Radio România Internațional

Tag: caps

  • Cheaper basic foodstuffs

    Cheaper basic foodstuffs

    Romania is the EU member state with the lowest food and soft drinks
    prices in 2022, according to the European Statistics Office, which says such
    products were nearly 30% below the EU average.


    However, Romania was also at the bottom of the list in terms of
    minimum wages, with EUR 515 per month, ahead of Bulgaria and Latvia alone, out
    of the 21 member states that use a whole-economy minimum wage indicator. Also,
    the annual inflation rate in Romania was 12.2% in March, as against the EU
    average of 8.3%.


    This, among other things, explains why Romania ranked 14 in the EU by
    living standards measured as actual individual consumption, with figures
    standing at 88% of the bloc’s average.


    In this context, the government is working on legislation to cap
    mark-ups so as to reduce the shelf price of basic foodstuffs. The decision was
    made after the option of cutting down VAT for foodstuffs, as suggested by the
    finance minister Marcel Boloş, was dismissed by PM Marcel Ciolacu. Here is his
    explanation:


    TRACK Past experience shows
    that cutting down the VAT led to lower prices for a very limited period, to smaller
    revenues to the state budget, and prices were back in two weeks’ time anyway.
    So it didn’t work. What I’m talking about is not capping prices, but rather an
    entire system and scheme applying on the whole supply chain, and I will present
    this scheme to the Cabinet.


    The measure the PM mentioned will be introduced under an emergency
    order whose draft has been posted on the website of the Agriculture Ministry. The
    document caps the mark-ups used by major chain stores for as many as 14 basic
    foodstuffs, including bread, milk, yogurt, cornflower, sunflower oil, eggs,
    meat and vegetables.


    Processers will also have to draw up cost statements specifying
    overheads and direct costs, and only then will they be able to add a maximum
    20% mark-up. In turn, distributors will be able to add a maximum 5% margin, and
    supermarkets a maximum 20%. The scheme will also apply to imported products.


    The draft order will be discussed in Thursday’s government meeting
    and will take effect after publication in the Official Journal. The Competition
    Council and tax authorities will conduct inspections to ensure that the new
    legislation is complied with. Consumers are expected to see the effects of the
    measure as of 1 August. (AMP)

  • Athlete of the week

    Athlete of the week

    Only one Romanian football team in the
    ongoing competition season, early into 2023, has advanced to the European Cups’
    upcoming stages. In the autumn of 2022, CFR Cluj qualified to the playoffs as
    part of the European Conference League’s round of 16, ranking 2nd in
    the competition’s Group G. In Rome last week, holders CFR competed for a place
    in this year’s round of 16. CFR Cluj sustained a defeat by the narrowest of
    margins in their away game against Lazio, ni-1. In two days’ time, the match deciding
    the qualification in the League’s round of 16 will be played in Cluj. However,
    we made mention of the match in Rome since it provided a record: CFR’s captain,
    Mario Camora, is the footballer boasting most caps in the European Cups for a
    Romanian squad. For this very reason, Radio Romania International has
    designated CFR’s Portuguese-born left-back Mario Camora the Athlete of the week.


    Up until the ongoing season, Marius Lacatus
    was the footballer with most caps in European cups. We recall Marius Lacatus was
    one of the stars of Steaua Bucharest, a team that saw its heyday in the 20th
    century’s 1980s. Over 1984 and 1999, Lacatus played 72 matches in the European Champions
    Cup, The Cup Winners’ Cup and the UEFA Cup. With Steaua Bucharest, in 1986 Lacătus won
    the European Champions Cup, an unparalleled performance in Romanian
    football. This past Thursday in Rome, Mario Camora played his 73rd
    match in European competitions. Camora’s first such game was played on August 1st,
    2012, when CFR Cluj defeated Slovan Liberec 1-nil, in a fixture counting
    towards the Champions League’s 3rd preliminary round.


    Mario Camora was born
    on September 21, 1986, in Portugal. He made his debut as an amateur footballer,
    then in 2006, he turned pro, being signed up by second-tier team Beira-Mar. Mario
    arrived in Romania in 2011, playing for CFR Cluj. Seven years later, on April
    17, 2018, he broke the caps record for CFR, until
    then held by another Portuguese, Cadú. In 2020, Mario Camora was granted
    Romanian citizenship. Also in 2020, on October 8, he made his debut with the
    national team, setting a new record. Being 37 years and 17 days old, Mario
    Camora became Romanian national squad’s oldest first-time footballer. (EN)

  • Athlete of the week

    Athlete of the week

    Only one Romanian football team in the
    ongoing competition season, early into 2023, has advanced to the European Cups’
    upcoming stages. In the autumn of 2022, CFR Cluj qualified to the playoffs as
    part of the European Conference League’s round of 16, ranking 2nd in
    the competition’s Group G. In Rome last week, holders CFR competed for a place
    in this year’s round of 16. CFR Cluj sustained a defeat by the narrowest of
    margins in their away game against Lazio, ni-1. In two days’ time, the match deciding
    the qualification in the League’s round of 16 will be played in Cluj. However,
    we made mention of the match in Rome since it provided a record: CFR’s captain,
    Mario Camora, is the footballer boasting most caps in the European Cups for a
    Romanian squad. For this very reason, Radio Romania International has
    designated CFR’s Portuguese-born left-back Mario Camora the Athlete of the week.


    Up until the ongoing season, Marius Lacatus
    was the footballer with most caps in European cups. We recall Marius Lacatus was
    one of the stars of Steaua Bucharest, a team that saw its heyday in the 20th
    century’s 1980s. Over 1984 and 1999, Lacatus played 72 matches in the European Champions
    Cup, The Cup Winners’ Cup and the UEFA Cup. With Steaua Bucharest, in 1986 Lacătus won
    the European Champions Cup, an unparalleled performance in Romanian
    football. This past Thursday in Rome, Mario Camora played his 73rd
    match in European competitions. Camora’s first such game was played on August 1st,
    2012, when CFR Cluj defeated Slovan Liberec 1-nil, in a fixture counting
    towards the Champions League’s 3rd preliminary round.


    Mario Camora was born
    on September 21, 1986, in Portugal. He made his debut as an amateur footballer,
    then in 2006, he turned pro, being signed up by second-tier team Beira-Mar. Mario
    arrived in Romania in 2011, playing for CFR Cluj. Seven years later, on April
    17, 2018, he broke the caps record for CFR, until
    then held by another Portuguese, Cadú. In 2020, Mario Camora was granted
    Romanian citizenship. Also in 2020, on October 8, he made his debut with the
    national team, setting a new record. Being 37 years and 17 days old, Mario
    Camora became Romanian national squad’s oldest first-time footballer. (EN)

  • October 5, 2022

    October 5, 2022

    FIREWOOD The prices of firewood and
    wood derivatives used for heating will be capped in Romania until the end of
    March 2023. A draft emergency order in this respect is being discussed by the
    Cabinet today. Beneficiaries will include individuals, public and private
    education institutions, social service providers, local authorities and places
    of worship. The measure is intended to help Romanians cope this winter with the
    skyrocketing fuel, energy and natural gas prices. Also today the government is
    scheduled to endorse the 2030 National Forest Strategy.


    ENERGY A Pact for Clean Energy
    Resilience was launched in Romania on Tuesday. The initiative came from Smart
    Energy Association and is an invitation to the authorities and private sector
    to implement programmes and awareness raising campaigns regarding the need to
    cut energy consumption and to use clean energy sources. The president of the
    Association, Dumitru Chisăliţă, says cutting consumption should be achieved not
    through restrictive measures, but rather by improving efficiency. The
    Association also released a guideline for authorities, comprising energy saving
    solutions.


    SCHENGEN The European Parliament discusses in Strasbourg today
    Romania’s and Bulgaria’s Schengen accession. MEPs are expected to call for
    the Schengen passport-free travel area to be completed swiftly by extending it
    to all EU member states who wish to participate, with a resolution in this
    respect to be voted on in the next plenary session. Another topic on the
    European Parliament’s agenda concerns the mobilisation of Russian reserve
    troops, the illegal referendums in Ukrainian occupied regions and the nuclear
    threats voiced by the president of the Russian Federation, Vladimir Putin. MEPs
    will request firm responses from member states to Russia’s preparations to
    annex Ukrainian territories and to step up military actions.


    CEREMONY The Royal House of Romania last night hosted a ceremony
    devoted to the Romanian-British partnership and the rule of Charles III. In her
    address, the Custodian of the Crown of Romania, Margareta, sent a message of
    hope and confidence to Britain’s new sovereign, King Charles III. In turn, the
    British Ambassador to Bucharest, Andrew Noble, pointed out that the British
    nationals who live in and love Romania are blessed to have a monarch who knows
    Romania so well.


    UKRAINE The president of Ukraine
    Volodymyr Zelenskyy announced fast and powerful progress for his army in the
    south of the country, where scores of localities have been reclaimed this week
    from the Russian troops. According to AFP, in his daily address
    posted on social networks, Zelenskyy promised that the Ukrainian troops would
    not stop and that it was only a matter of time until the Russians would be
    driven out of the entire Ukrainian territory. On the other hand, the Ukrainian
    president welcomed India’s support for the sovereignty and territorial integrity
    of Ukraine, voiced during a telephone call with PM Narendra Modi. Previously, Kyiv
    had criticised New Delhi over its neutrality. Meanwhile, in Brussels, EU
    countries Wednesday reached a political agreement on the implementation of an
    8th package of sanctions against Russia, this one in response to the illegal
    annexation of 4 Ukrainian regions.


    IAEA The director general of the International Atomic Energy Agency (IAEA),
    Rafael Grossi, will travel to Kyiv and then to Moscow this week to discuss a
    protection zone around the Ukrainian nuclear plant at Zaporizhzhya. Rafael
    Grossi will carry on consultations to have the mechanism in place as soon as
    possible, the Agency said in a news release. The nuclear power plant in Zaporizhzhya,
    the largest in Europe, is occupied by Russian forces, but is still operated by
    Ukrainian personnel. Russia and Ukraine have accused each other of shelling the
    plant area. (AMP)

  • September 29, 2022 UPDATE

    September 29, 2022 UPDATE

    ENERGY Romania will not be facing glitches in natural gas and
    electricity supplies, the state secretary with the Energy Ministry Dan Drăgan promised
    on Thursday. At the time, Romania has 80% of its natural gas storage facilities
    full, and hopefully the figure will be close to 90% in early November, he added.
    The official also called for solidarity between the authorities, producers and
    consumers, in line with the efforts made at EU level.


    PRICE CAPS Diesel and petrol prices will
    continue to be subsidised by roughly 10 eurocents until the end of the year, PM
    Nicolae Ciucă announced on Thursday. He said the measure has already produced
    visible results over the past 3 months, and fuel prices have been stabilised
    and even decreased. Moreover, the measure has yielded results throughout the
    supply chain, from providers to consumers. The PM added that on Saturday he
    would take part, alongside several other senior officials, including the
    president of the European Commission Ursula von der Leyen, in the opening of
    the natural gas interconnector between Greece and Bulgaria, in Sofia.


    MONKEYPOX Romania is requesting support in managing a monkeypox
    outbreak. The National Committee for Emergency Situations Thursday decided to
    resort to the European civil protection mechanism for the medicines needed for
    approximately 150 patients. Romania has so far confirmed 40 cases, and in
    mid-September the country received from the European Commission 5,000 monkeypox
    vaccine doses, to be administered to those who get into contact with infected
    people.


    NATO NATO’s importance in countries’ national security has greatly
    increased in the eyes of the public from 14 European and North-American
    countries, according to a survey conducted by the German Marshall Fund made
    public on Thursday. The EU is also regarded as very important for the national
    security of countries in Europe. 78% of respondents said NATO is very important
    for their country’s security, as against only 67% last year. Respondents in
    countries near Russia and Ukraine place a particularly high value on NATO: 91%
    of Poles, 88% of Romanians and 87% of Lithuanians, the report says. Also, 81%
    of the European respondents said the EU is important for national security.


    UKRAINE Russia’s president Vladimir Putin is to sign on Friday the
    treaties on the annexation of the Ukrainian regions of Donetsk, Luhansk,
    Zaporizhzhia and Kherson, the Kremlin announced. The leaders of the 4 breakaway
    regions travelled to Moscow on Wednesday night for the ceremony, after the
    illegal referendums organised by Russia and described by both Kyiv and Western
    capitals as a sham. Meanwhile, the Ukrainian president Volodymyr Zelenskyy is
    to hold an emergency meeting of top security and defence officials on Friday. The
    US announced plans, jointly with its allies and partners, to impose higher
    economic costs on Russia, while the European Commission proposed new sanctions. On the other hand, clashes continue to be reported in all the regions
    where the referendums were held, and several Ukrainian localities are being
    shelled. According to the Ukrainian defence ministry, the army focuses on
    regaining control over the entire Donetsk region. (AMP)

  • September 9, 2022 UPDATE

    September 9, 2022 UPDATE

    QUEEN The death of Queen Elizabeth II, the longest-reigning monarch in
    English history, brought her eldest son Charles to the throne. He will reign
    as King Charles III. The protocol for proclaiming a new monarch provides for
    the speedy convening of an Accession Council made up of high-ranking
    politicians, bishops of the Anglican Church, together with secular
    representatives of the Kingdom. Queen Elizabeth II died on Thursday, aged 96,
    at Balmoral Castle in Scotland. She is to be brought to London, at Westminster
    Hall, and the public will have a few days to say goodbye. The funerals will
    take place at Westminster Abbey, the church where British kings are crowned.
    The BBC notes that the last funeral of a monarch at Westminster Abbey took
    place in the 18th century. After the funeral, to be attended by heads of state
    and government from around the world, the Queen will be taken to Windsor Castle
    and buried in the Saint George Chapel within its premises. The president of Romania, Klaus
    Iohannis, sent a condolence message to King Charles III. He will be officially
    proclaimed king in a ceremony to be held on Saturday, Buckingham Palace announced.


    DEFICIT Romania’s trade balance deficit in the first 7 months of this year
    increased by almost EUR 5.9 billion, to EUR 18.77 billion, as exports rose by
    23.9% and imports increased by 29%, according to data provided by the National Statistics
    Institute, made public on Friday. Between January and July 2022, exports totalled
    EUR 52.67 billion, and imports EUR 71.44 billion. On the other hand, net
    investments in the national economy totalled EUR 11 billion in the first 6
    months of this year, down 0.8% compared to the similar period in 2021, NSI data
    show.


    ENERGY The Romanian Minister of Energy, Virgil Popescu, attended a special
    meeting of the EU Energy Council in Brussels on Friday, in the context of
    EU-wide discussions over the rise in energy prices. At the meeting, Romania
    supported measures such as capping Russian natural gas prices, a platform for
    the joint purchase of natural gas by the EU, and access to credit lines for
    companies with the European Central Bank, the Energy Ministry said. Romania
    also emphasised the importance of activating the EU Energy Platform for the
    joint procurement of natural gas, so as to ensure fair distribution of the
    additional gas and LNG procured by the Union. While in Brussels, Virgil Popescu
    had a bilateral meeting with his Bulgarian counterpart. Hristov Rossen. The two
    discussed the importance of regional cooperation for the joint purchase of
    natural gas, as well as for ensuring increased energy stability in the region.
    In another move, in Bucharest, energy operators have called on the Government
    to reconsider the order issued last week, which provides for capping and
    compensation of gas and electricity bills, as well as for over taxation of
    companies in the field. The Association of Energy Suppliers warns that the
    document was developed without consulting the participants in the field, thus
    jeopardizing the security of gas and electricity supply to consumers.


    COHESION The Romanian Government has adopted measures concerning one-third
    of the cohesion fund, amounting to EUR 16 billion, the Minister for Investment
    and European Projects, Marcel Bolos, has announced. He has explained that the
    money can be used to access and develop investment projects in transport
    infrastructure, health, water supply and waste management. Under the cohesion
    policy, Romania has a EUR 43 billion budget until December 31st, 2029, the
    minister has stated. The projects mainly focus on the building of 600 km of motorway
    and 3 regional emergency hospitals, in Craiova, Iasi and Cluj-Napoca.


    AID The European Commission has approved a EUR 4 bln aid scheme for
    Romania, in order to support businesses in all sectors in the context of the
    invasion of Ukraine by Russia. According to the EC, Romania’s aid scheme is
    necessary, adequate and proportionate to remedy a serious disruption to a
    member state’s economy, in accordance with EU state aid rules. Under this
    measure, the aid will take the form of guarantees for loans, with a maximum
    budget of EUR 3.6 billion, with the balance to be provided in direct grants.
    Support under the scheme will be granted until 31 December 2022 at the latest.


    TENNIS The Romanian tennis players Sorana Cîrstea and Irina Begu, ranking
    37 and 42 in the world, respectively, take part in the first edition of Ţiriac
    Foundation Trophy, held between the 10th and 18th
    September in Bucharest. The 2 players received wild cards from the organisers,
    and their current world rankings makes them seed no 1 and 2 in the tournament
    hosted by the Romanian capital city. Ţiriac Foundation Trophy is a WTA 125 tournament
    organised by the Romanian Tennis Federation and supported by the Ţiriac
    Foundation and the Sports Ministry. The main draw includes 32 players, and the
    doubles competition involves another 16. They compete for USD 115,000 in total
    prize money and 160 points in the WTA ranking. (AMP)

  • Clashes over energy price caps

    Clashes over energy price caps


    The price of natural gas went up 30% in Europe on Monday, after Russia announced that North Stream deliveries would remain suspended indefinitely.



    In Amsterdam, where natural gas reference prices for the continent are set, quotes moved over EUR 270 per MW/h. This spring, following the Russian invasion in Ukraine, they reached a record-high EUR 335 per MW, news agencies mentioned.



    The EU is looking at options to cap energy prices. Starting with Germany, which announced a EUR 65-bln package, European governments are deciding to channel large amounts into household support schemes.



    So does the coalition government in Bucharest, which resolved to extend the price cap and subsidy programme for natural gas and electricity until next August. But a new outlook shifts the financial burden of these measures to companies in the energy sector, which will be subject to additional taxes. Moreover, brokers that re-sell energy for very high prices, thus taking advantage of the energy crunch, according to the government, will be fined 5% of their turnover.



    The head of the Smart Energy Association, Dumitru Chisăliţă, believes the deadline for enforcing last weeks government order is very short and may severely affect the activity of corporate consumers:



    Dumitru Chisăliţă: “Most industrial consumers and even households have made plans, budgets, have signed contracts. Interfering mid-game, just ahead of winter, and ruining all these plans, will in my opinion bring many consumers to their knees and force them to downsize operations or even close shop.”



    The former energy minister Răzvan Nicolescu, on the other hand, argues that the new measures may reduce speculation:



    Răzvan Nicolescu: “Being able to order fines of up to 5% of turnover for those who trade energy for speculation purposes is a good thing. The fact that stakeholders have been striving for months to find a solution for their own consumption, for distribution and transport, is again, in my opinion, a good thing. And introducing a principle according to which all those who obtain undue benefits in these times should be penalised is a good thing.”



    Save Romania Union, in opposition, criticised the government order, arguing that it would destroy the energy sector and the economy. The party tabled a simple motion against the energy minister Virgil Popescu, at the very start of the new parliamentary session, which makes it its third attempt to dismiss the line minister so far. (A.M.P.)


  • Romania caps energy prices again

    Romania caps energy prices again

    In an attempt to ease the pressure caused by higher energy and gas bills, the government in Bucharest will endorse new support measures to be approved through an emergency ordinance. A decision was needed in this respect because the previous measures to support companies and household consumers, which have been applied from November, are valid only until April 1st.


    According to Energy Minister Virgil Popescu, the measures have already been discussed with representatives of the Romanian Energy Regulatory Authority, as well as with energy providers and distributors.


    Virgil Popescu: “We are waiting for the Regulatory Authority to integrate into the emergency ordinance some issues that are related to regulation fees. After we have completed talks with all the market players we next want this emergency ordinance endorsed so that we may have the new scheme operational starting April 1st.”


    The new government solutions presented on Monday by Prime Minister Nicolae Ciuca include caps and subsidies for the aforementioned utilities. Electricity and gas will be capped for a year, and according to the Prime Minister the measure will offer the business environment and citizens stability in accordance with free market rules


    Nicolae Ciuca: “Household consumers will benefit from a social fee of 0.68 lei per kilowatt, including the VAT for households with a monthly consumption up to 100 kilowatts. Household consumers with a monthly consumption between 100 and 300 kilowatts will have to pay 0.8 lei per kilowatt whereas consumers with an annual consumption up to 12 hundred cubic meters are to pay 0.31 lei per kilowatt”.


    The impact of these measures has been estimated around 3 billion euros by the end of the year. But a survey by the Intelligent Energy Association reminds that Romania is one of the three European countries, which decided to cap prices to support their population. However, the capped price is 1.7 higher than the market price and that makes the aforementioned support measures the least effective in the EU. The new measures are even less significant if we take into account that Romania is the second country in the EU in terms of the negative impact energy bills have upon the family budget – double than the European average in 2022, the survey also shows.


    (bill)



  • Romanian Senate caps electricity prices

    Romanian Senate caps electricity prices

    Electricity and natural gas prices for household consumers in Romania will be subsidised until the end of March, in keeping with an emergency order passed by the Bucharest Senate on Monday. Senators from all political parties decided unanimously that, while the order is in force, electricity prices will be capped at maximum 1 leu per kilowatt and the natural gas price at 0.37 lei per kilowatt-hour. Household consumers will thus benefit subsidies of 26 bani per kilowatt-hour for their electricity bill and of 33% of their natural gas bill by per month. Moreover, vulnerable consumers can also postpone payment of their bills by 6 months. Small and medium-sized companies will have their VAT slashed from 19% to 5% and will be exempt from paying the green certificates and the co-generation contribution.



    Liberal senator Toma Petcu explains: “We have increased the subsidy level from 25% to 33%, which is a lot. Also, we have raised the ceiling for these subsidies to 1,500 megawatts for electricity and 1,000 megawatts for gas. I believe it is very important to allow vulnerable consumers to postpone the payment of their bills by up to six months. We have all agreed we need to put a cap on prices. The difference between the capped prices and the reference prices is subsidized and we get to the level proposed by our Social Democrat colleagues. All legal entities can definitely access this support scheme. “



    Social Democrat senator Daniel Zamfir, although in favour of capping energy prices, says the normative act, in its current version, is not applicable. In his opinion, the legislative proposals of the Social Democrats, discussed in plenary session and rejected by vote, would have been a better solution to the energy price problem. Daniel Zamfir: “You chose, because of your ego, to kill our perfectly good initiative just because it comes from PSD. You did not have the gut to admit that the subsidy plan will be difficult apply and people will not benefit this measure. ”



    Romania has seen the highest increase in energy and natural gas prices in the EU, the senator also said. The price of natural gas went up by 334%, so the subsidy solution would have been insufficient and the fact that all parties agreed to our idea of capping on prices is a good thing. We believe the levels of these caps are high and they can be modified once the law in the Chamber of Deputies, he also said. According to the document, the profit of energy producers will be overtaxed by 80%. The document, aimed at keeping energy prices in check, will be submitted to the Chamber of Deputies, the decision making body in this case. (EE)