Tag: industry

  • US – EU trade war?

    US – EU trade war?

     

    Not without other economic strengths, such as being the largest Romanian river port and a university city, or its position next to the Moldovan and Ukrainian borders, Galati has been revolving for decades around its steelworks, in turn the largest in the country.

     

    Opened in 1966, the plant had over 50,000 employees six years later. A 2011 survey showed that two-thirds of the population of Galati had worked or were still working in the mill or in its related plants. The city and county’s star football team itself, a champion of Romania 14 years ago, is called “Oţelul” (“Steel”).

     

    After the collapse of the communist dictatorship, the plant was privatised. Today it is owned by Liberty House Group, founded by the Indian-born British businessman Sanjeev Gupta. And it is now feeling the full impact of the general crisis in the energy-intensive European industry.

     

    On Wednesday, dozens of Liberty Galati employees protested over delays in the payment of salaries and other rights. The plant has been out of work for 9 months, and its management obtained court approval for a settlement procedure which allows for a 4-month postponement of the payment of creditors’ claims.

     

    For the time being, the Galati steelworkers are not considering an all-out strike, and say they are still waiting for clarifications from the management. The Social-Democratic MEP Dan Nica, who has been living in Galaţi for 40 years, warns against the danger of the plant closing, which would leave thousands of families without incomes:

     

    Dan Nica: “The European industry is in the worst situation it has ever been. The Galaţi plant is in great danger of ceasing its operations, and tens of thousands of people may be losing their jobs. The same is true for the aluminium industry, the same is true for the cement industry, the chemical fertiliser industry, because we failed to take appropriate measures: high energy prices, imports from countries outside the European Union that are made with high carbon dioxide emissions and that have invaded the European Union market, the lack of financing from any source, EU programmes, the European Investment Bank that refuses to finance all these programmes.”

     

    In addition, experts say, the increase in American duties on steel imports will severely impact the EU steel industry and implicitly Romania. The MEP Iuliu Winkler (Democratic Union of Ethnic Hungarians in Romania:

     

    Iuliu Winkler: “This means adding an extra 25% to the costs, so it actually comes to deepen the crisis affecting the steel industry in both the European Union and Romania, because it is a crisis generated, first and foremost, by the price of energy. Energy is about 3 times more expensive in Europe than in the United States and that destroys the whole concept of ​​European competitiveness.”

     

    In terms of volume, Romania is the third-largest European steel exporter to the United States and, together with Germany, the main aluminium exporter. (AMP)

  • Working in Romania

    Working in Romania

    The Romanian government has approved a law on implementing the Adequate Minimum Wages, with a view to integrating the EU directive 2041 into the national legislation. The gross minimum wages in Romania will be updated according to the purchasing power, the general level of wages and their distribution, in keeping with the wage growth rate and the labour productivity at national level.

    The law will be applied to all categories of employees.  Under the EU Directive 2041 in 2022, the minimum wage cannot be less than 50% of the gross average earnings. At present, the value of the gross minimum wage in Romania is roughly 660 Euros and is expected to rise up to roughly 740 Euros starting July 1st. The medium net wages in Romania in April stood at 1.048 Euros 6.4 Euros higher than in March, says the Statistics Institute. The highest wages were registered in the area of IT services, roughly 2.405 Euros, whereas the lowest were found in the clothing industry, nearly 560 Euros). The law, endorsed by the Executive is to be submitted for urgent Parliament approval.

    Romania’s President, Klaus Iohannis, has promulgated a law under which paternity leave will be granted to all fathers who are employees under a legal labour contract.  The document does away with the stipulations about the ensured quality of the owner within the social insurance system and introduces some provisions through which other categories of people are included, such as those with contracts for sports activities, individual labour conventions, mandate contracts, management contracts, those involved in activities following a position of public dignity and those under management and administration contracts. The paternity leave has also been extended from five to ten working days and the compensation is equal to the wages of that certain period being funded from the state budget.

    During the periods of extremely hot weather, with temperatures above 37 Celsius and a comfort index over 80, employers in Romania are taking measures to improve the working conditions and maintain the health of their employees. Territorial Labour Inspectorates say that during the periods of hot weather, employees must benefit from physical activity of reduced intensity and pace, from ventilated rooms, and whenever possible the periods of activity must include pauses in shady places. Every employee must be ensured between 2 and 4 liters of sparkling water. In order to avoid illnesses caused by work in hot weather, the personnel will undergo periodical medical examinations in order to discover the cases, which may become vulnerable in periods of extremely hot weather.  The employees in these situations will benefit from reduced working hours or are allowed to change their jobs. Any violation of the present legal regulations constitutes a contravention punishable by fines.

    According to the National Agency for Employment, nearly 44 thousand jobs are available in Romania presently. Most of the jobs are in the area of security guards, 3,099, shop assistant – 2,232 and delivery men – 1,867. Also in high demand is the unqualified personnel needed in the process of assembling and mounting parts, 1,711. Unqualified workers are also needed on various construction sites, 1,685 jobs as well as cargo handlers with 1,381 jobs available. Romania also needs 911 chef aids, 814 road transporters and 779 lorry and van drivers. A complete job offer is available at the webpage anofm.ro.

    (bill)

  • Provisions for the Automotive Industry

    Provisions for the Automotive Industry

    Romania’s car market is growing by the year, integrating the latest technologies in the field. According to a survey made by the Car Makers and Importers Association (APIA), this market will continue developing in 2024 as well with an estimated growth of 5.3% a moderated pace as compared to that last year. The data released reflects an adjustment to the new economic, social and political dynamics. According to the estimates made public on Monday, the green cars are to amount for 29% of Romania’s total car market by the end of this year with the registered-cars market also on the rise.

     

    However, even with 150 thousand units sold, the Romanian market still is under the level of the years 2018 and 2019, proof of the long-term impact of the Covid pandemic.

    In spite of the challenges though, the eco-friendly cars will remain in the focus of attention and the sales of the fully electric vehicles is also expected to continue their upward trend, even though at a slower pace. Here is APIA chairman, Dan Vardie

     

    Dan Vardie:The APIA 2024 forecast starts from the premise that we are going to see a more conservative growth as compared to last year. Vehicles are going to benefit this growth the most, but the commercial electrified vehicles like lorries and buses are going to see a spectacular development. The market of the fully electric cars will continue to be on the rise at a slower pace though, of only 27.7%, but they will register a significant growth in 2024 as well. However, the market share of the plug-in hybrids will not be that significant but their sales will also be on the rise standing at 9%. The full hybrids will also have a good development. The sales of diesel vehicles are expected to go down in 2024.

    Dan Vardie says that 15 thousand electric cars were sold in Romania last year as compared to Germany with 500 thousand sold. Data shows that the number of green cars to be registered in Romania this year will triple as compared to the diesel ones.

    Producers and importers are foreseeing an increase in the number of electrified cars registered at almost the same level of last year, namely +24.5%.

     

    According to APIA survey, the category of light commercial vehicles is expected to hit a 7.2% growth as compared to last year with a market share of all registered vehicles of roughly 10.8%, at almost the same level last year. The market share of 4×4 vehicles is expected to reach 25.9%, a 14.4% rise in the number of registered vehicles as against last year.

    (bill)

  • April 25, 2023

    April 25, 2023

    VISIT The
    president of Romania, Klaus Iohannis, is on an official visit to Argentina
    today, the last stage of his south-American tour which also included Brazil and
    Chile. He will be received by his Argentinian counterpart, Alberto Fernandez. President
    Iohannis will affirm Romania’s willingness to work with Argentina in promoting shared
    foreign policy goals, including the two countries’ position on Russia’s war of
    aggression against Ukraine, and on its consequences at various levels. The
    talks will also touch on the need to work together to mitigate the negative
    effects of the pandemic on sustainable development, the challenges and
    opportunities of cooperation in various regional formats, the importance of
    consolidating democracy in Latin America and of strengthening the bi-regional
    partnership with the EU. The two leaders will also discuss concrete avenues to
    consolidate and broaden cooperation in key sectors such as energy, trade, IT&C,
    cyber security, agriculture, education, the environment, emergency situations
    and maritime security. A memorandum of agreement will be signed on this
    occasion between the Department for Emergency Situations within the Romanian
    Interior Ministry and the White Helmets, the Argentinian agency in charge of international
    cooperation and humanitarian assistance. A bilateral cooperation document will
    also be signed in the field of agriculture research. This visit by president Iohannis
    in Argentina is the first at this level in 30 years.


    FILM Bucharest is
    hosting today the Gopo Awards Gala, celebrating the Romanian film industry achievements
    this past year. The 17th edition of the even brings together over 900
    Romanian film personalities. The nominations for the best fiction feature
    include ‘Metronome’, ‘Immaculate’, ‘Men of Deeds’, ‘Miracle’, ‘Blue Moon’, ‘You
    Are Ceauşescu to Me’. Alina Grigorei (‘Blue Moon’), Monica Stan and George
    Chiper-Lillemark (‘Immaculate’), Alexandru Belc (‘Metronome’), Bogdan George
    Apetri (‘Miracle’) and Paul Negoescu (‘Men of Deeds’) are nominated for best
    director. The audience award, granted to the Romanian production with the best
    box office performance, will go this year to ‘Teambuilding’, directed by Matei
    Dima, Cosmin Nedelcu and Alex Coteţ. Actor Mircea Andreescu and actress Ioana
    Crăciunescu will receive Gopo lifetime achievement awards.


    SANCTIONS A political agreement on sanctions against actors
    that work to destabilise the constitutional order in the Republic of Moldova
    was adopted in Luxembourg on Monday by the EU foreign ministers. The Romanian
    diplomacy chief, Bogdan Aurescu, emphasised that any measure designed to
    improve security in the neighbouring Republic of Moldova would also benefit
    Romania. Bucharest, he added, is already working with the authorities in Chişinău
    on a first list of people to be subject to these sanctions.


    MIGRANTS
    Austria’s interior minister, Gerhard Karner, will be on an official visit to
    Romania on Wednesday for bilateral talks with his Romanian counterpart Lucian
    Bode, the Austrian mass media report. The main topic of discussion will be
    migration in the EU, with a focus on fighting migrant smuggling and asylum
    abuses, as well as protecting the EU borders. Last year the Austrian official
    opposed Romania’s and Bulgaria’s Schengen accession, on grounds that Romania was
    on the Balkan illegal migration route. The allegation was denied at the time by
    the Romanian government and by EU institutions, including the EUROPOL.


    TENNIS Two
    Romanian players, Ana Bogdan and Sorana Cirstea, are playing today in the first
    round of the WTA 1000 tournament in Madrid. Another Romanian Irina Begu (seed
    no 31), will play straight in the second round, against the winner of the match
    pitting Anett Kontaveit (Estonia) against Karolina Muchova (the Czech Republic).
    Also in Madrid, Jaqueline Cristian will take on Sloane Stephens (US), while Gabriela
    Ruse faces Leolia Jeanjean (France) today, in the last qualifier round of the
    Madrid tournament. (AMP)

  • Focus on the eastern flank

    Focus on the eastern flank


    Fifteen companies from 11 countries, Romania included, have been identified as able to start production in the defence industry, in the context of the EUs 3-pillar plan to boost ammunition deliveries to Ukraine.



    EUR 1 bln will be disbursed to plants for deliveries from existing stockpiles. Another EUR 1 bln will be spent to help ammunition plants replenish depleted stockpiles, while the 3rd pillar aims at increasing the blocs defence industrys capacity for the longer term.



    Romanian facilities are among those that will be able to help cover Ukraines ammunition demand, but they need investments. This is one of the reasons why the European Commissioner for internal market, Thierry Breton, has traveled to Romania and had meetings with senior officials.



    After his talks with PM Nicolae Ciucă, the European Commissioner said he was confident Romania would be able to play an even more important role in the EU defence industry, and added that Bucharests earmarking 2.5% of GDP for defence this year proves that Romania understands that this expenditure contributes not only to protecting the country, but to protecting the European continent as well.



    Thierry Breton also said that, given that the EU has committed to support Ukraines efforts to withstand Russias aggression, we must make sure we have the capacity to deliver the equipment and ammunition it needs, including by boosting EU production capacity.



    In turn, PM Nicolae Ciucă emphasized that strengthening the defence industry would help improve Romanias resilience and capacity to handle future challenges.



    After the meetings with Romanian officials in Bucharest, the European Commissioner visited two defence industry factories run by Romarm, Romanias chief producer and provider of military equipment and services, present in over 50 other markets in Europe, America, Asia and Africa. Romarm is currently trying to revamp its production units, either through partnerships with private companies, or through EU funded projects.



    Also in Bucharest these days is the chair of NATOs Military Committee, admiral Rob Bauer, for talks focusing on the security situation at the Black Sea, on NATOs deterrence and defence missions, and on this years main training events.



    He discussed with the foreign minister Bogdan Aurescu the preparations for the NATO summit due in Vilnius in July and the implementation of the decisions made at the Madrid summit. While at the headquarters of the Romanian Defence Ministry, Rob Bauer also had talks with the line minister, Angel Tîlvăr, and with the chief of general staff, gen. Daniel Petrescu.



    NATO remains a core pillar of Romanias security policy, Daniel Petrescu said, and added that the Romanian Army is always improving its quick and efficient response capacity. Since its first day as a NATO member, Romania has proved its dedication to the Alliance, and has made it clear it understands the value of collective defence, admiral Rob Bauer pointed out in turn. (AMP)


  • November 22, 2022

    November 22, 2022

    PENSIONS The
    ruling coalition in Romania has decided to increase public pensions by 12.5%,
    as of January 1. The increase applies for all pensions, regardless of level,
    but low-income pensioners will also receive additional aid from the government,
    provided in 2 instalments. Child allowances and the allowances for war veterans
    and widows will be adjusted to inflation, while people with disabilities will
    receive a 13th allowance, the ruling coalition also decided.


    VISIT The president of Romania Klaus Iohannis will make an official visit to Latvia
    on Wednesday and to Lithuania on Thursday. On Friday, he will take part in a
    summit with his counterparts from Lithuania, Latvia and Poland, and in an
    international symposium. According to the Presidency, in Latvia Klaus Iohannis will
    have talks with his counterpart Egils Levits, with PM Krisjanis Karins, and the
    parliament speaker Edvards Smiltens. In Lithuania, the official agenda includes
    consultations with president Gitanas Nauseda and the parliament speaker,
    Viktorija Cmilyte-Nielsen.


    NATO Romania will host for the first time, on November 29th
    and 30th, a meeting of the NATO foreign ministers. The meeting will
    have 4 sessions, focusing on the implementation of the Madrid Summit decisions,
    on the war in Ukraine, on energy security and partners. Ukraine, the Republic
    of Moldova, Georgia and Bosnia-Herzegovina, as well as Finland and Sweden, were
    invited to attend. It is for the first time that the Republic of Moldova takes
    part in a NATO ministerial meeting. In fact, in this summer’s summit in Madrid,
    NATO leaders announced measures to support Moldova, Georgia and Bosnia-Herzegovina
    in the current security context in Europe. The foreign ministers of the 3
    countries are expected to discuss in Bucharest means to strengthen their
    defence and resilience capabilities. The foreign minister of Ukraine, Dmytro
    Kuleba, is also scheduled to attend the meeting in Bucharest.


    AID Romania, France and Germany have agreed
    on a new aid instalment to help the Republic of Moldova cope with the energy
    crisis this winter. Officials of the 3 countries convened in Paris for the 3rd
    ministerial conference of the Moldova Support Platform, initiated by Bucharest,
    Berlin and Paris this spring. Moldova is to receive another EUR 100 mln in
    international support to handle the consequences of the war in
    Ukraine, including the energy crisis and the refugee inflow, and also to carry
    on the reforms initiated in order to join the EU, the president of France,
    Emmanuel Macron announced. The Romanian foreign minister said Romania intends
    to pay a first instalment of EUR 25 mln by the end of this year, intended for
    the implementation of projects in education, regional development, and public
    utility services.


    AUTOMOTIVE Romania is the EU’s six-largest car manufacturer, with an
    average of over 40,000 vehicles per month. According to the latest report by
    the European Automobile Manufacturers’ Association (ACEA), nearly 50 million
    cars were produced worldwide in the first 9 months of this year. China comes
    first, with 16.3 million, followed by the US with 5.3 million. As many as 7.96 million
    cars were produced in the EU during the same period, up 5.8% compared to 2021.
    Germany tops the European ranking, with 2.4 million vehicles produced, which is
    considerably less than the 3.4 million cars made in 2019. In Romania, the only
    country where this year’s output was higher than in 2019, 376,000 cars were
    made, of which some 60% were Dacia and 40% Ford. Recently, the Romanian
    Carmakers Association announced that the national output went up 27.7% in the
    first 10 months of the year, compared to 2021.


    EARTHQUAKE Rescue teams in Indonesia
    continue to search for survivors of Monday’s earthquake, in which hundreds of
    people died or were injured. Many victims were school children. The 5.6 Richter
    quake occurred at a depth of 10 km, and destroyed many buildings. According to Reuters,
    Indonesia is on the so-called Pacific ring of fire, an area with many active
    volcanoes that frequently produce tremors. In 2004, a magnitude 9.1 off the
    Indonesian island of Sumatra caused a tsunami that killed 226,000 people in 14 countries,
    with almost half of the victims reported in Indonesia.


    FOOTBALL Today at
    the FIFA World Cup in Qatar, the defending champions, France, will play against
    Australia, while two-times world champions Argentina take on Saudi Arabia. The
    other matches scheduled for today are Denmark vs. Tunisia and Mexico vs.
    Poland. On Monday England defeated Iran, 6-2, and in the same group the US and
    Wales drew 1-1. Also on Monday, the Netherlands, who have played 3 world cup
    finals without winning, defeated Senegal 2-0. (AMP)

  • October 25, 2022 UPDATE

    October 25, 2022 UPDATE

    ARMY DAY The Romanian Army Day was celebrated on Tuesday with a
    series of events staged all over Romania and in other regions around the world
    where Romanian troops are stationed now. Wreath laying ceremonies took place at
    heroes’ monuments around Romania and abroad, in countries like Austria, Bosnia
    and Herzegovina, Bulgaria, the Czech Republic, the Russian Federation, Poland,
    the Republic of Moldova and Hungary. The Army has been and will always be a
    symbol of resilience and an essential element in the development of Romania,
    president Klaus Iohannis
    said on this occasion. He added that Romania has a distinct place within NATO
    and is an indisputable provider of security at the Black Sea and on NATO’s
    eastern flank. According to the Romanian Defence
    Ministry, during WWII, out of roughly 540,000 servicemen deployed, 90,000 were
    KIA, 60,000 MIA and over 330,000 were wounded. After freeing the Romanian
    territory on October 25th, 1944, the Romanian army continued to
    fight in Hungary, Czechoslovakia and Austria alongside the allied troops,
    contributing to the May 9th 1945 victory, which marked the end of WWII in
    Europe.


    DEFENCE The Supreme Defence Council, convening on
    Tuesday in Bucharest, approved updates to key directions of the Army 2040
    programme, including the budgeting for personnel needs,
    reconfiguring equipment procurement programmes and revamping the defence
    industry, as well as measures to better retain skilled military personnel. Army
    2040 aims to help develop national military capabilities that enable the
    government to fulfil its constitutional obligation to safeguard the territorial
    integrity of Romania. To this end, the country will earmark 2.5% of its GDP to
    defence as of 2023.The Council also
    reviewed and approved the Energy Ministry’s plan to improve Romania’s energy
    resilience, so as to protect citizens and to secure continuing supplies of
    electricity and natural gas, for prices that are not a burden to households. The
    Council also discussed the support Romania will continue to provide to Ukraine,
    and looked at ways to counter prospective threats.


    DECREE Romania’s president Klaus Iohannis Tuesday signed a
    decree acknowledging the resignation of Defence Minister Vasile Dincu and
    designating Prime Minister Ciuca as the country’s interim defence minister. The
    Social-Democrat Dincu stepped down on Monday, two weeks after he made a number
    of controversial statements concerning the situation in Ukraine. The Social
    Democratic Party (PSD) has called for an emergency meeting of the ruling
    coalition for a decision on Dincu’s successor.


    COAL Romania has increased its coal output in order to cope
    with the energy crisis. According to the National Statistics Institute, the output
    went up by 1.7% and imports by 13.5% in the first 8 months of the year. The
    National Strategy and Forecast Commission estimates for this year a coal output
    10% bigger than in 2021 and imports 2.8% higher, with the coal production expected
    to grow by 8% next year.


    REFUGEES According
    to the Romanian Foreign Ministry, since the beginning of the war in Ukraine,
    over 2.6 million Ukrainian nationals have transited Romania and over 86,500
    have chosen to stay here. Eight months on from the beginning of the conflict on
    February 24th, Bucharest highlights its active involvement in facilitating the
    transport and transit of Ukrainian grain towards international markets. At the
    same time, the humanitarian hub in Suceava, north-eastern Romania, has
    contributed to 56 humanitarian aid shipments from countries like Italy, France
    or Germany.


    ECLIPSE A partial solar eclipse was visible in Romania on Tuesday.
    According to the Astronomic Observatory in Bucharest, the sun was covered up to
    44% and the eclipse lasted for two hours and a half. (AMP, DB)

  • Trade union protests

    Trade union protests

    Inadequate salaries prompted the employees of the Mechanical Plant and Arms Plant in Cugir, central Romania, to take to the streets late last week. The protest continued this week as well, when over 700 people marched the streets of the town between the 2 industrial units.



    They demand better working standards and an increase in salaries, which they say barely cover their heating and electricity bills. They argue they have not had a pay raise in 2 years. “(We are) Overworked and underpaid,” a female employee says, adding that after 40 years of work, in February she was only paid nearly 320 euro.



    “We will not give in,” and “Unity” were the protesters main slogans. They say they will not give up until their main demand, a 30% pay raise, is fulfilled.



    The Board of Directors of the Cugir Mechanical Plant convened on Monday and offered a 6.5% salary increase. The trade union leader Virgil Matei said people were not happy with the offer.



    The Cugir Mechanical Plant produces various types of weapons, 9mm automatic and semi-automatic pistols and accessories. The unit was set up in 1799, when the region was part of the Habsburg Empire, and was called the Steel and Iron Works. In 2004, the company split into the Cugir Mechanical Plant and the Arms Plant.



    The latter produces semi-automatic rifles, intended for hunting and shooting sports, for the civilian market, in particular in the US. In the military segment, the units produce AKMs for foreign markets.



    Trade unions in the steel industry have also gone on protest. The employees of ALRO Slatina (south) and ALUM Tulcea (south-east), 2 companies running on mostly Russian capital, picketed the government headquarters.



    The workers want a one-year cap on natural gas and energy prices, at the level reported for December 2020, as well as financial assistance for the companies that benefitted from state aid in the past.



    According to sources in the trade union, the slow-down in operations at ALRO Slatina has already triggered negative effects, leading to over 12,000 employees idled in various other industries.



    The leader of the “Aluministulˮ Union, Constantin Popescu, explained that ALRO Slatina has closed down two electrolysis units, with a 3rd one also preparing for shutdown, which is why nearly 500 people were made redundant.



    A total of 40,000 jobs in various related industries are jeopardised if ALRO Slatina downsizes operations, the union leader also said, and warned that the last 2 remaining units risk being closed down. According to Constantin Popescu, the government should help ALRO purchase energy at fair prices. (A.M.P.)

  • Trade union protests

    Trade union protests

    Inadequate salaries prompted the employees of the Mechanical Plant and Arms Plant in Cugir, central Romania, to take to the streets late last week. The protest continued this week as well, when over 700 people marched the streets of the town between the 2 industrial units.



    They demand better working standards and an increase in salaries, which they say barely cover their heating and electricity bills. They argue they have not had a pay raise in 2 years. “(We are) Overworked and underpaid,” a female employee says, adding that after 40 years of work, in February she was only paid nearly 320 euro.



    “We will not give in,” and “Unity” were the protesters main slogans. They say they will not give up until their main demand, a 30% pay raise, is fulfilled.



    The Board of Directors of the Cugir Mechanical Plant convened on Monday and offered a 6.5% salary increase. The trade union leader Virgil Matei said people were not happy with the offer.



    The Cugir Mechanical Plant produces various types of weapons, 9mm automatic and semi-automatic pistols and accessories. The unit was set up in 1799, when the region was part of the Habsburg Empire, and was called the Steel and Iron Works. In 2004, the company split into the Cugir Mechanical Plant and the Arms Plant.



    The latter produces semi-automatic rifles, intended for hunting and shooting sports, for the civilian market, in particular in the US. In the military segment, the units produce AKMs for foreign markets.



    Trade unions in the steel industry have also gone on protest. The employees of ALRO Slatina (south) and ALUM Tulcea (south-east), 2 companies running on mostly Russian capital, picketed the government headquarters.



    The workers want a one-year cap on natural gas and energy prices, at the level reported for December 2020, as well as financial assistance for the companies that benefitted from state aid in the past.



    According to sources in the trade union, the slow-down in operations at ALRO Slatina has already triggered negative effects, leading to over 12,000 employees idled in various other industries.



    The leader of the “Aluministulˮ Union, Constantin Popescu, explained that ALRO Slatina has closed down two electrolysis units, with a 3rd one also preparing for shutdown, which is why nearly 500 people were made redundant.



    A total of 40,000 jobs in various related industries are jeopardised if ALRO Slatina downsizes operations, the union leader also said, and warned that the last 2 remaining units risk being closed down. According to Constantin Popescu, the government should help ALRO purchase energy at fair prices. (A.M.P.)

  • June 13, 2021 UPDATE

    June 13, 2021 UPDATE

    COVID-19 The number of Covid-19 infections remains low in Romania with
    only 69 new cases reported on Sunday. 30 Covid-related fatalities have been
    reported in the past 24 hours while 229 patients are in intensive care. The
    infection rate is going down in Bucharest as well where 0.14 cases per thousand
    have been reported. At present all the Romanian territory is in the green tier.
    On the other hand, the vaccine rollout is moving at a lower pace with only 39
    thousand doses administered in the past 24 hours. Since the vaccine rollout
    commenced in late December 2020, over 4.1 million people have been vaccinated
    in Romania. In another development, the European digital certificate is due to
    become operational in Romania on July 1st. The aforementioned
    document proves that a person has been vaccinated, tested negative or had the
    disease in the past.






    PANDEMIC The mayor of Moscow has reintroduced
    restrictions for both people and businesses after the Covid infection rate has
    reached the figures registered in winter. The number of Covid cases in Russia
    has increased and most of the new cases are in the capital city. On Saturday
    Moscow reported 67 thousand new cases, the highest number since December.
    Employers have been requested to allow at least 30% of the employees to work
    from home. Employees over 65 years old and with chronic diseases have been sent
    to work from home with the exception of those vaccinated. According to the
    authorities, the latest surge in the number of infections is due to people’s
    ignoring prevention and protection rules and to the sluggish vaccine rollout.
    In another development, British Prime Minister Boris Johnson has said the
    government must be cautious as it decides whether to end all Covid restrictions
    in England on 21st June. Cases are rising as the Delta variant
    spreads. Over 176 million infections have been reported worldwide since the
    beginning of the pandemic with 3.8 million fatalities, according to data
    released by worldmeters.info. Most of the fatalities have been reported in the
    USA, India and Brazil.




    G7 At
    the endof their latest summit in
    Cornwall, England, leaders of the G7 countries on Sunday pledged to carry on
    post-Covid economic recovery plans ‘as long as it is necessary’ avoiding past mistakes
    when stimulus measures had been abruptly cut. G7 leaders are also backing a
    minimum global corporate tax and have called for a transparent, evidence-based
    and expert-led WHO investigation into the Covid-19 origins. The G7 members have
    agreed to step up their production and delivery of anti-Covid vaccines around
    the world, European Union Council President Charles Michel said on Sunday. The
    group is to provide one billion doses of the Covid vaccine in the next year and
    will cooperate with the private sector, G20 and other countries to step up
    contribution in the following months.






    SUMMIT Romanian president Klaus Iohannis goes to Brussels on Monday to
    attend the NATO summit where he is expected to back the alliance’s adjusting to
    the present security context so that the organization may become politically
    and militarily stronger. Iohannis is going to reiterate Romania’s commitment to
    contributing to NATO’s operational, conceptual and financial efforts by
    carrying on its 2% GDP contribution to the defence industry. According to a
    communiqué issued by the presidential administration, allied leaders are going
    to choose the guidelines upon which the alliance is going to strengthen its political
    and military role as well as its role as an international player thanks to the
    strategic reflection process NATO 2030.






    (bill)





  • Aid for the hospitality industry

    Aid for the hospitality industry

    Heavily hit by the Covid-19 pandemic, Romanias hospitality sector is hoping to recover this year. The Hospitality Employers Federation has recently asked the right-of-centre coalition government in Bucharest to disregard infection rates in this sector as of 1 June, given that by that date 90% of the staff will have been immunised and around 5 million people will have received vaccines nation-wide.



    According to the Federation president, Corina Macri, the hospitality industry is at a turning point: “after authorities failed to support the sector following the lockdown and arbitrarily restricted our activity for a year, it is very important for the business environment that the reopening be conducted in the best conditions, she said.



    In this respect, apart from decoupling the reopening from infection rate requirements, the Hospitality Employers Federation has also suggested a number of protection measures. These include, among others, shorter opening hours for indoor and outdoor restaurants and bars, 50% occupancy rates or a cap on the number of people seated at a table at 6. The organisation also suggests strict guidelines for the operation of hospitality businesses during the pandemic, with the Federation undertaking to communicate them to all stakeholders and to firmly recommend their implementation.



    Another proposal is to reintroduce a financial support measure, under which the government covered 41.5% of the gross salary of former employees who are re-hired after they have been idled. Employers also want a salary tax facility or an increase in the minimum wages in the sector.



    The Economy, Entrepreneurship and Tourism Ministry has already announced drafting an order under which over 73,000 companies in the hospitality sector across the country, whose operation has been affected by the COVID-19 pandemic, may benefit from a state-aid scheme. The draft order, which is currently under public debate, earmarks 500 million euro for this scheme, with the money coming from national public funds, foreign funding or both.



    The scheme will run until the end of the year, with payments to be finalised by the end of June 2021, within budgetary constraints. The ceiling for the state aid to be provided to each beneficiary is 800,000 euro, the document posted by the ministry also reads. (tr. A.M. Popescu)

  • Talks on supporting the hospitality industry

    Talks on supporting the hospitality industry

    Representatives of the hotel, restaurant and café sector (HoReCa), one of the most affected by the COVID-19 crisis in Romania, discussed with PM Ludovic Orban and the economy minister Virgil Popescu about a state-aid scheme to offset the losses incurred by the companies in this sector.



    According to the economy minister, the estimated budget is 500 million euros, and the financing ceiling for a company will be 800,000 euro. Next week at the latest, the Government will come up with a bill approving the mechanism under which hospitality companies and travel agencies will receive these grants.



    The state-aid scheme will be implemented after being approved by the European Commission, and the implementation mechanism will be facilitated by a software solution to cut the red tape.



    Other measures discussed at the meeting were the granting of furlough payments to employees, and means to implement flexible working hours. The PM believes a 6-month extension of the furlough programme to be necessary for the employees whose activity was affected by the health crisis, and flexible working hours to be useful and meeting the needs of the HoReCa sector.



    The talks between the government and industry officials will continue in the coming period. So far, the government has granted tax cuts, continued to pay furlough benefits and paid over 41% of the salaries of employees.



    Restaurants are currently closed in Romania over the large number of coronavirus infections, and the cold weather prevents outdoor bars, cafes and restaurants from running at full capacity. According to statistics, 10,000 restaurants have been closed in Romania so far over the pandemic. Moreover, estimates indicate that the next 6 months will be dramatic for the hospitality industry, with 70-80% of the hotels expected to shut down. Business owners say they have lost nearly 80% of their turnout and that almost 100,000 jobs in the sector, accounting for almost half of the total, will be lost by the end of the year.



    This is why representatives for the industry request concrete measures to be taken by the government, so that the industry may survive in the forthcoming period. According to entrepreneurs, the industry will not return to normal parameters until 2023, and the hotel industry in another 2 years.



    A survey conducted recently at the request of the HORA Romanian Hotel and Restaurant Employers Organisation says that almost 8 out of 10 Romanians believe restaurants should be reopened. (translated by A.M.Popescu)

  • October 6, 2020

    October 6, 2020

    COVID-19 On Tuesday in Romania record-high figures were reported both in terms of the number of deaths (73) and patients taken in intensive care in the last 24 hours (608). 2, 121 new infection cases were also reported, taking the total number of confirmed cases since the start of the pandemic to nearly 140,000. Some 110,000 of them have recovered. Romanian authorities announce new restrictions in localities with more that 1.5 cases per thousand capita in the past 14 days. The National Committee for Emergency Situations last night requested county committees to look at the local situation and introduce additional containment measures, such as banning private events or closing restaurants. Restrictions will also be introduced for travelers coming from countries with more coronavirus cases than Romania.



    INDUSTRY The Romanian airspace company Romaero received from the American firm Raytheon a first order for components for Patriot anti-missile systems, more specifically for parts that will be included in the construction of the Patriot radar. After this first order has been completed, the Romanian company will have a chance to receive subsequent orders from all the 17 countries that own Patriot systems. Romaero is the second Romanian company to receive orders for parts and pieces, after Aerostar Bacău in 2019.



    DEFENCE Romanias Supreme Defence Council is holding an online meeting today, chaired by president Klaus Iohannis, to look at defence and national security issues. The agenda includes topics like such as a strategic defence analysis, the White Paper on Defence, the implementation plan for the national defence strategy 2020 – 2024. The last meeting of the Council was held in late May. PM Ludovic Orban, deputy chairman of the Council, requested a COVID-19 test on Monday, after he was recently on a TV set with a person who tested positive for the virus. The Government subsequently announced that the test was negative, but that the PM will stay in quarantine until Thursday, working without physical contact with any other individuals. Ludovic Orban will be tested again on Thursday.



    EUROSTAT Romania has imported face masks worth 272 million euros in the first half of 2020, according to data made public by Eurostat today. In the first 6 months of the year compared to 2019, the EUs face masks imports rose 1,800%, from 800 million euro to 14 billion euro. Data per capita point to substantial differences between member states. Luxembourg, which distributes face masks under a governmental policy, has imported by far the largest number of such products per capital in the EU (121 euro per capita). Next come Belgium, Germany and France, the only countries with imports above 50 euro per capita. At the opposite pole, imports were under 10 euro per capita in Cyprus, Poland, Sweden, Croatia, Greece and Bulgaria. Romania is ranked in the lower half of the list, with face masks imports amounting to 14 euro per inhabitant.



    NOBEL Scientists Roger Penrose (UK),
    Reinhard Genzel (Germany) and Andrea Ghez (USA) were awarded on Tuesday the Nobel
    Prize for physics for their discoveries related to black holes. On Monday, researchers Harvey J. Alter, Michael Houghton and Charles M. Rice were awarded the Nobel Prize in Physiology or Medicine for 2020, for the discovery of the Hepatitis C virus. The recipients of the Nobel Prize for chemistry, literature and peace will also be announced this week. The winner of the Nobel Prize for Economy will be made public on October 12. With the latter’s exception, the other Nobel Prizes were created by the Swedish industrialist Alfred Nobel (1833-1896), the inventor of the dynamite. In 2020, each Nobel Prize will be accompanied by a $1.1 million check, which is more than in previous years. The Nobel Awards organisers have announced that, due to the COVID-19 pandemic, the prize recipients will most likely receive their awards in their home countries, without having to attend an award ceremony in Stockholm.



    PANDEMIC The total number of COVID-19 cases worldwide is over 35.7 million, with over 1 million deaths, according to worldometers updates. The US president Donald Trump returned to the White House, after receiving treatment for the virus. He urged people, in a video message, not to be scared or overwhelmed by this disease. The US remains the country with the largest number of cases and deaths in the world. Record-high figures are also reported in a growing number of European countries, and additional protection measures are introduced across the continent. The Czech Republic and Slovakia reintroduced a state of emergency on Monday. (translated by: A.M. Popescu)

  • The car industry, a pillar of the Romanian economy

    The car industry, a pillar of the Romanian economy

    The car industry is one of the
    pillars underlying the development of the Romanian economy, and this sector was
    the engine behind Romania’s coming out of recession, said the Romanian PM
    Viorica Dancila at the 2019 Car Industry Forum hosted by Craiova, southwestern
    Romania. According to the PM, the car industry means products exported with
    high added value, both in Romania and the entire Europe, which is essential for
    economic competitiveness, and it also creates stable jobs and a better life for
    the citizens. The government will continue to support the development of the
    Romanian car industry by means of new projects, PM Dancila went on to say. She
    admitted that the most stringent issue facing the car industry is the lack of
    motorways. She announced that the legislation was changed so as to reduce the
    construction deadlines and to develop the infrastructure, including through
    public-private partnership. Viorica Dancila:




    Most difficulties came from the
    prolix legislation with its complicated procedures that generated unpermitted
    delays on projects that were much awaited by the citizens and the business environment.
    The government looked at the causes and changed the Law on public procurement
    and that on public private partnership, in order to unblock important
    projects.




    The PM announced that one of the
    issues discussed with the Ford officials was related to the solutions
    identified by the government to speed up major investments in infrastructure. According
    to the PM, the new investment projects of the American company were a sign of
    trust in the Romanian economy and a premise for the development of the entire
    region. Viorica Dancila:




    The fact that the Romanian car
    industry has reported constant growth in recent years and that in 2018 it
    registered a record car production proves that we are on the right track and
    that Romania provides good conditions for the business environment.




    The PM added that the Romanian
    government was firmly committed to continuing to develop policies and projects
    meant to support the car parts and car manufacturing industries. At the same
    time, the government wants to grant support by means of state aid schemes and
    by encouraging the purchase of new, non-polluting cars. At the car forum in
    Craiova, the American carmaker Ford announced it would invest another 200
    million euros in the factory there, with the aim of increasing production to
    250,000 cars annually. According to Ford officials, the company turned the
    factory in Romania into one of the most modern such factories in Europe and
    became the second largest exporter in the country. The president of Ford
    Romania, Ian Pearson, stated that ever since they took over the factory in
    Craiova, they have made investments of almost 1.3 billion euros. The company
    will hire another 1,700 people by the end of the year to reach a total number of
    6,200 employees.

  • March 20, 2018

    March 20, 2018

    PARLIAMENT – The laws on the judiciary have been endorsed by the Chamber of Deputies today, and are to be submitted to the Senate for a final vote. Previously, a special parliamentary committee passed the bill on the magistrate profession and the one regulating the organisation of the Higher Council of Magistracy. On Monday, the same committee passed the 3rd law in this package, the one concerning the organisation of courts. The bills were brought in line with the decisions of the Constitutional Court, after the Opposition and the High Court of Cassation and Justice challenged the changes adopted by Parliament. These changes include by-passing the President of Romania in the procedure for appointing the chiefs of the Supreme Court, and transferring this role to the Higher Council of Magistracy. The National Liberal Party and Save Romania Union, in Opposition, announced that the new amendments give them reasons to bring the new justice laws before the Constitutional Court again. In fact, Save Romania MPs have today resorted to an unusual protest in the Chamber of Deputies, where they lined up wearing T-shirts that read “#NoCriminals. Some of the changes originally operated on the justice laws have generated large-scale protests among civil society and magistrates.




    DEFENCE – The Supreme Defence Council is convening in Bucharest today, in a meeting chaired by President Klaus Iohannis. The agenda of the meeting includes a review of the work of public institutions in the national security sector in 2017, as well as the main objectives for this year. The Council members are to analyse the work of the Cyber-Security Operations Council and the National Cyber-Security Response Centre. The latter focuses on developing the technical capabilities needed in order to improve the cyber security climate in Romania. Last years activity of the Supreme Defence Council will also be analysed, along with other topics relevant to the national security.




    PROTESTS – In Bucharest, the SANITAS trade union federation has today picketed the headquarters of the Ministry for Public Finances. Unionists demand, among other things, the implementation of pay raises for all healthcare and social assistance personnel as of March 1, the scrapping of the ceiling on bonuses and the offsetting of the income decrease caused by the implementation of a new pay scheme on January 1. Also today, representatives of the National Federation of Trade Unions in Industry have picketed the Economy Ministry, against the backdrop of discontent with the law regulating the national defence industry. The union president, Ioan Neagu, said that at the beginning of the year the Government was supposed to issue a resolution to regulate the number of employees that this industrial sector may absorb per year.




    FRANCOPHONIE – Like other countries in the world, Romania is celebrating International Francophonie Day, marked every year on March 20. Last night the Romanian Embassy in Paris and the Romanian Cultural Institute organised a show at the Louis Jouvet Theatre in Paris, to mark 25 years since Romania joined the Francophonie Organisation. In this context, Ambassador Luca Niculescu mentioned that in December 2018 – July 2019, Bucharest and Paris will organise the Romania-France season, a large-scale joint project focusing on contemporary culture and creativity, as well as areas like education, economy, sports and tourism.




    FRANCE – Frances ex-president Nicolas Sarkozy was detained on Tuesday in a case involving the allegedly illegal funding of his campaign for the 2007 presidential election, which he won at that time, Le Figaro and Le Monde report, quoting judicial sources. Sarkozy may be held in custody for 48 hours at most, and it is for the judges to order his arrest pending trial. Ever since April 2013 Sarkozy has been targeted by an investigation following allegations of Libyas former strongman Muammar Kadhafi financing his presidential election campaign. So far, Sarkozy has denied all accusations.





    BREXIT – The European affairs ministers of the EU member states, including the Romanian Minister Victor Negrescu, are discussing in Brussels today the post-Brexit relations between the Union and the UK. On this occasion, the European Commissions chief negotiator Michel Barnier will present general principles for the transition period, i.e. March 2019 to December 2020. On Monday, Barnier and Londons negotiator, David Davis, announced having reached an agreement on these guidelines, which concern, among other things, the rights of the around 4.5 million European citizens living in the UK and the 1.2 million Britons in the EU. At the end of this week the text will be discussed by the EU leaders during a meeting of the European Council.


    (translated by: Ana-Maria Popescu)