Tag: Government decree

  • New measures to cap energy prices

    New measures to cap energy prices

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


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


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


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


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

  • Holiday vouchers for public sector employees

    Holiday vouchers for public sector employees

    The Bucharest Senate has passed a Government’s emergency decree on granting holiday vouchers to public sector employees, that will cost the state budget around 384 million euros. It is the Chamber of Deputies that will have the final say on this law, following debates. Under the new law, until November 30, 2018 each public sector employee should receive a holiday voucher worth around 322 euros. The decree has been criticized by the Liberal opposition in the Senate, who voted against the document. Liberal senator Florin Catu has explained:



    Employees working in the public sector who, on average, have bigger salaries than the private sector employees will receive, through this government decree, holiday vouchers. Who will cover the costs? The private sector. In my opinion, even more serious is the fact that we talk about holiday vouchers in a year when, through a budget revision, we slashed 10.6 billion lei from the budget earmarked for investment.”



    On the other hand, the Social Democrat Senator Lavinia Craioveanu says that the measure is stipulated in his party’s governing programme:



    The fact that many Romanians will have the opportunity to spend a holiday in the mountains, at the seaside or anywhere else, something they may not have afforded otherwise, is a measure that will obviously boost tourism in Romania.”



    The electronic holiday vouchers can only be used to purchase tourist services in affiliated units and are not transferable. Also, they cannot be sold and their nominal value cannot be diminished. Moreover, travel agencies are not allowed to sell these vouchers for holiday packages for a price higher than similar holiday packages purchased through different payment methods. The National Association of Travel Agencies in Romania (ANAT) has recently announced that the value of holiday packages paid for with holiday vouchers is below expectations, accounting for only 10.3 million euros until the end of July, given that this year such vouchers have only been granted in the private sector.



    ANAT is expecting the 1.2 million people working in the public sector to also be granted holiday vouchers this year, a move likely to increase the tourist market from 10 million euros in 2016 to 380 million euros this year. However, travel agencies have confirmed that granting holiday vouchers in the private system alone, has boosted tourism in Romania. (Translated by E. Enache)

  • February 14, 2017

    February 14, 2017

    PARLIAMENT – In a plenary meeting today the Senate of Romania unanimously endorsed an emergency government decree that repeals the controversial amendments of the criminal codes, which generated the current political crisis in Bucharest. The draft is now sent to the Chamber of Deputies. The Government building was once again picketed last night by over 1,500 protesters. For two weeks, hundreds of thousands of demonstrators in the country and abroad have been demanding the resignation of the government formed by the Social Democratic Party and the Alliance of Liberals and Democrats in Romania. They accuse the Cabinet of amending the criminal codes in order to exempt influential politicians and local and central administration officers from criminal liability. Concurrently, several hundreds of supporters of the Government request the resignation of President Klaus Iohannis, who they claimed has stepped out of his role as a mediator by joining in the anti-government protests. A referendum regarding the fight against corruption has been initiated by the President, and was approved on Monday by the Senate.



    STATE BUDGET – The President of Romania, Klaus Iohannis, has voiced concern today, after discussing in Bucharest with PM Sorin Grindeanu and the Finance Minister, Viorel Ştefan, about the state budget bill and the social security budget bill, sent to the President for promulgation. The head of state sees the 2017 state budget as problematic, because the budget deficit risks exceeding 3%. In his opinion, the budget bill relies on overestimated revenues and very high expenditure. Yesterday the European Commission estimated that this year Romanias budget deficit would account for 3.6 of the GDP, which might lead to the initiation of the excessive deficit procedure. On the other hand, the economic growth forecast for Romania was improved to 4.4%, which is nonetheless below the 5.2% rate estimated by the Government.



    DEFENCE – Romania will continue to make a contribution to ensuring European and Euro-Atlantic security, in line with its commitments, and proof in this respect are both the allocation of 2% of the GDP to defence, and the American military presence in the country. The statement was made by the Foreign Minister, Teodor Meleşcanu, after the arrival of 500 American troops who will be stationed at the Mihail Kogălniceanu military base in south-eastern Romania for 9 months. The American military also bring the equipment required in order for them to take part, jointly with Romanian troops, in the military exercises planned for this year. The deployment of American troops is intended to strengthen NATOs eastern flank.



    CORRUPTION – The High Court of Cassation and Justice in Bucharest has today postponed for March 28 the trial of the case in which the Speaker of the Chamber of Deputies and head of the ruling Social Democratic Party, Liviu Dragnea, is charged with instigation of abuse of office. According to the National Anti-corruption Directorate, Dragnea ordered the fictitious employment of two members of his party with the Directorate General for Social Assistance and Child Protection in Teleorman County in the south. The two were paid from public funds although they were actually working for the Social Democratic Party alone. Last year Dragnea received a suspended two-year prison sentence, for having attempted in 2012 to rig a referendum to dismiss then-president Traian Băsescu.



    RESIGNATION – The US President Donald Trumps national security adviser Michael Flynn resigned last night over a scandal concerning his telephone contacts with the Russian Ambassador to the USA prior to Trumps inauguration. According to France Presse, in late December, as the Barack Obama administration was ordering sanctions against Russia for its presumed interference with the US elections, Michael Flynn was assuring the Russian Ambassador to Washington, Sergey Kislyak, that president-elect Donald Trump would be a lot less strict in this respect. Îin his resignation letter, Michael Flynn admits to having “inadvertently briefed vice-president elect Mike Pence and others with incomplete information regarding his phone calls with the Russian diplomat.



    TENNIS – Romanias womens tennis team will play against Great Britain at home on April 22 and 23, in the playoffs for Fed Cup World Group II. The drawing was held in London on Tuesday. Last weekend Romania was defeated in Bucharest by Belgium, 3-1, in the first round of World Group II. The national team now has to play to keep its spot in the second group. Fed Cup is the most important international team competition in women’s tennis.


    (translated by: Ana-Maria Popescu)

  • February 6, 2017

    February 6, 2017

    PROTESTS — Over half a million people on Sunday protested the Government decree amending the criminal legislation despite its repeal. Protesters in Bucharest and other cities shouted anti-Government slogans and messages against the Social-Democratic Party. Also on Sunday, a pro-Government rally was staged in front of the Presidency building, totalling some 2,000 people. Justice Minister Florin Iordache said he would present a new draft law on amending the criminal codes in order to harmonize some of their provisions with Constitutional Court rulings.



    NO-CONFIDENCE VOTE — The National Liberal Party and the Save Romania Union in opposition have filed a no-confidence vote in Parliament against the Grindeanu Cabinet. The no-confidence vote was filed in the wake of a controversial decree the Government passed last week modifying the criminal legislation. The decree was rescinded on Sunday amidst mass street protests. Interim Liberal leader Raluca Turcan said the move was unprecedented, labelling it as an act of defiance against the population. In turn, the Save Romania Union leader Nicusor Dan said the Government is pushing Romania further away from civilization and is fostering corruption. The Democratic Union of Ethnic Hungarians has also argued against the Government decree, while the People’s Movement Party has also rallied the efforts of the Liberal Party and Save Romania Union. We recall that the Social Democratic Party and the Alliance of Liberals and Democrats are currently enjoying a steady majority in Parliament.



    BUDGET FOR 2017 — Parliament is today debating the draft budget for 2017. On behalf of the ruling coalition made up of the Social-Democratic Party and the Alliance of Liberals and Democrats, Finance Minister Viorel Stefan told Parliament committees that the bill observes the main guidelines in the governing program, such as cutting the VAT from 20% to 19%, eliminating the income tax for pensions lower or tantamount to 450 euros. The budget is based on an economic growth of 5.2% and a budget deficit of 3%, and will also allow Romania to fulfil its commitments at NATO level regarding the allocation of 2% of the country’s GDP to the field of defence. The right-wing opposition on the other hand claims the figures regarding revenues underlying the budget are overestimated.



    VISIT — Moldovan President Igor Dodon is on a three-day visit to Brussels, where he is meeting with EU and NATO officials. Elected in November 2016, Dodon last month paid his first official visit to Moscow, where he announced he would renounce the Free Trade agreement with the EU and called in favour of closer ties with the Eurasian Union. President Dodon said he would call a meeting with NATO leaders in order to sanction the neutrality of the Republic of Moldova. Political pundits in Chisinau fear Dodon’s visit to Brussels might actually worsen relations between the Republic of Moldova and the West. In another development, Moldovan Parliament Speaker Andrian Candu highlighted the President’s limited remit regarding foreign policy, and that the current Parliament majority has made it its priority to implement the Association Agreement with the EU. (Translated by V. Palcu)

  • 29 January – 4 February 2017

    29 January – 4 February 2017


    Hundreds of thousands of Romanians took to the streets for several consecutive evenings to protest against some measures taken by the new government in Bucharest shortly after taking office. On Tuesday, late at night, the government amended, by an emergency ordinance, the Criminal Code and the Criminal Procedure Code and drawn up a draft law on pardon, initiatives which, according to their opponents, are pushing the country towards Europes periphery. “At night time, like thieves!”, “Dragnea, the countrys sexton”, “Well be here every day”- are only some of the slogans chanted by protesters in front of the Government offices in Bucharest and in many other cities and towns across Romania and abroad. In London, Paris, Brussels and Rome, Romanians expressed their solidarity with protesters at home. These have been the biggest rallies in Romania since the 1989 Anti-Communist Revolution.



    The new emergency ordinance decriminalises the abuse of office if the damage caused falls below 200,000 lei, the equivalent of 45,000 Euros. It also decriminalises the offence of aiding and abetting. Aiding an offender, including by passing legislation, has also been decriminalised. The act of aiding an offender is also not considered a crime if the act in question is committed by a member of the offenders family and second-degree relatives. The government argues that their latest decisions are aimed at harmonising the legislation with the rulings issued by the Constitutional Court, but their opponents say their real goal is to clean the record of politicians, local officials and some business people. The emergency allegedly benefits, among others, the leader of the Social Democratic Party, Liviu Dragnea, who received a two-year suspended sentence for voter rigging, in the 2012 referendum on the impeachment of the then president, Traian Basescu, Liviu Dragnea is now on trial for incitement to abuse of office and forgery, with the damage in this case being below the newly-imposed threshold of 45,000 euros.



    “It is inadmissible and an act of contempt for the government to adopt, at night and without it being on the agenda for the day, an emergency ordinance in such a sensitive area. This cannot be tolerated,” said President Klaus Iohannis, who challenged the emergency at the Constitutional Court, evoking a possible legal conflict between the government, the judicial system and Parliament. The Higher Council of Magistracy, the General Prosecutors Office and the Ombudsman have also taken a similar stand in the mater. In a letter sent to the Speakers of the two chambers of the Romanian Parliament, President Iohannis has asked them to present their message in Parliament as to the changes that the Government brings to the criminal law and to the events these changes have generated. In turn, the right-wing opposition made up of the Save Romania Union and the National Liberal Party has filed a censure motion. The oppositions initiative, however, stands slim chances of triggering the fall of the Grindeanu cabinet, given the comfortable majority that the parties in power – the Social Democratic Party and the Alliance of Liberals and Democrats – have in Parliament. And this is in spite of the fact that not all Social Democratic MPs agree to the governments decisions.



    The American Chamber of Commerce in Romania has expressed its deep disappointment, saying the adopted legislation undermines the rule of law, derails from the fundamental principles of transparency, stability and predictability and strays Romania from the European values and standards. The embassies of France, Germany, the Netherlands, Belgium, Canada and the United States voiced concern about the events in recent days, saying the governments actions risk affecting partnerships with Romania, based on common values inherent to the guiding principles of the EU and NATO. In a joint statement, the six embassies said the changes made by the government undermine the progress made by Romania with respect to the rule of law and the fight against corruption, as well as Romanias reputation in the international community.



    The President of the European Commission, Jean-Claude Juncker, and the Commissions First Vice-President, Frans Timmermans, also expressed concern about the recent developments in Romania. The European officials recalled that the elimination of the Cooperation and Verification Mechanism, monitoring Romania for the past ten years, depended on the irreversibility of the progress achieved in the fight against corruption. A debate on democracy and justice in Romania was held in the European Parliament on Thursday, occasion on which Frans Timmermans warned that Romania might lose its share of European funds. The Commissions First Vice-President urged the Romanian government to withdraw the emergency ordinances. In a letter to Brussels, prime minister Sorin Grindeanu replied that the fight against corruption remains a priority of the Romanian government. At the end of a meeting with the leaders of the Social Democratic Partys local branches, who reconfirmed their support for the governments measures, PM Sorin Grindeanu and party leader Liviu Dragnea held a joint news conference in which they denied the accusations levelled at them. In spite of protests, criticism and warnings, the government in Bucharest seems unwilling to reconsider its decisions.