Radio România Internațional

Tag: crisis

  • Housing as a fundamental human right

    Housing as a fundamental human right

    Housing costs are the biggest expense in households in the European Union, and the rising house prices and rents, the high construction costs and the rising mortgage interest rates are just some of the effects. Where does Romania stand in this context? ‘Housing must be treated as a fundamental right, so that all Europeans, including young people and vulnerable groups, should enjoy decent and sustainable living conditions.’ This was the sentiment expressed in one voice during the first housing forum at the end of last year in Brussels.

     

    A 2023 report showed that nearly half of the rent-paying Europeans felt they were living at the risk of having to leave their home in the next three months because they could no longer afford it. Meanwhile, homelessness is becoming one of the continent’s biggest problems, with nearly a million people without a home.

     

    According to the General Secretary of Housing of Europe, Sorcha Edwards, the current housing crisis has many facets. In addition to overcrowded areas and housing, which contrasts with under-occupied regions, we also face energy poverty, meaning houses that have not been modernized and insulated and thus push people into poor conditions, that is too hot in the summer and too cold in the winter. Another problem is housing for the elderly or disabled, which is not adapted to their needs.

     

    Sorcha Edwards: “We see also people, victims of domestic violence for instance, who do not find alternative accommodation. And of course, we see the most visible face of the housing crisis is homelessness. But the problem and why we have these problems in some areas is mixed. So, it’s sometimes a lack of capacity within local authorities, within governments, because this is a very complex issue.  And very often we have lost the knowledge within our governments to manage this complex sector.  And we have hoped that in many cases that the market would take care of it. And of course, when we leave a sector like this only to the market, we see opportunism, we see extraction of profit.”

     

    Although, according to Eurostat statistics from 2023, Romania is the country with the highest percentage of homeowners (93% of Romanians own the house they live in and only 7% are rent payers), Romanians’ houses were among the most crowded (40%), surpassed only by those in Latvia, with 40.9%. In addition, houses in Romania and Slovakia have the lowest number of rooms per person: 1.1 rooms against a European average of 1.6. At the opposite pole are Malta and Luxembourg, with 2.3 and 2.2 rooms per person respectively. In 2023, only 1.5% of the entire EU population lived in households without an indoor toilet, shower or bathtub, but, by far, the highest percentage of these were in Romania, over 20% (followed by Bulgaria and Latvia, with 7% each).

     

    Asked what solutions Romania could adopt, inspired by the successful projects of other member states, Sorcha Edwards answers: “Obviously in housing a copy-paste is not really possible. You have to look at your local needs, local scenarios, trends, average income of the population, what are the forecasts in terms of demographic forecasts, in terms of employment opportunities, are there areas where you predict more employment opportunities. So, you have a range of different considerations. But one that we have seen as a very successful approach is to increase the supply of limited profit, public or social housing, depending on which of those models fits more within the local culture and the local needs. So, what that can do is that it can ensure that you avoid housing exclusion, you help to avoid housing overburden rate, and you have to help to provide a choice for people.”

     

    Although the landscape differs from one member state to another, even from one area to another, the main difficulties in reducing the housing crisis at the European level do not differ much from those faced by Romania. Sorcha Edwards is back at the microphone: “So, what we are seeing now is a huge hike in the price of construction materials. This is obviously slowing down the delivery. We are also seeing difficulty in accessing the right amount of land. And if we think about also the potential for conversion of existing buildings, which obviously is also a fantastic option in terms of reducing CO2-embedded carbon in new housing deliveries, we are also seeing delays in the permits because of complexity around ownership of existing buildings. So, these are all issues that can be overcome if we have a clear vision and a clear political will and targets to reach.”

     

    Although Romania has to recover in different aspects compared to the other member states, and although rent and housing prices have also increased in this country, the increases were less dramatic than in most states. If from 2010 to the last quarter of 2024, prices increased by 230% in Hungary and Estonia, by 181% in Lithuania, by 113% in Portugal and by 110% in Bulgaria, in Romania, the increase was below 30%.

     

    Also, according to the expert Sorcha Edwards, the housing sector plays to the tune of the investors, and if their interest does not go beyond maximizing profit in the shortest possible time, access to homes for all European citizens will continue to remain a problem. (LS)

  • December 19, 2024 UPDATE

    December 19, 2024 UPDATE

    TALKS The last thing Romania needs is a wide-scale governmental and Parliamentary crisis, the country’s president, Klaus Iohannis, said on Thursday. There is no time now for petty arguments and every leader must see themselves as a state-person and negotiate for a new government to propose a budget and stage presidential election as soon as possible next year, Iohannis went on to say. The Romanian president has announced he will summon the political parties for a new round of talks. His statement comes after the announcement by the country’s Prime Minister and Social-Democratic leader, Marcel Ciolacu that the PSD is going to withdraw from the talks for setting up an Executive and that it will be voting for a minority right-wing government. The interim PNL chair, Ilie Bolojan, says the Liberals are willing to contribute to finding a solution. In his opinion the country is already in a complicated situation and the inability to build up a ruling coalition will cost the Romanians dearly. The USR MP, Catalin Drula, whose party has been accused of far-fetched claims for carrying on the talks, has lashed out at Ciolacu’s statement and the UDMR has made an appeal to the coalition partners to come back to the negotiations table. After the cancellation of the presidential election, the pro-European parties, which won seats in Parliament following the election round on December 1st, namely PNL, USR and UDMR have kicked off talks with a view to forging a coalition government.

     

    SUMMIT ‘There would be no winners in a potential trade war between the United States and the European Union except China’, the EU’s Foreign Affairs High Representative, Kaja Kallas said on Thursday. Her statement comes against the uncertainties related to the future decisions by the Trump administration, due to take over on January 20th. There are fears the new US administration might raise import fees for European products up to 20%, an alternative being considered by heads of state and government at the European Summit underway in Brussels. The aforementioned summit, where Romania is being represented by its president, Klaus Iohannis, has high on its agenda the situation in Ukraine, migration, the Middle East, the bloc’s civil and military training, crisis-response as well as the situation in the Republic of Moldova and Georgia.

     

    FITCH The Fitch rating agency has worsened Romania’s outlook from “stable” to “negative” regarding the raring for long-term loans in foreign currency. Among the reasons cited, Fitch mentions political risk factors, including “eroded political credibility” and political uncertainty, as well as fiscal slippages and unsustainable spending. An important factor that has been taken into account is the large budget deficit. Among the causes, Fitch lists public sector wage spending and “unfunded pension increases ahead of the election”. In addition, the new Romanian Parliament is more divided and there is an increase in the share of extreme right anti-European parties, which reflects the rising polarization of Romanian society. On the other hand, a plus for Romania is, according to Fitch, the solid banking sector. Among the factors that can lead to a positive rating, the agency mentions the higher than projected fiscal consolidation, which supports the stabilization of the public debt (GDP) in the medium term and the reduction of external indebtedness and external financing risks.

     

    FOOTBALL The main shareholder of the football club Rapid Bucharest, one of the most popular in Romania, the businessman Dan Şucu, became the majority shareholder of the Italian club Genoa, the Serie A group announced on its official website. The source points out that, following a capital increase to 45,356,262 Euros, of which 5,356,262 Euros are free and another 40,000,000 paid on December 14, the Board of Directors approved the Romanian investor’s offer. He subscribed to the entire capital increase, obtaining, in return, a share in the share capital of about 77% of Genoa CFC and leaving the previous shareholders as a minority – the release also states. President of the Concordia Employers’ Confederation, Şucu (61 years old) is a prominent figure in the Romanian economy. He is the founder of Mobexpert, the largest furniture brand in Romania, with over 2,200 employees. He is also involved in the real estate sector and in the media, with a key role in the business daily “Ziarul Financiar”. Genoa is ranked 13thin Serie A after 16 matches, with 16 points.

     

    (bill)

  • A fresh perspective on Romania’s inter-war figureheads

    A fresh perspective on Romania’s inter-war figureheads

    Romania, for two decades, over 1920
    and 1940, had to face the growing revisionist aggression coming from the country’s
    two great powers lying nearby, Nazi Germany and the Soviet Union. Revisionist
    claims also came from Romania’s neighboring countries, Hungary and Bulgaria.
    Nazi Germany occupied France in June 1940. At about the same time, the Soviet
    Union issued two ultimatums to the Romanian government whereby it demanded the
    ceding of Bessarabia and Northern Bukovina. On August 30, 1040, through the
    Vienna Treaty, Germany and Italy imposed on Romania the ceding of Northern
    Transylvania to Hungary. On September 7, 1940, through the Craiova Treaty, Germany
    and Italy again imposed the ceding of the Quadrilateral region or Southern
    Dobrogea to Bulgaria. The ensuing crisis made it possible for a certain government
    to ascend to power, a government made of the Iron Guard and Marshal Antonescu. All things considered, King Carol II was the main character to be held to account
    at that time. Shortly afterwards, King Carol II lost his throne.


    The sovereign had an extremely
    powerful personality. Clever and manipulative, in 1938 King Carol II instated a
    personal authority regime, dismantling the political parties and banning free
    press. For his son, King Carol II was an abusive father, since he dethroned him
    in 1930, when Michael was a still a minor. The name of King Carol and his camarilla
    were in many cases linked to corruption scandals. In his boundless vainglory, even
    after the deep crisis of 1940, Carol II refused to step down. Instead, he simply
    left the throne and the crown.


    Notwithstanding, for his decade-long reign, between 1930 and 1940, the name of King Carol II is connected to Romania’s
    most prosperous period. Capital city Bucharest was systematized and the building
    of the Colentina river lakes in northern Bucharest was initiated. As for culture,
    at that time it benefitted from substantial support. The King’s contemporaries were
    not unanimous in stating that King carol II was a fated figurehead in Romania’s
    contemporary history.


    Gheorghe Barbul was
    Marshal Antonescu’s personal secretary. In 1984, he was interviewed by then the
    well-known historian Vad Georgescu of Radio Free Europe. The interview, in 1993,
    was included in Radio Romania’s Oral History Center Heritage. According to
    Gheorghe Barbul, despite Carol II’s fraught relation with Antonescu, the latter’s
    mindset was largely based on political stability, while in Antonescu’s opinion,
    monarchy and the King simply overlapped.

    Gheorghe Barbul:


    Monarchy, Antonescu believed, was indispensable
    to a country like Romania, a young country. It was only monarchy that could
    guarantee the continuity of the state in a world of demagogues, where, in his own
    words, vote owners had replaced the land owners. He hinted at the gap between
    pre-1914 Romania and Romania after 1920. And he believed that, given the
    impending necessity for the country to have a monarchy, King Carol should in no
    way be lambasted, whatever his sins may be. And that because a form of instability
    on Romania’s throne could have posed a danger for the country. The father had
    already dethroned the son and had ascended the throne, if what a certain part of
    the opposition intended to do, especially the National Peasant Party and the Iron
    Guard, namely having Michael remove Carol from power and ascending the throne for
    the second time around, if all that meant instability.


    For jurist and political detainee Radu
    Boroș King Carol II was, just as he claimed in an interview dated 1995, one of Romania’s
    most important sovereigns who also gave an impetus to the development of
    aviation, a domain which at that time had been gaining ground in the country.


    Radu Boros:

    For me, as a Romanian,
    King Carol is still la great king. And, had Romanians been able to understand
    him, the progress that we would have made would have been a lot greater that it
    actually was. All that was done from the end of World War One to the second
    world war, everything that was achieved at home, in industry, in administration
    and such like was entirely his will, all that occurred under his patronage, it
    was imposed by him. When he came, he found out that in Romania, regarding
    aviation, we had nothing! We, in World War One, had very few pilots and captive
    balloons. We dealt more with captive balloons than with fighter planes or strategic
    bombing capabilities. We, during World War One, had not been what we subsequently
    were during the Second World War. Then he decided to give a fresh impetus to
    aviation and the impetus he gave military aviation was really great. As part of
    military aviation, he was the one who was dead set on founding Romanian
    Aeronautics Enterprise in Brasov, where we also built a fighter plane, I.A.R.
    14, which at that time, in 1937-1938, was one of the best fighter planes. And
    yet, apart from military aviation, he realized we also needed civil aviation. He
    was far-sighted and understood aviation was about to become an important means of
    transport. And then he decided to establish a Romanian air transport society. Before
    this Romanian company was created, Romania participated alongside France in the French-Romanian
    Society.


    King Carol II
    is one of history’s controversial personality. Yet without such a personality,
    existence would have been quieter but duller.

  • Romania supports R. of Moldova

    Romania supports R. of Moldova

    With a war at the country’s borders as winter
    approaches and with the country relying increasingly on electricity imported
    from Romania, the president of the R. of Moldova Maia Sandu travelled to
    Bucharest on Tuesday, to ask for the help of the Romanian authorities.


    Bucharest promised further support for the
    neighbouring state in coping with the energy crunch and with the management of
    the Ukrainian refugees, given that Moldova is the country the most affected by
    the migration of Ukrainian nationals.


    During the political consultations with president Klaus
    Iohannis, Maia Sandu thanked for the measures taken by Romania to facilitate
    the provision of electricity, natural gas, firewood and heating oil to Moldovan
    citizens. The 2 officials also analysed the p[progress of bilateral energy
    infrastructure interconnection projects.


    Klaus Iohannis voiced support for Chişinău’s efforts
    to reform its energy system in keeping with its commitments to the EU. Moreover,
    he said Bucharest will continue to support the neighbouring country on its path
    towards EU integration.


    The regional security and energy situation were also the
    main topic of the Moldovan official’s talks with PM Nicolae Ciucă. Maia Sandu once
    again thanked Romania for its prompt response related to Moldova’s electricity deficit.
    Specifically, Romania started providing electricity and natural gas to Moldova
    in an emergency procedure, after Ukraine suspended energy exports to Chișinău because
    of the Russian shelling of its power plants.


    Maia Sandu also discussed her country’s energy-related
    difficulties at an international conference on gender equality in politics,
    held in Bucharest.


    Maia Sandu: I
    know how hard it is to help others when your own citizens are in difficulty, but
    these are truly dramatic and decisive times, and we need each other. Because of
    the war, we are experiencing a major energy crisis, and we risk running out of
    gas and electricity for this winter. For Moldovan consumers, natural gas
    tariffs went up 6 times this past year, and they are currently double the
    prices in Romania. With electricity, things are just as bad. After the Russian
    Federation bombed Ukraine’s networks, Gazprom cut down to a half the volume of
    natural gas supplied to Moldova, and the supply of electricity from left of
    Dniester for the coming month is uncertain. Securing electricity for the
    country has become a daily challenge.


    Romania is not the only country committed to
    supporting Moldova. After a meeting of the Nordic Council in Helsinki on
    Tuesday, Norway (Europe’s biggest natural gas supplier) along with Finland,
    Sweden and Iceland pledged their support for Ukraine and Moldova with respect
    to this winter’s natural gas supplies. (AMP)

  • Forecasts on energy prices

    Forecasts on energy prices

    After a 60% surge this year, prompted by the war
    started by the Russian Federation in neighbouring Ukraine, energy prices are
    forecast to drop 11% next year. According to a World Bank report, a slower
    global economic growth and the Covid-related restrictions introduced in China
    may lead to an even more substantial decrease.


    In spite of this slow-down, energy prices will still
    be 75% above the past five years’ average. The WB’s latest Commodity Markets
    Outlook, made public on Wednesday, indicates that the average price of Brent
    crude oil is likely to be 92 US dollars per barrel in 2023, and expected to
    drop to 80 US dollars per barrel in 2024, but it will be nevertheless
    substantially above the USD 60 multiannual average.


    World Bank forecasts also indicate that Russia’s oil
    exports might decrease to 2 million barrels a day, as a result of the ban
    considered by the EU with respect to Russia’s oil and natural gas, adding to
    which will be restrictions related to the insurance and shipping of Russian oil
    and gas. The ban is scheduled to take effect next month.


    Moreover, the report reads, G7 is looking at a yet
    untested price-capping mechanism, which may also affect Russia’s oil exports.


    The WB analysis also takes into account the effects of
    the US dollar appreciating against the currencies of most developing economies,
    a situation that has led to rising foodstuff and fuel prices. And this, the
    financial institution warns, may deepen food insecurity which is already
    impacting 200 million people around the world. As the authors of the document
    explain, the mix of high prices for raw materials and the persistent currency
    depreciation translates into higher inflation in many countries.


    In this context, emerging and developing economies
    should prepare for higher volatility in the global financial and commodity
    markets. WB experts say that currency depreciation forced nearly 60% of the
    emerging and developing economies to face increases in oil prices in their
    local currencies, following the Russian invasion in Ukraine.


    The WB forecast also indicates that both natural gas
    and coal prices are expected to decrease in 2023 from the record-high levels
    reported this year, but natural gas prices in Europe may remain almost 4 times
    higher than the average for the past 5 years. (AMP)

  • October 25, 2022 UPDATE

    October 25, 2022 UPDATE

    ARMY DAY The Romanian Army Day was celebrated on Tuesday with a
    series of events staged all over Romania and in other regions around the world
    where Romanian troops are stationed now. Wreath laying ceremonies took place at
    heroes’ monuments around Romania and abroad, in countries like Austria, Bosnia
    and Herzegovina, Bulgaria, the Czech Republic, the Russian Federation, Poland,
    the Republic of Moldova and Hungary. The Army has been and will always be a
    symbol of resilience and an essential element in the development of Romania,
    president Klaus Iohannis
    said on this occasion. He added that Romania has a distinct place within NATO
    and is an indisputable provider of security at the Black Sea and on NATO’s
    eastern flank. According to the Romanian Defence
    Ministry, during WWII, out of roughly 540,000 servicemen deployed, 90,000 were
    KIA, 60,000 MIA and over 330,000 were wounded. After freeing the Romanian
    territory on October 25th, 1944, the Romanian army continued to
    fight in Hungary, Czechoslovakia and Austria alongside the allied troops,
    contributing to the May 9th 1945 victory, which marked the end of WWII in
    Europe.


    DEFENCE The Supreme Defence Council, convening on
    Tuesday in Bucharest, approved updates to key directions of the Army 2040
    programme, including the budgeting for personnel needs,
    reconfiguring equipment procurement programmes and revamping the defence
    industry, as well as measures to better retain skilled military personnel. Army
    2040 aims to help develop national military capabilities that enable the
    government to fulfil its constitutional obligation to safeguard the territorial
    integrity of Romania. To this end, the country will earmark 2.5% of its GDP to
    defence as of 2023.The Council also
    reviewed and approved the Energy Ministry’s plan to improve Romania’s energy
    resilience, so as to protect citizens and to secure continuing supplies of
    electricity and natural gas, for prices that are not a burden to households. The
    Council also discussed the support Romania will continue to provide to Ukraine,
    and looked at ways to counter prospective threats.


    DECREE Romania’s president Klaus Iohannis Tuesday signed a
    decree acknowledging the resignation of Defence Minister Vasile Dincu and
    designating Prime Minister Ciuca as the country’s interim defence minister. The
    Social-Democrat Dincu stepped down on Monday, two weeks after he made a number
    of controversial statements concerning the situation in Ukraine. The Social
    Democratic Party (PSD) has called for an emergency meeting of the ruling
    coalition for a decision on Dincu’s successor.


    COAL Romania has increased its coal output in order to cope
    with the energy crisis. According to the National Statistics Institute, the output
    went up by 1.7% and imports by 13.5% in the first 8 months of the year. The
    National Strategy and Forecast Commission estimates for this year a coal output
    10% bigger than in 2021 and imports 2.8% higher, with the coal production expected
    to grow by 8% next year.


    REFUGEES According
    to the Romanian Foreign Ministry, since the beginning of the war in Ukraine,
    over 2.6 million Ukrainian nationals have transited Romania and over 86,500
    have chosen to stay here. Eight months on from the beginning of the conflict on
    February 24th, Bucharest highlights its active involvement in facilitating the
    transport and transit of Ukrainian grain towards international markets. At the
    same time, the humanitarian hub in Suceava, north-eastern Romania, has
    contributed to 56 humanitarian aid shipments from countries like Italy, France
    or Germany.


    ECLIPSE A partial solar eclipse was visible in Romania on Tuesday.
    According to the Astronomic Observatory in Bucharest, the sun was covered up to
    44% and the eclipse lasted for two hours and a half. (AMP, DB)

  • October 23, 2022 UPDATE

    October 23, 2022 UPDATE

    NATO Spain is going
    to send F-18 and Eurofighter jets to Romania and Bulgaria, to help strengthen
    NATO’s eastern flank in the context of the war in Ukraine. According to Radio
    Romania’s correspondent in Madrid, the aircraft, pilots and relevant auxiliary
    and maintenance personnel will reach the Feteşti air base in the south of
    Romania on December 1, and will be stationed there until the end of March 2023.
    Currently stationed in Zaragoza, they will monitor air space in the region and
    take part in training missions. This is Spain’s response to the Allied request
    for an enhanced contribution to NATO’s prevention capability, the Spanish
    defence ministry said, and added that Spain has already installed a long-range
    air surveillance radar in Schitu, Constanţa County, operational since October
    17 and serviced by 38 troops.


    BORDER Romania’s
    border police announced that over 97,000 people entered Romania on Saturday, of
    whom more than 9,500 were Ukrainian nationals, up 15.6% since the previous day.
    According to current data, over 2.6 million Ukrainian citizens have entered
    Romania since February 10, and nearly 4,400 of them have applied for asylum
    here.


    NRRP Romania is
    set to receive EUR 2.6 bln in the coming days under the National Recovery and
    Resilience Plan, to be channelled into the country’s economic recovery. The
    funds are transferred after the European Commission authorised the payment of
    the first instalments of the non-reimbursable aid and loan components. Romania submitted
    the first payment request in May, after meeting the targets and benchmarks for
    the 4th quarter of 2021. In September, the European Commission’s assessment of
    these targets was approved and submitted to the Economic and Financial
    Committee, which also approved it. The Romanian minister for investment and
    European projects Marcel Boloş believes this is just the beginning of a long
    road, which, if successfully completed, will translate into investments in
    motorways, railways, schools and hospitals. The next payment request will
    amount to EUR 3.2 bln, for which over 50 targets will have to be met, related
    to the first half of this year. Romania may access a total of nearly EUR 30 bln
    under the National Recovery and Resilience Plan, of which it has already
    received 2 pre-financing instalments amounting to a rough EUR 3.8 bln.


    COAL Romania has
    increased its coal output to mitigate the energy crunch. The amounts extracted
    in the first 8 months of the year went up 1.7% and imports rose by 13.5%, the
    National Statistics Institute reports. The National Strategy and Forecast
    Commission estimates for this year a coal output 10% higher than in 2021 and a
    2.8% rise in imports. For 2023, the Commission forecasts an 8% increase in
    output.


    CHINA The Chinese
    president Xi Jinping was re-elected on Sunday as leader of the ruling Communist
    Party, thus becoming China’s strongest leader since Mao Zedong, the founder of
    the Chinese communist regime, international news agencies report. Xi Jinping was
    appointed for a 3rd five-year term in office by a largely reshuffled Central
    Committee, and is very likely to be re-elected president as well in March. ‘China cannot develop without the world, and the world also
    needs China,’ he said, and praised what he called the two miracles achieved
    by his country-rapid economic development and long-term social stability. Xi
    Jinping appointed many of his close allies in the Standing Committee, a 7-member
    group in power in China. The all-powerful Politburo includes no women among its
    members for the first time in 25 years.


    HANDBALL The
    Romanian women’s handball champions, Rapid Bucharest, Sunday defeated Storhamar Handball Elite,
    of Norway, 27-25, in a home match in Champions’ League Group B. Rapid remain
    undefeated after 6 matches in Group B. Their next game is scheduled on December
    3, away from home, against handball powerhouse Gyori Audi ETO KC. (AMP)

  • European aid for energy

    European aid for energy


    The European leaders have decided to discuss, this weekend, in Brussels, additional measures to secure the energy supply, but also to reduce prices. Meanwhile, in Bucharest it has been announced that Romania will receive 2.2 billion euros, from European funds, to help the vulnerable population and companies cope with the increase in energy bills, after the European Commission decided that 10% of the unspent funds from the 2014-2020 programming period can be allocated to new forms of support.



    In Wednesdays Government meeting, Prime Minister Nicolae Ciucă stated that, in addition to compensating the invoices received by needy families or granting vouchers, money will also be directed to supporting small and medium-sized enterprises and creating jobs. The Minister of European Funds, Marcel Boloş, detailed the main directions in which the money will go:



    “There are three types of measures that can be taken. One is to help vulnerable households face the energy crisis, including with regarding to the price of energy. The second possible measure will be the one related to the working capital grants to be granted to SMEs and the third type of measure is the one related to employment and job creation.”



    In parallel, the situation generated by the energy crisis was the subject of a debate held in Parliament on Wednesday, as a result of the growing number of complaints received from citizens about energy bills. Most people are unhappy with the invoiced price and the calculation formula. All major suppliers in the country are targeted. The National Authority for Consumer Protection has announced that steps are being taken for a single, easy to decrypt invoice template to be used at national level.



    Representatives of the Romanian Ministry of Energy have said that there is political will to ensure the return to a partially regulated market throughout the chain, from the producer to the final consumer. We recall that starting January 1, 2021, the Romanian energy market has been completely liberalized, a process often criticized for its defective implementation, which has triggered a quasi-chaos, overlapped by the consequences of the war in Ukraine.



    Looking at things in perspective, amid fears regarding Europes energy future, the Romanian national company Romgaz and Socar from Azerbaijan have agreed to lay the foundation for a joint project to transport liquefied natural gas through the Black Sea. A memorandum of understanding in this regard was signed in Bucharest. The goal is to diversify and supplement the gas supply corridors from the Caspian Sea basin to Europe. Romania is thus hoping to become an important energy and natural gas hub. (MI)


  • September 10, 2022 UPDATE

    September 10, 2022 UPDATE


    KING Senior British MPs Saturday swore an oath of allegiance to King Charles III, officially proclaimed king by the Accession Council,a body convened to confirm the new British monarchs throughout history. Both chambers of the British Parliament held special sessions, so that lawmakers may honour the Queen. Thousands have gathered in front of Buckingham Palace, the main residence of British monarchs in London, to pay tribute to Queen Elizabeth II, who passed away on Thursday, aged 96, at Balmoral Castle in Scotland. King Charles III confirmed that the day of the Queens funeral will be a banking holiday in the United Kingdom. The funeral will take place at Westminster Abbey in London, on Monday, 19 September. The Queens coffin will be brought to Edinburgh on Sunday and later on to London, where the Queen will lie in state at Westminster Hall. After the service, which will be attended by heads of state and government from around the world, the Queens coffin will be taken to Saint Georges Chapel at Windsor Castle, where the Queen is to be buried.



    ENERGY EU energy ministers voiced support for emergency measures in response to the energy crisis, and even mentioned price capping for natural gas imports. At Fridays extraordinary meeting in Brussels, officials for the 27 Member States agreed that a “unified approach” was needed to address the rise in energy prices caused by Russias invasion in Ukraine. They gave the European Commission several days to come up with a solid and concrete plan, said the Czech industry minister Jozef Sikela, whose country holds the rotating presidency of the Union. Romania, which was represented by the energy minister, Virgil Popescu, pleaded for measures such as a price cap on Russian gas imports or an EU-wide platform for the joint procurement of natural gas. As for cutting down consumption, Bucharest said this should be voluntary, depending on national capacities and market developments.



    FLIGHTS The national airline TAROM Saturday scheduled 2 additional flights to Greece to repatriate the Romanian passengers abandoned by the low-cost operator Blue Air, which announced it lacked funding even for fuel. TAROM has so far organised 4 other special flights, to Israel, Greece, Cyprus and Spain. Several thousand Romanians have been stranded in international airports since Tuesday night, when Blue Air announced it was suspending flights. Although the authorities have unfrozen the accounts of the airline, which had excessive debts to the Romanian state, Blue Air said it would only resume flights on 10 October. The transport minister Sorin Grindeanu urged Blue Air customers to try to find other options to return, and pointed out TAROM could not replace all the flights that had been cancelled. In 2020, during the COVID pandemic, Blue Air took out a state-guaranteed loan of over EUR 60 mln. This summer, it was fined EUR 2 mln by the Consumer Protection Authority, for cancelling over 11,000 flights in 2021 and 2022. Blue Airs current estimated debts amount to EUR 230 mln.



    UKRAINE Romania and 3 other EU member states (Greece, Poland and Lithuania) call on the European Commission to grant them exemptions from the budget deficit rules, with respect to military expenditure, in order to be able to make the investments required after the Russian invasion in Ukraine. They want this expenditure excluded from the deficit calculation, so that the 3% of GDP ceiling required by the EU may be observed. The 4 countries argue that this would help them mitigate the risks facing the Union. Meanwhile, a report made public by the World Bank, the Ukrainian government and the European Commission indicates that Ukraines reconstruction after the Russian invasion may cost around USD 350 bln, with figures set to increase in the coming months, as the war continues. According to the report, reconstruction and revamping needs in the social, industrial and infrastructure fields are 1.5 times higher than Ukraines GDP in 2021. Russias aggression had caused direct damages of over USD 97 bln by 1 June, with the most affected areas including housing (40% of the total damages), transports (31%), trade and industry (10%). The regions of Donetsk, Luhansk and Kharkiv are the most heavily hit, followed by Kyiv, Chernihiv and Zaporizhzhia.



    RUSSIA A number of Russian Deputies from the Sankt-Petersburg area were summoned to the police after requesting the impeachment of president Vladimir Putin for high treason, in relation to the Russian aggression in Ukraine. In a rare show of dissent, they called on Russias parliament to impeach the president for the death of Russian youth sent to war, for Russias economic downturn and brain drain, and for NATOs eastward expansion. Not least, they argued, the invasion of Ukraine had the opposite effects to those expected by Moscow. (AMP)


  • September 10, 2022

    September 10, 2022

    KING King Charles III was officially proclaimed
    monarch in a ceremony held at St. James’s Palace in London on Saturday, by the Accession Council, a body convened to confirm the new British
    monarchs throughout history.
    Also today, the Cabinet will have their first meeting with King Charles III,
    just days after PM Liz Truss formed a new government. Thousands have gathered in front of Buckingham Palace, the main
    residence of British monarchs in London, to pay tribute to Queen Elizabeth II,
    who passed away on Thursday, aged 96, at Balmoral
    Castle in Scotland. She will be brought to London, at Westminster Hall, and
    the public will have 4-5 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.


    ENERGY EU energy ministers voiced support for emergency
    measures in response to the energy crisis, and even mentioned price capping for
    natural gas imports. At Friday’s extraordinary meeting in Brussels, officials
    for the 27 Member States agreed that a unified approach was needed to address
    the rise in energy prices caused by Russia’s invasion in Ukraine. They gave the
    European Commission several days to come up with a solid and concrete plan, said
    the Czech industry minister Jozef Sikela, whose country holds the rotating
    presidency of the Union. Romania, who was represented by the energy minister,
    Virgil Popescu, pleaded for measures such as a price cap on Russian gas imports
    or an EU-wide platform for the joint procurement of natural gas. As for cutting
    down consumption, Bucharest said this should be voluntary, depending on
    national capacities and market developments.


    FLIGHTS The national airline TAROM provides today
    2 additional flights to Greece to repatriate the Romanian passengers abandoned
    by the low-cost operator Blue Air, which announced it lacked funding even for
    fuel. TAROM has so far organised 4 other special flights, to Israel, Greece,
    Cyprus and Spain. Several thousand Romanians have been stranded in
    international airports since Tuesday night, when Blue Air announced it was
    suspending flights. Although the authorities have unfrozen the accounts of the
    airline, which had excessive debts to the Romanian state, Blue Air said it
    would only resume flights on 10 October. The transport minister Sorin Grindeanu
    urged Blue Air customers to try to find other options to return, and pointed
    out TAROM could not replace all the flights that had been cancelled. In 2020, during
    the COVID pandemic, Blue Air took out a state-guaranteed loan of over EUR 60
    mln. This summer, it was fined EUR 2 mln by the Consumer Protection Authority, for
    cancelling over 11,000 flights in 2021 and 2022. Blue Air’s current estimated
    debts amount to EUR 230 mln.

    AUTOMOTIVE Romania’s
    automotive industry output went up nearly 25% in July and August, compared to
    the corresponding period of 2021. According to the Automotive Producers
    Association, more than 61,000 vehicles were assembled in the Ford plant in
    Craiova and Dacia-Renault plant in Mioveni. In the first 8 months of the year, over
    330,000 vehicles were produced, accounting for a 15.5% increase since 2021.


    UKRAINE Romania and 3
    other EU member states (Greece, Poland and Lithuania) call on the European
    Commission to grant them exemptions from the budget deficit rules, with respect
    to military expenditure, in order to be able to make the investments required
    after the Russian invasion in Ukraine. They want this expenditure excluded from
    the deficit calculation, so that the 3% of GDP ceiling required by the EU may
    be observed. The 4 countries argue that this would help them mitigate the risks
    facing the Union. Meanwhile, a report made public by the World Bank, the
    Ukrainian government and the European Commission indicates that Ukraine’s
    reconstruction after the Russian invasion may cost around USD 350 bln, with figures set to increase in the coming months,
    as the war continues. According to the report, reconstruction and revamping
    needs in the social, industrial and infrastructure fields are 1.5 times higher
    than Ukraine’s GDP in 2021. Russia’s aggression had caused direct damages of
    over USD 97 bln by 1 June, with the most affected areas including housing (40% of
    the total damages), transports (31%), trade and industry (10%). The regions of Donetsk,
    Luhansk and Kharkiv are the most heavily hit, followed by Kyiv, Chernihiv and
    Zaporizhzhia.


    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)

  • The authorities intervene in the Blue Air crisis

    The authorities intervene in the Blue Air crisis

    5 million lei, i.e. about 1 million Euros, have been allocated by the Romanian government from the reserve fund to cover the costs of repatriation by means of Tarom airplanes of the Romanian citizens who could not return to Romania following Tuesday’s decision by the Blue Air airlines to temporarily suspend its flights. The Prime Minister Nicolae Ciucă summoned the crisis cell to urgently solve the situation and set bringing home the Romanian citizens stranded on airports outside Romanias borders as their main priority.



    A first plane went to Tel Aviv, Israel, to bring back home almost 150 passengers. But many Romanians are still stuck all over the world and more than 2,000 have turned to the consular services to be helped by the state. The Blue Air operator justified its decision to suspend flights by claiming that its accounts were blocked for its pending debts by the Environmental Fund Administration and that it could no longer comply with its financial obligations.



    On Wednesday, the accounts were unblocked, and the authorities established that the debt of 28 million lei for the pollution certificates should be paid in installments in a years time. The company claims that it could pay this amount only under normal operating conditions. According to Blue Air, the suspension of flights for a week means the cancellation of more than 400 flights, for which more than 54,000 tickets were purchased. Blue Air’s debts are estimated at 230 million Euros, about half of the total revenues made in a normal year of operation. According to the company, the number of employees decreased by almost one third compared to the period before the pandemic.



    The fleet consists of 13 aircraft, compared to 32, three years ago, and the number of planes will drop to reach only five in the coming months. Blue Air was established in 2004, had 35 employees and one aircraft, and it subsequently developed at a fast pace. In recent years, however, problems have emerged after the main shareholder was detained by the anti-corruption prosecutors and later received a definitive prison sentence. Until June 2023 Blue Air has an arrangement with creditors in place, made two years ago, a mechanism to avoid insolvency, which allows a company to propose to its creditors a recovery and debt payment plan. Also in 2020, in the middle of the pandemic, the company also obtained a state-guaranteed loan worth over 60 million Euros.



    In the summer, Blue Air received a record fine of 2 million Euros from the National Authority for Consumer Protection – ANPC, after, between 2021 and 2022, it canceled more than 11 thousand flights, for which payments were made in the total amount of 66.5 million lei (approx. 13.7 million Euros). A lot of people who asked for a refund for the tickets paid for didn’t get anything back. Some of them went to court, where they obtained the sums they were due plus a symbolic interest for the period during which their money was blocked in the Blue Air accounts. (LS)

  • EU assistance for road transport operators

    EU assistance for road transport operators

    With fuel prices steadily rising recently, the European
    Commission has decided to provide support to Romanian road transport operators,
    which have repeatedly asked for assistance.


    The commission
    approved a EUR 60.7 million Romanian scheme to support companies active in road
    transport of goods and passengers. The
    Commission found that the Romanian scheme is necessary, appropriate and
    proportionate to remedy a serious disturbance in the economy of a Member State.


    The scheme was
    approved as part of the Temporary Crisis Framework for state aid, adopted by the
    institution in March this year, in line with the Treaty on the Functioning of
    the EU, which admits that the Union’s economy is facing major disruptions.


    According to
    an EC news release, under this aid scheme Romania will support its road
    transport sector, severely affected by the fuel prices increase caused by the
    current geopolitical crisis and the related sanctions. This is an important
    step to mitigate the economic impact of Putin’s war against Ukraine,ˮ said
    Margrethe Vestager, executive vice-president in charge of competition policy.


    The measure
    will be open to companies of all sizes active in road transport of goods and
    persons with a valid community license that are affected by the current crisis.
    The beneficiaries will be entitled to receive limited amounts of aid in the
    form of direct grants of maximum EUR 400,000 per company, paid by the end of
    this year.


    With a view
    to ensuring legal certainty, the Commission will assess before that date if the
    scheme needs to be extended. Moreover, during its period of application, the
    Commission will keep the content and scope of the Framework under review in the
    light of developments regarding the energy markets, other input markets and the
    general economic situation.


    The
    Temporary Crisis Framework includes a number of safeguards, such as proportional
    methodology, requiring a link between the amount of aid that can be granted to
    businesses and the scale of their economic activity and exposure to the
    economic effects of the crisis. Member States are invited to consider, in
    a non-discriminatory way, setting up requirements related to environmental
    protection or security of supply when granting aid for additional costs due to
    exceptionally high gas and electricity prices. (AMP)

  • June 23, 2022 UPDATE

    June 23, 2022 UPDATE

    FUEL
    PRICES The ruling coalition has
    reached an agreement regarding an offset mechanism for retail fuel prices.
    After Thursday’s government meeting, PM Nicolae Ciuca announced that for the next
    3 months, starting on the 1st of July, retail fuel prices will be 0.5 leu per
    litre lower. Half of the offset package, which amounts to EUR 400 million, will
    be covered from the state budget, and the balance by companies operating in
    this sector. The mechanism will be regulated under a bill to be passed by the
    government next week.


    CORRUPTION The Romanian agriculture minister Adrian Chesnoiu announced
    stepping down and withdrawing from the Social Democratic Party over a
    corruption investigation. He asked the Chamber of Deputies to lift his
    parliamentary immunity and claimed he had not committed any offence or act of
    corruption. The National Anti-Corruption Directorate had previously requested
    the Chamber of Deputies to lift Chesnoiu’s immunity, in order for him to be
    prosecuted for abuse of office. Judicial sources told AGERPRES news agency on
    Thursday that the investigation concerns the rigging of exams for filling
    public positions.


    BULGARIA In Bulgaria, the Liberal PM Kiril Petkov’s
    cabinet was dismissed through a no-confidence vote, which pushes the country
    into a new political crisis, after 3 rounds of elections held last year, AFP
    and Reuters report. The coalition, formed in December after controversial
    Boiko Borisov’s 10 years in power, broke up in early June over disagreements
    concerning public spending and the country’s stand on North Macedonia’s EU
    accession negotiations. President Rumen Radev will invite parliamentary parties
    to negotiations for forming a new government. If they fail, Bulgaria’s
    Parliament will be dismantled and new elections will be held.

    MOLDOVA The
    state of emergency introduced in the Republic of Moldova on 24th
    February, following Russia’s invasion in Ukraine, was extended on Thursday by
    another 45 days. The request was tabled to Parliament by PM Natalia Gavriliţa, with
    a majority of 59 MPs voting in favour. The Opposition was against the measure,
    accusing the government of incompetence, Radio Chişinău reports. According to
    Moldova’s PM, the state of emergency had to be extended given the persistent
    risks related to Moldova’s energy supplies, border security and the Ukrainian
    refugee crisis.


    MEDAL The Romanian David Popovici, 17, is the second swimmer in history
    to have become world champion in the 200m and 100m freestyle events of the same
    edition of a championship. The athlete has broken three world junior records in
    the World Aquatics Championships underway in Budapest. Romania has another
    representative in the competition, Robert Glinta, who will compete on Friday in
    the 50 meter backstroke race. Glinta ended the 100m race on the eighth
    position. Another two Romanian athletes, Angelica Muscalu and Constantin
    Popovici, will be competing in the dive event of the competition. (AMP)

  • Parliament discusses draft Offshore Act

    Parliament discusses draft Offshore Act

    This
    week the Parliament of Romania is set to discuss a new draft Offshore Act, the
    endorsement of which would allow for investments for offshore drilling for
    natural gas in the Black Sea and for the development of the country’s petrochemical
    industry.


    The
    bill has been approved already by the National Liberal Party, the Social
    Democratic Party and the Democratic Union of Ethnic Hungarians (UDMR), which
    make up a majority in Parliament at present and are determined to take
    responsibility for the bill.


    According
    to deputy PM and UDMR president Kelemen Hunor, in 2026-2027 at the soonest
    Romania will be able to extract natural gas from the Black Sea. He also
    explained that an economic crisis also brings along opportunities, forcing
    authorities to attract investors and to see what changes must be made in order for
    the country to switch from thermal power plants burning coal to ones running on
    gas.


    In
    turn, PM Nicolae Ciucă, recently elected president of the National Liberal
    Party, approves of the bill, arguing that it will help Romania reduce its
    reliance on Russian gas.


    The
    Social Democratic leader and Chamber of Deputies Speaker Marcel Ciolacu also
    backs the bill, and says there is political determination and legislative,
    governmental and executive coherence for it to be endorsed.


    The
    Offshore Act has been stuck in Parliament for over 4 years, with several drafts
    having reached various stages of the regulatory process. The new draft tabled
    to Parliament has been subject to discussions in the ruling coalition for
    several months now.


    One
    scenario is for the Romanian government to receive a minimum of 60% of the
    proceeds from the natural gas, with the balance to be kept by private companies.


    The
    current legislation stipulates a 30% to 70% progressive tax on the additional
    revenues made from the natural gas price rises, and companies are bound to sell
    50% of the output through the Bucharest Commodity Exchange.


    The
    Offshore Act is eagerly awaited by companies
    interested in drilling for gas in the Black Sea. Several gas producers,
    including OMV Petrom, an Austrian company in which the Romanian
    government also holds stock, spent billions of US dollars for a decade on preparations
    to tap into the estimated 200 billion cubic metres of gas on Romania’s
    continental shelf.


    Since Romania’s domestic demand stands at around 11
    billion cubic metres per year, this would turn the country into an exporter of
    natural gas.


    The
    US company ExxonMobil also announced they would invest in the venture, however
    in 2019 they decided to sell their stock to the Romanian state-owned company
    Romgaz.


    Over
    the years, the level of taxes levied on the extraction companies was one of the
    main barriers to developing the natural gas reserves in the Black Sea, making investors
    reluctant and getting projects suspended, to the benefit of natural gas imports
    from Russia. (A.M.P.)

  • March 25, 2022 UPDATE

    March 25, 2022 UPDATE

    LOAN The Romanian government on Friday
    approved a non-reimbursable 100 million euro loan for the neighboring Republic
    of Moldova. Romania thus wants to support the authorities in Chisinau in their
    efforts to accomplish a series of development projects and reforms. In the same
    session, the Executive decided to include 50% from the net profits of two
    national companies, Romgaz and Transelectrica, into the state budget.








    MEETING Romania’s
    President Klaus Iohannis had a bilateral meeting with the German Chancellor
    Olaf Scholz on Friday on the sidelines of the European Council meeting. The two
    talked about further strengthening bilateral relations, with a focus on
    economic and energy cooperation, as well as on Romania’s accession to the
    Schengen area. ‘We continue coordination in relation to the security situation
    and the ways to help the refugees from Ukraine, Klaus Iohannis wrote on
    Twitter. Romania’s President attended the European Council meeting on Thursday
    and Friday. On the first day of the meeting, he met with the Prime Minister of
    Bulgaria, Kiril Petkov. Talks with the Bulgarian official focused on
    coordinating the security situation in the region, helping Ukrainian refugees,
    deepening economic and energy cooperation and accelerating interconnectivity
    between the two countries. On Thursday, Klaus Iohannis also attended the
    Extraordinary NATO Summit.








    REFUGEES Roughly 3.7 million people have left
    Ukraine since the beginning of the Russian invasion on February 24th,
    says a UN report published on Friday, which also confirms that the exodus has
    slowed down of late. Over 10 million people, more than a quarter of Ukraine’s
    population have left their homes. UN estimates that around 6.5 million people have
    been relocated inside the country. Close to 90% of those who fled the country
    because of the conflict are women and children. According to the Romanian
    border police, nearly 10 thousand Ukrainian citizens entered Romania on
    Thursday. Over 537 thousand Ukrainian refugees have entered Romania since the
    beginning of the crisis.








    COVID-19 On Friday Romania reported 3,725 new Covid cases in 24
    hours as well as 41 related fatalities. 415 people are presently being treated
    in ICUs across Romania, the lowest number in the past 3 months. No anti-Covid
    restrictions have been applied in Romania in the past two weeks though the
    country’s Health Minister Alexandru Rafila has recommended the observance of
    individual protection measures.








    GROUP The United States and the European Union announced on Friday the setting up
    of a working group that will aim to reduce Europe’s dependence on Russia’s
    fossil energy resources due to Moscow’s war against Ukraine, AFP reports. The US
    is expected to supply the European Union with an additional 15 billion cubic
    meters of liquefied natural gas (LNG) this year as part of an initiative
    announced by US President Joe Biden and European Commission President Ursula
    von der Leyen. Both the NATO and G7 summits were held in the Belgian capital on
    Thursday, with the participation of US President Joe Biden. NATO has decided to
    provide additional assistance to Ukraine and continue to strengthen the eastern
    flank by sending four new multinational combat groups to Romania, Bulgaria,
    Hungary and Slovakia.






    UKRAINE The Ukrainian army’s counterattacks and the difficulties of the Russian
    forces in relation to their supply lines have allowed Ukraine to reoccupy
    cities and defensive positions up to 35 kilometers east of the capital Kyiv,
    the UK Ministry of Defense was quoted by EFE as saying on Friday. The Ukrainian
    forces are likely to continue trying to push the Russian army along the
    northwest axis between Kyiv and the Hostomel airfield, about 70 kilometers from
    the capital, according to British intelligence services which have data from
    the ground. In southern Ukraine, the Russian forces are still trying to bypass
    the city of Mikolaiv (Nikolaiev) in an effort to advance westward in the
    direction of Odessa, according to the British Ministry of Defense. However,
    their progress is slowed by logistical problems and Ukrainian resistance. The
    humanitarian situation in the besieged city of Mariupol continues to
    deteriorate, while Russia is blocking the delivery of humanitarian aid, the city
    mayor said. Most of the city is now in ruins. About 100,000 people remain
    stranded in Mariupol, and the large-scale evacuation efforts have failed. In
    another development, the peace talks between the two sides are making little
    progress in the key issues, Moscow’s Chief Negotiator Vladimir Medinski said on
    Friday. However he admitted that some headway was made in secondary issues,
    France Press Reports. Ukrainian Foreign Minister Dmitro Kuleba said on Friday
    that the negotiation process is very difficult and no consensus with Moscow is
    envisaged in the present stage of the negotiations.






    (bill)