Radio România Internațional

Tag: budget adjustment

  • September 21, 2024 UPDATE

    September 21, 2024 UPDATE

    SUMMIT – The president of Romania, Klaus Iohannis, will lead Romania’s delegation at the summit of the 79th session of the UN General Assembly, which will take place in New York. The central theme of the session is “Unity in diversity, for the advancement of peace, sustainable development and human dignity for everyone everywhere”. According to a Presidency release, Klaus Iohannis will give a speech on Wednesday, when he will plead for the maintenance of multilateral dialogue, especially in the UN format, as a key element of regional and global security. The president will also highlight Romania’s efforts and contribution at all levels with a view to solving current global problems, from security crises such as the war in Ukraine or the conflict in the Middle East, to major challenges for humanity, including climate emergency or cyber threats.

     

    ADJUSTMENT – The Romanian government is next week discussing a budget adjustment proposal presented by the Ministry of Finance. Although it is based on an increase in revenues, expenses have also significantly increased, which will lead to a deficit of 7%, two percentage points above the authorities’ estimate at the start of the year. Meanwhile, the economic growth forecast was downgraded from 3.4 to 2.8% of GDP. Prime Minister Marcel Ciolacu gave assurances the adjustment is sustainable, as investment-related expenses account for 84% of the deficit. According to the draft decree published on the website of the Ministry of Finance, healthcare, transports and education will receive additional funds. The social insurance budget will also be increased, to ensure the payment of recalculated pensions, as well as unemployment benefits and related social insurance contributions.

     

    MEETING – In Toronto, Romania’s Foreign Minister, Luminiţa Odobescu, presented Romania’s experience in terms of promoting equal opportunities, combating discrimination and stereotypes, eliminating all forms of violence and abuse. The Romanian official attended the “Women Foreign Ministers’ Meeting”, organized by the Canadian and Jamaican Foreign Ministers, Melanie Joly, and Kamina Johnson Smith, respectively. Luminiţa Odobescu reiterated the importance of equal opportunities in Romanian diplomacy, a fact that has led to a situation of parity between women and men, both at the level of the Ministry staff, and in terms of management positions. On the other hand, the Romanian official met with representatives of the Romanian community in Toronto and with a group of students from York University, at a lecture given by university professor Dan Berbecel.

     

    FLOODS – The Danube floods peaked on Saturday in Budapest, with water flows reaching 8,200 cubic meters per second, which could significantly reduce flows on the Romanian segment, Romanian Water Administration officials say. Experts expect a maximum flow below 9,000 cubic meters per second, to be reached by September 29. In 2006, the Danube flow reached 15,600 cubic meters per second. In Budapest, the Danube overflowed, the streets and buildings near the embankment were flooded, and the Parliament building was also flooded. The Danube also overflowed in Slovakia and Austria. The European Commission has promised an emergency aid of 10 bln EUR for countries in Central and Eastern Europe affected by the floods.

     

    CLEANUP DAY – Over 200,000 volunteers and thousands of employees from institutions subordinated to the Environment Ministry took part in Saturday’s national campaign “National Cleanup Day, Let’s Do It, Romania!”, Environment Minister Mircea Fechet said. This year saw the launch of the  “Let’s Do It, Romania!” mobile app, available on iOS and Android, which allows users to report the existence of waste or ragweed and send notifications to the relevant authorities to ensure the cleaning of these areas. This app represents an essential element in efforts to protect the environment, facilitating the direct and quick involvement of citizens. According to data gathered by the “Let’s Do It, Romania!” team, from 2009 until now, over 2.4 million volunteers took part in greening actions on National Cleanup Day, carried out at national level. Romania thus joins 198 other countries in this global effort, which seeks to reduce waste and promote a cleaner and healthier environment.

     

    BUCHAREST DAYS – The Bucharest Days Festival has kicked off, marking the anniversary of 565 years since the city was first documented. Concerts, theater shows, acrobatics and animation performances, installations and art exhibitions are organized on this occasion, as well as various interactive activities for children. This weekend, the George Enescu Square hosts the 12th edition of “Bucharest Music Film Festival”, including performances by prestigious ensembles and artists. Also, children are invited on Sunday to take part in the workshop “Remi and the adventure of sounds: drums and rhythm, small percussion instruments”, where they will be able to experience various sounds and rhythms. (VP)

  • September 21, 2024

    September 21, 2024

    ADJUSTMENT – The Romanian government is next week discussing a budget adjustment proposal presented by the Ministry of Finance. Although it is based on an increase in revenues, expenses have also significantly increased, which will lead to a deficit of 7%, two percentage points above the authorities’ estimate at the start of the year. Meanwhile, the economic growth forecast was downgraded from 3.4 to 2.8% of GDP. Prime Minister Marcel Ciolacu gave assurances the adjustment is sustainable, as investment-related expenses account for 84% of the deficit. According to the draft decree published on the website of the Ministry of Finance, healthcare, transports and education will receive additional funds. The social insurance budget will also be increased, to ensure the payment of recalculated pensions, as well as unemployment benefits and related social insurance contributions.

     

    ELECTION – The Romanian Foreign Ministry has published on its website a Guide for postal voting for this year’s presidential and parliamentary elections. According to the document, Romanians domiciled or living abroad can register in the online register for postal voting by October 10 for presidential elections, and by October 17 for the parliamentary election. The Ministry recalls that the right to vote by post is an alternative to voting in polling stations and is carried out via postal services. Voters can register by filling an online form on the website votstrainătate.ro, managed by the Permanent Election Authority.

     

    FLOODS – The Romanian segment of the Danube will a see maximum flood levels over the course of next week, Romanian Water Administration officials say. Experts expect a maximum debit of 9,500 cubic meters per second, which will be kept in check by the first line of defenses, 1,100-km long, consisting of dams and other hydrotechnical facilities. Currently, the Danube’s flow stand at 5,100 cubic meters per second and, according to the precise forecast issued by relevant authorities, this flow will reach 8,700 cubic meters per second by September 26, that is more than the multi-year average for the month of September, 3,800 cubic meters per second. In Budapest, the Danube overflowed, the streets and buildings near the embankment were flooded, and the Parliament building was also flooded. The Danube also overflowed in Slovakia and Austria. The European Commission has promised an emergency aid of 10 bln EUR for countries in Central and Eastern Europe affected by the floods.

     

    CONFLICT – US Secretary of Defense, Lloyd Austin, has again voiced concern about escalating tensions between Israel and the Lebanese Hezbollah group, during his sixth telephone conversation with his Israeli counterpart in less than a week. The US official demanded a diplomatic resolution to the crisis. Secretary Austin’s plea comes after Israeli Defense Minister Yoav Gallant invoked a new phase in the war. The Israeli military announced on Friday it had killed a top commander of the Hezbollah group, as well as other high-ranking members of the Lebanese organization in an airstrike on Beirut. The strike followed two days of attacks on Hezbollah, in which its members’ pagers and radios exploded, killing 37 people and injuring several thousand. The attacks are believed to have been carried out by Israeli intelligence services, which have neither confirmed nor denied their involvement.

     

    BUCHAREST DAYS – The Bucharest Days Festival has kicked off, marking the anniversary of 565 years since the city was first documented. Concerts, theater shows, acrobatics and animation performances, installations and art exhibitions are organized on this occasion, as well as various interactive activities for children. This weekend, the George Enescu Square hosts the 12th edition of “Bucharest Music Film Festival”, including performances by prestigious ensembles and artists. Also, children are invited on Sunday to take part in the workshop “Remi and the adventure of sounds: drums and rhythm, small percussion instruments”, where they will be able to experience various sounds and rhythms. (VP)

  • A new budget adjustment

    A new budget adjustment

    The Government on Thursday adopted the second and
    final budget adjustment for this year. The budget will cover mandatory
    expenses, such as operational costs of all state institutions until the end of
    the year, social welfare benefits as well as salaries. Additional funds were
    redistributed to programs conducted by budget administrators with an impact on
    the economy and with a view to supporting the population and businesses. At the
    same time, the budget adjustment provides funding for state aid given to
    farmers whose crops were affected by draught in 2021. The budget ensures the
    necessary funds for ongoing European projects. Most funds will go to the
    Finance, Labor, Agriculture and Economy ministries, while the Energy, Interior,
    Health and Transport ministries will get less funding. According to the autumn
    forecast underlying the adjustment, budget revenues increased by some 100
    million EUR, although so did expenses. The budget deficit stands at some 16
    billion EUR, a slight drop accounting for 5.74% of the GDP, compared to the
    previous estimate of 5.84%. Finance Minister Adrian Câciu
    explained:


    We restructured expenses
    wherever we found it necessary to supplement the budget, where budget
    administrators did not honor their committments in their financial plans.


    On
    the other hand, Prime Minister Nicolae Ciucă
    argues that European financial agencies claim Romania reported economic growth
    in the third quarter of 2022, and there are no clear signs our country might
    face a recession.


    Obviously, to be honest, we very much depend on the
    economic context and on our partners. Some of these problems are bound to
    affect Romanian economy too. Therefore, we need to continue to come up with
    measures and decisions that should allow us to continue to support investments.
    Caution and balance are advised.


    The budget also addresses vulnerable categories of the
    population. Prime Minister Ciucă announced the government
    will earmark 800-900 million EUR worth of European funds to vulnerable categories to help them get safely through
    the winter, both this year and the next. The funds will be disbursed as state
    subsidies for the payment of energy, heat and firewood. (VP)

  • A new budget adjustment

    A new budget adjustment

    The Government on Thursday adopted the second and
    final budget adjustment for this year. The budget will cover mandatory
    expenses, such as operational costs of all state institutions until the end of
    the year, social welfare benefits as well as salaries. Additional funds were
    redistributed to programs conducted by budget administrators with an impact on
    the economy and with a view to supporting the population and businesses. At the
    same time, the budget adjustment provides funding for state aid given to
    farmers whose crops were affected by draught in 2021. The budget ensures the
    necessary funds for ongoing European projects. Most funds will go to the
    Finance, Labor, Agriculture and Economy ministries, while the Energy, Interior,
    Health and Transport ministries will get less funding. According to the autumn
    forecast underlying the adjustment, budget revenues increased by some 100
    million EUR, although so did expenses. The budget deficit stands at some 16
    billion EUR, a slight drop accounting for 5.74% of the GDP, compared to the
    previous estimate of 5.84%. Finance Minister Adrian Câciu
    explained:


    We restructured expenses
    wherever we found it necessary to supplement the budget, where budget
    administrators did not honor their committments in their financial plans.


    On
    the other hand, Prime Minister Nicolae Ciucă
    argues that European financial agencies claim Romania reported economic growth
    in the third quarter of 2022, and there are no clear signs our country might
    face a recession.


    Obviously, to be honest, we very much depend on the
    economic context and on our partners. Some of these problems are bound to
    affect Romanian economy too. Therefore, we need to continue to come up with
    measures and decisions that should allow us to continue to support investments.
    Caution and balance are advised.


    The budget also addresses vulnerable categories of the
    population. Prime Minister Ciucă announced the government
    will earmark 800-900 million EUR worth of European funds to vulnerable categories to help them get safely through
    the winter, both this year and the next. The funds will be disbursed as state
    subsidies for the payment of energy, heat and firewood. (VP)

  • Who got money after the budget adjustment?

    Who got money after the budget adjustment?

    The first budget adjustment this year was adopted on Thursday by the Romanian government and is a positive one. According to the executive, the adjustment took into account an economic growth of 3.5%, the budget revenues for the first six months and the budget execution over this period. The main beneficiary of the adjustment is the Ministry of Finance itself. It received the largest amount, over 8 billion lei, of which 1 billion were immediately allocated for the state aid scheme intended to finance large projects. The adjustment also secured more money for the Ministry of Labor, over 5 billion lei, which it will use including for compensating energy bills.



    The Ministries of Health, Transport, Development and Agriculture also got more money. The money allocated to the Health Ministry is intended, mainly, to increase the transfers granted to the budget of the National Single Social and Health Insurance Fund. The Ministry of Transport will increase the subsidies for the railway and the metro companies, the Ministry of Development, Public Works and Administration will allocate additional funds to the National Local Development Program, and the Agriculture Ministry will earmark more for diesel subsidies, the irrigation infrastructure and guarantees for the loans contracted by agricultural producers. The ministries of European Projects, Education, Sports, Research, Energy and Tourism also received more money.



    On the other hand, the budgets of the Ministry of the Interior, Environment, Culture and Foreign Affairs were reduced. The Fiscal Council, an advisory body that provides independent opinions on the sustainability of fiscal and budgetary policies, drew attention to the fact that the adjustment carried out by the government risks leading to a deficit higher than 7% of the Gross Domestic Product, given that the estimated one is 5.84%. The fear would be that the executive overestimated the amount that would get into the budget and underestimated part of the spending, including for compensating energy bills. The Fiscal Council claims that of the 30 billion the Government is counting on, nine will not be collected.



    Also, the Council fears that expenses were underestimated by more than six billion lei. In response, the Minister of Finance, Adrian Câciu, has stated that the government has demonstrated that it can keep the budget deficit under control. According to the head of Finance, the budget execution after seven months will show that the deficit does not exceed 2% of the GDP, so the target of 5.84% at the end of the year would be achievable. The Minister admits, however, that the warnings of the Fiscal Council are pertinent regarding the risk that the estimated revenues upon adjustment will be too low and the estimated expenses will be higher. The next budget adjustment is scheduled for November. (MI)

  • August 11, 2021 UPDATE

    August 11, 2021 UPDATE

    Budget. The Governing coalition in Bucharest carries on negotiations over the current budget adjustment, which is to be approved next week. On Tuesday evening, after a meeting of the leaders of the ruling parties, the Liberal PM Florin Citu announced that additional funds would be earmarked for the ministries of health, transport, education, justice and energy. As regards the ministry of development, talks have not been completed yet, as the line minister Cseke Atilla presented a 10 billion Euro investment program, to cover several fields: roads, water, sewerage and connection to the natural gas pipelines. Under this program, the state would invest in local infrastructure, in correlation with investments from the European funds. On Wednesday, the leader of the National Liberal Party, Ludovic Orban, stated that the start of the new program of investments benefiting local communities was decided at government level.



    Covid-19RO. 326 new cases of Covid-19 were reported in Romania on Wednesday, out of more than 29 thousand tests performed. Also, 8 related deaths were registered. 710 people are hospitalized, of whom 96 in intensive care. The coordinator of the National Vaccination Campaign, Valeriu Gheorghiţă, has stated that, although the number of new cases of infection is growing slowly, its a progressive and sustained growth, therefore, in a pessimistic scenario, the figure could go up to 1,500 daily cases in the second half of September. In another move, in order to give a boost to the vaccination campaign, the governing coalition has agreed to grant meal vouchers to those who get fully vaccinated.



    Inflation – According to the National Institute of Statistics, in Romania, the annual inflation rate went up to 5% in July as against 3.9% in June. Prices of non-food products went up by 8%, of services by 2.74%, and of foodstuffs by 2.33%. Higher prices were reported for electricity, gas, fuels and edible oil. On Monday, Romanias Central Bank increased the inflation forecast to 5.6% for the end of this year, according to Governor Mugur Isărescu. Romania is no longer a country of low salaries, the PM Florin Cîțu replied, adding that more than 1% of employees have a net salary higher than the equivalent of 3,000 Euros, and the share of people who have net salaries of over 1,000 Euros is on the rise. According to the NIS, the average net salary stands at 3,541 lei (about 700 Euros).



    Strategy. Romanias military strategy for the next three years was approved at Wednesdays government meeting. The document reflects the security and defense guidelines of the North Atlantic Alliance and the EU, taking into account the risks and threats of a military nature to Romania, Army missions and national military objectives set out in the White Paper on Defense, a communiqué issued by the line ministry reads. At the same time, the strategy sets priorities in developing the Armys defense capabilities, continuing the lines of action of previous strategies in conjunction with security guarantees arising from Romanias dual membership of NATO and the EU, as well as the strategic partnerships with other states. The document emphasizes the need to innovate, adapt and implement objectives to configure the command and force structure, increase the responsiveness of units, digitize and use new technologies, modernize the education and medical-military system, and adapt the legal framework. necessary to carry out missions in time of peace, crisis and war.



    Wildfires. In Greece, the population affected by the wildfires of the past two weeks accuses authorities of failing to act effectively in the fight against the fires. The causes of this unprecedented disaster are also being investigated by the Prosecutor General, as there are suspicions of an organized criminal activity. As many as 600 outbreaks are active, and the situation does not seem to be improving despite the huge efforts of the Greek firefighters, who have also received international aid. The most dangerous situation is in Evia Island, where more than 100 Romanian firefighters are operating. The Romanian firefighters have received much appreciation from the press, the locals, and also from their Greek colleagues for their intervention manner and courage. The Greek Prime Minister Kyriakos Mitsotakis has admitted that the government could have done more. He has promised that 500 million Euros worth of aid will be sent to the Peloponnese, in the Attica region near Athens and to the island of Evia, that new trees will be planted to replace the burned forests and that those who lost their properties will receive compensations. The damage is difficult to estimate, but the flames have already destroyed 65,000 hectares of vegetation. The wildfires have not yet been put out in Italy, northern Macedonia and Siberia, and in California 200,000 hectares of vegetation have burned in recent weeks.



    Football. Romanias football champions, CFR Cluj (northwest), have failed to qualify for the Champions League play-offs, after losing 3-1, away from home, the match against the Swiss team Young Boys Bern, in the decisive leg of the third preliminary round. CFR will play in the Europa League play-off against Red Star Belgrade. If they are eliminated, CFR Cluj will still play in the Europa Conference League groups. (MI)


  • November 23, 2020

    November 23, 2020

    COVID-19 IN ROMANIA – Another 4,207 new infections
    with SARS-CoV-2 and 130 related deaths have been reported in the last 24 hours
    in Romania, the Group for Strategic Communication has announced. The national
    death toll has risen to 10,177. Since the beginning of the outbreak, 422,825
    people got infected with coronavirus, of whom over two thirds have recovered. 6,864
    Romanians living abroad have so far tested positive for COVID-19, of whom 126
    have died. President Klaus Iohannis has summoned the ministers of Defense,
    Healthcare and Interior Affairs to discuss Romania’s COVID-19 vaccination
    strategy. The vaccination campaign will begin once the vaccine will be approved
    and green-lit for mass-distribution. Romania will receive 10.7 million
    anti-COVID-19 shots from the European Commission in several batches.




    COVID-19 IN THE WORLD – Over 59 million people worldwide
    have been infected with COVID-19 since the start of the outbreak, according to
    the latest worldometers.info update. Over 1.3 million people have died to the
    virus. In the United States, the total number of infections stands at 12.5
    million, with over 262 thousand people dead. In Europe, all people arriving in
    Spain via air or sea must produce a negative PCR test no older than 72 hours at
    the date of entry. The rule is applied to all passengers coming from high-risk
    countries, including Romania. Also today the British Government is due to
    announce the lifting of lockdown restrictions before Christmas, allowing people
    to visit their relatives even in red-listed countries. Germany and France too
    are expected to announce new regulations for the winter holidays.




    BUDGET ADJUSTMENT – The Government is today
    presenting the National Recovery and Resilience Plan, a project whereby Romania
    will absorb €30 million worth of European funds for development, starting next
    year. The money will be invested in healthcare, education, infrastructure and
    digitization. In fact healthcare is one of the sectors that will be getting
    additional funds under the third budget adjustment this year, to be adopted
    later today by the Government. During the pandemic the budget deficit climbed
    to some €20 billion. Finance Minister Florin Cîţu said the budget deficit will
    stand at 9.1% of the GDP, adding that expenses have gone up due to the
    pandemic, while budget revenues are on the wane after the Government handed out
    tax breaks and other benefits to companies severely affected by the economic
    fallout of COVID-19.




    ELECTION – Citizens living in
    quarantined areas will be able to vote in the December 6 legislative election.
    On Monday Prime Minister Ludovic Orban said there will be no restrictions
    introduced in this respect, adding that citizens infected with COVID-19 and
    those in quarantine or home isolation will be able to vote with the help of the
    mobile ballot box. More and more towns
    and villages across Romania are entering quarantine as the infection rate
    continues to go up.






    CoD – Foreign Minister Bogdan Aurescu is today opening the 32nd
    edition of the Council of Democracies (CoD), this year held in videoconference
    format under the Romanian presidency of the Council. For two days participants
    will exchange views regarding the promotion of the principles stipulated in the
    Warsaw Declaration, the founding document of the CoD. Romania is holding the
    presidency of the Council from September 2019 until September 2021. Its priorities
    are to promote democracy at global level, facilitate the involvement of young
    people in democratic processes, as well as the relationship between democratic
    processes and information technology. Founded in 2000 and totaling 106 member
    states, the Council of Democracies is the widest platform for exchanging views
    and know-how in the field of global democracy.




    GAUDEAMUS – The 27th edition of the
    Gaudeamus International Book Fair, organized by Radio Romania, came to a
    close on Sunday. For seven days, the online event was followed by some 50,000
    viewers who attended over 200 cultural online events. Iartă-mă că te-am iubit,
    written by Ela E. H., born in Romania and settled in the United Kingdom, has
    been designated the most popular book in the fair. (V. Palcu)







  • November 18, 2020 UPDATE

    November 18, 2020 UPDATE

    Covid- 19 Romania – Romania registered on Wednesday a new record-high number of COVID cases, 10,269 in the past 24 hours. The total number of contaminations thus exceeds 383 thousand cases since the onset of the pandemic. Around 70% of the patients have recovered. According to the Strategic Communication Group, another 168 people infected with the new coronavirus have died, taking the total death toll to 9,429. President Klaus Iohannis said it was necessary to modernize hospitals’ medical gas systems and electric grids, and a financing program from European funds will be prepared in this sense. He underlined that legislative and financial tools needed to be reconsidered so as to allow the support of the maintenance service system of hospital equipment. President Iohannis made these statements after Saturday’s fire at the ICU of a hospital in northeastern Romania, which killed and wounded patients and medical staff. The Romanian President on Wednesday had a new meeting with the PM and health officials for the assessment and presentation of the measures taken to manage the Covid-19 pandemic.



    Covid-19 world — Over 55.7 million people the world over have been contaminated with the new coronavirus since the start of the pandemic, and more than 1.3 million have died, shows Johns Hopkins University of Medicine. The US is the most affected, with 11.3 million cases and almost 249 thousand deaths. India reports almost 8.9 million cases of contamination and 130 thousand deaths and Brazil 5.9 million cases and 167 thousand deaths. In Europe, the number of new cases dropped last week for the first time in the past three months, but the number of deaths continued to grow, show data published by the WHO. The American company Pfizer announced on Wednesday that the final results of the phase III clinical trials for its anti-Covid-19 vaccine, developed together with the German company BioNTech, show a 95% efficiency of the vaccine and that they would submit a request for authorization to the authorities. The company also says that the vaccine has been well tolerated, the only notable side effects being fatigue, in 3.8% of the cases and headaches in 2% of the cases.



    CCR — Romania’s Constitutional Court rejected on Wednesday the notification made by the governing Liberal Party and Save Romania Union regarding the appointment of the Social Democrat MP Florin Iordache to the position of president of the Legislative Council. The signatories of the notification showed that Iordache was appointed president of the Legislative Council without having obtained the necessary number of votes. Also they claim that Iordache does not meet the condition related to a good professional and moral reputation, as required by law. In his capacity as minister of justice, he promoted changes regarding the criminal codes, amnesty and pardon that generated large-scale street protests in Bucharest, other cities of Romania and the Diaspora. The leftist government of the time was accused, that, through these modifications, it tried to help corrupt politicians escape prison sentences.



    Budget — The budget rectification prepared by Romania’s Government is based in an economic downturn of 4.2% in 2020 and a budget deficit of 9.1% of the GDP — said Wednesday the finance minister Florin Citu. Thus the general consolidated budget deficit is estimated to reach by the end of 2020 96 billion lei, that is 20 billion Euros. Previously the PM Ludovic Orban had mentioned the stipulation, upon the budget adjustment, of additional funding for the healthcare sector, the farmers affected by the drought and the local authorities, particularly those affected by the pandemic, and the town halls that have initiated investment projects and can no longer afford the co-financing. In another development, the EC says that, for the moment, no decision should be made in relation to the application of further measures within Romania’s excessive deficit procedure, in the context of the big uncertainties caused by the new coronavirus pandemic. In its autumn forecasts, the EC estimates that Romania’s deficit will exceed 10% of the GDP in 2020 and will continue to grow in the coming years.




    Markets — Activity in enclosed market places will be resumed as soon as epidemiological conditions allow it and citizens’ safety can be ensured — said the Romanian PM Ludovic Orban at the consultations held on Wednesday alongside the agriculture minister Adrian Oros with the representatives of the associations of greengrocers, small producers and beekeepers. He explained that, at present, activity is allowed in open-air markets and that the measure to temporarily suspend enclosed markets was taken to protect the citizens’ health, especially of the elderly. Farmers’ organizations had previously protested against the closure of enclosed agrifood markets. They asked for compensations to make up for the losses incurred by peasants and small producers who were affected by the markets’ closure. (tr. L. Simion)

  • November 18, 2020 UPDATE

    November 18, 2020 UPDATE

    Covid- 19 Romania – Romania registered on Wednesday a new record-high number of COVID cases, 10,269 in the past 24 hours. The total number of contaminations thus exceeds 383 thousand cases since the onset of the pandemic. Around 70% of the patients have recovered. According to the Strategic Communication Group, another 168 people infected with the new coronavirus have died, taking the total death toll to 9,429. President Klaus Iohannis said it was necessary to modernize hospitals’ medical gas systems and electric grids, and a financing program from European funds will be prepared in this sense. He underlined that legislative and financial tools needed to be reconsidered so as to allow the support of the maintenance service system of hospital equipment. President Iohannis made these statements after Saturday’s fire at the ICU of a hospital in northeastern Romania, which killed and wounded patients and medical staff. The Romanian President on Wednesday had a new meeting with the PM and health officials for the assessment and presentation of the measures taken to manage the Covid-19 pandemic.



    Covid-19 world — Over 55.7 million people the world over have been contaminated with the new coronavirus since the start of the pandemic, and more than 1.3 million have died, shows Johns Hopkins University of Medicine. The US is the most affected, with 11.3 million cases and almost 249 thousand deaths. India reports almost 8.9 million cases of contamination and 130 thousand deaths and Brazil 5.9 million cases and 167 thousand deaths. In Europe, the number of new cases dropped last week for the first time in the past three months, but the number of deaths continued to grow, show data published by the WHO. The American company Pfizer announced on Wednesday that the final results of the phase III clinical trials for its anti-Covid-19 vaccine, developed together with the German company BioNTech, show a 95% efficiency of the vaccine and that they would submit a request for authorization to the authorities. The company also says that the vaccine has been well tolerated, the only notable side effects being fatigue, in 3.8% of the cases and headaches in 2% of the cases.



    CCR — Romania’s Constitutional Court rejected on Wednesday the notification made by the governing Liberal Party and Save Romania Union regarding the appointment of the Social Democrat MP Florin Iordache to the position of president of the Legislative Council. The signatories of the notification showed that Iordache was appointed president of the Legislative Council without having obtained the necessary number of votes. Also they claim that Iordache does not meet the condition related to a good professional and moral reputation, as required by law. In his capacity as minister of justice, he promoted changes regarding the criminal codes, amnesty and pardon that generated large-scale street protests in Bucharest, other cities of Romania and the Diaspora. The leftist government of the time was accused, that, through these modifications, it tried to help corrupt politicians escape prison sentences.



    Budget — The budget rectification prepared by Romania’s Government is based in an economic downturn of 4.2% in 2020 and a budget deficit of 9.1% of the GDP — said Wednesday the finance minister Florin Citu. Thus the general consolidated budget deficit is estimated to reach by the end of 2020 96 billion lei, that is 20 billion Euros. Previously the PM Ludovic Orban had mentioned the stipulation, upon the budget adjustment, of additional funding for the healthcare sector, the farmers affected by the drought and the local authorities, particularly those affected by the pandemic, and the town halls that have initiated investment projects and can no longer afford the co-financing. In another development, the EC says that, for the moment, no decision should be made in relation to the application of further measures within Romania’s excessive deficit procedure, in the context of the big uncertainties caused by the new coronavirus pandemic. In its autumn forecasts, the EC estimates that Romania’s deficit will exceed 10% of the GDP in 2020 and will continue to grow in the coming years.




    Markets — Activity in enclosed market places will be resumed as soon as epidemiological conditions allow it and citizens’ safety can be ensured — said the Romanian PM Ludovic Orban at the consultations held on Wednesday alongside the agriculture minister Adrian Oros with the representatives of the associations of greengrocers, small producers and beekeepers. He explained that, at present, activity is allowed in open-air markets and that the measure to temporarily suspend enclosed markets was taken to protect the citizens’ health, especially of the elderly. Farmers’ organizations had previously protested against the closure of enclosed agrifood markets. They asked for compensations to make up for the losses incurred by peasants and small producers who were affected by the markets’ closure. (tr. L. Simion)

  • September 22, 2020

    September 22, 2020

    Covid-19 RO. The Covid-19 epidemic is currently growing stronger in Romania. For the first time, more than 9,000 new cases were reported in one week. The rate of positive results against the total number of tests performed increased and the transmissibility index is higher than 1. The most recent report indicates 1059 new cases of infection in the past 24 hours. The total number of deaths, from the end of February until now, has reached 4,503. There are currently 496 patients in intensive care, out of a total of over 7,200 in hospitals. However, authorities say that if measures are taken to prevent the virus from spreading, the number might drop from mid next month. On the other hand, one week after the start of the school year, cases of students and teachers diagnosed with Covid-19 have already been reported. Data published by the Ministry of Education show, though, that the number of schools that offer courses exclusively online has decreased and that of the units in which the courses are held in a hybrid system has increased. We remind you that schools in Romania operate on the basis of three scenarios: green, which involves the physical presence in school, yellow, which combines classical and online education, and red – distance learning.



    Pandemic. The number of cases of Covid-19, globally, is close to 31.5 million, and the number of deaths stands at 970 thousand. More than 23.1 million people have been cured, according to the latest data published on the worldometers.info platform. The British Prime Minister Boris Johnson is addressing the nation today to announce new measures to counteract the coronavirus after the alert level for COVID-19 has risen from 3 to 4, which means that the transmission is growing exponentially. In Spain, which reports about 3,000 new cases a day, travel restrictions apply in several localities and much of the capital this week to limit the spread of the coronavirus. Italy has decided to introduce tests to detect the infection with coronavirus for all citizens coming from the red zones of France. US President Donald Trump has said that the coronavirus pandemic, which has claimed nearly 200,000 lives in the United States, does not affect young people, but only the elderly who suffer from heart disease or other ailments, which has been contradicted by data provided by health experts. On the other hand, the World Health Organization has announced that it wants to have 2 billion doses of vaccine available by the end of next year. The goal is for most people in all countries to be vaccinated, not all people in just a few countries, says WHO chief Tedros Ghebreyesus. More than 60 rich countries, including neither China nor the United States, have joined a WHO-implemented device to facilitate poor countries access to a vaccine against the new coronavirus.



    Budget. The Romanian Parliament gathers today to debate and vote on the budget adjustment bill, a draft that differs substantially from the one submitted by the government, after, in committees, the main opposition party, the Social Democratic Party, introduced amendments with a considerable budgetary impact and which the Liberal executive said could not be sustained by the economy. The amendments adopted by the joint budget committees aim to increase the pension point by 40% from 1 September, and not by 12%, as proposed by the government. The Social Democrats also voted to increase teachers salaries this year and allocate additional money to local authorities. The Social Democrats believe that the sums for raising pensions can be found in measures that the government can take in the future, including by creating new jobs or recovering arrears. Instead, Prime Minister Ludovic Orban explained that the changes adopted in the committees run counter to Romanias interests. These involve a total expenditure surplus of 6.3% of the GDP, the prime minister said, adding that all available constitutional and legal instruments will be used, including a new adjustment, to prevent them from entering into force. Moreover, he has stated that the budget “can no longer afford to increase spending at the moment” and called on all political forces not to support in Parliament the report of the specialized committees on budget adjustment.



    Central Bank. The National Bank of Romania has issued a warning about the risks of a 40% increase in pensions. According to the Convergence Analysis Report, published on the NBR website, this measure would increase the budget deficit next year to over 11% of the GDP. A high systemic risk is possible by worsening the state of the public budget, followed by a reaction of the financial markets that could seriously affect the economy, making it difficult to return in 2021, Central Bank specialists say. “Instead of an orderly correction over several years, we would be forced to a disorderly correction, which will be very costly economically and socially” , the report also reads.



    Open Skies. A joint mission of Romania, France and Germany is conducting an observation flight in Russia until Friday, part of the “Open Skies” agreement with Moscow. The flight is performed on board a Romanian specialized aircraft Antonov 30, unarmed and equipped with aerial photography equipment. The plane and equipment were certified internationally, including with the participation of Russian specialists, which excludes their use for purposes other than those provided. During the flight, whose route is agreed with the Russian side, Russian specialists will be on board the plane, who will control the observance of the mission parameters and the use of the equipment. The Open Skies Agreement was signed in 1992, after the end of the Cold War, by 23 OSCE member states, as a measure to increase confidence in arms control and compliance with disarmament agreements. In recent years, Russia and the United States have accused each other of violating the agreement, so that in May this year the United States announced its withdrawal from the agreement within six months. The decision has been criticized by a majority of European NATO members, while Russia has said it will remain part of the agreement.



    Tennis. Romanian Simona Halep consolidated her second position in the world ranking of professional tennis players (WTA), announced on Monday, after winning the title at the Premier 5 tournament in Rome. It is the third tournament won by Simona Halep this year, after those in Dubai and Prague. Halep is now less than 1,500 points behind leader Ashleigh Barty, who will not be taking part in the Roland Garros tournament, so the Romanian could return to the first position. Four other Romanians are in the top 100, Patricia Ţig, who remains on 58th , Irina Begu, who climbed five places and is 72nd, Sorana Cîrstea, who went down one step to 83rd, and Ana Bogdan, on 93rd position. (M. Ignatescu)


  • September 16, 2020 UPDATE

    September 16, 2020 UPDATE

    COVID-19 – Romania reports
    over 107,000 confirmed Covid-19 cases since the start of the pandemic in late
    February. 471 patients are in intensive care, out of nearly 6,900 hospitalized
    across the country. So far the death toll stands at 4,285. Meanwhile, 2 days
    after the start of a new school year, several schools in the country went into
    the so-called red scenario, with all classes held online, after teaching staff
    tested positive for Covid-19. In Romania the green scenario involves in-person
    classes, and the yellow scenario is a blend of online and face-to-face
    teaching. In other news, the Health Ministry announced purchasing double the
    amount of flu vaccines compared to last year. Three million vaccine doses will
    be given for free, especially to people over 65, to chronic patients,
    particularly those with respiratory and heart conditions, to institutionalized
    children and elderly, to healthcare personnel and pregnant women.




    REPORT – The report of the
    Budget and Finance Committees of the Chamber of Deputies and the Senate
    regarding the budget adjustment law has been approved. The report will next be
    submitted to debate and vote in Parliament. Acting on the proposal of the
    Social-Democrats, who are currently holding majority in Parliament, MPs in the
    Committee repealed the article providing for a 14% increase in the pension
    point, which means the law on the public pension system still stands. The
    latter stipulates at 40% increase of pensions starting this autumn. MPs also
    voted for an increase in the base salaries of teaching staff starting this
    year.




    ELECTION – President Klaus Iohannis on
    Wednesday called on Romanians living in the Diaspora to register for postal
    voting for the legislative election, saying there are no guarantees polling
    stations would be opened in all countries. Also on Wednesday, the President
    ratified a law allowing Romanians abroad to vote for the legislation election
    of December over the course of two days. The vote can be extended until
    midnight on the second day, but only for those voters inside the polls.
    Romania’s Foreign Minister has also recommended to all Romanians residing abroad
    to opt for postal voting, the safest and simplest way allowing them to exercise
    their constitutional right to vote in the delicate context generated by the
    COVID-19 pandemic.




    TALKS – Foreign Minister
    Bogdan Aurescu on Wednesday had talks with his counterpart from Cyprus, Nikos Christodoulides. The two
    officials appreciated the level of bilateral relations, expressing an interest
    to boost political and diplomatic dialogue as well as sectorial cooperation.
    Minister Bogdan Aurescu underlined the importance of the Romanian community in
    Cyprus, which represents a bridge between the two countries, hailing
    cooperation at the level of the Diaspora, including a Memorandum of
    Understanding signed in 2018 in this field, which is yielding real benefits.




    FLIGHTS – The Foreign Ministry in
    Bucharest announced that commercial flights to and from Poland will resume
    starting Wednesday. The measure adopted by Warsaw authorities will be in place
    until September 29, as Poland is taking new measures regarding incoming and
    outgoing flights in the context of the COVID-19 pandemic. The Ministry also
    states that people traveling to Poland from another EU Member States, as well
    as from Norway, the Swiss Confederation, the Republic of Iceland and the
    Principality of Lichtenstein are still permitted entry to this state without
    being subject to other restrictions or special measures such as compulsory
    quarantine or self-isolation.




    STATE OF THE
    UNION – European Commission President, Ursula von der Leyen on Wednesday
    delivered her first state of the union address before the European Parliament
    in Brussels. The coronavirus pandemic and the uncertainty it brings is not
    over, and the people of Europe are still suffering. It is a period of profound
    anxiety for millions, von der Leyen pointed out. The European official
    expressed her gratitude towards doctors and nurses and every other worker in
    the front line, who are taking risks so others won’t. Ursula von der Leyen
    announced the Union will create its own biomedical agency for advanced research
    and development, dubbed BARDA. Leyen
    said she would call a global health summit, due to take place next year in
    Italy. President von der Leyen went on to say that the Green Deal will be the
    engine of the EU’s economic recovery, in addition to digitization. The European
    official said the Single Market is key to economic recovery, aiming to replace
    coal with hydrogen, thus helping achieve a climate-neutral economy. Ursula von
    der Leyen also announced the European Commission is proposing to increase the
    2030 target for emission reduction to at least 55%.




    TENNIS – Romanian tennis
    player Simona Halep, world no. 2, on Wednesday got through to the round of 16
    at the WTA tournament in Rome, where she is seeded first. Simona defeated
    Jasmine Paolini of Italy (99 WTA) 6-3, 6-4. Also in the women’s singles, Irina
    Begu (77 WTA) will play Johanna Konta (13 WTA) of Great Britain on Thursday. In
    the women’s doubles, Romanian Raluca Olaru and Anna-Lena Friedsam of Germany
    qualified to the quarterfinals after defeating Miyu Kato of Japan and Sabrina
    Santamari of the Untied States, 6-4, 6-3. Also in the doubles, Simona Halep and
    Monica Niculescu will play Shuko Aoyama and Ena Shibahara of Japan in the round
    of 16. Totaling some €1.7 million dollars, the tournament in Rome is a Premier
    5 competition and is unfolding with the full observance of pandemic-prevention
    measures.




    (Translated by AM Popescu & V. Palcu)





  • August 14, 2020

    August 14, 2020

    State of alert. The Romanian Government is to discuss, in todays meeting, a decision on extending the state of alert by 30 days, as of August 16, and the measures to be applied over this period to prevent and combat the effects of COVID-19. This is the third time since the start of the pandemic that the Executive has resorted to this measure to prevent the spread of infections. In Romania, so far, at least 66,600 cases of people infected with the new coronavirus have been confirmed, and over 31,500 patients have been declared cured. The Strategic Communication Group has also announced that 478 patients are in intensive care. The total number of deaths due to COVID-19 has reached 2860. Globally, the coronavirus pandemic has resulted in more than 757,000 deaths since December, and the number of infections has exceeded 21 million, according to worldometers.info. Nearly 14 million people are cured. France Presse reports that the number of cases could be much higher, as some countries test only serious cases, others use retests to monitor patients condition, and some poor countries have limited screening capabilities.



    Budget. The Romanian Executive is discussing, today, the second budget adjustment this year. The Minister of Finance, Florin Cîţu, has explained that the budget deficit is increasing due to the drop in the budget revenues caused by the economic crisis and due to the increase in expenses to fight the pandemic. However, more money will go to health, employment, education and transport. The finance minister has given assurances that the current budget adjustment will allow pensions to be increased this year. On the other hand, the Romanian economy registered a decline of 12.3% in the second quarter of this year compared to the first quarter, and 10.5% compared to the second quarter of 2019, according to the National Institute of Statistics. In the first six months of this year, it decreased by 3.9% as against the same period last year. Florin Cîţu announced on Thursday evening that the National Commission for Strategy and Prognosis also revised the estimates regarding the evolution of the Romanian economy in 2020, so that, currently, the institution forecasts a contraction going up to 3.8%, compared to 1.8% previously. According to the summer economic forecasts, published by the European Commission, Romanias GDP will register a significant drop, of 6%, in 2020.



    Navy Day. Romanian Navy Day is traditionally celebrated on August 15, the Christian holiday of St. Mary. This year, however, the events were adapted to the new conditions imposed by Covid-19. Thus, unlike in previous years, this years edition, dedicated to the 160th anniversary of the establishment of the Romanian Naval Forces, takes place mainly online. The official Facebook page of the Naval Forces has already launched thematic contests and virtual projects that offer the public the opportunity to get to know the military sailors better. Recitals of the Military Music of the Naval Forces were also streamed online, as well virtual tours of Romanian ports. On Saturday, however, on Navy Day, there will be parades of ships on the Black Sea and the Danube. In order to prevent the gathering of large masses of people, public access will not be allowed.



    Agreement. Israel and the United Arab Emirates have reached a historic agreement to normalize their relations, brokered by the United States. It is the greatest progress for peace between Israel and the Arab world in 26 years and the basis of the third agreement between Israel and an Arab nation, Prime Minister Benjamin Netanyahu said. Israel also has peace agreements with Egypt and Jordan. The Palestinian National Authority termed the agreement to normalize the relations between Israel and the United Arab Emirates a “betrayal” of the Palestinian cause and called for an emergency meeting of the Arab League to denounce the agreement. According to France Presse, normalizing the relations between Israel and Gulf powers such as Bahrain, Saudi Arabia and the United Arab Emirates is part of the Trump administrations plan for the Middle East, welcomed by Israelis but rejected by Palestinians.



    Protests. Tens of thousands of people took to the streets in Belarus on Thursday night to denounce the violent repression of the protest movement triggered by the controversial re-election of President Alexander Lukashenko, FP reports. On Thursday, authorities announced the release of more than 1,000 protesters, while the presence of police on the streets of the capital Minsk was much less numerous than in previous evenings. More than 6,700 people have been arrested since Sunday, and numerous cases of violent treatment and torture of detainees have been reported since then. Amnesty International said in a statement on Thursday that there had been cases of protesters “stripped, beaten and threatened with rape” during detention. More than 1,000 researchers in Belarus have signed a letter against violence, and medical staff have gathered in front of the health facilities where they worked. According to information published by the opposition media, protest actions took place in important state factories, and journalists from the state press have announced their resignation in the last days.



    Tennis. Romanian tennis player Simona Halep, world number two and first-seed is today playing against the Polish Magdalena Frech (174 WTA), in the quarterfinals of the WTA tournament in Prague, with over 200 thousand dollars in prize money. Also in the quarterfinals, another Romanian, Ana Bogdan, got injured and had to withdraw when the score was 5-2 in her favor, which benefited the Czech Kristyna Pliskova. In the doubles competition, the pair of Romanian players Monica Niculescu and Raluca Olaru qualified for the semifinals and will play against the winners of the game between Barbora Krejcikova / Katerina Siniakova (Czech Republic / N.1) and Veronika Kudermetova / Anastasia Pavliucenkova of Russia. (M. Ignatescu)


  • August 13, 2020 UPDATE

    August 13, 2020 UPDATE

    COVID-19. The Strategic Communication Group in Bucharest announced on Thursday another 1,454 cases of infection with the new coronavirus. 66,631 cases have been confirmed in Romania since the beginning of the pandemic more than five months ago. Some 31,547 patients have been declared cured and discharged from hospital, whereas 478 patients are still in intensive care units. The death toll stands at 2,860. Romanias Health Minister Nelu Tataru has said that the current situation requires an extension of the state of alert. The Romanian president Klaus Iohannis has again made an appeal to responsibility, asking people to wear masks and observe social distancing. He has stated that local elections are possible on September 27th, as established by Parliament, provided all prevention measures are observed. According to him, Romania has already registered for 10 million doses of vaccine when this is ready and certified at the EU level.



    Risk areas. Germany has added Bucharest and another 10 Romanian counties to its list of high risk areas during the Covid-19 pandemic. The new areas in Romania are the counties of Bacau, Braila, Brasov, Dambovita, Galati, Gorj, Ilfov, Prahova, Vaslui and Vrancea. According to the Foreign Ministry in Bucharest 7 counties were already part of the aforementioned list, which now includes 17 Romanian counties as well as the capital city. Under the new regulations, all people coming to Germany from one of the aforementioned regions in Romania, irrespective of their citizenship, must show a negative Covid-19 test taken 48 hours before their arrival, which has to be translated in German or English or take a free test 72 hours upon their arrival. Those who do not comply with the rules could be subject to fines up to 25 thousand Euros. If the test is done in Germany, subjects are requested to go into self isolation until the result is known. Travelers transiting Germany do not have to comply with the aforementioned rules.



    Budget. Health, transport and education will receive extra money at the next budget adjustment, the Romanian Minister of Finance, Florin Cîțu announced in a press conference on Thursday. He said that for health-care, a priority area this year, the amounts allocated increased by about 45%. Câţu also announced that the budget deficit would increase from 6.7% to 8.6%. He also said the government will increase the level of investments, and pensions. This will be the second budget adjustment in 2020.



    Poll. Almost one quarter of the Romanian employees say they need to take steps towards a new career as the companies they are presently working for have been seriously affected by the current economic situation. A poll conducted by an online recruitment platform shows that more than 20% of those interviewed are ready to start from scratch in their new careers. Most of the Romanian employees, (70%) are looking for a secure job from the context of the present Covid pandemic. A quarter of the interviewees have completely ruled out jobs in the Horeca industry while 22% believes the best jobs are those in companies or fields tightly connected to the online environment. The poll was carried out between July 1st and the 10th on almost 13 hundred people.



    FDI. Foreign direct investments in Romania decreased in the first six months of this year, to 352 million euros, from 2.7 billion euros in the similar period of 2019 – the National Bank announced on Thursday. On June 30, Italy had the largest number – 49,000 – of companies established in Romania, but the Netherlands occupies the first position in terms of total investment value, with 12.8 billion euros. There are currently about 230,000 foreign companies in Romania, which have invested almost 64 billion euros.



    Diplomacy. The head of the Romanian diplomacy, Bogdan Aurescu, had a telephone conversation, on Thursday, with his Turkish counterpart Mevlut Cavuşoglu, at the request of the Turkish side. The two ministers discussed the development of bilateral relations, with a focus on common topics of interest, including in the context of the COVID-19 pandemic. The two officials also examined the recent developments in the Eastern Mediterranean, a topic that will be on the agenda of the Extraordinary Meeting of the Foreign Affairs Council on Friday, in which the Romanian Minister will also participate.. With regard to this subject, Bogdan Aurescu underlined Bucharests willingness to support, including from within the EU, the de-escalation of the situation, given both Romanias ability to understand the particularities and interests of the region and its expertise in maritime delimitation and in resolving this type of dispute by applying international law and using its specific instruments. Turkey and Greece, which are NATO allies, are embroiled in a dispute over the exploration of oil fields in the Eastern Mediterranean. Greece claims that Turkeys exploration in the area is illegal, but Ankara claims that it is done in its exclusive economic area.



    Agreement. Israel and the United Arab Emirates (UAE) have signed, under the auspices of the United States, a “historic peace agreement” and will establish diplomatic relations, US President Donald Trump announced on Twitter on Thursday. The deal is part of a broader agreement under which the Israeli authorities will end the annexation of the Occupied Palestinian Territories. The normalization of relations between Israel and the United Arab Emirates is a “historic day,” Israeli Prime Minister Benjamin Netanyahu responded. The agreement was also confirmed by the Emirati authorities. The UAE will thus be the third Arab country to establish diplomatic relations with Israel, after Egypt and Jordan.



    Anonimul. The Independent International Film Festival Anonimul is underway in Sfantu Gheorghe, in the Danube Delta. The multi-award winning Colectiv was screened on Thursday. This documentary, produced and directed by Alexander Nanau, depicts events taking place in the first year after a devastating blaze that killed 64 in a night-club in Bucharest five years ago. The plot chiefly follows the relationship between the authorities and journalists in their attempt to find out the truth about the event. The 17th edition of the Anonimul festival is being held outdoors, with a maximum of 400 participants in every screening, in compliance with the measures in place, due to the coronavirus pandemic.



    Tennis. Romanian tennis player Simona Halep on Thursday qualified for the quarter finals of the WTA tournament in Prague, a competition with over 200 thousand dollars in prize money. She defeated Barbora Krejcikova of the Czech Republic. Next she will take on Magdalena French of Poland. Ana Bogdan of Romania has already qualified for the quarters after the withdrawal of her opponent, Lesia Tsurenko of Ukraine, and will be up against Kristyna Pliscova of the Czech Republic. In the doubles contest, Monica Niculescu and Raluca Olaru have defeated Lidia Morozova of Belarus and Yana Sizikova of Russia and have qualified for the semifinals.


  • Budget adjustment in the context of the COVID-19 pandemic

    Budget adjustment in the context of the COVID-19 pandemic

    The Romanian Government on
    Wednesday passed an emergency decree operating an adjustment of the state and
    social security budgets for 2020. The adjustment takes under advisement the
    latest economic data in the context of the crisis caused by the COVID-19
    pandemic. Under the new budget adjustment, additional funds will go to
    healthcare, labor, public finance, law and public order and public works. The top
    priority is to secure budget resources to fund the financial assistance
    measures adopted by the Government in recent weeks. According to the head of
    the Prime Minister’s Office, Ionel Danca, the Government has tripled the funds
    of the budget scheme guaranteeing loans for working capital and investment
    addressed to SMEs. Enterprises can get loans at 100% subsidized interest rates,
    zero interest rate and zero administration fees until the end of the year. On
    Friday, SME Invest, the biggest support program addressing Romanian SMEs in
    Romania, is due to kick off. Over 40,000 SMEs will take part in the SME Invest
    program. This is the only assistance scheme backed by the European Commission
    at present, Finance Minister Florin Citu has said. The budget adjustment has
    also provided the necessary funding required to pay technical unemployment
    benefits to all categories of employees whose employment agreements are
    suspended right now and for all people whose activity is based on different
    types of agreements, such as self-employed persons, individual enterprises or
    other types of professionals, as stipulated by the Civil Code. The healthcare
    sector was allotted funding both to ensure the necessary amount of medical and
    sanitary materials and equipment, needed to combat the pandemic, as well as to
    pay health insurance benefits and other benefits such as medical leaves, Ionel
    Danca explained. The Romanian official said the budget adjustment factored in
    all the macroeconomic data submitted by the National Commission for Strategy
    and Forecast. Ionel Danca:


    According to data issued by
    the National Commission for Strategy and Forecast, the economy will shrink by
    1.9% compared to the original economic growth forecast of 4.1%, based on which
    the state budget was designed. This means the GDP will shrink by as much as 6%
    this year. Accordingly, budget allocations were adjusted to reflect the new
    data regarding the volume of economic activity and estimate revenues for this
    year, while also taking into account the Government’s top priority during this
    period, which is to ensure the necessary resources to support sanitary efforts
    aimed at preventing the pandemic from spreading and at the same time to limit
    the negative economic and social effects of this crisis.


    Ionel Danca went on to say
    that the budget allotted to efforts aimed at combating the pandemic now stands
    at 3% of the GDP. Previously Finance Minister Florin Citu said the Government
    is working on a set of major economic recovery measures which will be made
    public after the state of emergency is lifted.


    (Translated by V. Palcu)

  • The state of emergency to be extended

    The state of emergency to be extended

    The Romanian President Klaus Iohannis has announced that the state of emergency declared on March 16 to fight the spread of the new coronavirus will be extended by another month. As compared to other countries, the number of people infected with the new virus in Romania has not been very high so far, said President Iohannis who, nevertheless, warned the population not to relax yet and urged them to continue observing the social distancing measures imposed by the authorities, given that the peak of the pandemic has not been reached yet.



    Klaus Iohannis: “Following a thorough analysis, we have concluded that we need to extend the state of emergency. Therefore, I have called on the Government to come up with proposals that should be included in the next decree. This week we will draft the text and early next week I will issue a new decree that extends the state of emergency by one month. This extension is absolutely necessary to control the evolution of the pandemic.



    In relation to protective equipment, the president has announced that a new transport of face masks and hazmat suits for the medical staff will arrive in Romania this week.



    Klaus Iohannis: “Everyone knows that it has been a little complicated to purchase protective equipment: masks, hazmat suits, and ventilators. The measures taken by the government have now produced the first significant results. This week well receive 2.5 million face masks for the medical staff, almost 5 million masks for the gendarmes and police and as many as 8 million masks for the population. Also, in the coming days we are waiting for almost 500 thousand hazmat suits for physicians and other medical staff.



    Furthermore, the Romanian government has approved bonuses for the entire medical staff that gets in contact with patients infected with Covid-19. 75 thousand physicians, auxiliary staff, ambulance workers and paramedics that treat such patients will receive 2,500 lei, that is a little more than 500 Euros per month. Only the income tax of 10% will be levied on the sum, the other contributions not being deducted.



    At the same time, one thousand social and community workers will receive 2 thousand lei (around 400 Euros) per month to take care of people isolated in their homes, lonely people or old people over 65. The money, a total of 810 million Euros, comes from European funds, which will be used to also cover entirely for all the purchases of medical equipment.



    In another development, on Monday, the Romanian government discussed the first budget adjustment for 2020. The finance minister Florin Citu has announced that most of the money will be channeled to the health and labor ministries. (translation by L. Simion)