Radio România Internațional

Tag: government

November 17, 2022 UPDATE

BUDGET The
government of Romania Thursday approved this year’s second public budget
adjustment, with an approx. EUR 104 million increase
in revenues and a similar increase in
expenditure. According to the government, the budget adjustment covers
compulsory spending, operating expenses and social assistance expenses. Funds
have also been rechanneled for implementing programmes with an impact on the economy
and which support households and companies. Financing is also ensured for the
state aid provided to the farmers whose crops were affected by drought this
year. According to the autumn macroeconomic forecast on which the adjustment is
based, the government’s news release also reads, Romania’s GDP is expected to
reach RON 1,396.2 bln in 2022 (as compared to RON 1,372.5 bln taken into
account in the first budget adjustment).

INFLATION The annual inflation in the EU continued to grow in October
to reach 11.5%, as against 10.9% in September. The member states with the
highest rates are Estonia (22.5%), Lithuania (22.1%), Hungary (21.9%) and
Latvia (21.7%), according to data made public on Thursday by the Eurostat.
Compared to September, the annual inflation rate dropped in 11 member countries,
remained stable in 3 countries and went up in 13 member states, including in
Romania (from 13.4% to 13.5%). As many as 18 member countries, Romania
included, reported for September an annual inflation rate above 10%. The member
states with the lowest inflation rates in September were France (7.1%) and
Spain (7.3%). In October 2021, the year-on-year inflation rate in the European
Union was 4.4%, and in Romania it was 6.5%. In Romania, the National Statistics
Institute had previously announced that the year-on-year inflation dropped this
October to 15.32%, from 15.88% in September, with a 20.58% rise in foodstuff
prices, non-food prices going up 14.37%, and service prices 8.31% more expensive.
Just days ago, the National Bank of Romania also released its quarterly
inflation report, according to which the rate is expected to reach 16.3% by the
end of this year and 11.2% next year.

DIPLOMACY The Romanian foreign minister Bogdan Aurescu
Thursday had talks with his counterpart, Jean Asselborn, during his visit to
the Grand Duchy of Luxembourg. The two officials discussed Romania’s Schengen
accession and the security situation at the Black Sea. Bogdan Aurescu also
mentioned, in a joint press conference, the importance of the Republic of
Moldova’s European accession, and said on Monday he would co-chair the third
Support Platform for the Republic of Moldova, in Paris, together with his
French and German counterparts. The Romanian official also thanked Luxembourg
for its plans to deploy a 25-troop unit as part of the NATO Battle Group in
Romania. The decision is pending the approval of Luxembourg’s parliament.

MILITARY A second shipment of French military equipment, specifically Leclerc tanks,
reached Braşov County (central Romania). The equipment is intended to strengthen
the NATO Battle Group (Battle Group Forward Presence-BGFP) stationed in Cincu,
the Romanian ministry of defence (MApN) said. A first convoy of French military
equipment, consisting in armoured vehicles, arrived in Romania on October 23.

ASSESSMENT A mixed team of experts from the European Commission and some member
states, including the Netherlands, will be in Romania this week to assess the
country’s readiness for Schengen accession. According to the Bucharest
government, the visit is voluntary, similar to the one that took place between
October 9 and 11. On Wednesday, the European Commission requested that Romania,
Bulgaria and Croatia be part of the Schengen Area without
delay. The EC points out that Romania has a solid and high-quality border
management and is involved in international cooperation in border police
matters.

HANDBALL Two Romanian players, Cristina Neagu and Crina Pintea, were
nominated for the all-star team of the European Women’s Handball Championship
hosted by North Macedonia, Montenegro and Slovenia and due to conclude this
Sunday. According to the EHF website, Cristina Neagu is nominated for the left
back position, and Crina Pintea for line player. Neagu announced on Thursday that
the EHF Euro 2022 was the last in her career, and that it had not ended as she
had dreamt, after Romania finished only 12th. With 303 goals, Cristina
Neagu is at the top of the combined all-time goal scorers’ list for Women’s and
Men’s EHF EURO events. Romania has taken part in all the EHF Euro editions so
far, with one exception (2006), and its best performance was a bronze medal in 2010. (AMP)

17 November 2022
August 29, 2022

Energy — The Romanian energy minister Virgil Popescu says that the very high profits in the field must be eliminated. He has announced that the Government is considering an additional taxation of the entire energy production, intermediation and supply chain. The leaders of the governing coalition have asked the Finance Ministry and the Romanian Energy Regulatory Authority to make the necessary simulations and present them in the following days, so that, by September 1, the government should be able to establish, through an emergency decree, the method and amount of over-taxation.

Seniors — In Romania, a new edition of the program “Seaside for All” has started today. More than 70 hotels have signed up for the program, and prices are lower than those at the peak of the season by even 75%, the hospitality industry representatives say. Hoteliers wanted to start this program earlier because school will start earlier, on September 5. The “Seaside for all” program runs until the end of September and is completed with special offers for seniors.

Laws — A new parliamentary session begins this week in Romania. High on the agenda are the justice laws, whose adoption is a target assumed by Romania under the National Recovery and Resilience Plan and the Mechanism for Cooperation and Verification. The bills are related to the status of judges and prosecutors, the judicial organization and the Superior Council of Magistracy and are part of a series of changes assumed before the European partners, with the aim of modernizing the entire justice system. Minister Cătălin Predoiu said that, once this commitment is met, the lifting of the Mechanism for Cooperation and Verification could be even considered. The opposition believes, however, that there is no chance for the Mechanism of Cooperation and Verification to be lifted because, in the form approved by the government, the bills would keep intact the political influence on appointing prosecutors.

IAEA — IAEA (International Atomic Energy Agency) Director General Rafael Grossi has today announced that he is on his way to the Ukrainian nuclear power plant in Zaporozhe, which has been the target of attacks in recent weeks, France Press reports. “We must protect the security of Ukraine and of the largest power plant in Europe,” Rafael Grossi wrote on Twitter. In the last 24 hours, new bombings have targeted the perimeter of the nuclear power plant in Zaporozhe (south-eastern Ukraine), Russia and Ukraine announced on Saturday, blaming each other for the bombings. The Ukrainian operator Energoatom has announced that the plant has been operating since Saturday at noon with the risk of leaks and fire.

Tennis — Three Romanian tennis players, Simona Halep, Gabriela Ruse and Jaqueline Cristian, are today playing in the first round of the US Open, the last grand slam tournament of the year. Back in the world top 10, Simona Halep meets the Ukrainian Daria Snigur, Jaqueline Cristian faces Anett Kontaveit (Estonia, 2nd place in the world), and Gabriela Ruse plays against Daria Saville (Australia). Another two Romanian tennis players will play at Flushing Meadows: Irina Begu, who will face the Belgian Elise Mertens, and Sorana Cîrstea, who will be up against the German Laura Siegemund. (LS)

29 August 2022
July 27, 2022

GOVERNMENT The government of Romania
is to pass today the implementing rules for an emergency order on rescheduling
bank loan repayments. Instalments can be deferred for a maximum of 9 months,
with citizens and companies having to prove that their monthly expenses have
increased by at least 25%. The government’s decision follows a steep rise in
inflation and a drop in people’s spending power. The agenda of today’s
government meeting also includes the provision of emergency aid to
underprivileged citizens. The Cabinet would like to spend some EUR 200,000 to
support around 250 families and individuals in difficulty either because of
fires or floods, or because of health problems. Meanwhile, the Ukrainian
refugees in Romania remain a matter of priority for the government, which plans
to take products from the state reserves and distribute them as aid to the
refugees.

ENERGY Romania is widely supported by the US, says the Romanian
energy minister, Virgil Popescu, who had working meetings on Tuesday with
officials from the US Department of State. In a social media post, the Romanian
official said he had received assurances from Washington regarding support for
the development of the Romanian civilian nuclear programme. Virgil Popescu mentioned
that the Romanian authorities plan to complete the funding for the building of
reactors 3 and 4 at the Cernavodă nuclear power plant by the end of the year, and
that the financial support of the US partners is very important. The US also
provides the assistance required for the implementation of a small modular
reactor, the first of this kind in Romania.

DIPLOMACY Romania is deeply anchored
in a Euro-Atlantic system of values, security and unwavering solidarity, as a
result, among other things, of decades of diplomatic work, the Romanian foreign
minister Bogdan Aurescu stated today, on the celebration of 160 years since the
Foreign Ministry was established. He reviewed the history of the institution,
mentioning the outstanding personalities in Romanian diplomacy, and highlighted
the current challenges. ‘When, for the first time since 1945, the threat of a
brutal, unjustified and unprovoked war launched by Russia against our neighbour
Ukraine looms over Europe, the implications can only be of global scale. (…) Together
with our allies and partners, we are deeply committed to outlining a complex diplomatic
response to this aggression that has tragic humanitarian consequences and
incalculable economic costs,’ foreign minister Bogdan Aurescu said.

AWARD The British PM Boris Johnson Tuesday presented the Ukrainian
president Volodymyr Zelensky with the Sir Winston Churchill leadership award,
news agencies report. The ceremony took place at 10 Downing Street, with
Mr. Zelensky attending by video link. Named
after one of Europe’s greatest war time leaders, the award is presented by the Churchill
International Society to honour personalities that have demonstrated
extraordinary leadership skills. Upon accepting the distinction, Volodymyr
Zelensky said that No one knows how much time and effort it will take to
achieve that victory, but the victory is worthwhile. This will become a joint
history, as prominent as it was during Churchill times.

COVID-19 Over 9,800 new SARS-CoV-2
infections were reported over the last 24 hours in Romania, out of some 30,000
tests, the authorities announced today. The number of Covid-19 patients in
hospitals has reached 3,570, with 233 patients in intensive care, and 29
COVID-related deaths were also reported. The health minister Alexandru Rafila said next week Romania might see 10,000 new cases daily. Although spreading
very quickly, this variant of the virus causes less severe forms of the disease.

EMPLOYMENT 70% of the Romanians working 2 jobs do so in order to
increase their incomes in the long run, according to a poll conducted by a
recruitment platform. According to experts, with remote work becoming
widespread, employees are more in control of their time and therefore they find
it easier to juggle with 2 jobs. Even so, most of them (72%) choose a part-time
second jobs. Asked what they find to be the most difficult when working 2 jobs,
6 out of 10 said keeping a balance between personal and professional life is
the biggest challenge. Over 52% of the respondents believe it is impossible to
have 2 jobs at the same time for more than a year. The poll was conducted in
July and involved 1,200 respondents.

WEATHER Bucharest and 14 counties in the south of Romania are today
under a code orange alert for extreme heat, with temperatures expected to reach
40 degrees Celsius in these regions according to the National Meteorology
Agency. Thermal discomfort is severe, with the temperature-humidity index (THI)
over 80. According to weather experts, periods of severe atmospheric
instability are also expected, first in the mountains and central Romania, and
later tonight in the south and south-east of the country as well. In Bucharest
at noon the temperature was 35 degrees Celsius. (AMP)

27 July 2022
July 20, 2022

WEATHER Romanian authorities have issued an amber heat alert valid today
in 12 counties in the west of the country, and amber and orange alerts covering
more than three-quarters of the country for the period July 22 – 24. As of
Thursday, the extreme heat wave will cover most of the country, with the
temperature-humidity index (THI) exceeding 80. Highs will generally range from
35 to 37 degrees Celsius, with temperatures of up to 40 degrees Celsius
expected on Friday and Saturday in the west, north-west and south-west.

NATO The Senate, as the decision-making chamber in the
Parliament of Romania, convenes today in a special meeting to ratify the NATO
Accession Protocols of Finland and Sweden. Previously,
the Chamber of Deputies had endorsed the
bill ratifying the protocols. The documents were signed on July 5 in Brussels. Finland’s and Sweden’s decision to
join the North-Atlantic Alliance comes amid security concerns related to
Russia’s invasion of Ukraine.

HOLIDAY Every year on July 20 Romania
celebrates Aviation and Air Forces Day, which overlaps the religious holiday of St.
Elijah, regarded as the patron saint of pilots. In Bucharest, a military ceremony is held
today, which brings together over 20 military aircraft of the Romanian, British
and Italian Air Forces, Interior Ministry and Intelligence Service helicopters,
a Tarom plane and 4 planes from the Romanian Air Club. Military aircraft will
be flying over other cities across the country. The Romanian military aviation
was established in 1910,
when Aurel Vlaicu designed the first military aircraft.

COVID In Romania, the National Public
Health Institute announced that in the previous week 171 Omicron infections
were confirmed in the country. All of these are SARS-CoV-2
variants that cause concern. According to the institution, by July 17, as many
as 6,611 Omicron infections had been reported. The number of COVID-19 cases
continues to rise, and experts say the current wave is caused by an Omicron
sub-variant of the coronavirus, which spreads a lot more quickly and is able to
infiltrate the protection given by
the current vaccines and previous infections.

GOVERNMENT The government of Romania is
scheduled to pass a bill today concerning the procurement of some of the
most advanced electric trains, powered by hydrogen fuel cells. Only 3 countries
in the EU are currently using or testing such trains. The Transport Ministry
plans to purchase a total of 12 hydrogen electric trains. Also in the transport
sector, the government intends to start expropriation procedures in order to
widen the Bucharest South ring road. The Cabinet will also discuss the
2022-2027 National Strategy on Research, Innovation and Smart Specialisation,
which will create the framework for an efficient and effective spending of national
funds. Two other documents are due to be reviewed today, a memorandum concerning
talks with the Organisation for Economic Cooperation and Development on non-reimbursable
EU funding, and another memorandum endorsing the 2022-2024 strategy for
governmental debt management.

ANTI-SEMITISM The
pandemic context, vaccination campaigns, public campaigns raising awareness on
the rise in cases of anti-Semitism and the information on the history of the Holocaust
are the main factors contributing to a strengthening of online and offline hate
speech, reads the latest monitoring report issued by the ‘Elie Wiesel’ National
Institute for Holocaust Research in Romania. According to the institution, vandalism
cases, the praising of inter-war far-right figures and people convicted for war
crimes or known for their extremist attitude, anti-Semitic messages in
Parliament and minimising the memory of Holocaust victims remain common
occurrences in Romania. Central authorities have reconfirmed their commitment
to fight extremist actions by endorsing a National Strategy for preventing and
fighting anti-Semitism, xenophobia, radicalisation and hate speech and by
introducing Jewish and Holocaust history as a school subject, the report also
says. However, the lack of awareness and responsibility among local authorities
hinders the implementation of the principles upheld by the central authorities. (AMP)

20 July 2022
July 5, 2022

CODE
The latest amendments to Romania’s Fiscal Code have been in the so-called
decisional transparency phase until Friday and are to be endorsed by the
government next week. Among the amendments agreed upon by the PSD-PNL-UDMR
government coalition with the declared purpose of increasing state revenues,
are those focusing on raising tobacco and alcohol excise duties, the VAT in the
hospitality industry and property owner’s taxes. Gambling revenues up to 3,000
RON will be taxed by 10%, those between 3,000 and 10,000 RON by 20% and those
over 10,000 RON by 40%. According to government sources, another measure envisages
a 5% VAT for purchased houses with a maximum value of 600 thousand RON and a
surface up to 120 square meters. Other amendments are expected to increase house
owner’s taxes by 60%. Taxes in the hospitality industry may also change so they
may not be lower than 1% of the turnover starting next year.

REFUGEES According to the General Border Police Inspectorate, 107,837
people entered Romania on Monday, out of whom 9854 are Ukrainian citizens.
Since February 10th 2022, two weeks before the Russian invasion,
1,457,561 Ukrainian nationals have entered Romania.

SPORTS 494 swimmers from 42 countries are competing in the European Junior Swimming
Championships underway in Bucharest until July 10. The host country, Romania,
is being represented by 26 athletes, 14 boys and 12 girls including the double
world champion in the 100 and 200 meters freestyle race, David Popovici. The 17
year old champion has already qualified for the semifinals of the 200 meter
freestyle race. Aissia Claudia Prisecariu and Rebecca-Aimee Diaconescu have
qualified for the women’s 50 meter backstroke race while Ana Maria Sibiseanu
has qualified for the semifinals of the women’s 200 meter freestyle race.

TENNIS US
tennis player Amanda Anisimova will be playing Romanian Simona Halep in the
quarter finals of the Grand Slam tennis tournament in Wimbledon. In the round
of 16, Halep secured a 6-1, 6-2 win against Paola Badosa of Spain, while
Anisimova defeated Harmony Tan of France 6-2, 6-3. A former world leader, Halep
won the 2019 of Wimbledon and a year earlier the one in Roland Garros.

FOOTBALL Romania’s football champions CFR Cluj are tonight taking on Pyunik
Yerevan of Armenia in the first round of the Champions League qualifiers. The return
game is due in Cluj next week. If CFR qualify for the second round, they will
be playing the winner of the double match pitching F91 Dudelange of Luxembourg
and KF Tirana of Albania. If eliminated, the Romanians will be playing in the
Europa Conference League, which brings together Levadia Tallinn of Estonia,
Vikingur Reykjavik of Iceland, La Fiorita of San Marino and Inter Club
d’Escaldes of Andorra. In Europa League, FCSB will be playing the winner of the
game pitching FC Saburtalo of Georgia against Partizani Tirana of Albania;
Sepsi Sfantu Gheorghe, winner of the Romanian Cup will be playing the winner of
the match opposing Olympia Ljubljana and Differdange 03 of Luxembourg.
Universitatea Craiova will be up against KF Vllaznia Shkoder, which won the Cup
of Albania.

(bill)

5 July 2022
June 3, 2022

UKRAINE 100 days have passed since the start of the Russian invasion in
Ukraine. Since February 24, Russia has captured a sizeable part of its
neighbouring country’s territory, but the Ukrainian army has put up a tougher
resistance than most experts had expected. Russian forces now control around
20% of the Ukrainian territory, the Ukrainian president Volodymyr Zelensky said
in his midnight address, which has become a tradition since the start of the
war. He added that the entire occupied territory is now a disaster area, and
Moscow is fully responsible for this. Violent clashes continue, especially in eastern
Ukraine, where Russia tries to capture Donbas. The fiercest battles are
currently fought in the town of Severodonetsk, the most important one still
controlled by the Ukrainian forces in Luhansk region. Russian forces have
resorted to intensive shelling, including on civilian targets, having
completely destroyed several Ukrainian cities, such as Mariupol, captured after
3 months’ fighting, and Severodonetsk, where two-thirds of the homes are in
ruins. Russia has suffered substantial losses, over 30,000 dead and thousands
of pieces of equipment according to Ukraine, but it still retains superiority
in the field. Moscow is also superior in terms of heavy weaponry, but as of
recently Ukraine is receiving this type of weapons from its Western supporters.

MILITARY Romanian troops and Allies from 5 European
countries and the USA are taking part in a multinational exercise at the
Smârdan NATO Centre in eastern Romania. As part of the exercise, today a drill
is organised in which NATO military use land and air equipment. Taking part in
the training operation, which started on May 24, are over 1,000 Romanian
troops, joined by military personnel from France, Belgium, Bulgaria, Italy,
Portugal and the US. The training session is designed to enhance
inter-operability, so as to enable the Multinational Brigade South-East Command
to manage forces deployed to NATO’s south-east region to protect the Alliance,
the national defence ministry explains.

AID The government of Romania will grant
EUR 140 in aid next month to pensioners whose retirement benefits do not exceed
EUR 400. The measure was approved on Thursday and is designed to help the most
vulnerable pensioners cope with the recent price rises. The government is also
working on an emergency order increasing the value of meal vouchers.

JUBILEE Britain is celebrating these days the Platinum Jubilee of Queen
Elizabeth II, the monarch with the longest reign in the history of the country.
The Royal Family convene today for a religious service at St. Paul’s Cathedral,
celebrating the Queen’s 70-year rule,
however the sovereign will not be present after experiencing discomfort while
watching Thursday’s parade at Buckingham Palace. On Thursday London hosted a
large-scale military parade, with 70 aircraft, some of
them used during WWII, flying over the crowds.

FILM The 3rd edition of the Romanian Film
Festival in Washington, the largest event promoting Romanian cinema in the USA,
begins on June 3rd at Miracle Theatre. Organised by the Embassy of
Romania to Washington and the Romanian Cultural Institute in New York, the festival
is devoted to the 25 years since the signing of the Strategic Partnership
between Romania and the USA. Screened as part of the event, under the heading Reinventing
realism: the Romanian New Wave, are 12 feature films: Blue Moon,
Berliner, The Windseeker, Poppy Field,
Mikado, Unidentified, #dogpoopgirl, Luca,
Man and Dog, Lebensdorf, Otto the Barbarian, and Miracle. The festival
will come to an end on June 19. (AMP)

3 June 2022
June 2, 2022 UPDATE

GOVERNMENT On Thursday the
Government of Romania passed an emergency order under which pensioners with
pension benefits below roughly EUR 400 will benefit in July from financial aid
amounting to EUR 140. The measure is intended to offset the drop in spending
power for vulnerable people, generated by the recent increase in fuel, food and
utility prices. Around 3.3 million people will benefit from the aid. Wednesday
also saw the start of a social voucher distribution programme called ‘Support
for Romania’. The EUR 50 vouchers are intended for over 2.5 million vulnerable
Romanians, and can be used for food purchases.

HOLIDAY Romania, a country
with an Orthodox majority, Thursday celebrated the Ascension of Lord Jesus
Christ, 40 days after his resurrection. Orthodox believers celebrated the event
with painted eggs and traditional Easter meals. Since 1920 Romanians have also
paid homage to their war heroes on Ascension Day. A series of events have been
staged to the memory of Romania’s heroes like religious services as well as
moments of silence in all major institutions across the country. In a message on Heroes Day, the country’s
Prime Minister Nicolae Ciuca said ‘our thoughts of gratitude are today directed
towards those who made the supreme sacrifice for the better destiny of the
generations to come.’

POLL Over 70% of Romanians
blame the war in Ukraine on Russia, according to a poll conducted by INSCOP
Research over May 16th and 21st. Over 87% of the Romanians believe that Russian
leaders must be convicted for war crimes and 65% believe the presence of NATO
and US troops in Romania is a good thing. 50% of the respondents believe
Ukraine will win the war, whereas 26% believe Russia will be the victor.
According to the poll, only 25% of Romanians believe Russia is defending
traditional values against the decadence of the West, as compared to 41% in
February. 67% of the respondents believe that extraction of natural gas from
the Black Sea will significantly reduce the country’s dependence on Russian
gas.

LETTER Romania’s president
Klaus Iohannis has sent a congratulation letter to Her Majesty Queen Elizabeth
II of the United Kingdom of Great Britain and Northern Ireland on her
anniversary and the platinum jubilee, the presidential administration in
Bucharest has announced. The Romanian president voiced his belief that the
Strategic Partnership between Romania and the UK will continue to be
consolidated in the future, for the mutual benefit of both nations. Starting on
Thursday, Britain is celebrating for 4 days the Queen’s 70 years of rule, the
longest in the kingdom’s history. The government has exceptionally approved a
four-day bank holiday allowing millions to participate in various events staged
on this occasion, such as street parties, concerts and military parades.
According to the BBC, the 96-year-old monarch, who has mobility issues and has
recently cancelled several public appearances, is likely to join members of the
Royal Family on the balcony at Buckingham Palace to watch the display.

REFUGEES The government of
Romania Thursday approved the provision of new emergency humanitarian aid
amounting to EUR 185,000 for the management of the Ukrainian refugee crisis. Also
as of Thursday, a governmental information platform is available to Ukrainian
nationals benefiting from temporary protection in Romania. At
protecţieucraina.gov.ro, refugees can find all the necessary information on the
rights and services they can receive, how they can enter Romania or answers to
frequently asked questions in the legal field. The Romanian Border Police
announced that on Wednesday little over 10,000 Ukrainian citizens entered
Romania, down 13% since the previous day. Since the start of the crisis in
Ukraine on February 24, nearly 1.1 million refugees have entered Romania. Most
of them transited the country towards Western Europe, but several tens of
thousands applied for asylum or temporary protection from the Romanian
government. (AMP)

2 June 2022
Government presents 6-month review

Until recently sworn political enemies, the National Liberal Party and
the Social Democratic Party were forced to form a government together 6
months ago. Together with the Democratic Union of Ethnic Hungarians in Romania,
they set out to synchronise their doctrines and form a coalition able to run
the country until the forthcoming parliamentary elections.

It took lengthy and careful negotiations to assign the seats in the
government, and they agreed, among other things, that until the end of November
2023 the prime minister will be the Liberal Nicolae Ciucă, who will be replaced
by a Social Democrat for the remaining period until the general elections of 2024.

The context in which the two parties have to work together is not at all
easy: the effects of the pandemic, the Russian invasion in neighbouring Ukraine
with all the problems it entailed, the skyrocketing energy prices triggering increases
in the price of all products and services and generating record-high inflation,
with severe repercussions on people’s lives.

With the parliamentary election still a long way down the road, the
cooperation between the Liberals and the Social Democrats is smooth, at least
for the time being. Still, the 2 parties presented a review of their 6 months
in power in separate meetings.

The Liberal PM Nicolae Ciucă said the government was gradually drawing
closer to meeting all the goals listed in the governing programme. He added
that the ministries worked hard not to waste the unique opportunities the
country has at this point.

Romania has the biggest economic growth rate in the EU, and over EUR 90 billion
available for development and modernisation, as well as the most important
security guarantees ensured by the EU and NATO membership, Nicolae Ciucă argued.

In turn, the Social Democratic leader Marcel Ciolacu focused on the
social and economic measures to support citizens and the business environment
in the first 6 months in government. He mentioned the raise in minimum wages,
pensions and child benefits, the winter financial aid granted to low-income pensioners
and the extension of furlough benefits.

The opposition sees things differently. After leaving the government
they had formed together with the Liberals, Save Romania Union now argues that
Romania is headed for disaster: the government is borrowing money from the
capital market for the highest interests in the past 20 years, government debt
is over 50% of the GDP, the inflation rate is record-high, prices are out of
control, citizens are growing poorer while party clients are getting richer.

In turn, the nationalist party AUR believes the Social Democrats and the
Liberals have pushed Romania into bankruptcy by doubling fuel prices and
selling the natural gas to be extracted from the Black Sea.

But it is the Romanian voters who will give a final verdict at the
election in 2024. (AMP)

27 May 2022
Vouchers for vulnerable people

The Bucharest Government approved on Monday the granting of meal vouchers to low income people. Half of their total cost, of around 620 million euro, will come from non-repayable European funds and the rest from the state budget. The amount of 50 euro will be put on the beneficiary’s bank card every two months. The distribution of bank cards, valid until the end of the year, starts on June 1st.

The minister of investment, Marcel Bolos, has warned people that the cards’ distribution may take time, given that there are three million beneficiaries. He explained the entire process: The bank cards will be distributed by the Romanian Post National Company. They are issued by authorized units, by the Public Finance Ministry, then taken over by the Romanian Post and distributed to people, who do not need to do anything to get them.

Most beneficiaries of these bank cards are pensioners – around some 2.3 million – with a net income below 300 euro. Disabled people, families with at least two children or single-parent families with a monthly net revenue of less than 120 euros per family member, families entitled to social aid and homeless persons will also benefit this measure.

Under the project green-lighted by the Romanian Government, people who are part of more than one of the above-mentioned categories, will benefit the support granted to one category alone. Social vouchers can be used only for the purchase of food and warm meals, upon presenting an ID card. People who are part of any of these categories but who are undergoing military training, are imprisoned or reside abroad while this measure is in place, will not receive social vouchers.

The agenda of the Bucharest Government also included, on Monday, measures to support investment. The almost uncontrollable rise in the price of construction materials made the Government adjust the price of projects with non-repayable foreign financing. According to minister Marcel Bolos, the measure is needed to support projects under way, such as projects related to transport infrastructure and water and waste systems. (EE)

10 May 2022
Support for Romanian economy

Part of global economy, Romanias economy is going through a difficult time, generated, among others, by the Russian-Ukrainian conflict. The Bucharest Government adopted on Thursday the first measures to support economy, the constructions sector in particular. 1.77 billion lei will be earmarked to ease the impact of the rise in the price of construction materials and of the labour force. According to statistical data for the month of January, the constructions sector contributes 6.6% to Romanias GDP. PM Nicolae Ciuca said that financing lines have already been identified. Nicolae Ciuca: ˮThis sector needs to complete its projects and take on new ones, in the upcoming period, because we have many projects to unfold under the National Recovery and Resilience Plan. Among these measures are two essential components, both leading to the same thing: investing in economy, keeping jobs and doing our best to reach the objective of developing Romania ˮ.

In turn, Development Minister Cseke Attila said there is the risk of certain contracts being blocked and entrepreneurs going bankrupt. He gave some examples of price rises in the constructions sector. ˮ The price of metal went up by 70% over January-March 2022 and that of concrete by 20%. The price of labour has also gone up these months, just like the price of electricity, fuel, iron, wood and brick,ˮ the minister said.

He presented the situations in which support measures in the construction sector apply: ˮThe measures apply to contracts which were still in the acquisition phase when the Government Order No. 15 was adopted, last August. Also, contracts whose public acquisition is under way and offers have not been submitted yet, will be revised. The measures will also apply to contracts under way that do not have a revision clause and to contracts that have a revision clause based on Order 15, in the case of which this new clause regulated under the Emergency Order adopted today cover market realities betterˮ.

On the other hand, the Government green lighted on Thursday the upgrading of the rail infrastructure in Contanta Port, south East of Romania, aimed to ease the managements of additional flows of goods and the development of multimodal transport. Some 200 million lei from the governments Reserve Fund will be allocated to rail infrastructure. According to Transport Minister, Sorin Grindeanu, this measure will also ensure the pace and capacity of all transport activities in the Port of Constanta. (EE)

15 April 2022
April 11, 2022 UPDATE

Aid – The leaders of the ruling coalition in Romania are to decide the final form of the aid package for the population and the economy, in the context of the recent wave of price hikes. There are measures that have been discussed for several weeks – increasing the amounts allocated to food in hospitals, increasing the value of meal vouchers and granting vouchers to the vulnerable population. The minimum wage is also to be increased, a measure which is optional for companies though, and they might introduce the possibility of loan repayment postponement for the population, as happened during the pandemic. Carriers are also to receive support, as they will have part of the diesel costs reimbursed by the state, and grants are provided for small and medium-sized enterprises. Liberal Prime Minister Nicolae Ciuca has said the aid package will ensure the functioning of the economy and protect vulnerable citizens. In turn, the Social Democrat leader, Marcel Ciolacu, has pointed out that this is the first time that a Government comes with such an initiative, and the total amount allocated for the application of the aid package is over 17 billion lei (about 3.5 billion Euros), half of which is covered by European funds.

WB – The World Bank has revised downwards the estimate for Romania’s economic growth this year, from 4.3%, as it estimated in January, to 1.9%. According to the international institution, the economic risks have increased significantly, especially as a result of the Russian invasion of Ukraine. For next year, the World Bank has improved its estimate of the Romania’s economic growth, to 4.1%, while for 2024 it anticipated an increase in the Gross Domestic Product of 4.3 %.

Schengen — The Group of the Progressive Alliance of Socialists and Democrats in the European Parliament is committed to firmly supporting Romanias accession to the Schengen Area. The statement was made in Bucharest by the groups president, Iratxe García Pérez, who stated that Romania met the technical criteria for inclusion in the European free movement area. “There is no excuse for this not to become a reality as soon as possible,” Perez said. Romania should have joined Schengen in 2011, but several European countries have shown their opposition, saying that the country has problems with corruption and the justice system.

EU accession — The Republic of Moldova and Georgia received on Monday, from the European Commissioner for Enlargement Oliver Varhelyi, the questionnaire for their application for EU accession. The document serves as a basis for accession negotiations, which, however, involve a laborious and lengthy process. The handing over of the questionnaire by the European Commission is an important stage on the European path of the Republic of Moldova, and Romania is by its side and offers its full support, Romanian President Klaus Iohannis wrote on Twitter. Prime Minister Nicolae Ciuca welcomed the event, noting that the Romanian government was ready to provide support in formulating the response.

Sanctions — The Romanian Foreign Minister Bogdan Aurescu on Monday hailed the adoption of the new package of European sanctions against Russia (the fifth), stressing the importance of their effective implementation and expressed readiness to discuss new sanctions. He attended a meeting of EU foreign ministers in Luxembourg. As for Ukraine, Aurescu expressed concern over the growing number of reports of war crimes and crimes against humanity and underscored Romanias support for the International Criminal Courts efforts to investigate them. The Romanian Foreign Minister said that the unity and solidarity of the EU, as well as the coordination with the USA, NATO and other partners remained fundamental in counteracting the impact of the war in Ukraine.

Visit — Romanias energy security, tougher measures against Russia, the consolidation of NATOs eastern flank and the impact of the war in Ukraine on the Romanian economy were the main topics of discussion at the meeting, in Bucharest, of the Senate Speaker Florin Citu with a delegation led by the leader of the Republican minority in the U.S. House of Representatives, Kevin McGarry. The two sides highlighted, among other things, that nuclear power projects were a priority for increasing Romanias energy security and reducing its energy dependence on Russia. The importance of the international community adopting a unified and coherent response to the actions of the Russian Federation against Ukraine was also discussed.

Motion — On Monday, the Chamber of Deputies of the Romanian Parliament rejected a simple motion submitted by Save Romania Union – USR against the Environment Minister, Tanczos Barna. The opposition party claimed that the minister of the Democratic Union of Ethnic Hungarians in Romania – UDMR in the ruling coalition would be the main culprit for illegal deforestation, environmental damage, the states incapacity to take advantage of green economy opportunities and for the contemptuous attitude towards civil society, USR representatives say. Tanczos Barna claimed that the so-called illegal deforestation was untrue, because no one could prove one single case of illegal logging during his term. (LS)

11 April 2022
National strategy to reduce poverty

The Bucharest Government approved on Wednesday the National Strategy on Social Inclusion and Poverty Reduction and the Action Plan for the period 2022-2027. Their purpose is to reduce the number of people at risk of poverty or social exclusion by at least 7% until 2027, as compared with 2020. According to data made public by Eurostat last year, there were around 6 million persons at risk of poverty and social exclusion in Romania in 2019, accounting for 31.2% of the population, as compared with around 9 million such persons or 44.2% of the population in 2008. The National Strategy includes, among other, measures to combat poverty, the right to social assistance, access to services of general public interest, social and economic participation of vulnerable categories in terms of the human rights observance, as well as recovery and resilience measures in the social security system, in the context of the Covid-19 pandemic and in other special situations.

The document passed by the Government has four strategic objectives. Among them is ensuring decent living standards for all and combating transitional situations of resource poverty, so that they do not turn into structural poverty and social exclusion problems. Another objective is making social investment, which means addressing directly the causes of poverty transmission from a generation to another. Modernising the social protection system and improving administrative capacity for the coordination of these measures is also stipulated. The implementation of these measures is mainly financed from European funds and from the budget of every relevant institution or public authority. The Government also earmarked 160 million lei (32 million euro) for the setting up of 100 day social centres for elderly.

The Government will soon increase the amount for inpatient meals, to around 4 euro a day, according to Marcel Ciolacu, head of the Social Democratic Party, part of the ruling coalition. According to Ciolacu, the Health and Finance ministers have already agreed on it, with the measure likely to take effect next week at the latest, being an urgent measure prompted by the accelerated rise in the price of food.

A package of social and economic measures for the population is to be discussed Monday, at the meeting of the ruling coalition. The version proposed by the Social Democratic Party includes provisions such as vouchers worth 50 euro granted every other month to people with pensions below 300 euro and vouchers worth 30 euro for school kits and clothing for one-parent and low-income families. According to the social-democrats, this social package, supported also by the European Commission, could be financed from European funds with up to 700 million euros. The version supported by the National Liberal Party, in the ruling coalition, includes doubling the value of food vouchers, to around 100 euro, to be granted at least until next June. (EE)

31 March 2022
Government sets up task force on Ukraine

Romania supports an immediate end to the military attack on Ukraine, to enable diplomatic efforts to be resumed, PM Nicolae Ciucă said. “What we see is an unprovoked aggression against a sovereign and independent state, a member of the United Nations. The Russian Federation has chosen armed force to fulfil revisionist political goals,ˮ Nicolae Ciucă added. He emphasised that Bucharest stays constantly in dialogue with its NATO allies and EU partners.

Mr. Ciucă Thursday set up a government task force to handle the situation triggered by the military conflict in Ukraine. The main responsibilities of the group are to monitor the situation and to coordinate the measures taken by governmental agencies in order to make sure that all public services are operating.

According to the PM, the relevant governmental agencies are prepared to take over possible refugee inflows. “We reiterate our solidarity with the Ukrainian nation, and we are ready to provide humanitarian aid to those in need. We are monitoring the situation of the Romanian nationals in Ukraine and we are prepared to provide consular assistance and support through the inter-institutional task group with the Foreign Ministry,” the head of the Romanian government added.

Romanian authorities say Romania could receive 500,000 Ukrainian refugees. In a first stage, they will be hosted in camps located in 4 counties, namely Maramureş (north-west), Botoşani (north-east), Suceava (north-east) and Tulcea (south-east). But other counties as well, such as Braşov (centre), Galaţi (south-east) and Vaslui (east), voiced willingness to accommodate refugees.

Meanwhile, many Ukrainian citizens, mostly of Romanian descent, have already reached Romania, trying to escape the war. Most of them come from border areas.

On the other hand, PM Nicolae Ciucă emphasised that Romania benefits from the strongest security guarantees in its history. He pointed out that Romania, along with its fellow EU member states and with its NATO allies, especially in light of its strategic partnership with the US, is part of the most robust protection umbrella comprising the worlds democracies.

“The security and safety of Romanian citizens are in no way affected,” Mr. Ciucă promised. He also said that the authorities have made sure that Romania has enough natural gas stocks to cover the demand during the cold season. “We are constantly monitoring and measuring natural gas imports and exports on all routes in the country, to make sure we can take any measure required to secure steady gas supplies,” the prime minister explained. (A.M.P.)

25 February 2022
Measures to manage the energy crisis

In Romania, gas and electricity bills have skyrocketed in recent months, following the market liberalization and significant global increases. Many bills have doubled and, in some cases, increased 4-5 times, although there is a law under which the prices of these utilities are offset and capped for the period November 1, 2021 – March 30, 2022. In this context, the Romanian government has decided on new measures to protect the population and businesses from the effects of rising energy and gas prices.

The measures will be applied for one year, guaranteeing the predictability and stability that citizens and the business environment need. Thus, from April 1, single rate tariffs will be applied for household and non-household consumers. As for the household consumers, those who will use up to 100 kilowatts of electricity per month will have a fixed rate of 0.68 lei/kwh. According to the authorities, there are currently over 4 million households that fall into this type of consumption. Instead, those who will consume between 100 and 300 kilowatts per month will pay a little more, namely 0.8 lei per kilowatt. Another 4 million households fall into this second category of consumption, the data show. For non-household customers – SMEs, public institutions, hospitals, schools, kindergartens, places of worship, town halls, universities, NGOs, as well as other such institutions – there will be a single rate tariff of 1 leu/kwh.

For natural gas, household customers who will have an annual consumption of up to 1,200 cubic meters will benefit from a tariff of 0.31 lei/kw. For non-household consumers, the cost of natural gas will be 0.37 lei/kw. In the case of large energy consumers, electricity bills will be reduced by 20%, and other aid schemes will be adopted for natural gas. The budgetary impact for electricity and natural gas will be about 14.5 billion lei (2.93 billion Euros) by the end of this year. All these tariffs could be adopted by the government next week.

On the other hand, the authorities also decided on a series of additional measures, without violating European rules, which would expose Romania to the infringement procedure. Thus, the rate of return on the supply cost will be of maximum 5% for suppliers and an additional tax is introduced for trading activity on the Romanian market, in order to discourage repeated transactions that may lead to higher prices. At the same time, the green certificates will be suspended until the end of 2022 and their validity will be extended with a period similar to that of suspension, a measure that will temporarily reduce the fiscal pressure on the budget, which will thus better support the measures to protect the population and the economy. According to the government, the implementation of the new measures after April 1 will allow the “sustainable” continuation of the states efforts to provide protection to the population and the business environment, which, for a year, will have a price stability while observing the free market rules. (LS)

25 February 2022
Government aid to help cover electricity bills

The price of electricity and natural gas in Romania followed the upward trend in Europe, and the government is currently looking for solutions to extend the aid schemes in the energy sector.

Last week 2 such schemes were approved, targeting energy producers and the local administration or inter-community development associations that put up or upgrade energy facilities.

A memorandum was also endorsed, extending the aid schemes for large energy consumers. According to the government spokesman Dan Cărbunaru, over EUR 82 million will be channelled to those investors that tap into renewable energy sources. The energy ministry was tasked to hold consultations with the European Commission regarding the extension of the state aid programme to support large energy consumers.

Dan Cărbunaru: “Everybody is affected, not only the smaller households, but big consumers as well. Obviously, we are talking about large amounts of money and the procedure requires the approval of the European Commission. The government was tasked with initiating talks as soon as possible, so that major consumers in Romania may continue to benefit from state aid in due time.”

Dan Cărbunaru also says that these measures are intended to preserve both the competitiveness of Romanian companies compared to other competitors in the EU and outside it, and to keep the around 200,000 jobs in these sectors.

Dan Cărbunaru: “These state aid schemes were implemented in Romania in 2019-2021. They were effective, given that these companies in energy-intensive sectors contribute an annual 6% of Romanias GDP. An important element to take into account are the jobs that a company benefitting from such state aid has to keep in place.”

In the forthcoming period, the government is to finalise new support measures for household consumers to cope with the surge in energy prices. Apart from the measures taken so far, the government plans to continue to shield the economy and households from the effects of the energy crisis after April 1 as well.

Dan Cărbunaru: “These support packages being prepared by the government are almost ready. I can confirm that the PM requested all stakeholders to find a solution which is as quick, as comprehensive and as easy to implement and to explain as possible.”

Within 2 weeks the government will have ready a set of measures concerning electricity bills, the finance minister Adrian Câciu said in his turn. (A.M.P.)

14 February 2022