Radio România Internațional

Tag: pensions

L’impôt sur les régimes spéciaux de retraite est contesté

En sa qualité de
chambre décisionnelle, la Chambre des députés de Bucarest a donné mercredi un
avis favorable à un projet de loi visant la mise en place d’une taxe pour les régimes
spéciaux de retraite. Adopté par le Sénat en 2019, le projet a été soutenu par
tous les groupes parlementaires. C’est une démarche correcte pour la société affirment
les parlementaires, dans le contexte où certains écarts entre les pensions de
retraite civiles et les retraites figurant dans les lois spéciales sont hallucinants.
Le cas le plus médiatisé est celui d’une pension de 15.000 euros, la plus
grande de Roumanie, à laquelle a droit un ancien procureur communiste, qui a été
le commandant d’un pénitencier. Cela, dans le contexte où la pension moyenne en
Roumanie est d’environ 250 euros.

Désormais, selon
un amendement avancé par le Parti social-démocrate (PSD) et l’Union Sauvez la
Roumanie (USR) (d’opposition) et par le Parti National Libéral (PNL) (à la
gouvernance), les retraites inférieures à 2000 lei (410 euros) seront exemptées
d’impôt. Une taxe de 10% concerne les sommes allant de 2000 à 7000 lei (jusqu’à
1450 euros). Enfin un impôt de 85% sera prélevé aux pensions de retraite
dépassant les 7001 lei.

Parmi ceux qui
bénéficient de ces régimes spéciaux de retraite en Roumanie l’on retrouve,
entre autres, les juges et les procureurs, les parlementaires et les maires.
Les retraites de militaires sont elles aussi visées par un régime spécial. Le
projet adopté mercredi n’incluait pas les sénateurs et les députés, car cela
aurait signifié une modification de leur statut. Toutefois, jeudi, le Parlement
est revenu sur sa décision, en votant une modification du Code fiscal qui
prévoit l’imposition progressive des retraites des parlementaires.

En désaccord avec
la majorité, mais en vain, en fin de compte, l’USR a plaidé pour l’introduction
d’un projet de loi portant sur l’abrogation des régimes spéciaux des retraites
des parlementaires, expliquant le fait que leur imposition via le Code fiscal
ne devait pas être soumise au plénum réuni du Parlement. Cela entraînerait son
rejet par la Cour Constitutionnelle (CCR), parce qu’en fait, la même loi a été
votée 2 fois au Parlement – une fois par la Chambre des Députés, en tant que
chambre décisionnelle, et une fois au plénum réuni comme modification du Code
fiscal, explique encore Dan Barna, chef de l’USR. Il accuse : « c’est comme un
film où l’on met de la dynamite à la fondation constitutionnelle de la loi, en
s’assurant que la Cour Constitutionnelle la rejette ».

De l’autre côté
de la barricade, le PSD et le PNL ont expliqué à leur tour qu’il existe
plusieurs décisions de la CCR qui exigent que la modification du statut des parlementaires soit
faite dans la séance commune du Législatif. Les deux partis ont réitéré le fait
que l’impôt sur les régimes spéciaux des retraites rendait justice à la société
et se sont dit surpris par le fait que l’USR s’y est opposé.

Comme on s’y
attendait, la CCR a été saisie à ce sujet par la Haute cour de cassation et de
justice et par l’Avocat du Peuple (équivalent du Défenseur des droits). Selon
la Haute cour, cette loi ne prend pas en compte plusieurs décisions successives
de la CCR, le Conseil supérieur de la magistrature n’a pas été consulté et plusieurs
principes sont ignorés, tels celui d’un impôt fiscal juste et équitable et celui
de l’indépendance des juges.

Notons que le mois
dernier, la CCR avait rejeté un autre acte normatif portant sur l’abrogation
des régimes spéciaux des pensions de retraite, en admettant deux saisines déposées
toujours par la Haute cour de cassation et de justice et par l’Avocat du Peuple.( Trad. Valentina Beleavski)

19 June 2020
Tax on special pensions

A recurrent topic in public debates in Romania, the taxation of the so-called “special pensions, which are not based on prior contributions to social security funds, seems to have been finally settled. On Wednesday, the Chamber of Deputies approved, almost unanimously (307 votes in favour and only one against) the introduction of a tax on the balance between special pension benefits and the pension determined by regular contributions to the public pension fund during employment.

Pensions between roughly 400 and 1,500 euro (some 7,000 lei) will be subject to a 10% tax, as it has been the case so far; however, for amounts in excess of this threshold, the tax will be 85%.

The decision regarding the progressive taxation of special pensions was taken in an accelerated procedure, by all parliamentary parties. The former labour minister, the Social Democratic Deputy Lia Olguţa Vasilescu, promised that the document is in compliance with constitutional provisions:

Lia Olguţa Vasilescu: “We fully complied with the Law on public pensions, but if a magistrate or an MP or whoever receives pension benefits in excess of 7,000 de lei, up to that level the tax will be 10%. Nobody can tell the Constitutional Court that their rights have been infringed on.

The leader of the Liberal group in the Chamber of Deputies, Florin Roman, was just as straightforward:

Florin Roman: “Obviously, there must be lots of judges, lots of prosecutors, lots of police or army chiefs who are very upset about this. But what we are doing here, with this bill, does justice to the military, to police officers, where there were huge gaps between the pensions paid to those who had been in theatres of operations and those paid to high-ranking generals just sitting in an office.

According to data communicated by the Public Pensions Agency, the number of people receiving special pension at the end of last month was around 9,500. Nearly 4,100 of them are covered by the Law regulating the prosecutor and judge professions. One of them is the recipient of the largest pension in Romania, over 19,000 lei. Special pensions are also paid to around 150,000 former employees of the public order and national security systems.

Observers have noted the unusual consensus reached by parliamentary parties in this respect. Somehow, they say, this was bound to happen. On the one hand, because, given the COVID 19 pandemic and the enormous public spending it required, the scheduled 40% increase of regular pensions this autumn is increasingly unlikely. And secondly, because in a few short months Romania has local and parliamentary elections, and no party will refrain from trying to humour voters with measures that people agree with.

(translated by: Ana-Maria Popescu)

18 June 2020
June 17, 2020 UPDATE

Covid-19 The Romanian Government decided to extend the state of alert by another 30 days, against the background of the Covid-19 pandemic. The measure came into force on Wednesday, though several restrictions have also been lifted. Among other things, fitness centres, betting and gambling centres and the shops inside malls have been reopened. Also, religious services are allowed inside churches. According to the authorities, although the trend has been downward, the number of cases of infection with the new coronavirus might grow anytime. Lately, new cases have been reported, raising the total to 22,760 infections. The death toll now stands at 1,451. Of those who tested positive, more than 16,100 recovered. In related news, 85 Romanian nationals working on a farm in Bavaria tested positive for the novel coronavirus. All are asymptomatic and quarantined.

PENSIONS The Chamber of Deputies Wednesday endorsed a bill regulating the taxation of the so-called “special pensions, a controversial topic in Romanian society. With 307 votes in favour and just 1 against, the bill, endorsed by the Senate in 2019 as well, was backed by all parliamentary parties. According to Radio Romania News and Current affairs, the Deputies decided to introduce a tax on the balance between regular pensions, based on contributions to social security funds, and special pensions. Incomes from special pensions in excess of 7,000 lei (little under 1,500 euros) will thus be subject to an 85% tax. Unless it is challenged at the Constitutional Court, the bill will be forwarded to the President for promulgation. The Chamber of Deputies also passed a bill that provides that criminals convicted for manslaughter, rape, aggravated robbery, sexual abuse against children and exploitation of begging can no longer benefit from conditional release.

FLIGHTS The Bucharest Airports National Company organized on Wednesday an event titled ‘Everything will be fine!’, which marks the resumption of flights after the break imposed by the global coronavirus crisis. Specifically, flights have been resumed to and from Austria, Germany and Switzerland, whereas those to and from the Czech Republic, Greece, Portugal and Scandinavian countries were resumed a while ago. A spokesman for the company said investments were not suspended or delayed in April and May, when the companys revenues fell by nearly 98%. At the same time, Wednesdays event was devoted to the anniversary of the first flight by a Romanian plane, designed, built and piloted by Aurel Vlaicu, on June 17, 1910.

FOOTBALL The match pitting Romanias football team against Iceland, in the semi-finals of the European Championship playoffs, postponed twice over the coronavirus pandemic, will be played in Reykjavik on October 8, UEFA announced on Wednesday. Should it win, Romania will take on the winner of the match between Bulgaria and Hungary, on November 12. The goal is to qualify into the European Championship final tournament, rescheduled for the summer of 2021, which will be hosted by the same 12 European cities, including Bucharest. UEFA Nations League matches will also be played this autumn.

(translated by: Ana-Maria Popescu)

17 June 2020
24.05.2020

Coronavius en Roumanie – 9 nouveaux décès liés à la Covid-19 ont été enregistrés ces dernières heures en Roumanie, ce qui porte leur nombre total à 1.179. Le nombre des décès liés au coronavirus a constamment baissé cette semaine et les personnes guéries ont été plus nombreuses que les nouvelles personnes déclarées contaminées. Sur les 18.000 cas confirmés jusqu’ici en Roumanie, environ 11.400 personnes se sont remises de la Covid-19. Une régression progressive a également été constatée pour ce qui est du nombre de personnes en quarantaine. Par contre, le nombre de personnes en isolement à domicile a sensiblement augmenté, après le retour massif des Roumains de l’étranger, une fois relâchées les restrictions. Par ailleurs, la municipalité de Bucarest a lancé une plate-forme en ligne destinée à une campagne gratuite de dépistage du nouveau coronavirus. 11.000 Bucarestois seront testés grâce à cette initiative, en première, des autorités locales. La mairie générale de Bucarest va également démarrer une étude clinique, la semaine prochaine. 10.500 habitants de la capitale, sélectionnés suivant des critères scientifiques, seront invités à se faire tester.

TAROM – A compter de ce mardi, la compagnie aérienne nationale TAROM reprendra les vols vers l’Italie par deux destinations : Rome et Milan. Les courses auront lieu dans des conditions spéciales, dans le respect des normes imposées par les autorités roumaines durant l’état d’alerte. Selon la TAROM, les vols depuis la Roumanie vers l’Italie seront destinés aux ressortissants italiens, aux travailleurs saisonniers ayant des contrats de travail en vigueur et aux personnes travaillant dans le domaine des transports. Depuis l’Italie vers la Roumanie pourront voyager uniquement les ressortissants roumains qui souhaitent rentrer au pays. Un billet aller Bucarest – Rome coutera 208 euros, celui pour Milan – 200 euros.

Rapatriements – 277 ressortissants roumains ont été rapatriés depuis la France et la Grande Bretagne samedi, suite aux démarches communes du ministère des Affaires Etrangères de Bucarest, celui des Transports et de l’Intérieur. Selon la diplomatie roumaine, parmi les 140 Roumains rentrés de France, l’on retrouve des étudiants en Erasmus, des personnes dont les contrats de travail ont été résiliés et des touristes en transit venus des Etats-Unis, ainsi que des médecins résidents qui ont fait leur stage en France. Pour ce qui est des 137 Roumains revenus de Grande Bretagne et de l’Irlande du Nord, il s’agit d’étudiants, de personnes hospitalisées, personnes sans-abri et travailleurs saisonniers. De même, les autorités roumaines ont aidé au rapatriement de 4 citoyens étrangers résidents en Roumanie, soit deux Français, un Canadien et un Britannique. Ces rapatriements ont été faits via deux courses aériennes spéciales effectuées par la compagnie nationale aérienne TAROM entre Bucarest et Paris et Bucarest et Londres. Par le même vol Bucarest – Paris, 76 Français se trouvant en Roumanie ont pu rentrer en France. Samedi encore, 92 ressortissants roumains et ouvriers saisonniers ont été rapatriés par un vol spécial depuis l’Allemagne. Leur transfert en Roumanie a été coordonné par le ministère de l’Intérieur de Bucarest en coopération avec les autorités allemandes en la matière. Le vol opéré par une compagnie privée a visé la route Nürnberg – Frankfort – Cluj Napoca. Samedi, 394 ressortissants roumains et 20 citoyens étrangers, membres de leurs familles, sont rentrés en Roumanie. Ils travaillaient en tant que personnels navigant sur des navires de croisière dans la région de l’Amérique du Nord et des Caraïbes. Leur rapatriement a été coordonné par le ministère des Affaires étrangères via les ambassades de Roumanie à Washington et à La Havane, ainsi que par l’intermédiaire du Consulat général de Roumanie à Miami. Le ministère des Affaires étrangères de Bucarest a également annoncé le rapatriement depuis l’Espagne de 162 ressortissants roumains, par un vol Malaga-Bucarest.

Retraites – En Roumanie les pensions de retraite du système public augmenteront au 1er septembre prochain, mais le pourcentage de la majoration dépendra de l’état de l’économie – a déclaré le premier ministre Ludovic Orban, samedi, dans une interview pour une télévision privée. Il a rappelé que l’économie roumaine a été touchée par la crise sanitaire engendrée par la pandémie de coronavirus et qu’aux termes de la loi, un rapport sur la situation économique et budgétaire du pays sera présenté à la fin du premier semestre de cette année. En faisant référence aux futures élections, le chef du gouvernement a mentionné que le scrutin local pourrait être organisé fin septembre, alors que celui parlementaire – le 6 décembre prochain. Evidemment tout dépend de l’évolution de la pandémie.

Economie – Une réduction sévère de l’activité dans l’économie roumaine est à attendre au 2e trimestre de cette année, notamment de 14,4%, lit-on dans le Programme de convergence 2020 publié par le ministère des Finances et transmis par l’agence de presse roumaine Agerpres. Selon le ministère, à calculer selon la méthodologie européenne du Système européen de comptes économiques, le déficit budgétaire de la Roumanie se situera autour des 6,7% du PIB, soit une croissance d’environ 2,4% par rapport à 2019, sur toile de fond de la majoration des dépenses jusqu’à 39,5% du PIB et des recettes jusqu’à 32,7% du PIB. Les investissements bruts diminueront de 2,6% cette année, dans le contexte où les dépenses visant la consommation privée baisseront de 0,7%, la consommation gouvernementale aura un impact positif de 2,4%, alors que les exportations et les importations de biens et de services connaîtront une dynamique négative.

Météo – Il fait toujours frais pour cette période de l’année en Roumanie et la météo est plutôt instable ce dimanche. Il pleut sur le nord, le centre et l’ouest, alors que des précipitations mixtes sont attendues à plus de 1800 m d’altitude. Les maxima de la journée iront de 12 à 25 degrés. 20 degrés et un ciel plutôt couvert à midi à Bucarest.

24 May 2020
May 6, 2020 UPDATE

COVID-19 In Romania, the number of deaths caused by the novel coronavirus has reached 858. The number of confirmed cases exceeds 14,100. Some 5,800 people have recovered. Among the Romanians living abroad, more than 2,400 are confirmed to have caught the virus, most of them in Italy and Spain, while 96 have died, mostly in the UK. Meanwhile, Romanias Constitutional Court Wednesday ruled that the fines issued during the state of emergency for breaching the restrictions introduced over the COVID-19 pandemic are unconstitutional. The ruling concerns around 300,000 fines, totaling over 100 million euros. Prime minister Ludovic
Orban said he was shocked by the ruling, which, he said, was obviously
political in nature and was an invitation to breaking the law, a call for
anarchy. In
turn, Constitutional Court judges argue that the emergency order that regulated
the fines were lacking in clarity, precision and predictability, and issuing a
fine was left to the discretion of police officers.

ASSISTANCE The Romanian prime minister Ludovic Orban Wednesday attended the departure of a convoy of 20 trucks full of medical equipment as part of aid provided by Romania to the neighbouring Republic of Moldova, to help it fight the Covid-19 epidemic. Last week, the government in Bucharest decided to grant Moldova humanitarian aid worth 16.5 million lei in the form of medical equipment and medicines. Romania has also sent a team of 52 doctors and nurses who will be working in hospitals in Moldova treating patients infected with the novel coronavirus.

PENSIONS Cancelling the so-called special pensions is unconstitutional, Romanias Constitutional Court ruled on Wednesday. The magistrates sustained the case filed by the High Court of Cassation and Justice and the Ombudsman against a bill passed by Parliament in January, which eliminated all special pensions except for those paid to Army and Interior Ministry staff, which are not calculated based on the contributions to pension funds. The ruling was based on procedural arguments, without discussing the contents of the bill.

PANDEMIC Europe must learn its lesson from the corona crisis, and secure its “strategic autonomy in key sectors like medical supply chains, which requires stocks and relocation of production, the EU foreign policy chief Josep Borrell said on Wednesday. He emphasised that “It is not normal that Europe doesn’t produce a single gram of paracetamol, and 80 percent of the antibiotics production of the world is concentrated in China. At present 80% of the active substances used in pharmaceuticals come from third countries, with India and China alone accounting for 60%, according to a 2018 report by the French Senate. Confirmed coronavirus cases passed 3.7 million worldwide, with the death toll nearing 260,000, and 1.25 million people have recovered, according to measurements by ArcGIS and Worldometer. The United States is the worst hit country, with over 2,300 deaths reported in the last 24 hours, taking the death toll to over 71,000, and the highest number of confirmed cases, at over 1.2 million. The UK, with over 29,000 deaths, is now the worst hit country in Europe, followed by Italy, Spain and France. Elsewhere, high schools in Hubei, the Chinese province that was the epicentre of the pandemic, Wednesday reopened for final-year students.

(translated by: Ana-Maria Popescu)

6 May 2020
January 30, 2020

PARLIAMENT The Social Democratic Party, in opposition, has today tabled its first motion of censure against the Liberal Government of Romania. The move was triggered by the Orban Cabinet’s decision to take responsibility for a bill reintroducing the 2-round voting system for the election of mayors, half a year ahead of local elections. The text of the motion entitled ‘The Orban/Liberal Government – the privatisation of Romanias democracy reads that the Government must go not only because attempting to change the voting system right before the election comes against European standards, but also because these changes were operated unilaterally, without parliamentary consultation and debate. According to the Speaker of the Chamber of Deputies and interim leader of the Social Democrats, Marcel Ciolacu, this is the most serious case of abuse of power. For the motion to pass, the Social Democrats need 233 votes. The party has 198 seats in Parliament, and their allies, the Democratic Union of Ethnic Hungarians, another 30. With 5 or 6 votes short, Marcel Ciolacu said the Social Democrats are negotiating with fellow MPs. PM Ludovic Orban said he was unconcerned with the motion, and that he does not believe it has any chances to pass.

PENSIONS The president of Romania Klaus Iohannis has a meeting today with top officials for the Higher Council of Magistrates, at their request. The meeting focuses on the scrapping of special pensions for magistrates, following the vote in Parliament on January 28th. Magistrates have initiated protests against the decision. Initiated by the Liberal Government, the bill passed by Parliament scraps all pensions that are calculated under a special procedure, except for those paid to military, police and intelligence service personnel. The benefits paid to retired artists, athletes and journalists also went untouched.

FLU Ten people died in Romania from seasonal flu so far, according to the National Centre for Infectious Disease Monitoring and Control. The last death was reported in Sibiu (centre), where a 90-year old woman was infected with the AH1N1 flu virus. Several schools in Bucharest and elsewhere in the country were also closed because of flu cases. The Education Ministry announced that full or partial suspension of classes because of the flu affects over 4,000 students, but that this is not the number of cases among children.

CORONAVIRUS The head of the World Health Organisation has called a new meeting today of the committee on the new coronavirus, to decide whether to label the situation as an international public health emergency. Airlines around the world have decided to suspend or restrict flights to continental China, as the virus spread, killing over 170 people so far. The total number of confirmed cases is nearly 8,000. A growing number of countries are evacuating their citizens from Wuhan, where the epidemic first started. A Romanian citizen also requested to be repatriated from the region. Although some experts say the virus is not as dangerous as SARS was, its quick spreading raises concerns, and some of its traits are still unknown.

BREXIT Britain is leaving the EU on Friday night, after 47 years since joining the bloc in 1973. The Brexit deal was endorsed by the European Parliament on Wednesday, and some formalities are finalised in todays EU Council meeting. The transition will take 11 months, during which the EU and the UK will work to define their new partnership. At midnight on January 31, the British colours will be taken off the EU institutions. At a meeting with members of the British business community in Romania, PM Ludovic Orban said Bucharest supports the negotiations for a future close relationship between the Union and the UK.

TENNIS The Romanian tennis player Simona Halep was defeated today by Spains Garbine Muguruza (32 WTA) 7-6, 7-5, in the semi-finals of the Australian Open, the first Grand Slam of the year. Halep fails to play a new final in Melbourne, after the one she lost in 2018 to the Danish Caroline Wozniacki. Despite the defeat, as of February 3rd Simona goes up to the second place in the WTA ranking. Halep will also be closer to the top ranked player, the Australian Ashleigh Barty, who also lost in the Australian Open semis. Muguruza will be playing the final against the American Sofia Kenin (15 WTA).

(translated by: Ana-Maria Popescu)

30 January 2020
Law against special pensions

Barely one month into a year marked by local and parliamentary elections, Romanian politicians are competing in initiatives meant to please the general public. On Tuesday, the Chamber of Deputies in Bucharest held a special session in which they passed a bill scrapping the so-called special pensions, with 247 votes in favour against 21 abstentions.

The clear score however says nothing about the heated debates that preceded the vote. The Liberals, currently in power, and the Social Democrats, who were sent into the opposition at the end of last year, accused each others of being the ones who had introduced such privileges to various professional categories in the first place. The Democratic Union of Ethnic Hungarians in Romania and the Liberal Democrats requested a postponement of the debates, whereas Save Romania Union asked for further restrictions, including a cap on pensions for magistrates.

The final text of the bill does away with the special pensions paid to MPs, to judges and prosecutors, to court clerks and prosecutors office clerks, to certain categories of civil servants, to diplomats and to Constitutional Court members, and to airline staff. All these categories had so far received pensions that were not based on their previous contributions to pension funds, and which were generally seen as unjustified, unfair and ultimately as a slap in the face of the millions of pensioners struggling to make ends meet.

However, the special retirement benefits to be paid to former military, police and intelligence service personnel were left untouched, and so were the benefits paid to former athletes, artists, scientists and to members of associations in the creative sector.

The leader of the Liberal floor group, Florin Roman, said the special pension cuts would cover part of the costs entailed by a planned increase in child allowances and regular pensions. The president of Save Romania Union, Dan Barna, warned that the document contains elements that may be challenged at the Constitutional Court. He suggested instead, although with no success, a number of amendments that kept the special pensions in place for magistrates, but below a specific cap. In turn, the Social Democrats group leader Alfred Simonis, says that in case the court rules the bill unconstitutional, Parliament will operate the required amendments.

The president of the High Court of Cassation and Justice Alina Corbu warned, shortly after the vote in the Chamber of Deputies, that the bill comes against a previous ruling by the Constitutional Court. She says the special pensions for magistrates are part of a set of guarantees underlying the independence and impartiality of the judiciary.

Previously, the Judicial Inspection Division and various magistrate associations had also claimed that scrapping their special pensions would be a “brutal violation of the principles of independence and immovability of judges, as defined by the Constitution of Romania and by ECHR rulings.

(translated by: Ana-Maria Popescu)

29 January 2020
January 25, 2020 UPDATE

PARLIAMENT The 2 chambers of Romanias Parliament will convene on January 28 for a special session focusing on a bill scrapping the so-called special pensions paid to magistrates, which are not based on the principle of previous contributions. The Judicial Inspection Division says the bill tramples on the principles of judge independence and immovability, and comes against provisions in the Constitution and regulations by the European Court for Human Rights. On January 29, Parliament also convenes in a joint session to discuss the bill reintroducing the 2-round voting system in local elections, for which the Government takes responsibility before Parliament. The Orban Cabinet says the bill is intended to strengthen democratic standards at local community level. President Klaus Iohannis had previously requested a special Parliamentary session to this end. The Social Democrats, in opposition, reiterated that jointly with the Democratic Union of Ethnic Hungarians in Romania, they will table a no-confidence motion against the Liberal Government.

HOLOCAUST The Romanian PM Ludovic Orban takes part on Monday in an official ceremony celebrating 75 years since the liberation of the Nazi death camp of Auschwitz-Birkenau, organised by the Polish authorities on the International Holocaust Remembrance Day. According to a news release issued on Saturday by the Romanian Government, officials from several countries, Holocaust survivors and members of Jewish associations will be attending the ceremony, held under the patronage of the president of Poland Andrzej Duda. The Government of Romania, the release also reads, reconfirms its pledge to carry on Holocaust education and research efforts, to commemorate the Holocaust victims and to take responsibility for the countrys history.

CORONAVIRUS China has announced extending the lockdown and introducing several other measures, such as suspending tour services abroad, in order to contain the newly discovered coronavirus, initially identified in Wuhan. In Hubei, a province in central China, bus, underground and ferry services have been suspended, and outbound planes and trains cancelled. The Chinese army has sent medical teams to the outbreak region, as the total number of cases is now over 1,300. Hong Kong has declared the highest state of emergency. The virus has reached Europe as well, with 3 cases confirmed in France. The European Commissioner for Health Stella Kyriakides will have a meeting on Monday with relevant officials from member countries, to discuss ways to respond to the spread of the new virus.

EARTHQUAKE At least 22 people died, more than 1,200 were injured n a major earthquake that hit eastern Turkey on Friday night, Turkish authorities have announced. 2,000 rescuers are searching for survivors in the collapsed buildings. The 6.8 magnitude quake was followed by scores of aftershocks. The earthquake, centred 550 km east of the capital city Ankara, in Elazig province, was also felt in Iran, Syria and Lebanon. Turkey is frequently affected by major tremors. In 1999, 17,000 people died and half a million lost their homes in a 7.6 earthquake in the north-west of the country, while another one hit the eastern province of Van in 2011, killing more than 500.

FILM “Home, Romanian director Radu Ciorniciucs first film, premieres on Sunday in the international documentary competition of the most important American independent film festival, Sundance. “Home is the first Romanian documentary selected into this festivals competition, next to 11 other documentaries from around the world, in the World Cinema Documentary category. The film documents the life of a family who lived for 20 years in the Văcărești Delta, up until the place was declared a protected area and was renamed Văcărești Nature Park, the first urban nature park in Romania. Another Romanian film, Colectiv, by Alexander Nanau, will be screened in the festivals Spotlight section. This is a documentary on the events taking place in the first year after the fire in the Colectiv nightclub in Bucharest, in which 64 young people died.

IMPEACHMENT Donald Trumps lawyers Saturday began to present their opening arguments in Senate, in the impeachment trial. They argued that removing the US president from office would set a very dangerous precedent in an election year. You will find that the President has done absolutely nothing illegal, the White House counsel Pat Cipollone, Trumps lead impeachment lawyer, has said. The Democrats accuse Trump of abusing his powers and obstructing Congress. The President will likely be cleared in the Senate, where the Republicans have a majority, but the impact of the trial on the public opinion remains to be seen.

TENNIS The Romanian player Simona Halep, number 3 in the world, has moved up into the 4th round of the Australian Open, the first Grand Slam of the year, after defeating the Kazakh Iulia Putintseva (38 WTA) 6-1, 6-4, on Saturday in Melbourne. On Sunday Halep is to take on Belgian Elise Mertens (17 WTA), who beat CiCi (Catherine) Bellis (600 WTA) 6-1, 6-7, 6-0 in the 3rd round. Last year in Melbourne Halep lost in the 4th round, and in 2018 she reached the Australian Open final. Also on Saturday Monica Niculescu (Romania) / Misaki Doi (Japan) moved up into the next round of the doubles tournament, having defeated the Japanese Nao Hibino/Makoto Ninomiya 6-2, 7-5. Niculescu and Doi are to play next against Hao-ching Chan and Latisha Chan (Taiwan).

(translated by: Ana-Maria Popescu)

25 January 2020
January 25, 2020

PARLIAMENT The 2 chambers of Romanias Parliament will convene on January 28 for a special session focusing on a bill scrapping the so-called special pensions paid to magistrates, which are not based on the principle of previous contributions. The Judicial Inspection Division says the bill tramples on the principles of judge independence and immovability, and comes against provisions in the Constitution and regulations by the European Court for Human Rights. On January 29, Parliament also convenes in a joint session to discuss the bill reintroducing the 2-round voting system in local elections, for which the Government takes responsibility before Parliament. The Orban Cabinet says the bill is intended to strengthen democratic standards at local community level. President Klaus Iohannis had previously requested a special Parliamentary session to this end. The Social Democrats, in opposition, reiterated that jointly with the Democratic Union of Ethnic Hungarians in Romania, they will table a no-confidence motion against the Liberal Government.

HOLOCAUST The Romanian PM Ludovic Orban takes part on Monday in an official ceremony celebrating 75 years since the liberation of the Nazi death camp of Auschwitz-Birkenau, organised by the Polish authorities on the International Holocaust Remembrance Day. According to a news release issued on Saturday by the Romanian Government, officials from several countries, Holocaust survivors and members of Jewish associations will be attending the ceremony, held under the patronage of the president of Poland Andrzej Duda. The Government of Romania, the release also reads, reconfirms its pledge to carry on Holocaust education and research efforts, to commemorate the Holocaust victims and to take responsibility for the countrys history.

IMMIGRANTS Romanian border police caught 9 citizens of Egypt, Iraq and Somalia attempting to cross the border into Hungary illegally, with the help of 2 Romanian citizens, the Romanian Border Police announced on Saturday. The investigations revealed that the 7 men and 2 women, aged between 21 and 52, had applied for asylum in Romania. They are currently probed into for attempted illegal border crossing, while the Romanian citizens are facing human trafficking charges.

CORONAVIRUS China has today announced extending the lockdown introduced in order to contain the newly discovered coronavirus, initially identified in Wuhan. Five cities in Hubei, a province in central China, have been added to the 13 where all bus, underground and ferry services have been suspended, and all outbound planes and trains cancelled. The Chinese army has sent medical teams to the outbreak region, after the death toll has reached 41, out of a total of over 1,300 cases. The virus has reached Europe as well, with 2 cases confirmed in France. The World Health Organisation has decided not to class the virus as an international emergency.

EARTHQUAKE At least 21 people died, more than 1,000 were injured and several buildings collapsed in a major earthquake that hit eastern Turkey on Friday night, Turkish authorities have announced. The 6.8 magnitude quake was followed by scores of aftershocks. The earthquake, centred 550 km east of the capital city Ankara, in Elazig province, was also felt in Iran, Syria and Lebanon. Turkey is frequently affected by major tremors. In 1999, 17,000 people died and half a million lost their homes in a 7.6 earthquake in the north-west of the country, while another one hit the eastern province of Van in 2011, killing more than 500.

FILM “Home, Romanian director Radu Ciorniciucs first film, premieres on Sunday in the international documentary competition of the most important American independent film festival, Sundance. “Home is the first Romanian documentary selected into this festivals competition, next to 11 other documentaries from around the world, in the World Cinema Documentary category. The film documents the life of a family who lived for 20 years in the Văcărești Delta, up until the place was declared a protected area and was renamed Văcărești Nature Park, the first urban nature park in Romania. Another Romanian film, Colectiv, by Alexander Nanau, will be screened in the festivals Spotlight section. This is a documentary on the events taking place in the first year after the fire in the Colectiv nightclub in Bucharest, in which 64 young people died.

TENNIS The Romanian player Simona Halep, number 3 in the world, has moved up into the 4th round of the Australian Open, the first Grand Slam of the year, after defeating the Kazakh Iulia Putintseva (38 WTA) 6-1, 6-4, on Saturday in Melbourne. On Sunday Halep is to take on Belgian Elise Mertens (17 WTA), who beat CiCi (Catherine) Bellis (600 WTA) 6-1, 6-7, 6-0 in the 3rd round. Last year in Melbourne Halep lost in the 4th round, and in 2018 she reached the Australian Open final. Also on Saturday Monica Niculescu (Romania) / Misaki Doi (Japan) moved up into the next round of the doubles tournament, having defeated the Japanese Nao Hibino/Makoto Ninomiya 6-2, 7-5. Niculescu and Doi are to play next against Hao-ching Chan and Latisha Chan (Taiwan).

(translated by: Ana-Maria Popescu)

25 January 2020
Talks on special pensions

The special pensions benefiting certain categories of state employees mainly from the magistracy and the force structures have become a bone of contention between the main political parties in Romania. Unlike regular pensions, special pensions are not based on the contribution principle, which has sparked and continues to spark heated debates, especially in relation to the often exaggerated amount of some of the special pensions that in certain cases reaches several thousand Euros.

Discussions have also been fueled and intensified by budget constraints, given that the budget deficit has already exceeded the value of 3% accepted by the EU. In this context, the PM and Liberal leader Ludovic Orban has announced that his party has already made the political decision to support a move according to which pensions are calculated based on the contribution principle, except for the public service pensions granted to the military.

Ludovic Orban: “The principle of contribution is the only fair and correct principle according to which a person should receive a pension, namely in accordance with the amount contributed during the employment period, except for the public service pensions granted to the military.”

The PM also added that the Liberals could not agree with the amendment proposed by a Social Democrat MP according to which the elimination of special pensions should also apply to athletes, artists and scientists, as he considers this an excess. It is not yet clear if the magistrates will continue to benefit from special pensions.

The magistrates with the Bucharest Tribunal and the Court of Appeal decided to suspend their activity for an unlimited period of time, staring on Wednesday, as they are discontented with prospect of their special pensions being abrogated. Their example was followed by judges from other courts of appeal across Romania. Judicial inspectors also met in a general assembly to discuss the issue, their conclusion being that the elimination of special pensions is unconstitutional and infringes the principle of the judges’ independence and immovability.

The interim president of the Social Democratic Party Marcel Ciolacu considers that the Liberals’ bill on the elimination of special pensions is unconstitutional and that the Liberals should send it back to the special committees to be altered only after discussions with those affected by this legislative change. He admitted, though that, in some cases, special pensions happen to be higher than the revenues obtained during the employment period, a situation that does not exist anywhere in the world.

In December the MPs with the labor committee passed a favorable report in relation to the bill on eliminating special pensions, except for the public service pensions. The bill will be voted by the plenum of Parliament meeting in an extraordinary session on January 28.

23 January 2020
Social policies in the spotlight

If the economy only grows by 4%, we
can’t have something grow by 40%, the governor of the National Bank of Romania
Mugur Isarescu was saying recently, referring to the planned increase in
pensions as of September 1st. He is not the first to warn that
Romania risks entering an area of turbulence if the budget deficit, which has
already exceeded the 3% accepted by the European Union, deepens as a result of
populist measures.

The increase in pensions has been
laid down in law by the former Social Democratic government without being
justified economically, the current Liberal government says. The latter has in
fact postponed until next summer the doubling of child allowances, another
populist measure taken by the Social Democratic Party, and which was not based
on a calculation of available resources and had not even been budgeted.
However, the Liberal government reiterated that this year’s budget has
allocated funds for the increase in pensions and child allowances, but
emphasised that the decision to increase them will be taken in 6 months’ time,
after an economic assessment. Ludovic Orban:

Our goal is crystal clear, namely
to increase the incomes of all Romanians, including private sector salaries,
pensions and allowances, but underlying this increase must clearly be stable
economic growth, not increases on paper that lead to growing inflation and that
cannot be supported in the long run.

The Social Democrats say that in
less than three months, Orban’s government has cancelled the economic progress
made earlier, and this can be seen by looking at the numbers. The former Social
Democratic minister for labour Lia Olguta Vasilescu:

From a deficit of 2.9% we now have
a deficit of 4%. From a public debt level of 35% we now expect a public debt
level of 39%. From a 3.4% inflation rate in November we now have a 4.2% inflation
rate, while the leu-euro exchange rate has reached an unprecedented level.

A clash between the National Liberal Party and the
Social Democratic Party is expected in Parliament, where the Orban cabinet will
assume collective responsibility for the bill on the return to the two-round system
for the election of mayors. Amendments to the bill may be submitted by the 27th
of January, and the bill itself will be debated in Parliament on the 29th.

So far, the Social Democratic Party
has reacted only with words to the previous cases in which the government has assumed
collective responsibility, including in the case of the budget bill, but it
cannot allow a bill that could damage it significantly in this summer’s local
elections go unchallenged. As a result, the Social Democrats have decided to
initiate a motion of no-confidence and expand it from the issue of the
two-round system for the election of mayors to the overall performance of the
Orban cabinet. Supported by the Democratic Union of Ethnic Hungarians in
Romania, a party that also stands to lose from a possible change of the
election law, the Social Democrats believe in the success of their motion.

21 January 2020
Views on public pensions

Five million pensioners for a total of only 9 million employees, a steady population decline, a chronic shortage of labour fuelled by the migration of youth and, not least, a public pension budget always too small, requiring frequent loans, are elements that make Romania vulnerable in the medium and long run.

After the Social Democratic government left power and the Liberals took over, debates on a large-scale reform of the public pension system came into the spotlight. The minister of labour and social protection Violeta Alexandru confirmed for the public radio station that analyses and assessments are conducted, with respect to a bill enabling employees to opt for a deferral of retirement from the age of 65 at present to 70. Such a delicate topic will be extensively discussed with all players, the labour minister promised:

Violeta Alexandru: “Personally, I have no doubt that this topic requires extensive debate in society, given the insights I am getting from pensioners. Some of them are aware that an active life and extended employment entails benefits in the sense of higher pensions and feel that they need to work longer, whereas others intend to retire even sooner than the law stipulates. This is why a discussion is needed. In any case, such a debate will not work on the assumption of forcing people to stay employed longer, but would try instead to enable people to choose whether to retire sooner or not.

The future of public pension systems is a concern across Europe. According to the labour minister, there are EU member countries where life expectancy figures are different from the ones in Romania, and where active measures are encouraged, including an increase in the retirement age. At the same time however, there are countries where things are not yet clear in this respect.

In Romania, pension benefits will be increased in September by 40%, a raise introduced by the former left-wing government and which makes experts shiver at the prospects of severe budgetary imbalances. The National Bank governor Mugur Isarescu said that as long as the economy grows by 4%, one cannot go and raise pensions by 40%.

Violeta Alexandru: “The money is earmarked for this. It is not so much a matter of impact on the budget, but rather a decision that we have made, namely the decision to comply with the law. We are concerned, however, with how the Social Democratic Party chose to legislate only with electoral purposes in mind, without considering all these signals given by those who monitor the economic development of Romania, and who know that huge, sudden leaps of this kind are not advised.

Meanwhile, the Liberal government announced plans to increase contributions to privately-managed pension funds to 6%. So far, these funds have given good returns, making private pensions the only safe bet in a sea of uncertainties regarding the reliability of state-managed pensions.

(translated by: Ana-Maria Popescu)

9 January 2020
December 30, 2019

GOVERNMENT The Government of Romania convened today for its last meeting this year. At Fridays meeting PM Ludovic Orban instructed his ministers to make sure the bills regulating the activity of ministries have all the required approvals in place, so that they may be endorsed today by the Cabinet. Orban explained that these bills must be approved so that the new Cabinet formula may be operational as of January 1. The number of deputy prime ministers has been reduced from 3 to 1, and the number of ministries has been cut from 24, as previous, to 16.

CORRUPTION Nicolae Robu, the Liberal mayor of Timişoara (the largest city in western Romania), and the former Christian Democratic mayor Gheorghe Ciuhandu, have been sent to court by the National Anti-Corruption Directorate under charges of abuse of office. According to anti-corruption prosecutors, between September 1996 and January 2014, 9 civil servants in the Timişoara City Hall overstepped their powers and illegally sold 207 buildings owned by the mayoralty to individuals who had no right to purchase them. The affair caused the state to lose over 9.5 million euro.

TOURISM Winter tourism is on the rise in most EU member countries, but the biggest increase is reported in Romania, where the number of nights spent in accommodation facilities in the 2018-2019 season was 8.6% higher than in the previous winter, according to data released today by Eurostat. The increase rate reported for Romania is almost 4 times the EU average of 2.6%. The most popular destinations in the EU in the 2018-2019 winter season were Spain, Italy, the UK, Austria, Germany and France.

STRIKE France sees the 25th day of strikes against a planned pension reform, with the next negotiations between the Government and trade unions scheduled on January 7. According to Radio Romanias correspondent in Paris, the Transport Minister promised that there would be enough trains for all passengers who had purchased tickets. Unions are currently divided over the provisions of the pension reform legislation. Meanwhile, ministers carry on talks with the employees with whom they have reached some agreements. Airline personnel have already cancelled a strike planned for January 2 and 3, after they secured derogations regarding their retirement age. Other professional categories, such as the police and gendarmes, have also got some advantages in the negotiations.

CHILDREN The number of attacks on children in conflict areas has nearly tripled over the past decade, UNICEF warns in a news release issued today. The agency documented over 170,000 severe violations of childrens rights in conflict zones since 2010, including killing, maiming, sexual violence, abduction, aid denial, recruitment into armed groups, and attacks on schools and hospitals. UNICEF also says that the number of countries affected by war is the highest in 30 years. According to the organisation, Attacks on children continue unabated as warring parties flout one of the most basic rules of war: the protection of children. In Afghanistan, Mali, Syria or Yemen, conflicts are costing millions of children their health, education, future and lives, UNICEF also said, and called for an end to childrens rights violations and to attacks on civilian infrastructure.

HANDBALL Romanias mens national handball team Sunday lost 24 to 20 to North Macedonia in the final of the 42nd Carpaţi Trophy. The Netherlands defeated Algeria and finished 3rd. The games were part of the training campaign for the first stage of the 2021 Egypt World Championships qualifiers, the first in which 32 teams will take part. Next month in the preliminaries in Italy, Romania will be playing against the host country, Georgia and Kosovo.

(translated by: Ana-Maria Popescu)

30 December 2019
December 29, 2019 UPDATE

VISIT PM Ludovic Orban will be on a working visit to EU and NATO institutions in Brussels between January 7th and 9th, the Government announced on Sunday. The Romanian PM will have meetings with the European Commission chief Ursula von der Leyen, and with the NATO secretary general Jens Stoltenberg. The agenda also includes talks with the president of the European Council Charles Michel and with the president of the European Parliament David Sassoli.

PENSIONS The Romanian public pension system is in imminent danger, given that the number of employed contributors has dropped significantly, and people need to be encouraged to save money in privately-managed pension funds, which ensure more safety, transparency and traceability, the Labour Minister Violeta Alexandru said in an interview to AGERPRES news agency. She also warned that there is a trend across Europe to increase the retirement age, but she did not suggest that the Government plans to take any measures in this respect in the current term in office. The Labour Minister also expressed concern with the budgetary impact of the planned 40% pension raise as of September 2020, as decided by the previous, Social Democratic cabinet dismissed in October, but said that as long as she is the labour minister the law will be complied with.

CUSTOMS The customs offices on the Romanian – Moldovan border will be revamped and upgraded as part of a EU-funded project. Included in the project are the check points in Albiţa, Sculeni and Giurgiuleşti, which are seen as strategic points for the Unions security policy. The programme has a 36-month deadline for implementation, a total budget of 10 million euros, and is designed to enhance institutional and operational efficiency in customs offices by modernising the infrastructure and streamlining the transit of goods and persons. A number of 347 customs workers will also be trained to use special equipment to fight cross-border organised crime.

FINANCIAL Most analysts in CFA Romania Association expect the national currency to depreciate in the next 12 months, to 4.8663 leu for the euro, with an average inflation rate of 3.52%, according to data in the Macroeconomic Confidence Indicator for November. CFA Romania is an organisation of chartered financial analysts certified by the CFA Institute (USA). At present CFA Romania has over 240 members. The Macroeconomic Confidence Indicator was launched by CFA Romania in May 2011 and is designed to measure the financial analysts expectations regarding Romanias economy for the coming 12 months.

BORDER Nearly 900,000 people came into Romania during the Christmas period, and 655,000 left the country, the Romanian Border Police announced on Sunday. The highest numbers were reported on the Hungarian border, in the west of the country. On the other hand, Romanian border police have caught Middle Eastern citizens attempting to illegally cross the border into Hungary. They were coming from Iraq, Iran, Syria and Afghanistan, had applied for asylum in Romania, and were trying to get to Hungary and further west illegally.

UKRAINE The Ukrainian governmental forces and the pro-Russian separatists in east Ukraine Sunday completed a prisoner exchange, thanks to which all people taken captive in the 5-year conflict were able to return home, Reuters reports. The operation took place in the breakaway Donbass region. According to Kiev, a total of 76 Ukrainian prisoners were freed. Since 2014, over 13,000 people have been killed in the conflict in east Ukraine, with occasional clashes still reported in spite of the ceasefire. The prisoner exchange agreement was reached in a summit in Paris this month by the Russian leader Vladimir Putin and Ukraines president Volodimir Zelenskiy. The French-German brokered deal also includes a number of measures such as consolidation of the cease-fire, massive prisoner swaps by the end of December and new troop pull-outs from the 3 zones by the end of March 2020.

(translated by: Ana-Maria Popescu)

29 December 2019
December 29, 2019

VISIT PM Ludovic Orban will be on a working visit to EU and NATO institutions in Brussels between January 7th and 9th, the Government announced today. The Romanian PM will have meetings with the European Commission chief Ursula von der Leyen, and with the NATO secretary general Jens Stoltenberg. The agenda also includes talks with the president of the European Council Charles Michel and with the president of the European Parliament David Sassoli.

PENSIONS The Romanian public pension system is in imminent danger, given that the number of employed contributors has dropped significantly, and people need to be encouraged to save money in privately-managed pension funds, which ensure more safety, transparency and traceability, the Labour Minister Violeta Alexandru said in an interview to AGERPRES news agency. She also warned that there is a trend across Europe to increase the retirement age, but she did not suggest that the Government plans to take any measures in this respect in the current term in office. The Labour Minister also expressed concern with the budgetary impact of the planned 40% pension raise as of September 2020, as decided by the previous, Social Democratic cabinet dismissed in October, but said that as long as she is the labour minister the law will be complied with.

CUSTOMS The customs offices on the Romanian – Moldovan border will be revamped and upgraded as part of a EU-funded project. Included in the project are the check points in Albiţa, Sculeni and Giurgiuleşti, which are seen as strategic points for the Unions security policy. The programme has a 36-month deadline for implementation, a total budget of 10 million euros, and is designed to enhance institutional and operational efficiency in customs offices by modernising the infrastructure and streamlining the transit of goods and persons. A number of 347 customs workers will also be trained to use special equipment to fight cross-border organised crime.

FINANCIAL Most analysts in CFA Romania Association expect the national currency to depreciate in the next 12 months, to 4.8663 leu for the euro, with an average inflation rate of 3.52%, according to data in the Macroeconomic Confidence Indicator for November. CFA Romania is an organisation of chartered financial analysts certified by the CFA Institute (USA). At present CFA Romania has over 240 members. The Macroeconomic Confidence Indicator was launched by CFA Romania in May 2011 and is designed to measure the financial analysts expectations regarding Romanias economy for the coming 12 months.

UKRAINE The Ukrainian governmental forces and the pro-Russian separatists in eastern Ukraine have initiated a prisoner exchange, thanks to which all people taken captive in the conflict 5 years ago should be able to return home, Russian news agencies report. The prisoner exchange agreement was reached in Paris this month by the Russian leader Vladimir Putin and Ukraines president Volodimir Zelenskiy, in the first Ukraine peace summit since 2016. The French-German brokered deal includes a number of measures such as consolidation of the cease-fire, massive prisoner swaps by the end of December, new troop pull-outs from the 3 zones by the end of March 2020. The conflict between the Ukrainian army and pro-Russian separatists—backed by Moscow, according to the West and to Kiev—dates back to 2014 and has left behind over 13,000 dead and nearly 1.5 million displaced. The peace agreements signed in Minsk in 2015 allowed for a substantial decrease in violence. This September Moscow and Kiev also swapped an important number of prisoners.

HANDBALL Romanias mens handball team is playing today against North Macedonia in the Carpati Trophy final. In their first match with French top league Saint Raphaels coach Rareş Fortuneanu as a manager, Romania defeated Netherlands on Saturday, 27-25. In the first match of the competition, North Macedonia outplayed Algeria 25-24. Netherlands and Algeria will face each other for the 3rd place. The games are part of the preparations for the first stage of the 2021 Egypt World Championships qualifiers, in which 32 teams are taking part. Next month, in the preliminary tournament in Italy, Romania will play against the host country, Georgia and Kosovo.

(translated by: Ana-Maria Popescu)

29 December 2019