Tag: milestones

  • The Week in Review 26.06 – 02.07.2023

    The Week in Review 26.06 – 02.07.2023

    Laws on sensitive topics adopted by Parliament



    The Romanian Parliament dedicated this past week of the ordinary session to some bills related, in one form or another, to pensions. On Monday, senators and deputies eliminated the special pensions granted to MPs, thus renouncing a privilege considered immoral by the press and public opinion. Two other sensitive laws were passed on Wednesday. One puts a ban on cumulating pensions with salaries in the public system but exempts from this ban exactly the local elected officials and parliamentarians, which makes the bill controversial. Other professional categories exempted from the rule are the teaching staff and the specialized medical staff, foster carers, as well as employees of the Romanian Academy, the National Bank of Romania and some national agencies. The law that aims to reform the special pensions, which are only partially based on the contribution from the active period and which benefit magistrates, the military, diplomats, parliamentary staff, the Court of Accounts staff or the aeronautics staff, also received a favorable final vote. However, the bill underwent major changes. Actually, the application of the reform was postponed by five years, so that, until 2028, prosecutors, judges and the military can retire under the same conditions as before. The retirement age will increase in stages, and magistrates will be required, in order to retire, to have at least 25 years of experience in the specialty. Pensions that exceed the average net income will be taxed by 15%. The opposition Save Romania Union – USR, which favors the total elimination of special pensions, voted against the bill, claiming that, after its adoption, there will be 210,000 special pensioners in Romania as before. The High Court of Cassation and Justice contested the constitutionality of the law on special pensions and the one on cumulating pensions and salaries in the public system. The reform of the special pensions is a milestone in the National Recovery and Resilience Plan.



    The National Recovery and Resilience Plan – PNRR, positive assessment



    With 49 milestones and targets met, out of a total of 51, Romania successfully passed the European Commission’s test regarding the second payment request submitted under the National Recovery and Resilience Plan, worth 3.22 billion Euros. The two milestones that were not met are related to energy investments, and because of failing to meet these two targets, Bucharest will lose approximately 53 million Euros. However, nothing is irreparable, because Romania still has 6 months to prove that the two pending milestones have been met. Prime Minister Marcel Ciolacu says that the Commission’s positive assessment encourages the government to work to meet the targets, and he promises that the two delayed milestones in the energy field will be quickly recovered. Romania benefits from an allocation of over 29 billion Euros for the implementation of the National Recovery and Resilience Plan and has already collected two pre-financing installments with a cumulative value of approximately 3.8 billion Euros.



    New European aid for farmers



    Romania will receive 30 million Euros from the European Commission as support for farmers affected by massive imports of cheap grains from Ukraine. It is the second aid package, and the money comes from the Union Reserve Fund. Of the five EU member states that have a border with Ukraine or are in its vicinity, Poland and Romania benefited from the largest aid packages: Poland, almost 40 million Euros and Romania 30 million Euros. Cumulatively, packages one and two bring Romanian farmers a support of 40 million Euros, and the Romanian Government has the Commission’s agreement to double it.



    Preparations ahead of the NATO summit in Vilnius



    Leaders of NATO member states and the NATO Secretary General Jens Stoltenberg convened in the Hague for a meeting focusing on the preparation of the upcoming allied Summit, to be held in Vilnius in mid-July. Romanias president Klaus Iohannis also participated in the event. In the Netherlands, Iohannis reiterated that Russia is and will still be the immediate and the most direct threat to Euro-Atlantic security. Consequently, he insisted that the allies will have to be capable and ready to strengthen their position even further and continue to give the required support to Ukraine and to the most vulnerable partners, the Republic of Moldova, in particular. Given its strategic position, Romania is especially interested in further strengthening the Alliances Eastern Flank, through a coherent and unitary approach, Klaus Iohannis also stated. This means, according to him, providing the required forces, structures, capabilities and equipment, as well as the appropriate command and control arrangements. As regards Ukraine, if, in Bucharest, in 2008, the Allies decided that it should become a NATO member state, in Vilnius that commitment will have to be carried further, Klaus Iohannis said.



    Culture and sport


    The headline-grabbing event of the week is the International Theatre Festival in Sibiu, which has now reached its 30th edition. Throughout the festival, the central Transylvanian town, still bearing the hallmark if its Saxon heritage, is literally sizzling. Thanks to the Radu Stanca theatre halls, the unconventional spaces, the churches, squares and medieval streets, Sibiu has yet again been the generous host of performing arts. Thousands of artists and hundreds of events literally galvanized the festival, held under the sign of the ‘Miracle, the theme picked for the recently-held edition.


    In sport, the headline-grabbing event this week has been the hearing of the Romanian tennis player Simona Halep by the court judging the doping charges pressed against Halep in October 2022. The past months have been long and costly for the career of the athlete who will be 32 in September. Halep no longer has a place among the worlds top 50 tennis players since she could no longer take part in tournaments. Halep, the former WTA number 1 and two-time winner of a Grand Slam tournament, will receive a final court ruling in July. (LS, EN)

  • European Assessment on Romania

    European Assessment on Romania

    The European Commission has
    positively assessed the second payment request submitted by Romania within the
    National Plan of Recovery and Resilience, PNRR, with a value of 3.22 billion
    Euros, after the country fulfilled 49 out of the 51 milestones and targets in
    the aforementioned plan. As for the two pending objectives, concerning
    investment in energy, Romania has failed the exam, which prompted the European
    Commission to activate the procedure of suspending payment for the related activities.
    For this reason Romania will receive 53.36 million Euros less as part of the
    PNRR assistance component, but still has 6 months left to bring evidence that
    it has properly met the aforementioned objectives.


    This procedure gives Member States
    time to fulfill the outstanding milestones while receiving a partial payment
    linked to the milestones and targets than have been satisfactory fulfilled.


    The country’s new Prime Minister,
    Marcel Ciolacu says the present assessment is encouraging the government to
    carry on the process of meeting all the milestones and targets. He pledges the
    two outstanding milestones will be fulfilled shortly, so that Romania may get
    all the money allotted. Ciolacu’s predecessor, Nicolae Ciuca says the European
    money will essentially contribute to the modernization of Romania in all key
    domains, mainly infrastructure as well as the medical and educational systems.


    The president of the European
    Commission Ursula von der Leyen says that ‘Romania has progressed well in the
    implementation of its recovery and resilience plan, for instance carrying out
    reforms on road safety, renewable energy and public sector cloud services.
    Romania has also been taking important steps to fight undeclared work and
    invest in 5G networks. Now, we encourage Romania to speed up its work within
    the next six months on the two milestones related to energy investments that
    are not yet fulfilled. We encourage all Member States, including Romania, to
    proceed swiftly with the implementation of their recovery and resilience
    plans.’


    Out of the 3.22 billion Euros,
    roughly two thirds are non-reimbursable, while one third is loaned. The first
    payment request was reimbursed to Romania in October 2022, when the country
    received 2.6 billion Euros out of which 1.8 billion in grants and 0.8 in loans.
    Romania benefits from 29 billion Euros allotted to its PNRR, half grants and
    half loans. For this implementation of its National Plan of Recovery and
    Resilience, Romania has already received two-pre-funding installments of
    roughly 3.79 billion Euros.


    (bill)

  • December 30, 2021 UPDATE

    December 30, 2021 UPDATE

    Covid-19 – Romania could enter the 5th wave of the Covid-19 pandemic in January, with the dominant Omicron variant. As this strain is much more contagious than the Delta variant, Romania needs to increase the testing capacity, including in the family physicians’ offices, as well as to improve the response capacity of hospitals – said the health minister, Alexandru Rafila. He has given assurances that innovative medicines used to treat Covid will soon arrive in Romania. Minister Rafila has also called for the re-boosting of the vaccination campaign, which has slowed down at present. In turn, the head of the National Center for the Monitoring and Control of Communicable Diseases, Adriana Pistol, said that the worst scenario indicates, in the 5th wave of the pandemic, 25,000 cases per day and over 1,500 people in ICUs. 1,497 new cases of SARS-CoV-2 infections have been reported in the last 24 hours alongside 37 deaths, one being from the previous day – the Strategic Communication Group reported on Thursday. Since the onset of the pandemic, over 1.8 million COVID-19 cases have been registered in Romania, and almost 60,000 people diagnosed with the novel coronavirus have died. The country has the second lowest vaccination rate among the 27 EU members, after Bulgaria. Less than 7.9 million Romanians have been fully vaccinated, that is a little over 40% of the eligible population. About two million of them have had the booster dose.



    Recovery and Resilience — The Romanian government has completed all the milestones that Romania still had to reach by December 2021 in the application of the National Recovery and Resilience Plan, the Minister of Investments and European Projects, Dan Vîlceanu announced. He said that the government adopted, in this respect, in Thursdays meeting, among others, the Emergency Ordinance regarding the Law on water supply and sewerage and the Railway Infrastructure Development Strategy 2021-2025. Vîlceanu also said that the talks related to the National Recovery and Resilience Plan renegotiations have been completed and that there are still three milestones to be fulfilled, but which do not depend on the Government, but on the agreement between the EBRD and the European Investment Fund. Also on Thursday the government adopted the National Dropout Reduction Program that will benefit from 543 million Euros worth of funds. We remind you that through the National Recovery and Resilience Plan, approved in autumn, in Brussels, Romania is to receive from the European Union, until 2026, about 29 billion Euros in the form of subsidies and loans for investments and reforms. The European Commission has already transferred 1.8 billion Euros to Romania in the form of pre-financing, the equivalent of 13% of the total number of grants allocated.



    Home ownership — Over 96% of Romanias population lived in a privately-owned home in 2020, the highest percentage among EU member states – according to data released on Thursday by Eurostat. While across the EU, the home-ownership rate is slightly decreasing compared to 2019, in Romania the trend is reversed, the home-ownership rate increasing from 95.8 to 96.1%. Other countries with a high home-ownership rate are Slovakia (92%), Hungary and Croatia (both with 91%). At the other end, the countries with a low home-ownership rate are Denmark – 59%, Austria – 55% and Germany – just over 50%. Eurostat data also show that, at EU level, 53% of the population lives in a house, 46% in an apartment, and 1% in floating homes or trailers. Almost 66% of Romanians live in a house and 34% in an apartment. But Romania ranks last in the EU in terms of house size, measured by the average number of rooms per person. While in the EU the average is 1.6 rooms for one person, in Romania it is 1.1 rooms for one person.



    Ghiseul.ro – The Romanian Digitalization Authority announces that the online platform Ghişeul.ro has collected over 1 billion lei (about 200 million Euros) this year. Payments made by users in just 12 months exceed, both in terms of the number of transactions and of the amounts collected, the total figures recorded in the previous 9 years of the platform operation. “It is obvious that Romanians have changed their behavior in relation to the state. We are already working on the Ghişeul.ro mobile application and on version 2.0 of the www.ghiseul.ro web platform”, said the president of the Romanian Digitalization Authority, Octavian Oprea. Launched in 2011, Ghişeul.ro is the official online payment platform of the Romanian state. It is used by citizens and companies to pay for over 350 public services provided by 1,000 institutions and authorities, as well as fines.



    Extradition – The Romanian Justice Ministry has again called for the extradition of the former PSD deputy Cristian Rizea who fled to Chisinau, after having been sentenced in Romania to 4 years and 8 months in prison, for influence peddling, money laundering and influencing declarations. Rizea, who is also accused of illegally obtaining the Moldovan citizenship in 2017, which was withdrawn three years later by former President Igor Dodon, lost the dispute at the Chisinau Court of Appeal and, according to lawyers, he can be extradited easier. Rizea was accused of claiming directly from a businessman the amount of 300 thousand Euros, disguised in the form of two fictitious loan agreements, in exchange for the promise, which was later fulfilled, that he would intervene to solve the problems the respective businessman had with the National Company for the State Protocol Heritage Administration (RAAPPS) and the Chiajna mayor’s office, in Ilfov County (south). The Romanian side sent the extradition request to the Moldovan Justice Ministry on November 5, 2020. The next deadline set by the Moldovan authorities in Rizeas extradition file is January 28, 2022. (LS)