rely on an expected 4% economic growth rate.


    (translated by: Ana-Maria Popescu)