Radio România Internațional

Tag: price

February 27, 2025 UPDATE

ENERGY The Romanian government passed an emergency order to extend the cap on electricity prices beyond the 31st of March deadline, until 30th June this year, and the one on natural gas prices until the beginning of April next year. The latter move is intended to prevent a rise in natural gas prices when the stocks for next winter are refilled. The energy minister Sebastian Burduja said recently that the government wishes to protect Romanian households and support the competitiveness of Romanian businesses. After the energy market was deregulated in January 2021, Romania was one of the European countries the worst hit by soaring electricity and gas prices.

DEFICIT Romania’s budget deficit reached 0.58% of GDP in January, as against 0.45% in the same month last year, according to data made public by the finance ministry on Thursday. The institution said total revenues amounted to almost RON 47 billion, down 1.4%, amid lower EU funding and some current returns, such as VAT and excise duties. Expenditure, on the other hand, which amounts to RON 58 billion, went up by 4.5% compared to the corresponding period last year. The finance ministry mentions that this year’s state budget is based on an economic growth rate of 2.5% and a budget deficit of 7% of GDP. In 2024, the deficit went up to 8.65% of GDP, from 5.61% in 2023.

FARMERS Romanian farmers stand in solidarity with their counterparts in Czechia, Slovakia, Hungary and Austria, who are staging protests against EU agricultural policies, which they see as unfair, and against massive imports of agricultural products from third countries. The Alliance for Agriculture and Cooperation, which includes a number of Romanian organisations in the field, said in a statement that Romanian farmers are faced with market distortions caused by duty free imports from Ukraine, the negative impact of the EU-Mercosur trade agreement on the competitiveness of European agricultural production, and by a growing bureaucratic burden caused by EU regulations. All of these pose a threat to food security, destroy local supply chains and affect farmers’ incomes, the Alliance says. Its representatives view the protests as a strong signal that the current agricultural policies must be revised in order to ensure a sustainable future for farmers across the European Union.

INVESTIGATION Călin Georgescu, the far-right front-runner in the cancelled presidential elections in Romania, is under criminal investigation for 60 days, after being questioned by the General Prosecutor’s Office on Wednesday. While inquiries are being conducted, he is not allowed to leave the country and must check in with the police regularly. Georgescu is accused of six offences, some in aggravated form, including instigation to actions against the rule of law and presenting false information and giving false statements in respect of his wealth declaration and the funding of his election campaign.

TATE BROTHERS The Romanian body investigating organised crime and terrorism confirmed that the case prosecutor allowed Andrew and Tristan Tate to leave Romania, but emphasised that the brothers are still under criminal investigation and must return to Romania. The two, who are holding dual British-American citizenship, are believed to have left the country on Thursday morning on board a private plane, heading for Florida. They were first arrested three years ago and are charged with rape, kidnapping and money laundering. Last week, the Financial Times wrote that the current administration in Washington is putting pressure on Romania to cancel the restrictions against the Tate brothers, which the Romanian authorities have denied.

TARIFFS The tariffs the US could introduce on trade with the European Union would have less impact on Romania, as the country’s main trade partners are EU member states, said the National Bank chief economist Valentin Lazea. He added that 72% of Romania’s foreign trade is with EU states and mentioned the example of tariffs applied in the past on steel and aluminium, which did not affect Romania much, given that exports of these metals to the US are negligible. Lazea warned however that there will be an inflationary effect of the global increase in tariffs, which will push prices up. The US President Donald Trump announced on Wednesday, in the first meeting of his cabinet at the White House, that he will soon levy 25% customs duties on European products imported into the United States. (AMP)

27 February 2025
Romania has higher inflation rate

In November 2022, Romania’s inflation rate stood at
16.8% exceeding the forecast announced by the Central Bank governor, Mugur
Isarescu, of 16.3%. That has been the highest inflation rate in the past two
decades. In 2002, Romania reported an annual inflation rate of 22.5% and from
2005 until last year the country had only single-digit inflation rates.

This alarming pace seemed to be
slightly going down at the beginning of the year, but went up again last month
as compared to January from 15.07 to 15.52% against the latest price hikes in food
products and services. Figures released on Monday by the National Institute for
Statistics prove that the prices of these products and services saw the highest
increase in the first months of the year, but experts say this shouldn’t alter
the forecast by the Central Bank (BNR) according to which the inflation rate will
again return to single digits towards the end of the year.

Food prices saw the most significant
increase in February by roughly 3.4%, while services rose by 2.5%. At the same
time, prices in non-food products slightly dropped by 0.5% on an average.

Significant price hikes were registered last month in
the category of fresh and canned vegetables, up by 6.35% followed by the fresh
fruits with roughly 4.9% and services for making and mending clothes and
footwear over 3.5%.

Prices in fresh fish, cheese, personal hygiene and
care products as well as other non-food products have grown between 2% and 3%.

Prices in air transport services went down by more
than 12%, whereas prices for cooking oil, electricity and heat by 1% on an
average. According to the latest forecasts, prices were supposed to continue
their downward trend, but experts said this process isn’t a linear one. The
same tendency has been noticed in other EU countries as well where the
inflation rate in February proved to be higher than a month before.

According to experts, this process of keeping
inflation at bay is likely to continue but will have its monthly ups and downs.
In a Radio Romania interview, the financial expert and Central Bank advisor,
Adrian Vasilescu, has confirmed this theory.

In the meantime, the INS data show that Romania’s
trade deficit in January stood at 2.338 billion euros, 203.6 million higher
than in January 2022. The rise was partly caused by the growing inflation,
which raised the imports value, but the main cause is the fact that the
domestic output cannot cover the demand, not even in sectors with tradition,
such as the agro-food industry, the chemical or the car-making sectors. Experts
say that the authorities should step in and take action in order to prevent the
situation from worsening.

(bill)

14 March 2023
February 5, 2023 UPDATE

Cairo – The Romanian Prime Minister, Nicolae Ciucă, met, on Sunday, in Cairo, with the President of Egypt, Abdel Fattah el-Sisi. The talks focused on topics such as bilateral cooperation in the economic and social fields, as well as the impact of the Russian military aggression on Ukraine. The Egyptian president thanked, on this occasion, for the support provided by Romania for the evacuation from Ukraine of the more than one thousand repatriated Egyptian students last year, as well as for facilitating the export of Ukrainian grains to Egypt. Nicolae Ciucă highlighted the need to support Romanian farmers through access to the production of fertilizers from Egypt necessary for agricultural crops. At the same time, the two agreed to increase Romanian farmers grain exports to the Egyptian market. On Sunday, the Romanian Prime Minister also participated in the Egypt-Romania Business Forum, as well as in the signing ceremony of several bilateral documents. On Saturday, Nicolae Ciucă discussed with his Egyptian counterpart, Mostafa Madbouly, about the intensification of bilateral relations, both at the political, commercial and economic levels. He also had a meeting with the representatives of the Romanian community in Egypt and with Egyptian citizens who studied in Romania.

EU – Starting on February 5, the European Union has completely suspended imports of Russian refined oil products, such as gasoline, diesel and fuel oil, in the context of the war in Ukraine. Until now, the embargo targeted crude oil. Also as of February 5, another European measure came into force, taken together with the allied states, the G7 group of highly industrialized states as well as Australia. The measure is about limiting the price of Russian oil products transported by sea. European limits provide a maximum of 100 dollars per barrel for expensive products, such as diesel and gasoline, and a maximum of 45 dollars per barrel for less refined ones, such as fuel oil. These measures come after a previous cap at 60 dollars per barrel of Russian crude oil imposed on December 5. Beyond this ceiling, Western companies were prohibited from providing maritime services to Russia, given that the G7 countries provide for approximately 90% of the global transport.

Gas – In Romania, the natural gas stock in deposits is currently 1.880 billion cubic meters, i.e. 61% of the their capacity. According to Depogaz, the main underground natural gas storage operator in Romania, the country has no problem in securing natural gas for the cold season, this stock being by 780 million cubic meters higher than last year. The latest statistics show that Romania has the fastest emptying rate of stored gas deposits in the EU.

Weather – In Romania, the National Meteorological Administration has issued a cold weather alert valid in all regions, until Friday, as well as Yellow Code Alerts for snow and blizzard, for areas in 27 counties, valid until Monday evening. According to meteorologists, in the Southern and Eastern Carpathians, it will snow locally and temporarily, and the wind speed will increase at 60 – 70 km/h, and at altitudes above 1,700 m, the gusts will exceed 80 – 90 km /h. Until Friday, the weather will be cold in all regions, with mostly negative highs. It will be frosty at night and in the morning in the intra-Carpathian regions, as well as on smaller areas and in the rest of the territory. The minimum temperatures will range between -14 and -4 degrees, and between -20 and -18 degrees C in isolated areas.

Tennis – The Romanian tennis player Gabriela Ruse reached the last qualifications round of the tennis tournament in Abu Dhabi. That happened following the abandonment of the Czech Tereza Martincova, at the score of 6-3, 3-0 for Gabriela Ruse. The Romanian Sorana Cîrstea entered the main singles draw directly and will play in the first round against the Ukrainian Marta Kostiuk. The winner will face the Swiss Belinda Bencic, the second seed, in the round of 16. Monica Niculescu will play in the doubles, where she pairs with the Japanese Miyu Kato, the opponents in the first round being Ulrikke Eikeri (Norway) and Alexa Guarachi (Chile). (LS)

5 February 2023
December 19, 2022

SCHENGEN The president of the European Parliament Roberta Metsola is
on a 2-day working visit to Bucharest as of today, with a support message for Romania’s
Schengen accession efforts. Today, Roberta Metsola is scheduled to have
meetings with president Klaus Iohannis, PM Nicolae Ciucă and the speakers of
the Chamber of Deputies and Senate, Marcel Ciolacu and Alina Gorghiu, and will
address a joint Parliament meeting. On Tuesday, Roberta Metsola will have talks
with young Romanians as part of an event called ‘Together we are Europe,’
organised by the European Parliament Office in Romania in a partnership with
the Law School of the University of Bucharest. According to the institution, during
their dialogue with Metsola the young participants will be able to find out
about the benefits of the European parliamentary democracy, ways to influence
European policies, why it is important for them to get involved in protecting
European democracy and how the decisions and policies of the European
Parliament impact Europeans’ day-to-day lives.

VISIT The Romanian foreign minister, Bogdan Aurescu, is on a 2-day
official visit to Chişinău, at the invitation of Moldova’s deputy PM and
minister for foreign affairs and European integration, Nicu Popescu. For 2 days,
Bogdan Aurescu will have consultations with his counterpart, will be received
by the president of the R. of Moldova Maia Sandu, and will have talks with PM Natalia
Gavriliţa and with the parliament speaker Igor Grosu. They will discuss aspects
related to countering the war of aggression waged by the Russian Federation
against Ukraine, as well as topics related to cooperation in the field of
energy security, stepping up sectoral cooperation, economic cooperation and the
assistance measures taken by Romania to the benefit of the R. of Moldova. A
major topic for discussion will be Moldova’s progress in its EU accession
efforts, after the country was granted the accession candidate status in June
2022, and Romania’s concrete support in this respect.

ENERGY EU energy ministers convene today in Brussels in an attempt
to reach an agreement on a natural gas price cap, in the context of the rise in
energy prices triggered by the war in Ukraine. Last week, they failed to reach
consensus on this topic. The participants will also try to come up with a
general approach on a proposed reduction of methane emissions in the energy
sector. The draft regulation requires oil, natural gas and coal operators to
measure, report and check methane emissions. Moreover, the EU energy ministers
will try to reach an agreement with respect to the proposed REPowerEU directive,
which modifies the EU legislation on renewable energy, energy efficiency and
the energy performance of buildings. The proposal aims to step up the use of
renewable energy. On the other hand, the Czech presidency of the EU Council
will present a report on the progress made with respect to the natural gas
package, which includes a proposed directive and a proposed regulation on
single market norms for gas from renewable sources, natural gas and hydrogen.

COMMEMORATION In Timişoara, western
Romania, events carry on marking 33 years since the anti-communist revolution
of December 1989. The events highlight the courage and sacrifice of the
Revolution heroes, and the need for the younger generations to carry on the
spirit of freedom. After the marches, religious services, exhibitions, film
screenings and roundtables organised in the previous days, today a pilgrimage
will be held at the monuments making up the Revolution Memorial. Short reels made
by young artists will also be screened in schools, and the traditional Rockford
revolution festival is also scheduled for today. Also today, the members of
the bereaved families are leaving for Bucharest to retrace the route on which
the bodies of 43 revolution participants from Timisoara were sent for
incineration. The events devoted to the 33 years since the Revolution will
culminate on Tuesday, December 20, Victory Day, when Timişoara was declared the
first city free of communism in Romania. The uprising against the communist
regime in Romania began in Timişoara on December 16, 1989 and spread to
Bucharest and other cities in the country. Over 1,000 people died and some
3,000 were wounded in the clashes that took place on that occasion.

FOOTBALL Argentina is the world’s new football champion. In the
final of the Qatar tournament on Sunday, Argentina defeated the previous
champions, France, after penalty shootouts. This is the 3rd world
championship won by the South Americans, after the title in 1978 and the one in
1986. The next world championship, held in 2026, will be hosted jointly by the
US, Canada and Mexico. (AMP)

19 December 2022
December 11, 2022

Budget — The state budget and social insurance draft laws will be debated in Romania’s Parliament on Monday. The final vote is to be given in the plenary sessions of the two chambers on Thursday. The state budget for next year is based on an economic growth of 2.8% and a revenue increase of 14%. The budget deficit is forecast to increase by almost 4.4% of the GDP, and the main novelty is the increase to 2.5% of the Defense budget. The state budget for next year will allow, according to the authorities, an increase in pensions by 12.5% and a minimum wage of 3,000 lei (about 600 Euros). According to the document, the Ministries of Defense, Development, Agriculture, Transport and Education will receive more funds. The fields of Energy, Justice and Health will receive less money. The opposition criticizes the Governments budget bill and announces that it will submit amendments in Parliament.

Meeting — The Romanian Agriculture Minister, Petre Daea, is participating, on Sunday and Monday, in the meeting of the Agriculture and Fisheries Council (AGRIFISH) in Brussels. According to an agriculture ministry communiqué, the meetings agenda includes important aspects for the Romanian agricultural sector, such as the market situation, the strategic plans of the CAP, animal welfare and fishing opportunities for next year. The ministers are discussing the progress of the new EU forest strategy for 2030 and the actions taken at EU and national level. At the same time, the ministers will debate the current situation of the market in the member states, the main issues related to the energy and fertilizer crisis, the high prices of production factors, as well as the pressure that the crisis exerts on both farmers and consumers. Also, the European officials will tackle the strategic plans included in the Common Agricultural Policy (CAP) in the context of the current situation in Ukraine and the new challenges facing both the agriculture and fisheries sectors.

Gaudeamus — The 29th edition of the Gaudeamus book fair, organized by Radio Romania at the Romexpo exhibition center in Bucharest, comes to an end on Sunday. Starting on December 7, approximately 200 participants offered the public a varied range of editorial products, on different supports, suitable for all ages and fields of interest, music and educational games. For the first time, two spaces dedicated to interactive activities for the youngest visitors were set up within the fair. All stands were also found in virtual format on the gaudeamus.ro website. The honorary president of this years edition was the writer Ana Blandiana.

Agreement — The EU member states reached an agreement, on Saturday, regarding the unlocking of a financial assistance package worth 18 billion Euros, which will be granted to Ukraine in 2023. ‘Ukraine can count on the EU. We will continue to support Ukraine also from a financial point of view, as long as it is necessary’ shows a press release from the European Council. The proposal was adopted by the Council and will be presented to the European Parliament to be adopted next week. On Tuesday, Hungary vetoed the package proposed by the European Commission.

Negotiations — The EU countries participated in emergency negotiations on Saturday in an attempt to reach an agreement on capping the price of natural gas at the December 13 meeting of European Energy Ministers, but they remain divided over the plan. 12 member states, including Romania, Belgium, Italy, Poland and Slovenia, are pushing for a significantly lower cap on the price of natural gas across the Union. The latest proposal, according to Reuters, provides for a cap if prices exceed 220 Euros/Megawatt hour for five days, at the Natural Gas futures quotes of the Amsterdam-based TTF Hub (where reference prices are set in Europe) to be delivered the next month, and when the prices are higher by 35 Euros compared to the world average price for liquefied natural gas. It is a lower level than the limit of 275 Euros/Megawatt hour proposed by the European Commission, but the 12 EU member states say it is still not low enough.

Football – The French team, the defending world champions, qualified for the semi-finals of the World Cup in Qatar on Saturday, after defeating England 2-1 in the last quarter-final. Also on Saturday, the Moroccan national team became the first African team to qualify for the semi-finals, after defeating the Portuguese team, score 1-0. There are only four matches left in the final tournament in Qatar, the semi-finals, third-place playoff and the final. On Tuesday, Argentina will meet Croatia, and on Wednesday Morocco will be up against France. The third-place playoff will take place on December 17, and the final on December 18. (LS)

11 December 2022
Quarterly inflation report

In May this year the National Bank of Romania forecast
a 12.5% inflation rate for the end of this year and 6.7% for the end of next
year. Three months later, estimates were pointing to higher figures, i.e. 13.9%
for 2022 and 7.5% for end 2023.

These days, the central bank came up with new figures,
and adjusted its inflation forecast to 16.3% for this year and 11.2% for next
year, with the rate expected to go down to around 4% in September 2024.

Price increases have slowed down in the last few
months, central bank experts say, but significant differences compared to last
year will remain. According to the National Bank’s quarterly inflation report,
made public on Monday, a decrease in inflation will depend on a number of variables,
particularly the consequences of the war in Ukraine and the developments
related to raw materials, energy and food prices.

Governor Mugur Isărescu: As far as the war in Ukraine
is concerned, our position is, so to say, slightly positive, although not fully
optimistic. The effects of the war will be gradually mitigated, we do not
expect major declines. As for raw materials, data indicate prices are beginning
to settle. Bottlenecks in global value-added chains are likely to dwindle,
there are no indications of a resurgence of COVID infections, and the
macroeconomic policy mix is positive. So far we’ve worked well with the
government and the normalisation of the monetary policy continues.

Mugur Isărescu also said that key interest rate
increases in Romania have been comparable to the measures taken by other
central banks in the region. Interest rates are not very high in Romania
compared to other countries, and the national currency is one of the most
stable in the region, the governor explained, and added that, had the currency
depreciation put further pressure on the inflation, the situation would have
been a lot more difficult, as we see in Hungary, for example.

In Romania, interest rates have been raised gradually,
and the central bank sought to allow time for those who had taken out loans in
the national currency to get used to the new levels and with the fact that the
age of negative or very small interest rates is over, Mugur Isărescu
pointed out. The central bank official also voiced confidence that next year Romania’s
economy will only see slower growth, rather than technical recession, i.e. two
consecutive quarters of negative GDP growth, but that this mainly depends on
the government’s ability to attract EU funding. (AMP)

15 November 2022
Prices surge in Romania

For several months now, prices have been on an upward trend in Romania, worsening living standards especially for low-income citizens, who struggle to cope with the surges.

On the other hand, according to data made public by the European Statistics Office (Eurostat), Romania is one of the countries with the highest increases in agricultural yield, 25%, alongside Bulgaria and Czechia. The EUs agricultural yield went up 8% in 2021 compared to the previous year. According to Eurostat, Romania is one of the 7 member states with substantial contributions to the blocs agricultural yield.

And still, foodstuff prices have grown significantly this past year. Of these, sugar is one of the products with the highest price increase (62%). According to the National Statistics Institute (INS), sunflower oil prices also rose by nearly 44%, and potatoes are now sold for over 40% more.

In the non-foods category, the highest rises are reported for natural gas (40%), electricity (27%), heating (23%) and fuel (20%). Telecoms services are 0.76% less expensive, which is the only price decrease reported in October this year since October 2021.

Meanwhile, INS data indicate that the annual inflation rate was slightly lower in October than in the previous month, reaching 15.32%. The National Bank of Romania expects inflation to go up moderately towards the end of the year, and then to gradually go down to one-figure levels in the first half of 2024.

The central bank says the prospective reversal of the annual inflation trend after the plateau in the last quarter of 2022 relies on a dampening of global shocks in terms of supply, including the implementation of energy price-capping mechanisms until August 2023. According to the National Bank, the escalation of the war in Ukraine and the ever stricter sanctions against Russia nonetheless generate uncertainties and significant risks to economic operations, and implicitly to the medium-term inflation trends.

The European Commission also expects Romania to reach an inflation peak at the end of this year, followed by a decrease below 10% in 2024. It is one of the reasons why, the Commission says, the countrys economic growth rate will slow down to 1.8% next year and to 2.2% in 2 years time.

In the second quarter of 2022 and subsequently, the consequences of the Russian invasion of Ukraine, the high inflation rate, the tightened monetary policy and close control on cash flows is expected to have significantly slowed down the countrys economic growth. Nonetheless, the European Commission has upgraded its economic growth estimates, from 3.9% this summer to 5.8% in its autumn forecast made public last week. (AMP)

14 November 2022
September 20, 2022

LONDON The custodian of the Romanian crown,
Margareta, and Prince Radu took part in a family reunion at the Windsor Castle
upon the invitation of King Charles III after the funeral of Queen Elizabeth II.
Over 100 heads of state and government and members of the royal families from
around the world attended the ceremonies in London while hundreds of thousands
lined the streets to say farewell to the revered monarch. The event, which
brought together the largest number of world leaders ever, was also attended by
US president Joe Biden and also by the head of the Romanian state, Klaus
Iohannis.

VISIT Romanian president Klaus Iohannis
is today and tomorrow heading the Romanian delegation attending the 77th
session of the UN General Assembly. The meeting’s agenda includes several
topical issues, such as peace and security, sustainable development, social
inclusion, cybersecurity, human rights, biodiversity, water management and
global challenges. The Romanian president is expected to highlight the need for
joint solutions at global level to issues like energy security, climate changes
and access to education. Iohannis will today be attending a global summit on
food security, where he will be mentioning Romania’s efforts to ensure the
transit of Ukrainian grain and its commitment to avoiding a food crisis. In a
video message on Monday at Transforming Education summit in New York, Iohannis
spoke about Romania’s commitment to upgrading its education system and
protecting its citizens from the challenges of the economic environment.

DROUGHT 600 thousand hectares of Romania’s farmland have been
affected by drought, the Ministry of Agriculture has today announced. The
country’s autumn crops of barley, rye and oat are presently bearing the brunt
of the extended drought. Some of the most affected spring crops are maize,
sun-flower, soy and fodder plants.

LAW The government emergency ordinance
regulating energy prices has been submitted to the specialized Senate
committees. The document could get amended by Parliament, after both ruling and opposition parties have forwarded amendments. One such amendment
includes among the categories benefitting from capped prices, the religious
cults, the pharmaceutics industry and public transportation. Household owners
using special medical treatment devices could also benefit from capped prices.
In another development, the ruling coalition seems to have reached an agreement
over extending the 10 cents fuel subsidies with another three months.

ECONOMY Roughly half of the Romanians (47%) have reduced spending
this year to cope with the latest price hikes, whereas a quarter are saving
money for education and professional training, an Erste Group poll entitled ‘Money
Matters’ shows. According to the same sources, the Romanians have adjusted
their financial behaviour against the rising inflation and the latest price
hikes.

(bill)

20 September 2022
Government-generated compensations for the fuel price

The
price of fuels has constantly increased as of late, in Romania. That sparked discontent among car drivers, who staged protests in petrol stations.
Following a series of talks initiated in the government coalition, Prime
Minister Ciuca on Thursday announced the pump fuel price would be compensated.
Therefore, starting July 1st, for three months, the price per liter of
fuel would be cheaper by 50 bani. The deduction applies for everybody, private
entities or haulers. Also, the deduction will be separately printed on the cash
receipt.

Prime Minister Nicolae Ciuca:

We have identified, jointly with the specialists, a
fixed-sum 50-bani compensation solution, to be implemented straight at the gas
pump. The mechanism by means of which we ensure the stability of the price is
to be implemented for a three-month period. The compensation will be printed
separately on each cash receipt issued by the petrol stations.

The
compensation will be endorsed by the government through an official document
next week. According to Prime Minister Ciuca, the Government will come up with
a mechanism supported by 2 billion lei worth of funding. 1 billion will be
earmarked from the state budget, while the other billion will be provided by
the companies in the oil sector. Prime Minister Ciuca went on to say that, when
the three-month period ends, the opportunity will be examined, to adopt a new
set of measures. The Prime Minister also stated the Government had a useful
instrument at its fingertips, namely the government ordinance issued to stave
off speculative effects. Prime Minister Ciuca was adamant in stating that through
the set of measures a high-level consumer protection would be provided, against
untenable price hikes.

The
other major party in the governing coalition, the Social-Democratic Party, has
nonetheless favored price capping as the best solution. The Social Democrats have
said they complied with the Prime Minister’s decision. However, they said,
should the prices increase again, they would will reiterate, in the governing coalition,
their proposal for a set top-up price level or for the reduction of the trade
markup. The Save Romania Union, in opposition, criticized the Government’s decision.
Instead, the Save Romania Union has pleaded for a consistent VAT drop for fuels,
from 19 to 5%.

In
turn, President Klaus Iohannis stated the reduction of the fuel excise duty could
not be implemented. President Iohannis went on to say direct capping or price
subsidizing were not possible. President Klaus Iohannis also stated Prime Minister
Ciuca assured him the sum required for the 50-bani compensation could be provided
by the state budget. Klaus Iohannis also
said that, ostensibly, the governments had the capacity to reduce the excise
duty, yet that was not feasible, actually, because of the European legislation.
President Iohannis went on to say it was easy to change the excise duty whenever an increase
was implied, but the reduction of the excise duty, that was not possible below
a certain level.

(EN)

24 June 2022
March 10, 2022

FUEL PRICES
PM Nicolae Ciucă announced thorough
inspections in all oil companies in Romania, after panic last night caused
unprecedented queuing in petrol stations. The PM warned that the required
measures will be taken to curb any illegal, abusive and economically unjustified
practices. Mr. Ciucǎ made these statements after an emergency meeting with the
ministers of energy and economy and the heads of the Competition Council, the
Consumer Protection Authority and the fiscal authority. The institutions have
already initiated inspections following an unjustified fuel price rise. The energy
minister Virgil Popescu also posted a message on social media, stating the
sanctions against those who break the law will be drastic.

REFUGEES PM Nicolae Ciucă is
having talks today with the EU commissioner for crisis management Janez
Lenarčič, who took part on Wednesday in the opening of the European hub for
humanitarian aid for Ukraine, in Suceava (northern Romania). The EU official
said he was encouraged by the solidarity shown by the EU and its member states,
including Romania. A new call-centre has also been opened today in Romania for
the Ukrainian refugees, with Ukrainian-speaking personnel, among others. Some
320,000 Ukrainian nationals have entered Romania over the past 2 weeks, and
nearly 235,000 of them have already left the country.

COVID-19 Roughly 4,200 new SARS-CoV-2 cases and 62
related deaths were reported for the past 24 hours in Romania, the Strategic
Communication Group announced on Wednesday. After almost 2 years in a state of
alert, Romania lifted all COVID-19 related restrictions on March 9th.
The authorities announced that those citizens whose ID expired over the past 2
years have to renew their documents within 3 months. As many as 387,000 people
must get new identity documents by June 7th.

SUMMIT EU leaders convene today and tomorrow in Versailles, France, for a
summit focusing on Europe’s energy independence, on strengthening the bloc’s defence
and on the EU accession request signed recently by Ukraine. A new plan will be
discussed, most likely to be funded through a new joint loan, in order to
address the consequences of the Russian invasion in Ukraine. As regards the
energy crisis, the European Commission has recently presented the RePowerEU initiative,
designed to reduce Europe’s dependence on Russian gas, which accounts for over 40%
of the Union’s natural gas consumption. As for Ukraine, a strengthened
partnership is being considered, by tightening Kyiv’s ties with the European
single market and connecting Ukraine with the European energy network.

PRESIDENCY Romania will be represented in the Versailles summit
by president Klaus Iohannis. Ahead of the meeting, he took part
on Monday in a video call with the president of the European Council Charles Michel, and the prime-ministers of the
Netherlands, Greece, Croatia and Estonia. President Iohannis emphasised the
importance of firmly maintaining the unity and coordination within the EU and between
the Union and the US, NATO and other strategic partners, in responding to
Russia’s aggression against Ukraine. Mr.
Iohannis also presented the measures taken by Romania to support Ukraine, including
the set-up of a hub collecting and coordinating international aid to Ukraine
and Moldova. The president of Romania also emphasised Romania’s support for the
EU accession requests signed by Ukraine, the Republic of Moldova and Georgia.

UKRAINE Today’s negotiations
between the Russian and Ukrainian foreign ministers, Sergey Lavrov and Dmytro
Kuleba, mediated by Turkey, failed to lead to any progress towards a ceasefire.
Promises were made to carry on humanitarian efforts to evacuate civilians,
without any firm commitment on Russia’s part in this respect. Kuleba added that
a decision was made to carry on talks in this format. In turn, Lavrov continued
to accuse Ukraine of seeking to use biological and chemical weapons and of
being manipulated by the West. Meanwhile, air raid sirens sounded once again
this morning in the Ukrainian capital Kyiv, as the 3rd week of war
began. According to the Ukrainian army, Russian forces are advancing in an
attempt to surround the city, and have carried on attacks in other parts of the
country as well. President Volodymyr Zelensky has accused Russia of war crimes.
Moscow agreed to a 12-hour ceasefire to enable civilians to leave 6 of the most
affected areas, but the Ukrainian authorities say steady Russian bombing
prevented some locals from leaving. On the other hand, Ukraine claims it
killed, wounded or captured over 12,000 Russian soldiers, and destroyed over 330
tanks, over 1,110 armoured vehicles and some 130 aircraft. Russia claims to
have destroyed nearly 3,000 military infrastructure elements in Ukraine. (A.M.P.)

10 March 2022
Government aid to help cover electricity bills

The price of electricity and natural gas in Romania followed the upward trend in Europe, and the government is currently looking for solutions to extend the aid schemes in the energy sector.

Last week 2 such schemes were approved, targeting energy producers and the local administration or inter-community development associations that put up or upgrade energy facilities.

A memorandum was also endorsed, extending the aid schemes for large energy consumers. According to the government spokesman Dan Cărbunaru, over EUR 82 million will be channelled to those investors that tap into renewable energy sources. The energy ministry was tasked to hold consultations with the European Commission regarding the extension of the state aid programme to support large energy consumers.

Dan Cărbunaru: “Everybody is affected, not only the smaller households, but big consumers as well. Obviously, we are talking about large amounts of money and the procedure requires the approval of the European Commission. The government was tasked with initiating talks as soon as possible, so that major consumers in Romania may continue to benefit from state aid in due time.”

Dan Cărbunaru also says that these measures are intended to preserve both the competitiveness of Romanian companies compared to other competitors in the EU and outside it, and to keep the around 200,000 jobs in these sectors.

Dan Cărbunaru: “These state aid schemes were implemented in Romania in 2019-2021. They were effective, given that these companies in energy-intensive sectors contribute an annual 6% of Romanias GDP. An important element to take into account are the jobs that a company benefitting from such state aid has to keep in place.”

In the forthcoming period, the government is to finalise new support measures for household consumers to cope with the surge in energy prices. Apart from the measures taken so far, the government plans to continue to shield the economy and households from the effects of the energy crisis after April 1 as well.

Dan Cărbunaru: “These support packages being prepared by the government are almost ready. I can confirm that the PM requested all stakeholders to find a solution which is as quick, as comprehensive and as easy to implement and to explain as possible.”

Within 2 weeks the government will have ready a set of measures concerning electricity bills, the finance minister Adrian Câciu said in his turn. (A.M.P.)

14 February 2022
Energy prices, a postponed solution

Record electricity prices continue to be reported in Europe, and both the domestic and industrial consumers fear that, in the coming winter, they might have to pay huge bills — if they can afford. That is why the Community institutions are trying to reach a common solution for all the EU member states, which is not at all simple, as always happens when extremely sensitive issues are at stake. Gathered in Slovenia for an informal Council meeting, the European leaders have failed to agree on a response to the accelerating price rise. France and Spain, for instance, are calling for an in-depth reform, Romania wants an urgent solution, while other states are calling for patience.

Attending the meeting, the Romanian President Klaus Iohannis said: ʺWe had a first discussion about energy prices, especially electricity prices, and we agreed to speed up all efforts. The Commission has promised, and we expect it to respect its promise, to come with an approach, with solutions in one week at the most, because we cannot go through the winter season with rising prices.”

The energy price hike was also tackled in the European Parliament, where the representatives of the European Commission and the European Council were heard. Energy Commissioner Kadri Simson of Estonia provided the solution that by 2030, in Europe, 65% of electricity production should come from renewable sources. But what will people do until then? MEPs have accused that the measures to eliminate fossil fuels did not take into account the fact that there are insufficient renewable sources, that nuclear energy has been marginalized and that Europe is blackmailed by Russia in relation to energy. Almost all political groups in the EP have called for a single European energy market and the purchase of gas through a common scheme. There was also the opinion that prices should be capped.

MEPs also called for harsh measures against energy suppliers’ speculation. In Romania, the huge rise in electricity and gas prices coincided with the complete liberalization, from July 1, of the energy market and many companies took advantage of the situation. Heard in the parliamentary commission that investigates the causes of very high prices, the president of the National Authority for Consumer Protection, Claudiu Dolot, said that, in September, more than 30 companies broke the law, registering the worst irregularities regarding non-compliance with contractual clauses. (LS)

7 October 2021
September 15, 2021

Covid-19 – The number of COVID-19 cases and associated deaths recorded in one single day is on the rise Romania. 4,004 cases were announced on Wednesday out of more than 44,000 tests. 83 people have died of Covid-19 and 696 are in ICUs. New Covid-19 outbreaks are emerging. In those localities where the threshold of 2 cases per thousand inhabitants has been exceeded, the authorities are starting to enforce additional protection measures. In another development, the pace of the vaccination campaign remains slow, despite repeated calls from experts. Moreover, the Delta virus strain, which is beginning to become dominant, has a higher transmission rate than the previous variants. The authorities expect more and more people to get contaminated.

Motion — Romania’s Constitutional Court is to announce the deadline for debating the Liberal Prime Minister Florin Cîţus notification regarding the existence of a legal conflict between the Parliament and the Government in relation to the censure motion tabled by the USR-PLUS, former no. 2 in the governing coalition and the nationalist Alliance for the Union of Romanians — AUR, in opposition. The parties involved were given Wednesday as deadline to submit their views to the Constitutional Court. The Permanent Bureaus of the Senate and the Chamber of Deputies believe that there is a constitutional conflict in the case of the censure motion. Instead, the Speaker of the Senate, Anca Dragu (USR-PLUS), and the Speaker of the Chamber of Deputies, Ludovic Orban (PNL), do not agree with Parliament’s unfavorable point of view, adopted with the votes of the National Liberal Party – PNL and of the Democratic Union of Ethnic Hungarians in Romania – UDMR (in the government coalition), and also of the opposition Social Democratic Party – PSD, therefore they sent separate documents to the Constitutional Court. Ms. Dragu syas there is actually a political conflict which the Government wants to transform into a constitutional one. The government, dominated by the Liberals, claims that the no-confidence motion does not have the minimum number of valid signatures and that the Speaker of the Chamber of Deputies did not inform the Government about the document on the same day it was tabled. Entitled Dismissal of the Cîţu Government, Romanias only chance to live! the censure motion accuses the prime minister of having plunged Romania into a serious economic and social crisis.

Energy — The Romanian Parliament is today debating the rise in energy bills in Romania. The parliament has already decided to set up a committee to investigate the causes of the skyrocketing natural gas and electricity price hikes. The Labor Minister, Raluca Turcan, has pointed out that, one week after its adoption in Parliament, the Vulnerable Consumer Law has not yet been sent for promulgation. According to her, this is a law that provides financial aid to more than 500,000 households that need state support to be able to pay their bills during the winter season. On Tuesday, President Klaus Iohannis and Prime Minister Florin Cîţu talked with representatives of the Enel energy company about the recent developments on the domestic energy market. Klaus Iohannis told Enels management that it is necessary for companies in the sector and the authorities to coordinate their efforts to protect vulnerable consumers, and also companies that have already been strongly affected by the rising prices.

Strasbourg — The next year will be yet another test of character for the EU with new challenges posed by the COVID-19 pandemic and deeper fractures, said Ursula von der Leyen in her State of the Union Speech delivered Wednesday in the plenum of the European Parliament in Strasbourg. The European official said the EU bloc would be stronger if it looked more like the “Next Generation”. The debate on the state of the European Union takes place every year in September and it is a key moment in demonstrating the European Commissions responsibility to the democratically elected EU representatives.

Survey – Almost 2/3 of Romanian entrepreneurs (62%) do not feel the economic growth announced by the Government – show the results of a survey made by one of the most important producers of software for companies in Romania. According to the survey, only 9.5% of companies have registered increases in their turnover, and 26% do not notice any real change compared to 2020. Many entrepreneurs believe that instability and the lack of predictability will persist in the Romanian business environment in the current political context. (LS)

15 September 2021
Christmas in Romania

The diversity of Christmas holiday packages in Romania is no longer a surprise for tourists. You can spend a holiday in a more traditional part of the country, to see ancient customs and rites first-hand, you can choose a spa resort or, why not, a hotel close to a ski run. Romanias big cities also organize charming Christmas fairs. So whatever option you choose, you are certain to have a holiday to remember.

Romania is a unique destination in Europe in terms of traditions, but the local cuisine is also famous, says Marius Zamfir, the head of Transylvania Hotels and Travel. So we open our Christmas travel offer with an invitation to north-western Romania, 9 km from the city of Oradea and very close to the Hungarian border. Baile Felix spa resort here has long been a major holiday destination for both Romanian and foreign tourists. The resort boasts a network of hotels with modern indoor and outdoor pools. We have chosen a 5-star hotel in Baile Felix:

Marius Zamfir: “In this resort, Christmas packages have been designed for 4 and 5-night stays between December 20th and 27th. I would like to mention first the Christmas dinner, with traditional products for both our regular tourists and for those who observe the Orthodox fasting period. Folk ensembles will perform carols and stage shows presenting the local New Years and Christmas customs and traditions. The guests have free access to the Aqua Park, to the adventure park and to saunas, and a spa procedure is included in the price of each package. Tourists are obviously free to choose multiple such procedures from the hotels offer. The tariff for a 4-night package per person in a double room starts from around 750 euros, and the 5-night package costs around 900 euros.

Bukovina, in the north of the country, is another region famous for its well-preserved traditions, for its medieval monasteries with mural paintings and for its outstanding cuisine. But it is also a destination of choice for the more active tourists. The number and diversity of holiday options in rural Bukovina are growing from one year to the next. Essentially, wellness tourism and agritourism both involve a return to nature, to organic food, to a healthier life. And whether you choose to stay in a modern or a rustic guesthouse, you will be charmed by the region and its people.

Marius Zamfir: “There are 4-night packages in 4-star guesthouses, which include breakfast, 2 lunches, a snack and a Christmas dinner. The dinner on Christmas Eve is accompanied by performances of traditional carols, but local customs are also presented on Christmas day. This particular guesthouse also has a spa centre with free entrance to swimming pools, Jacuzzi, saunas, etc. Prices start from 550 euros per person, and vary with the type of room.

Also in the north of Romania we find the other historical region famous around the world: Maramures. Holiday packages here are tailored to the needs of families. Here is Dan Carpov with the Maramures County Councils Tourist Information Centre:

Dan Carpov: “In Maramures, prices are excellent, and packages include not only traditional stays, but also novelties that we have designed for the foreign tourists who reach our part of the country. Prices start from 200-300 euros, and cover accommodation, meals, visits and narrow-gauge train rides. The tariff for the New Years package is a little higher, ranging from 300 to 400 euros. We have this app called Visit Maramures, running on both IoS and Android systems. It is a database with information on accommodation options, meals plans, trekking and biking routes, as well as an offline map. In Maramures there are 8 churches that are included in the UNESCO heritage list, but the number of wood churches here is actually a lot larger. The monasteries here are also widely admired, and examples include the ones in Barsana or the one in Peri, which is the tallest wood building in Europe. And we should not overlook winter sports, because people come here on Christmas not only for a tasty meal. We have at least 3 ski runs that meet international standards.

And since we mentioned skiing, lets stop next in Poiana Brasov, Romanias largest skiing region. The town of Brasov in central Romania is acclaimed for its medieval architecture, but also for the diversity of cultural sites, for the active holiday experiences and for its shopping opportunities. Marius Zamfir invites us to a 5-star hotel downtown Brasov:

Marius Zamfir: “Prices here start from around 700 euros for 4-night stays. The package includes a welcome dinner on December 23rd. The festive Christmas dinner, on December 25th, is accompanied by folk performances by local ensembles. Guests have unrestricted access to the hotels spa services, including pool, saunas, massage etc. The hotel is 12 km away from Poiana Brasov and its ski runs.

This wraps up todays instalment of Travellers Guide, we are looking forward to welcoming you in Romania this Christmas season.

(translated by: Ana-Maria Popescu)

19 December 2019
Christmas in Romania

The diversity of Christmas holiday packages in Romania is no longer a surprise for tourists. You can spend a holiday in a more traditional part of the country, to see ancient customs and rites first-hand, you can choose a spa resort or, why not, a hotel close to a ski run. Romanias big cities also organize charming Christmas fairs. So whatever option you choose, you are certain to have a holiday to remember.

Romania is a unique destination in Europe in terms of traditions, but the local cuisine is also famous, says Marius Zamfir, the head of Transylvania Hotels and Travel. So we open our Christmas travel offer with an invitation to north-western Romania, 9 km from the city of Oradea and very close to the Hungarian border. Baile Felix spa resort here has long been a major holiday destination for both Romanian and foreign tourists. The resort boasts a network of hotels with modern indoor and outdoor pools. We have chosen a 5-star hotel in Baile Felix:

Marius Zamfir: “In this resort, Christmas packages have been designed for 4 and 5-night stays between December 20th and 27th. I would like to mention first the Christmas dinner, with traditional products for both our regular tourists and for those who observe the Orthodox fasting period. Folk ensembles will perform carols and stage shows presenting the local New Years and Christmas customs and traditions. The guests have free access to the Aqua Park, to the adventure park and to saunas, and a spa procedure is included in the price of each package. Tourists are obviously free to choose multiple such procedures from the hotels offer. The tariff for a 4-night package per person in a double room starts from around 750 euros, and the 5-night package costs around 900 euros.

Bukovina, in the north of the country, is another region famous for its well-preserved traditions, for its medieval monasteries with mural paintings and for its outstanding cuisine. But it is also a destination of choice for the more active tourists. The number and diversity of holiday options in rural Bukovina are growing from one year to the next. Essentially, wellness tourism and agritourism both involve a return to nature, to organic food, to a healthier life. And whether you choose to stay in a modern or a rustic guesthouse, you will be charmed by the region and its people.

Marius Zamfir: “There are 4-night packages in 4-star guesthouses, which include breakfast, 2 lunches, a snack and a Christmas dinner. The dinner on Christmas Eve is accompanied by performances of traditional carols, but local customs are also presented on Christmas day. This particular guesthouse also has a spa centre with free entrance to swimming pools, Jacuzzi, saunas, etc. Prices start from 550 euros per person, and vary with the type of room.

Also in the north of Romania we find the other historical region famous around the world: Maramures. Holiday packages here are tailored to the needs of families. Here is Dan Carpov with the Maramures County Councils Tourist Information Centre:

Dan Carpov: “In Maramures, prices are excellent, and packages include not only traditional stays, but also novelties that we have designed for the foreign tourists who reach our part of the country. Prices start from 200-300 euros, and cover accommodation, meals, visits and narrow-gauge train rides. The tariff for the New Years package is a little higher, ranging from 300 to 400 euros. We have this app called Visit Maramures, running on both IoS and Android systems. It is a database with information on accommodation options, meals plans, trekking and biking routes, as well as an offline map. In Maramures there are 8 churches that are included in the UNESCO heritage list, but the number of wood churches here is actually a lot larger. The monasteries here are also widely admired, and examples include the ones in Barsana or the one in Peri, which is the tallest wood building in Europe. And we should not overlook winter sports, because people come here on Christmas not only for a tasty meal. We have at least 3 ski runs that meet international standards.

And since we mentioned skiing, lets stop next in Poiana Brasov, Romanias largest skiing region. The town of Brasov in central Romania is acclaimed for its medieval architecture, but also for the diversity of cultural sites, for the active holiday experiences and for its shopping opportunities. Marius Zamfir invites us to a 5-star hotel downtown Brasov:

Marius Zamfir: “Prices here start from around 700 euros for 4-night stays. The package includes a welcome dinner on December 23rd. The festive Christmas dinner, on December 25th, is accompanied by folk performances by local ensembles. Guests have unrestricted access to the hotels spa services, including pool, saunas, massage etc. The hotel is 12 km away from Poiana Brasov and its ski runs.

This wraps up todays instalment of Travellers Guide, we are looking forward to welcoming you in Romania this Christmas season.

(translated by: Ana-Maria Popescu)

18 December 2019