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Tag: pensions

  • Support for people with low pensions

    Support for people with low pensions

    The government has approved an emergency order to grant financial support for pensioners in the public sector and the military whose income does not pass the equivalent in lei of around 515 euros, which is the level of the minimum wage. The authorities say this is intended as a social measure. The Economic and Social Committee, whose opinion is advisory, says the measure will have a positive impact on public sector pensioners, but that it would be fair to apply it to those earning up to 560 euros, the level of the average pension in January 2025. Prime minister Marcel Ciolacu rejected this idea on account of not being sustainable by available budget resources.

     

    Almost 2.7 million Romanian pensioners earn less or the equivalent of this sum, and over 86,000 of them live abroad, according to the ministry of labour, family, youth and social solidarity. The support will be granted by the government in two equal payments of around 80 euros in April and December, respectively, via the regional or sectoral pension agencies. The money will not be taken into account when establishing the ceiling for the approval of the programme for the 90% compensation of the reference price of medicine, or the granting of the minimum inclusion income and of the spa treatment tickets via the system organised and administered by the National Public Pension House.

     

    The measure was first announced at the start of the year, when the government did not raise the pensions to catch up with the inflation rate because of the high budget deficit. To make up for it, the government spoke about the possibility of providing another type of financial support to pensioners. On the other hand, the indexation of pensions to match the inflation rate, which prime minister Ciolacu initially said it might take place in September, was not included in the 2025 budget, finance minister Tanczos Barna said. The reason for this is the high budget deficit recorded last year and the restrictions imposed this year. In 2024, Romania had a huge budget deficit, of 8.6% of GDP, and this year, the government aims at 7%.

     

    The number of pensioners decreased in Romania by almost 32,000 persons in February compared with the previous month, according to the National Public Pension House. 4.6 million pensioners were recorded last month. Almost 570,000 people had worked in agriculture, and the average pension in this case is 130 euros. According to official statistics, 3.7 million people retired at the pension age limit, two thirds of them being women.

  • March 13, 2025

    March 13, 2025

    A roundup of local and international news.

     

    SUPPORT  – Romania’s Foreign Affair Minister Emil Hurezeanu reiterated, at a working meeting with EU ambassadors in Bucharest, Romania’s support for the neighboring Ukraine and for the consolidation of the European Union’s security and defense policy. At the same time, Hurezeanu emphasized the importance of a solid transatlantic partnership, vital for European security and prosperity. The meeting in Bucharest was held in the context of Poland holding the rotating Presidency of the Council of the European Union.

     

    ELECTIONS –  Elena Lasconi, the leader of the pro-Western party USR and Diana Şoşoacă, the head of the populist, ultranationalist party SOS Romania, are today submitting their candidacies for the May presidential elections. Both parties are in the opposition. Sosoaca also ran in last year’s presidential race, but the Constitutional Court rejected her candidacy. Elena Lasconi qualified for the second round, alongside the pro-Russian and anti-West extremist Calin Georgescu, but the Constitutional Court annulled the election due to the electoral process being flawed in favor of the latter. The Court has rejected Georgescu’s candidacy for the upcoming elections. Following this decision, the AUR leader George Simion and POT leader Ana Maria Gavrilă, both populist ultranationalists who supported Georgescu, have announced that they will submit their candidacies, with one of them to withdraw after their validation. Former PSD leader and prime minister Victor Ponta also entered the presidential race, which has triggered his expulsion from the party. The PSD – PNL – UDMR ruling coalition has a common candidate, namely, the former Liberal leader Crin Antonescu. He and the current Bucharest mayor, Nicusor Dan, are the only political competitors accepted, so far, by the Central Electoral Bureau and validated by the Constitutional Court. The deadline for registering candidacies at the Central Electoral Bureau is March 15.

     

    INFLATION – The annual inflation rate rose to 5.02% in February, from 4.95% in January. Food prices rose by 4.54%, non-food prices by 4.79%, and services by 6.42%, according to data published on Thursday by the National Institute of Statistics. The National Bank of Romania has revised upwards, to 3.8%, from 3.5% previously, the inflation forecast for the end of 2025 and anticipates that it will reach 3.1% at the end of 2026, according to data made public in February by the Governor of the National Bank, Mugur Isărescu.

     

    STRIKE – A two-hour warning strike has taken place today at IAR Ghimbav, a Romanian aeronautical plant in central Romania. The reason for the protest is the government’s emergency ordinance on reducing budget spending. According to the unions, the document stipulates that the bonus granted under the Collective Labor Agreement upon retirement is paid in instalments, over five years, while following fresh negotiations it is to be capped at a maximum of one basic salary. The protesters say that an ordinance that cancels the granting of certain rights, directly affects the negotiation of the collective labor agreement.

     

    PLANT – Several dozen employees of the Liberty Galati steel plant (southeastern Romania) protested on Wednesday, unhappy with the delays in the payment of salaries and other rights. The plant has not been operational for nine months. Workers have not yet taken the decision to call an all-out strike and say they are still waiting for clarification from the plant’s management. According to experts, the situation in Galati reflects the general crisis in the European steel industry.

     

    PENSIONERS – The Bucharest government has today approved the granting of financial aid of 800 lei (approx. 160 euros) for 2.5 million pensioners. Social-Democratic Prime Minister Marcel Ciolacu explained that this support is intended for those with incomes of up to 2,574 lei (approx. 515 euros). The first installment will be granted in April, and the second in December. Also today, the executive has also approved a draft emergency order to amend Order no. 59/2000 regarding the status of forestry employees. Ciolacu announced that they would no longer benefit bonuses equivalent to at least five salaries, in the last month of activity. These bonuses amounted to 10 salaries in the case of Romsilva leaders, Marcel Ciolacu also said. In January, the Minister of Environment, Mircea Fechet, said that there are hundreds of former Romsilva employees who have received retirement bonuses of 100,000 euros.

     

    FOOTBALL – The Romanian football champion, FCSB (Bucharest), is up against the French team Olympique Lyon, this evening, away, in the decisive leg of the round of 16 of the Europa League. FCSB lost the first match against Lyon 3-1. The Bucharest team qualified for the round of 16 of the Europa League after eliminating, following a double victory, the Greek team PAOK Salonic, coached by Romanian Răzvan Lucescu. (EE)

     

  • February 13, 2025 UDPATE 1

    February 13, 2025 UDPATE 1

    GOVERNMENT – The Cabinet led by Prime Minister Marcel Ciolacu on Thursday approved two decisions regarding the prioritization of projects included in the ‘Anghel Saligny’ National Investment Program and in the program carried out by the National Investment Company (CNI). At the same time, the extension of the free zone in the Port of Constanta (southeast), on the Black Sea, was on the agenda of the Government meeting. The government thus seeks to stimulate the economic development of the region and improve trade flows in this area. Also on Thursday, new measures were adopted that support the reorganization of the National Anti-Drug Agency. On the other hand, Marcel Ciolacu announced that the ruling coalition has decided to provide financial support worth €160 euros to pensioners with low incomes. This aid will benefit approximately 2.5 million pensioners with incomes of up to €515, tantamount to the national minimum wage. The aid will be granted in two installments, in April and in the second half of the year. In the context of the latest price hikes, this measure will help maintain a minimum level of social protection for the elderly. The aid is intended to compensate for the increase in living costs and to provide essential financial support for pensioners. We recall that, earlier this year, the government decided not to raise pensions in line with the inflation rate, as planned, a move that generated society-wide dissatisfaction. (VP)

  • September 1, 2024 UPDATE

    September 1, 2024 UPDATE

    DIPLOMACY Diplomacy plays a crucial role in ensuring peace and a framework favourable for the development of the country, president Klaus Iohannis said on the Romanian Diplomacy Day, celebrated on September 1. In an international context marked by conflicts, crises and challenges to the rule-based international order by certain actors, Romania benefits from security and stability, and contributes to ensuring Europe’s security, thanks to a coherent and courageous foreign policy, guided by well defined and well applied principles and values, the president emphasised. In turn, PM Marcel Ciolacu said the role of Romania’s diplomacy is to make a contribution to the regional and global stability and security, as well as to protect and promote national interests and the interests of Romanian citizens. The foreign ministry will remain an institution that safeguards the interests of Romania, as a democratic, free and responsible EU member country and a trustworthy NATO Ally, the foreign minister Luminiţa Odobescu said in her message on this occasion.

     

    PENSIONS The ministry for labour and social solidarity has completed the revision of public pension benefits in time, and over 82% of pensioners will receive increased benefits as of September, according to a message posted by the institution on its Facebook account. More than 3.8 million people have had their pensions raised by an average 26.65%. The ministry reiterated that although decisions were issued under which certain pensioners’ benefits were cut down, this is only valid on paper and the higher amount will continue to be paid. Meanwhile, the Parliament of Romania resumes its sessions on Monday, and its agenda includes a bill raising the pension tax threshold from EUR 400 at present to EUR 600. The ruling coalition comprising the Social Democratic Party and the National Liberal Party decided to rush the new bill through Parliament, so that it may take effect on October 1.

     

    FLOODS Rivers in Dobrogea (south-east) are under a code yellow alert for flash floods, Romanian weather experts warned on Sunday. The two counties in the region, Constanta and Tulcea, were under code yellow and orange alerts for heavy rainfalls and strong wind on Sunday as well. The heavy rainfalls in the past few days caused damage in the south-east of Romania. The most affected region was the Black Sea coast, where precipitations reached 200 litres per square metre, the equivalent of 6 months’ worth of rain. Agigea, Tuzla, Venus, Saturn, Mangalia and Vama Veche were among the most affected resorts.

     

    INSURANCE Four out of 5 households in Romania are vulnerable to natural disasters, fire or explosion, according to data released by the National Insurers Union. Only 17% of the homes in Romania are protected by an optional insurance policy. Only 3 regions are above the national average—Bucharest-Ilfov, 29%, the west of the country, with 20%, and the centre of the country, 18%.

     

    SCHOOLS The number of schools in Romania to use electronic class registers in the school year beginning on September 9 is 63% higher than last year. According to the education ministry, nearly 1,900 schools will use electronic registration, 733 more than in 2023. As many as 167 of them are in Bucharest. Under the law, they use private software or platforms, and cannot request students or their families to pay for these services. All electronic registers will have authentication options for teachers, students and parents.

     

    STRIKE The families of the Israeli hostages in Gaza have called for an all-out strike, to push the government into reaching an agreement with the Hamas Palestinian terrorist group concerning the release of all hostages. Civil service personnel around the country responded by declaring a half-day strike as of Monday. The call for a strike was made after the Israeli army found the bodies of 6 Israeli hostages in a tunnel in Rafah, in the south of Gaza Strip. Israel’s PM Benjamin Netanyahu said the hostage killing proved that Hamas was not interested in a deal, the BBC reports. (AMP)

  • September 1, 2024

    September 1, 2024

    VISIT   The president of Romania, Klaus Iohannis, urged the citizens of the Republic of Moldova to choose to stay on their path towards EU integration in this autumn’s referendum. While on an official visit to Chişinău, Iohannis said Romania’s strategic commitment to supporting the democratic development of Moldova would remain unwavering in the long run, and called on all international partners to provide consistent support to Moldova’s EU accession efforts. In turn, the president of Moldova, Maia Sandu thanked Romania for its support in the initiation of EU accession negotiations, in fighting the COVID pandemic and in mitigating the electricity shortages caused by the Russian bombings in Ukraine. She said Romania played a vital part in consolidating her country’s energy independence. The two officials signed a Joint Declaration on bilateral cooperation to consolidate the resilience of the Republic of Moldova. The Romanian president’s visit to Chişinău took place as Romania and Moldova celebrated the Romanian Language Day on August 31.

     

    PARLIAMENT The Parliament of Romania resumes its sessions tomorrow, after the summer recess. Its agenda includes a bill raising the pension tax threshold from EUR 400 at present to EUR 600. The ruling coalition comprising the Social Democratic Party and the National Liberal Party decided a few days ago that the new bill should be rushed through Parliament, so that it may take effect on October 1, explained the culture minister Raluca Turcan, a former labour minister. As of this month, the reviewed pension benefits are being paid to beneficiaries. Of the 4.7 million pensioners in Romania, 3.8 million will receive higher benefits, and the remaining 900,000 will be paid the same amounts as they have so far. Although decisions were issued under which certain pensioners’ benefits were cut down, this is only valid on paper, with the Labour Ministry and National Pensions Agency to send notifications in this respect to all the beneficiaries in this situation.

     

    TOURISM The Romanian minister of economy, entrepreneurship and tourism, Radu Oprea, believes the national tourism industry has extremely high potential, but warns that success cannot be achieved without a well-thought plan. While in the resort of Neptun, on the Romanian Black Sea coast, he said a true public-private partnership is needed, and added that a tourism development strategy is currently reviewed by relevant ministries. Oprea voiced his dissatisfaction with the local authorities in the seaside area, which ruined the resort concept by approving the construction of apartment buildings next to hotels. Such urbanisation, the official said, threatens to destroy the charm of seaside resorts and implicitly their financial success.

     

    FLOODS The heavy rainfalls in the past few days caused damage in the south-east of Romania. The most affected region is the Black Sea coast, where precipitations reached 200 litres per square metre, the equivalent of 6 months’ worth of rain. A heavy rainfall alert is still in place in the region. Agigea, Tuzla, Venus, Saturn, Mangalia and Vama Veche are among the most affected resorts. In certain parts of the town of Mangalia, waters reached car windows, while in Vama Veche the floods tore the beach in two, overturned vehicles and destroyed outdoor restaurants. A total of 17 hotels and guest houses were flooded. Fire fighters with the Dobrogea Emergency Inspectorate received 800 calls for help, and rescued 61 people in 24 hours.

     

    INSURANCE Four out of 5 households in Romania are vulnerable to natural disasters, fire or explosion, according to data released by the National Insurers Union. Only 17% of the homes in Romania are protected by an optional insurance policy. Only 3 regions are above the national average—Bucharest-Ilfov, 29%, the west of the country, with 20%, and the centre of the country, 18%.

     

    SCHOOLS The number of schools in Romania to use electronic class registers in the school year beginning on September 9 is 63% higher than last year. According to the education ministry, nearly 1,900 schools will use electronic registration, 733 more than in 2023. As many as 167 of them are in Bucharest. Under the law, they use private software or platforms, and cannot request students or their families to pay for these services. All electronic registers will have authentication options for teachers, students and parents. (AMP)

  • August 31, 2024 UPDATE

    August 31, 2024 UPDATE

     

    LANGUAGE The Romanian Language Day was celebrated on Saturday both in Romania and in the R. of Moldova, where this holiday was first introduced, to mark a return to the Romanian language and Latin alphabet in the former Soviet Republic. Special events were held on both sides of the river Prut. In a message posted on this occasion, president Klaus Iohannis said the Romanian language is not just a set of words, but a means to pass on the cultural heritage and an invaluable heritage we are leaving for the future generations to cherish and enrich. As Mr. Iohannis emphasised, since last year the Romanian language has also been the official language of Moldova, after a law was promulgated by president Maia Sandu, replacing the phrase “Moldovan language” with the phrase “Romanian language.” This has been essential to restoring a historic fact, namely that Romanians living on both sides of the river Prut share a common language, culture and history, Iohannis said. According to him, Romanian is studied in 59 universities in 37 countries in the world. Public reading sessions, art exhibitions, film screenings, music recitals are organised by Romanian cultural institutes around the world to mark the Romanian Language Day.

     

    VISIT The president of Romania, Klaus Iohannis, Saturday was on an official visit to the Republic of Moldova, for talks with his counterpart Maia Sandu. On this occasion, the two officials signed a Joint Declaration on bilateral cooperation to consolidate the resilience of the Republic of Moldova, which has received consistent support from Romania so far to withstand the many challenges it has been facing. According to Iohannis, the hybrid war waged against the Republic of Moldova and its citizens is growing more intense and taking ever more severe forms. He emphasized that Romania’s strategic commitment to supporting the democratic development of Moldova would remain unwavering in the long run, and called on all international partners to provide consistent support in its EU accession efforts. In turn, Maia Sandu said Romania played a vital part in consolidating her country’s energy independence, and also highlighted Bucharest’s support in the EU accession process. The Romanian president’s visit to Chişinău took place as Romania and Moldova celebrated the Romanian Language Day on August 31.

     

    RATING Fitch Rating Friday reconfirmed Romania’s long- and short-term foreign-currency government debt rating at BBB-/F3 with a stable outlook, the finance ministry reports. According to the institution, the decision is supported by the capital inflow from the European Union, which sustains the country’s income convergence, foreign financing and macroeconomic stability, as well as a positive trend in the GDP per capita and in governance and human development indices, which are above ‘BBB’ category peers. The international institution’s decision reconfirms the confidence in the measures taken by the Romanian government to ensure public funding sustainability, the finance minister Marcel Boloş said. On the other hand, these strengths are balanced against large budget and current account deficits relative to peers, high budget rigidities, and a fairly high net external debtor position. The agency expects Romania’s economy to grow by 2.5% this year.

     

    PENSIONS A bill on raising the pension tax threshold in Romania from EUR 400 at present to EUR 600 is to be endorsed next week in the Chamber of Deputies, the decision-making body in this respect, the culture minister Raluca Turcan announced. She said the measure had been promoted since 2022 by the National Liberal Party, and that after its endorsement in Parliament it would take effect on October 1. The ruling coalition comprising the Social Democratic Party and the National Liberal Party decided a few days ago that the new bill should be rushed through Parliament, instead of being endorsed by the government under an emergency order.

     

    LAW The legislation regarding extended restraining orders took effect in Romania on Saturday. The goal is to protect all victims, irrespective of their relations with the abuser. The justice minister, Alina Ghorghiu, says that previously, restraining orders were only issued for cases of domestic violence, but the new legislation also includes psychological abuse. She encouraged all victims to seek protection and to report abuse cases, regardless of the form of abuse and of who the abuser is. In this context, the Romanian justice ministry has initiated an awareness raising campaign called “Living in fear is not living.” In 2023, nearly 80,000 cases of domestic violence were reported to the police, and in over 30,000 cases the victims were women. (AMP)

  • August 27, 2024 UPDATE

    August 27, 2024 UPDATE

     

    INDEPENDENCE President Maia Sandu on Tuesday conveyed a message congratulating the citizens of the Republic of Moldova on the 33rd anniversary of 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 said, quoted by Moldpres. In Bucharest, the Romanian president Klaus Iohannis says that Romania will continue to provide strategic support to Moldova in all areas. ‘I congratulate the citizens of the Republic of Moldova on their Independence Day! You are part of the great European family and carrying on the present efforts will turn the EU accession into an accomplished goal,’ the Romanian head of state posted on X. In Chişinău, the presidents of the 3 Baltic states—Estonia, Latvia and Lithuania—signed a joint declaration reiterating their support for Moldova’s EU accession. They attended the ceremonies occasioned by Moldova’s Independence Day, invited by president Maia Sandu, who did not take part in the celebration as she tested positive for coronavirus.

     

    PENSIONS As of October 1st the pension tax threshold in Romania is be raised from EUR 400 at present to EUR 600, the 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 amount exceeding RON 3,000. The minister’s statement comes after the PM announced that he had instructed the finance minister to analyse whether a new tax threshold was needed after the implementation of the new pension regulations. The finance ministry is expected to conduct another review so that pensioners may not incur loses or have food vouchers withdrawn. Pensions below EUR 400 are presently tax exempt, but a 10% tax is levied on pensions exceeding this sum.

     

    UNEMPLOYMENT In Romania, the unemployment rate was 3.09% at the end of July 2024, 0.03% more than in the previous month, the National Employment Agency announced. The number of unemployed people in rural communities is 3 times larger than in cities. Most unemployed people are aged 40 – 49, followed by people over 55 years of age.

     

    DROUGHT Two rivers in Argeş County (southern Romania) have completely dried up. In more than 600 settlements in Romania, water supply is restricted, and in hundreds of villages not connected to centralised networks wells are dried up because of the extensive drought and extreme heat. The Romanian Waters National Agency also says that on 42 of the 120 monitored sections, the Danube water flow is below the minimum level required to meet water needs. Fortunately, the Cernavodă Nuclear Power Plant in the south-east of the country has no problems in terms of water supply.

     

    REAL ESTATE Home prices in Romania have risen by an average 12% this year compared to 2023, according to a recent real estate market survey. The city of Braşov has grown above expectations and is getting closer to Cluj Napoca, which sees the highest home prices in the country. The national average price is EUR 1,611 per square metre. Timişoara (west) remains the most affordable of the big cities, as compared to the salary level. On the other hand, rent has not grown as fast this year as it did in 2023.

     

    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, winner of this year’s Wimbledon tournament. The other Romanians 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. (AMP)

  • 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)

     

  • August 24, 2024

    August 24, 2024

     

    CONVENTION Romanian Social Democrats convene today to elect their new leadership and to appoint their candidate in the forthcoming presidential election. The party leader, PM Marcel Ciolacu, seeks a new term in office, backed by a team of 21 candidates. Ciolacu has also announced he will be running for president of Romania, and is to be validated by the party congress today. Another topic on today’s agenda is the election campaign, and the Social Democratic spokesman, Lucian Romaşcanu, said the party is able to mobilise so that in December Romania may have a Social Democratic president. The party last won a presidential race in 2000. The first round of the election is scheduled on November 24, and the second on December 8th.

     

    UKRAINE The president of Romania, Klaus Iohannis, sent a letter to his Ukrainian counterpart, Volodymyr Zelenskyy, on Ukraine’s Independence Day. According to the Romanian presidency, Iohannis voiced his appreciation for the courage and resilience of the Ukrainian armed forces and civilians in defending their country’s independence, sovereignty and territorial integrity. He reiterated Bucharest’s firm commitment to provide constant, predictable and multidimensional support to Ukraine until its victory and further on in its reconstruction and European integration process. Iohannis emphasized that the security cooperation agreement signed by the 2 countries in July, on the sidelines of the NATO summit in Washington, proves that Romania’s support is not circumstantial, but long-standing, predictable and transparent. On Ukraine’s Independence Day, the Cotroceni Palace in Bucureşti, the headquarters of the Romanian presidency, will be lit tonight in Ukraine’s national colours.

     

    CROPS The European Union’s maize output will be smaller because of the drought and extreme heat in Romania, whose crops will be 30% lower. Estimates for the EU’s maize output were cut from 63 million tonnes, as reported last year, to 60-61 million tonnes, which is still above the level in 2022, when the drought affected the entire continent. Romania’s output is expected to drop from around 11 million tonnes last year to less than 8 million this autumn. In France, favourable humidity levels kept maize crops in a generally good condition, and the increase of the areas under crops should ensure higher output, namely over 14 million tonnes. In Poland, smaller areas under maize crops may lead to a 13% drop in output, while in Germany the crops are estimated to be 2% lower.

     

    PENSIONS The National Liberal Party, a junior member of the ruling coalition in Romania, proposes new amendments to the Pensions Law, so as to address the situation of pensioners whose benefits have been cut down in the latest revision. The Liberal leader and Senate speaker Nicolae Ciucă said the law should not have retrospective effect, and confirmed that the pensioners whose benefits have been cut down on paper will not benefit from cost-of-living adjustments for several years, although they will not be paid smaller amounts. According to official data, over 700,000 pensioners have received decisions by which their benefits have been cut down. These include workers in hazardous conditions, such as coal miners, engine drivers and nuclear industry personnel, who were able to stop working before the standard retirement age. Also at a disadvantage are people with disabilities, where the revised benefits are smaller by as much as 60%, for instance for the visually impaired. Hundreds of people are already asking for explanations from the authorities. They have until September 1 to appeal the decisions, and may even take the matter to court.

     

    SCHOOLS Students in secondary schools and high schools in Romania with final grades above 9.50 will receive merits scholarships, under the new School Regulations recently published in the Official Journal. Merit and resilience scholarships will be granted to at least 30% of the students in each class, including in professional and dual education units. Merit scholarships for 5th graders will be granted based on the average grades in the first two modules of the current school year. For 9th-graders, scholarships will be granted based on the high school admission results, which should be above 9.50. Scholarships in public secondary schools and high schools are financed by the education ministry, except for those in military high schools, which will be funded by the defence ministry. For the new academic year, the merit scholarship minimum amount is nearly EUR 90. This amount may be increased by school boards, depending on the budget earmarked by the local authorities. (AMP)

  • Higher pensions in Romania

    Higher pensions in Romania

    More than half a million pension recalculation decisions were handed by the postmen to the beneficiaries, on Friday, on the first day of their distribution. The Romanian Post is the only courier and postal services company in Romania that reaches all corners of the country, being the main provider of postal services at the national level. If the beneficiary of the decision is not at home, the document can be handed to a family member or a relative, or it can be picked up, later, from the post office. However, most of the pensioners were at home, anxiously awaiting the decisions, hoping that they will be among those who will receive more money. The postman made most of them happy, but there are also quite a few pensioners who did not receive any increase. More than 3.8 million pensions out of the total of almost 4.6 million were increased as a result of the recalculation, and the average increase is 622 lei (approx. 125 Euros), says the Minister of Labor and Social Solidarity, Simona Bucura-Oprescu. She also announced when the recalculated pensions will reach the beneficiaries.

     

    Simona Bucura-Oprescu: “On August 26, the first installment will start being transferred to the Romanian Post, and on September 2, the money will be delivered by the postal workers to the pensioners. On September 12, the money will be transferred for those who receive their money on a bank card. As of September 2, the postal agents will hand both the new pension coupons and the recalculated pensions for those who receive their money through the Romanian Post. Also, from September 1 to March 1, the process of capitalizing the rights from non-permanent incomes prior to 2001 will be unfolding, based on certificates from employers.” Said the labor minister Simona Bucura-Oprescu adding that ‘No pension is reduced’.

     

    The increases are from 1% to 100% depending on the professional record of each pensioner, the contributions they had throughout their working life and depending on the year of retirement, stated, in turn, the president of the National Pensions House, Daniel Baciu. He pointed out that, in the coming years, no pension in Romania will be “frozen”, as there is an index-linked pension mechanism stipulated in the new law that provides for increases in line with the inflation rate. Following the new recalculation decisions, people who have worked over 40 years and who have not benefited from the correction index in recent years will have substantial increases.

     

    Most pensions, approximately 3 million, will be increased by amounts between 1 lei and 1,000 lei (approx. 200 Euros). There will also be pensions – almost 8,000 – which will increase by more than 3,000 lei, as well as approximately 800,000 pensioners who will not receive any increase. If pensioners need clarifications about the recalculation decision, they can request details from the territorial pension houses. The authorities say that they can request verification and revision of the pension file, and then a new decision can be issued, without going to court. (LS)

  • August 19, 2024

    August 19, 2024

    HEAT WAVE A persistent heat wave is reported in Romania, with code red, orange and yellow alerts issued in most regions of the country. The temperature-humidity index is above 80%, while highs range between 29 and 39 degrees Celsius. In Bucharest, the temperature is expected to reach 37 degrees Celsius, after 31 degrees Celsius reported at noon.

     

    EU PM Marcel Ciolacu makes a visit to Brussels on Wednesday and Thursday, to talk with the head of the European Commission, Ursula von der Leyen, about the seats Romania will hold in the future Commission. According to governmental sources, Bucharest may appoint the new commissioner for enlargement, who will be nominated from among the Social Democratic MEPs. Meanwhile, also this week, the government is scheduled to discuss the national strategy for the defence industry. Its goals are to ensure the development, revamping and upgrading of defence facilities, and to promote research, development and innovation by opening excellence centres and by attracting foreign and Romanian investors.

     

    CAR SCRAPPING A new session of the “Rabla Plus” national car scrapping programme, aimed at facilitating the purchase of electric and hybrid vehicles by individuals, public institutions and local administration units, has been launched today. According to the Environment Fund Authority, applicants receive a voucher for the purchase of a new vehicle, in return for scrapping 1 or 2 vehicles older than 6 years. The voucher for the purchase of an EV is worth approx. EUR 5,000, and the one for a hybrid car or electric motorcycle is around EUR 2,600, irrespective of the number of cars scrapped. For public institutions, the voucher amounts to EUR 24,000.

     

    PENSIONS Millions of Romanian pensioners will receive pension benefits based on a new calculation formula as of September 1. The authorities promise this new system would remove all inequities in the pension system. According to official data, after recalculation the average public pension benefits will increase from around EUR 460 to around EUR 540. The finance minister, Marcel Boloș, says that in the forthcoming period the pressure on the public deficit will increase. Under the new regulations, in order to receive public pension benefits in Romania the minimum payment contribution period will be 15 years, with the retirement age planned to reach 65 for both men and women in 2035.

     

    BACCALAUREATE The autumn session of the baccalaureate exam is under way in Romania. After the Romanian language and literature test on Monday, written tests will be held in mathematics and history in the next few days, followed by tests in the subjects chosen by the applicants. The final results will be announced on August 30. Over 33,000 applicants have enrolled for the exam this autumn, following an over 78% pass rate at the June session.

     

    UKRAINE Ukraine continues its attacks in Russia’s Kursk region, where it destroyed a second strategic bridge on Sunday. Military analysts quoted by Reuters say there are 3 strategic bridges facilitating military supply for the Russian forces in Kursk. Kyiv claims to have seized some 1,150 square km and over 80 settlements so far. This is the 14th day of the Ukrainian strike, the first by a foreign army in Russia since WWII, with Moscow seemingly unable to initiate large-scale defence operations. The Ukrainian president, Volodymyr Zelenskyy, reiterated that Kyiv’s goal is to create a buffer zone to protect Ukraine’s border regions from Russian bombings. Meanwhile, Belarus announced the mobilisation of one-third of its army at the border, in response to the Ukrainian operations. At the start of the offensive in Kursk, Belarus, Russia’s closest ally and the country that allowed Russia to use its territory to attack Ukraine, claimed that Ukrainian military drones had violated its air space. (AMP)

  • August 16, 2024 UPDATE

    August 16, 2024 UPDATE

    Gas – Romania currently has 2.8 billion cubic meters of natural gas stored in underground storages, which accounts for over 88% of the total storage capacity, given that, according to the European directives, the storages must be 85% full on September 1, the Energy Minister, Sebastian Burduja, announced on Friday. According to an Energy Ministry press release “daily, Romania produces approximately 25 million cubic meters of natural gas, consumes about half, and another 10 – 11 million cubic meters are stored”. Sebastian Burduja has also announced that Romania will continue to store natural gas until it reaches 100% of its storage capacity. According to him, the storage of natural gas for the winter season is all the more important since the neighboring Ukraine has announced that it will no longer extend the transit contract of Russian gas on its territory.

     

    Pensions – 4.6 million Romanian pensioners are to receive higher pensions by the end of the month. According to the Minister of Labour and Social Solidarity, Simona Bucura-Oprescu, over 80% of the pensioners are to benefit from recalculated pensions. Roughly two million are to get their pensions higher by 100 Euros. For more than one million the rises will range between 500 and 1,000 lei but 7,700 of them will see more than 3 thousand lei added to their initial pensions. Significant raises will see the people who worked over 40 years and didn’t benefit from the correction index of the past years. According to Minister Bucura-Oprescu, no pension cuts will be operated, and people will receive their recalculated pensions in September.

     

    Gymnastics – The Romanian gymnast Ana Maria Barbosu on Friday came into the possession of the bronze medal won in the floor final at the Olympic Games in Paris. The event took place in a ceremony organized on Friday on the esplanade of the Olympic House in Bucharest, following the decision of the Court of Arbitration for Sport. We remind you that, on August 5, in the floor final, Ana Maria Bărbosu was awarded the bronze medal for a few tens of seconds, but the American Jordan Chiles filed an appeal and her score was increased, so she finished in third position. Later, Romania also filed an appeal, which was finally approved. “I am happy to be in the possession of this medal and I hope to continue representing Romania at the highest level and to bring it as many medals as possible”, said the athlete.

     

    Migrants – 32 migrants were discovered, on Friday, hidden in a truck driven by a Romanian at the border point at Nădlac II, in Arad county in western Romania. They come, according to the border police, from Iraq, Bangladesh, Sri Lanka, Pakistan and Afghanistan and intended to fraudulently cross the border with Hungary in order to reach Western Europe. The truck driver is being investigated for migrant trafficking, and the citizens discovered are being investigated for attempting to cross the border fraudulently. According to the waybill, the driver was transporting furniture on the Romania-Italy route.

     

    Navy Day – ‘Romania has been acknowledged and appreciated by its allies as a solid pillar of regional security and a major contributor to the process of strengthening NATO’s deterrence and defense posture on its eastern flank’ the Romanian president Klaus Iohannis said in Constanta, on the Romanian Black Sea Coast, where he participated in the events dedicated to Navy Day celebrated on Thursday. According to Iohannis, although we are living in times marked by multiple security challenges, in the context of the war Russia is waging on Ukraine, Romania is today a safe and stable country and its citizens are defended and protected against any potential threat. Thousands of tourists and citizens of Constanta gathered to watch the biggest naval show of the year, which involved the participation of over two thousand sailors and servicemen from Romania and the armed forces deployed here. The event was also attended by 15 military vessels, coast guard patrol boats, F-16 fighters, surveillance aircraft belonging to the USA and France, Puma Naval helicopters and paratroopers. (LS)

  • January 4, 2024 UPDATE

    January 4, 2024 UPDATE

    Meeting – The Romanian government met Thursday in the first session of 2024. The government members adopted, among other things, an initiative to optimize the process of issuing passports. The elaborated draft law, which will be sent to Parliament for debate and approval, makes concise and clear the role of the General Directorate of Passports in relation to attesting the quality of Romanian citizenship, in cooperation with other institutions. In order to optimize the process of issuing travel documents, they consider giving the General Directorate of Passports the possibility to verify the collection of the amount representing the value of simple passports, and to return the amount respectively, in situations where it was not paid properly or the related service was not provided. Another draft law adopted on Thursday stipulates that disputes resulting from contracts of mandate concluded by state companies in Romania must be settled in the country. The move transposes European Union norms into the law on international judicial cooperation in criminal and criminal procedure matters. Also on Thursday, the Government adopted a modification of the funding from the state budget of the earthquakes and landslides natural risk mapping.



    Missiles – NATO has announced its decision to support a group of member countries including Germany, the Netherlands, Romania and Spain to purchase up to 1,000 Patriot anti-aircraft missiles. According to NATO, the European production will be increased to cover the growing demand, being also aimed at strengthening the European Sky Shield. The contract stands at 5.5 billion dollars and the cost of each Patriot missile is around 4 million dollars. The contract also covers the maintenance of the Patriot defense systems. NATO Secretary General Jens Stoltenberg has underlined that raising the ammunition production is essential for the security of the allied countries and Ukraine.



    Agreement — A person’s period of work and their rights to pension have mutually been recognized by Romania and the United States, after the law ratifying the agreement on the issue was promulgated by Romania’s president Klaus Iohannis. Under the new agreement, it will be possible to capitalize on the periods worked both in Romania and the United States, in order to open the pension right on the principle of accumulation, with the proportional granting of the pension by each state, depending on the contribution periods completed. The document also provides for the export of pensions, a major facility regarding the mobility of pensioners in the two countries and maintaining their access to the pension rights being paid. The bill also includes provisions for the posted workers who have been exempted from paying health and social security contributions to the country where they were sent to work.



    Priorities – Solving the problem of resident physicians who passed the specialty exam at the end of 2023 was mentioned as a priority for the beginning of the year by Romania’s Prime Minister Marcel Ciolacu. At the start of the first Government meeting in 2024, the Prime Minister recalled that there are approximately 4,500 doctors in which the Romanian state has invested hundreds of millions of Euros and stated that the government must ensure that they remain in Romania. Ciolacu asked the Ministries of Health and Development to update the lists of vacant positions and to come up with memoranda for organizing contests to fill these vacancies, and he also asked the Finance Ministry to cooperate so that this should happen as soon as possible. According to the data of the European Statistical Office, Romania had 350 active physicians per 100,000 inhabitants in 2021. The ranking was led by Greece with 629 physicians per 100,000 inhabitants, and the lowest rate was recorded in France with 318 doctors per 100,000 inhabitants. All in all, in 2021, there were 1.82 million doctors in the European Union.



    Chisinau – Almost 81% of the primary and secondary school children in the Republic of Moldova are taught in Romanian, according to data recently published by the National Bureau of Statistics in Chisinau. Besides this percentage, 19% are taught in Russian and 0.1% study in English. In the 2023-2024 school year, over 1,200 general primary and secondary education institutions operate in the Republic of Moldova, of which almost 900 are in rural areas. Statistical data also show that the number of students studying in public schools decreased this school year compared to the previous one, and more and more students are studying in private schools. Also, last year, the number of secondary school graduates decreased by almost 5%, and that of high school graduates increased by 4%. (LS)

  • November 29, 2023

    November 29, 2023

    PENSIONS Romania’s former MPs may keep their special
    pensions, and Parliament is only allowed to eliminate these benefits in the
    future, the Constitutional Court ruled unanimously on Tuesday. On June 26,
    Parliament voted in favour of scrapping special pensions for Senators and Deputies,
    an obligation undertaken by Romania under its National Recovery and Resilience
    Plan. Close to 850 former MPs benefited from special pensions in May this year.


    INVESTIGATION The Senate of
    Romania is to decide on Wednesday whether to approve the request of the
    National Anti-Corruption Directorate to commence prosecution against the former
    PM Florin Cîţu for complicity to abuse of office in an investigation
    concerning the procurement of COVID-19 vaccines. Florin Cîţu said he would
    request his fellow Liberal Party members to lift his parliamentary immunity. Previously,
    president Klaus Iohannis forwarded to the Justice Ministry the prosecution
    requests concerning 2 former health ministers from Save Romania Union, Vlad
    Voiculescu and Ioana Mihăilă, and notified the General Prosecutor’s Office in
    this respect. The 2 are probed into for abuse of office in relation to the
    procurement of vaccines.


    CORRUPTION The mayor of the city of Baia Mare (north-west),
    Cătălin Cherecheş, who fled the country after being sentenced to 5
    years in prison in a corruption case, was apprehended in Germany, the Romanian
    Police announced. He was identified and taken into custody by the police in Bavaria based on the information provided by the Romanian
    authorities. Sources close to the investigation say the former mayor was aided
    by an aunt and was attempting to leave Germany when he was caught. Cherecheş
    had left the country on Friday, using the ID of a family member, and the procedures
    for returning him to the country are under way.


    NATURAL GAS Europe
    has taken major steps in terms of preparations for winter. Following the energy
    crisis in the post-pandemic period and the start of the Russian invasion in
    Ukraine, EU member states have replaced Russian natural gas with liquefied gas
    from the US and natural gas from Norway, and have unprecedented stocks. Reuters
    reports that in mid-November oil stocks were 12 million barrels above the season
    average of the past 10 years. Natural gas stocks are also at record-high
    levels, after consumption in the industrial sector dropped by around 13%. Average
    prices, adjusted to inflation, were around EUR 48 per megawatt hour, down from
    EUR 223 in August 2022, and analysts expect the downward trend will continue
    next year. Bucharest says Romania will not have problems with the supply of
    natural gas if temperatures remain normal this winter. The Romanian energy
    minister Sebastin Burduja said all gas storage facilities are full and the
    government has emergency supply plans in place if necessary.


    NATO The Romanian
    diplomacy chief Luminita Odobescu takes part in a 2-day meeting of NATO foreign
    ministers, held in Brussels. The meeting takes place in a complicated security
    context, with
    an impact on multiple geographic areas of interest, including the continuing
    Russian aggression against Ukraine, the military conflict between Israel and
    Hamas and tensions in the Western Balkans. The meeting also has special
    political importance in terms of the preparations for the 2024 Summit in
    Washington. Luminita Odobescu will highlight the strategic importance of the
    Black Sea for the Euro-Atlantic security and will plead for a more structured
    approach to the region, in line with the decisions taken by NATO in Madrid and
    Vilnius. The NATO secretary general Jens Stoltenberg hailed Germany’s boosting
    its support for Ukraine by EUR 8 bln and the additional EUR 2 bln provided by
    the Netherlands. He also mentioned the set-up of a training centre for Ukrainian
    F-16 aircraft pilots. (AMP)

  • Deputies pass new pensions law

    Deputies pass new pensions law

    The Chamber of Deputies in
    Bucharest on Monday passed the bill on the public pensions system through an
    emergency procedure, following a similar move by the Senate. On the same day, the
    Chamber of Deputies’ specialist committee also clarified a controversial
    provision that would have led to the decrease of certain pensions after the
    recalculation made through the new law. They also established that miners can
    still retire at the age of 45. Additional points are granted to miners who
    worked underground and persons who worked in the research and exploitation of
    nuclear raw material.




    The new law provides, among
    others, for the gradual standardisation of the retirement age for men and women
    at 65, and additional points for contribution periods exceeding 25 years. Prime
    minister and Social Democrat leader Marcel Ciolacu said the new pensions law is
    fair and predictable, was agreed with the World Bank and the European
    Commission and is sustainable. Marcel Ciolacu said pensions will go up twice
    next year, in January by 13.8% and again by recalculation. Labour minister Simona Bucura-Oprescu said the provisions of the new
    law comply with the equality and contribution principles.




    The opposition, however, criticised the hasty manner
    in which the debates were held and the rejection of all the amendments proposed
    by the opposition parties, the Save Romania Union, the Alliance for the Union
    of Romanians and the Democratic Union of Ethnic Hungarians in Romania. Moreover,
    these parties believe the pensions increase provided for under the new law is
    not financially sustainable. Antonio Andruşceac, from the Alliance for the
    Union of Romanians:




    How are we to believe that these things, even in the
    formula you have proposed, will be carried through if you were never able to
    explain what the budget source is?




    In response, prime minister Marcel Ciolacu gave
    assurances that the funds will be found for the increases promised:




    There are 4,800,000 pensioners in Romania. 80% earn
    less than 3,000 lei [around 600 euros], 60% less than 2,000 lei [around 400
    euros]. The Romanian state must ensure the resources. I’m firmly convinced that
    we will find the entire sum when we come up with the budget bill.




    The opposition also says that the new law does not
    actually deal with the inequalities in the system and that people with big
    pensions will again stand to gain the most. Cristian Seidler, from the Save
    Romania Union:




    The Save Romania Union wants bigger pensions and a
    fair pensions system, but we are opposed to this legalised lie and the budget
    chaos you are consciously creating.




    The former Liberal labour minister and unaffiliated MP
    Violeta Alexandru also criticised the law, saying it generated chaos and fear,
    although it should have been the clearest bill debated by the ruling coalition
    formed by the Social Democrats and the Liberals. The Social Democrat Marius Budăi,
    himself a former labour minister, said the new law fully complies with the
    principles of fairness, solidarity and respect for labour. (CM)