Tag: law package

  • September 21, 2023 UPDATE

    September 21, 2023 UPDATE


    UN – The
    extended Black Sea region must be protected against the fallout from Russia’s
    war in Ukraine, Romania’s president Klaus Iohannis said on the sidelines of the
    UN General Assembly. Romania will not abandon its most vulnerable partners, the
    president said, referring to the transit of Ukrainian grain on Romanian
    territory, a topic he also tackled jointly with the president of Ukraine,
    Volodymyr Zelenskyy, the European Commission president, Ursula von der Leyen,
    and the Bulgarian Deputy Prime Minister, Mariya Gabriel. On Thursday, the head of state gave a speech on the sidelines
    of the World Leaders Forum on Romania’s perspectives on the war in Ukraine and
    its impact on Black Sea Security, in an event hosted by University of Columbia
    in New York. Russia expected a weak international community before attacking
    Ukraine, but its assumption was wrong, president Iohannis said, adding that
    NATO has made historic decisions to strengthen defense and deterrence on the
    Eastern Flank and the Black Sea. The president also pointed out that the Black
    Sea has been irrevocably confirmed as a region of strategic importance for
    Euro-Atlantic security, and now everyone understands that what happens in the Black
    Sea doesn’t stay in the Black Sea.



    LAW PACKAGE – The Cabinet had
    a first discussion on the set of measures aimed at the long-term rebalancing of
    the state budget and at facilitating the absorption of tens of billions in EU
    funding. Apart from cutting down public spending, the bill focuses on fighting
    tax evasion, introduces taxes on large profits and wealth, and eliminates tax
    privileges. Ahead of the Cabinet meeting, the measures were discussed in the
    three-party Social Dialogue Council, which brings together government officials
    and representatives of employer associations and trade unions.




    OPINION – The Economic and Social
    Committee (CES) has issued a negative opinion with respect to a draft emergency
    decree of the Romanian government stipulating the introduction of new taxes,
    increasing existing ones and eliminating certain tax breaks. CES
    representatives claim the decree produces unpredictability in the field of
    fiscal legislation, adding that the budget deficit should be solved through an
    efficient management of public revenues.




    ACCIDENT – A criminal investigation
    was initiated with respect to the blast that occurred on Wednesday night on a
    gas pipeline on the Moldova Motorway construction site in eastern Romania, in
    which four people died and 5 others were injured. Two men with burn wounds
    affecting 30% and 40% of their bodies, respectively, were transferred to
    hospitals in Bucharest. Prosecutors are investigating manslaughter and bodily
    harm offences, as well as failure to take or observe work safety measures.
    According to the Vrancea Emergency Inspectorate, the blast was caused by the
    construction works conducted in the vicinity of the pipeline, which was also
    carrying natural gas to the neighboring Republic of Moldova.




    CORRUPTION – Two known
    thoracic surgeons with the Marius Nasta Institute in Bucharest were detained
    for bribe taking, while another six physicians, mostly anesthesiologists, were
    placed under pre-trial arrest. According to investigators, several physicians
    with the Marius Nasta Institute have been repeatedly receiving money and others
    goods from patients in the last year. Investigators have seized mobile and
    immobile property from the said physicians and froze their bank accounts, after
    noticing significant differences between their legal revenues and actual
    profits in the last 5 years. The total value of assets frozen by prosecutors
    stands at over 800 thousand EUR.




    GRAIN – Thursday saw the first
    naval transport of Ukrainian grain to arrive in Istanbul since Russian withdrew
    with the grain transit agreement in the Black Sea. Carrying 3,000 tons of grain
    for Israel, the ship left Chernomorsk on Tuesday and used a route off the
    Romanian and Bulgaria Black Sea coasts, which Kyiv has labeled a safe corridor.
    Ukraine announced a second grain cargo will be headed to Egypt. (VP)



  • The new fiscal law package at a first reading

    The new fiscal law package at a first reading

    The PSD-PNL government coalition in Bucharest on
    Wednesday night held its first talks over the new series of measures aimed at
    attaining a long-term balanced state budget and easing the EU-fund absorption. The
    country’s Finance Minister, Marcel Boloş, recalls that Romania has pledged to clear
    the 4.4% budget deficit target. And if it fails to achieve that, it runs the
    risk of seeing major EU fund cuts from the European Commission, funds, which
    are crucial in the process of streamlining the country’s infrastructure,
    including motorways, hospitals and schools.




    Marcel Boloş: We have 46
    billion euros in the cohesion policy and another 29.3 in the National Plan of
    Recovery and Resilience. So we are talking Romania’s future here, 75 billion euros,
    which we cannot afford being suspended.




    Besides cutting on public expenses, the Executive also
    wants to fight tax evasion, to improve income taxation and cut fiscal
    privileges. In an attempt to reduce the anxiety caused by the upcoming higher taxes
    and prices, the same Finance Minister says that prices will indeed be raised while
    banks and small enterprises will be paying higher taxes, but the VAT will rise only
    for some categories of goods and services




    Marcel Boloş: Food
    stuff will stay around 9%, and so will medicine, but medical prostheses for
    disabled people will remain at 0% VAT. At the same time we are going to have 5%
    for firewood, thermal energy, gas, everything that means household consumption.




    Before the government session, the new
    fiscal-budgetary measures had been tackled by the Three-party Social Dialogue
    Council, a body made up of representatives of the government, employers’
    associations and trade unions.




    According to their president Florin Jianu, The
    Employers’ Associations seem to be contented with the decision as they got the
    promise the measures will be applied as of January 1st 2024 and the
    VAT in the hospitality industry will remain unchanged.




    Florin Jianu: The
    hospitality industry will have a 9% VAT, a very good thing for this sector. Had
    the VAT been raised in this sector we would have completely lost
    competitiveness against our Bulgarian neighbors.




    Trade unions, however, are dissatisfied with the
    decision that holiday vouchers be given only to state employees with salaries
    up to 16 hundred euros. In response Social-Democratic Prime Minister Marcel
    Ciolacu said:




    Marcel Ciolacu With a state salary of 8.000 lei, one cannot apply for
    holiday vouchers, neither for food allowances. Employees with low salaries will
    continue to get vouchers, even at a higher value, but it’s totally unfair to
    give them to the employees with high salaries.




    Prime Minister Ciolacu is to present next week in
    Parliament the aforementioned package of fiscal-budgetary measures for which
    its Executive will assume responsibility.


    The new measures, which have attracted a lot of heat
    from the opposition, have been described by the country’s president, Klaus
    Iohannis, as a step in the right direction.




    (bill)

  • September 20, 2023 UPDATE

    September 20, 2023 UPDATE

    UN – The
    extended Black Sea region must be protected against the fallout from Russia’s
    war in Ukraine, Romania’s president Klaus Iohannis said on the sidelines of the
    UN General Assembly. Romania will not abandon its most vulnerable partners, the
    president said, referring to the transit of Ukrainian grain on Romanian territory.
    Klaus Iohannis said the war proved the Black Sea deserves more attention at
    global level, being of strategic importance for trans-Atlantic security. The
    Romanian president also said Romania is concerned about the effects of climate
    change, pollution and energy insecurity and is making visible efforts to combat
    these phenomena. At the same time, Klaus Iohannis underscored the importance of
    climate education, which he described as a priority for Romania, adding that
    climate and security must be interconnected and be a priority on the UN agenda.
    Earlier on Wednesday, the president said Romania has attained 62% of its national
    objectives for implementing 2030 Agenda for Sustainable Development, and has
    reported major progress regarding the implementation of Sustainable Development
    Goals (SDGs) linked to environment protection and curbing the effects of
    climate change.




    LAW PACKAGE – The Government on
    Wednesday debated the law package consisting of fiscal regulations and measures
    to cut public spending. Prime Minister Marcel Ciolacu wants to adopt the
    document over the next days and then assume responsibility for the bill before
    Parliament. The package comprises measures designed to combat tax evasion and
    cut public spending. The opposition claims the fiscal measures will have a
    negative impact on the economy, entrepreneurs and liberal professions. Ahead of
    the government session, the Prime Minister said Romania has the highest tax
    evasion rate at EU level, accounting for over 10% of the GDP.




    EXPLOSION – An explosion took
    place on Wednesday morning on a Togo-flagged ship in the Black Sea, near the
    Romanian port of Sulina. The Regional Port Authority said that, at the request
    of the ship’s captain, all 12 crew members were brought to Sulina safely and
    are undergoing medical investigations. Representatives of the Coast Guard and
    the Romanian Agency for Saving Human Life at Sea also participated in the
    rescue operation of the ship’s crew. The cause of the explosion is
    unknown for the time being. Whether or not it was due to a mine remains to be
    established by the Ministry of Defense, the port authority said. The
    Naval Forces General Staff decided to send to Sulina a military ship
    specialized in the detection of sea mines. Sulina is located close to Romania’s
    border with Ukraine.




    MOTION – The
    Chamber of Deputies on Wednesday voted against the simple motion tabled by Save
    Romania Union and the Force of the Right, from the center-right opposition,
    against the Social-Democratic Health Minister Alexandru Rafila. The motion
    initiators are blaming Rafila, among other things, for the way he managed the
    health reforms and investment stipulated in the National Recovery and
    Resilience Plan. Rafila has rejected the allegations and has deemed the
    opposition’s move as demagogical. (VP)

  • The priorities of the second parliamentary session

    The priorities of the second parliamentary session

    The Romanian Senate and Chamber of Deputies on Monday began the second ordinary parliamentary session of the year. According to the Prime Minister Marcel Ciolacu, the leader of the Social Democratic Party, the priorities include, besides the government’s taking responsibility before Parliament for a legislative package aimed at fiscal changes and administrative reform, a new pension law and tougher punishments for drivers under the influence of alcohol or drugs:



    Marcel Ciolacu: “We know that there are many inequities in the old pension law. We continue to have in Romania pensions of 1,500 lei (almost 300 Euros), and also of 30-40,000 lei (that is 6 – 8,000 Euros). I have also discussed with my colleagues about the package that will be included in a single law, the law on assuming responsibility, which includes measures for combating evasion, for reforms in the local administration, as well as measures to accommodate a smaller deficit than last year”.



    Moreover, the Prime Minister tried, the other day, in Brussels, to convince the European Commission of the capacity of the Romanian government to respect a new budget deficit target this year, higher as compared to the one assumed by Romania, of 4.4%, to cover the aid that Bucharest granted to neighboring Ukraine and the Republic of Moldova. The National Recovery and Resilience Plan – PNNRand special pensions were also at the center of recent negotiations. The governing partners of the Social Democrats, the Liberals, announced that a new pension law, which would solve the inequities in the system, represents a priority. For the moment, however, the document regarding the reform of special pensions has been declared partially unconstitutional by the judges of the Constitutional Court of Romania, even if the changes made to special pensions represent a requirement under the PNRR.



    On the other hand, the opposition announces a censure motion if the package of fiscal-budgetary measures is adopted by the government’s taking responsibility for it before Parliament. The Save Romania Union leader, Cătălin Drulă, believes that an increase in fees and taxes is not a viable solution.



    Cătălin Drulă: “Ciolacu is preparing to bury Romanias economy! He has already slowed economic growth, businesses are complaining, there are no more orders, sales are decreasing and they want to increase taxes and drive investors away from Romania. Why? To pay the bill for the budget fraud”.



    However, Marcel Ciolacu gave assurances in Brussels that Romania is a credible and responsible and above all a fair partner, both of the Council, the Commission and the European Parliament. The Romanian government experts continue to discuss with European officials about the renegotiation of the PNRR, taking into account the principles established by the prime minister at the meetings he had in Brussels. After the European Commission sees the reforms that the government is making, it will propose to the European Council a renegotiation of the value of the budget deficit, which will allow Bucharest to obtain a higher deficit. A decision on the new percentage could be made by the end of the year. (LS)

  • September 3, 2023

    September 3, 2023

    PARLIAMENT -
    Prime Minister Marcel Ciolacu said the Government will assume responsibility
    for a law that will contain a plan for combating tax evasion, reforming local
    administration and measures to curb the budget deficit. He made the announcement
    at the end of the Social-Democratic National Political Councail held on Saturday, which set the party’s
    priorities ahead of Parliament’s autumn session due to start on Monday. The
    Social-Democrats want to finalize the new pension law, modify the legislation
    on the prevention and combating drug trafficking and abuse and introducing
    harsher sanctions for driving under the influence. The Romanian Prime Minister
    also announced an extension of the cap on foodstuffs until the end of the year.
    USR in opposition said it would call for a vote of no-confidence if the
    government assumes responsibility for the fiscal modifications. USR leader
    Cătălin Drulă said increasing taxes is not a viable solution.




    REPORT – The head of
    the Department for Emergency Situations, Raed Arafat, on Sunday made public the
    preliminary report detailing the firefighters’ intervention following last
    week’s explosions at an illegal LPG filling station in Crevedia, which killed
    three people. According to the report, the firefighters first sent intervention
    robots to cool down the gas tanks, secured the perimeter and evacuated the
    civilians, thus avoiding a larger number of casualties among both civilians and
    emergency responders. Raed Arafat complained about the disinformation and
    manipulation of media outlets regarding the coordination of the intervention.
    Three people died and 56 were injured in the wake of the blasts. Some of the
    patients in critical condition were transferred to burn clinics abroad. Some 10
    houses were completely destroyed by the blasts. The Prosecutor General’s
    Office, the Military Prosecutor’s Office and the National Anticorruption
    Directorate have launched investigations, while the authorities are inspecting
    all LPG stations across Romania.




    EUROIUDAICA – The city of
    Oradea in northwestern Romania is as of Sunday hosting the Euroiudaica
    International Festival, celebrating Jewish culture and traditions. For the next
    seven days, the festival offers theatre, dance and music performances, book
    launches, conferences and exhibitions featuring special guests from at home and
    abroad. Some of the events will be hosted by local synagogues. Jewish music is
    also celebrated in all its forms, featuring guests from Romania, Poland,
    Hungary, Slovakia and Argentina. On the sidelines of the Euroiudaica Festival,
    five theatre shows will be staged by companies from Romania, Poland and
    Hungary.




    US OPEN -
    Romanian tennis player Sorana Cîrstea on Sunday is playing Belinda Bencic of
    Switzerland in the round of 16 at US Open. Cîrstea leads 2-1 head-to-head. We
    recall Sorana Cîrstea qualified for the first time in her career to this phase
    of the competition after ousting Elena Rybakina of Kazakhstan, world no. 4.
    Another Romanian player, Gabriela Ruse, is competing in the women’s doubles
    alongside Marta Kostyuk of Ukraine.




    WEATHER – A code yellow alert against thunderstorms is in
    place until Monday in northwestern Romania. Heavy rainfall, thunderstorms,
    strong wind and hail are expected during the interval in widespread areas.
    Thunderstorms are also expected in isolated areas in regions in the south and
    southeast. The weather remains sunny and warm in the other regions, with
    maximum temperatures ranging between 20 and 34 degrees. (VP)

  • August 25, 2023 UPDATE

    August 25, 2023 UPDATE

    LAWS – The Romanian government will
    assume responsibility before Parliament for a law package concerning the reform
    of the state apparatus, the measures aimed at attaining fiscal balance and
    avoiding tax evasion. Wasting public money along with fiscal and tax evasion is
    preventing the country’s development, Romania’s Prime Minister Marcel Ciolacu
    has said. The Romanian official will go to Brussels next week for a new round
    of talks with the head of the European Commission, Ursula von der Leyen, over
    changing the budget deficit target, and according to some government sources,
    talks will also be focusing on the fiscal measures package. The opposition has
    announced its intention to table no-confidence votes against the PSD-PNL Government.




    DRUG ABUSE – Romania’s Justice Minister Alina Gorghiu has called on the Prosecutor General
    Alex Florența to intensify the line
    ministry’s activity combating the illegal drug abuse. Gorghiu says this
    requires a joint effort, recalling the latest investigations conducted by the
    Directorate for Investigating Organized Crime and Terrorism (DIICOT) in Constanța or
    Cluj-Napoca, in the wake of which a number of cocaine or cannabis dealers were
    apprehended. Some 4,700 investigations were completed in 2023, although the anti-drug department comprises only 14
    prosecutors, according to Ministry figures. They have to work on a total of
    7,000 such investigations, of which 2,700 were started in the first half of the
    year.


    EDUCATION
    – The Education Ministry has launched for debate a draft emergency decree for
    the introduction of Holocaust Studies in school curricula starting the new
    school year. Among other thing, the draft decree also seeks to equate four-year
    BA degrees with MA decrees and provide accommodation subsidies to students
    choosing to stay in accommodation units other than dorms.




    UNTOLD -
    The UNTOLD Festival in Cluj Napoca is now number six in a standing published by
    the British publication DJ Mag based on the votes of festival fans. The
    standing ranks a hundred festivals, and UNTOLD ranks among the top three in
    Europe, along with Tomorrowland in Belgium and Gastonbury in Great Britain. The
    eighth edition of UNTOLD was visited by 420 thousand fans this year and
    featured such artists and bands as Imagine Dragons, David Guetta or Steve Aoki.
    The Neversea Festival in Constanța
    is also included in the standing, raking 41.




    FOOTBALL
    – Romania’s football champions, Farul Constanța, on Thursday night secured a 2-1 home win against Finnish side
    HJK Helsinki in the play-offs of Europa Conference League. In the same stage of
    the competition, the winners of Romania’s Cup, Sepsi Sfântu Gheorghe, ended in
    a two-all draw their game against Norwegian side Bodoe/Glimt. The decisive
    matches for qualifying in the groups of Europe’s third football competition are
    to take place on August 31.




    ROWING -
    Romanian athlete Cătălin Chirilă won
    gold in the 500m single canoe race on Friday at the 2023 ICF Canoe
    Sprint World Championships hosted by Duisburg, Germany. Chirilă was followed by
    Conrad Scheibner of Germany and Serghei Tarnovschi of the Republic of Moldova.
    This is a personal best for Chirilă in
    the 500m race, after last year he had grabbed silver at the World Championships
    in Dartmouth, Canada. Cătălin Chirilă will compete on Saturday in the 1000m
    race, where he qualified with the second-best result. The competition counts
    for the 2024 Paris Olympics, where the top six athletes will qualify directly.
    Cătălin Chirilă is the defending world champion in this event. (DB + VP)



  • Assistance for refugees

    Assistance for refugees

    Romania’s partners have unanimously praised the way Bucharest
    authorities are handling the crisis of Ukrainian refugees. Nearly 300 thousand
    people fled war-torn Ukraine and crossed into Romania. Currently, Romania is
    home to 80 thousand refugees, of whom 30 thousand are underage. Foreign
    Minister Bogdan Aurescu on Monday discussed this topic with his Canadian
    counterpart, Mélanie Joly. The latter expressed her gratitude for Romania’s
    efforts to protect all people fleeing Ukraine, including the 600 Canadian
    citizens who transited Romanian territory safely. Romania will continue to
    provide assistance to Ukrainians and citizens of other states leaving Ukraine,
    Minister Aurescu pointed out.


    We stand with the Ukrainian people, who are resisting heroically.
    At the same time, Romania is providing constant support to Ukrainian refugees
    and citizens of third countries and members of diplomatic missions, with a view
    to safely evacuating them from Ukraine and helping them transit Romania. 70
    countries and two international organizations have called on us to support
    their citizens, their diplomatic missions, and Romania has done everything in
    its power to ensure their safe entry into Romania, their transit through our
    country and their departure to their countries of origin.


    The Government has adopted a new set of measures addressing
    refugees. All Ukrainian children on Romanian territory, including those whose
    families have not filed for asylum, will benefit from the right to education in
    all schooling units across the country, enjoying the same rights as Romanian
    school and pre-school children. They are also entitled to free-of-charge
    accommodation in boarding houses, meal allowances and the right to receive
    school supplies, clothing, shoes and textbooks. The measures adopted by the
    Cabinet also target elderly people and people with disabilities who have
    reached Romania accompanied or unaccompanied, and who will become eligible for
    social welfare. Last but not least, all Ukrainians will be allowed to work in
    Romania. The law package passed on Monday also stipulates measures to
    facilitate Ukrainians’ access to employment, so they can have a regular source
    of income. Ukrainian citizens will be able to apply for jobs without presenting
    a work permit. The Government also adopted a number of measures addressing NGOs
    supporting the tens of thousands of Ukrainian refugees. A special account has
    been opened by the Inspectorate for Emergency Situations, where people can
    donate directly to NGOs. All donations received will be fully deductible. (VP)