Radio România Internațional

Tag: companies

  • May 6, 2024 UPDATE

    May 6, 2024 UPDATE

    EASTER Orthodox and Eastern-Catholic Christians in Romania are celebrating Bright Week, the first week after Easter. Easter, the most important religious holiday in the Christian world, is also the only one that lasts 3 days.

     

    STATISTICS Romania has the 3rd-lowest life expectancy in the EU, 76.6 years, according to a report released by Eurostat. The only 2 countries in the European bloc with poorer rates in this respect are Bulgaria and Latvia (below 76 years). Spain has the longest life expectancy in the European Union, 84 years, followed closely by Italy and Malta. According to Eurostat data, lower rates are reported in Eastern Europe and in the three Baltic states, whereas in Mediterranean, Scandinavian and Central European countries people live longer. On the other hand, the EU statistics office said, Romania sees the steepest increase in life expectancy, with one year gained between 2019 and 2023.

     

    MILITARY A multinational exercise called Swift Response 24 takes place until May 24 in Romania and other countries. Thousands of troops and hundreds of vehicles and other equipment from 7 Allied and partner states are taking part. The exercise is organised by the US Army Europe and Africa, and according to the Romanian defence ministry it will include one of the largest air assault operations conducted in Europe since WWII, with around 2,000 paratroopers from France, Germany, Romania, Spain, the US and the Netherlands taking part. Romania contributes 2,300 troops, several air bases and 3 firing ranges. The drills on Romanian territory are coordinated by the German Armed Forces jointly with the Romanian Land Forces, with support from the Romanian Air Forces.

     

    COMPANIES The number of companies deregistered in Romania increased by nearly 15% in the first quarter of this year, to over 12,000, according to the National Trade Registry Office. Most of these companies were registered in Bucharest and Ilfov County (south), Constanţa (south-east), Cluj (north-west), Timiş (west) and Iaşi (north-east), and operated in sectors like vehicle repair, wholesale and retail, and constructions.

     

    RUSSIA Russia’s president Vladimir Putin ordered nuclear weapons drills “in the near future,” involving in particular troops deployed close to Ukraine, France Presse and Reuters report. According to the Russian defence ministry, the drills are designed to keep the Army trained, following “provocative statements and threats of certain Western officials regarding the Russian Federation.” Missile units from the Military District South and naval forces will take part in the drills. Russia currently has the largest nuclear arsenal in the world. The 2022 invasion of Ukraine ordered by Vladimir Putin led to the worst deterioration of Russia’s relations with the West since the Cuban missile crisis, both US and Russian diplomats said. While Moscow claims the war is a response to NATO’s attempts to control Ukraine while expanding its military presence eastwards, the West and Ukraine define Putin’s war as intended to occupy new territory and bring Ukraine under Moscow’s control, Reuters says.

     

    UKRAINE Russia’s army announced on Monday having seized another 2 Ukrainian villages, one in Donetsk, in the east, and the other one in Kharkiv, in the north-east. Commentators say Russia has the initiative against an enemy struggling to recruit new troops and facing a slow-down in Western aid. With the US military assistance resumed after a USD 61 bln aid plan for Kyiv approved in late April, Ukraine should be able to strengthen its forces and to try to stabilise the front.

     

    VISIT The war in Ukraine and economic relations between China and the European Union were the main topics on the agenda of Monday’s talks in Paris, held as part of a 2-day state visit by China’s president Xi Jinping to France. The Chinese official called for a consolidated strategic coordination between China and the EU, as major world powers, at the start of a 3-party meeting with president Emmanuel Macron and with the European Commission chief, Ursula von der Leyen. President Macron pleaded in turn for “fair rules for all” in the trade between China and Europe. “The future of our continent will very clearly depend on our ability to continue to develop relations with China in a balanced manner,” Macron said, and added that “coordination” with Beijing on “major crises” including Ukraine and the Middle East was “absolutely decisive.” In turn, the EC president Ursula von der Leyen said that China and the EU have a shared interest in peace and security, and emphasized the determination to end Russia’s war of aggression against Ukraine and to achieve just and long-term peace.

     

    GAZA On Monday the Israeli armed forces started to evacuate Palestinian civilians from Rafah, ahead of a planned military move in this town in the south of Gaza, an Israeli radio station, Army Radio, has announced. The Israeli Army said it “encourages” residents in eastern Rafah to move to an extended humanitarian area close by. Seven months since the start of its attack on Hamas, Israel says Rafah is hosting thousands of Islamist Palestinian fighters and that the town is critical for its victory. But with over one million Palestinian civilians relocated to Rafah, the prospect of a military operation with a large number of victims is a concern for the West and for neighbouring Egypt, Reuters reports. (AMP)

  • State aid for companies affected by the war in Ukraine

    State aid for companies affected by the war in Ukraine

    The European Commission has approved the reintroduction of a state aid scheme in Romania of approximately 2.5 billion Euros (12.5 billion RON) to support companies in the context of Russia’s war against Ukraine. The aid consists of loans as well as of non-reimbursable funds that will be granted to Romanian companies until June 30. The amount of support is divided into categories. Thus, companies in the agricultural field can receive up to 280,000 Euros, companies in the fishing and aquaculture field, up to 335,000 Euros, and companies operating in the rest of the sectors can benefit from aid worth up to 2.25 million Euros. According to the Commission’s analysis, the request made by Romania complies with the conditions provided for in the crisis and transition framework. The Romanian state requested such an agreement for the first time on September 9, 2022, which was approved in January 2023 for the entire year. Following the expiry of this deadline, the Commission once again approved the reintroduction of the state aid scheme to ensure sufficient liquidities for companies on the Romanian market.

     

    The measure is seen as necessary and proportionate to remedy the irregularities in the national economy. Moreover, the Romanian Prime Minister Marcel Ciolacu had announced, a few days ago, that the government would extend this year the IMM INVEST PLUS state aid scheme, to overcome the economic difficulties created by Russia’s invasion of Ukraine. This is a government lending program for working capital and investments aimed at SMEs and large companies in Romania. Approximately 11,500 companies can receive such funds. The program was initiated to ensure, until June 30, access to financing by companies that do not have the necessary sums for investment projects and for the continuation of their activity, the Finance Ministry announced. We want to support vital sectors such as agriculture, constructions and production and to make sure that we offer innovative Romanian companies the opportunity to reach their potential, said the finance minister, Marcel Boloş.

     

    The EU imposed unprecedented sanctions on Moscow and adopted a series of support programs and allowed member states to provide special subsidies to mitigate the economic and commercial effects of the Russian military invasion of Ukraine in February 2022. Europe was subsequently faced with an explosion of prices and turbulence in the financial markets. The war has had enormous economic costs so far. It was not just the economies of the two countries in conflict that suffered, but the entire planet. Already rated as one of the costliest wars in human history, the price of this conflict has so far been estimated at over two and a half trillion dollars, that is over two thousand five hundred billion. Comparatively, this sum is equivalent to Romania’s GDP for seven and a half years. And it represents, in just two years, more than half the estimated costs of World War II, which lasted six years and was the most devastating conflict in history. (LS)

  • December 2, 2022 UPDATE

    December 2, 2022 UPDATE

    VISIT The president of Romania Klaus
    Iohannis had a meeting in Athens on Friday with his Greek counterpart, Katerina
    Sakellaropoulou, who reiterated Greece’s full support for Romania’s Schengen
    accession. The two officials praised the very good relations between the two
    countries, strengthened by cultural affinities and by a long common history,
    and emphasized the close cooperation at EU, regional and international level. Given
    the current security situation generated by Russia’s illegal military
    aggression against Ukraine, they emphasized the importance of maintaining
    trans-Atlantic unity and solidarity and reiterated the support that their
    respective countries will continue to give to Ukraine and to Ukrainian refugees,
    as well as to the R. of Moldova. The Romanian president is in Greece for a
    2-day official visit.


    COMPANIES The number of new
    companies running on foreign capital set up in Romania in the first 10 months
    of the year is 30.7% higher than in the corresponding period of 2021, according
    to the National Trade Registry Office. The 6,175 new companies have a combined
    share capital of over USD 35 million. At the end of October 2022, 243,022
    companies in Romania had foreign share capital. The largest number of companies
    had Italian investors, but the highest capital value was reported for Dutch
    companies. In related news, Romania’s software industry is growing steadily,
    with the combined turnover in the sector expected to reach a record-high EUR 11
    billion this year. According to a survey, the upward trend has been steady for
    the past 10 years, and the growth rate almost tripled during this period. In
    2021 there were over 30,000 software firms in Romania.


    GAUDEAMUS The 29th edition of the
    Gaudeamus Book Fair hosted by Radio Romania kicks off next week.
    200 publishers will be exhibiting their latest and current releases in various
    formats, addressing all age brackets and fields of interests, music as well as
    educational games. 600 events have been announced in addition to various
    related projects. Pavilions are also available online on gaudeamus.ro. The
    Gaudeamus Book Fair is financed by the Ministry of Culture.


    POLITICS The National Congress of the Alliance for the Unity of
    Romanians (AUR), a nationalist party in opposition in Romania, Friday endorsed
    its political promotion strategy for 2023. It includes building a mobile
    hospital and organising medical caravans which would also present the party’s
    views on the main areas of interest. The party president, George Simion, added
    that some of the subsidies received by the party will be used for purchasing
    school buses. The head of the party’s National Council, Claudiu Târziu, said
    national reunification is AUR’s country project and requested the governments
    of Romania and of the R. of Moldova to initiate immediate consultations in this
    respect.


    SCHENGEN The Dutch government Friday decided to agree with Romania’s
    and Croatia’s Schengen accession, but will oppose the accession of Bulgaria, on
    grounds that the country does not meet the required conditions. The Swedish
    parliament’s committee for European affairs also voted in favour of Romania’s
    accession. The Romanian PM Nicolae Ciucă and the foreign minister Bogdan
    Aurescu hailed the decisions concerning Romania. A possible enlargement of the Schengen
    area is one of the topics on the agenda of the Justice and Home Affairs Council
    meeting due on December 8. (AMP)

  • Talks on “solidarity tax”

    Talks on “solidarity tax”


    Romanias coalition government faces significant budgetary strain, after having committed to raise minimum wages, public pensions and child allowances as of January 1.



    These days the 2022 budget is being outlined, and a means to increase revenues would be to levy a solidarity tax on big companies. The idea came from the most junior member of the ruling coalition, the Democratic Union of Ethnic Hungarians in Romania. Its president, deputy PM Kelemen Hunor, said the proposed 1% of turnover will go into investments in priority fields such as healthcare and education.



    “It is a short-term proposal, for one year, in order to increase revenues to the budget at a difficult time, when inflation and the rising energy prices force us to bring additional funding to the budget so as to help the people who need assistance,” Hunor explained. He added that in difficult periods, companies must show solidarity towards the people and the society from which they derive their profits.



    The Social Democrats back the idea, but the Liberals are reluctant. The targeted private or public companies are the ones with turnover above 100 million euros.



    The matter will be discussed with the business community, which has already responded with little pleasure to the rumours of overtaxing. The American Chamber of Commerce in Romania, representing over 470 American, Romanian and multinational companies, voiced concern with the governments plans to increase the tax burden on big companies in Romania, at a time when investments and businesses are already affected by multiple crises.



    After an extended political crisis during which companies confidence in the Romanian business environment plummeted, concurrently with the Covid crisis, the energy crunch and deepening tensions in the labour market, the news of new taxes can only increase the risk of companies turning somewhere else for their investments and expansion plans, AmCham warned.



    According to its officials, the lack of predictability and deepening instability entailed by rushed measures discourage investments and businesses plans for the Romanian market, and the medium and long-term negative impact will overshadow the short-term gains.



    According to economic media, over 300 Romanian and foreign companies operating in the country may be affected by the 1% “solidarity tax”, and figures indicate that this way the government may collect an additional 1 billion euros to the state budget.



    In turn, the Foreign Investors Council also wants the measure dropped, arguing that it punishes precisely those companies that comply with fiscal regulations and have managed to perform properly under restrictive Covid-related circumstances. (tr. A.M. Popescu)


  • Measures against failure to observe anti-COVID-19 restrictions

    Measures against failure to observe anti-COVID-19 restrictions

    The Romanian Government is looking for solutions to impose stricter compliance with the rules for preventing and combating the spread of COVID -19. Therefore, the Prime Minister Florin Cîţu has announced that a law will be drafted, which provides for the suspension of the activity, for a determined period, of the companies that do not observe the measures adopted during the state of alert, which is in force in Romania at present. The proposal was made by the National Committee for Emergency Situations, during discussions with government members. The conclusion of the talks was that many companies do not take into account the restrictions in place. The Prime Minister says that the law will target only companies, further explaining that fines will not be increased, because the move has no effect whatsoever. He says that offending companies’ activity might be initially suspended for at least 2 weeks, with the period of suspension being gradually increased for those that still do not comply with the restrictions.



    The authorities’ announcement comes shortly after images on social media networks showed that hundreds of young people from Bucharest were queuing in front of a fast-food restaurant that offered free burgers, in full pandemic. The owners did not observe the anti-epidemic rules, therefore the fast-food restaurant was fined. Moreover, a high-ranking officer within the Bucharest Police, several prosecutors and other people were seen attending an event in a central restaurant that should normally have been closed. The Interior Minister announced a preliminary investigation to be conducted in the officer’s case, in order to establish his guilt or the existence or non-existence of a disciplinary offense, given that the respective officer had been appointed to coordinate the actions aimed at preventing and combating the effects of the pandemic in Bucharest. The Interior Minister also expressed his appreciation for the work of the vast majority of the ministry’s employees who did their best, during this period, to limit the spread of the virus.



    On the other hand, it is a well-known fact that, in the mountain resorts on Prahova Valley (center), hundreds of people are crowding at the cable transport facilities to get at the top of ski slopes, which are open in Romania. Despite the presence of gendarmes, the distancing measures are not respected, given that people are crowding. It remains to be seen to what extent the new punitive measures envisaged by the government will be enforceable, if we take into account that, last year, the Constitutional Court rejected a law that imposed severe fines on citizens for non-compliance with restrictions during the emergency period. The increase in fines at that time was challenged at the Constitutional Court by the Ombudsman, who won the case. (tr. L. Simion)