Radio România Internațional

Tag: labour

  • August 27, 2024

    August 27, 2024

    WEATHER Romanian meteorologists on Tuesday issued a code yellow alert for unstable weather valid until Wednesday morning for half of the Romanian territory. Heavy downpours are expected in the center, in the mountains and some regions in the country’s east and south. Thunder and hailstorms have been forecast in isolated regions whereas the heatwave will remain in southern and western Romania, whose residents are again facing with a higher thermal discomfort index and more muggy days. The highs of the day will be ranging between 27 and 35 degrees with a noon reading in Bucharest of 34.

     

    PENSIONS As of October 1st the taxation ceiling of pensions in Romania is going to grow from 400 Euros at present to 600 Euros, Labour Minister Simona Bucura-Oprescu announced on Monday night. She said the decision was made after a new round of talks she had with Prime Minister Marcel Ciolacu. So, on October 1st, taxes will account for 10% of the difference exceeding 3 thousand RON. The minister’s statement comes after the head of the government announced that he had called on the Finance Minister to conduct research and see whether a new taxation ceiling was needed after the implementation of the new legislation. The Finance Ministry is expected to conduct another research so that pensioners may not incur loses or have the food vouchers removed. We recall that pensions under 2 thousand lei are presently exempted from taxation but a 10% tax is levied on pensions exceeding this sum.

     

    INDEPENDENCE President Maia Sandu on Tuesday conveyed a message congratulating the citizens of the Republic of Moldova on the occasion of marking 33 years since the proclamation of the country’s independence. ”Moldova is our home and we choose a future of peace and prosperity. We are writing our history. Many Happy Returns, Moldova!” Sandu says quoted by Moldpres. In Bucharest, Romanian president Klaus Iohannis says that Romania will continue to offer strategic support to Moldova in all areas. ‘I congratulate the citizens of the Republic of Moldova on Independence Day! You are part of the great European family and the continuation of the present efforts will transform the EU accession into an accomplished objective, the Romanian head of state wrote on the X platform. Other high officials in Bucharest have conveyed congratulation messages on this occasion. On August 27 1991, tens of thousands took to the streets of Chisinau and called on Parliament to endorse the country’s independence, which it eventually did.

     

    TENNIS Romanian tennis player Gabriela Ruse has qualified for the second round of the US Open, the year’s last Grand Slam tournament after a two-setter against Julia Grabher of Austria. Ruse will be up next against Barbora Krejcikova of the Czech Republic, this edition’s winner of the Wimbledon tournament. The other Romanian representatives in the singles contest, Ana Bogdan and Jaqueline Cristian have been knocked out in the first round after losing to Arantxa Rus of the Netherlands and 12th-seeded Daria Kasatkina of Russia, respectively.

    (bill)

     

  • Romania clamps down on crime

    Romania clamps down on crime

    Romania takes tougher measures against labour and human trafficking and the sentences in these cases can on longer be suspended, under a new law promulgated by the country’s president Klaus Iohannis. The law, endorsed by the decision-making Chamber of Deputies on May 28 is aimed at fighting trafficking in minors and people. The new regulations do away with the possibility of suspended sentences regarding the crimes of modern slavery and human trafficking, sentences, which can reach up to 15 jail years and the cancellation of some rights.

    Furthermore, if criminals prove to be public servants, family members or foster parents, prison sentences can go up to 20 years. Under the aforementioned law, other crimes such as the production, storage, presentation and promotion in any way of pornographic materials with minors by means of IT systems or other electronic communication means are punishable with prison sentences from one to three years.

    The law also covers the attempted crimes of modern slavery and human trafficking while the victims’ consent cannot serve as mitigating circumstances.

    This law is not the only measure taken by Romania in an attempt to fight the scourge. The 2024-2028 national strategy against human trafficking has been recently launched in Bucharest with a view to curbing this phenomenon, identifying and offering assistance to the victims and punishing traffickers.

    According to the authorities, the country has made significant headway in its efforts to fight the phenomenon as compared to the early 2000s, both in terms of setting up the legal framework and the necessary institutional organization. However, authorities have admitted there is still room for improvement.

    The latest annual report on human trafficking issued by the US Department of State last year said that Romania did not fully meet the minimum standards regarding the fight against human trafficking.

    According to the aforementioned document the justice, investigators and child –protection authorities in Romania rather ‘sided with traffickers’ and proved extremely tough on victims.

    Another report released this year by the International Justice Mission, an international organisation fighting against the vulnerability of the victims of human trafficking has described the legislative amendments in the field as not being in accordance with the human trafficking problematic but rather punctual and uncorrelated.

    According to data released by the National Agency against Human Trafficking since this institution’s foundation in 2005, Romania reported 19 thousand cases of human trafficking and roughly four thousand convictions.

    (bill)

  • Working in Romania

    Working in Romania

    The government is this week discussing a bill on the adoption by Romania of the European minimum wage. The document is drafted by the labour ministry and transposes a EU directive. Romania’s prime minister Marcel Ciolacu explained that once this bill is passed, salaries in Romania will become closer to the EU average. Ghe EU directive no. 2041 stipulates that the minimum wage in a country must account for at least 50% of the average income. The minimum wage in Romania at the moment is around 660 euros, to go up to around 740 euros from July 1st. The net average income in Romania stood at 1,048 euros in April, up 6.4 euros compared with March, according to the National Institute for Statistics. The highest levels were recorded in the IT sector, with a net average of 2,405 euros, and the lowest in the clothes manufacturing sector, with less than 560 euros. Compared with April last year, the net average salary income went up by 14%.

    The unemployment rate dropped in Romania to 5.3% in the first quarter of the year, said the National Institute for Statistics. The occupancy rate was 64.2%, up 1.2% compared to the final quarter of last year. Occupancy rate was higher among men than women and among the urban population versus the rural population. The occupancy rate among young people was 19.9%. Economic analyst Aurelian Dochia says the current context is favorable to the labour market and expects the unemployment rate to remain relatively low. He warns, however, that Romania is deficient in the field of education and professional counseling, which calls for measures to boost young people’s training while in employment.

    Many Romanian businesses are faced with a shortage of local labour, mainly as a result of the massive migration of Romanian specialists to states in western Europe. Under the circumstances, employers are hiring many workers from Asia, especially in constructions, the hospitality sector, agriculture, industry and the transport of goods. The president of the Association of Local Investors Cristian Pârvan says these workers are mostly unskilled, owing to low salaries and the structure of the Romanian economy. He said employers are looking for people with higher qualifications among those arriving here for unskilled jobs, thus trying to tap into their potential. According to figures published by the National Institute for Statistics, the number of vacant jobs in Romania was 35,000 in the first three months of the year, up 1,700 compared with the previous quarter, but down by 12,100 compared with the same period last year.

    The hourly labour cost grew in Romania by 16.4% in the first quarter of the year compared with the same period last year, according to the European statistical office. Romania in fact tops this ranking, being followed by Bulgaria with 15.8%, Croatia with 15.3%, Poland with 14.1% and Hungary with 13.7%. The hourly labour cost includes salary and non-salary related costs, as well as the social contributions paid by employers.

  • Working in Romania

    Working in Romania

    27% of
    the Romanian managers are concerned with the labour shortage reported in the
    first half of the year, according to a Confidex survey conducted by Impetum
    Group. This is 16% more than the level reported at the end of lui 2022. The
    labour shortage seems to become one of the main concerns for the business
    environment, overtaking other worrying issues such as the inflation rate and
    price rises, which were a concern for almost half of the managers interviewed
    at the end of last year, the polling company said. One solution to this
    problem, according to some managers, is to integrate public sector employees in
    the private system and to import human resources from other countries. But the
    latter has proved complicated, given that Romania is not an attractive country
    for immigrant workers, so employee retention is a challenge in itself, the
    survey authors also pointed out. The Confidex survey aims to provide a clear
    image of the perceptions of business people in Romania, with more than 2,500
    entrepreneurs and company executives taking part in the 8 editions of the poll
    so far.


    The
    biggest problem facing construction companies in Romania at present has to do
    with the workforce, an IBC Focus report reads. Over 75% of the constructions
    entrepreneurs say they still struggle with labour shortages, and only 11% of
    the respondents say they have enough employees and well trained people in their
    teams. Nearly 58% of the participants in the poll said they were interested in increasing
    their personnel numbers in the coming year. Also, one in 3 constructions
    companies in Romania currently uses foreign workers, as opposed to 1 in 4
    companies last year. The authors of the poll argue that the number of companies
    adjusting to the labour market and defining procedures for employing foreign
    workers is growing, and some 20% of the construction companies in Romania are
    looking at the option of hiring foreign nationals.



    Another survey, conducted by Deloitte, indicates
    that 41% of the companies operating in Romania which say they cannot find
    enough staff are facing a shortage of skills required for the current business
    systems, which is why companies increasingly resort to so-called workforce
    eco-systems, which involve the identification and management of new types of
    human resources, such as consultants, freelancers, contractors or outsourcing, in
    addition to traditional workforce consisting of full time or part time
    employees. The Deloitte report also indicates that, for companies in Romania,
    the benefits of a workforce eco-system comprising several different types of
    human resources and managed through customized strategies and processes include
    improved financial performance for 41% of the respondents and better personnel
    retention for 29% of the respondents. Taking part in the latest edition of the Global
    Human Capital Trends report, conducted by Deloitte on a yearly basis, were
    around 10,000 respondents from 105 countries, including Romania.




    More than 4,000 foreign nationals were found
    staying in Romania illegally in the first 9 months of this year, the General
    Immigration Inspectorate announced. In January – September, the police
    conducted nearly 13,000 checks and inspections aimed at preventing and fighting
    the illegal stay and unregistered employment of foreign nationals in Romania. Local
    employment inspectorate employees also took part in these actions. Some 9,000
    fines were issued for the violation of the legal and employment status of
    foreigners, and around 3,200 people were issued return decisions. Another 1,000
    were escorted out of the country, and 960 others were taken into custody until
    their repatriation. (AMP)

  • Working in Romania

    Working in Romania

    Police
    workers with the General Immigration Inspectorate, jointly with regional
    employment inspectorates, are implementing a campaign between October 16 and
    20, aimed at updating foreigners who study in Romania on the terms for a
    possible employment in the country as well as on their rights and obligations
    as employees here. The campaign takes place in universities across the country.
    According to the General Immigration Inspectorate, as many as 17,615 foreign
    nationals are studying in Romania, most of them from the R. Moldova, Morocco
    and Israel, enrolled mostly in Bucharest, Iaşi, Cluj and Timiş.


    Romania
    has the highest employment rate in the EU in agriculture, forestry and
    fisheries, according to data made public by the EU statistics office, Eurostat.
    The largest employers in this respect are in the counties of Vaslui, 61.7%, and
    Neamţ, 51.4%. Eight out of the 10 regions in the EU with the highest
    employment rates in these sectors are in Romania. Iaşi County, also in the
    north-east of the country, had the highest number of employees in 2020 – 146,200,
    followed by 4 other regions in Romania, with over 100,000 employees each. Only
    2 other regions in the EU were included in the top 10 employers in agriculture,
    forestry and fisheries, namely Sandomiersko-jędrzejowski in Poland and Almería in
    Spain.



    Europe
    is struggling with an acute workforce shortage, and the solution is to improve
    youth skills, said the executive director of the European Labour Authority,
    Cosmin Boiangiu at the European Business Forum held in Timişoara, western
    Romania. Boiangiu emphasized that there are imbalances between countries in
    terms of employment rates, and that workers from third countries are being
    brought into Europe in order to offset this shortage. There is high demand for
    workforce in sectors such as health care, IT, constructions and transports. Manpower
    is much needed and we are seeing this in Romania as well, to a growing extent,
    the ELA chief said. He also added that EU authorities are interested in
    implementing a number of strategies concerning labour mobility and flexibility,
    and one of the solutions is for employment to be based on skills, rather than
    on the work experience or the education level.



    The
    number of foreign employees in Cluj County rose by 3,000 in the first 9 months
    of this year, the General Immigration Inspectorate announced. According to the
    institution, between January 1 and September 30, Cluj immigration police issued
    over 3,400 stay permits, 640 of them for Sri Lanka nationals, 544 for Nepal
    citizens, 363 for Indian nationals, 242 for Bangladesh citizens, and the others
    for citizens from other countries. 806 registration certificates and 96
    permanent residence cards were also issued to EU citizens. During the same
    period, 2,851 documents were issued for permanent and posted workers. As for
    illegal residents, during this period 541 inspections were conducted, with the
    police identifying 44 foreigners staying here illegally. (AMP)

  • Working in Romania

    Working in Romania

    The Ukrainian citizens who want to get jobs in Romania
    do not need an employment permit for 12 months, which can be extended
    subsequently. They are only required to get registered with the local
    employment agencies, and they have the same employment rights as the Romanian
    citizens, the National Employment Agency announced.


    Through its local offices, the institution provides
    the Ukrainian nationals registered in its records a number of free of charge
    services. These include professional guidance and information on the Romanian
    labour market, on the latest developments in terms of professions, advice for
    job seekers and assistance during the job induction process.


    The National Employment Agency (ANOFM) connects
    employers with job seekers and offers the latter free of charge professional
    training schemes in order to improve and diversify their skills and facilitate
    their mobility and integration in the labour market. The Agency also assesses
    and certifies the professional skills gained in formal and informal contexts
    for those who are not certified in specific areas.


    Not least, the institution provides EURES assistance
    to the Ukrainian nationals who arrive in Romania, so that they may find jobs in
    the EU and the European Economic Area. These services include the provision of
    information on the EU labour market; information on working and living
    standards in the EU and EEA member countries, information on the EURES European
    and national portal, on vacancies across the EU, on mobility schemes and
    similar assistance and financial support programmes.


    According to the Agency, by September 18 as many as 19,349
    Ukrainian nationals had registered with local employment offices in order to
    benefit from these services. The largest numbers of Ukrainian refugees are
    reported in Bucharest (4,722), Constanța (4,604), Ilfov, near the capital city
    (1,561), Brașov (1,259), Maramureș (1,135), Suceava (733), Cluj (628), Galați
    (604), Iași (584) and Sibiu (538). Thanks to the Agency’s work, 1,815 Ukrainian
    citizens have been employed in the past few months, and 518 employers have
    expressed their willingness to hire Ukrainian nationals, announcing 5,223 vacancies
    for them as well.


    Most jobs available for Ukrainian nationals are for
    unskilled workers in various industries such as textiles or constructions, or
    in the hospitality sector. The professions of the Ukrainian citizens who came
    to Romania range from unskilled workers in the steel industry, constructions,
    the automotive industry and hospitality, to musicians, teachers, translators,
    architects, IT and administrative staff. (AMP)

  • May 11, 2023 UPDATE

    May 11, 2023 UPDATE

    PLANT Romania will have the first tyre
    plant without carbon dioxide emissions in the world. Construction works already
    started on this plant in Oradea north-western Romania on Thursday. The total value
    of this investment stands at around 600 million Euros and is being made by a
    well-known Finnish consortium. The Romanian government’s contribution stands at
    100 million Euros. The output is due to commence next year and the new factory
    will provide hundreds of new jobs. The investment was launched in the presence
    of Romania’s Prime Minister Nicolae Ciuca, who said: It is very important in
    the moves currently underway at the EU and world level to protect the
    environment and is an example to be followed.








    RISK Romania runs the risk of staying in the middle-income
    trap and unless it changes its present outdated economic model, it would find
    it very difficult to become a state with a developed economy, NATO Deputy
    Secretary General Romanian Mircea Geoana said. In my opinion, Romania’s
    present economic model is outdated. It has far too long been based on small
    incomes, cheap labour and exports with much too little added value to be able
    to be competitive and climb the ladder of the developed nations. That’s why it
    is very clear that we need to build our future by learning from what went wrong
    in the past years Geoana said at the Future is now summit held in Bucharest.
    According to him only few countries have managed to get out of the
    middle-income trap like South-Korea for instance. He has also mentioned the
    efforts in this direction made by countries in our region such as the Czech
    Republic, Estonia and Poland.








    FESTIVAL The Cinefemina Film Festival
    has kicked off in Bucharest. The festival promotes and supports women working
    in the European film industry by screening features and short films directed by
    talented women filmmakers and producers. Running until May 14, the festival
    will bring to cinema halls 12 European features and 5 short films. Produced by
    film studios from Italy, France, Greece, Romania, Austria, the Netherlands,
    Portugal, Poland, Germany, Spain, Sweden and Hungary, the productions tackle a
    variety of genres, from comedy, drama to romance. This year, apart from film
    screenings, organizers have also prepared meetings with filmmakers as well as
    experts in a number of related fields, representatives of NGOs and journalists.
    These debates are aimed at promoting women in industries traditionally
    dominated by men.








    GRANTS European Transport Commissioner
    Adina Vălean on Wednesday distributed two grants worth 60 million euros to
    Romanian beneficiaries for the construction of the rail bridge in Ungheni on
    the Romanian border with the Republic of Moldova and for the modernization of
    the Port of Constanța in the southeast. The funds are earmarked under the
    Connecting Europe Facility. Regarding the bridge in Ungheni, Commissioner Vălean
    said the project will be an extension of the A8 motorway to the Republic of
    Moldova, adding that Romania has applied for and secured funding for six
    bridges.




    (bill&VP)

  • The 2022 Census

    The 2022 Census


    At present 7.6 million people in Romania have a job whereas over 11 million are inactive or unemployed. A census conducted last year by the National Institute for Statistics shows that the process of demographic aging has deepened from the previous census and the number of people above 65 years has increased.


    The countrys population, which is presently a little over 19 million, has dropped by one million in the past decade. However, data shows an alarming tendency; the number of economically active people is going down whereas the inactive population remains the same.


    Out of the all 42 counties, Bucharest included, 39 reported a decrease in the number of inhabitants, with the largest number in the capital city, 166 thousand.


    Romania presently boasts an active population of 8.1 million people with 500 thousand unemployed, mostly among men.


    Pensioners and social benefit recipients account for 40% of the countrys inactive population, while students roughly 32%. There is good news though: over 43% have graduated from high-school or other types of education such as vocational or technical training as compared to only 37% ten years ago. The number of illiterate is around 143 thousand and experts have foreseen major imbalances on the labour market and in the public pension system in the future. Sociologist Gelu Duminica believes that Romanias future doesnt look too bright against the present phenomenon of demographic aging.


    Gelu Duminică: “At present we have a ratio of about 1.4 inactive persons for one active individual and the prediction is this ratio will be around 3.5 to 1 in the next 20 years. And that means an active person will pay taxes and duties to support 3.5 pensioners or people from other inactive categories. Right now we have a pension deficit of 2 billion Euros and imagine how things will be at the 3.5/1 ratio. So, you will no longer be able to sustain the whole thing unless you adjust the pension system. To put it bluntly, my generation will no longer have the pensions that pensioners have now but will see a visible process of pauperization. There is no magical solution for the moment if things keep going like this.”


    Gelu Duminică sees two medium and longterm solutions to this situation. The first will be to support young families through various fiscal facilities and the development of kindergartens encouraging them to have children. The second solution would involve incentives for the Romanians abroad, which would convince them to come back. The 2022 census has been the 13th in Romanias history and the first in a digital format.


    (bill)


  • May 20, 2022 UPDATE

    May 20, 2022 UPDATE

    UN At the UN Security Council in New York, Romania’s Foreign Minister,
    Bogdan Aurescu, spoke about Romania’s contribution to mitigating the effects of
    the Russian war against Ukraine, at a debate titled ‘Maintaining international
    peace and security – conflict and food security’. The Bucharest diplomacy chief
    Thursday participated, at the invitation of the American Secretary of State
    Antony Blinken, in the open debate organised by the USA, the country that is
    holding the monthly presidency of the UN Security Council. Bogdan Aurescu
    reiterated the need for a wider effort at international level to create a
    transport corridor that would include Romanian routes and ports, in order to
    facilitate Ukrainian exports to third-party destinations. At the same time, the
    Romanian minister firmly rejected the completely unfounded accusations made by
    the Russian Federation’s representative during the debate that there was an
    agreement for Ukraine to export grains to the West in exchange for
    military assistance. The head of the Romanian diplomacy also announced that
    starting with 2023 Romania will host a Regional Agro-meteorology Centre for
    Europe, approved by the World Meteorological Organisation.


    LABOUR The labour ministry in Bucharest plans to constantly monitor the
    situation of Romanian workers abroad, especially seasonal workers, who have
    sometimes been victims of exploitation. Four million Romanians are officially
    registered as working abroad, in European Union states, but the actual number would
    be close to 5 million. The labour minister Marius Budai has stated that
    Romanian seasonal workers mainly work in agriculture, constructions or in the
    meat industry, and have faced various issues related to working conditions,
    occupational health and safety, or the fact that they have not been granted
    even the minimum wage in Germany. Other issues include salary withholdings,
    dismissals with repatriation requests, non-payment of salary, non-compliance
    with labour protection regulations, non-compliance with hygiene conditions,
    improper accommodation and food.

    POLL Most Romanians perceive Russia as an enemy state, and the war in
    Ukraine is seen as a critical or important problem for the country in the
    medium and long run. These are the findings of an opinion poll conducted this
    month by the Avangarde social and behavioural research. According to the
    survey, 64% of the Romanians see Russia as an enemy state, and only 2% see it
    as a friendly country. In a ranking of friendly states, first comes the Republic
    of Moldova, followed by Germany and the US. More than half of the respondents
    also see France, the UK, Spain and Italy as friendly states, while Serbia, Hungary
    and China are seen rather as competitors. Among the problems seen as important
    for Romania in the medium and long run, the respondents mentioned climate
    change, Hungary’s investments in Transylvania, the fact that nearly half of the
    Rep. Moldova’s population are pro-Russian, the war in Ukraine, as well as the
    fact that Germany, Austria and Hungary rely on Russian natural gas.

    UKRAINE The industrial region of Donbas in Ukraine has been completely
    destroyed by the Russian forces, the president of Ukraine Volodymyr Zelensky
    said. Donbas is the main target of Russian troops after being pushed back from
    the regions of Kyiv and Kharkiv. The Russian army resorts to intense shelling,
    including over towns, in an attempt to break through the Ukrainian frontline. Odessa
    has been also a preferred target of Russian bombings lately, president Zelensky
    also said. Odessa is Ukraine’s main port city and has been under Russian
    blockade since the war started, which prevents Ukraine’s exports and affects
    global food supplies and food prices. On the other hand, the last Ukrainian
    soldiers in the Azovstal plant have been ordered by Kyiv to stop defending the
    city of Mariupol, the leader of the Azov Regiment announced. After the recent
    evacuation of the civilians, including women and children, who had taken refuge
    in the plant, nearly 2,000 Ukrainian fighters surrendered to the Russian troops
    as of Monday, including wounded soldiers, according to the latest figures
    announced on Friday by the Russian defence ministry.


    G7 The members of the Group of 7 of the world’s largest advanced
    economies promised on Friday to mobilise USD 19.8 billion to support the budget
    of Ukraine, which has been struggling under the Russian invasion since February
    24. The decision was announced by the German finance minister Christian
    Lindner, after a meeting with his counterparts from the US, Japan, Britain,
    France, Italy and Canada. Germany currently holds the presidency of the G7.


    TENNIS The Romanian tennis
    player Simona Halep will face the Croatian Ana Konjuh in the first round of the
    Roland Garros Grand Slam tournament, which starts on Sunday in Paris, according
    to the draw held on Thursday night. Halep won the French Open in 2018 and was a
    finalist in 2014 and 2017. She did not attend last year’s edition due to an
    injury. Sorana Cîrstea will play against the German Tatjana Maria, Gabriela
    Ruse will face the Belgian Elise Mertens, and Irina Begu will take on the
    Italian Jasmine Paolini. Another Romanian, Ana Bogdan, will have a difficult
    mission in the match with the Belarusian Victoria Azarenka. Irina Bara has also
    qualified for the tournament. On Friday, Mihaela Buzǎrnescu lost the last round
    of qualifiers to Mirjam Bjorklund of Sweden (6-1, 6-3). (AMP)

  • Romania’s pension system sparks off fresh concerns

    Romania’s pension system sparks off fresh concerns

    Politicians in Romania eventually
    started to believe what experts in demography, sociologists and economists had
    been saying for years, namely that the country’s pension system is put at risk
    by the ever decreasing labour force.








    Violeta Alexandru, Labour Minister
    with the country’s fresh liberal government has put it bluntly in an interview
    to the local news agency Agerpres, people must be urged to save money by means
    of the private pension system. The Labour Ministry is considering increased
    contributions to the so-called Pillar ll private pension funds, which Mrs.
    Alexandru has described as a fair system reflecting the employee’s contribution
    during their professional activity, and a safe instrument thanks to its
    transparency.








    Although concerned about the impact
    of the 40% pension rise upon the budget starting September 2020, the minister
    has given assurances the present law endorsed by the former Social-Democratic
    government will be observed and applied by the Liberals as well. She has also recalled
    a draft law on banning former employees from cumulating wages with pension
    benefits.






    However, there are some categories
    exempted, such as teachers who can resume activity after retirement due to the
    shortage of personnel especially in the country’s rural areas. According to
    Minister Alexandru the government has no intention for the time being to raise
    the retirement age, although a suchlike trend has been increasingly visible all
    throughout Europe. Romania’s Central Bank has also voiced concern over the latest
    demographic developments.






    In its latest report on stability,
    the institution has cautioned on the high migration rate among the young people
    corroborated with the phenomenon of population aging, which could significantly
    bear on the future economic developments. According to the National Institute
    for Statistics, the number of pensioners is expected to reach 5.2 million in
    the second half of 2020.






    Romania will have 4.8 million old
    people in 2060 and if the situation remains unchanged the number of active
    people contributing to pension funds, is expected to drop significantly. A
    national strategy aimed at promoting active aging and protecting the aging
    population has also cautioned against the decreasing role of the pension system
    as income provider both in terms of coverage and pensions level.








    All in all employment for the
    elderly must be encouraged to benefit both the employees and the country’s
    economy. Although the need for a prolonged active life isn’t still accepted by
    society at large, there are some segments, particularly women, highly educated
    individuals or people in need of money who have shown a positive attitude
    towards this idea, the same sources have announced.




    (translated by bill)



  • Labour shortage in Romania

    Labour shortage in Romania

    Although the exact figures do not always concur, all the demographic surveys of the past decade point to the same conclusion: Romanias population is dwindling and ageing. The most recent such survey, commissioned by the Concordia Employers Association, and made public on Tuesday, is no exception. According to its findings, if the demographic decline and migration trends carry on at the same pace, Romanias population will drop to 18 million by 2030. By 2060, the pension system dependency ratio, which is the number of pensioners relative to contributors, will be close to 100%.



    Entitled “A Quantitative and Qualitative Analysis of the Romanian Labour Market, the survey estimates that the number of employees will drop from 8.4 million in 2016 to 7.3 million in 2030. The authors also say that, in terms of the job supply, geographic polarisation will deepen and the most economically dynamic regions, namely Bucharest-Ilfov in the south, the west and the north-west of the country, will also report the highest labour deficits. At national level, this deficit already amounts to some 300,000 people this year, and it may go well over half a million by 2023.



    The authors have also identified important population segments, around 2 million people, which are included neither in the labour market, nor in the education and vocational training system. “What we find, in other words, is untapped human potential. This phenomenon requires in-depth analysis, to enable us to understand the causes of this situation and subsequently to outline measures able to help them enter the labour market, reads the report.



    Some proposed solutions for the labour crisis mentioned in the study include closer cooperation between the education system and the labour market, aimed at modernising vocational and technical training, and implementing a strategy and an action plan to end the demographic decline.



    Commentators are rather sceptical that these trends can be reversed in the short and medium run. The population decline started 3 decades ago, shortly after the fall of the communist regime, when abortion was decriminalised. And migration, which picked up speed after Romanias EU accession in 2007, will continue as long as the national labour market remains hardly rewarding. Bogdan Hossu, the leader of one of the countrys most important trade union association, Cartel Alfa, says that Romania ranks first in the European Union by share of employees below the poverty threshold, namely 20%.



    (translated by: Ana-Maria Popescu)

  • February, 2019 UPDATE

    February, 2019 UPDATE

    ECONOMY- Romanian economy slowed down from a 7% growth rate in 2017, to 4.1% in 2018, according to estimates made public today by the National Institute of Statistics. Data indicate a lower GDP growth rate as compared to the predictions made by the National Forecast Commission, which indicated a growth of 4.5% in 2018. Also in the last quarter of 2018 the Romanian economy slowed down to 0.7%, from 1.7% in the second quarter. Recently, the European Commission too has shown that the economic boom registered by Romania in 2017 slowed down in 2018.



    2019 STATE BUDGET – Romanian MPs have started discussing the articles of the 2019 draft state budget and social security budget, after finalizing general debates on Wednesday. The final vote is due on Friday. The bills have been endorsed by the specialized parliament committees. As to the version proposed by the Government, the budgets earmarked for the Finance ministry, the Romanian intelligence office and the Security Guard Service have been diminished. The Education Ministry has got more money for investment, just like the Transport Ministry. The budget was built on an estimated 5.5% economic growth rate, a 2.5% deficit and a GDP of some 200 billion Euros.



    JUSTICE – Romanias President, Klaus Iohannis, on Thursday called on the Department of Criminal Investigations in the Judiciary to clarify as soon as possible the situation regarding the case opened on the name of the former head of the National Anticorruption Directorate in Romania, Laura Codruţa Kovesi. The President says this Department should not be a political instrument of investigation and intimidation of magistrates and prosecutors. The declaration has been made after the former head of the National Anticorruption Directorate in Romania, Laura Codruta Kovesi, has announced she has been cited by the Department of Criminal Investigations in the Judiciary to testify as a suspect. She is accused of official misconduct, bribery and false testimony. Kovesi has stated she is innocent and that there is no coincidence that she received the subpoena right before her being heard in the European Parliament as prime candidate to lead the European Public Prosecutors Office. In another development, the Prosecutors Office of the Superior Council of Magistracy has decided to appoint Calin Nistor head of the National Anticorruption Directorate, where he is currently deputy chief prosecutor, and interim head of the directorate, following Anca Jurmas refusal to carry on her mandate. The office became vacant after Ms. Kovesi was revoked by president Klaus Iohannis, following a ruling of the Constitutional Court. Subsequently, the justice minister proposed Adina Florea as head of the Directorate, but the head of state rejected the proposal.



    ELA – The European Parliament and the Romanian Presidency of the EU Council on Thursday reached a provisional agreement on the Commissions proposal to establish a European Labour Authority (ELA). According to a press release, the new authority will support fair labour mobility within the EU, allowing citizens and businesses to seize the opportunities offered by the single market, while supporting cooperation between national authorities, including in preventing and tackling social fraud and abuse. Next, the agreement will be submitted to the Councils Permanent Representatives Committee for approval. Once the Member States Permanent Representatives confirm the agreement, it will be subject to a final vote by the plenary of the European Parliament.



    SURVEY – The Army continues to be the institution that Romanians trust the most, according to a survey conducted by INSCOP over January 21st – February 5th. Next come the church, the gendarmerie and the police. According to the same survey, 39.7% of the Romanians trust the National Anticorruption Directorate, and 39.1% trust the Presidency. Bottom of the rankings are political parties, with 11.8% and Parliament with 9.8%. As regards international institutions, Romanians trust NATO – 49.9%- , the EU – 47.8% – and the European Parliament – 44.7%. The European Commission enjoys the trust of 43.8% of the Romanians. The sample used in the survey was 1,080 people, aged over 18.



    NATO – The meeting of the NATO defence ministers continued in Brussels on Thursday. On the second day of the meeting, they exchanged opinions on the evolution of the missions in Afghanistan, Kosovo and Iraq, during a session devoted to NATO operations and missions. The Romanian minister Gabriel Leş has underlined the importance of supporting the Afghan peace process, laying special emphasis on the fact that the Afghan authorities should assume full responsibility for it, with support from the North-Atlantic Alliance. Also, he talked about enhancing Romanias contribution to Mission Resolute Support in 2019, totalling over 800 military on theatres of operations. The last working session of the ministerial meeting, which enjoyed the participation of the EU High Representative for Foreign Affairs and Security Policy, Federica Mogherini, as well as of the representatives of Sweden and Finland, focused on aspects related to NATO-EU cooperation in the field of defense, laying emphasis on the initiatives with the potential of boosting the Strategic Partnership between the two organizations and turning this action-line into an essential element of the package of measures aimed to boost security at European level.



    ROMANIAN-ITALIAN RELATIONS – The Italian interior minister Matteo Salvini hopes that several economic issues will be resolved during the Romanian Presidency of the Council of the EU. In an interview with the Radio Romania correspondent in Rome, the Italian official has stated that he appreciates the contribution of the Romanians who work legally in Italy and has voiced his intention to sanction and isolate those very few offenders that might tarnish the image of honest workers. There are some 1.2 million Romanians living in Italy, making up the largest foreign community in that country.



    INFRASTRUCTURE- The European Commissioner for Regional Policy, Corina Cretu, has approved the allocation of 517 million euros for the building of 6 km of rail, a segment of the 14 km metro line planned to connect Bucharests central area to Henri Coanda airport. The project also covers the building of six new metro stations and the purchase of 12 trains.(Translated by M. Ignatescu and D. Vijeu)

  • November 2, 2018

    November 2, 2018

    UK The President of Romania, Klaus Iohannis, will have a meeting on November 14th in London with the British PM, Theresa May, at the latters invitation, official sources told AGERPRES news agency on Friday. On the same day, Klaus Iohannis will attend a reception at Buckingham Palace, in honour of Charles, Prince of Wales 70th birthday, at the invitation of Queen Elizabeth II.




    MEETING The PM of Romania, Viorica Dăncilă, said in Varna on Friday, that at the 4-party meeting between Romanian, Bulgarian, Greek and Serbian officials she had stressed that more must be done for Europes energy security, especially by diversifying supply sources and stepping up the interconnection process. In the field of transport, she reiterated Romanias interest in the building of new motorways and bridges across the River Danube. Attending the meeting were the PMs of Bulgaria and Greece, Boiko Borisov and Alexis Tsipras, the President of Serbia, Aleksandar Vucic, and the Israeli PM Benjamin Netanyahu. Prior to the talks, Dǎncilǎ and her Israeli counterpart agreed on the organisation of an economic forum, ahead of the joint meeting of the 2 countries governments. PM Dăncilă presented to her Israeli counterpart the changes operated on the legislation regulating public-private partnerships, which have made the Romanian investment climate more attractive. The Romanian official also reconfirmed Romanias interest in strengthening and deepening relations with Israel in energy and cyber security, healthcare, research and innovation. The 2 prime ministers also discussed means of cooperation between Romania and Israel, in the context of the Romanian presidency of the EU Council as of January 2019.




    BUDGET The leaders of the Social Democratic Party and the Alliance of Liberals and Democrats, which make up the ruling coalition in Romania, convene today for talks on this years budget adjustment and on 2019 budgetary projections. The Finance Minister Eugen Teodorovici also takes part in the meeting. The agenda also includes plans for setting up a Sovereign Development and Investment Fund and the companies that should be part of this fund, personnel downsizing measures in certain ministries and governmental agencies, and a possible increase in minimum salaries as of December 1.




    EU FUNDING The European Commissioner for regional development Corina Creţu reiterated that Bucharest has so far submitted no funding applications for any major project that could be financed by the European Commission, except for the M6 underground line which is currently being analysed. We are long past the deadlines Romania has set itself for applying for EU funds for regional hospitals, for 3 motorways, for the Braila bridge and for the Bucharest ring road, Corina Creţu says. In a social network post, the European Commissioner dismisses the accusations made against her after she had repeatedly warned that the EU fund absorption by the Romanian Government has slowed down. Darius Vâlcov, adviser to PM Viorica Dăncilă, claimed on Thursday that the funding provided by the EU only accounts for 10% of the costs of building a regional hospital, and that the balance must be supplied by the Romanian state.




    LABOUR Switzerland will lift all labour market restrictions for Romanian workers in May next year. The announcement was made during a visit to Bucharest on Thursday by the president of the Swiss Confederation, Alain Berset, who was received by President Klaus Iohannis. Alain Berset said, on the other hand, that Switzerland supports Bucharests bid for OECD membership, and that, although it is not an EU member, it will stand by Romania during the countrys presidency of the EU Council, in the first half of 2019.




    VETERINARY The Romanian Veterinary Board has organised a rally at the Government headquarters today, in order to draw attention to the major problems facing this profession and jeopardising public health. Veterinary physicians demand the immediate amendment of the law regulating their profession, which must be brought in line with a ruling of the EU Court of Justice. Otherwise, the protesters warn, public health is at grave risk in Romania, where anybody may open a veterinary dispensary and sell medications, without the need for veterinary physician supervision, and anybody may purchase such medication and give it to animals.




    FARMING Hundreds of companies from 25 countries are taking part in Bucharest, until Sunday, in the international farming trade fair INDAGRA, the largest of this kind in Romania. As part of the trade fair, today the Rural Investment Financing Agency is organising a national conference on “Rural Development: A fundamental element of economic competitiveness and cohesion at EU level. Taking part in the conference is the Minister for Agriculture and rural Development, Petre Daea. The participants discuss the elements supporting the transformation of Romanian agriculture and rural communities, so as to be able to contribute to the competitiveness of the national economy.


    (translated by: Ana-Maria Popescu)

  • The Week in Review (18-24 February)

    The Week in Review (18-24 February)

    Justice Minister formally asks for the dismissal of the anti-corruption directorates chief prosecutor


    The decision of Romanias Justice Minister Tudorel Toader to formally ask for the dismissal of the National Anti-Corruption Directorates chief prosecutor, Laura Codruta Kovesi, has sparked fresh protests throughout the country, with thousands of Romanians taking to the streets shortly after Minister Toaders announcement. In a news conference on Thursday evening, the Justice Minister presented the findings of a report on the activity of the DNAs leadership, in which chief prosecutor Kovesi is being criticised.



    Tudorel Toader accuses Laura Codruta Kovesi of “acts and deeds that are intolerable in a rule of law, such as serious violation of duty, putting pressure on the government and other institutions, postponing sentences in a number of cases, not checking the professional activity and behaviour of certain prosecutors, as well as certain public statements, to name but a few. At the same time, Minister Toader accuses the chief-prosecutor of having breached the constitution and the separation of powers principle.



    Tudorel Toader: “The National Anti-Corruption Directorate does not identify itself with its chief-prosecutor, whose actions in the past year have proven likely to endanger the very institution that she leads, by having an excessively authoritarian and discretionary behaviour, defying Parliaments authority and the Governments role and attributions and contesting the Constitutional Courts decisions and authority.



    Once the procedure is initiated, the chief prosecutors dismissal cannot be done without the head of states approval, after the Superior Council of Magistracy (CSM) gives advice on the request submitted by the Minister of Justice.



    President Klaus Iohannis however, maintains his support for the DNAs activity and its leadership, according to a release by the presidency soon after the proposal for dismissal was made public. President Iohannis believes that the Justice Ministers presentation of the report is lacking in clarity, for which reason the report will be thoroughly analysed by the Presidential Administrations departments. The presidential release also says that the head of state will make use of all his constitutional prerogatives to ensure the functioning of an independent justice system and the consolidation of the rule of law.



    Romanias Prosecutor-General Augustin Lazar has said that there is no legal reason for the dismissal of the DNAs chief prosecutor. On the political stage, the reactions to Minister Toaders announcement were very prompt. The ruling Social Democratic Party (PSD) sees the Justice Ministers request as grounded and well documented. On the other hand, the National Liberal Party, the main opposition party, sees the request as ungrounded, made under the pressure of influential people who have problems with the law.



    The Romanian PM travels to Brussels


    Having paid this week her first official visit to Brussels since being appointed prime minister, the former MEP Viorica Dancila discussed with the European officials about Romanias holding the EU Council presidency in the first half of 2019, financial aspects and the countrys joining the Schengen area. The European Commission President, Jean Claude Junker has said, on this occasion, that there is no reason for Romania not to join the Schengen area. Junker has also voiced hope that the Bucharest Government will make efforts for the countrys judicial system to work. In his opinion, the Cooperation and Verification Mechanism in place for Bulgaria and Romania should be lifted before the mandate of the current Commission ends.



    The Romanian PM also held talks in Brussels with the European Council President Donald Tusk and the head of the European Parliament Antonio Tajani. The latter urged the Romanian Government to continue the battle against corruption and for the consolidation of the rule of law.



    Viorica Dancila: “I believe that good cooperation is beneficial for Europe and for Romania. I will go before the European Parliament to talk about the future of Europe, which Romania must be an active part of, given the countrys taking over the EU Council presidency and the challenges lying ahead.



    The slow absorption of European funds is another topic tackled by PM Dancila at a meeting with the European Commissioner for Regional Policy, Corina Cretu. Commissioner Cretu has again warned the Bucharest authorities over the fact that procedures for using European money must be sped up and simplified.



    The opposition files no-confidence motion against the Labour Minister


    The simple motion filed against the Social Democrat Labour Minister Lia Olguta Vasilescu was rejected on Wednesday in the Chamber of Deputies. Its signatories, 60 Liberal MPs, accuse the ruling coalition of disrupting the fiscal and social systems and creating serious imbalances between the public and private systems, following the transfer of social security contributions from employers to employees starting January 1st, 2018. Following the implementation of this measure, the incomes of around 2 million Romanians have gone down. At the debates in the Chamber of Deputies, Minister Olguta Vasilescu has said that salaries cannot decrease if employers act in good faith.


    (translated by: Elena Enache)

  • November 24, 2017 UPDATE

    November 24, 2017 UPDATE

    SUMMIT – Romanias president Klaus Iohannis said in Brussels on Friday that the EU must continue to support in a consistent manner the modernisation and reform efforts of the 6 Eastern Partnership countries. He encouraged a solid EU policy for its eastern neighbours, a region that must become predictable, stable and prosperous, committed to the European principles and values. At the 5th Eastern Partnership summit, 20 goals were agreed on and included in a roadmap for 2020. Launched in 2009, the Eastern Partnership is designed to promote political association and economic integration between the EU and 6 partners in Eastern Europe – Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.




    PRESIDENCY – The president of Romania, Klaus Iohannis, had a meeting in Brussels on Friday with his Ukrainian counterpart Petro Porosenko, on the sidelines of the Eastern Partnership summit. The main topic approached was Romanian-language education in Ukraine, in the context of president Porosenko promulgating a controversial education law in September. President Iohannis said his counterpart promised that all the recommendations of the Venice Commission with respect to this law will be taken into account, and that before being endorsed the prospective changes of the act will be discussed with Romanian officials and representatives of the Romanian community in Ukraine. Also on the sidelines of the summit, president Iohannis had talks with the prime minister of the Republic of Moldova, Pavel Filip. On this occasion, Iohannis reiterated that Romania supports Moldovas pro-European aspirations.




    LABOUR – The Romanian Labour Minister, Lia Olguta Vasilescu, said on Friday that Romania is struggling with a severe deficit in the labour market, particularly in the IT sector, healthcare, constructions and agriculture. She added that the country needs to find solutions to this problem, and one of them would be to persuade the Romanians working abroad to come back home. These statements were made during a debate on the economic, social and cultural development of Romanian rural areas, organised in Bucharest and attended, among others, by the Agriculture Minister, Petre Daea.




    JUDICIARY – The Chamber of Deputies Speaker and leader of the leftist Social Democratic Party, Liviu Dragnea, Friday challenged at the High Court of Cassation and Justice a protective asset seizure by the National Anti-Corruption Directorate in the case known as “Tel Drum. Prosecutors sought to make sure that the over 25 million euros worth of damages in this case will be recovered. Dragnea is charged for offences that include the setting up of an organised crime group, abuse of office and fraud, which he allegedly perpetrated when he chaired the Teleorman County Council. According to the National Anti-Corruption Directorate, the case was based on a notification sent by the European Anti-Fraud Office, OLAF, with respect to several misdeeds, including the use of false documents to illegally obtain European funding for county road repair works.




    ATTACK – Egypt observes 3-day national mourning after more than 200 people were killed on Friday in an attack on a mosque in the north of Sinai Peninsula. According to international news agencies, the perpetrators detonated a bomb then started shooting the believers in the mosque located in a region where authorities are fighting an Egyptian group affiliated to the Islamic State. Since the Egyptian Army ousted the Islamist president Mohamed Morsi, in 2013, the jihadists have attacked security forces and civilians in northern Sinai on a regular basis, news agencies also report.





    RUGBY – Romanias national rugby team is playing a test match against Tonga on Saturday in Bucharest. If it wins, Romania, currently ranked no 14th in the world, will go one place up. A week ago, Romania won a test match against Samoa, 17-13, on home turf.


    (translated by: Ana-Maria Popescu)