Radio România Internațional

Tag: foodstuffs

  • January 28, 2024 UPDATE

    January 28, 2024 UPDATE

    IMF An International Monetary Fund mission
    headed by Jan Kees Martijn will be in Bucharest
    between January 29 and February 1, to review the latest economic and financial
    developments. The previous IMF visit to Romania was last autumn, when IMF
    experts conducted their annual analysis of the Romanian economy. At that time, Jan
    Kees Martijn said estimates were pointing to a budget deficit of 6% of GDP for
    the end of 2023, and of 5% in 2024, as well as to an economic growth rate of 2.3%.
    Romania has no ongoing agreements with the IMF at present, but the Fund
    conducts regular visits to review financial and economic indicators. The PM Marcel Ciolacu voiced optimism with
    respect to the IMF’s assessment. He explained that Romania still has problems
    meeting a benchmark in the National Recovery and Resilience Programme, as the
    EC believes Romania has too low SME taxation levels.


    DRUGS The Romanian justice minister Alina Gorghiu requested the
    emergency endorsement of the bills against drug trafficking and drug use. A
    first bill concerns the set-up of the Drug Trafficking Register and of regional
    rehab centres for drug addicts. A second bill eliminates suspended sentences
    for drug trafficking. On Friday, after the Justice and Home Affairs Council,
    the interior minister Catalin Predoiu announced that Romania set up a task
    force integrating several institutions involved in the fight against drug
    trafficking. He said Romania is on the front line of the crackdown on
    international drug trafficking networks, and welcomed the Council’s decision to
    include Romania’s and Bulgaria’s air and maritime borders in the Schengen area.
    According to the Romanian official, EU member countries should focus on curbing
    drug trafficking in ports, through an integrated international platform.


    PRICES In Romania, the mark-up for basic foodstuff prices may be capped
    for another 3 months. The announcement was made by Marcel Ciolacu recently, as
    the capping scheme is due to come to an end soon. According to the PM, a
    decision will be made following talks with all stakeholders. The agriculture
    minister told Radio Romania that a discussion in this respect will be held on
    Monday. He explained that according to data made public by the National
    Statistics Institute and the Competition Council, the measure has been
    effective. The agriculture minister added that the introduction of further
    products in the list is being considered. The emergency order passed by the
    government last summer in order to contain the effects of inflation saw the
    temporary capping of mark-ups for several basic foodstuffs, including bread,
    milk, yogurt, flour, eggs, chicken and pork. The measure was subsequently
    extended and further products were included.


    UN The UN secretary general, Antonio Guterres, Sunday called on the
    countries that have suspended funding for the UN agency for Palestinian
    refugees (UNRWA) to ‘at least guarantee’ the continuity of UNRWA operations,
    which are vital for 2 million people, AFP reports. The UN body, which is the
    main provider of humanitarian aid in Gaza, Friday announced firing a number of
    employees accused of involvement in the Hamas attack in Israel on October 7,
    2023. In turn, the director of the UN body, Philippe Lazzarini, warned that the
    vital assistance granted by UNRWA is about to end because of funding issues. Israel
    demands the resignation of Philippe Lazzarini and the termination of the
    agency’s work in Gaza after the war. A number of countries, including the US, Canada,
    UK, Italy and Germany, have suspended all future funding to the UNRWA.


    GAC The state secretary for European affairs with the
    Romanian foreign ministry, Daniela Gîtman, takes part in the General Affairs
    Council (GAC) meeting in Brussels on Monday. The agenda includes a policy
    debate on the legislation devoted to safeguarding European democracy, and the
    presentation of the priorities of the Belgian presidency of the EU Council,
    followed by an exchange of opinions between the participating ministers and
    state secretaries for European affairs. The GAC meeting will also include a new
    round of talks on country reports, under the annual rule of law dialogue.


    UKRAINE Six months after the start of the Russian invasion, Ukrainian
    defence officials and corporate executives tried to embezzle USD 40 mln
    intended for arms procurement, according to SBU, Ukraine’s main security and
    intelligence agency, quoted by international
    news agencies. The attempted embezzlement took place in August 2022, with the
    money originally earmarked for the procurement of 100,000 mortar rounds, which
    were never delivered. One of the suspects was apprehended while trying to leave
    the country, SBU announced. Ukraine has seen several corruption scandals since
    the start of the war in February 2022. In August 2023, president Volodymyr
    Zelenskyy dismissed all the regional officials in charge with army enrollments, on
    grounds that they were providing recruitment exemptions for money. Curbing
    corruption is one of the main conditions that Ukraine must meet in order to
    join the European Union.


    RUGBY The new manager of Romania’s rugby team, David Gerard
    (FR), announced the 32 players selected for the national team’s debut match in
    the 2024 Rugby Europe Championship. According to the website of the Romanian
    Rugby Federation, only 26 of them will travel to Poland. In Rugby Europe
    Championship, Romania plays in Group B, alongside Portugal, Belgium and Poland.
    The first match, in Poland on February 4, will be followed by 2 home games,
    against Belgium (February 10) and Portugal (February 17). (AMP)

  • January 28, 2024

    January 28, 2024

    IMF An International Monetary Fund mission
    headed by Jan Kees Martijn will be in Bucharest
    between January 29 and February 1, to review the latest economic and financial
    developments. The previous IMF visit to Romania was last autumn, when IMF
    experts conducted their annual analysis of the Romanian economy. At that time, Jan
    Kees Martijn said estimates were pointing to a budget deficit of 6% of GDP for
    the end of 2023, and of 5% in 2024, as well as to an economic growth rate of 2.3%.
    Romania has no ongoing agreements with the IMF at present, but the Fund
    conducts regular visits to review financial and economic indicators. The PM Marcel Ciolacu voiced optimism with
    respect to the IMF’s assessment. He explained that Romania still has problems
    meeting a benchmark in the National Recovery and Resilience Programme, as the
    EC believes Romania has too low SME taxation levels.


    DRUGS The Romanian justice minister Alina Gorghiu requested the
    emergency endorsement of the bills against drug trafficking and drug use. A
    first bill concerns the set-up of the Drug Trafficking Register and of regional
    rehab centres for drug addicts. A second bill eliminates suspended sentences
    for drug trafficking. On Friday, after the Justice and Home Affairs Council,
    the interior minister Catalin Predoiu announced that Romania set up a task
    force integrating several institutions involved in the fight against drug
    trafficking. He said Romania is on the front line of the crackdown on
    international drug trafficking networks, and welcomed the Council’s decision to
    include Romania’s and Bulgaria’s air and maritime borders in the Schengen area.
    According to the Romanian official, EU member countries should focus on curbing
    drug trafficking in ports, through an integrated international platform.


    PRICES In Romania, the mark-up for basic foodstuff prices may be capped
    for another 3 months. The announcement was made by Marcel Ciolacu recently, as
    the capping scheme is due to come to an end soon. According to the PM, a
    decision will be made following talks with all stakeholders. The agriculture
    minister told Radio Romania that a discussion in this respect will be held on
    Monday. He explained that according to data made public by the National
    Statistics Institute and the Competition Council, the measure has been
    effective. The agriculture minister added that the introduction of further
    products in the list is being considered. The emergency order passed by the
    government last summer in order to contain the effects of inflation saw the
    temporary capping of mark-ups for several basic foodstuffs, including bread,
    milk, yogurt, flour, eggs, chicken and pork. The measure was subsequently
    extended and further products were included.


    UN The UN secretary general, Antonio Guterres, Sunday called on the
    countries that have suspended funding for the UN agency for Palestinian
    refugees (UNRWA) to ‘ at least guarantee’ the continuity of UNRWA operations,
    which are vital for 2 million people, AFP reports. The UN body, which is the
    main provider of humanitarian aid in Gaza, Friday announced firing a number of
    employees accused of involvement in the Hamas attack in Israel on October 7,
    2023. In turn, the director of the UN body, Philippe Lazzarini, warned that the
    vital assistance granted by UNRWA is about to end because of funding issues. Israel
    demands the resignation of Philippe Lazzarini and the termination of the
    agency’s work in Gaza after the war. A number of countries, including the US, Canada,
    UK, Italy and Germany, have suspended all future funding the UNRWA. (AMP)

  • January 17, 2024 UPDATE

    January 17, 2024 UPDATE

    PROTESTS Family
    doctors in many cities in Romania Wednesday protested against the amounts
    proposed by the authorities for the reimbursement of services. They say that
    the cuts in the budgets of family medicine practices will have negative
    effects, both for patients, and for the healthcare system as a whole. A bill
    posted for public review on the website of the National Health Insurance
    Agency, provides, among other things, that the funding granted to family
    doctors will be over 30% smaller in 2024, and the bonuses granted to practices
    in rural areas will be discarded. Meanwhile, the Sanitas trade union demands a
    20% raise of all salaries in public healthcare and the scrapping of all salary inconsistencies
    between various categories in the healthcare sector. On Thursday union leaders
    are to present their requests to the Finance Ministry, and threaten to go on strike
    unless their demands are met. The staff of some of the 9 government agencies
    for small and medium-sized enterprises in the country also went on a
    spontaneous 2-hour strike, demanding pay raises up to the average salary in the
    Economy Ministry. The protests of farmers and transporters also continue across
    the country, although employers in the field claim that they reached an
    agreement with minister Sorin Grindeanu and a protocol with clear deadlines was
    signed, benefiting passenger and freight carriers. The agriculture minister
    Florin Barbu has also held talks with trade associations, and says that at this
    moment all claims presented by farmers are solved.




    PRICES On
    Wednesday the Romanian agriculture minister Florin Barbu had a meeting with
    retailer representatives, with the talks mainly focusing on extending the
    cap on the basic food markup for another three months. Major retail chains
    suggested a mechanism targeting specific products for which significant price
    variations are still reported, instead of extending the overall markup cap.
    Minister Florin Barbu said the topic will also be discussed with PM Marcel
    Ciolacu, as retailers had requested. An emergency order introducing a temporary
    measure to curb excessive price increases for some agricultural and food
    products came into force on August 1st, 2023, and targeted 14 groups of food
    products, including bread, cow milk, cottage cheese, eggs, sunflower oil, fresh
    chicken and pork.




    AUTOMOTIVE Over the past 12 years Romania has
    doubled the number of cars and lorries, to become the EU member country with
    the highest increase of the vehicle per capita ratio, according to a report
    made public by the EU statistics office, Eurostat. Romania is still among the
    countries with the smallest number of automobiles per capita in the EU. The
    highest ratio is reported by Italy (684 cars per capita), followed by Luxembourg,
    Finland and Cyprus, with Latvia, Romania and Hungary at the opposite pole (417 cars
    per capita in Romania).




    JUDICIARY People
    who leave the country in order to avoid criminal prosecution, trial or
    execution of punishment may have to pay the expenses incurred by the State for their
    repatriation. The minister of justice, Alina Gorghiu, has announced that a
    draft law in this respect has been posted on the website of the ministry for
    public review. She says repatriating a fugitive criminal can cost the state up
    to EUR 25,000. Last year alone, Romania spent around EUR 2 mln of taxpayer
    money for the repatriation of some 600 fugitives.




    SCHENGEN The Schengen
    accession of Romania and Bulgaria, although partial, is a good sign, said the
    Belgian PM, Alexander De Croo, whose country has taken over the rotating
    presidency of the Council of the European Union. He applauded the efforts made
    by both countries to address Schengen concerns and stressed that, if things
    continued to go according to plan, the next steps would be taken. On March 31,
    Romania and Bulgaria will lift controls at air and maritime borders with EU
    member states.




    CITIZENSHIP The
    number of applications for Moldovan citizenship has increased significantly as
    of late, which is why Chisinau is asking for the review period to be extended
    to up to 6 months. According to official data, 70% of the applicants are
    Russian citizens, and 20% are Ukrainian. The increase in the number of
    citizenship applications made by Russians indicates attempts to avoid enlisting
    in the army – says the analyst Anatol Ţaranu, a former ambassador of the
    Republic of Moldova to the Russian Federation, quoted by Radio Chisinau.
    According to experts, Russia could begin a full mobilisation after the
    presidential elections due in March 2024. Kyiv claims that Moscow loses about
    1,000 soldiers every day on the front in invaded Ukraine. (AMP)

  • October 23, 2023

    October 23, 2023

    FOODSTUFFS The cap on mark-ups for
    basic foodstuffs will be extended by another 90 days, under a draft emergency order posted on the
    home page of the Agriculture and Rural Development Ministry. Nine other products
    will be added to the list, including tomato broth, margarine, yeast, sour cream.
    On August 1 a government order took effect, under which prices for 14 basic
    foodstuffs were capped, following discussions with processors, distributors and
    retailers. PM Marcel Ciolacu said the cap on basic foodstuffs contributed to
    reducing the inflation rate below 9% last month.


    NATO
    Romania will continue to contribute to improving regional and Euro-Atlantic security,
    including, among others, as a stability pillar at the Black Sea, president
    Klaus Iohannis Monday told the participants to the opening ceremony of the
    fully operational NATO Multinational Corps South-East command centre in Sibiu,
    central Romania. The president mentioned that in 2018, at the NATO Summit in Brussels, he
    communicated Romania’s intention to add a land corps to the Allied command and
    control structure in Romania, in order to strengthen the planning and operation
    of NATO’s forces and structures in Romania-the NATO Force Integration Unit, the
    Multinational Division South-East Command and the Multinational Brigade
    South-East. Mr. Iohannis also said that strengthening NATO’s deterrence and
    defence posture at the Black Sea remains a top long-term objective. The
    Multinational Corps South-East in Sibiu is part
    of the NATO force structure and ensures the command
    and control of Allied land operations in any situation, including crises and
    war, to bolster the NATO deterrence and defence posture in Romania and
    Bulgaria.



    FAC The Romanian foreign minister Luminiţa Odobescu takes
    part today in the Foreign Affairs Council meeting held in Luxembourg. According
    to the Romanian foreign ministry, the agenda includes talks on the situation in
    Israel and the region following the terrorist attacks of Hamas, Russia’s
    aggression against Ukraine and the relations between Armenia and Azerbaijan. The
    EU foreign policy chief, Josep Borrell, will also discuss his visit to China, on October 12 to 14, the Belgrade – Pristina Dialogue, and the Sahel region.
    On the sidelines of the meeting, Luminiţa Odobescu will take part in the
    EU-Central Asia ministerial meeting.


    EDUCATION Public education staff in Romania are to receive
    these days the annual bonus obtained following the strike at the end of the
    previous academic year. Over 326,000 employees in the sector will benefit from
    this annual bonus, amounting to EUR 300 for teaching staff and EUR 100 for
    administrative staff. The government has also decided to extend the deadline
    for the submission of educational voucher applications, through which EUR 100
    vouchers are given once a year to an estimated 410,000 underprivileged children
    for the purchase of clothes and school supplies.


    RALLIES Protesters took to the streets on Sunday as well
    across Europe, to support either the Palestinian or the Israeli cause and the approx.
    200 hostages taken by Hamas. In London, 20,000 people demanded the release of
    the people kidnapped by the Islamists, after the previous day nearly 100,000
    demanded an end to the slaughter in Gaza. In Paris, nearly 15,000 protested
    against Israel’s shelling civilian areas, with similar rallies in Sarajevo and Istanbul,
    while in Geneva the families of the hostages contacted the headquarters of the
    Red Cross and the High UN Commissioner for Human Rights. In Germany, president
    Frank-Walter Steinmaier and PM Olaf Scholz pleaded for the eradication of antisemitism.


    THEATRE Bucharest is hosting the National Theatre
    Festival until October 30th. The theme chosen for this year’s edition is Laboratories
    of the Sensitive. The plays chosen for the festival were selected out of over
    150 performances that premiered in the 2022-2023 season in state and
    independent theatres in Romania. (AMP)

  • August 1, 2023 UPDATE

    August 1, 2023 UPDATE

    FOODSTUFFS The markup for 14 categories of
    foodstuffs is curbed for a limited period of three months under a
    government order passed in late June. Prices for dairy products, meat,
    vegetable and fruit are therefore expected to go down. Farmers will not have to
    set a cap on prices, government officials say. Failure to observe the new
    legislation will incur fines up to EUR 400,000.


    VEHICLES The local segment of the car
    scrapping programme Rablaˮ started in Romania, in an effort to get
    heavily polluting vehicles out of circulation. Apart from the funds provided by
    the Environment Ministry, local authorities contribute 20% of the vouchers
    granted to citizens who de-register cars older than 15 years. In a first stage
    in April, town halls enrolled in this programme, and between August 1 and 31
    citizens may apply for the funds available in the programme. The number of
    beneficiaries for each administrative unit was set according to its population.
    The programme was originally scheduled for 2022, but it was postponed several
    times.


    3SI Bucharest will host a new summit of the
    Three Seas Initiative (3SI) on September 6, held under the high patronage of
    president Klaus Iohannis. The summit will be followed by a 3SI Business Forum.
    Attending will be Senate Speaker Nicolae Ciucă and Prime Minister Marcel
    Ciolacu. The 3SI brings together 12 EU member states from the Baltic, Black and
    Adriatic Seas – Austria, Bulgaria, Croatia, the Czech Republic, Estonia,
    Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. Political
    and economic support for Ukraine will rank high on the summit’s agenda.


    FORESTS The surface areas in Romania where forest
    clearing is banned will be increased approx. 10 fold, to nearly half of
    Romania’s forests, the environment minister Mircea Fechet announced at a press
    conference releasing the new draft Forestry Code for public consultation. The
    document will enable the government to take over the task of reforesting land
    that has been cleared and subsequently abandoned by its owners. Concurrently,
    the Criminal Code will also be amended, to include penalties of up to 5 years
    of imprisonment for false statements concerning the transport of wood. Vehicles
    that carry wood illegally will also be seized. An updated Forestry Code is
    necessary given the infringement procedure initiated by the European Commission
    against Romania for failure to meet its environment protection obligations. Critics
    warn however that the bill might have the exact opposite effect to the desired
    one.


    TENNIS Romania currently has 4 athletes among
    the WTA top 100 players. Sorana Cîrstea stays on the 32nd position
    and Irina Begu on 41st. Ana Bogdan has lost 8 places and currently
    ranks 47th. Simona Halep, who was provisionally suspended after
    testing positive for a prohibited substance at the US Open in 2022, dropped 2
    places, to 56. In the doubles ranking, Gabriela Ruse and Monica Niculescu keep
    their positions as 39th and 48th players in the world,
    respectively. (AMP)

  • June 30, 2023

    June 30, 2023

    PRICES The government of Romania is discussing today an emergency
    order introducing temporary measures to curb the excessive rise of foodstuff
    prices. Under the new regulation, food processors may charge a maximum 20%
    mark-up on production costs. The combined mark-up throughout the distribution
    chain, regardless of the number of distributors, may not exceed 5%, while
    retailers may charge an additional maximum 20% on purchase prices plus
    overheads and direct expenses. The emergency order will be valid for 90 days
    after endorsement.


    EU Europe’s relations with China
    are on the agenda of Friday’s talks at the European Council meeting in Brussels.
    Some member states believe the West relies too much on an undemocratic country
    that has close ties with Russia. The invasion of Ukraine highlighted the West’s
    dependence on Russian oil and gas, and there are concerns that a similar
    mistake is being made with respect to China, the source of many consumer goods,
    the BBC notes. On Thursday, the first day of the Council meeting, the situation
    in Ukraine and Russia was in the focus on the talks. According to Radio Romania’s correspondent, EU leaders have undertaken
    to help Ukraine in the long run to defend itself against Russia’s military
    aggression. The meeting was also attended by the NATO secretary general Jens
    Stoltenberg, with the president of Ukraine Volodymyr
    Zelenskyy joining in via video link. The
    president of Romania, Klaus Iohannis, said both the EU and NATO must provide
    proportional support to the R. of Moldova as well, which is waiting to take the
    next step towards European integration. As regards the transit of Ukrainian
    grain, which has affected Romanian farmers, the president says Romania may
    provide an answer to Kyiv’s request for more intensive use of the Danube as a
    transit option.


    SALARIES Teaching staff in the Romanian public
    undergraduate education sector will receive more benefits under the new
    collective bargaining agreement signed on Thursday. The announcement was made
    by the education minister, Ligia Deca. On the other hand, Sanitas trade union
    announced they have secured pay raises for public healthcare staff.

    PENSIONS The Constitutional Court of Romania will discuss on 26 July
    a notification filed by the High Court of Cassation and Justice against the
    scrapping of special pensions and the law prohibiting the payment of both
    public sector salaries and pensions to the same person at the same time. Both
    bills were passed on Wednesday in Parliament and are being checked for
    compliance with the Constitution, before being sent for promulgation by
    president Klaus Iohannis. Supreme Court judges decided to notify the
    Constitutional Court with respect to the two bills, which they claim violates
    several of their rights.


    SUPPORT The PM of Spain Pedro Sanchez travels to Kyiv on Saturday to
    reiterate the EU’s unwavering support for Ukraine, on the first day of Spain’s
    rotating presidency of the EU Council, 1 July. The announcement was made by the
    president of Ukraine Volodymyr Zelenskyy. Ukraine is an EU candidate country
    and is hoping to open accession negotiations at the end of this year.


    EUROPEAN GAMES Romania is placed 13th in the nations
    ranking at the European Games in Krakow-Malopolska (Poland), 9 days into the
    competition. Romanian athletes have so far won 14 medals (5 gold, 4 silver and
    5 bronze). Cyclist Vlad Dascălu in the mountain bike event, athlete Claudia
    Bobocea in the 1,500m race, Bernadette Szocs in the table tennis final, as well
    as Kinga Barabasi and Apor Gyorgydeak in teqball are Romania’s gold medallists.
    Silver medals went to athletes Bianca Ghelber in the hammer throw event and
    Daniela Stanciu in the high jump, to rower Cătălin Chirilă in the 500m canoe
    race and to Ilinca Pantiş in the saber event. Ştefan Comănescu in the 67 kg kumite,
    Andrea Miklos in the 400 m race, Mălina Călugăreanu in the foil event, Ovidiu
    Ionescu/Bernadette Szocs in the mixed doubles and Elizabeta Samara in the women’s
    table tennis competitions, respectively, won bronze medals. Romania takes part
    in this year’s edition of the European Games with 150 athletes in 18 sports. (AMP)

  • Cheaper basic foodstuffs

    Cheaper basic foodstuffs

    Romania is the EU member state with the lowest food and soft drinks
    prices in 2022, according to the European Statistics Office, which says such
    products were nearly 30% below the EU average.


    However, Romania was also at the bottom of the list in terms of
    minimum wages, with EUR 515 per month, ahead of Bulgaria and Latvia alone, out
    of the 21 member states that use a whole-economy minimum wage indicator. Also,
    the annual inflation rate in Romania was 12.2% in March, as against the EU
    average of 8.3%.


    This, among other things, explains why Romania ranked 14 in the EU by
    living standards measured as actual individual consumption, with figures
    standing at 88% of the bloc’s average.


    In this context, the government is working on legislation to cap
    mark-ups so as to reduce the shelf price of basic foodstuffs. The decision was
    made after the option of cutting down VAT for foodstuffs, as suggested by the
    finance minister Marcel Boloş, was dismissed by PM Marcel Ciolacu. Here is his
    explanation:


    TRACK Past experience shows
    that cutting down the VAT led to lower prices for a very limited period, to smaller
    revenues to the state budget, and prices were back in two weeks’ time anyway.
    So it didn’t work. What I’m talking about is not capping prices, but rather an
    entire system and scheme applying on the whole supply chain, and I will present
    this scheme to the Cabinet.


    The measure the PM mentioned will be introduced under an emergency
    order whose draft has been posted on the website of the Agriculture Ministry. The
    document caps the mark-ups used by major chain stores for as many as 14 basic
    foodstuffs, including bread, milk, yogurt, cornflower, sunflower oil, eggs,
    meat and vegetables.


    Processers will also have to draw up cost statements specifying
    overheads and direct costs, and only then will they be able to add a maximum
    20% mark-up. In turn, distributors will be able to add a maximum 5% margin, and
    supermarkets a maximum 20%. The scheme will also apply to imported products.


    The draft order will be discussed in Thursday’s government meeting
    and will take effect after publication in the Official Journal. The Competition
    Council and tax authorities will conduct inspections to ensure that the new
    legislation is complied with. Consumers are expected to see the effects of the
    measure as of 1 August. (AMP)

  • 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)

  • June 24, 2023

    June 24, 2023

    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.


    RUSSIA In an emergency tv broadcast on Saturday,
    Russia’s president Vladimir Putin said
    an armed uprising by the Wagner paramilitary group would be considered
    treason and that anyone rising against the Russian army will be punished. He also
    added that decisive action will be taken to stabilise the situation in Rostov-on-Don,
    the southern city where the Wagner chief Yevgeny Prigozhin claims his fighters
    have taken control of military facilities. Previously, Prigozhin hinted that his mercenaries
    were heading for Moscow, Reuters reports. Prigozhin accused the Russian army of striking a
    Wagner military camp, which he used as a
    pretext for what he called a march of justice, arguing that he had 25,000 men
    ready to fight the evil at the top of the army. Yevgeny Prigozhin was accused of armed rebellion, and
    the authorities ordered he be arrested. Russia’s
    National Anti-Terrorism Committee announced an anti-terrorist alert in and around
    Moscow.


    BLOUSE Every year on 24 June, the Romanian blouse is
    celebrated 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 hosts 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 come 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 celebrate today 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 Mesiah. 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. (AMP)

  • Prices surge in Romania

    Prices surge in Romania


    For several months now, prices have been on an upward trend in Romania, worsening living standards especially for low-income citizens, who struggle to cope with the surges.



    On the other hand, according to data made public by the European Statistics Office (Eurostat), Romania is one of the countries with the highest increases in agricultural yield, 25%, alongside Bulgaria and Czechia. The EUs agricultural yield went up 8% in 2021 compared to the previous year. According to Eurostat, Romania is one of the 7 member states with substantial contributions to the blocs agricultural yield.



    And still, foodstuff prices have grown significantly this past year. Of these, sugar is one of the products with the highest price increase (62%). According to the National Statistics Institute (INS), sunflower oil prices also rose by nearly 44%, and potatoes are now sold for over 40% more.



    In the non-foods category, the highest rises are reported for natural gas (40%), electricity (27%), heating (23%) and fuel (20%). Telecoms services are 0.76% less expensive, which is the only price decrease reported in October this year since October 2021.



    Meanwhile, INS data indicate that the annual inflation rate was slightly lower in October than in the previous month, reaching 15.32%. The National Bank of Romania expects inflation to go up moderately towards the end of the year, and then to gradually go down to one-figure levels in the first half of 2024.



    The central bank says the prospective reversal of the annual inflation trend after the plateau in the last quarter of 2022 relies on a dampening of global shocks in terms of supply, including the implementation of energy price-capping mechanisms until August 2023. According to the National Bank, the escalation of the war in Ukraine and the ever stricter sanctions against Russia nonetheless generate uncertainties and significant risks to economic operations, and implicitly to the medium-term inflation trends.



    The European Commission also expects Romania to reach an inflation peak at the end of this year, followed by a decrease below 10% in 2024. It is one of the reasons why, the Commission says, the countrys economic growth rate will slow down to 1.8% next year and to 2.2% in 2 years time.



    In the second quarter of 2022 and subsequently, the consequences of the Russian invasion of Ukraine, the high inflation rate, the tightened monetary policy and close control on cash flows is expected to have significantly slowed down the countrys economic growth. Nonetheless, the European Commission has upgraded its economic growth estimates, from 3.9% this summer to 5.8% in its autumn forecast made public last week. (AMP)


  • October 15, 2019

    October 15, 2019

    GOVERNMENT The President of Romania, Klaus Iohannis, carries on today his consultations with parliamentary parties on the appointment of a new prime minister and the formation of a new Cabinet. The talks began on Friday, one day after Viorica Dancilas government was dismissed through a no-confidence vote in Parliament, and continued on Monday in a narrow format. Today the head of state is discussing with the leaders of Save Romania Union, the Democratic Union of Ethnic Hungarians and the National Liberal Party. So far the talks point to a government formed by or around the National Liberal Party, which pleads for a Cabinet of 16 ministries at most. The Liberals announced they are ready to take over power, and the party leader Ludovic Orban is their nomination for prime minister. Save Romania Union spoke in favour of early elections and has several requests in exchange for supporting a new government, including a two-round local election system and a law abolishing compensatory appeals. The Democratic Union of Ethnic Hungarians on the other hand wants mayors to continue to be elected in one round, while the ex-PM Victor Pontas Pro Romania party says it would support the good projects initiated by a new cabinet. The Peoples Movement Party is willing to be part of the new government alonside the Liberals, but will not work with ALDE and Pro Romania. The Alliance of Liberals and Democrats says they will not be part of a new government, and supports a Liberal Cabinet. The Social Democratic Party turned down the invitation to consultations, and its leader Viorica Dăncilă announced the partys parliamentary group would not vote for the new government.





    DEFENCE Representatives of the South-East European defence ministries (SEDM) convene in Bucharest on Wednesday. Romania is represented by the state secretary with the Defence Ministry Doru Claudian Frunzulică. According to a Defence Ministry news release, the meeting is an opportunity for Bucharest to reconfirm its commitment to the projects implemented as part of this initiative, as well as to support proposals for the consolidation of the SEDM as the main cooperation platform in South-East Europe. SEDM is a regional initiative designed to help maintain peace and strengthen neighbourhood and close cooperation among East-European countries, by fostering political-military dialogue and involvement in practical projects in the field of regional security and stability.





    PRICES In Romania, the Foodstuff Price Monitor has been launched today. It is a platform designed to help citizens to contrast food prices charged by stores across the country. The users will be able to choose between around 30,000 types of products, accounting for half of the total foodstuffs in the market. The project is similar to the one that compares fuel prices, launched in June. The new platform is available as a mobile phone app and on the internet at monitorulpreţurilor.info.





    BREXIT Londons most recent proposals regarding Brexit are not good enough, the EU chief negotiator Michel Barnier said on Tuesday, at the General Affairs Council meeting in Luxembourg, according to diplomatic sources quoted by Reuters. Barnier also said that he needed a legal text by the end of the day, in order to be able to recommend that EU leaders approve an agreement at the European Council due on October 17 and 18. Otherwise, Michel Barnier is likely to suggest additional negotiations with London after the EU summit concluding on Friday. Without an agreement between London and the EU by October 19, a law passed in September forces the British PM Boris Johnson to request a 3-month postponement of UKs exit. London and Brussels are trying to reach common ground on means to prevent a post-Brexit return to a physical border between Northern Ireland, a part of the UK, and the Republic of Ireland, which will still be an EU member.





    FOOTBALL Romanias football team plays against Norway in Bucharest today, in Group F of the 2020 European Championship qualifiers. Spain tops the group ranking with 19 points, followed by Sweden with 14, Romania – 13, Norway – 10, Malta – 3 and Faroe Islands with 0 points. The top 2 teams in each group qualify into the final tournament. On Monday night, Romanias Under 21 team defeated Northern Ireland on home turf, 3-0, in Group 8 of the 2021 European Youth Championship. On Thursday, also on home turf, Romania beat Ukraine, 3-0, after last month it had lost to Denmark, 1-2, away from home. In June Romania Under 21 qualified for the first time in the semi-finals of the continental tournament in Italy and San Marino, thus securing their ticket to the Tokyo Olympics.


    (translated by: Ana-Maria Popescu)

  • Consumer Summit in Bratislava

    Consumer Summit in Bratislava

    Countries from Central and Eastern Europe are accusing countries from Western Europe of supplying products of inferior quality, although they are being sold by the same brand in the West. This isn’t news, as last year Bulgaria, the Czech Republic, Croatia, Estonia and Slovakia notified the European Commission with respect to the double quality standards of products sold in the East and the West.



    This is why Slovakia and the Czech Republic last weekend organized a Consumer Summit in Bratislava, in an attempt to combat the trading of inferior-quality foodstuffs in countries that only recently joined the European Union. “The deliberate discrimination against food consumers in Central and Eastern Europe is unacceptable”, Polish Prime Minister Beata Szydlo said on the sidelines of the event. In turn, Slovakian Prime Minister Robert Fico said the European Union has no place for second-rate consumers.



    Hungary’s Prime Minister Viktor Orban said Europe’s economy is based on trust between member states, while the double standards of food quality is a particularly sensitive matter for Central Europe due to its communist past. Large multinationals have been deceiving consumers in Central Europe, Orban went on to say. Attending the Bratislava Summit, EU Commissioner for Justice, Consumers and Gender Equality Vera Jourova proposed a methodology for comparing foodstuffs in the community bloc, a measure appreciated by the leaders of the Visegrad Group, which includes the Czech Republic, Hungary, Poland and Slovakia, who nevertheless say it is a first in what they call a long line of actions that need to be taken.



    A comparative analysis carried out this summer on foodstuffs perceived as having double quality standards highlighted quality differences in 9 out of the total of 29 tested samples. The Summit in Bratislava brought together representatives of the Romanian Agriculture Ministry and the National Consumer Protection Agency.



    According to a Ministry release, Romania wants a clear legislation in the field at European Union level, specific control methodologies across Member States and a good cooperation with the European Commission, allowing Member States to best respond to the issue of double standards in food quality. Participants in the Summit agreed on a mechanism of cooperation aimed at identifying products that might have different quality parameters, depending on the market. Romanian experts will thus work with MEPs to develop a new legislation for this field.

  • Food quality in the limelight in Europe

    Food quality in the limelight in Europe

    A product, including packaged food, bought in the west is of better quality than a product by the same brand sold in Romania. Romanians travelling abroad who have bought products from the west have been able to see this for themselves. In fact, there has been talk for a long time among customers of shops in the west, most of them occasional, about the different quality of products depending on the country where they are sold.



    At the weekend, this issue was given wide coverage in Romania, with the authorities saying they will begin checks, given that the accusation has circulated in other central European countries as well. The Czech Republic, Hungary, Poland and Slovakia also complain that the food products sold in their shops are of poorer quality than those in the west and accuse food makers of using cheaper ingredients in products for the European Unions poorer members.



    The checks are welcome, says the president of the Romalimenta Employers Federation in the Food Industry, Sorin Minea, who recalls, however, that there is a lot of focus in Romania on “the cheapest price, something that cannot ensure best quality. He also says that at the moment it is impossible to establish common standards at European level.



    Sorin Minea: “Its hard to say if special products are made for the countries in the East. Producers sell what they are asked to. If a retail chain asks for a product that complies with certain parameters and a certain price, the producer will provide it. Starting from the premise that the countries in the East are poorer, those responsible for marketing in the countries in the East provide cheaper products. Cheaper translates into poorer quality. As for whether some products are sweeter in the West or in the East or whether they may or may not contain sugar, thats information that can be found on the packaging. As long as producers list the ingredients and the content on the packaging, I dont understand what they are accused of.



    However, not all international products sold in Romania are cheaper than in Western Europe. In fact, prices in the national currency, the leu, are the exact equivalent of the prices in euros or dollars, down to the last cent.



    So, until authorities finalise their verifications to see exactly what the situation is, the president of the Consumer Protection Association Sorin Mierlea told consumers what they can do to benefit from better quality products: “Romanian consumers must take an attitude and report everything. This will help us establish casuistry and to pressure the authorities to do their job, to have a survey, to be in the same context as the other members of the European Union.



    At this point, food makers say the difference in the content of the products is given by … local tastes.

  • VAT Reduction for Foodstuffs

    VAT Reduction for Foodstuffs

    An important part of an ambitious government program of fiscal
    relaxation, the reduction of the VAT for foodstuffs as of June 1st
    was green-lighted by the Romanian senators. The measure is aimed at reducing
    the VAT from 24% to 9% for all foodstuffs, non-alcoholic drinks, and restaurant
    and catering services. Seen by the executive as a way to encourage consumption
    and implicitly to consolidate the growth trend reported by the Romanian
    economy, the measure was regarded with skepticism in terms of the significant
    drop in shelf prices it was supposed to produce.

    The skepticism was fueled by
    the suspicion that hypermarkets augmented the prices in advance, to maximize
    their gains. According to the PM, it is the market that will regulate the
    situation, and a smaller VAT will be reflected by the products’ prices. The
    calculations presented by the Agriculture Ministry point to a drop in prices
    for foodstuffs of about 12%. The authorities’ optimism is shared by a large
    part of the population. Most Romanians believe that the reduction of the VAT
    for foodstuffs and non-alcoholic drinks is a good measure both for them and for
    the economy, shows an opinion survey made by Inscop Research upon order by the
    Adevarul daily. 34.5% of the respondents claim that smaller fees and taxes, as
    stipulated in the new Fiscal Code, mean less money for healthcare, education
    and infrastructure. However 39% of the respondents believe the opposite. Around
    27% do not have a clear opinion about the issue or refused to answer, which is
    indicative, according to the surveyors, of the lack of information or
    understanding of the economic and budgetary mechanism.

    According to the same
    survey 37.7% of the Romanians estimate that prices will be smaller, although,
    in their opinion, the drop in prices will not fully observe the VAT reduction.
    Around 33% of the respondents believe that prices of foodstuffs and
    non-alcoholic drinks will not decrease, while 19% believe the contrary. All in
    all, 57% of Romanians think the reduction of the VAT will be reflected in
    smaller shelf prices. The government’s decision to cut the VAT from 24% to 9%
    for foodstuffs and non-alcoholic drinks is preferred by 62% of the population,
    to the detriment of the idea of a general reduction of the VAT from 24% to 20%,
    which is favored by only 29% of the respondents. The survey was conducted
    between April 23rd – 30th on a number of 1,085 people
    with a plus/minus 3% maximum error.

  • Lower VAT in Romania

    Lower VAT in Romania

    As of June 1st, in Romania, food products, non-alcoholic drinks and restaurant services should be cheaper. The Government decided on Tuesday to slash the VAT from 24 to 9% for these categories, six months before the new Fiscal Code takes effect. PM Victor Ponta says the measure will encourage domestic producers to charge competitive prices. An argument for the early introduction of this measure was that in Romania, food costs account for the largest share of a household’s expenses of all EU countries, the PM explained. Victor Ponta:



    “Although we have smaller incomes, we have food prices equal to those elsewhere in Europe, so 32% of a family’s budget goes on food. This 15% VAT reduction, in force as of June 1st, will reflect on prices.”



    The PM called on the Agriculture Ministry and the Fiscal Administration Agency to check whether the VAT reduction will influence prices. As for the sustainability of the measure, Ponta argues that the annual impact on the state budget, of 1.1 billion euros, may be covered from the additional revenues to the budget reported in the first quarter of the year. Apart from smaller prices, the Government says that the VAT reduction will help fight tax evasion and create a fair competition environment.



    Moreover, the drop in prices may boost consumption, which will result in higher revenues to the state budget. The Liberals, in Opposition, support the measure, but believe the Government is not ready to implement it. The National Liberal Party points to the low collection of taxes, the under-performance of the fiscal agency, which blocks small businesses, and the absence of an impact survey regarding the policies introduced by the Government. Here is the vice-president of the National Liberal Party, Catalin Predoiu:



    “What we want is for such economic measures to produce positive effects. But judging by the signals we’ve had over the past few days, there are questions regarding the ability of the Government to implement this measure at this time. We’ve seen the very well argued opinion of the Fiscal Council, and also the call for prudence from the Governor of the National Bank, who said, and I quote from memory, ‘It is worse to introduce a good measure and then scrap it if it hasn’t been properly prepared, than not to introduce it at all’. We’ve seen the very clear and unambiguous signals from the International Monetary Fund and the European Commission.”



    The Government also announced that as of January 1st, 2016 it will also reduce the standard VAT rate for all the other products and services, from 24 to 20%, whereas the 9% VAT rate for bread, introduced in September 2013, will remain valid.