Tag: energy

  • Romania’s gas reservoirs are full

    Romania’s gas reservoirs are full

    The gas level at Romania’s storage
    facilities presently stands at 100.6%, which means that our gas reservoirs are
    full to the brim, Minister of Energy, Sebastian Burduja, has recently announced
    in Bucharest


    With the quantities to be produced in
    the following months and because this winter is going to be warmer like in
    recent years, Romanians could make it to spring without needing to import more
    gas. In fact, Romania managed to fill its gas reservoirs although its gas
    imports were 16% lower in the first eight months of the year as compared to the
    similar period in 2022.


    According to Burduja, several
    scenarios are being considered for the cold season, including one in which
    Romania can support the neighboring, ex-soviet Republic of Moldova, or Ukraine,
    invaded by the Russian troops. According to the political analysts in Chișinău,
    in spite of an energy blackmail from Russia, the pro-Western government in the
    Republic of Moldova has already managed, with help from Romania, to avoid a
    deep social and economic crisis. Bucharest supplied Chisinau with electricity,
    while the latter managed to buy enough gas on the international market, which
    it transported through the Iași-Ungheni-Chișinău pipeline, built with Romanian
    and EU logistical and financial support. In a worst-case scenario in which this
    winter were a harsh one and the Republic of Moldova needed support, Minister
    Burduja has mentioned the alternative of importing gas from Azerbaijan or
    buying liquefied gas.


    On the other hand the effects of the
    Middle East conflict are already visible on gas and oil markets around the
    world and the Ministry of Energy intends to manage this situation through a
    series of mechanisms available, which also include the emergency reserves.


    As for the prices, Minister Burduja
    says these depend on many variables at the international level. According to
    specialized media sources, gas prices in Europe on Monday went down by 6.5%
    after last week’s 40 % growth against the favorable weather forecasts and the
    international efforts to keep the Middle East situation under control. For the
    Romanian consumers, the Minister says, the idea of maintaining the cap scheme
    is a wise decision against the present international background, including
    after the war that broke out between Israel and the terrorist Palestinian
    organization Hamas.


    (bill)

  • Measures for gas security

    Measures for gas security

    The Bucharest government approved, in its latest meeting, the update of the emergency plan for the security of natural gas supply in Romania. The Governments spokesman, Mihai Constantin, explained that the measures adopted are aimed at securing energy resources and supporting the population, in order to get through next winter well. He specified that the document complies with European norms and was drawn up based on consultations with the main players on the Romanian natural gas market. The Government will approve, in its next meeting, the measures regarding the level of safety in the functioning of the national energy system. Among the objectives of the winter program is the evaluation of consumption between November 1, 2023 and March 31, 2024, to ensure its quality and safe supply.



    For the first time since the Ministry of Energy has been developing the winter plan, the increasing influence of prosumers in covering consumption at the national level has been considered. A prosumer is a final customer that owns electricity production facilities, including cogeneration, whose specific activity is not the production of electricity. A prosumer consumes, can store, and also sell electricity from renewable sources. The number of prosumers is constantly increasing in Romania. More than 63 thousand prosumers were registered in Romania at the end of April, according to data provided by the National Energy Regulatory Authority.



    In his turn, minister Sebastian Burduja, said that Romania is ready to face the next cold season, the gas deposit being almost 90% full. This means that the country will successfully get through a normal winter season, relying exclusively on gas from domestic production and the available Romanian gas stocks.



    As regards consumers, Minister Burduja said that the Government has no plans to give up the compensation-ceiling scheme applied to gas and electricity, at least until the spring of next year. The capping and compensation measures entered into force on November 1, 2021, both for domestic consumers and for business operators, after prices had exploded internationally and many Romanians had received very high gas and electricity bills. The conflict that erupted in February 2022, after Russia attacked Ukraine, brought new turbulence to the energy market. (EE)





  • August 19, 2023

    August 19, 2023

    DECISION – Romania plans to ensure the transit of more than 60% of the Ukrainian grain exports to the international market in the future, Romanian Prime Minister Marcel Ciolacu said after Friday’s meeting, in Bucharest, with his Ukrainian counterpart Denys Şmyhal. The two officials decided that in the upcoming period, the grain transit from Ukraine to the international market, via Romania, to be doubled, from two to four million tons per month, but with the protection of Romanian farmers. Two accords were also signed during the meeting, one regarding the mutual recognition of documents of study and another one for the opening of a new border checkpoint between the two states, in Sighetul Marmaţiei, in the county of Maramures.



    ENERGY – Helleniq Renewables, a Greek subsidiary of one of the main energy groups in South-Eastern Europe, Helleniq Energy Holdings, has signed a contract for the construction of four photovoltaic parks in Romania, with a total capacity of 211 megawatts. The agreement was signed with Mytilineos Energy. The projects will be gradually developed until 2025, and the total annual production of renewable energy will be cover the needs of 100,000 households. In parallel, Helleniq Renewables signed another agreement, for the development of a portfolio of photovoltaic parks with a capacity of 600 megawatts, also located in Romania, in the southern part of the country.



    MUSIC — Găesti, the hometown of the famous Romanian musician Gheorghe Zamfir hosts the 5th edition of the “Gheorghe Zamfir” International Music Festival under way until Sunday evening. Symphonic pop and classical music have been scheduled for today, as well as concerts by musicians Aydin Yavas (Turkey) and Jean-Luc Faraux (France). On Sunday, a folk music concert will be held, with the participation of the “Lautarii” Orchestra, from Chisinau, conducted by Nicolae Botgros. Maestro Gheorghe Zamfir will take the stage of the festival on both days. An internationally renowned musician, composer, conductor, poet and painter, Gheorghe Zamfir is a symbol of Romania.



    EUROSTAT – Romania registered in June the most significant advance in the European Union in the field of construction works, of 3.6%, followed by Sweden and the Czech Republic, according to the European Statistics Office. At the opposite end are Germany, France, Slovakia and Hungary. Eurostat data also shows that construction works decreased in June by 1% in the eurozone and by 0.6% in the European Union, compared to the previous month, when a slight advance was registered.



    SCHENGEN — Austria continues to oppose the accession of Romania and Bulgaria to the Schengen area. The subject was on the agenda of Fridays meeting, in Salzburg, between Austrian chancellor, Karl Nehammer and German chancellor, Olaf Scholz. While Vienna rejects the bid of the two countries motivating its stand with the increasing flow of migrants, the German chancellor reiterated that Berlin supports “the continued development of the EU, and this includes the fact that EU member countries can join the Schengen Area”. The Austrian chancellor also said that the Schengen system has structural deficiencies and recalled that last year more than 75% of those over 120 thousand asylum seekers in his country had not been registered.



    UKRAINE — The Kyiv authorities have hailed the US decision to allow the delivery of F-16 aircraft to the Ukrainian army. The US-made aircraft will be delivered by Denmark and the Netherlands, once Ukrainian pilots are ready to fly them. “What we did this week is formalized, through a letter from Secretary of State Antony Blinken to his counterparts in Europe, that upon the completion of that training, the United States would be prepared, in consultation with Congress, to approve third-party transfer of F-16 aircraft to Ukraine,’’ Jake Sulliven said. (EE)


  • The price of energy, capped again

    The price of energy, capped again

    The Bucharest government has decided that energy prices will be capped this winter as well, as it was the case last season. Meanwhile, the Ministry of Energy must prepare, as soon as possible, the program for the cold season and present it to the government. Prime Minister Marcel Ciolacu has asked the relevant ministries to prepare the energy program for the winter, both for the population and for companies, and to present it to the executive


    Government Spokesperson, Mihai Constantin:


    Prime Minister Marcel Ciolacu has asked the ministries to prepare the provision of energy in the cold season for the population and for economic production. Also, today an emergency ordinance was approved which ensures the settlement of some payments for energy suppliers, so that the system will continue to be perfectly functional, with capped prices for citizens, as it is today.



    Two years ago, energy prices began to rise spectacularly, worldwide, affecting both domestic and non-domestic consumers. The growth started following the COVID-19 pandemic and growing international demand. In 2022, Russia’s war against Ukraine and its unilateral decision to suspend gas supplies to some EU member states deepened the crisis, leading to record highs in energy prices. However, there are signs of stabilization this year, partly due to the policies and interventions of EU governments.After international prices fell, this trend is also observed in terms of electricity production.



    In this context, the European Commission and the World Bank have recommended that Romania give up capping energy prices, in order to balance public finances and comply with fiscal rules in 2024. In the country, electricity and natural gas prices have been capped since November 1 2021, due to the liberalization of the line market starting July 1, the same year.Those who benefited most from this capping were those with low consumption. Thus, currently, for electricity, there are ceilings of 68 bani (about 13 eurocents) and 80 bani (about 16 eurocents) per kilowatt hour for low (0-100 kWh) and medium consumption (100-255kWh) respectively. Those who consume more, that is over 300 kilowatt hours, benefit from a capped price of 1.3 lei (26 euro cents).



    Also, small and medium-sized enterprises, the food and pharmaceutical industry, community services and places of worship pay 1 leu per kWh (about 20 eurocents). Regarding the price of natural gas, it remains the same as before – household customers pay 31 bani (about 6 eurocents) per kilowatt-hour, and non-household customers pay 37 bani (about 7 eurocents). (MI)

  • August 10, 2023 UPDATE

    August 10, 2023 UPDATE

    INDICTMENT The General Prosecutor’s Office in Romania on Thursday made
    public the indictment prepared by the military prosecutors, under which 16
    gendarme officers and non-commissioned officers had been indicted for their
    intervention in the anti-government meeting on August 10th 2018 in
    Bucharest. The Document shows the forceful intervention of the gendarmes
    against the peaceful protesters was illegal and unjustified. At the same time,
    the use by the gendarme troops of rubber sticks, pepper sprays, shields and
    other non-lethal weapons like stunt grenades and tear gas could be considered inhuman
    and degrading treatment. According to the document, there were clashes between
    the gendarmes and protesters in which the former were wounded but the situation
    on the ground did not justify a forceful intervention against the larger mass
    of peaceful protesters, which included women, children and older people. We
    recall that the General Prosecutor’s Office has brought to court high-ranking officers
    of the Gendarme troops that time for forgery and abusive conduct.












    ENERGY Energy prices in Romania will be
    capped this winter as it happened last season, Romanian Prime Minister Marcel
    Ciolacu said on Thursday. He called on the field ministries to prepare for the
    winter to come and make sure they are able to provide energy to the population
    at the capped prices, as they are now. During the government session on
    Thursday a law was endorsed providing for subsidizing some payments to energy
    suppliers so that the system may continue to be functional. Also on Thursday,
    the Executive endorsed another law allowing the citizens who obtained driving
    licences in other countries to get their Romanian equivalent following a
    driving exam without taking driving lessons as it was under the previous
    law.








    INFLATION The National Bank of Romania expects a slightly higher
    inflation towards the end of this year than it anticipated a few months ago.
    According to the new forecast presented, on Wednesday, by the governor of the
    Central Bank, Mugur Isărescu, towards the end of the year, inflation could
    reach 7.5%, up from the initial forecast of 7.1%, to then drop to 4.4% at the
    end of next year. According to Mugur Isărescu, economic growth shows
    signs of slowing down, as does consumption.






    DAY The
    Turkish corvette TCG ‘Kinaliada’ will make a stopover in the port of Constanţa,
    between August 12-16, to participate in the Romanian Navy Day, alongside
    Romanian military and civilian ships, informed the General Staff of the Naval
    Forces. On Tuesday, August 15, the Turkish corvette will join Romanian military
    ships at sea, participating in demonstration exercise ‘Romanian Naval Forces
    23’. It will consist of elements of reconnaissance-diversion, repelling the
    attack of enemy aviation, searching for and attacking an enemy submarine,
    repelling a maritime landing, combating illegal migration at sea. The Guard of
    Honor, set up on the seafront in front of the Fleet Command, will be made up of
    military platoons from France, the USA, Turkey, the 30th Guards Brigade ‘Mihai
    Viteazul’ and the Romanian Naval Forces. The evening of August 15 will end with
    the torchlight retreat of the sailors and a fireworks and drone show, which
    will mark the end of the 121st anniversary of the Romanian Navy.


    (bill&MI)

  • June 24, 2023 – UPDATE

    June 24, 2023 – UPDATE

    PRICES
    Romania is the EU member country with the smallest prices for foodstuffs and soft
    drinks, according to the European Statistics Office. Specifically, in Romania, such
    products were nearly 30% cheaper than the European average. In fact, Romania
    also saw the lowest levels of household end consumer prices. At the opposite
    pole, Ireland, Denmark and Luxembourg are the most expensive countries to live
    in. The most significant differences were in terms of alcohol and tobacco
    prices-such products are over 3 times more expensive in Denmark compared to Bulgaria.
    The latter country also reports the lowest prices in the hospitality industry.


    ENERGY The European Commission approved the takeover
    of the Romanian operations of the Italian utilities group Enel by the Public
    Power Corporation (PPC) in Greece. The EC reached the conclusion that the
    takeover raises no competition concerns, given that the operations of the 2
    companies do not overlap. Enel announced in March it would sell its Romanian
    operation to PPC for EUR 1.26 bln, in a plan to reduce debt and focus on green
    energy. Enel group, which operated in Romania since 2005, is currently a major
    player in energy supply and distribution, in renewable energy and advanced
    energy services. It services over 3 million consumers in 3 major regions in
    Romania. With the takeover completed, the Greek group Public Power Corporation becomes
    the largest player in the electricity market in South-Eastern Europe.


    BLOUSE The Romanian blouse was celebrated this year as
    well on 24 June, both in the country and in Romanian communities around the
    world. The Universal Day of the Romanian Blouse is a cultural diplomacy
    instrument and a means to promote Romanian culture and traditions. The country
    hosted events devoted to the traditional blouse, ia, including an Art Safary
    exhibition of folk costumes in Bucharest, screenings and creative workshops for
    children, as well as a fashion show featuring the traditional blouse as a street
    wear element. Some museums, including the Ethnography Museum in Braşov and ASTRA
    Museum in Sibiu, received visitors free of charge if they came dressed in
    traditional blouses. Last year the Romanian blouse was included in the UNESCO Heritage list.


    THEATRE
    The central Romanian city of Sibiu, a European capital of culture in 2007, is
    hosting the International Theatre Festival, currently in its 30th
    year. This year’s theme is Miracle.
    Until 2 July, 825 indoor and outdoor events
    will take place, bringing together some 5,000 artists and guests from 75 countries.
    All the outdoor performances are free of charge. The festival also keeps its
    online section, which includes 40 shows. The official opening took place on
    Friday night, with the play A Cathedral Full of Organs staged at the Lutheran
    Cathedral of St. Mary in Sibiu.


    HOLIDAY Orthodox and Greek-Catholic
    Christians celebrated on Saturday the Nativity of St. John the Baptist, the
    last Old Testament prophet. St. John the Baptist was born 6 months before Jesus;
    he urged people to repent their sins and baptised them in the River Jordan. John
    also baptised Jesus, presenting him to the world as the Messiah. The Christian
    feast day of St. John the Baptist overlaps a pre-Christian tradition in which
    24 June was devoted to the Sânziene, gentle fairies believed to bring fertility
    and wealth.


    ROWING Romania’s Cătălin Chirilă won the silver in the men’s canoe single
    500m final on Saturday at the European Games in Krakow-Malopolska (Poland). This
    was the 4th medal for Romania, after Bianca Ghelber won the silver in
    the hammer throw event, athlete Andrea Miklos won the bronze in the 400 m race,
    and Ştefan Comănescu also came in 3rd at the 67 kg kumite.
    Romania takes part in the European Games in Krakow-Malopolska, between 21 June
    and 2 July with 150 athletes in 18 disciplines. (AMP)

  • May 12, 2023 UPDATE

    May 12, 2023 UPDATE

    GOVERNMENT The Government of Romania passed an emergency
    order on rebalancing the state budget, in a special meeting on Friday, the
    finance minister Adrian Câciu announced. He outlined the key measures in the plan, including a 10% reduction on
    expenditure with products and services, except for expenses in public
    healthcare and education, and a ban on procuring, leasing and rentals of automobiles
    and office equipment in public institutions. One exception is the car scrapping
    programme for the public authorities purchasing non-polluting vehicles. The
    programme is designed to help reduce greenhouse gas emissions in the transport
    sector, by encouraging the use of eco-friendly vehicles. The
    finance minister also announced that the number of advisers to officials in
    central administration structures, currently standing at around 900, will be
    reduced by one-half following the implementation of the emergency order aimed
    at making public spending more efficient.


    INFLATION In Romania,
    the year-on-year inflation rate dropped significantly in April, to 11.23% compared
    to nearly 15% in March. While this does not mean that products and services are
    growing cheaper, the rise in prices has nonetheless slowed down. According to
    data released by the National Statistics Institute on Friday, there are
    products that were more affordable in April than in March, including sunflower
    oil. Also on Friday, the National Bank confirmed that this downward trend in
    consumer price increase will continue. But the central bank governor Mugur
    Isărescu also warned those who have or are planning to take out loans in
    foreign currencies, and said that interest rates for the euro and US dollar
    will increase further. The National Bank forecasts a 7.1% inflation rate for
    the end of this year, as against 7% announced previously, and a 4.2% rate for
    the end of next year. Mugur Isărescu added that prices for fruit and vegetables
    will likely continue to go up for another 2 months, as the yield will be
    affected by the weather conditions in Europe, the drought in Spain and the
    aftermath of the earthquakes in Turkey.


    ENERGY The Polytechnic University in Bucharest officially launched
    the first NuScale Energy Exploration (E2) Centre outside the United States on
    Friday. The centre hosts a simulator of the NuScale Power’s VOYGR™ small
    modular reactor (SMR) power plant control room, and will educate and train the
    next generation of nuclear engineers to operate advanced civil nuclear reactor
    technologies while establishing Romania as a regional educational and training
    hub for the next stage of civil nuclear deployments across Romania and Europe,
    reads a news release issued by the US Embassy in Bucharest.


    MUSEUMS
    The National Network of Romanian Museums has announced an absolute record
    number of cultural events enlisted as part of the Night of Museums – 297 in
    Romania and 14 in the Republic of Moldova. Bucharest will host around 60 events
    proposed by museums, art galleries, cultural centres, opera houses, choirs,
    palaces, institutes, high schools and music festivals. The special guest of the
    current edition is the War Childhood Museum, for the first time in Romania. The
    exhibition, entitled Listen, is hosted by the Romanian Peasant Museum. Access
    is free of charge.


    AWARD – Romanian President Klaus Iohannis will receive the Franz
    Werfel Human Rights Award granted by the German Centre against Expulsions, DPA
    reports. Aged 63, Iohannis will become the 11th winner of this award, granted
    to him for his tireless and multilateral commitment to defending human rights
    and minority rights in Romania and Europe. The award, granted every two years,
    comes along with a money prize of 10,000 euros. Among the previous laureates
    are former German president Joachim Gauck, the winner of Nobel prize in
    Literature, Herta Muller and historian Karl Schlögel. The prize will be awarded
    during a ceremony held on June 4 in Frankfurt, Germany, when a congratulatory
    speech will delivered by former European Commission President Jean Claude
    Juncker.


    YOUTH Over 1,400 Romanian 18-year olds are among the 35,000 beneficiaries
    of free EU travel passes granted this year under the Discover EU programme. In
    order to find out more about the culture and history of the EU and to come in
    touch with people across the continent, the beneficiaries will be able to
    travel by train, individually or in groups of up to 5 people, between June 2023
    and September 2024. The current round of the programme saw more than 145,000 applicants
    from EU member states and Erasmus Plus countries (Iceland, Liechtenstein,
    Norway, North Macedonia, Serbia and Turkey). (AMP)

  • Inflation drops

    Inflation drops

    The annual inflation rate will continue to decrease in Romania at a sustained pace in the coming months, the National Bank estimates. The Central Bank officials say, however, that uncertainties and risks remain in the context of the war in Ukraine, and also of the fiscal policy in Romania, which should reconcile the need to reduce the budget deficit with support measures for the population and the economy. The Central Bank decided to maintain the monetary policy interest rate at the level of 7% per year, so that, in the coming months, loan interest rates should not increase. The amount of currency in circulation, the exchange rate, market interest rates, and other levers used to achieve economic policy targets depend on this indicator. It is the first meeting of the BNR management when the monetary policy interest rate is kept unchanged, given that it has continuously increased since November 2021.



    Financial analyst Adrian Codirlaşu says that the decision had been anticipated and that it would not have a significant impact on the interest rates charged by banks: Basically, no monetary policy decision has been made, which was widely expected by the markets too. Therefore, the impact on the evolution of interest rates on the money market is extremely low. We see that the money market interest rate is on a downward trend, but the ROBOR index will not drop below 6. Therefore, the long maturities might continue to decrease once the disinflationary process is confirmed. The consumer loan reference index – IRCC in this quarter is at its maximum value. As of the next quarter, there will already be a slight decrease, from 5.98 maybe to 5.93-5.94. It will not go significantly below 6 this year. It will probably decrease more next year, when the Central Bank will probably operate the first interest rate decrease.



    According to current assessments, the annual inflation rate will probably accelerate its decline in the coming months, but a series of uncertainties and risks persist. Adrian Codirlaşu mentioned the two main ones: The war remains a main risk, which can still bring negative surprises in this region or even in the whole EU. OPEC Plus, i.e. OPEC plus Russia, announced that they are reducing the amount of oil, with the aim of increasing the price on the international market. This will be reflected in inflation if the price remains high, or, if this operation succeeds and the price of oil really increases. So, the energy issue remains a vulnerability, not to mention the uncertainties related to war.



    Uncertainties and risks are also generated by the turbulences in the banking systems in the United States and Switzerland, which could have adverse effects by affecting the economies of developed states and the perception of risk in Central and Eastern Europe, with an impact on financing costs. (LS)

  • March 31, 2023

    March 31, 2023

    DEFENCE The strategic partnership between
    the US and Romania has never been stronger, said the US secretary of defence,
    Lloyd Austin, during the talks with his Romanian counterpart Angel Tîlvăr in
    Washington on Thursday. According to a news release from the Pentagon, the US
    official praised the excellent relations between the two countries’ armed
    forces and thanked Romania for hosting thousands of US and Allied troops to
    bolster deterrence on NATO’s eastern flank, and for its role as a leader in the
    Black Sea region. The two officials condemned Russia’s reckless war of choice
    in Ukraine and reiterated their firm support for Ukraine. The Romanian defence
    minister is on a visit to the US for several days, and has meetings scheduled
    with senior US officials in the following days.

    B9 The meeting of foreign
    ministers in the Bucharest 9 format carries on today in Łódź (Poland),
    co-chaired by the head of the Romanian diplomacy Bogdan Aurescu and his Polish counterpart, Zbigniew Rau. On
    Thursday, the Romanian official announced that the first high-level conference
    on security in the Black Sea region will take place in Bucharest on April 13.
    During the talks in Lodz, B9 ministers focused on the consequences of Russia’s
    war of aggression against Ukraine at regional and Euro-Atlantic level, with an
    emphasis on the need to continue supporting Ukraine and to consolidate
    trans-Atlantic ties, the Romanian foreign ministry said. In his address, Mr.
    Aurescu called on B9 ministers to maintain increased Allied attention and
    involvement in the Black Sea region, which has strategic importance for the
    entire Euro-Atlantic space, as well as to strengthen trans-Atlantic
    coordination. Bogdan Aurescu reiterated Romania’s firm commitment to
    further provide multidimensional support to Ukraine. He also encouraged the
    Allies on the eastern flank to continue supporting Ukraine’s neighbours, which
    are vulnerable to Russia’s aggressive moves, especially Georgia and the
    Republic of Moldova, which is facing hybrid threats designed to destabilise the
    country and to undermine its EU accession efforts.


    VISIT The PM of Romania Nicolae Ciucă travels
    to Sweden today, the country that holds the rotating presidency of the EU. His
    agenda includes a meeting with his Swedish counterpart Ulf Kristersson. According
    to Radio Romania’s correspondent, talks will focus on Russia’s aggression
    against Ukraine and its impact on the countries in the region, on the
    enlargement of the Schengen area, on the priorities of the Swedish presidency
    of the EU Council and on bilateral cooperation, which PM Nicolae Ciucă has
    recently described as very good. Nicolae Ciucă will also have a meeting with
    the speaker of the Swedish parliament, Andreas Norlén. Also today, the Romanian
    head of government will attend a public conference on Threats and
    opportunities in the Black Sea region, which will also mark the end of his
    visit to Sweden.


    GREEN ENERGY The European Commission
    vice-president Frans Timmermans travels to Bucharest today, for talks on
    the European Green Deal and the bloc’s strategy to switch to a zero-emission
    economy. The agenda of the visit includes meetings with president Klaus
    Iohannis, with the environment minister Tánczos Barna, and with other
    government officials. Frans Timmermans will also have meetings with civil
    society members, to discuss ways to fight climate change in Romania and the
    role of the European Commission in this respect.


    AGRICULTURE
    The European Commission intends to revise the amount of compensations granted
    to farmers from 5 countries affected by the imports of cheap grains from
    Ukraine. The Commission is to disburse another EUR 75 mln, of which Romania
    might get EUR 15mln, in addition to the EUR 10mln earmarked already. In an open
    letter to the government, Romanian farmers argue however that Romania has lost
    a lot more because of the priority and advantages received by Ukrainian
    producers in the European market.


    TENNIS The Romanian player Sorana Cîrstea
    (74 WTA) today takes on Petra Kvitova of the Czech Republic (12 WTA), in the
    semis of the WTA 1000 tournament in Miami (Florida). Twice a Wimbledon champion (2011,
    2014), Kvitova qualified into the semifinals on Thursday, when she defeated
    Russia’s Ekaterina Alexandrova in 3 sets. On Wednesday Sorana Cîrstea had outplayed Arina Sabalenka of
    Belarus, no 2 in the world. This will be the 11th direct
    match between Sorana Cîrstea and Petra Kvitova, with
    the Czech athlete winning 6 of them so far. The winner will take on Elena Rybakina
    of Kazakhstan in the final. (AMP)

  • March 29, 2023 UPDATE

    March 29, 2023 UPDATE

    Education – In Bucharest, the education draft laws were approved in the government meeting on Wednesday and are to be debated and adopted in Parliament, in an emergency procedure. The line minister, Ligia Deca, stated that the documents brought together the desiderata and vision of society as a whole with regard to education in the run up to 2030. She gave some examples of changes to the law, such as centering the educational system on the student, stimulating the potential that each child has and accompanying this potential from early education to adulthood. Another desideratum would be to increase the quality and level of functional literacy. Ligia Deca also said that the lessons learned as a result of the successive crises of the recent years were also included in the two laws.



    Protest – Two Romanian trade union federations on Wednesday staged a protest outside the government headquarters, unhappy with the salary scheme in this sector. They demand urgent solutions to enhance the incomes of the auxiliary teaching staff and overtime pay for the teaching and auxiliary staff. The federations also demand the application of the regulations on the payment of bonuses for working conditions, saying that the education employees are the only category of public employees that does not benefit from such bonuses. Similar protests were held last week around the country. Trade unions say they are planning a protest rally in Bucharest in May and even warn of a general strike unless the government finds solutions to the problems of the employees in the education sector.



    Pensions – The Senate has passed a bill on the reform of special pensions, with 79 MPs voting in favor and 37 against. After intense discussions, the bill was approved on Tuesday by the specialist committees, who only accepted the amendments proposed by the parliamentary majority. One of the changes refers to an additional tax of 15% on the special pensions exceeding the gross average salary. Also, special pensions can no longer exceed the incomes obtained before retirement, and beneficiaries cannot receive both a salary and a pension. Around 200,000 people currently benefit from special pensions, of whom 170,000 are former defense and public order employees. Romania has 7 categories of special pensions, including those of magistrates, military and diplomats. Yearly budget expenses connected to special pensions amount to some 2.4 billion Euros. Former magistrates have the highest pensions, even amounting to some 3,600 Euros a month, ten times more than the average state pension. Changing this pension system is a requirement laid down in the National Recovery and Resilience Plan and failure to make the change may lose Romania almost 3 billion Euros of EU funding.




    Natural gas – EU energy ministers have decided to extend by another year the recommendation to cut natural gas use by 15%. The measure was initially proposed after the start of the war in Ukraine in an attempt to reduce dependence on Russian gas. According to the Swedish presidency of the EU, thanks to this recommendation, European gas use dropped by almost 20% from August to January. The reduction in consumption also contributed to a drop in prices, said the EU officials.



    Drill — Sea Shield 2023, the most complex NATO military training exercise planned and conducted by the Romanian Naval Forces this year, continued on the Black Sea shore. An evacuation exercise took place on Wednesday, in which the forces involved manage a situation of illegal transport of refugees by sea. Romanian and Bulgarian ships participated. About 3,400 soldiers and representatives of several institutions from the national defense system, as well as from 12 allied and partner states, are participating in Sea Shield 2023. (CM, LS)

  • March 19, 2023

    March 19, 2023

    VISIT The president of Romania Klaus Iohannis, currently
    on an official visit to the United Arab Emirates, has traveled today to Masdar
    City, a model of sustainable urban development with solutions centered around
    energy efficiency and environment protection. The Romanian official was presented
    solutions for transport and urban cooling and ventilation, building energy
    generation and optimum usage of natural light in schools and research
    institutions. The solutions tested in Masdar City may be an inspiration for
    other cities increasingly interested in sustainability, including in Romania. Contributions
    to these solutions come, among others, from Romanian researchers as well,
    affiliated to research institutes in Masdar City, the Romanian presidency said
    in a news release. President Iohannis will be in the UAE until Tuesday, at the
    invitation of his counterpart, Sheikh Mohamed bin Zayed Al Nahyan. The main
    goals of the visit include strengthening the political and diplomatic dialogue
    on topics of mutual interest, encouraging bilateral economic relations, which
    are already on a significant positive trend, and attracting investments in the
    Romanian economy through projects in fields like infrastructure, energy,
    climate change, cybersecurity and food security.


    REFUGEES The Romanian Border Police Inspectorate General
    announced that on Saturday as many as 86,342 people entered Romania using
    border checkpoints around the country. Of them, 8,510 were Ukrainian nationals.
    Since February 10, 2022, two weeks before the Russian invasion of their
    country, nearly 3.8 million Ukrainian citizens entered Romania. Most of them have travelled
    further on to western European countries, but around 100,000 of them have
    chosen to stay in Romania, according to the authorities in Bucharest.


    CHILDREN Border police prevented over 5,300 Romanian
    underage nationals from crossing the border out of the country in 2022, because
    their parents or the adults accompanying them were unable to produce the
    documents required for taking minors out of the country. The interior ministry
    announced on Sunday that the number is twice as big as in the previous year. Also,
    since the beginning of 2023, more than 800 Romanian minors have been stopped at
    the border because they lacked valid travel documents, the accompanying parent
    lacked the consent of the other parent or because the adults accompanying them,
    other than their parents, failed to present clear criminal records. Under the
    law, underage Romanian nationals can only leave the country based on a valid
    travel document, passport or identity card, provided that they are accompanied
    by an adult and have the consent of their parents.


    RUGBY Romania’s
    national rugby team takes on Spain today in a match for the 3rd
    place in Rugby Europe Championship 2023, the second-tier European competition
    after Six Nations. The match is played in Badajoz, Spain. The competition final,
    pitting Georgia against Portugal, is played tonight as well. In August Romania’s
    rugby team is scheduled to play test matches against Georgia and Italy, ahead
    of the World Cup in France, organised between September 8 and October 28. Romania will play in Group B, alongside Ireland, South Africa,
    Scotland and Tonga.


    HANDBALL Romania’s women’s handball champions, Rapid Bucharest, are
    playing today away from home against Slovenia’s Krim Ljubljana, in the first
    leg of the playoffs for the Champions’ League quarter-finals. The second leg
    takes place in Bucharest. This is Rapid’s first presence in the Champions’
    League, and the match against the Slovenian champions is also the team’s first
    march in European competitions with the Danish manager Kim Rasmussen, who
    replaced Carlos Viver (Spain). 150 Romanian fans will attend the game. If they
    qualify into the quarter-finals, Rapid will be facing Kristiansand (Norway). Romania’s
    vice-champions, CSM Bucharest, have already qualified into the quarter-finals,
    where they will take on the winner of the playoff between the French side Brest
    and the Danish team Esbjerg. (AMP)

  • March 9, 2023

    March 9, 2023

    BILLS Government in Bucharest will today hold talks on the final draft laws
    on education to be submitted for Parliament approval. The government believes
    that the laws, which have sparked off heated debates in society, will significantly
    curb school dropout, improve the country’s education system and allow the young
    people to adjust to the labour market requirements. However, the opposition has
    lashed out at the amendments announced by field minister Ligia Deca, describing
    the bills as faulty, superficially made and prone to creating imbalances. The
    bills have also been criticized by all those involved in the educational
    process, students, teachers and parents.










    TALKS Defence Ministers from EU member countries on Wednesday convened in
    Stockholm for talks over a two-billion euro plan of providing howitzer shells to
    Ukraine so that the country will improve its fighting capabilities against Russia.
    A final decision on the aforementioned project is expected during a similar
    conference due on March 20th. According to press agencies, Ukraine
    has cautioned that the quantity is not enough to make the difference in the war
    against Russia. Ukraine’s Defence Minister Oleksii Reznikov, who also attended
    the conference in Stockholm, says that his country needs at least one million 155mm
    artillery shells, which would cost 4 billion euros, double than the plan
    presented in Stockholm. The total EU support for Ukraine presently stands at 12
    billion euros.








    COVID-19 The number of COVID-19 infections is on the rise in Romania and
    according to the latest reports, the figures doubled last week as compared to
    February. Physicians believe though that the present situation should not
    create concern, whereas experts say that the real number of infections could be
    higher than officially announced. At the same time, the number of respiratory
    infections is dropping under 100 thousand cases confirmed in late February.




    ENERGY Italian electricity and gas provider Enel has today announced the transfer
    of its operations in Romania towards Public Power Corp (PPC) of Greece, in
    exchange for 1.26 billion euros as part of a plan focusing on green energy
    production and cutting debts. Enel has made public its intention to focus on
    countries with growth potential like Italy, Spain, the United States, Brazil,
    Chile and Columbia. The Enel-PPC deal is expected to complete in the third
    quarter of this year. The Italian group has been a major player on Romania’s
    energy market since 2005 and currently boasts 3 million customers in three
    major regions of this country.








    VISIT Presently on a Far East tour, which also took him to Japan, Romanian
    president Klaus Iohannis is today paying a two-day visit to the Republic of
    Singapore. Boosting cooperation in fields such as education, research, food
    safety, fighting climate change and green transition are high on his agenda.
    Romania is the third biggest EU provider of IT services to Singapore and
    Bucharest is interested in boosting this cooperation through fresh bilateral
    projects. Romania’s interest in attracting Singaporean investment will also be
    promoted. President Iohannis is expected to underline Romania’s contribution to
    global food safety and the potential of the Romanian Black Sea and Danube ports
    in connecting to Central Europe.






    (bill)

  • Plans for the energy sector

    Plans for the energy sector


    The German company AE SOLAR plans to produce solar panels in Romania, in one of the largest investments announced in the country in the past few years.



    PM Nicolae Ciucă has met with officers of the firm, which intends to invest a total of EUR 1 bln, the Government announced. In a first stage, the project will have a 2-gigawatt capacity, and after the full integration of production flows the capacity will reach 10 gigawatts, accounting for one-third of Europes demand.



    AE SOLAR, which operates in 95 countries, confirmed that the first stage of the Romanian plan would be operational this very year. What the government is to do next is analyse the resources that may be obtained from EU funding or from the national budget to support the project. Experts will be involved from the Black Sea Universities Network, who will be able to work together through a science park paired with the production facilities, the governments news release also says.



    According to PM Ciucă, AE SOLARs investment will place Romania at the forefront of European production of solar panels and will contribute substantially to the countrys energy independence and to environment protection, given the use of clean, renewable energy for electricity production.



    Modernisation was also the key topic in the PMs talks with Mass Global Energy Rom, which last year took over the coal-fired thermal power plant in Mintia, in the west of the country. Company officials told PM Nicolae Ciucă about an over EUR 1 bln investment plan designed to turn the unit into the EUs largest and most efficient gas-based electricity production facility, able to produce at least 1,500 megawatts.



    The first stage of the investment is due for completion within 24 months, with the entire project to be finalised in 36 months. During this time, the power plant elements will be prepared for the switch to new, hydrogen-based technologies to produce energy.



    “The Black Sea natural gas reserves, which are currently able to cover 10% of the annual domestic demand, will turn Romania, in the coming years, into one of the largest gas producers in the EU. The power plant in Mintia, which will use gas as a resource for the production of electricity, will take full advantage of this, enabling Romania to cover its domestic demand and also to export, thus helping the Republic of Moldova and our EU partners,” PM Nicolae Ciucă promised. (AMP)


  • The distribution of energy cards gets under way

    The distribution of energy cards gets under way

    The distribution of the cards helping with the payment of energy bills got under way in Romania on 1st February. In a government meeting, prime minister Nicolae Ciucă asked the minister for investments and European projects to further coordinate with the minister for research and the Postal Service to make sure that everything the government has decided on paper gets done in practice. More precisely, the government will this year provide persons who have difficulty paying their energy bills with the equivalent in lei of 280 euros. The money will reach people in two payments via card, one this month, the second next September. More than four million people will thus receive help with their bills for electricity, gas, centralised heating, gas cylinders, wood fire, heating oil, wood pellets and other materials used for heating. The aid can be used for current or outstanding bills at the place where the beneficiaries reside.



    The minister for investments and European projects Marcel Boloş said there are three methods of making the payments: at the post office, to the postal officer and electronically, via an app, which he explained is easy to use:



    “The app can be accessed by typing in the serial number of the energy card and the three documents already used for making payments and which are necessary for the reimbursement of the heating aid, namely the ID card, the energy card and the energy bill.”



    The energy card cannot be sold or donated, and those who try to break these rules are facing hundreds of euros in fines. One card can be used to make more than one payment to suppliers, until the money runs out. Another measure taken by the government to help the population amid the rising cost of electricity and natural gas was to supplement the budget allocated to support the installation of photovoltaic panels, which can now finance four times more such systems, amounting to almost 190,000 homes.



    Also, procedures to access the funds have been simplified and the applications will be processed more quickly. Environment minister Tanczos Barna explains:



    “Applicants will need to produce their ID cards, a document from the land register showing they dont have debts to the state or local budgets, and, once the photovoltaic system is installed, a certificate showing connection to the grid as users.”



    Each applicant can receive around 4,000 euros, which is enough for a system providing 3.3 Kilowatts per hour. (CM)

  • Energy cards, under way

    Energy cards, under way

    Two weeks ago, the
    government of Romania approved support measures, partly financed from EU
    funding under the 2014-2020 cohesion policy, to help vulnerable citizens cover
    their energy bills.


    Energy cards will be
    delivered by post as of February 1, and beginning on February 20 they can be
    used for the payment of electricity, heating and natural gas bills, and for purchasing
    firewood, natural gas bottles, fuel oil, pellets and other heating materials.


    A card carries a value
    of around EUR 140, the first installment of the total aid of EUR 280 for the
    year 2023, addressing beneficiaries with incomes below EUR 410 per family member. Where several beneficiaries share the same address,
    one card will be issued for the address.


    For those living in individual
    houses, things are quite straightforward. But if a beneficiary lives in a block of flats and
    wants to use the card for their energy expenses, the building manager will have
    to break down expenses and issue a debt validation certificate.


    The second installment
    of the aid will be distributed in September, and will consist of cards with a
    similar value, but the Government considers broadening the category of
    beneficiaries to include people earning less than EUR 600 per family member per
    month.
    Energy card beneficiaries will be able to pay energy bills using this document,
    their ID and the invoice in question only via the Romanian Post, the minister
    for European Projects and Investments Marcel Boloş explained:


    Marcel
    Boloş: Beneficiaries will be able to use the cards either with their
    mailman, or at their local post office, and as of next week we hope to have the
    electronic postal order service also available, where possible. After each
    operation, they must request the proof of payment, which is the document that
    confirms that the Romanian Post will transfer the money received from us to the
    beneficiary’s energy supplier. Also, using the card serial number,
    beneficiaries will be able to check their balance and payment history.


    The Romanian authorities will also continue to fund the social
    vouchers worth around EUR 50 every 2 months, used for the purchase of food and
    hot meals. The vouchers are partly financed from EU funds and partly from the
    state budget, and since 2022 over 2.5 million people have been receiving them. Also,
    in 2023 as well, an energy price cap and subsidy system will be in place for
    all household consumers. (AMP)