Radio România Internațional

Tag: crisis

  • When will the economy recover?

    When will the economy recover?


    The coronavirus pandemic has generated a lot of heated
    discussions worldwide about how to solve the current health crisis while also
    addressing the economic crisis. Romania, where some one million people have
    seen their work contracts suspended, is no stranger to such debates. The government
    has already taken some measures to support the business environment and, by
    extension, employees, and is still looking for solutions to diminish the impact
    of the pandemic on the economy. According to initial estimates, the Romanian
    economy shrank by 30-40% during the first month of the state of emergency
    instated in mid-March.

    The economy minister Virgil Popescu, who made an x-ray
    of the situation in an interview on Radio Romania, explains why in his opinion
    this drop does not reflect the real state of affairs:




    When we come out of this state of emergency and
    have clear confirmation that the pandemic is on a falling trend, we will be
    able to see exactly how the economy starts to recover. As I’ve said before, the
    car making industry is very slowly beginning to recover, and the car parts industry
    began to pick up again on 13 April. The companies in the textile sector have
    moved quickly and have begun to produce essential materials such as face masks,
    coveralls, coats and shoe covers for medical use.




    The economy minister says he is expecting other
    industries to resume activity and for some to even readapt very quickly. Virgil
    Popescu:




    I think the energy industry will recover very
    quickly. The national energy grid has worked very well, has been very stable,
    there were no problems. However, there’s been a visible drop in consumption,
    and a drop in consumption obviously leads to a drop in revenues, in profits. I’ve
    asked energy companies to come up with a very clear plan of investments for the
    next five years, with very clear deadlines. Let’s not forget that Romania is engaged
    in the Green Deal European project and there’s a lot of investment to be made,
    so I think some very extensive investments will be launched in this area. In
    the defence industry, following talks I’ve been having with the ministry of
    defence for the last two weeks, we’ve decided to kick off the strategic projects
    we began before this crisis, projects that must be continued. I’m also
    following closely the relocation of certain industries away from Asia, China in
    particular, and I won’t rest until I convince some companies to reinvest and
    start new production lines here in Romania.




    Another sensitive area is the entire hospitality
    industry, which has been very badly hit by the crisis. Minister Virgil Popescu is
    cautious about the restart of the Romanian tourist sector very soon, but says a
    package of measures is being considered to help hotel owners reduce their
    maintenance costs. The state is also looking at ways to help restaurants, cafés
    and bars to make the necessary adjustments for when they reopen in order to keep
    their customers safe. (CM)



  • The social implications of the crisis

    The social implications of the crisis


    It’s been about four months
    since the novel coronavirus was first reported in Wuhan, China, before spreading
    rapidly around the globe, disrupting the lives of people everywhere. The
    pandemic is bound to end at some point, but its effects will be felt deeply.




    A study conducted by the
    Research Institute for Quality of Life of the Romanian Academy warns that
    Romania is faced with two crises at the same time: a health crisis and an economic
    crisis. The institute’s paper, entitled The pandemic and living standards. Social
    protection policies, posits that unlike the health crisis, which has immediate
    effects, the economic crisis has social implications that are already visible
    and will continue to be so for some time. Living standards will suffer
    especially once the health crisis is over or begins to pass, says the research paper,
    emphasising that judging by other economic and social crises faced by Romania in
    the past, it will take at least another five years for the people’s purchasing
    power to recover.




    The study notes that the
    population’s incomes are already lower as a result of the pandemic and that the
    employees on furlough will be worst hit, with more than one million employment
    contracts having already been suspended. People working in informal employment,
    subsistence farmers, whose number is unknown, as well as the persons who have
    recently returned from abroad and who do not have an income are also expected
    to be hit hard by the crisis.




    Sociologists therefore
    propose an increase in unemployment benefits to around 200 euros for the next three
    to six months, which amounts to 75% of the net minimum wage. In the area of
    social assistance, researchers propose a guaranteed minimum income of 200 euros
    for the next three months, an increase in state funding for the emergency aid budgets
    of the local administration in the next three months, the amendment of the social
    assistance law and drafting the sectoral strategies in the social sector for
    the 2021-2027 period based on the new situation.

    The research paper also
    notes that the International Monetary Fund expects Romania’s public deficit to
    reach 8.9% of GDP, the equivalent of some 19 billion euros, and for GDP to see
    a 5% drop in real terms. To help with the public deficit, the paper proposes starting
    urgent talks with the International Monetary Fund and levying a solidarity tax.
    It also recommends a number of policies relating to pensions and salaries, such
    as cancelling or delaying the implementation of the pensions law adopted in
    2019, indexing pensions based on the inflation rate, raising salaries only so
    as to compensate for the inflation rate and the reintroduction of a nationwide unified
    salary scheme in the local administration. (CM)



  • April 27, 2020

    April 27, 2020

    Covid-19 Romania — The Romanian President Klaus Iohannis on Monday called a new meeting to deal with measures aimed at managing the coronavirus pandemic. Attending are the PM Ludovic Orban, the health, interior and education ministers as well as other officials. The authorities are preparing to re-start the economy, mainly through investments. The PM said the government could grant incentives to private companies that make investments during this period of crisis. 60 days after the first case of Covid-19 was registered in Romania, latest reports show that 11,300 people have tested positive for Covid-19 and 631 have died. The latest data provided by Strategic Communication Group show that over 3 thousand people have recovered from the infection. In the Diaspora, more than 1,500 Romanian citizens have been infected mostly in Italy and Spain and 75 have died.



    Covid-19 world — All over the world, almost 3 million people are infected with the new coronavirus, according to the US University Johns Hopkins. Most cases have been reported in the US, which is followed by countries from Europe: Spain, Italy, France, Germania and Great Britain. Equally affected by the pandemic are Turkey, Iran, China and Russia. The death toll has exceeded 206 thousand, with 54 thousand dead only in the US. Despite the situation, several states are getting ready to relax restrictions: in Italy economic activity is going to be partly resumed while preserving protection measures in public. People movement remains restricted, schools will open only in autumn and Italian churches will stay closed. France is preparing regional relaxation strategies starting with May 11. A system will be implemented by means of mobile phones, to warn people against getting in contact with an infected person.



    Romanian Academy – A study conducted by sociologists with the Life Quality Research Institute within the Romanian Academy shows that Romania is faced with two crises in the context of the COVID-19 pandemic: a medical and economic crisis respectively, and that the living standards will be affected mainly after the medical crisis ends. The report shows that people will have the same purchasing power that they had before the crisis only in 5 years’ time. Researchers recommend the authorities to abrogate or prorogate the pension law adopted in 2019, among others, to index-link the pension point with the inflation rate, to raise salaries only to compensate for the inflation rate and to reintroduce a unitary national salary grid for the local administration



    Agriculture — All autumn crops, especially those in the north and south of Romania, have been affected by the drought, the agriculture minister Adrian Oros has announced. According to data provided by the line ministry, 3 million hectares of the crops sown in autumn have already been affected. At present, only 10% of the farming land can be irrigated. The agriculture minister Adrian Oros promised that farmers will receive damages to cover for the losses caused by the drought.



    TAROM – The Romanian state-owned airline TAROM has announced it will resume flights as of May 2. The first destination will be Amsterdam and in the next days flights will be operated to such destinations as Athens, Paris and Frankfurt. The Romanian low-cost company Blue Air has also announced resuming flight operation. They reintroduced in the booking system flights from Romania to several cities in Romania and Europe that will be operated as of mid May. The Romanian government approved during Thursday’s meeting granting aid funds to help the two Romanian companies. They had previously asked for 130 million Euros worth of aid to be able to overcome the coronavirus crisis. (tr. L. Simion)

  • Plans to restart the EU economy

    Plans to restart the EU economy

    The world is currently facing one of the most severe healthcare crises of the past decades, generated by the feared SARS Cov-2 virus. This has also been a major shock for the European and global economy.



    Travel restrictions, border closing, temporary suspension of businesses, drops in sales, physical distancing measures taken to contain the spread of the virus, have had negative effects on many economic sectors.



    In order to counter the chain effect of the pandemic, European leaders have called for solidarity in taking measures to mitigate the impact of the corona crisis.



    And this impact will very likely be substantial. According to the International Monetary Fund, the EU is expected to see a record drop in its GDP, by as much as 7.1% this year, while the crisis looming ahead of the 19 Eurozone countries threatens to be the most severe in the brief history of the single currency, launched in 1999.



    At a summit on Thursday, the 27 EU leaders asked the Commission to put together a plan to exit the crisis, including a draft budget for 2021-2027. This should also cover a fund for revitalizing the European economy following the containment measures. The plan should be presented next month.



    Although the exact figures have not been decided, officials talk about a plan ranging between 1 and 1.5 trillion euro.



    The French president Emmanuel Macron has admitted that a consensus is yet to be reached by member states with respect to budget transfers to the regions and sectors the worst hit by the pandemic. He pleaded for a comprehensive recovery plan, including not only loans, but also such financial transfers, and warned that “If we let part of Europe fall, all of Europe will fall with it.



    Deeply affected by the pandemic, southern European countries like Italy and Spain once again called for a new joint debt, which would enable them to benefit from the low interest rates offered to the northern member states.



    The German Chancellor Angela Merkel promised a temporary increase of her countrys contributions to the EU budget.



    The Romanian president, Klaus Iohannis, backs the set up of an economic recovery fund, benefitting all member states, as an additional instrument to the support measures already taken at European level. The fund should be used for the needs in specific sectors, such as medical and economic, which have been hit by this crisis.



    On the other hand, Klaus Iohannis announced Romania will remain a firm supporter of the cohesion policy and the common agricultural policy, which, as he emphasized, have not lost their relevance in the current, complicated context.


    (translated by: Ana-Maria Popescu)

  • April 18, 2020 UPDATE

    April 18, 2020 UPDATE

    COVID-19 The number of deaths from coronavirus infections reported in Romania exceeds 420, out of a total of 8,400 confirmed cases. Over 1,000 healthcare personnel tested positive for the Covid-19 so far, most of them in Suceava (north-east) and in Bucharest. Around 1,700 people recovered and have been discharged from hospitals.PM Ludovic Orban said that according to estimates the pandemic will peak between May 1st and 5th in Romania, and once again urged citizens not to leave their homes except for emergencies.




    MEASURES The Resurrection of Christ is a celebration of hope in a season of rebirth, says the President of Romania in his Easter message, released on Saturday. He emphasises that unfortunately, this year Easter finds us in a situation that forces us to find the blessing and light of Easter within ourselves and our homes. Together, with devotion, love and faith, we will overcome this difficult challenge that mankind is facing, Klaus Iohannis adds. He urges Romanians to embrace the sacrifice of expressing their love to their beloved ones by complying with social distancing rules. Previously, Iohannis had called on citizens to avoid visits on Easter. He emphasised that Romania has not yet seen a peak of this epidemic, and that the only reasonable thing to do now is to stay away from our dear ones. The President also urged authorities to remain on alert. In a video message, PM Ludovic Orban in turn voiced his hope that the Easter symbols of love and sacrifice will give us the strength to be reborn together. Over 36,000 police, gendarme, fire-fighters, border police and other Interior Ministry and Defence Ministry staff are working during Easter to ensure compliance with the military orders, to prevent and curb crime and to step in in case of emergencies.




    EASTER The Orthodox majority in Romania, as well as the Greek Catholic Christians Sunday celebrate Easter or the Resurrection of Christ. This year believers will not be able to attend the Easter Mass, because of the measures to contain the coronavirus pandemic, but they will be able to watch the midnight service on the media. The Easter light was brought from Jerusalem in a ceremony held in special conditions, without the thousands of pilgrims that used to attend this service in the past. Patriarch Daniel of the Romanian Orthodox Church wishes all Romanians, on this occasion, health and pace, joy and hope. “Our faith in the Resurrection helps us not to lose hope in the face of adversity, but to ask for Christs help with even more fervour, the Patriarch said in his Easter homily.




    AID The Romanian Foreign Ministry welcomed on Saturday the announcement made by the US on April 16 regarding an 800,000 USD support package for Romania in the fight against the coronavirus pandemic. According to the Foreign Ministry, the decision is further proof of the strength of the bilateral Strategic Partnership, at a time of global crisis. According to the same source, with support from the US Romania received a RT-PCR testing unit provided by the International Atomic Energy Agency, and has used NATO aircraft to bring emergency medical supplies into the country.




    FINANCIAL Fitch financial rating agency revised Romanias rating outlook from stable to negative, against the background of the COVID-19 crisis and its impact on public finances in the coming period, the Ministry for Public Finances announced. The agency said the revision was necessary, given the poor fiscal management in previous years. The Finance Minister Florin Cîţu said in the forthcoming period the ministry will focus on implementing tax and budget measures aimed at mitigating the negative effects of the pandemic and on measures to revitalise the Romanian economy. The main elements able to help improve the country rating are stabilising the share of public debt in the GDP in the medium run, and sustainable improvement of the foreign debt level.




    PANDEMIC The official number of novel coronavirus infections in the world is over 2.2 million, with the death toll standing at nearly 155,000. The largest number of victims is reported in the US and Europe. The WHO estimated that, just like China, which announced another 1,290 deaths on Friday in Wuhan, many countries will have to update their death figures for the Covid-19 pandemic. According to the WHO, an accurate reporting of the number of cases and deaths is rather complicated given a number of factors, such as the isolation of patients who die at home alone and difficult bureaucratic procedures.


    (translated by: Ana-Maria Popescu)

  • April 16, 2020

    April 16, 2020

    COVID-19 The Parliament of Romania convenes today in an online meeting to discuss and vote on the presidential order extending the state of emergency by another 30 days. MPs yesterday tabled a number of recommendations and suggestions to be forwarded to the President and the Government. Among other things, they request the Government to present a weekly report on the measures to contain the COVID-19 epidemic and the arguments for taking these measures. They also want the Government to come up with a full report on all measures taken and their consequences, within 30 days after the end of the state of emergency, and the Court of Accounts to conduct verifications into the spending of public resources within 60 days since the end of the state of emergency. The death toll of the coronavirus epidemic in Romania has reached 387, out of a total of 7,700 cases. According to the authorities, 1357 people have so far recovered. As for the Romanians living abroad, 718 have so far tested positive for the COVID-19, most of them in Italy. As many as 55 Romanian nationals living abroad died since the start of the pandemic.



    EASTER An agreement between the Romanian Interior Ministry and the Orthodox Church, which allowed believers to go out and had police distributing lit candles on Easter night, was altered further to heavy criticism from the Presidency and the healthcare community. People will not be allowed to attend religious services even outside churches, as instructed by the military orders issued so far. Easter bread and light will be delivered, at the request of believers, by priests and church volunteers. President Klaus Iohannis asked for strict compliance with the current military orders and with social distancing measures. He warned that otherwise the situation may worsen significantly after Easter. Orthodox and Greek Catholic Christians mark Maundy Thursday today, commemorating the Last Supper and the events taking place before Christs arrest and crucifixion. This year the measures designed to contain the COVID-19 pandemic do not allow believers to attend the Easter mass, but they can watch live broadcasts of religious services on the TV, internet or listen to them on the radio.



    NATO The Romanian Defence Minister, Nicolae Ciucă, took part on Wednesday in a meeting of the North-Atlantic Council defence ministers, convened by the NATO secretary general Jens Stoltenberg. The meeting, held by conference call, focused on the implications of the COVID-19 for the Alliance. Minister Ciucă presented the efforts made to contain the virus in Romania, with support granted by the Army to the national authorities. Nicolae Ciucă also reiterated Romanias commitment to a continuing participation in NATOs operations, missions and activities, where Allied troops are facing not only specific threats in theatres of operations, but also ones related to the spread of the coronavirus, and in this context he requested close monitoring of the situation by the Alliance. The NATO defence ministers decided to put together a pandemic response plan, based on the lessons derived from the experience and best practices of the Allied states and international organisations in the context of the current crisis.



    PANDEMIC The European Parliament convenes in a special session today to discuss a joint response of EU member states to the SARS-CoV-2 pandemic, dpa reports. MEPs are to endorse a resolution requesting better protection of EU citizens in the current crisis, stronger support for the healthcare systems of member states and a unified strategy for lifting containment measures. Yesterday, the European Commission made public a roadmap for member states, recommending the coordinated and phased lifting of restrictions, extensive testing of citizens and the replacement of the state of emergency with targeted interventions. The UN secretary general, Antonio Guterres, estimated on Wednesday that a safe and effective vaccine against the coronavirus may be the only instrument allowing for a return to a sense of normalcy, and voiced hope that one will be ready by the end of the year. Meanwhile, the number of COVID-19 cases around the world has exceeded 2 million, with the death toll standing at 136,000. In the US, the new epicentre of the pandemic, 637,000 cases and over 30,000 deaths have been reported, the largest figures in the world. In Europe, the worst hit countries remain Italy, Spain, France and the UK. On the other hand, the IMF warns that for the first time in 60 years Asia will not be able to report economic growth.


    (translated by: Ana-Maria Popescu)

  • April 15, 2020 UPDATE

    April 15, 2020 UPDATE

    TALKS Romania’s president Klaus Iohannis had talks on Wednesday with Prime Minister Ludovic Orban and members of the Bucharest government over the measures to be imposed after the state of emergency was extended for another month. The president called on the Romanians to stay at home, because otherwise the number of fatalities will increase after Easter. Another 5 people have been killed by the Covid-19 in Romania, bringing the death toll to 362. The total number of people infected has exceeded 7.200 out of which 1.217 have recovered and were released from hospitals. 245 patients are in intensive care units at present. 709 Romanians are infected by the coronavirus abroad, 420 of them in Italy. 52 Romanian nationals from the diaspora have died since the outbreak.



    MEASURES Romanias economy will by shrink nearly 2% this year, the finance minister Florin Cîţu announced. He added that a substantial set of measures is being prepared, aimed at revitalizing the economy at the end of the state of emergency. He explained that the measures to support the economy taken so far account for 3% of the GDP and that he expected the budget deficit to reach 6.7% after this years first budget adjustment. The finance minister said on Wednesday that funding for investments will not be cut, in any field, but that on the contrary, the budget of the Development Ministry is being increased. Investments continue, construction sites are open in Romania. the only way to recover from this is by investing, Florin Cîţu emphasised. He also promised that there will be no tax raises this year, and that cash will be injected in the system, as it was the case so far.




    POLL The level of concern over the present medical situation tends to intensify both in countries with little restrictions, such as Poland or the Netherlands, and in countries with severe restrictions such as Italy, Spain or France – a poll released on Wednesday by Kantar shows. According to the survey, two rather optimistic countries like Britain and the United States are seeing increased public concern only two weeks after the previous poll was published. The concern of Germans over the present medical situation remains moderate, as before. Romania has 5% more people concerned since the previous report, with the total figure standing at a rather high 80%. Most of people’s concerns in this country have to do with financial uncertainties. The poll was conducted on more than 45,000 people in 50 countries, of whom 1,800 in Romania.



    OIL Tens of ships carrying petrol and airplane fuel are stuck near major storage facilities in Europe, unable to unload as many onshore tank farms are maxing out as a result of demand plummeting over the coronavirus crisis. “There is excessive supply of oil products in the region, a trader told Reuters. Oil fields and refineries across the world have reduced their operations, and some even shut down as the demand for fuel dived. According to the International Energy Agency, in April the global demand for oil is expected to drop to around 70.4 million barrels a day, a level last reported in 1995.



    PANDEMIC The restrictions imposed in the EU to contain the spread of the coronavirus are necessary, but they come at a huge economic cost and cannot last forever, the European Commission says in a roadmap for the gradual lifting of isolation measures, made public on Wednesday. Prior to lifting these restrictions, epidemiologic criteria must be met, and the capacity of healthcare systems to receive patients and test citizens must be ensured, Brussels adds. “The Commissions immediate priority is fighting the virus and mitigating the socio-economic consequences of the pandemic. At the same time, we must start looking ahead so that Member States can gradually lift their containment measures, with a view to entering the recovery phase and revitalising our societies and economy, the Commission explained. The total number of cases exceeds 2 million across the globe, with the death toll standing at over 128,000. In the US, the new centre of the pandemic, more than 26,000 deaths have been reported so far. In Europe, the most affected countries remain Spain, Italy, France and the UK. Meanwhile, the US president Donald Trump suspended his countrys contribution to the World Health Organisation, on grounds of “poor management of the pandemic. In response, the UN secretary general, Antonio Guterres, says now is not the time to cut the resources and operations of the WHO or any other humanitarian organization in fighting the virus.


    (translated by: Ana-Maria Popescu)

  • Support for the economic sector

    Support for the economic sector

    The Orban Cabinet Thursday passed an emergency order to help the companies experiencing difficulties these days. The order introduces two aid schemes for small and medium enterprises, aimed at securing working and investment capital. The government makes over 3 billion euros available to SMEs.



    A methodology has also been put together for the implementation of a previous emergency order, postponing loan repayments in the context of the economic crisis generated by the COVID-19 pandemic. The finance minister Florin Cîțu says Romania offers the best conditions of all the countries that have resorted to this measure. According to him, the impact of this decision on the Gross Domestic Product is estimated to be around 3%.



    In turn, PM Ludovic Orban spoke about the impact of the coronavirus crisis on the economy, which has already reached 30%, meaning that 800,000 to 1 million people will have been idled. The PM also said he was not a supporter of austerity measures and of price caps:



    Ludovic Orban: “Over 30% of the Romanian economy is affected, and the risk of decreased economic growth, lower revenues to the state budget and social security budget, including the unemployment fund, is very clear. Austerity measures have not only failed to provide a solution to the latest crisis, but on the contrary, they have probably deepened the crisis. We need to preserve peoples spending power; we need a demand that companies should work to meet.



    According to the president of the Fiscal Council, Daniel Dăianu, the measures to be taken in the context of the COVID-19 pandemic should include, among other things, the postponement of non-urgent expenditure, full absorption of EU funds, and the use of long-term loans from international financial institutions, to support investments and economic operations. Daniel Dăianu explains in an op-ed that widening the budget deficit must be strictly tied to the measures to fight the COVID-19, to unemployment and to supporting certain economic operations.



    He adds that the National Bank may help in smoothing domestic financial circuits and may relax monetary conditions, by means of its monetary policy interest rate and of its management of cash flows. What the central bank cannot do, however, is to inject cash into the economy. And after the pandemic is over, Dăianu explains, we must put together a strategy to strengthen the economy, to ensure reliable domestic roots in core sectors like industry and agriculture, “which together should form a robust public budget, with appropriate fiscal revenues, able to support essential public assets and allow for suitable funding for public healthcare and education.


    (translated by: Ana-Maria Popescu)

  • March 19, 2020 UPDATE

    March 19, 2020 UPDATE

    COVID-19 Romania 17 new COVID-19 cases were confirmed in Romania on Thursday, taking the total number to 277. The Strategic Communication Group, which has limited official COVID-19 updates to only one per day, also announced that 25 patients have recovered and were discharged from hospital—16 in Timişoara, 8 in Bucharest and 1 in Iaşi. Another 3,822 people are in quarantine facilities and tested for the disease, while over 33,700 are self-isolating at home under medical supervision. Meanwhile, president Klaus Iohannis welcomed Parliaments endorsing the presidential decree that declares a 30-day state of emergency in Romania. He said the vote proves the responsibility and solidarity of the entire political community. In turn, PM Ludovic Orban announced harsher penalties for those who thwart efforts to combat the epidemic and for false representations regarding the coronavirus disease. The government has also decided to increase state guarantees by around one billion euros, in order to help small and medium enterprises take out loans, and to cover 75% of the benefits paid by employers to the staff on idle time.



    EASTER President Klaus Iohannis Thursday instructed prefects and local administration officials to urge the Romanians living abroad not to come home for the Easter holidays this year, because under the current regulations as soon as they enter the country they will have to be quarantined or self-isolating. There is basically no more traveling in the EU, he added, and emphasised, “we love our fellow Romanians who live abroad, we would like to see them, to be with them, but this is not possible this Easter. It is sad, but we have to be honest about this, so as not to create expectations that cannot be fulfilled. The most important Christian holiday, the Easter or the Resurrection of Christ, is celebrated this year on April 12 by Catholics and on April 19 by Orthodox believers, which make up a majority in Romania.



    FAKE NEWS The Romanian interior minister Marcel Vela has forwarded to the National Communication Administration and Regulation Authority (ANCOM) a proposal made by the Strategic Communication Group to shut down a website called stiridemoment.ro. The proposal is based on Art. 54 of the presidential decree introducing the state of emergency in Romania. According to the authorities, the website selected and posted statements and information out of context, under alarmist headlines designed to generate panic among readers. The headlines were either completely false, or unrelated to official decisions. The website had no identity and no persons of contact could be identified. The police started an investigation into false information offences. On Wednesday, the EU spokesman on foreign policy Peter Stano said that, “Whoever is spreading the disinformation is essentially playing with peoples lives, and warned that pro-Russian media are behind some disinformation cases. Moscow dismissed the accusation.



    POLL Half of the employees in Romania fear the COVID-19 will be followed by an economic crisis, and a quarter of all employees do not have enough savings to cover a months expenses if they are made redundant. These are the main findings of an opinion poll conducted by the online recruitment platform BestJobs. Little over 10% of the interviewees fear they may lose their jobs in the forthcoming period. According to the poll, 60% of the employers say their businesses have not been affected so far by the epidemic. As far as the employers are concerned, the biggest effect is that employees are becoming afraid of direct contact with their clients. Business owners have also noticed that some suppliers fail to deliver orders and that the prices for certain products have been substantially increased. The poll was conducted between March 9 and 16.



    RAILWAY The passenger division of the main railway operator in Romania, CFR, is temporarily suspending international trains to and from Hungary and Austria. The decision is designed to help contain the Covid-19 epidemic, and follows Hungarys decision to close its borders for foreign citizens. On Tuesday, CFR made a similar decision regarding passenger trains to and from neighbouring Bulgaria and the Republic of Moldova. Travellers may claim full refunds.



    COVID-19 world The president of the European Parliament, David
    Sassoli, announced a special meeting of the EU legislative body on March 26,
    focusing on EU-wide measures against the coronavirus pandemic. The decision was
    made in a conference call with the leaders of the EP floor groups, and will be
    the first to use online voting. Around 220,000 cases of COVID-19 and 9,000 deaths have been confirmed worldwide so far. Whereas China is now reporting zero local infections and new cases only involving citizens who came from abroad, in Europe the situation is further worsening. In Italy, the number of victims is nearing the total reported in Chinas Hubei region, where the virus first appeared. The EU has closed its borders for foreign citizens and has banned non-essential circulation in the Schengen area, to slow down the pandemic. In this context, the European Central Bank announced an emergency aid package amounting to 750 billion euros, intended to cover public and private debt and contain the economic aftershocks of the coronavirus pandemic. According to estimates, the Eurozones GDP may fall by 5% this year.


    (translated by: Ana-Maria Popescu)

  • March 18, 2020 UPDATE

    March 18, 2020 UPDATE

    Covid-19 Romania 260 cases of coronavirus infection have been confirmed in Romania by Wednesday. So far, 19 people have recovered. At national level, some 3,400 people are in quarantine facilities and are being tested. Another 23,679 people are self-isolating at home and under medical monitoring. New restrictions took effect in Romania on Wednesday, in order to curb the spread of the coronavirus. All restaurants, coffee shops, bars and other types of public facilities were closed for 30 days, in order to facilitate social distancing. Only drive-in, room-service and home delivery services will be allowed. All indoor activities, including religious and sporting events, are suspended, and so are services provided in beauty shops and spa facilities. The National Bank announced full support for the efforts of the banking system to assist individual and corporate clients affected by the crisis. Measures in this respect include facilities regarding ongoing loan payments and accessing new financing lines, and in case of growing demand, making sure that banks have uninterrupted cash flow for all operations, including ATM withdrawals, the central bank also said.




    Covid-19 world The head of the World Health Organisation, Tedros Adhanom Ghebreyesus, Wednesday called the novel coronavirus an “enemy of mankind, as the virus has killed more than 8,000 people worldwide. The EU has closed its borders for non-EU citizens and has banned non-essential circulation in the Shengen area, in order to curb the spread of the pandemic, while several member countries have locked down cities or regions. The most affected country in Europe, Italy, where nearly 3,000 people died so far, is no longer capable of dealing with the situation in hospitals. The Republic of Moldova Wednesday reported the first death caused by COVID-19. Meanwhile, several countries have announced huge financial aid plans to fight the pandemic.




    Government The Romanian Government convened today for the first time since the president declared a state of national emergency in Romania on Monday. It was the first session of the Liberal Cabinet headed by Ludovic Orban. The meeting was held via conference call and focused on economic decisions, given the effects of the Covid-19 pandemic. The Government announced support for companies’ cashflows and for the employees who have been idled. Also, the deadline for local tax payments will be extended, and capacities for the production of sanitary materials and disinfectants will be enhanced. The financial impact of these measures is estimated at some 2% of the country’s GDP for the next three months, the Finance Minister Florin Citu has stated.




    Simulation Romanian MPs Wednesday organised an online voting simulation. It was a test for Thursday’s joint session, which will be held online for the first time. The participants will vote the decree under which a state of national emergency has been declared in Romania, and senators and deputies are to vote online because of the COVID-19 pandemic. Under the Constitution, Parliament can only endorse or reject the presidential decree. The debates will be held via conference call.




    Corridor Budapest will allow Romanian citizens to transit Hungary to get to Romania every night between 9pm and 5am, on designated routes set by the Hungarian authorities. The agreement was reached on Wednesday by Romanian foreign minister Bogdan Aurescu during a telephone call with his Hungarian counterpart Péter Szijjártó, after large numbers of Romanians got stranded on Austrias border with Hungary. Thousands of Romanian, Bulgarian and other nationals were unable to transit Hungary, which closed its borders for foreigners. The Romanian foreign ministry also announced that 78 Romanian citizens were repatriated from Jordan on Wednesday.




    EUROVISION The 2020 edition of the Eurovision Song Contest, scheduled to take place in May in Rotterdam, the Netherlands, was cancelled over the coronavirus pandemic, the organisers announced on Wednesday. Romania was supposed to take part in the competition alongside 40 other countries. Roxen had been chosen to represent Romania with a piece called “Alcohol You. The Eurovision Song Contest is an event watched every year by millions on TV channels around the world.


    (translated by: Ana-Maria Popescu)

  • March 17, 2020

    March 17, 2020

    COVID-19 Romania President Klaus Iohannis is today chairing a meeting held by conference call with PM Ludovic Orban and the ministers involved in the management of the COVID-19 outbreak. Also today, Klaus Iohannis is taking part in a European Council conference call focusing on measures to manage the crisis. The head of the Romanian state Monday signed an order introducing a 30-day state of emergency in Romania. The document is to be voted on in Parliament on Thursday. According to official data, the number of confirmed COVID-19 cases in Romania has reached 184, with 16 people already recovered. Around 3,300 people are in quarantine facilities and nearly 16,600 are self-isolating at home under medical supervision. Scores of criminal investigations have been initiated with respect to thwarting efforts to combat diseases. All asymptomatic persons entering Romania from countries with more than 500 infections, such as Spain, France, or Germany, will enter mandatory self-isolation at home for a period of 14 days. The measure applies to people entering by air and road. Safety measures have been strengthened, with all indoor cultural, scientific, artistic, religious, sports and entertainment activities involving more than 50 people now banned. Parliament has amended its regulations to the effect that in exceptional situations meetings and votes may be held by electronic means.



    COVID-19 World The number of deaths caused around the world by the new coronavirus has exceeded 7000, after Italy Monday announced 349 deaths in 24 hours. A total of over 175,000 cases have been reported so far in 145 countries. Italy, with 2,158 deaths out of 28,000 cases, is the second-worst hit country in the world, after China, which reported 3,213 deaths. France ordered a 15-day lockdown as of today. With over 9,000 cases, Spain has closed borders for non-residents and foreign workers. Hungary, too, has closed borders for foreigners. The European Commission may decide today to close the EU external borders and is considering a ban on non-essential travel. Several European countries have made the unilateral decision to close their borders, fully or partially. In many European countries, schools are closed down, public gatherings have been cancelled and business operations suspended. In the US, president Donald Trump announced strict quarantine measures and believes the epidemic may be followed by a recession. The World Health Organisation director Tedros Adhanom Ghebreyesus, said governments must do more to fight the coronavirus pandemic. He also emphasised the importance of large-scale testing and screening.



    STOCK MARKET The Bucharest Stock Exchange opened on the rise for all trading indices on Tuesday. Both the BET, which covers the 16 most traded companies, and the BET-Plus, which reflects the stocks of the 37 most traded companies in the Bucharest Stock Exchange, had gone up nearly 1.8%. European stock markets also recovered slightly on Tuesday, after plummeting to a 2012 low on Monday over coronavirus concerns and fears of global recession. Also on Monday, the Wall Street saw the worst decline since the 1987 Black Monday, after president Donald Trump said the coronavirus pandemic may last for months and the American economy might head towards recession. Investors are worried that the authorities will not be able to take efficient measures to address the economic damage caused by the outbreak. Meanwhile, the Philippines stock market Tuesday shut down indefinitely, the first move of this kind in the world caused by the COVID-19 pandemic.



    RAILWAY The Romanian Railway Corporation suspended, as of today, some international passenger services, including to and from neighbouring Bulgaria, the Republic of Moldova and Hungary, because of the coronavirus pandemic. Passenger trains to Ruse, in Bulgaria, to Chisinau, in Moldova, and local cross-border railway transport on the Hungarian border have been suspended. Passengers may request fill refunds.



    2020 OLYMPICS The president of the International Olympic Committee Thomas Bach is today reviewing the situation of this summers scheduled Olympic Games, due to take place in Tokyo, Japan. In a conference call meeting with the chiefs of international federations, he may announce the postponement of the Games, over the coronavirus pandemic. Also today UEFA is to decide whether to postpone the 2020 European Championship, scheduled to take place in Romania and another 11 countries between June 12 and July 12. Bucharest is supposed to host 4 matches in the final tournament. Romania failed to qualify into the Euro 2020 preliminaries, but may still gain access to the competition if they win the Nations League playoffs scheduled this month. According to the initial calendar, on March 26 Romania should play against Iceland away from home, and if it wins it should play against the winner of the match pitting Hungary against Bulgaria, on March 31.


    (translated by: Ana-Maria Popescu)

  • January 10, 2020

    January 10, 2020

    EU The Romanian foreign minister Bogdan Aurescu is taking part in Brussels today in a special meeting of the Foreign Affairs Council, convened by the vice-president of the European Commission Josep Borrell, the EU high representative for foreign affairs and security policy in the wake of the recent developments in the Middle East. According to a news release issued by the Romanian Foreign Ministry, European officials will exchange opinions and assessments on the situation in Iraq and will identify ways for the EU to contribute to easing the tensions in the region. The developments in Libya will also be tackled.




    ELECTIONS In Bucharest, PM Ludovic Orban announced after todays talks with President Klaus Iohannis, that together they decided to initiate procedures for early parliamentary elections. The PM added that a work group has been put together to handle negotiations with the parliamentary political parties for support in this initiative. Ludovic Orban said that the Social Democratic Party, which has a relative majority in Parliament, hinders the Governments initiatives and that the only solution is to have snap parliamentary elections as close as possible to the local elections scheduled this May. Meanwhile, the Social Democrats are considering a motion of no-confidence.




    UN Romanias representative at the United Nations, Ambassador Ion Jinga, addressed the Security Council as part of a ministerial debate on “Maintenance of international peace and security upholding the UN Charter. The Romanian diplomat mentioned that 2020 marks the 75th anniversary of the UN, which remains the most adequate platform for collectively tackling threats to international peace and security, and that the UN Charter remains the reference document in this respect. He emphasised that the recent developments in the Middle East and North Africa prove once again the responsibility of the international community in facilitating political solutions able to support long-lasting peace. Ambassador Jinga also spoke about Romanias contribution to peacekeeping, proven among other things by its participation in 2019 in 10 UN peacekeeping missions.





    AIR CRASH The USA, Canada and Britain said that information from multiple sources indicates that the Ukrainian aircraft that crashed on Wednesday near Tehran has been taken down by Iranian armed forces. 176 people died. Iran may have accidentally shot down the plane in which 63 Canadian citizens were traveling, among other nationals, Canadas PM Justin Trudeau said. The US president Donald Trump and British PM Boris Johnson confirmed the hypothesis. All parties now ask Iran to initiate a detailed and thorough investigation. The Iranian authorities dismissed the latest intelligence as ridiculous and part of an American psychological manoeuvre. The Ukraine International Airlines flight to Kiev crashed shortly after taking off from the Tehran airport, just hours after Iran had launched ballistic missiles against 2 US military bases in Iraq, with the Iranians subsequently on alert for prospective American retaliation. According to American intelligence, the infrared signature from two suspected missile launches was identified, followed shortly afterwards by the infrared blip from the burning Boeing 737-800. On Thursday Irans Civil Aviation Organisation said the 3-year old plane faced technical problems shortly after take-off.



    HANDBALL Romanias mens handball team plays tonight in Benevento, Italy, against Georgia, in its first match in Group 3 of the qualification phase for the 2021 World Championship in Egypt. On Saturday Romania will play against Kosovo, and on Sunday they will take on the host country. The group winner qualifies into the second qualification phase, scheduled for mid-April. Manager Rares Fortuneanu, who also coaches Saint Raphael, in Frances top handball league, says he is confident Romania can qualify into next years final tournament, the first with 32 teams taking part. In the womens competition, Romania reached the main groups of the World Championship held last month in Japan.


    (translated by: Ana-Maria Popescu)

  • Romania and the Gulf crisis

    Romania and the Gulf crisis

    Awaited with great anticipation, Wednesday nights speech by US president Donald Trump dispelled, to some extent, the worlds worst fears. A military conflict in the Middle East seems to no longer be imminent, and instead the door is open to negotiations for a new deal with Iran, whose nuclear ambitions are hardly a secret. Donald Trumps statement came at a time when the tensions following the killing of Iranian Gen. Qassem Soleimani in Baghdad by an US drone strike had reached a peak.



    On Wednesday, president Trump promised additional economic sanctions against Iran, and pointed out that he will request NATO to get more involved in the region. He also called on the worlds major powers, including Russia and China, to walk out of the 2015 nuclear deal with Tehran and to work towards a new agreement. The White House leader concluded his address with the message “The US is ready to embrace peace with all who seek it.



    The attacks against American military bases in Iraq that preceded this address however alarmed the international community, including Romania, which decided to temporarily relocate the 14 troops it had deployed in Iraq. In Bucharest, top-level officials called for a calm, diplomatic approach. Here is the foreign minister Bogdan Aurescu:



    Bogdan Aurescu: “Romania reiterates its firm call for de-escalation. What we can tell you is that the Romanian troops that are part of the coalition against DAESH have not been affected, which is good news. Also, given that a number of strikes targeted the region of Erbil, where around 180 Romanian nationals live, the Consulate General of Romania in Erbil confirmed that the Romanian citizens there were not affected by these developments.



    Roxana Diaconescu has been living there for almost a year. She is 35, studying for a Ph.D. in political sciences and working for an NGO that runs humanitarian projects. This is what she told Radio Romania:



    Roxana Diaconescu: “I cant say we have been affected by the Iranian attack, although I live rather close to the military base, which is located within the airport. I havent heard missiles fired. I hadnt realised what was going on until morning, when I saw the news. It was a normal work day, I went to work, I sent my kid to school. Everybody is now worried about what will happen next, whether the US is going to retaliate or not. For the time being no NGOs are sending their expats out of Iraq.



    It is important to ease the fears of the public, to some extent, the Romanian defence minister Nicolae Ciuca said in his turn. He added the situation in the Middle East remains closely monitored, so that relevant institutions may take appropriate measures if necessary.


    (translated by: Ana-Maria Popescu)

  • The Week in Review, 10-15 November 2019

    The Week in Review, 10-15 November 2019

    The right and left face each other in presidential runoff


    On Sunday, November 10, Romanians went to polls in the first round of the presidential election. Out of the 18.2 million voters, 51.19% showed up in polling stations and decided that facing each other in the second round, due on November 24, would be the Liberal candidate, the incumbent president Klaus Iohannis, who got 37.82% of the votes, and the ex-PM and Social Democrat leader Viorica Dancila, who got 22.26%. An outspoken opponent of the Social Democratic Party, which he blames for damaging reforms in the judiciary and economy, Klaus Iohannis warned that a victory is not yet certain, and urged people to come to polls in the runoff as well:



    Klaus Iohannis: “As for the runoff, I call all those who were with me in the street to defend the rule of law to come to polling stations so that your efforts may not be in vain! To those who want hospitals, schools, motorways, I tell you, come to polling stations to remove the Social Democrats from power completely, and to build all these things together! To those who no longer want to see their children and grandchildren leave the country, I tell you, come to polls, because now is the time to change things! And to the many people who are already away, I tell you, come to polls, because now you can make a difference!



    In turn, the Social Democrats chief voiced confidence in her victory:



    Viorica Dancila: “The votes cast today help us to carry on our campaign, a campaign in which we will tell Romanians both what we have achieved so far, and, more importantly, what we intend to do for them once we win the presidential election. Our fight is not against a political party, we dont try to dismantle a political party because democracy means that any party must be allowed to present its view. Our fight will be, as it has been so far, a fight for Romanians, for Romania, for balance and consensus, for unity, for a dignified representation of Romania both in the country and abroad.



    Whereas the turnout in the country in the first round was rather modest, the Romanians living abroad mobilized and went to polls in record numbers, reaching 675,000 people.




    Strategies for the second round of the presidential election


    Although the first day of the campaign for the presidential runoff is November 15, the competition between the 2 candidates started shortly after the first round and is already tougher than ever. The decision taken by President Klaus Iohannis and his campaign staff not to participate in any direct debate with Viorica Dancila is surprising for many people. On Tuesday, the President, who made no secret out of his goal to remove the Social Democrats from power, has written in a post that there can be no debate with a candidate of a party that ruled against the Romanians and which only goes through the motions of democracy. Dancila, who repeatedly asked for a debate ahead of the first election round, has reacted by saying that a debate would help her dismiss all “dirty accusations levelled against her and her party in the past few years. In a press conference on Wednesday, Klaus Iohannis pointed out:



    Klaus Iohannis: “Mrs. Dancila is the representative of an anti-democratic, unreformed party, which has governed against Romanians’ best interests. In the current election campaign, she pretends to be a democratic candidate, expecting due respect from everyone, as if she had been defending Romanian democracy and Romanians all along.



    Viorica Dancila was quick to retort:


    Viorica Dancila: “Mr. Iohannis speaks of a disastrous government. If disastrous government means increasing salaries and pensions, investing in local communities, making Romanian economy second at EU level in terms of growth, then the President is either dishonest or misinformed. Moreover, disastrous governing wouldn’t have been praised by Member States and third-party states for the good handling of the rotating presidency of the Council of the European Union.



    The campaign is due to conclude on Saturday, November 23, at 7.00 AM.




    Romanias nominee for Transport Commissioner, approved by the EP


    Adina Valean, designated by Romania for the post of European Commissioner for Transport, Thursday got the green light from the specialist committee in the European Parliament. Her priorities include an environment-friendly, fair and transparent transport network and fewer road accidents, in which respect Romania has the poorest figures in the EU. The president elect of the European Commission Ursula von der Leyen will present the full commission and its programme to the European Parliament on November 27.



    A new political crisis in the Republic of Moldova


    The Republic of Moldovas pro-Russian president Igor Dodon Wednesday entrusted one of his advisers, Ion Chicu, with the formation of a new government. The nomination comes after the Cabinet headed by the pro-European PM Maia Sandu was dismissed in a no-confidence vote initiated by Dodons Socialists, although they were part of the ruling coalition. On Thursday the new Cabinet was endorsed by the Moldovan Parliament and shortly after that they were sworn in.


    (translated by: Ana-Maria Popescu)

  • Psychiatric hospitals under scrutiny by authorities

    Psychiatric hospitals under scrutiny by authorities

    A long series of human errors and the failure to observe the provisions in the job description — these are the causes that led to a tragedy in a psychiatric hospital near the city of Buzau (southeast), according to the health minister Sorina Pintea. On Saturday night, an alcoholic patient in that mental health facility attacked the other patients killing 5 and wounding 8.



    The violence shocked the public opinion and revealed the big flaws of the Romanian medical system, which has been facing lots of problems for many years, one of the most stringent being under-financing. In relation to the Buzau tragedy, the health minister accuses the hospital managers, claiming that the attack occurred because of the medical staff’s negligence and not because of flaws in the system.



    Sorina Pintea: “Please don’t tell me that nobody knew their job description. It is the duty of the senior nurse to organize periodical trainings in relation to obligations at work, procedures and protocols. Has anybody ever done that? Never.”



    All mental health facilities in Romania will be checked by the Health Ministry officials, Minister Sorina Pintea announced, reiterating that 80% of the hospital managers should not be working in the health system. She also pointed out that changes would be made to the performance indicators for managers as soon as possible.



    Sorina Pintea: “We have finalized the investigation in this case, but checks have just started and will continue in all psychiatric hospitals in Romania and mainly in those hospitals with security departments. The health minister cannot go in person to each hospital in the country, but the public health directorates have representatives in the hospitals’ boards of directors, who don’t seem to be doing their job. These boards should approve budgets, acquisition plans. We’ll also have talks related to the modification of the mental health law, because there are many inadvertences. We shall have to corroborate them with the European directives and adapt them to the Romanian realities of the present.”



    Hospital managers believe the health ministry should decide on a complete modernization of psychiatric hospitals, saying that the equipment and protocols are 30 years old. On the other hand, the trade unionists with the Săpoca psychiatric hospital claim the medical and auxiliary staff in that facility is insufficient and that it is inadmissible to have only one nurse, an instructor and an orderly to watch over 70 patients with psychiatric problems at the weekend. Trade unionists also say that the 75% hazard pay was diminished to 50% on grounds of ‘lack of money’. (translation by L. Simion)