Tag: consumption

  • Measures for Combating Drug Trafficking

    Measures for Combating Drug Trafficking


    After several tragic events caused by drug consumption shocked Romania this summer, Parliament in Bucharest is trying to toughen the legal means against the consumption, possession and traffic of illegal substances. Upon the USR initiative, Interior Minister Catalin Predoiu, who was Justice Minister before, has been invited to the Government Hour in the Chamber of Deputies to give assurances that the fight against this scourge together with fighting human trafficking and organized crime groups are a priority of his mandate. According to him there is a national anti-drug strategy endorsed by the government for the period between 2022 and 2026. He has also said that in the past three months, 44 organised crime groups have been dismantled and hundreds of kilograms of high-risk substances have been seized. Cătălin Predoiu has also defended the activity of his subordinated personnel.


    Catalin Predoiu: “There are hundreds, thousands of actions which resulted in the capture of drugs, and the protection of the citizens rights. What are we going to do next? I am reshuffling the entire inspectorate in Constanta. In record time the experts of the Ministry have made public a draft law aimed at reorganizing and rethinking the frame law for drug fighting.”


    Furthermore, Predoiu says that the ministry he leads has staged a special plan of measures for fighting drug trafficking in schools which comprises daily actions. He has accused the USR representatives that they are using the drug-related dramas as an electoral leverage as they are the promoters of a draft law for the legalization of a consumption of 3 grams of cannabis.


    During the debates, the former Interior Minister Lucian Bode has pleaded for a national pact, without political implications, for fighting drug trafficking.


    Lucian Bode: “This really means to defy an entire country; to come and support the legalization of drug consumption on one hand and on the other to call on the authorities to apply concrete measures. The drugs consumption issue is a complex threat, which calls not only for resources but also for vision and adjustability. Results cannot be obtained overnight as much as we want.”


    In response the USR say that they didnt get from the minister any satisfactory answer to the questions addressed in Parliament and have called for a serious reform of the Police forces. The USR MPs have said that the Interior Ministry is not doing its mandate properly. Here is USR leader, Ionuţ Moşteanu:


    Ionut Mosteanu “We have seen no answer to the questions we have asked the Minister. There are only figures because you can write anything on paper. The reality is different though. Drugs are sold in schools and no major network is being dismantled. You have corrupted employees, peoples trust in police is undermined by those who chose to turn the head to the other direction.”


    In turn the UDMR has called for the strengthening of the rule of law and the AUR representatives have underlined that the drug phenomenon is the result of the disastrous public policies in the past years.


    (bill)


  • Assessments by the National Bank

    Assessments by the National Bank

    The National Bank of Romania has revised upward, to 7.5%, the inflation forecast for the end of this year, according to the new estimates presented, on Wednesday, by Governor Mugur Isărescu. The initial forecast was 7.1%. At the end of next year, the inflation rate is expected to be 4.4%. According to the basic scenario, the annual inflation rate will continuously decrease until the projection horizon, i.e. June 2025, but at a relatively slower rate. Mugur Isărescu pointed out that only some increased taxes lead to an increase in inflation, namely the direct taxes on consumption, excises and VAT.



    “Increasing income taxes, for example, can even have the opposite effect. It is more difficult to calculate the increase in income taxation. It leads to a decrease in aggregate demand”, the governor of the BNR explained. According to the presentation, the basic scenario was built on the basis of the legislation in force at the time of the projection and does not include the impact of the fiscal consolidation measures recently discussed by the authorities.



    The governor of the BNR also showed that both economic growth and consumption are showing signs of slowing down: “We have economic growth, but significantly weakened for this year, compared to what we thought would happen at the beginning of the year. We have an increase in the annual rate of population consumption at T1. This surprised us too, a little. We had an increase in consumption coming from incomes, but we are noticing a softening of consumption. This attenuation is extremely visible, it is probably related to the populations term deposits. They increased significantly during this period, categorically also due to higher interest rates, therefore, lower consumption leads to higher savings”.



    In this sense, Mugur Isărescu stated that Romania must have an economic growth based less on consumption and more on investments. Attracting European funds, he emphasized, is essential from this point of view. At the same time, Mugur Isărescu said that the National Bank fully supports a government program of fiscal adjustment and consolidation. He emphasized, however, that the decision to be made should be political, not fiscal.



    Also on Wednesday, the National Institute of Statistics — INS announced that the trade balance deficit in the first half of this year was over 13.3 billion Euros, about 2.1 billion Euros lower than the one recorded in the first half of last year. According to the INS, between January 1 and June 30, 2023, important shares in the structure of exports and imports are held by such product groups as machines and transport equipment, namely over 45% for exports and about 36 % for imports, as well as other manufactured products. (LS)

  • August 9, 2022

    August 9, 2022

    BANK Romania’s Central Bank (BNR) has changed its
    inflation forecast for the end of this year to 13% and also estimates an
    inflation rate of 7.5% for the end of next year, shows a report presented today
    by the bank’s governor Mugur Isarescu. In May 2022, the bank forecast an
    inflation rate of 12.5% for this year and 6.7% for 2023. According to the National
    Institute for Statistics, the annual inflation rate stood at 15.1% in June this
    year from 14.5% the previous month. Last Friday, the bank’s board of directors
    decided to increase the policy interest rate to 5.5% a year from 4.75% starting
    August 8.








    TRADE Romania’s trade deficit went up to 15.44 billion
    euros in the first six months of the year, 4.74 billion higher than in the
    similar period last year, a report released by the National Institute for Statistics
    on Tuesday shows. According to the same sources, exports rose by 24% while imports
    went up by 28,5%. Romania’s exports and imports mainly consisted of machinery,
    transport equipment and other manufactured products.










    DROUGHT Roughly 243 thousand hectares of farmland in 30 Romanian counties have
    been affected by drought, the latest data released by the Ministry of
    Agriculture and Rural Development show. The surface affected has significantly grown
    since last week with many grain crops destroyed by the scorching weather.










    FESTIVAL The ‘Anonimul’ International Festival dedicated
    to indie film productions kicked off on Monday in the Danube Delta, southern
    Romania with ‘Mariupolis 2’ the last film by Lithuanian director Mantas
    Kvedaravicius, who was captured by the Russian army and killed in the Ukrainian
    region of Mariupol. The 19th edition of the festival includes two
    contests of Romanian and international short-reels. 12 titles are vying for a
    prize in the Romanian short-reel section, whereas 10 productions are to be
    screened in the international section. Another 13 film productions are to be presented
    during the festival whose winners will be decided by the public. The event also
    includes a series of round table talks between film lovers and filmmakers.








    PLAN The EU plan on the voluntary reduction of
    natural gas demand by 15% comes into effect today. Almost half of the community
    states have already been affected by reduced gas deliveries from Russia and
    most of them started to take measures to curb consumption and store gas for the
    winter season. Authorities in Germany, a country heavily relying on gas supplies
    decided that warm water should no longer be available in public institutions,
    while wells and parts of the public lighting have been shut down in several cities.
    Doors must be closed in air conditioned rooms in France while Greece has
    announced a 640 million Euro programme for renewing windows and air-conditioning
    in state institutions. Although Romania hasn’t announced a national strategy on
    reducing gas consumption yet, authorities here have recommended that citizens avoid
    excessive gas consumption.




    (bill)

  • Europe and Drug Consumption

    Europe and Drug Consumption

    Despite sharp criticism from
    the center-right opposition, medical associations and the church, Malta’s
    Parliament endorsed, in mid-December, a law allowing adults to carry up to 7
    grams of cannabis and grow no more than four plants at home. Malta has become
    the first EU country to legalize the cultivation and personal use of cannabis.
    The decision comes in the context of a wider trend in the EU, as in October,
    Luxembourg forwarded similar measures, though they haven’t been endorsed by the
    Legislature yet. Germany, where the use of cannabis on medical grounds has been
    legal since 2017, has announced its intention to have a regulated cannabis
    market, following similar announcements from the governments of Switzerland,
    Luxembourg and the Netherlands. In Italy, cannabis fans have gathered enough
    signatures to be able to stage a referendum on the issue.


    Europe has changed its stand on drugs after a 2020 UN decision,
    which removed cannabis from its list of dangerous substances. A survey made
    public by the Institute for Competition Economics in November shows that
    legalizing cannabis would bring Germany 4.7 billion Euros in annual revenues,
    including savings of 1.3 billion Euros in funds allotted for law enforcement.
    Besides, it would create no less than 27 thousand new jobs. But what are the
    chances for these measures, taken or considered by various countries, to keep
    drug consumption at bay – as this is a growing phenomenon in Europe whose
    market relies on both domestic production and drugs trafficked from outside.


    South America, Western Asia and North Africa are major suppliers
    of illegal drugs that find their way to Europe whereas China has become a
    source for the new psychoactive substances. The European report on drugs,
    presented in June 2021, cautions over the public health risks posed by the
    availability and use of a wider range of substances, oftentimes very strong and
    of great purity. According to the report, 15% of Europe’s adults, accounting
    for 18 million, have used cannabis in the past year and over 25% people aged between
    15 and 64, that is 7.6% of this group of Europeans, consumed cannabis in the
    past year.


    The report also describes the way in which organized crime groups
    have stepped up their production of illegal drugs in Europe and points to the
    emergence of new, harmful and strong psychoactive substances. In 2019, 1.5
    million drug offenses were reported in the EU, 82% of which were related to
    personal use or possession. At the same time, 370 illegal laboratories were
    dismantled. According to the European Observatory, more than half of the 45
    cities that have data on cocaine residues in wastewater, for the years 2018 and
    2019, reported increases. Centralized data also show that large amounts of
    cocaine and heroin are still seized in the EU, which raises concerns about the
    possible impact on consumption levels.


    Specialists in Romania also point out that the consumption of
    cannabis and substances with psychoactive properties has increased recently,
    and the age of consumers is decreasing. In the first 11 months of 2021, the
    police officers with the Directorate for Combating Organized Crime seized in
    Romania almost a ton and a half of heroin, almost 900 kg of cocaine and over
    400 kg of cannabis – ​​higher amounts as compared to the past years. Most of
    these substances do not remain in the country, Victor Nistor, Police Chief
    Commissioner explained to Radio Romania:


    Victor Nistor: All the large amounts seized in Romania,
    in recent years, have actually transited Romania, they were not destined for
    the Romanian market. Like other European countries, Romania is targeted by
    trafficking routes, since it has access to the Black Sea port and is located on
    the classic Balkan route of heroine, which departs from Afghanistan, Iran, and
    continues through Turkey, Bulgaria and Romania, to western Europe. If we
    compare ourselves with the surrounding countries, strictly in terms of fighting
    drug trafficking, I believe that we are doing very well. The amounts destined
    for the Romanian market are constantly increasing, as all the drug trafficking
    monitoring reports show that all types of drugs are much more present in the
    market and the number of consumers is constantly growing. said Victor
    Nistor


    Victor Nistor believes that Romania is not ready for the
    legalization of soft drugs, even if some associations are asking for it. He
    says that these measures could be taken gradually, to get the health and
    education systems prepared for it, and people should become aware of the danger
    of exposure to drug consumption. Only then could Romania adopt legislation, not
    necessarily to legalize drugs but mainly to decriminalize consumption for some
    categories of soft drugs.


    (bill & Lacra)

  • High Economic Growth Rate in Romania

    High Economic Growth Rate in Romania

    The National Statistics Institute has announced that last year Romania had a 3.7% economic growth rate compared to the previous year, with a GDP put at 158 billion euros. Contributing to this growth were all the economic sectors, except for agriculture, forestry and fisheries. According to Eurostat, the European statistics bureau, Romania had the third-highest economic growth rate in the EU in the last quarter of 2015. In an interview to Radio Romania, economic analyst Constantin Rudnitchi said growth had been prompted by consumption, which was 15% higher than in the previous year, thanks to salary raises and lower taxes, especially the VAT. While he believes Romania’s leading position in this respect to be justified and predictable, Rudnitchi nonetheless warns that this type of economic growth is not completely robust, if it carries on.



    The Romanian economy has managed to grow, primarily relying on consumption. Investments were not that important during this period. This is not necessarily the robust growth type, but the problem is that it should not last for a long time and should not be very substantial. We need to pay special attention to how companies are treated. If we have investors with a major impact on the economy, they should not receive privileged treatment, but rather we should make sure that they operate properly in a highly competitive European economy.”



    Total investments in the Romanian economy went up last year by over 8% compared to 2014 and reached a rough 16 billion euros. More than 40% of the investments went into trade and services, while investment in agriculture, industry and construction dropped slightly. On the other hand, in Bucharest, the Chamber of Deputies’ Committee on Labour passed a bill under which child rearing benefits could be paid in full up until kids reach 2 years of age, and the 750-euro income ceiling for the payment of such benefits could be scrapped. Deputies argue the bill is necessary if Romania wants to improve its birth rate. Labour Minister Ana Costea said the Government would draw up the secondary legislation for the new law, but that a set of measures agreed jointly with the Committee would be preferable.



    There are no other proposals. The ceiling was originally set in order to ensure some balance and to prevent fraud or discrimination, but given the recent salary increases, it has become restrictive.”



    The bill will be sent to the Chamber of Deputies for the final vote, and if passed, it will take effect on July 1.


    (Translated by A.M. Popescu)

  • January 22, 2016 UPDATE

    January 22, 2016 UPDATE

    ENERGY – At present Romania has no problems with its natural gas supplies, the National Natural Gas Transport Company, Transgaz, announced on Friday. According to a news release issued by the institution, the system is balanced and operates at normal standards in spite of the extremely low temperatures reported these days. The situation is under permanent monitoring and there is no emergency in the system, Transgaz added. Romania has 1.3 billion cubic metres of natural gas stored in its six underground facilities, and the daily consumption is around 50 million cubic metres. The low temperatures of the past few days pushed the daily electricity and natural gas consumption figures to record levels.



    JUDICIARY – The Mayor of the town of Hârlău (in eastern Romania), the Social-Democrat Constantin Cernescu, and the deputy Florin Ţăpuşă, have been taken by anti-corruption prosecutors under charges of bribe taking, abuse of office, forgery and criminal incitement. In the same case, which probes into illegal transactions with wood carried out over the past two years, the head of the local forestry office and his personal driver have also been arrested.



    DIPLOMACY – The Minister delegate for the Romanian diaspora, Dan Stoenescu, is on a three-day visit to neighbouring Ukraine as of Friday. During the talks with Ukrainian officials, Stoenescu reiterated Romanias support for the EU accession efforts made by Ukraine, and Bucharests willingness to provide assistance in extending domestic reforms in the field of national minorities. The agenda also includes meetings with members of the Romanian community in Ukraine, which is nearly half a million people, mostly living in villages and towns near the common border.



    BODNARIU CASE – A delegation of the Parliament of Romania is in Norway, in an attempt to contribute to the settlement of the situation of Romanian families whose children were taken over by the Norwegian social services. The Orthodox Bishop Macarie Dragoi of Northern Europe is also on a visit to Norway. He said the family is the most appropriate environment for educating children. These visits come against the backdrop of strong emotional responses in Romania after the Norwegian authorities decided to take five children, aged between 4 months and 10 years, from a Romanian-Norwegian family, on grounds that the children were subjected to physical punishments by their parents. Thousands of Romanians, both in Romania and abroad, took part in rallies to voice their solidarity with Ruth and Marius Bodnariu.



    MIGRANTS – More than 40 migrants drowned off the Greek and Turkish coastlines, in two separate incidents, while trying to reach the EU. According to commentators, such tragedies are the result of a deadly combination of bad weather, overloaded boats and huge numbers of refugees from Africa and Asia, who try to cross the sea into Europe every day. According to the International Organisation for Migration, 31,000 people arrived on Greek islands since the beginning of the year, which is 21 times more than in January 2015. Last year over a million migrants and refugees crossed the Mediterranean to get into Europe, and 3.700 drowned.