Radio România Internațional

Tag: energy prices

  • November 11, 2022

    November 11, 2022

    ENERGY -
    The Government on Friday passed an emergency decree capping centralized
    purchases of electricity at some 90 EUR/megawatt. The Government thus wants to
    protect end users and the economy as a whole. Prime Minister Nicolae Ciucă explained that electricity
    prices are capped at 0.68 Lei for household users with a total monthly
    consumption under 100 kilowatts, at 0.80 Lei for household users with a total
    consumption between 100 and 255 kilowatts per month, and at 1 Leu for SMEs.
    Parliament will also pass a number of amendments whereby electricity prices
    will be set at 1.3 Lei for large energy consumers. Household users with electricity
    consumption above 255 kilowatts are also targeted by this measure, although the
    price for the first 255 kilowatts will be 0.80 Lei. The provisions are
    temporary and apply starting next year until March 31, 2025.




    PEACE FORUM
    – Paris plays host to the fifth edition of the Peace Forum. Amidst multiple crises,
    the forum this year focuses on hot topics on the global agenda, such as
    geopolitical conflicts with global effects, the growing impact of climate
    change, the waves of COVID pandemic and growing social inequality. Representing
    Romania will be president Klaus Iohannis, who will address the consequences of
    the Russian aggression in Ukraine on European and global security and in a
    number of fields, as well as the impact of the war on post-pandemic recovery
    efforts and other global priorities, such as combating climate change.




    INFLATION
    – The European Commission has upgraded its forecast on Romanian economic growth
    this year, from 3.9% in July to 5.8% this autumn. After a solid 2022, Romanian
    economy is expected to slow down by 2% in the following years, due to soaring
    inflation, the difficult financial context and the economic fallout from the
    war in Ukraine. According to the Commission, inflation is expected to peak at the
    end of 2022 and remain high over the course of 2023, before starting to drop in
    2024. On Friday, the National Statistics Institute announced that the annual
    inflation rate dropped to 15.32% in October, from 15.88% in September,
    considering that prices for foodstuffs went up by 20.58% while prices for
    non-food products increased by 14.37%. Prices for services also went up by
    8.31%.




    BORDERS
    – The fourth checkpoint on the Romanian-Ukrainian border was opened on Thursday
    in a ceremony attended by the Prime Ministers of Romania and Ukraine, Nicolae
    Ciucă and Denys Shmyhal, respectively. The new checkpoint, Vicovu de sus -
    Krasnoilsk, will help facilitate the transit of people and goods between the
    two states , the Romanian Prime Minister said. This is the first checkpoint to
    open since the start of the Russian invasion of Ukraine on February 24. Since
    then, some 2.8 million Ukrainians have entered Romania, most of whom were in
    route to Western Europe. A few thousand filed for and received asylum in
    Romania, benefiting from every right under Romanian law. Some 70,000 Ukrainians
    now have stay permits.




    SCHOOL
    VIOLENCE – School violence is high on the agenda for talks hosted by the
    Education Ministry in Bucharest with representatives of school inspectorates
    and social workers in the education system. The debate is expected to continue
    early next week, involving members of NGOs. The Ministry will analyze proposals
    to improve the legal framework in this field and increase the level of security
    of students and teaching staff. Another
    priority is to identify schooling units that are particularly exposed to acts
    of violence. The Ministry of the Interior will also conduct actions with a view
    to preventing and combating acts of violence and supporting victims of school
    violence. The Ministry of Education launched a video as part of its
    awareness-raising campaign, criticizing the repeated acts of violence in schools
    across Romania over the recent years.




    VETERANS
    – Romania’s president, Klaus Iohannis, today conveyed a message marking the Day
    of Veterans in Theatres of Operations, whom he described as genuine examples
    of devotion for one’s homeland, fighting for national ideals and self-denial
    role models for the future generations. President Iohannis said that Romanian
    servicemen command the respect and devotion of their peers in allied and
    partner states due to their sense of duty and professionalism on the
    battlefield. The Romanian president recalled that, on November 11, 1918, the
    Entente and Germany signed the ceasefire that ended the Great War. On this
    day, we are also grateful to the veterans of the Second World War, as well as
    the servicemen currently engaged in international operations led by NATO, the
    EU, the UN and other coalitions Romania is part of, the head of state also
    said. (VP)

  • Energy, between supply and demand

    Energy, between supply and demand

    The crisis on the energy market is the result of a gap
    between demand and supply, the latter being a lot lower, the vice-president of
    the National Energy Regulatory Authority, Zoltan Nagy-Bege, claims. The
    Romanian says there are two solutions to the problem: expanding the supply from
    cheap sources that should lead to a drop in prices, or lowering the demand,
    which requires energy efficiency measures and eliminating energy waste, both
    for businesses and household consumers. Meanwhile, against the soaring prices
    for gas and electricity, some Romanians decided to buy wood to heat their homes
    this winter. But the price for firewood also went up, exceeding 100 EUR per
    cubic meter.

    The authorities want to cap the price, as they did for gas and
    electricity, but also to ban the export of certain wood products and
    derivatives. The Government will take a decision next week, Environment
    Minister Tánczos Barna says. Foresters associations have disagreed with the
    measure, saying the best solution would be to hand out vouchers to those who
    want to buy wood. In many cases, forestry agencies sell firewood under 100 EUR
    per cubic meter. If the authorities introduce a cap, this would not help
    household consumers. Parliament is also discussing the latest Emergency Decree
    in this field. The cap on electricity prices introduced by the Government is
    not set depending on monthly consumption, but on the average monthly price of
    last year.

    Therefore, as no one provided any explanation as to how the price is
    calculated, some Romanians ended up receiving high bills they can’t explain.
    The government subsidy scheme might undergo a number of changes, hopefully to
    the benefit of the population. The ruling coalition also expanded the list of
    beneficiaries of the current scheme, although it left out farmers. As a result,
    farmers’ associations submitted an open letter calling for lower electricity
    prices. They have warned that, otherwise, price hikes will be inevitable, and
    the domestic market will become fully reliant on external markets. There is
    also a risk that some countries might introduce a ban on exports in the event
    of a global food crisis. (VP)

  • September 3, 2022 UPDATE

    September 3, 2022 UPDATE

    DECREE – Romania’s Energy Minister, Virgil Popescu, wrote on
    social media that the Government’s emergency decree capping energy prices does
    not breach European legislation. Romania’s National Energy Regulatory Authority
    (ANRE) had previously warned that the decree might trigger infringement
    procedures against Romania at EU level. Minister Popescu said that Romania is
    constantly consulting with Brussels in every piece of legislation adopted in
    this field, and that the decree will be presented on September 9 at the
    emergency meeting of EU Energy Ministers in Prague. Virgil Popescu recalled
    that European institutions also want to put an end to the conflicting interests
    and greed of those who speculate the delicate context. Among other things, the
    decree stipulates that any intermediaries who oversell energy across the
    distribution chain will receive fines of up to 5% of their turnover.


    SCHOOL YEAR – Nearly 3 million school and pre-school children
    start a new school year on Monday. The structure of the new year will comprise
    5 modules, separated by 5 mini-holidays. A number of changes will be operated
    starting this year. Mid-term exams will no longer be compulsory, while the
    average grade for the secondary cycle of education in Romania, (grades 5-8)
    will be discarded as a criterion for enrolling in high-schools. At the end of
    the school year, pupils can no longer be expelled, and parents are no longer
    allowed to raise money for presenting teaching staff with gifts. Referring to
    some of the unsolved issues ahead of the new school year, Education Minister
    Sorin Cîmpeanu recognized that many schools lack fire safety permits.


    COVID-19 – The number of COVID-19 cases continues to drop in
    Romania. A little over 1,800 new cases of infection were reported in the last
    24 hours, by 600 less than Friday. 15 people have died during the same
    interval. Most cases – 290 – were reported in the capital-city Bucharest. Over
    2,200 patients are being treated for COVID, 176 in intensive care.


    BORDER CROSSING -
    Some 317 thousand people entered or left Romania on Friday via all border
    crossing points. Some 11,000 Ukrainians entered Romania, down by 5.46% compared
    to the previous day. Therefore, starting February 10, two weeks before the war
    had started, some 2.1 million Ukrainian citizens have entered Romania.


    GAZPROM – European Commissioner for Economy, Paolo Gentiloni,
    on Saturday said the European Union is ready to respond if Russia doesn’t
    resume deliveries via the Nord Stream pipeline, the BBC reports. Commissioner
    Gentiloni has called on Moscow to honor its contractual agreements. Gazprom
    announced that the Nord Stream pipeline would be shut down pending the repair
    of a faulty turbine. The announcement risks spiking concern among EU Member
    States, who are trying to avert an energy crisis in the coming winter and who
    accuse Moscow of using natural gas as a weapon to take revenge for the
    sanctions the West has imposed on Russia in response to the latter’s invasion
    of Ukraine.


    REȘIȚA – Reșița in Western
    Romania is the first Romanian city to join the Learning Cities UNESCO global
    network, giving it a unique opportunity to access large-scale education
    projects, the Romanian Education Ministry announced. According to UNESCO
    Director General, Audrey Azoulay, the selected cities are remarkable examples
    whereby lifelong learning can become reality at local level. The list of new
    members includes 77 cities from 44 countries. Reșița is one of the five cities selected
    from Southeastern Europe, alongside Lasko and Ptuj of Slovenia, and Ljubljana
    and Trnava of Slovakia.


    SWIMMING – Romanian swimmer Rebecca Diaconescu on Friday qualified
    to the 50m backstroke final at the World Junior Swimming Championships in Lima,
    Peru. Romania’s track record includes 5 medals so far: gold in the men’s 4x100m
    freestyle event (David Popovici, Alexandru Constantinescu, Ştefan Cozma,
    Patrick Sebastian Dinu), gold in the 200m freestyle event (David Popovici,
    silver in the 400m freestyle event (Vlad Stancu), silver in the mixed 4×100
    freestyle event (David Popovici, Patrick Sebastian Dinu, Rebecca Diaconescu,
    Bianca Costea) and bronze in the 800m freestyle event (Vlad Stancu). (VP)

  • September 3, 2022

    September 3, 2022

    DECREE – Romania’s Energy Minister, Virgil Popescu, wrote on
    social media that the Government’s emergency decree capping energy prices does
    not breach European legislation. Romania’s National Energy Regulatory Authority
    (ANRE) had previously warned that the decree might trigger infringement
    procedures against Romania at EU level. Minister Popescu said that Romania is
    constantly consulting with Brussels in every piece of legislation adopted in
    this field, and that the decree will be presented on September 9 at the
    emergency meeting of EU Energy Ministers in Prague. Virgil Popescu recalled
    that European institutions also want to put an end to the conflicting interests
    and greed of those who speculate the delicate context. Among other things, the
    decree stipulates that any intermediaries who oversell energy across the
    distribution chain will receive fines of up to 5% of their turnover.


    SCHOOL YEAR – Nearly 3 million school and pre-school children
    start a new school year on Monday. The structure of the new year will comprise
    5 modules, separated by 5 mini-holidays. A number of changes will be operated
    starting this year. Mid-term exams will no longer be compulsory, while the
    average grade for the secondary cycle of education in Romania, (grades 5-8)
    will be discarded as a criterion for enrolling in high-schools. At the end of
    the school year, pupils can no longer be expelled, and parents are no longer
    allowed to raise money for presenting teaching staff with gifts. Referring to
    some of the unsolved issues ahead of the new school year, Education Minister
    Sorin Cîmpeanu recognized that many schools lack fire safety permits.


    BORDER CROSSING -
    Some 317 thousand people entered or left Romania on Friday via all border
    crossing points. Some 11,000 Ukrainians entered Romania, down by 5.46% compared
    to the previous day. Therefore, starting February 10, two weeks before the war had
    started, some 2.1 million Ukrainian citizens have entered Romania.


    GAZPROM – The European Commission has accused the Russian
    giant Gazprom for having suspended its natural gas deliveries to Germany via
    the Nord Stream pipeline in the Baltic Sea under fallacious pretenses. Gazprom’s
    announcement is another confirmation of its unreliability as a supplier and
    proof of Russia’s cynicism, as it prefers to flare gas instead of honoring
    contracts, European Commission spokesman, Eric Mamer, tweeted on Friday.
    Gazprom announced that the Nord Stream pipeline would be shut down pending the
    repair of a faulty turbine. The announcement risks spiking concern among EU
    Member States, who are trying to avert an energy crisis in the coming winter
    and who accuse Moscow of using natural gas as a weapon to take revenge for the
    sanctions the West has imposed on Russia in response to the latter’s invasion
    of Ukraine.


    SWIMMING – Romanian swimmer Rebecca Diaconescu on Friday
    qualified to the 50m backstroke final at the World Junior Swimming
    Championships in Lima, Peru. Romania’s track record includes 5 medals so far:
    gold in the men’s 4x100m freestyle event (David Popovici, Alexandru
    Constantinescu, Ştefan Cozma, Patrick Sebastian Dinu), gold in the 200m
    freestyle event (David Popovici, silver in the 400m freestyle event (Vlad
    Stancu), silver in the mixed 4×100 freestyle event (David Popovici, Patrick
    Sebastian Dinu, Rebecca Diaconescu, Bianca Costea) and bronze in the 800m
    freestyle event (Vlad Stancu). (VP)

  • Energy price capping ordinance reaches Parliament

    Energy price capping ordinance reaches Parliament

    Given the situation caused by the increase in the price on the electricity and natural gas markets at international level, Romanian authorities are looking for solutions, just like the other European states, in order to further help their citizens. After intense debates, the Emergency Ordinance regulating these prices for one year, starting April 1, was approved by the Government on Friday and is to be debated by Parliament next.

    The measure will apply to both domestic and industrial consumers, based on the average monthly energy consumption registered in 2021 and the final prices for natural gas. According to the Minister of Energy, Virgil Popescu, the provisions of this ordinance will benefit eight million households, in terms of electricity, and all households connected to the natural gas network, regardless of consumption. The ruling Social Democratic Party (PSD) and National Liberal Party (PNL) give assurances that the measures adopted by the Executive will have major positive effects on Romanians’ purchasing power and will ensure the predictability of costs next year.

    However, the Save Romania Union (USR) believes that the ordinance blocks investments in the two sectors, and representatives of the Alliance for the Union of Romanians (AUR) say that, through the approved measures, the Government guarantees very high profits for energy companies, providing them with state subsidies. After reaching a consensus on new regulations on electricity and gas prices, representatives of the governing coalition each support other initiatives that they say will ensure an increase in employee income, strengthen the economy or reduce the pressure on inflation.

    PNL proposes to reduce the health insurance contributions from 25% to 20%, as a measure to increase the net salary. The party’s leader, Florin Cîţu, sees it as the only measure that could increase the net income of all employees and that would not represent a cost for companies. According to him, this would have a smaller impact than subsidising energy bills and explains where these amounts could come from.

    Florin Cîţu: From the same place where we get the money for energy bills, only here we are talking about a benefit for all Romanians, money that will be, on the one hand, invested in the economy, and we ‘ll also have money left over from corporate profits. That means about 20 billion lei (n.r. about 4 billion euros) that will stay in the budget.

    USR supports the measure, but the Social Democrats (PSD) do not believe that the proposal is sustainable for the state budget. PSD President Marcel Ciolacu:

    We have asked the Minister of Finance to give us an estimation of the budgetary impact. From my point of view, given the interventions regarding energy, I don’t think it’s sustainable. But maybe those who proposed it have a miraculous formula.

    Instead, the Social Democrats have announced that they want a quick regulation of fuel trade and are calling for measures regarding vehicle insurances, which they say would reduce both transport costs and the inflationary pressure. (MI)

  • The Week in Review – March 14-18 2022

    The Week in Review – March 14-18 2022

    Major meetings in Bucharest


    In the context of the war on Romanias border, President Klaus Iohannis continued this week his series of meetings with Western leaders, as well as presidents from neighboring countries. He reiterated the urgent need to strengthen the entire NATO eastern flank, in the context of this security situation, which the head of state deemed to be very worrying:

    “We urgently need the substantial and balanced consolidation of the entire eastern flank, with forward, unitary, and bolstered presence. Which is why Romania acts to continue to increase allied military presence in our country.”


    Present in Bucharest, Estonian President Alar Karis said that Estonia and Romania are working together towards common goals in the defense of Europe, and that it is necessary to reduce reliance on Russian energy sources. At the same time, Estonia continues to support sanctions against Russia. After meeting the Romanian head of state, Spanish PM Pedro Sanches underlined that the EU must act quickly against rising prices for gas and electricity, and that the governments in Madrid and Bucharest should work together for urgent measures.


    Iohannis also spoke in Bucharest with Bulgarian President Rumen Radev about the grave situation generated by Russias military aggression against Ukraine, as well as about diversifying energy sources and transport routes. The same topics were tackled in talks with Italian Foreign Minister Luigi di Maio. Together they expressed support for passing new sanctions in order to maintain pressure on Russia. Luigi di Maio appreciated the way in which Romania is managing this difficult situation, thanking the country for its solidarity and the support it provides refugees.


    During the meetings in Bucharest, Klaus Iohannis pointed out that the neighboring Republic of Moldova needs support from the EU to be able to handle the influx of refugees. Moreover, during his Wednesday trip to Chisinau, he reiterated Romanias full support for settling politically the Transdnestr situation, with respect for Moldovas sovereignty and territorial integrity within its internationally recognized borders, without hurdles in its pro-European aspirations. Moldovan President Maia Sandu said that she needed support from the partners to overcome the challenges brought about by the war in Ukraine. At the same time, she said she appreciated the prompt decision made by the Romanian authorities to open a green corridor for the transfer of refugees going to the EU straight from the Moldova- Ukraine border.


    Meantime, tens of thousands of refugees are arriving at the border between Ukraine and Romania, mostly transiting west. Since the beginning of the Russian invasion in the neighboring country, the border was crossed by about half a million Ukrainians.



    The authorities are making efforts to support the economy and the population


    In the context of the war on Romanias border, and the speculations that it gave way to, the authorities are discussing the measures needed to support the economy and the population against rising prices for energy, fuel, and food. Agriculture Minister Adrian Chesnoiu assured everyone that there was no risk of a food crisis, or of major imbalances to this effect, and added that Romania may even have the capacity to export. Minister Chesnoiu told Radio Romania that the pandemic and the rising energy and gas prices have affected the entire economy, not just farming:


    “In terms of stocks, Romania is safe. First of all, we have enough food and grain in the state reserves, so that a crisis does not emerge before the new harvest. Major quantities of wheat and sunflower oil are in the stores of farmers and processors, as well as in storage with grain traders, and this will cover our consumption needs until the new harvest.”

    On the governing coalition agenda this week there was eliminating VAT for foodstuffs, setting a ceiling on energy prices, and reducing fuel excises. The executive announced it would prolong by another year the measures to support the population, including said ceiling on energy and gas prices.



    Rising in COVID cases in Romania


    After the state of alert was lifted on March 9, no restriction against COVID is in effect anymore, and no rule is being imposed to prevent the spread of the coronavirus. Infections are on the rise after more than a month of an descending trend. Thousands of cases have been recorded per 24 hours. The authorities announced that the same situation has been noted in other European countries too, after the lifting of restrictions, but without a significant increase in the number of grave cases or deaths associated with the virus. The number of patients in hospitals is going down to half compared to the first part of the month, but a few hundred people are still in the ICU, diagnosed with COVID-19, while the number of deaths is a few dozens.




    Inflation is on the rise


    Considering that prices have been going up for the last month in Romania for all types of foodstuffs, non-food items, and services, the annual rate of inflation went up to over 8.5 percent, according to the National Institute of Statistics. The experts say that the effects of inflation will be felt by the population in terms of income, as well as by the economy at large, which continues to be largely consumption based. National Bank spokesperson Dan Suciu remarked that this is a general phenomenon, and that the rise is relatively small compared to last month, and significantly lower than in other countries in the region. According to Suciu, Romania is now at the half of the list of EU countries, considering that last year it had the highest inflation.



  • New measures to cap energy prices

    New measures to cap energy prices

    The Government has introduced new measures to help
    household consumers and SMEs cope with the increase in energy prices. The
    measures will take effect only over the next two months. By means of an
    emergency decree, the Government introduced a new quantum of fines that
    authorities can hand out to energy distributors who miscalculate bills, of up
    to 40 thousand Euro. The law also comes with a new formula for subsidizing and
    capping energy bills, applicable to citizens and businesses. The measures
    cannot be applied in retrospect for the month of January, as PSD requested.
    According to an approval issued by the Justice Ministry, household users will
    be given larger subsidies, of up to 0.291 lei per kWh and up to 40% of the
    price for natural gas. At the same time, the price for both electricity and
    natural gas will be capped. Prime Minister Nicolae Ciucă explains:


    Household users will pay a maximum of 80 bani for
    kWh and 31 bani for natural gas, irrespective of consumption. If household
    consumption is below 500 kWh or 300 m­3 of gas, users will pay 68
    bani per hWh and 22 bani for m­3 of gas, with all taxes included.


    In turn, Energy Minister Virgil Popescu explained
    how energy bills are calculated while factoring in the new subsidy and capping
    regulations.


    When consumption stood at 500 kWh prior to
    increasing the ceiling, people paid 1 Leu per kWh. Now that the ceiling has
    been decreased, people will pay 80 bani or 68 bani, wherever the discount
    applies. The total value of the bill stands at some 300 Lei.


    The Government decree also provides for discounts
    for non-household users, for whom prices will be capped at 1 Leu for
    electricity and at 37 bani for natural gas. The measures don’t apply to large
    energy consumers, for instance heating power plants, which will be provided
    with state aid under a programme approved by the European Commission. The
    Government hasn’t yet decided what will happen starting April 1. The new
    measures will be discussed at the level of the ruling coalition. Some lawmakers
    have suggested a rollback to the regulated market for a few months. Many
    Romanians have recently complained about excessively high electricity and gas
    bills, after part of the distributors did not apply the new cap and subsidy
    standards, which came into force on November 1, 2021. (VP)

  • January 18, 2022 UPDATE

    January 18, 2022 UPDATE


    COVID-19 – The authorities on Tuesday announced 16,760 new COVID-19 infections, double the number reported on Monday, in addition to 70 related fatalities. Bucharest has reached an infection rate of 6.15 cases per thousand and is now in the so-called red zone with a high incidence rate. With 8 million people vaccinated so far, Romania ranks second at EU level after Bulgaria in terms of the lowest percentage of people vaccinated against COVID-19.




    ENERGY – On February 1, the government in Bucharest is expected to endorse new measures aimed at capping electricity and gas prices. The aforementioned measures will be promoted through an emergency decree to be passed next week at the latest. Romanias Prime Minister Nicolae Ciucă on Tuesday held talks with energy suppliers who, according to government sources, have agreed to newly announced measures for subsidizing and capping energy prices, pledging to write off and reissue the bills that have been wrongfully reported so far. The Prime Minister on Monday announced that following an agreement of the ruling coalition made up of PNL, PSD and UDMR, prices for gas and electricity would be capped and the consumption limit extended.




    MOLDOVA – A Romanian-Moldovan joint government session will be held on February 12, 2022 in Chișinău, Moldovan Prime Minister Natalia Gavrilița has announced. In December last year, Prime Minister Gavrilița paid an official visit to Romania, meeting her Romanian counterpart, Nicolae Ciucă. The Republic of Moldova and Romania are consolidating their robust bilateral cooperation, the Romanian official said at the time, recalling that Romania is Moldovas top trade partner and insisting on the need for this country to improve its business sector so as to attract more Romanian investors. The interconnection of the two countries road infrastructure and reducing tariffs are high on the Romanian Governments agenda. According to Natalia Gavrilița, the absolute priority for Moldova is the interconnection of the two countries energy grids by 2024, which would consolidate the independence and security of the Republic of Moldova.




    EU – Maltese center-right MEP Roberta Metsola was elected president of the European Parliament on Tuesday. Metsola, who won 458 votes out of the total of 616, had an absolute majority, avoiding the need for a second round of voting. A member of the European Peoples Party, Metsola succeeds Italian Social Democrat David Sassoli who died last week at the age of 65. Sassoli was a highly appreciated Italian politician and journalist, a supporter of the EU, who firmly campaigned for human rights observance around the world, Romanian MEP Eugen Tomac says. A vocal critic of the abuses committed by Russian president Vladimir Putin, in 2021 Sassoli was barred from entering Russia in response to the EU sanctions imposed to some Russian officials. Sassoli was also a supporter of the EU integration efforts of the Republic of Moldova.




    NATO – NATO Secretary General, Jens Stoltenberg, and Germanys Chancellor, Olaf Scholz, on Tuesday ruled out a military response to a potential Russian aggression against Ukraine. It will mean high political costs for Russia should there be such an intervention and should the principle of sovereignty of states and the integrity of borders be violated, Chancellor Scholz argued. In turn, Jens Stoltenberg said NATO has also made it clear that Russia will pay a high political and financial cot should it choose the path of “violence”. The NATO official went on to say that, right now, there are certain NATO member states that have expressed their readiness to supply weapons to Ukraine, arguing however that the views on this matter vary across the NATO bloc. Although it has rallied a sizable military force on the Ukrainian border, Russia has denied allegations over its planned invasion. Last week, talks between Moscow and Washington over the future European security framework yielded no result, the Americans having dismissed Russias requests as unacceptable. Moscow has called on NATO to rule out any eastward enlargement, particularly in the case of Ukraine, to cease all cooperation with ex-Soviet countries and to cancel all maneuvers and troop deployments in Eastern Europe.




    TENNIS – Tennis player Simona Halep has qualified to the second round at the Australian Open, after a straight-set win, 6-4, 6-3, against Magdalena Fręch of Poland. A former world no. 1, Halep took one hour and 29 minutes to defeat the Polish challenger. Five Romanian tennis players have so far advanced to the second round: Simona Halep, Sorana Cîrstea, Irina Begu, Gabriela Ruse and Jaqueline Cristian. The sixth Romanian player in the main draw, Irina Bara, was knocked out in the competitions opening round. (DB & VP)


  • Effects of the energy price hikes

    Effects of the energy price hikes

    Romania is one of the hardest-hit
    countries in the context of the soaring energy prices. Starting January 1, 2022,
    the energy market was liberalized, but for the last six months the authorities’
    faulty communication has generated chaos and difficulties for household users.
    Starting this summer, electricity and natural gas prices have skyrocketed. At
    the end of the 2021, electricity prices were capped for household users, and
    part of the energy bills are now state-subsidized until March 31, 2022. Until
    then, the ruling coalition will analyze whether it needs to improve the
    legislation, Energy Minister Virgil Popescu told Radio Romania. The Social-Democrats
    have criticized the current legislation, promoted by Minister Popescu and
    adopted by the former Parliament majority. The Social-Democrats now want to
    hand out vouchers to vulnerable consumers, simplify payment procedures for
    compensations awarded to energy distributors and expand the state assistance
    scheme for economic operators. Referring to industrial consumers, Minister
    Virgil Popescu says the government has also helped them overcome various issues
    linked to the recent price hikes:


    Industrial energy
    consumers do not benefit from the current law, but we had another assistance
    package, completed last year, whereby they were awarded 140 million Euro. ALRO
    Slatina, for instance, received a payment of 390 million lei in October as
    state aid. Azomureș, in turn, received 125 million lei, and these are but two
    examples of large companies that claimed the soaring prices make their activity
    unsustainable. We understand their problems.


    Still, the ALRO Complex,
    the only producer of aluminum and alloys on the Romanian market and the largest
    in Central and Eastern Europe (with the exception of Russia), decided to stage
    a protest, after the board decided to cut back on production due to the energy
    crisis. Their trade union says over 1,000 employees risk being put on furlough,
    yet the effects may run much deeper, because ALRO works closely with other
    enterprises, impacting their activity as well. The aluminum factory in Tulcea
    also staged a protest, reducing production. People fear they will lose their jobs
    and have called on the authorities to intervene, so that industrial energy
    consumers may benefit from equitable prices. (VP)

  • Economic forecasts for Romania

    Economic forecasts for Romania

    The
    European Commission has slightly lowered its economic growth forecast for Romania.
    Therefore, our country’s economic growth is expected to stand at 7%, compared
    to the original estimate of 7.4% presented in July. The Commission expects
    Romania’s GDP to exceed the level reported before the pandemic and to continue
    to expand in the future to approximately 5%, fueled by domestic consumption and
    investments under the Recovery and Resilience Plan. Economic growth is
    endangered by the low rate of vaccination, travel restrictions that might
    affect consumption and possible delays in implementing the National Recovery
    and Resilience Plan. EU Economy Commissioner, Paolo Gentiloni, warned that
    growth prospects at EU level are put at risk by the increasing number of
    infections in countries with low vaccination rates.



    The EU official also
    referred to a growing pressure on production in Member States due to deadlocks
    reported in global distribution chains. Romania fares slightly better compared
    to other EU states in terms of economic growth. Conversely, its inflation rate
    is above the EU average, whereas unemployment will go down less compared to
    other states. The Central Bank recently announced the inflation rate last month
    reached nearly 8%, the highest level reported in the last 13 years. The price
    hikes for energy and fuel, by nearly 25% higher compared to October 2020, have
    increased prices across the board, and the trend will continue into the second
    half of next year, the Central Bank and economic experts have warned. Next
    month, the inflation rate is expected to stand at 7.5% and will reportedly go
    down to 5.9% at the end of next year. The Central Bank says these estimates exceed
    the forecast present in August due to the latest energy price hikes. Central
    Bank spokesman, Dan Suciu, referred to the future evolution of prices:




    Price
    hikes are largely behind us now. That doesn’t mean we will see prices going
    down soon. Where prices will go up, the increase will be marginal. The
    inflation rate will continue to grow constantly until the end of 2021, and will
    start dropping slightly until April, due to compensations, energy subsidies expected
    to take effect starting November 1, and whose effects will start to show in
    April. But again, the difference will be marginal.


    Last
    month, natural gas reported the highest increase compared to the previous month,
    over 21%. The only category that reported a significant drop in prices was air
    travel, over 16%. (VP)



  • Economic forecasts for Romania

    Economic forecasts for Romania

    The
    European Commission has slightly lowered its economic growth forecast for Romania.
    Therefore, our country’s economic growth is expected to stand at 7%, compared
    to the original estimate of 7.4% presented in July. The Commission expects
    Romania’s GDP to exceed the level reported before the pandemic and to continue
    to expand in the future to approximately 5%, fueled by domestic consumption and
    investments under the Recovery and Resilience Plan. Economic growth is
    endangered by the low rate of vaccination, travel restrictions that might
    affect consumption and possible delays in implementing the National Recovery
    and Resilience Plan. EU Economy Commissioner, Paolo Gentiloni, warned that
    growth prospects at EU level are put at risk by the increasing number of
    infections in countries with low vaccination rates.



    The EU official also
    referred to a growing pressure on production in Member States due to deadlocks
    reported in global distribution chains. Romania fares slightly better compared
    to other EU states in terms of economic growth. Conversely, its inflation rate
    is above the EU average, whereas unemployment will go down less compared to
    other states. The Central Bank recently announced the inflation rate last month
    reached nearly 8%, the highest level reported in the last 13 years. The price
    hikes for energy and fuel, by nearly 25% higher compared to October 2020, have
    increased prices across the board, and the trend will continue into the second
    half of next year, the Central Bank and economic experts have warned. Next
    month, the inflation rate is expected to stand at 7.5% and will reportedly go
    down to 5.9% at the end of next year. The Central Bank says these estimates exceed
    the forecast present in August due to the latest energy price hikes. Central
    Bank spokesman, Dan Suciu, referred to the future evolution of prices:




    Price
    hikes are largely behind us now. That doesn’t mean we will see prices going
    down soon. Where prices will go up, the increase will be marginal. The
    inflation rate will continue to grow constantly until the end of 2021, and will
    start dropping slightly until April, due to compensations, energy subsidies expected
    to take effect starting November 1, and whose effects will start to show in
    April. But again, the difference will be marginal.


    Last
    month, natural gas reported the highest increase compared to the previous month,
    over 21%. The only category that reported a significant drop in prices was air
    travel, over 16%. (VP)



  • September 29, 2017

    September 29, 2017

    PRESIDENCY — Romania’s President, Klaus Iohannis, is today in Tallinn, Estonia, to attend an informal meeting of the European Council. According to the Presidential Administration, the head of state will also stand for paying importance to the digital strategy of the EU’s domestic market and for the need to ensure proper cyber security. The meeting has been preceded by an official lunch, during which French President, Emmanuel Macron, presented the other European leaders his plan of reforming the Union. Macron proposes to set up, in the following weeks, a so-called group for the reconstruction of Europe.



    PROTESTS – The Romanian health federation “Solidaritatea Sanitara” (Solidarity for Health) on Friday continued to picket the Labor and Health Ministries, for the second day in a row. They announced that on October 4th, trade unions will gather for a large protest in Bucharest, before the Government headquarters. The rally is organized by the Cartel Alfa National Confederation. Trade unionists fear of massive drops in the incomes of most employees in the health-care sector, of up to 60%, as of January 1st 2018. Trade unions took to the streets after authorities announced that social fees would become employees’ responsibility. They say that transferring the responsibility of paying social contributions from employers to employees will lead to a drop in the net incomes, the dismantling of the unemployment fund and lower contributions to the pension fund. During Thursday’s meeting between representatives of the trade unionists and Health Ministry officials, the standpoint of the protesters was accepted by the authorities, the vice-president of the “Solidaritatea Sanitara” Federaiton, medical doctor Florin Chirculescu said. Employees of the Ambulance Service also joined the protests on Thursday, being discontent about the shortage of personnel and the poor technical condition of their old car fleet.



    ENERGY — Electricity prices in Romania will increase by 0.75 Euros/ 100 kilowatts, on an average, as of October 1st,the National Energy Regulatory Authority, ANRE, has announced. ANRE also says gas prices may increase by 6% for domestic consumers, also as of October 1st.



    MEETING — The leaders of the Social Democratic Party, the main ruling party in Romania, are today meeting in Sucevita, in the north-east for the monthly assessment of the activity carried out by the cabinet led by Mihai Tudose. The agenda of the meeting also includes several important projects, such as the pension law, the prevention law and the administrative Code. The party president, Liviu Dragnea, has ruled out a government reshuffle.



    RESCUE — A Romanian ship has rescued from drowning 52 people, among which 19 children, in the Aegean Sea, the Coast Guard announced on Friday. Those rescued were coming from Syria, Iran and Afghanistan. The ship was on a patrol mission, as part of the Operation POSEIDON 2017 carried out by FRONTEX — the agency which secures the EU’s external borders. Since the start of the year, Romanain ships have contributed to the rescue of over 1,100 people from Greece’s territorial waters, the Coast Guard says.



    FOOTBALL — Romania’s football vice-champion, FCSB (former Steaua Bucharest) has defeated the Swiss team of Lugano, 2-1, in the second match of Europe League Group G, played on Thursday, away from home. In the first match, the Bucharest –based team defeated the Czech team Viktoria Plzeň, 3-0. On Thursday, the Czech team defeated Israel’s Hapoel Beer Sheva, 3-1. FCSB ranks first in the group with 6 points, followed by Viktoria Plzen and Hapoel, with 3 points each. Lugano is last in the group with no point.