Radio România Internațional

Tag: CAP

  • Energy price caps, extended

    Energy price caps, extended

    In Romania, the energy price cap will further apply after April 1.

     

     

    The government in Bucharest has announced the extension of the electricity and natural gas price cap. This will apply after the end of next month, when the current price compensation mechanism was due to expire. For electricity, the cap will be extended for three months, until the end of June, and for natural gas, the extension will be for one year, until March 31, 2026. This extension will respect the scheme that is currently in force and aims to protect citizens’ incomes, said Energy Minister Sebastian Burduja. According to him, the ministry opted to extend the energy price capping period because, as calculations show, had it been liberalized now, it would have prompted increases in bills ranging from 60% to 100% for 95% of the consumption points. He specified that the one-year extension of the natural gas cap is aimed at restoring deposits for next winter, which would be done at low prices.

     

    Burduja also explained that, in making the decision to extend the cap, it was considered the fact that, in recent months, for reasons unrelated to Romania, prices on international markets have increased significantly, after the transit of Russian gas through Ukraine was halted. The price of gas has increased by up to 65% on the European market and the price of electricity by around 25%. Sebastian Burduja also said that the compensation-cap scheme ensured, according to Eurostat data, the fifth lowest price for electricity and the fourth lowest price for gas in the entire European Union. For natural gas, the maximum price will remain the same for another year, until March 31, 2026, because, the Energy Minister specified, at the end of the current cold season, deposits will reach a very low level, and their refill will mean an increased demand for gas, which will implicitly lead to price increases and much higher bills next winter for the population.

     

    In the meantime, the Ministry of Labor will develop a support mechanism, energy cards or vouchers that will later be granted to vulnerable people as support to cover costs. The Government’s decision to extend the electricity and natural gas price cap  was taken on the same day that Hidroelectrica, a state-owned company and the main producer and supplier of electricity in Romania, announced an increase in electricity prices by approximately 60% starting April 1. Minister Burduja recommends  Romanians to constantly check the website of the National Energy Regulatory Authority and opt for the best offer. (EE)

  • Will the cap on energy prices stay on?

    Will the cap on energy prices stay on?

     

    After the energy market was deregulated on January 1, 2021, in the midst of the Covid-19 pandemic, Romania was among the European countries the most severely affected by record-high electricity and natural gas prices. For half a year, in the chaos that set in amid ineffective communication by the authorities at the time, both household and business consumers suffered. The situation became even more complicated after Russia’s invasion of Ukraine, when the entire European market was deeply shaken, including Romania.

     

    Gradually, however, the situation at national level calmed down, including as a result of the government’s decisions to cap prices. By offsetting electricity and natural gas bills, individuals and industrial operators have been protected from exorbitant prices.

     

    As of April 1 this year, however, the capping should end, at least in theory. Some household consumers have already received written notices to this effect from their energy suppliers. Against the backdrop of steep inflation that has meant a decrease in living standards for many Romanians, significantly higher electricity or gas bills–even doubled in certain cases–would be a hard blow to the family budget.

     

    In this context, the Romanian government could take a decision this week on keeping on the current offset and capping scheme. The solution would be implemented through an emergency order.

     

    The energy minister Sebastian Burduja spoke out however in favour of better targeting this support towards those vulnerable consumers for whom paying for energy utilities represents too great a burden:

     

    Sebastian Burduja: “We expect to have a final decision in the Government, therefore a normative act, an emergency order that will establish exactly what the period after April 1 will look like, namely whether this basic scenario and the same capping and offsetting scheme will be kept for a period of time, let’s say until the end of the year, as the prime minister suggested, or whether there will be a formula to better target the aid for vulnerable Romanians.”

     

    Minister Burduja’s message for dissatisfied consumers is that they can change their supplier at any time:

     

    Sebastian Burduja: “Consumers have full power in their hands. This power means changing their supplier whenever they want. There are no contracts that hold them captive. So, when they receive an offer that they don’t like from their supplier, they go to the National Energy Regulatory Authority website and in a few minutes, online, they can change their supplier to the one that offers them the lowest price or the best conditions, in their opinion.”

     

    And to end with a joke, one of the suppliers in Romania reminds its customers that, in fact, the cheapest energy is the one they don’t consume. (AMP)

  • November 7, 2024

    November 7, 2024

    MINIMUM WAGE – The national minimum wage will go up to the equivalent of 810 EUR starting January 1, 2025, according to a government decree expected to be adopted in today’s meeting. The government’s decision practically complies with the European directive that requires that the minimum wage in member states should not be less than 50% of the average gross wage.

     

    EPC – The President of Romania, Klaus Iohannis, is attending the two-day Summit of the European Political Community (EPC) and the informal meeting of the European Council, organized in Budapest, the Presidency reports. President Iohannis will call for a united and firm position of European leaders regarding the security developments in the region, as well as the continuation of support for the sovereignty, independence and territorial integrity of Ukraine, in the context of Russia’s war of aggression. Also, the president of Romania will take part in a discussion panel addressing issues related to migration, on which occasion he will plead for the identification of solutions at European level in the field of managing illegal migration, in the short term, as well as through a more comprehensive approach in the long term, which would allow for greater cohesion and efficiency at European level in addressing this phenomenon. The European Political Community is an intergovernmental format of political dialogue between European states, seeking to boost cooperation on issues of common interest, in order to strengthen security and stability on the European continent.

     

    AGRICULTURE – The Common Agricultural Policy needs a separate budget, and farmers need to be sure they will receive the funds without limitations linked to the rule of law or other unrelated conditions, European Commissioner for Agriculture, Janusz Wojciechowski, said in Bucharest. On the sidelines of his official visit to Romania, the EU Commissioner attended the National Conference of the Romanian Farmers’ Club jointly with the Minister of Agriculture, Florin Barbu. The European official said that, at EU level, the agricultural trade balance with third countries reached a record surplus of 70 billion EUR in 2023. The Conference was attended by farmers, high-ranking Romanian and European officials with responsibilities in the development of agriculture policies and strategies, leaders in the field of agricultural technologies, as well as representatives of farmers’ associations at European and national levels.

     

    SEDM – The Republic of Moldova is a full member of the South-East Europe Defense Ministerial Process (SEDM), hosted by Tirana, Albania, Romania’s Defense Minister, Angel Tîlvăr, said during a meeting with his Moldovan counterpart, Anatolie Nosatîi. Talks focused on recent security developments in the Black Sea region and Moldova’s European integration efforts. Minister Tîlvăr emphasized the importance of firm support for the Republic of Moldova in the face of security challenges and destabilization attempts, part of the hybrid actions of the Russian Federation. Angel Tîlvăr emphasized that the Republic of Moldova was the first state to sign a Partnership in the field of security and defense with the European Union, on May 21, a partnership that plays a key role in the modernization and strengthening of the armed forces of the Republic of Moldova.

     

    US ELECTION – Leaders from all over the world continue to react after Donald Trump announced his victory in the US presidential election. The current US President, Joe Biden, invited him to the White House and expressed his commitment to ensure a smooth transition. In turn, the president of the European Council, Charles Michel, emphasized the “enduring alliance” and the “historic link” between the EU and the USA. NATO Secretary General Mark Rutte said that Donald Trump’s leadership will once again be essential to keeping the Alliance strong.

     

    GERMANY – Germany’s liberal party has announced that all its ministers will leave Olaf Scholtz’s governing coalition, after the Chancellor fired Finance Minister Christian Lindner. Social Democrat Scholtz thus remains without a majority in the Chamber of Deputies. Scholtz has announced a confidence vote for January 15, which is expected to pave the way for snap elections in March. The bone of contention between Scholtz and his Finance Minister was covering the 2025 budget deficit, at a time when Germany is going through its second year of recession. Several economic sectors are struggling and announcing layoffs, such as the car industry.

     

    FOOTBALL – Romanian football champions, FCSB, are tonight playing the Danish side FC Midtjylland at home, in a match counting towards the 4th round of Europa League. In the first three fixtures, FCSB grabbed two wins, 4-1, at home, against Rigas FS of Latvia, and 1-0, away from home, against the Greek club PAOK Thessaloniki, coached by Romanian Răzvan Lucescu, and sustained one defeat, in Scotland, 0-4 to Glasgow Rangers. (VP)

  • European Commission versus farmers

    European Commission versus farmers

    The President of the European Commission, Ursula von der Leyen, proposed, on Tuesday, in the plenary session of the European Parliament in Strasbourg, the withdrawal of a draft law aimed at halving the use of pesticides in the EU. The bill is a basic element of the European Green Deal and plans to halve the use of phytosanitary chemicals by 2030 (compared to the period 2015-2017). The proposal, which was rejected at the end of November in the European Parliament, while the negotiations between the states had reached a deadlock, became a symbol of polarization, said the head of the European Commission in front of the MEPs gathered in plenary session. During the discussions, approximately 20 tractors and tens of farmers gathered in front of the European Parliament headquarters to put pressure on the MEPs.



    Security measures were increased in the area, to block the access of the protesters, who raised flags and placards with their demands. There were two distinct protests: one of the rural coordination, to denounce the import of products from countries like Ukraine, which are not subject to the same rules as in France, and another one of a confederation that opposes the new genetically modified organisms. Protests have recently taken place in several European countries. Spanish farmers blocked traffic on some of the most important highways on Tuesday, joining their European counterparts protesting high costs, bureaucracy and competition from non-EU countries. Many took to the streets with tractors, creating traffic jams throughout the country. Like their colleagues in France, the Netherlands, Belgium and Portugal, the Spanish farmers complain about the cumbersome European bureaucracy, the low prices they receive for their produce and the rising costs.



    Farmers in Greece also protested almost all over the country, strengthened regional roadblocks and organized rallies with tractors. They are asking for the revision of the Common Agricultural Policy of the EU, which, in their opinion, has considerably reduced their incomes, as well as for compensation for the losses suffered due to the high prices of the products necessary for crops. Demonstrations also spread to Germany and Poland. Italian farmers are also preparing for large-scale demonstrations in the coming days. Bulgarian farmers also protested on Tuesday by temporarily blocking the main roads and border-crossing points, including with Romania. At the end of last week, the government coalition in Bucharest reached an agreement with farmers and transporters. In Romania, hundreds of farmers and truck drivers protested against rising business costs, with convoys of tractors and trucks, thus slowing or blocking traffic on national roads near major cities, including around the capital. Also, the protesters briefly blocked a border crossing with Ukraine and tried to cut off access to the Black Sea port of Constanţa. (LS)

  • December 19, 2022 UPDATE

    December 19, 2022 UPDATE

    Schengen — There is no justifiable reason not to welcome Romania and Bulgaria into the Schengen area, because all the conditions for accession are met, said the President of the European Parliament, Roberta Metsola, on Monday in Bucharest. In a press conference with Romanian President Klaus Iohannis, she also stated that efforts were being made to solve this situation as soon as possible, even next year. ‘The external border of the European Union is defended. We see that all countries, including Romania, apply all components of the Schengen acquis, which answers any kind of concerns that could exist from this point of view, the Brussels official added. For his part, Klaus Iohannis said that the Schengen topic will not be on the agenda of the extraordinary European Council due on February 2023, and discussions will take place only on the sidelines of the meeting. We remind you that, at the beginning of the month, Austria blocked the Schengen accession of Romania and Bulgaria in the JHA Council, in contradiction with the position of the other member states, invoking issues regarding illegal migration.



    Visit – The Romanian Foreign Minister, Bogdan Aurescu, had meetings in Chisinau with the Moldovan President Maia Sandu, the Parliament Speaker, Igor Grosu, and the Prime Minister Natalia Gavriliţa, with whom he discussed the European course of the Republic of Moldova (an ex-Soviet state with a majority Romanian-speaking population). Aurescu reiterated Romanias full support for managing the wide-ranging crises that Moldova is facing and for advancing at a determined pace the reforms necessary for joining the European Union. He mentioned the prompt steps that led to the supply, by Romania, in a critical period of energy crisis, of over 80% of the electricity needs of the Republic of Moldova. There was also an in-depth exchange of assessments regarding the security situation against the backdrop of Russias war of aggression against the neighboring state, Ukraine. Economically, at the end of the year, a record value of 3.5 billion dollars of trade between Romania and Moldova is expected, increasing by approximately 46% as compared to 2021.



    Energy — The European energy ministers have reached an agreement on capping the price of natural gas, the Czech presidency announced on Monday in a Twitter post. The agreement comes after several weeks of talks on a package of emergency measures that have created divisions among member states in an attempt to respond to the energy crisis. According to documents consulted by Reuters, it was agreed that the gas price cap would be triggered when the quotes, at the Dutch Title Transfer Facility (TTF) gas hub in Amsterdam, reach 180 Euros for a Megawatt-hour (MWh) for three days. The same document shows that the cap could be introduced starting on February 15, 2023 and, initially, it will not apply to over the counter type transactions (outside the market).



    Revolution – In Timisoara, in western Romania, the demonstrations marking the 33rd anniversary of the anti-communist revolution of December 1989 continued. The demonstrations bring back to attention the courage and sacrifice of the martyr-heroes, as well as the need for the young generation to carry forward the spirit of freedom. These days have seen marches on the route of the Revolution, religious services, wreaths laying ceremonies, concerts, exhibitions, film screenings and debates and a pilgrimage to the monuments of the Revolution Memorial. The demonstrations will culminate on December 20, the day Timişoara was declared the first city free of communism in Romania. The uprising against the communist regime in Romania broke out in Timişoara on December 16, 1989 and, from December 21, extended to Bucharest and other cities of the country. All in all, over 1,000 people died and around 3,000 were injured in the fighting that took place in the only country in Eastern Europe where the regime change took place violently.



    Statistics — In 2021, the adjusted average annual salary for full-time employees in the European Union was 33,500 Euros, according to data published for the first time on Monday by the European Statistics Office (Eurostat). Last year, among the EU member states, the highest average annual salary was in Luxembourg (72,200 Euros), Denmark (63,300 Euros) and Ireland (50,300 Euros), and the lowest in Bulgaria (10,300 Euros), Hungary (12,600 Euros) and Romania (13,000 Euros). On the other hand, according to Eurostat, the hourly labor cost increased by 3.4% in the EU in the third quarter of the year, compared to the same period in 2021. The most significant annual advance was reported in Hungary and Bulgaria, but increases of over 10% also occurred in Lithuania, Poland, Greece and Romania.



    Museum — Romania will provide voluntary financial contribution to support the Museum of the Victims of Communism in Washington. The museum is worth 3 million dollars and is granted in a single installment. The contribution is intended for the construction of the museum, as well as the creation of the section presenting the victims of the communist regime in Romania. The Foreign Ministry, the Romanian Academy, the National Council for the Study of Securitate Archives and other institutions in Romania can provide information, for the purpose of a good representation of the victims of communism in Romania. (LS)

  • December 19, 2022

    December 19, 2022

    SCHENGEN The president of the European Parliament Roberta Metsola is
    on a 2-day working visit to Bucharest as of today, with a support message for Romania’s
    Schengen accession efforts. Today, Roberta Metsola is scheduled to have
    meetings with president Klaus Iohannis, PM Nicolae Ciucă and the speakers of
    the Chamber of Deputies and Senate, Marcel Ciolacu and Alina Gorghiu, and will
    address a joint Parliament meeting. On Tuesday, Roberta Metsola will have talks
    with young Romanians as part of an event called ‘Together we are Europe,’
    organised by the European Parliament Office in Romania in a partnership with
    the Law School of the University of Bucharest. According to the institution, during
    their dialogue with Metsola the young participants will be able to find out
    about the benefits of the European parliamentary democracy, ways to influence
    European policies, why it is important for them to get involved in protecting
    European democracy and how the decisions and policies of the European
    Parliament impact Europeans’ day-to-day lives.


    VISIT The Romanian foreign minister, Bogdan Aurescu, is on a 2-day
    official visit to Chişinău, at the invitation of Moldova’s deputy PM and
    minister for foreign affairs and European integration, Nicu Popescu. For 2 days,
    Bogdan Aurescu will have consultations with his counterpart, will be received
    by the president of the R. of Moldova Maia Sandu, and will have talks with PM Natalia
    Gavriliţa and with the parliament speaker Igor Grosu. They will discuss aspects
    related to countering the war of aggression waged by the Russian Federation
    against Ukraine, as well as topics related to cooperation in the field of
    energy security, stepping up sectoral cooperation, economic cooperation and the
    assistance measures taken by Romania to the benefit of the R. of Moldova. A
    major topic for discussion will be Moldova’s progress in its EU accession
    efforts, after the country was granted the accession candidate status in June
    2022, and Romania’s concrete support in this respect.


    ENERGY EU energy ministers convene today in Brussels in an attempt
    to reach an agreement on a natural gas price cap, in the context of the rise in
    energy prices triggered by the war in Ukraine. Last week, they failed to reach
    consensus on this topic. The participants will also try to come up with a
    general approach on a proposed reduction of methane emissions in the energy
    sector. The draft regulation requires oil, natural gas and coal operators to
    measure, report and check methane emissions. Moreover, the EU energy ministers
    will try to reach an agreement with respect to the proposed REPowerEU directive,
    which modifies the EU legislation on renewable energy, energy efficiency and
    the energy performance of buildings. The proposal aims to step up the use of
    renewable energy. On the other hand, the Czech presidency of the EU Council
    will present a report on the progress made with respect to the natural gas
    package, which includes a proposed directive and a proposed regulation on
    single market norms for gas from renewable sources, natural gas and hydrogen.


    COMMEMORATION In Timişoara, western
    Romania, events carry on marking 33 years since the anti-communist revolution
    of December 1989. The events highlight the courage and sacrifice of the
    Revolution heroes, and the need for the younger generations to carry on the
    spirit of freedom. After the marches, religious services, exhibitions, film
    screenings and roundtables organised in the previous days, today a pilgrimage
    will be held at the monuments making up the Revolution Memorial. Short reels made
    by young artists will also be screened in schools, and the traditional Rockford
    revolution festival is also scheduled for today. Also today, the members of
    the bereaved families are leaving for Bucharest to retrace the route on which
    the bodies of 43 revolution participants from Timisoara were sent for
    incineration. The events devoted to the 33 years since the Revolution will
    culminate on Tuesday, December 20, Victory Day, when Timişoara was declared the
    first city free of communism in Romania. The uprising against the communist
    regime in Romania began in Timişoara on December 16, 1989 and spread to
    Bucharest and other cities in the country. Over 1,000 people died and some
    3,000 were wounded in the clashes that took place on that occasion.


    FOOTBALL Argentina is the world’s new football champion. In the
    final of the Qatar tournament on Sunday, Argentina defeated the previous
    champions, France, after penalty shootouts. This is the 3rd world
    championship won by the South Americans, after the title in 1978 and the one in
    1986. The next world championship, held in 2026, will be hosted jointly by the
    US, Canada and Mexico. (AMP)

  • European money for the Romanian farmers

    European money for the Romanian farmers

    After more than a year and a half in which the Romanian Agriculture Ministry consulted with representatives of public and private organizations in the field and drafted 1,900 pages for the National Strategic Plan 2023 – 2027, the Romanian farmers and Romanian agriculture will benefit from help. The European Commission has approved the Plan worth almost 16 billion Euros. Of this amount, approximately 10 billion Euros represent direct payments and sectoral interventions, and the rest will be allocated for rural development. According to the Agriculture Minister, Petre Daea, Romania’s Plan is meant to improve farmers’ means of subsistence and their competitiveness. Romania uses about 40% of its budget for rural development to encourage ecological practices in areas of high natural value, in order to protect biodiversity. And in order to maintain the attractiveness of rural areas in Romania, the plan will support the creation of more than 12,000 jobs in these areas, with financing for enterprises and infrastructure.



    Moreover, farmers will be supported to adopt new innovations, from precision agriculture to agroecological production methods – the minister promises. Petre Daea also stated that the new document includes a support instrument for farmers with losses, by which compensation is granted in case of disasters, the total amount allocated being almost 400 million Euros. According to Petre Daea, this support instrument must be implemented urgently, through a very strict timetable, and the expected completion date is the third quarter of next year. By the end of the year, however, Petre Daea promises that compensations will be paid to Romanian farmers for the drought-affected crops sown last fall. He admitted that the 2021/2022 agricultural year was a difficult one, which put Romanian farmers to the test, in a context in which ‘the pedological drought affected the whole country.



    This is also seen in Romania’s corn production, which is the lowest in the last 15 years. Nevertheless, the minister has given assurances that the production obtained will ensure domestic consumption, estimated at approximately 7 million tons, with availability for export. Things were different in 2021, when according to the data of the National Institute of Statistics, Romania ranked on the first place in the EU both in terms of the area cultivated with corn and in terms of production, which was close to 15 million tons. As regards wheat, last year Romania occupied the fourth place in the EU in terms of cultivated area, but also in terms of production, with over 10 million tons, while the domestic consumption of wheat is estimated at 2.5 – 3 million tons per year. Since 2015, Romania has consistently taken the first place in the EU for the production and cultivated area of ​​sunflower – according to data provided by the National Institute of Statistics. (LS)


  • December 7, 2022 UPDATE

    December 7, 2022 UPDATE

    JHA — The Romanian Justice Minister, Cătălin Predoiu, will participate, in Brussels, between December 7-14, in the works of the Justice and Home Affairs Council and of the General Affairs Council (CAG) of the European Union. According to JHAC communique, on the sidelines and in the period between the two councils, the Justice Minister will have a series of bilateral meetings with counterparts from other member states and EU officials, in Brussels and Luxembourg. Within the JAH Council, minister Predoiu will present Romanias position regarding the legal instruments and European policies in the field of Justice on the Councils agenda. We remind you that the Home Affairs section of the JHA Council is to decide on the admission of Romania, Bulgaria and Croatia to the free movement Schengen Area.



    Schengen — Prime Minister Nicolae Ciucă welcomed, on Wednesday, the completion by the Parliament in The Hague of the procedure for approving the position of the Government of the Netherlands in favor of Romanias accession to Schengen. ‘We appreciate the recent cooperation with our Dutch partners and we consider that this result is a clear recognition of Romanias preparation,’ the Romanian Prime Minister Ciucă wrote on the Governments Twitter account on Wednesday. In turn, the Romanian Foreign Minister, Bogdan Aurescu, welcomed the favorable result of the vote, as a result of the close and intense political dialogue with the Dutch partners. Austria remains the only EU state that opposes the entry of Romania and Bulgaria.



    Statistics — The Gross Domestic Product of the European Union grew by 0.4%, and that of the Eurozone by 0.3%, in the third quarter of 2022, as compared to the previous three months, and Ireland, Cyprus, Malta and Romania had the more significant advance – shows the data published on Wednesday by the European Statistics Office (Eurostat). The economy grew by 2.3% in Ireland and by 1.3% in Cyprus, Malta and Romania. The most significant decline was recorded in Estonia (minus 1.8%), Latvia (minus 1.7%) and Slovenia (minus 1.4%). Among the EU member states, the most significant annual advance of the economy was recorded in Ireland (10.6%), Croatia (5.5%), Cyprus (5.4%), Malta (5.2%), Portugal (4.9%) and Romania (4.7%), the only decreases being in Estonia (minus 2.3%) and Latvia (minus 0.4%).



    CAP – The European Commission on Wednesday approved the strategic plans of Romania and Bulgaria within the Common Agricultural Policy. Almost 15 billion Euros will be made available for Romania. Bucharest’s plan aims at improving farmers means of subsistence and their competitiveness. Besides the support for income, over one billion Euros will be allocated to investments in farms and processing units. Romania uses about 40% of its budget for rural development, to encourage ecological practices in areas of high natural value, in order to protect biodiversity. About 11 thousand hectares of land will be subject to such practices. In order to maintain the attractiveness of rural areas in Romania, the plan will support the creation of over 12 thousand jobs, with financing for enterprises and infrastructure.



    Gaudeamus — Wednesday saw the opening in Bucharest of the 29th edition of the Gaudeamus Book Fair organized by Radio Romania. Until Sunday, 200 participants will offer the public a varied range of editorial products, on different supports, suitable for all ages and fields of interest, music and educational games. More than 600 editorial events and related projects were announced. For the first time, two spaces dedicated to interactive activities for the youngest visitors have been set up within the fair. All stands will also be found in virtual format on the gaudeamus.ro website. The honorary president of this years edition is the writer Ana Blandiana.



    Agreement – The governments of Romania and the State of Kuwait signed an agreement on cooperation in the military field, the Romanian Defense Ministry announced on Wednesday. The agreement will provide the legal framework for cooperation between the two sides in areas of mutual interest such as military training and education, information exchange, military history and geography, and cultural activities. According to the Defense Ministry, during the visit of the delegation from Kuwait, discussions regarding the bilateral political-military dialogue took place. Against this background, the discussions focused on bilateral cooperation, the approach to the security situation in the Black Sea area and the Middle East and the efforts of the two countries to ensure stability at the regional level, the Defense Ministry mentions. (LS)

  • December 7, 2022

    December 7, 2022

    BUDGET
    The finance ministry has made public the draft state budget of Romania for next
    year. The document is based on an estimated GDP growth of 2.8%, an 8% inflation
    rate, a growing number of employees and a declining 2.7% unemployment rate. The
    ministries set to receive less money include the energy, justice and public
    healthcare, whereas the defence, development, transport and education
    ministries will receive substantially higher budget appropriations. The ruling
    coalition made up of the Social Democrats, and Liberals and the Democratic
    Union of Ethnic Hungarians in Romania intends to endorse the draft budget tomorrow
    and send it to Parliament the next day, for discussion next week.


    SECURITY Romania has constantly worked to
    identify solutions to enhance security at the Black Sea, the Romanian foreign
    minister Bogdan Aurescu said in Ankara on Tuesday, when he had
    a meeting with his Turkish counterpart, Mervlut Cavusoglu. The two officials
    discussed the best avenues for cooperation, both at bilateral level and within
    the NATO framework. They finalised and agreed on the text of the political
    declaration setting up the Romania – Turkey High Level Strategic Cooperation
    Council, organised as a regular meeting of the two countries’ governments and
    focusing on strategic areas of mutual interest, which will be launched in 2023.
    Another topic approached in the meeting was cooperation in the energy sector,
    recognised by both officials as a priority, particularly in light of the recent
    challenges. An agreement was reached to strengthen joint efforts to ensure the
    security of Romania’s energy supplies by transiting Turkish territory. Also,
    the multidimensional effects of the war in Ukraine have been analysed, with
    special attention paid to the refugee crisis and food security.


    JUSTICE The Romanian justice minister Cătălin Predoiu will
    take part in the meetings of the Justice and Home Affair Council and General
    Affairs Council of the European Union, between December 7th and 14th.
    According to a JHA Council news release, on the sidelines of the two meetings the
    justice minister will also have meetings in Brussels and Luxembourg with
    counterparts from other member countries and EU officials. At the JHA Council
    Mr. Predoiu will present Romania’s position with respect to the EU judicial
    instruments and policies in the judiciary currently on the Council’s agenda. The
    home affairs section of the Council is scheduled to make a decision regarding
    the accession of Romania, Bulgaria and Croatia to the Schengen area.

    ECONOMY The GDP of the European Union saw a 0.4% growth and
    that of the Euro-zone a 0.3% increase in the 3rd quarter of this
    year compared to the previous quarter, with the most substantial growth rates
    reported for Ireland, Cyprus, Malta and Romania, according to data released on
    Wednesday by Eurostat. The economic growth rate in Ireland was 2.3%, and in
    Cyprus, Malta and Romania 1.3%. The most substantial decline is reported for Estonia
    (negative 1.8%), Latvia (negative 1.7%) and Slovenia (negative 1.4%). Among EU
    member countries, the most significant annual growth rate is reported for
    Ireland (10.6%), Croatia (5.5%), Cyprus (5.4%), Malta (5.2%), Portugal (4.9%) and
    Romania (4.7%), the only negative rates being reported for Estonia (negative 2.3%)
    and Latvia (negative 0.4%).

    OIL Global oil
    prices dropped to the lowest level this year, in spite of the estimates of some
    international experts that expected the EU and G7 ban on Russian crude and the
    cap on crude prices to trigger market turbulence. In Romania, the lowest petrol
    price is EUR 1.3, and diesel is sold for EUR 1.54. On the other hand,
    neighbouring Hungary is facing a fuel crisis caused, according to AFP, by the
    price cap introduced by Viktor Orbán’s government a year ago. The fuel shortage
    comes in the context of a 30% decrease in imports as foreign companies cut down
    their sales to Hungary as a result of the price cap, the country’s association
    of independent petrol stations said.


    GAUDEAMUS The 29th
    edition of the ‘Gaudeamus’ Book Fair, organised by Radio Romania, kicked off in
    Bucharest today. Until Sunday, 200 participants will be exhibiting releases in
    various formats, addressing all age brackets and fields of interests, as well as music and educational games. 600 events have been announced in addition to
    various related projects. As a novelty, 2 areas have been arranged within the
    Fair, for interactive activities targeting the youngest visitors. Pavilions are
    also available online on gaudeamus.ro. The honorary president of this year’s
    edition is the writer Ana Blandiana.


    FOOTBALL In the FIFA
    World Cup in Qatar on Tuesday, in the round of 16, Portugal smashed Switzerland
    6-1, while Morocco scored a surprising win against Spain 3-0 on penalties. In the
    quarter-finals on Friday, the Netherlands will be up against Argentina, and
    Croatia takes on Brazil, while on Saturday England will be facing defending
    champions France and Morocco will take on Portugal. The semis are scheduled for
    December 13 and 14, and the final on December 18. (AMP)

  • Energy prices trigger more discontent

    Energy prices trigger more discontent

    After they have been
    advised to save energy in order to pay lower bills, many Romanians have recently
    learnt that something doesn’t actually add up. And that’s because the capping
    decided by the government through its latest Emergency Ordinance is not based
    on the last month’s consumption but on the average monthly consumption they had
    last year.




    Things are very
    clear on paper: for 100 kilowatts one must pay 0.68 RON. Between 101 and 255
    kilowatts, the price is 0.80 RON and consumptions over 255 kilowatts will be charged
    heavily under the contracts consumers have signed with energy providers. So, in
    order to see if they can benefit the latest measures on capped electricity prices,
    the Romanians must check the bills they paid last year and assess their average
    consumption on the year that passed.




    But because no one
    publicly explained how calculations are made, some people have had the
    unpleasant surprise of receiving huge electricity bills without understanding
    why. According to data published by the National Authority for Energy
    Regulations (ANRE), Romania has so far had 4.9 million households in the 100
    kilowatts bracket. A little over 3.5 million households are in the second
    category while between 100 and 200 thousand households do not benefit any
    capping regulations.




    Recently submitted
    to Parliament, the new capping scheme stipulated by the Emergency Ordinance is
    expected to get some new amendments.




    Both the ruling and
    opposition parties have come up with a series of amendments to the law. For
    instance, the co-ruling PSD and opposition USR have been pleading for changing
    the way in which the consumption is charged, so that it may not be based on the
    last year’s average consumption, but strictly on the consumption they
    registered this year. However, ANRE says this solution is difficult to implement
    technically and the agency endorses the older method based on the past
    consumption.




    The co-ruling PNL comes
    up with a method based on the average consumption of the last three years. Amid
    public discontent triggered by the huge energy bills, Energy Minister Virgil
    Popescu has this week called on ANRE to do their job and closely monitor the
    energy market while the Consumer Protection Office has been asked to sanction
    the providers failing to comply with the regulations. ANRE has already kicked
    off a series of unexpected controls at six energy distributors and in turn, the
    National Authority for Consumer Protection has started controls at electricity
    providers across the country in order to see how electricity bills are being
    calculated.


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  • September 14, 2022 UPDATE

    September 14, 2022 UPDATE

    Debates – The new scheme for capping and compensating the price of energy on Wednesday reached the parliamentary committees in Bucharest for debates. The senators from the economic and energy commissions are debating the document recently adopted by the government, which includes the new scheme for compensating and capping the energy price, which applies from September 1. According to the emergency ordinance, the monthly consumption level up to which the price will be capped was reduced to 255 KWh, in the case of electricity. The intention of the government is for people to try to save electricity in the coming period. In the case of natural gas, the ordinance does not make any changes for domestic consumers. The interim speaker of the Senate, Alina Gorghiu, has declared that the ordinance will be modified in the commissions, if anything was omitted, but the changes will be made with the agreement of the governing coalition. The provisions in the emergency ordinance have triggered criticism from the opposition and the business environment.



    Energy — The EU will propose measures to cap the income of low-cost electricity producers and will force companies that sell fossil fuels to share the profits they make following the increase in energy prices. The announcement was made on Wednesday by the president of the European Commission, Ursula von der Leyen, during her speech on the state of the EU held in the plenary session of the European Parliament gathered in Strasbourg. She also said that the EU bloc was also discussing capping energy prices and was working on establishing a more representative gas reference price than that at the TTF hub in Amsterdam. In the spring, at the TTF hub in Amsterdam, the gas pricing hub for the European gas market, the pricing reached the record level of almost 335 Euros for one MWh. Also, the European Commission will propose that member countries should reduce their net monthly electricity consumption by at least 10% and by 5% during peak hours, until March 31, 2023. Instead, the EC document does not include a ceiling for the price of natural gas, an idea that caused divisions among the member countries. Ursula von der Leyen has warned that a difficult period will follow for companies and households in Europe, evoking the economic consequences of the war in Ukraine.



    London – Five days after the death in Scotland, on September 8, of Queen Elizabeth II of Great Britain, the Queen’s coffin arrived at Buckingham Palace in London, last night, to the applause of the crowd, and it was greeted by the new King Charles III. After being on public display for the first time, for 24 hours, in Edinburgh, the royal coffin was flown to the British Capital by a Royal Air Force plane and deposited overnight at Buckingham Palace before being moved, on Wednesday, to Westminster Hall, the building of the British Parliament. From this evening, people will have access to the Parliament building, to pass by the Queen’s coffin. People started queuing as of Tuesday. Hundreds of thousands of people, spread over kilometers and regardless of the weather, are expected to queue for hours to bid their final farewell to the queen. Queen Elizabeth IIs funeral will take place on September 19, at Westminster Abbey. Romania will be represented by President Klaus Iohannis. Her Majesty Margareta, the Custodian of the Crown of Romania, and Prince Consort Radu will also attend the funeral.



    Software — The Romanian government will force all central and local public authorities to give up Russian anti-virus solutions or applications that could be under Moscows control. A draft law in this sense was on the agenda of the government’s meeting on Wednesday, in the context in which other European states, such as Germany and Italy, have already made such decisions. Kaspersky company, which produces one of the best known antivirus solutions, will be directly affected by this measure, because all its software will have to be uninstalled from public computer systems in the country. Any antivirus program creates backdoors on computers and could be used for espionage. The bill’s substantiation note shows that many public institutions and local administration authorities in Romania, including Bucharest City Hall, purchase and use Russian antivirus programs, due to their low prices.



    Tennis — The Romanian tennis player Ana Bogdan (65 WTA) qualified, on Wednesday, to the quarter finals of the WTA 250 tournament in Portoroz, Slovenia, after defeating the Slovenian Tamara Zidansek, 6-1, 6-7, 6-1. The Romanian player will fight for a place in the quarter finals with the Spanish Cristina Bucsa (110 WTA), or the Brazilian Beatriz Haddad Maia (18 WTA). The Portoroz tournament, on an outdoor hard court, has prizes up for grabs worth over 200 thousand Euros. (LS)

  • September 12, 2022 UPDATE

    September 12, 2022 UPDATE

    AGREEMENT Romania and France signed a
    transport agreement in Paris on Monday pledging to support the shipment of Ukrainian
    grain to the countries needing it. The Romanian authorities have announced they
    will cooperate with their French counterparts to draw up a medium-term strategy
    for the corridors making the connection between Romania and Ukraine, including
    those through the ex-soviet, Romanian-speaking Republic of Moldova. The
    agreement with Romania will allow Ukraine to ship more grain to Europe and the developing
    countries, particularly in the Mediterranean, which are facing food shortages,
    the French Transport Minister Clement Beaune said. According to the French
    official, more than a third of the exported grain goes to developing countries.








    INFLATION Romania’s annual inflation rate went up to 15.32% in August
    from 14.96% in July. According to data published by the National Statistics
    Institute on Monday, foodstuffs prices went up by 18.22%, while those for
    non-food products also went up by 15.98%. Prices for services increased by
    8.26%. The Central Bank has increased its inflation forecast for 2022 to 13.9%,
    estimating an inflation rate of 7.5% for 2023. The Central Bank expects the
    deflation trend to temporarily stop in the second quarter of 2023, once the
    current state-aid schemes targeting the energy sector end. The Central Bank
    expects an inflation rate of 2.3% for June 2024.










    QUEEN King Charles III on Monday said that
    Parliament is the living and breathing instrument of our democracy. In his
    first speech before the two houses of the Legislature at Westminster Hall, King
    Charles said Queen Elizabeth II ‘set an example of selfless duty’ pledging to
    follow her example of commitment to a constitutional government. The coffin of
    Her Majesty, Elisabeth II, was taken from the Palace of Holyroodhouse in
    Edinburgh to St. Giles Cathedral with a procession attended by Charles and
    royal family members. The coffin will be flown to London on Tuesday and taken
    to Buckingham Palace before being moved to the Palace of Westminster the next
    day, where the queen will lie in state until her funeral on September 19.






    ENERGY The European Commission is this week
    expected to present the set of proposals agreed upon in Friday’s meeting of EU
    Energy Ministers, designed to combat the energy crisis. The package might
    include a cap on energy prices and taxing the excess profits of fossil fuel
    companies and redistributing the revenues to state-aid schemes. Romania’s
    Energy Minister, Virgil Popescu, says Romania supports a balanced approach
    towards all Member States. Capping natural gas prices at community level would
    significantly curb volatility on the EU energy market, the Romanian official
    said.


    (bill)

  • September 8, 2022

    September 8, 2022

    MEASURES The
    government in Bucharest has today tackled a series of measures to overcome the
    energy crisis announced by the European Commission. According to Prime Minister
    Nicolae Ciuca all the measures taken by its cabinet to cap prices for
    electricity and gas have been tailored to meet the recommendations made by
    Ursula von der Leyen and are aimed at protecting household consumers, the
    Romanian economy and curbing consumption. The European Commission wants to
    reduce the price paid for Russian gas as part of a plan to diminish energy
    costs. According to the head of the EU Commission, the money Putin uses to fund
    his war campaign in Ukraine must be limited. The Commission wants to also curb
    demand by reducing energy consumption at peak hours. In Moscow, president Putin
    says that Russia will completely stop energy deliveries if the EU caps the
    Russian exports adding the Europeans will freeze in winter. The European Energy
    Ministers are to discuss the Commission’s proposals on Friday.










    BLUE AIR Romanian discount carrier Blue Air is expected
    to resume its flights shortly. Company officials are to announce today what
    flights the company is going to resume. On Tuesday the airline announced the
    suspension of its flights until September 12th after its bank
    accounts were frozen by the state amid concerns over unpaid debt. According to
    the Romanian Foreign Ministry, Romanian nationals abroad affected by the
    measure can contact the nearest diplomatic mission or consular office. The
    Romanian passengers stranded at airports across Europe and beyond are being
    repatriated by means of the planes of the national airline Tarom after the
    government has allotted money from the reserve funds.










    EXPULSION The Foreign Ministry in
    Moscow has declared ‘persona non grata’ a member of the Romanian Embassy in
    Moscow, the RIA agency announced on Thursday. Reuters recalls that Romania,
    like other EU members, has been designated an ‘unfriendly country’ by Moscow in
    response to sanctions imposed after the Russian invasion of Ukraine. Earlier
    this year Russia and EU countries expelled hundreds of each other’s diplomats
    in the wake of the Russian invasion on February 24th.










    FOOTBALL Romania’s football champions CFR Cluj today takes on FC Ballkani of
    Pristina in their first Group G game of the Europa Conference League. In the
    other match of this group Turkish side Sivasspor will be taking on Slavia Praga
    while in Group B, Romania’s vice-champions FCSB will be playing English side
    West Ham United in London. Also in this group Belgian side Anderlecht Brussels
    will be up against the Danish from Silkeborg.










    DAY Christians in
    Romania are today celebrating the Birth of Jesus’s Mother, St. Mary. According
    to the Christian belief, the Virgin Mary was born out of a miracle. Her parents
    Joachim and Ana were very old and could not have babies. In response to their
    prayers God made a miracle and Ana got pregnant at an old age. They named their
    daughter Mary and she would give birth to our Lord Jesus Christ, the Messiah.
    Christians believe the Holy Virgin reached the highest degree in holiness and
    unlike the other saints, she is celebrated four times a year, on her birthday, Her
    entry into the Temple, the Annunciation and the Ascension.








    (bill)

  • Measures to cap energy prices

    Measures to cap energy prices

    Romanians will continue to benefit from capped prices for electricity and natural gas. The decision was made by the government through an emergency ordinance and will benefit almost 8 million households. The ordinance introduces some changes. Thus, SMEs and public institutions will pay a maximum of 1 leu per kilowatt-hour, a price valid for 85% of the electricity consumed, though. Exempted from the rule are the hospitals, schools and institutions that provide social assistance. These will pay up to 1 leu kilowatt-hour for all the electricity consumed.



    For natural gas, household customers will pay capped bills only if they did not exceed 50 thousand megawatts per hour last year. The electricity price cap will apply to household consumers until August 31, 2023, for a consumption of up to 255 kWh per month. For electricity consumption that exceeds this level, the price is set by each supplier. On the other hand, intermediaries that will sell energy at very high prices, due to a large-scale sales and resales chain, will be fined.



    Energy Minister Virgil Popescu has details: The famous scheme of transferring electricity from one trader to another before reaching the supplier, in order to artificially increase the price of electricity or natural gas, will be severely punished this time, because it is not normal to have this type of behavior in the market. Practically, such unfair actions will be sanctioned with a fine of 5% of the turnover, an instrument now available to the Romanian Energy Regulatory Authority – ANRE.



    A solidarity tax will be levied on electricity companies, the money going into a special fund for energy. Thus, a maximum price of 450 lei per kilowatt has been set for the producer, and everything that exceeds this value will go to the special fund for energy. In the case of intermediaries, they can keep 2% of the profit, and the rest is considered a solidarity contribution. The impact on the budget of the measures provided for in the government ordinance is estimated at one billion lei per month (200 million Euros), and if these amounts fail to be collected from the newly established solidarity fund, they will be supplemented with money from the state budget.



    The Prime Minister Nicolae Ciucă hopes that, through the recently introduced mechanisms, speculative behavior on the energy market will be avoided. The opposition Save Romania Union – USR harshly criticizes the energy ordinance. ‘This whole capping scheme creates chaos and slowly but surely destroys the energy sector and the Romanian economy, USR warns. According to the party representatives, the new changes remove from the capping scheme many companies that have benefited from it until now, which will lead to restricted activity, higher prices in the economy and unemployment. (LS)

  • Athlete of the week

    Athlete of the week


    In a fixture counting towards Turkish championship’s
    20th round, Romanian footballer Denis Alibec scored both goals in
    the match his team, Kayserispor, won against holders Bashakshehir, 2-nil. It
    was Kayserispor’s first win since Romanian Dan Petrescu has become the team’s
    head-coach. Denis Alibec drew first blood on 42 minutes, with Brazilian Gustavo Campanharo
    providing the assist. Another Brazialian footballer, Pedro Henrique, provided
    the second assist for Denis Alibec, who scored for the second time around in
    minute 77. Denis Alibec was replaced on the pitch in minute 79, thus succeeding
    his first Turkish championships goals for his team, Kayserispor, and Radio
    Romania International designated Alibec the Athlete of the week.


    Denis Alibec was born in Mangalia, in the south-east, on January 5, 1991. He first played for Callatis Mangalia’s junior team. Denis
    made his League One debut playing for Farul Constanta, in 2008. He had a
    five-year stint with International from Milan, over 2009 and 2014, then he was
    on loan for Belgium’s Malines, Viitorul Constanta, back in Romania, and Bologna, in Italy. From
    to 2014 to 2017 Alibec was signed up by Astra Giurgiu, the team with which he
    won Romania’s League One championship in 2016. Denis Alibec emerged as an
    out-and-out scorer, with no less than 32 goals scored in 65 fixtures he played
    for Astra. Denis got transferred to FCSB where he played a single season, with
    no remarkable achievements, then Alibec returned to Astra Giurgiu. He regained
    the top shape that earned him recognition, being sought after by a couple of
    foreign clubs. Denis Alibec was scheduled to play for a Saudi Arabia team, but
    he opted for Kayserispor, the Turkish team whose pool of regulars includes two
    other Romanians, Silviu Lung junior and Cristian Săpunaru. With the Romanian
    national team, Alibec made his debut on October 11, 2015, in the 90th minute of
    the away game the Romanian national squad won against the Faroe Islands, 3-nil.
    Denis Alibec boasts 17 caps for the national team.



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