Radio România Internațional

Tag: draft

  • December 16, 2023

    December 16, 2023

    BUDGET The 2024 state budget and social security budget bills will be reviewed by Parliament’s specialist committees as of Monday. On Tuesday the draft laws will be discussed in a joint plenary
    meeting, with a final vote expected on Wednesday. On Thursday night the
    government passed the two bills, which rely on better spending of EU funds and
    on improving tax collection by means of a more efficient operation of the
    national tax agency and on curbing tax evasion. PM Marcel Ciolacu, the leader
    of the Social Democratic Party, spoke about an increase of budget revenues from
    27% to 30% of GDP. According to him, the 2024 budget earmarks the largest
    funding in Romania’s history for education and investments. The Opposition, on
    the other hand, says the budget is based on unrealistic figures and that
    payment of public pensions will be a major problem next year.


    EU President Klaus Iohannis says the EU winter summit, which came to an
    end in Brussels on Friday, will be remembered for the historic decision to initiate
    accession negotiations with Ukraine and the Republic of Moldova. The Romanian
    official encouraged the government of Moldova to step up the reforms required
    for EU integration. As for Ukraine, the president of the European Commission,Ursula von der Leyen, says the
    decision was a promise kept and an investment in stability and security. EU
    leaders also discussed the Israel-Hamas war, and condemned the continuing
    hostilities with growing numbers of victims among Palestinian civilians in Gaza
    and the West Bank. They argued that peace will only be achieved through a
    two-state solution. A revision of the 2021-2027 Multi-Annual Financial
    Framework, support for Ukraine, securitaty and defence, migration and the
    future EU Strategic Agenda were also discussed at the European Council meeting
    on Thursday and Friday in Brussels.


    COMMEMORATION Romania marks today 34 years since the start of the 1989 Revolution
    in Timişoara (west) which eventually led to the fall of dictator Nicolae
    Ceauşescu’s communist regime. In this context, the Revolution Memorial was
    opened to the public in Timişoara on Saturday. The organisers prepared a
    complex programme, providing information on the events of 1989, with a special
    section for the visually impaired.


    ISRAEL Hundreds of people gathered in Tel Aviv on Friday night,
    following an announcement that 3 Gaza hostages had been accidentally killed by
    Israeli troops. The protesters demanded that the government immediately signed
    a deal to free the remaining hostages. Over 100 people are still captive in
    Gaza, after being kidnapped by Hamas in the October 7th attacks on Israel.
    Meanwhile, humanitarian aid will reach Gaza via an Israeli checkpoint, for the
    first time since the start of the war, after Israel authorised access through
    the Kerem Shalom checkpoint. So far humanitarian aid could only go through the Rafah
    checkpoint from Egypt. After more than 2 months of armed conflict and the siege
    imposed by Israel since October 9th, living standards in Gaza Strip
    are described by the UN and NGOs for Palestinian civilians as a nightmare. According
    to the UN, some 1.9 million people, accounting for 85% of the region’s
    population, have been relocated. (AMP)

  • December 14, 2023

    December 14, 2023

    BUDGET Romania’s draft 2024 budget is to be endorsed by the
    Cabinet in a meeting today. The document will subsequently be submitted for
    review in Parliament. The budget is based on a 3.4% economic growth rate, a
    budget deficit target of 5% of GDP and an estimated annual inflation rate of 6% of GDP. The
    draft law also includes the already announced salary and pension increases, as
    well as most of the measures in the Government’s new legislative package. The
    ministries that will receive more money than in 2023 are the education,
    development, environment and family ministries, while lower appropriations
    would be received by the energy ministry and the ministry for investments and
    EU projects.


    SUMMIT The president of
    Romania, Klaus Iohannis, takes part on Thursday and Friday in the European
    Council meeting in Brussels, where important and complex topics will be
    approached, according to the Romanian Presidency. These include the EU
    enlargement, a revision of the 2021-2027 Multi-Annual Financial Framework,
    support for Russia-invaded Ukraine, the situation in the Middle East, security and
    defence, migration and the Union’s future Strategic Agenda. As far as the
    Multi-Annual Financial Framework for 2021-2027 is concerned, president Iohannis will plead
    for an approach that promotes financial balance between the already existing
    commitments and the new priorities on the EU agenda, and does not involve a cut
    in the funding of the Common Agricultural Policy and the Cohesion Policy, the
    Presidency says. As for the situation in the Middle East, Mr. Iohannis will
    insist on the need for increased involvement of the EU in the region, in view of protecting
    civilians, de-escalating the conflict and resuming the two-state peace process.


    UKRAINE The reconstruction of Ukraine and Romania’s strategic role
    in this process is the topic of an international conference held in the
    Romanian mountain resort of Sinaia. Taking part are Romanian and foreign
    officials, independent experts, business people, academia and diplomats. The
    head of the Romanian government, Marcel Ciolacu, and the Ukrainian prime
    minister Denys Shmyhal, sent a video message to the participants, highlighting
    the Romanian-Ukrainian partnership and Romania’s support for Ukraine.


    FUNDING On Friday, December 15, Romania will submit its 3rd
    payment request under the National Recovery and Resilience Plan, the PM Marcel
    Ciolacu said at a meeting of the inter-ministry coordination committee for this
    programme. The funding under the Plan amounts to EUR 2.7 bln and covers 74
    targets and benchmarks for the second half of the year 2022.


    ISRAEL The
    Romanian foreign ministry this morning announced the death of another person
    with Romanian and Israeli citizenship taken hostage in Gaza by the Islamist
    group Hamas. Tal Haimi was kidnapped on October 7, and his death had
    already been announced by the Israeli Embassy in Romania. According to a
    Facebook post by the Israeli diplomatic office, Tal Haimi’s wife had come to
    Bucharest in late October to request Romania’s assistance in the efforts to get
    the Hamas hostages freed. On December 2, the foreign ministry said the Israeli
    authorities announced the death of a person with dual, Romanian and Israeli
    citizenship, captive in Gaza. Two other people with Romanian and Israeli
    citizenship are currently held hostage by Hamas, and Romania’s foreign ministry
    reiterates the need for all hostages to be released. The Romanian Embassy in
    Tel Aviv stays in touch with the Israeli authorities, the foreign ministry also
    said.


    ALERT Alert
    messages were sent to the citizens in the counties of Galaţi and Tulcea, near Romania’s Ukrainian border, on Wednesday night. People
    were warned against objects falling from the airspace, were urged not to panic
    and take shelter if necessary. These were the first RO-ALERT messages sent to
    the population in nearly 3 months, in the context of the war in Ukraine. This
    year the defence ministry identified parts of 3 drones used by Russia in
    strikes on Ukrainian Danube ports, which had fallen in Tulcea County. (AMP)

  • November 17, 2023 UPDATE

    November 17, 2023 UPDATE

    BUDGET PM Marcel Ciolacu said on Thursday that there will be no new
    taxes next year and that the Romanian government will have money by fighting
    tax evasion. According to him, in October, revenue collection to the state
    budget reached a record level, around EUR 8. By keeping the same pace and
    maintaining non-essential expenses under control, the PM added, by the end of
    the year we will meet the deficit target agreed with the European Commission.
    The statement comes after, recently, the Liberal leader Nicolae Ciucă argued
    that Romania cannot afford an increase in taxes next year and that funding
    sources must be found to support the draft pensions law.


    POVERTY
    One in 5 Romanians was affected by poverty in 2022, the National Statistics
    Institute reported. The number of people in need was 4.2 million, slightly
    below the figure reported in the previous year. The highest poverty rate was
    reported among youth up to 24 years of age, with the poverty rate for
    households with children and youth 5.2% higher than in households without dependent
    children and youth. The National Statistics Institute also said that, without
    pension and other welfare payments, nearly half of the population would have
    been below the poverty threshold, and the situation would have been even worse
    among the elderly.


    VISIT
    Romania and Tanzania have agreed on mutual student grant programmes. The
    president of Romania, Klaus Iohannis had a meeting with his counterpart, Samia
    Suluhu Hassan in the capital city Dar es Salaam on Friday, and discussed the
    development of this country’s relations with the EU. Tanzania may count on
    Romania as regards promoting and encouraging its relations with the EU, president
    Iohannis said after the meeting. He presented Romania’s view on giving a fresh
    impetus to the country’s relations with African states, based on the recently
    adopted National Strategy for Africa. Iohannis also said agreements were
    reached on bilateral cooperation in areas like education, civil protection,
    agriculture, forestry, IT and cyber security. In turn, the president of Tanzania
    announced that Romania decided to provide 10 grants for students from Tanzania,
    which in turn will be providing 5 grants to young Romanians who wish to study
    there. Two memorandums were also signed on disaster risk management and
    cooperation and research in agriculture. The president of Romania is on a tour
    in Africa, which began on Tuesday in Kenya. On Saturday, Klaus Iohannis will be
    received by the president of Zanzibar, Hussein Mwinyi, and then he will travel
    to the Republic of Cabo Verde, for talks with president Jose Maria Neves. The
    tour concludes on November 23 in Senegal, with political consultations with
    president Macky Sall.


    MILITARY The Romanian
    company Aerostar, based in Bacău, eastern Romania, Friday signed a cooperation
    agreement with Derco Aerospace (a member of the US group Lockheed Martin),
    concerning technology transfer for the repair of F-16 aircraft equipment operated
    by the Romanian Army. Attending the event was NATO’s deputy secretary general
    Mircea Geoană. He said NATO was interested in 2 goals-expanding the defence
    industry in all member states and creating an innovation ecosystem for dual-use
    industries (civilian and military), benefiting the newer NATO member states.
    The agreement was signed just days after the opening of the first European F-16
    training centre, at the Feteşti air base in the south-east of Romania, and capitalises on 26 years of cooperation between Lockheed Martin and Romania.


    FOOTBALL
    Romania’s national football team are in Hungary for a match against Israel on
    Saturday evening, in Qualifying Group I of the 2024 European Championship to be
    hosted by Germany. Because of the war at home, the Israelis had to postpone
    their October-November matches, and to play abroad the matches scheduled at
    home. Romania completes the qualifying stage on Tuesday, in Bucharest, with a match
    against Switzerland. Undefeated in the first eight matches, Romania has 16
    points and is behind group leader Switzerland on goal difference. Next comes
    Israel, with 11 points, and Kosovo, with 10 points. The two top-ranking teams
    in each group go to the final tournament. Romania last qualified for a final European
    tournament in 2016 and for a World Cup in 1998. (AMP)

  • Deputies review special pensions bill

    Deputies review special pensions bill


    The Chamber of Deputies is currently working on a draft law to reform the pension system used primarily for the magistrate corps and for army and interior ministry personnel, and which is not based on contributions to pension funds during the employment, but on other, special criteria.



    This reform is a benchmark in the National Recovery and Resilience Plan. As long as the issue was not linked to financial considerations, Romanian politicians were reluctant to tackling this delicate topic, with the exception of Save Romania Union, in opposition, which has repeatedly lobbied for scrapping the special pensions.



    Before reaching the Chamber, the bill on the special pensions saw amendments from the ruling coalition parties-the Social Democratic Party, the National Liberal Party and the Democratic Union of Ethnic Hungarians in Romania.



    According to their authors, these amendments were designed to eliminate abuse and inequity, and the pension contribution principle will be, from now on, the primary factor in the entire public pension system. According to the new amendments, exemptions will be eliminated with respect to the standard retirement age, so that from now on diplomats and auxiliary staff in courts will also retire at the age of 65. The same principle will be applied gradually, until 2035, for military personnel as well.



    Also, until January 2034, the minimum relevant length of service requirement will be increased to 25 years for several categories of employees, including diplomats, Parliament clerks, and Court of Accounts staff.



    Under another amendment, certain categories of employees who previously had the same rights and obligations as magistrates or diplomatic staff will no longer benefit from special pensions.



    The calculation basis for special pensions is also being adjusted to the one used in the public system. Whereas so far special pension benefits were calculated based on the revenues during the last 12 months in office, from now on this period will be gradually raised to 300 months. No special pension will be higher than the salary received while in office.



    Also, a 30% tax rate will be levied on the special pension amount in excess of the current national gross average salary and in excess of the contribution principle.



    Another amendment cancels a mechanism used so far, under which magistrate pensions were raised proportionately with the increase of gross monthly allowances paid to active judges and prosecutors.



    “The retirement benefits paid to each citizen must reflect the importance of their lifes work and their contribution to the public system,” PM Nicolae Ciucă said. He also added that with the Pension Law and the Salary Law, Romania will have completed the reform package stipulated for this year in the National Recovery and Resilience Plan, thus ensuring sustainability and equity in the public salary and pension sector.



    Quite predictably, the Higher Council of Magistrates has criticised the draft law on special pensions, warning that a sudden increase of the retirement age for judges and prosecutors might force over 1,500 magistrates out of the system. (AMP)


  • Complicated Parliament Agenda

    Complicated Parliament Agenda

    Parliament in Bucharest is in for more heated debates this
    week after two draft laws, on the abuse of office and special pensions – have
    been submitted for debates and voting.


    Voting on the two bills has become predictable in principle, thanks
    to the comfortable majority the ruling PNL-PSD-UDMR coalition is presently enjoying.
    The Chamber of Deputies is a decision making forum regarding these two bills.






    The draft law on the abuse of office is to be endorsed
    within a ceiling of 9,000 lei, (18 hundred Euros) above which the deed is to be
    criminalized and punishable with jail sentences for public employees- PSD
    leader Marcel Ciolacu says. He believes that Justice Minister Cătălin Predoiu
    should have assumed the aforementioned value limit as early as the draft’s
    initial form, and that should have prevented the first endorsement at a higher
    ceiling of 250 thousand lei.




    Marcel Ciolacu: ʺI am firmly
    convinced together with my colleagues from the PSD PNL and UDMR that this law
    will get promulgated with the ceiling of 18 hundred Euros, as proposed by the Justice
    Minister.




    However, the opposition USR has lashed out at the form
    endorsed by the PSD, PNL, UDMR senators.


    Stelian Ion: The
    Constitutional Court’s decision imposed a ceiling, which was common sense,
    reasonable at the level of the minimum wages.




    Also in spite of the oppositions’ protests, a draft on
    reforming the special pensions paid to state employees has made it to the
    Chamber of Deputies.


    Under the new amendments backed by the ruling
    coalition, no special pension has to exceed the incomes before the person’s
    retirement. Accumulated pension plans have been banned and a tax of maximum 15%
    has been introduced for the non-contribution period. Unsatisfactory, says the
    opposition, which has called for the introduction of the contribution system
    for all pensions irrespective of the activity domain. 200 thousand people are
    presently benefitting from special pensions, most of them former employees of
    the country’s defence and public order structures. However, the former magistrates, judges and
    prosecutors are presently enjoying the biggest special pensions, which can go
    up to 36 hundred Euros, ten times above a regular pension. Reforming the
    country’s pension system is a request provided by the National Plan of Recovery
    and Resilience and we recall that the approval of roughly 3 billion dollars worth
    of EU funds hinges on this plan.


    Other bills on the Parliament agenda in Bucharest
    might be the new laws on education, based on Romanian president Klaus Iohannis’
    project entitled Educated Romania’. The
    law is aimed at curbing school dropout and functional illiteracy, at placing
    the student at the center of the country’s educational process, at the same
    time backing the European cooperation of universities in Romania. The
    opposition has criticized the draft laws as faulty and prone to cause
    imbalances.


    (bill)

  • December 9, 2022

    December 9, 2022

    SCHENGEN Romania’s and Bulgaria’s bid to join the Schengen
    free-movement area may be included on the agenda of the European Council
    meeting next week, at the request of the president of Romania, Klaus Iohannis,
    political sources in Bucharest said. I am convinced we will reach the
    accession of Romania and Bulgaria during this mandate and this will be my
    priority, Ylva Johansson, the European Commissioner for Home Affairs, said in
    her turn. The statement comes after on Thursday at the EU Justice and Home
    Affairs Council meeting, Austria opposed Romania’s entry.


    AMBASSADOR The
    Romanian foreign ministry announced that following Austria’s veto regarding
    Romania’s Schengen accession, the country’s ambassador to Vienna, Emil
    Hurezeanu, was recalled for consultations by minister Bogdan Aurescu. The
    embassy will be headed by an interim charge d’affairs. According to diplomatic procedure,
    the decision is an indication of Romania’s firm disagreement with Austria’s
    position and also of the deterioration of current relations with that country.


    BUDGET The draft state budget
    and social security budget of Romania were passed by the government and have
    been forwarded to Parliament for discussion. The ministries set to receive more
    funding include the defence, agriculture, transport, development and education.
    Less money than this year will be earmarked for energy, judiciary and public
    healthcare. The two bills also stipulate a 10% increase in public sector
    salaries, a 12.5% increase in pension point value and an increase of the
    national minimum wage to approx. EUR 610 per month. AUR party in opposition
    already announced it would table amendments because it disagreed with the draft
    budget.


    WORKERS Another 100,000 non-EU citizens will be given access to the
    Romanian labour market next year. The figure decided by the government is
    similar to the one approved for 2022, and it is intended to cover the labour
    deficit in sectors like constructions, hospitality, protection and guard
    services, road transport and trade.


    INVESTMENTS Net investments in the Romanian economy in the 3rd
    quarter of the year reached EUR 8 bln, up 13.3% compared to the corresponding
    quarter of last year, according to unaudited data made public by the National
    Statistics Institute today. For the first 9 months of the year, the figure is
    around EUR 19 bln, up 4.5% since 2021. Major increases were reported in
    constructions and heavy industry. According to the National Statistics
    Institute, net investments are expenditure incurred with creating new fixed
    assets or with developing, upgrading and rebuilding existing ones, and with the
    transfer of ownership on existing fixed assets.


    GAUDEAMUS The 29th edition of the Gaudeamus Book Fair organised by Radio
    Romania is under way in Bucharest until Sunday. The event brings together 200
    participants and a variety of editorial products on different formats, for all
    ages and areas of interest, including music and educational games. The line-up
    features 600 different events and related projects. As a first, the fair also
    has special areas dedicated to interactive activities for young visitors. All
    stands are also available online on the gaudeamus.ro website. The fair’s
    honorary president this year is poet Ana Blandiana.


    FOOTBALL The FIFA 2022 World Cup in Qatar has reached the
    quarter-final stage. Two matches are scheduled for today, pitting Croatia
    against Brazil and the Netherlands against Argentina. On Saturday, Morocco
    takes on Portugal and England is facing France. (AMP)

  • December 7, 2022

    December 7, 2022

    BUDGET
    The finance ministry has made public the draft state budget of Romania for next
    year. The document is based on an estimated GDP growth of 2.8%, an 8% inflation
    rate, a growing number of employees and a declining 2.7% unemployment rate. The
    ministries set to receive less money include the energy, justice and public
    healthcare, whereas the defence, development, transport and education
    ministries will receive substantially higher budget appropriations. The ruling
    coalition made up of the Social Democrats, and Liberals and the Democratic
    Union of Ethnic Hungarians in Romania intends to endorse the draft budget tomorrow
    and send it to Parliament the next day, for discussion next week.


    SECURITY Romania has constantly worked to
    identify solutions to enhance security at the Black Sea, the Romanian foreign
    minister Bogdan Aurescu said in Ankara on Tuesday, when he had
    a meeting with his Turkish counterpart, Mervlut Cavusoglu. The two officials
    discussed the best avenues for cooperation, both at bilateral level and within
    the NATO framework. They finalised and agreed on the text of the political
    declaration setting up the Romania – Turkey High Level Strategic Cooperation
    Council, organised as a regular meeting of the two countries’ governments and
    focusing on strategic areas of mutual interest, which will be launched in 2023.
    Another topic approached in the meeting was cooperation in the energy sector,
    recognised by both officials as a priority, particularly in light of the recent
    challenges. An agreement was reached to strengthen joint efforts to ensure the
    security of Romania’s energy supplies by transiting Turkish territory. Also,
    the multidimensional effects of the war in Ukraine have been analysed, with
    special attention paid to the refugee crisis and food security.


    JUSTICE The Romanian justice minister Cătălin Predoiu will
    take part in the meetings of the Justice and Home Affair Council and General
    Affairs Council of the European Union, between December 7th and 14th.
    According to a JHA Council news release, on the sidelines of the two meetings the
    justice minister will also have meetings in Brussels and Luxembourg with
    counterparts from other member countries and EU officials. At the JHA Council
    Mr. Predoiu will present Romania’s position with respect to the EU judicial
    instruments and policies in the judiciary currently on the Council’s agenda. The
    home affairs section of the Council is scheduled to make a decision regarding
    the accession of Romania, Bulgaria and Croatia to the Schengen area.

    ECONOMY The GDP of the European Union saw a 0.4% growth and
    that of the Euro-zone a 0.3% increase in the 3rd quarter of this
    year compared to the previous quarter, with the most substantial growth rates
    reported for Ireland, Cyprus, Malta and Romania, according to data released on
    Wednesday by Eurostat. The economic growth rate in Ireland was 2.3%, and in
    Cyprus, Malta and Romania 1.3%. The most substantial decline is reported for Estonia
    (negative 1.8%), Latvia (negative 1.7%) and Slovenia (negative 1.4%). Among EU
    member countries, the most significant annual growth rate is reported for
    Ireland (10.6%), Croatia (5.5%), Cyprus (5.4%), Malta (5.2%), Portugal (4.9%) and
    Romania (4.7%), the only negative rates being reported for Estonia (negative 2.3%)
    and Latvia (negative 0.4%).

    OIL Global oil
    prices dropped to the lowest level this year, in spite of the estimates of some
    international experts that expected the EU and G7 ban on Russian crude and the
    cap on crude prices to trigger market turbulence. In Romania, the lowest petrol
    price is EUR 1.3, and diesel is sold for EUR 1.54. On the other hand,
    neighbouring Hungary is facing a fuel crisis caused, according to AFP, by the
    price cap introduced by Viktor Orbán’s government a year ago. The fuel shortage
    comes in the context of a 30% decrease in imports as foreign companies cut down
    their sales to Hungary as a result of the price cap, the country’s association
    of independent petrol stations said.


    GAUDEAMUS The 29th
    edition of the ‘Gaudeamus’ Book Fair, organised by Radio Romania, kicked off in
    Bucharest today. Until Sunday, 200 participants will be exhibiting releases in
    various formats, addressing all age brackets and fields of interests, as well as music and educational games. 600 events have been announced in addition to
    various related projects. As a novelty, 2 areas have been arranged within the
    Fair, for interactive activities targeting the youngest visitors. Pavilions are
    also available online on gaudeamus.ro. The honorary president of this year’s
    edition is the writer Ana Blandiana.


    FOOTBALL In the FIFA
    World Cup in Qatar on Tuesday, in the round of 16, Portugal smashed Switzerland
    6-1, while Morocco scored a surprising win against Spain 3-0 on penalties. In the
    quarter-finals on Friday, the Netherlands will be up against Argentina, and
    Croatia takes on Brazil, while on Saturday England will be facing defending
    champions France and Morocco will take on Portugal. The semis are scheduled for
    December 13 and 14, and the final on December 18. (AMP)

  • State budget without new taxes

    State budget without new taxes

    Romania’s ruling coalition, made up of the Social Democratic
    Party, the National Liberal Party and the Democratic Union of Ethnic Hungarians
    in Romania (UDMR), is to submit the draft budget law for 2022 to Parliament by December
    20, for discussion and endorsement. The 3 parties intend to have the
    fiscal-budgetary strategy passed by Christmas.


    The law
    must provide funding for investments, the increase of public pensions and
    allowances, while at the same time keeping the budget deficit under control.


    The idea of
    introducing new taxes has triggered debates in the new ruling coalition. The Liberals
    once again emphasised that next year’s budget will not be based on new taxes. However,
    the Social Democrats and UDMR sought to levy an additional 1% of turnover tax
    on companies with turnover in excess of 100 million euro. According to UDMR,
    the money would cover healthcare and education investment needs, but the
    business community voiced discontent with the measure.


    The Liberal
    president Florin Cîţu mentioned that these companies paid taxes in advance last
    April, when the economy was shut down, and argued that it is not fair for the
    same businesses to be penalised.


    In turn, PM
    Nicolae Ciucă promised there will be no such taxes. This is precisely what we
    pledged in the governing platform, namely that no such tax will be levied this
    year. The governing plan was endorsed by Parliament and it will be applied as
    such,ˮ Nicolae Ciucă pointed out.


    The finance
    minister Adrian Câciu said in turn that the budget will not include new taxes,
    and that any change in the tax system will be predictable and operated after talks
    with private businesses. He said Romania needs solidarity now, to protect
    low-income citizens from price rises, especially in the energy sector. We will
    achieve this by stimulating the economy and encouraging the companies that
    produce in Romania, regardless of their ownership, because all that is produced
    in Romania is produced by Romanian employees. A product made in Romania means
    jobs for Romanians. By supporting Romanian producers, we provide guarantees that
    hundreds of thousands of people will have stable, safe jobs, the finance
    minister Adrian Câciu explained.


    In turn,
    the Social Democratic leader Marcel Ciolacu said that should the coalition
    decide to introduce a new tax, this will not take effect sooner than in 6
    months’ time. On the other hand, he said the country has major problems in
    terms of tax evasion and VAT collection. Romania is estimated to have tax
    evasion accounting for 10% of GDP at the moment. Moreover, 34% of the VAT owed
    is not collected,ˮ Marcel Ciolacu warned. (tr. A.M. Popescu)

  • Senate passes controversial laws

    Senate passes controversial laws

    The Senate of
    Romania on Monday endorsed to major initiatives by the ruling PNL and USR
    amending a couple of draft laws, which sparked off heated debates in society when
    they were first issued.




    The first one repeals
    the regulation introduced during the PSD ruling in 2018, allowing for the early
    retirement of judges and prosecutors at the age of only 45 after only 20 years
    on the job. According to the Liberals, the law was defying the Romanians in a
    country where most of the people retire at 65, and that the new amendments
    represent a return to normalcy, under which magistrates can retire at 60 after
    25 years of work. Other personal criteria for early retirement, such as illness
    or other issues, have also been covered by the law, the initiators explained.




    According to
    them, in its initial form, the law would have allowed for the early retirement
    of a significant number of magistrates, a situation with a major impact upon
    the good functioning of courts and prosecutor’s offices




    The shortage of
    magistrates would have also significantly impacted the quality of the Judiciary,
    prolonging resolution time in certain files. For this reason, the provision
    never came into effect but was prorogued every year. We recall that in this
    case, the Senate is a decision-making body.




    Also on Monday,
    Romanian senators repealed a provision, which banned the selling of state-owned
    shares in national companies and enterprises to loan institutions or to other
    company where the state is a shareholder.




    A provision on
    the two-year suspension of any operations regarding the selling of state-owned
    shares under realization was also repealed.




    The draft,
    initiated by the center-to-right coalition, allows for capitalizing on shares
    with a view to avoiding severe impacts on social relations regarding the
    economic freedom of operators where the state is a shareholder and of the free
    movement of capital.




    At the same
    time, by diversifying shareholders, the government intends to achieve market
    competitiveness and performance. Opposition senators from PSD and AUR have
    opposed the project arguing that it is not the right time for state shares to
    be listed on the stock exchange blaming the government for trying to sell the
    state shares in major companies. The draft law will be submitted to the Chamber
    of Deputies for approval.


    (bill)

  • February 15, 2021 UPDATE

    February 15, 2021 UPDATE

    COVID-19 In Romania, the COVID-19 vaccine rollout continues, with around 700,000 people immunised since December 27. Over 1.1 million doses have been given so far, most of them produced by Pfizer/BioNTech, followed by Moderna, and on Monday people also started receiving AstraZeneca vaccines. According to the authorities, Romania comes 6th in the EU by total number of vaccine doses administered. Meanwhile, the total number of SARS-CoV-2 cases reported in the country since the start of the pandemic is over 763,000. 709,520 people have recovered, and nearly 19,500 died. As of Monday, new rules are in place for travellers coming into Romania from yellow-zone countries.



    PROTESTS Fresh trade union protests are taking place in Romania. On Monday Sanitas Federation picketed the head offices of the Finance Ministry, demanding a higher budget for investments in public hospitals and healthcare staff salaries. Union members say the funds earmarked this year to the healthcare sector to be insufficient, given the pandemic. Protesters then moved in front of the Parliament building. In turn, Cartel Alfa union announced protests at the end of the month, to demand decent minimum wages, fair pension benefits, high-quality public services, resuming collective bargaining, fair taxation and proper enforcement of the law.



    MOTION Romanias parliament is discussing the first simple motion in the current term in office. The motion targets the health minister Vlad Voiculescu, of the USR PLUS Alliance, a partner in the ruling coalition. Entitled Lack of competence and and of responsibility kills people. Vlad Voiculescu—a threat to Romanianshealth, the motion was tabled in the Chamber of Deputies by the Social Democrats in opposition, less than 2 months since the cabinet headed by the Liberal Florin Cîţu came to power. The Social Democrats accuse the new minister of failing to take the necessary measures to prevent the fire that killed patients in a Bucharest hospital. They also claim Voiculescu has not had enough COVID-19 testing centres for citizens. The health minister replied the Social Democrats are the ones to blame for the disaster in Romanias healthcare sector, and added that 3 of that partys former ministers are under investigation for corruption. The USR-PLUS co-president Dan Barna said the Alliance is firmly supporting all its cabinet members, while the Liberal leader Ludovic Orban says the Liberals will vote against the motion on Wednesday.



    HOSPITALITY Many European countries are adopting the holiday voucher system to support the hospitality industry, recovering after the losses incurred during the SARS-COV-2 pandemic, whereas in Romania these vouchers are scrapped without sound reasons, Romanian tourism employers say in a news release. Last week PM Florin Cîţu announced that the holiday vouchers for this year would be issued in 2022, to the discontent of hospitality businesses, which argue that this would deepen the crisis faced by this industry. Representatives of the sector had a meeting on Monday with the economy minister Claudiu Năsui, who said the government has earmarked funds to support the industry but that holiday vouchers cannot be issued this year.



    BUDGET The Romanian government wants the budget bill currently under public debate to get Parliaments approval by February 20th along with the amendments accompanying it, including an emergency order cancelling holiday vouchers and other one freezing pensions to the level of last year. According to the government, the present draft budget is set to lay the foundations for a multi-annual approach of the reforms and public finances with a gradual reduction of the deficit from 7.16% this year to 3.4% in 2024. At the same time, the budget targets investments of 5.5% of the GDP, the largest so far. According to Prime Minister Citu, the bill has support from the European Commission, which provides the biggest part of the funds for reform and investments.



    ECONOMY The EU industrial output dropped 1.2% in December 2020, compared to the previous month, according to data released on Monday by the European statistics office (Eurostat). The biggest monthly increases were reported in Denmark (2.4%), Portugal (1.8%), Estonia and Luxembourg (1.6%) and România (0.9%), and the most severe decline in Hungary (negative 2.5%). For the entire year 2020 compared to 2019, the Unions industrial output fell by 8%. Meanwhile, in December 2020 the EU reported roughly 30 billion euros in trade balance surplus, as against roughly 22 billion euros in 2019. As regards Romania, in 2020 its exports fell by 10%, to nearly 62 billion euros, while imports dropped 7%, to 80.5 billion euros, leading to a trade deficit of 18.7 billion euros compared to 17.6 billion the previous year.



    TENNIS The world’s number two tennis player, Romanian Simona Halep is to take on Serena Williams in the quarter finals of the Australian Open. The American has 9-2 wins in head-to-head matches although Simona won a major Wimbledon tournament in 2019. In the doubles eighth finals, the Romanian-Brazilian pair Horia Tecau/Marcelo Melo lost to Ivan Dodig of Croatia and Filip Polasek of Slovakia 4-6, 3-6. (tr. A.M. Popescu)

  • Draft budget under debate

    Draft budget under debate

    The draft state budget for the current year is based on a deficit of around 7% of the GDP and, according to the coalition Government, will support economic recovery and stop excessive and ungrounded spending from public money. Liberal Prime Minister Florin Cîţu promises a resettling of the economy, also by fixing what he calls the abnormalities introduced in the legislation, in the last four years, by the former Social-Democratic administrations, as well as maintaining the trust of the European Commission, foreign investors and rating agencies. He has also stated he is waiting for detailed reports on the situation of state-owned companies, including plans to restructure those that have reported losses.



    In the budgetary system, the head of the Government has also said, the expenses representing bonuses amount to around 600 million lei, the equivalent of 120 million euros. In pandemic conditions, with very high health expenditures, the amputation of these bonuses would block the haemorrhage of funds, the Government says, giving as an example the so-called computer bonus or the COVID bonus, accounting for 30% of the base salary, which is received by prefecture employees. The package of austerity measures also stipulates that childrens allowances remain unchanged, pensions will increase only from January 1, 2022, this year there will be no more holiday vouchers, and students will no longer benefit from complete free rail transport.



    From the opposition, the Social Democratic Party, which has the largest parliamentary group, has already announced that it will table amendments for all important chapters in the draft budget. The Social Democrats accuse lack of vision and solutions for the current issues. It is a budget of austerity, of cuts, it is not people-oriented and does not give good signals for the economy – the leaders of the left say.



    Beyond the disputes between politicians, austerity measures threaten to escalate tensions in society. Since the beginning of the year, the headquarters of the Executive, of ministries or parties have been picketed, practically, every day, by dissatisfied trade unionists. Nurses, police staff or prison guards, locomotive drivers or civil servants, all demand decent salaries, fair pensions, quality public services.


    The leaders of one of the biggest union federations in the country, CNS Alfa, say Romania needs a development budget, not an austerity one. Operators in the HORECA industry, already affected by the restrictive measures adopted due to the pandemic, are not at all happy with the announcement that no more holiday vouchers will be issued this year. The Employers Organization of Hotels and Restaurants in Romania talks about losses of about 7 billion euros in 2020, in an area that employs 400 thousand people, ie 7% of Romanias active workforce, and produces 5 percent of the Gross Domestic Product. (M.I.)


  • Regulating alternative taxi services

    Regulating alternative taxi services

    A draft government emergency
    ordinance on regulating ridesharing activities in Romania has been put up for
    public debates. After talks that lasted for several days, representatives of
    alternative transport companies announced that on Thursday they reached an
    agreement with government representatives concerning the emergency ordinance
    draft on field applications in Romania.








    The new regulations will assure
    equal authorization conditions between alternative transportation applications
    and taxi companies. Under the document, application owners will have to obtain permits
    from the Communication Ministry, while partner drivers will have to comply with
    technical and legal requirements similar to those of taxi drivers.








    The permit becomes valid after the
    operator has paid an authorization fee of 50,000 RON to the field ministry. The
    operator will also have to obtain a permit for alternative transport from the
    territorial agency of the Romanian Road Transport Authority in their residing
    county or city.








    Alternative transport permits are issued
    for a period of 3 years after the alternative transport operator has paid a fee
    of 300 Ron. The vehicles involved in this alternative transport activity must
    meet several conditions also. They must have 5 seats at the most and the
    periodical vehicle inspection (ITP) done every six months. These vehicles must
    also meet the technical norms required by road traffic safety and environmental
    protection. Drivers of these vehicles must be
    ready to produce a copy of the alternative transportation permit and the
    vehicles accepted by the digital platform must bear on their windshield a badge
    with the vehicle’s registration number and the platform’s name.








    The document also stipulates that
    drivers unable to produce a copy of the permit will be subject to fines. Hundreds
    of thousands of people have signed a petition for the emergency regulation of
    ridesharing services in Romania. According to them the absence of these regulations
    have caused thousand of drivers to lose their incomes while 2.5 million users
    are either unable to find a vehicle or must pay extra prices for this service.








    This emergency ordinance draft has
    been issued after alternative transport companies called on the government to
    regulate these services in order to be able to function properly in the future.
    Taxi companies in Romania, which have so far attracted a lot of heat for the
    poor services they offer, are blaming the ridesharing companies for functioning
    illegally.






    (translated by bill)

  • April 4, 2018 UPDATE

    April 4, 2018 UPDATE

    MEDIA The Chamber of Deputies in Bucharest on Wednesday passed a draft that completes the Audio-visual law and under which radio and television stations in Romania must broadcast two advertisements of public interest. These are: “For a healthy economy, buy products made in Romania!” and “For a healthy environment, teach children to respect nature!” These two advertisements are to be broadcast free of charge without being included in the legal time slot allotted to commercials. The category of public interest announcements and advertisements also includes those referring to dangerous hydro-meteorological phenomena issued by the national authorities in the field. The draft will be submitted to the Senate for approval.





    SURVEY According to a survey published in Chisinau on Wednesday, Russian president Vladimir Putin and Romania’s former president Traian Basescu are the political personalities abroad electorate in the ex-soviet Romanian-speaking Republic of Moldova trusts the most. Putin comes first in the survey with 55% of the respondents being followed by Basescu with 44%. At the opposite pole there are Ukrainian president Petro Poroshenko, former Georgian leader Mikheil Saakashvili as well as the presidents of the United States and France, Donald Trump and Emmanuel Macron respectively. The survey was carried out by the Moldovan Center for Sociological Research over March 10th and 27th.





    CENTRAL BANK The National Bank of Romania On Wednesday decided to maintain the monetary policy interest rate at 2.25%, against the expectations of most analysts, who anticipated an increase in figures. The central bank also decided to maintain the earned deposit interest rate at 1.25% per year and the credit interest rate at 3.25% per year. The Board of Directors of the National Bank of Romania also decided to maintain the current level of the mandatory minimum reserves for liabilities in the national currency, the leu, as well as in hard currency for crediting institutions.





    MOTION The simple motion initiated by the National Liberal Party, in opposition, against the Culture Minister, George Ivaşcu, was rejected on Wednesday in a plenary session of the Chamber of Deputies with the Romanian Parliament, just a day after the document had been debated in a plenary session of Parliament. The Liberals deplore what they call negligence in preparing the events devoted to the 100th anniversary of the Great Union and voice concern about the Government’s inability to properly organise the December 1 celebrations. They also say a public debate meant to find solutions and reconsider a national plan devoted to the Great Union Centennial is needed. In response, the Culture Minister, George Ivaşcu, gave assurances that he is constantly concerned about how to efficiently organise the celebrations devoted to all Romanians.