SCHENGEN The EU Council voted unanimously in favour of Romania’s and
Bulgaria’s gradual accession to the passport-free Schengen Area, after Austria, the last member country opposing
the measure, lifted its veto. As of March 2024, air and maritime border checks
with these 2 countries will be abolished, with Austria, Bulgaria and Romania committing
to also agree on a deadline for ending land border checks.The decision also comprises measures to
tighten border checks and fight illegal migration, so that Romania and
Bulgaria will continue to receive substantial financial support and assistance
from FRONTEX. The European Council president Charles Michel, the head of the
European Commission Ursula von der Leyen, the head of the European Parliament Roberta
Metsola and the EU Commissioner for home affairs Ylva Johansson are some of the
EU leaders who have welcomed the decision.This
is an important first step, Romania’s president said in his turn, and added
that lifting land border checks as well remains a priority for Romania.
AIRLINE The Otopeni Henri
Coandă International Airport, the largest in Romania, has been prepared for
Schengen operation ever since 2011. According to the airport spokesman Valentin
Iordache, two-thirds of the airport passengers have flights to and from Schengen
member states. Meanwhile, the Romanian state-owned airline TAROM resumed
flights to and from Tel Aviv on January 1, after having suspended them in the
wake of the October 7 attacks by the Palestinian terror group Hamas.
PRICES The year 2024 begins with price
rises for fuels and foodstuffs as well as for some services. For traditional,
organic foodstuffs and for food products made in mountain regions, the VAT went
up from 5% to 9%. Excises are also raised for tobacco, alcohol and soft drinks
with high sugar content. Also, certain
micro-enterprises will have to pay higher taxes on turnover, with tax increases
also in place for banks, hotels and restaurants. Housing costs will also be higher, as the VAT in
the real estate sector goes up from 5% to 9% for units worth up to EUR 120,000.
Also as of January 1, meal and holiday vouchers are to be included in the total
incomes for which health insurance contributions are paid. Analysts predict
retail price increases will be substantial,
and expect consumers to turn to cheaper products, while producers will lower
the product weight in order to observe price caps.
POLICE Close to 24,000 interior ministry staff are on duty
during the 4-day New Year’s holiday, while road traffic is monitored by 360 radar
speed guns and DUI check teams. Also, around 5,000 fire-fighters are on duty
every day around the country, to provide emergency assistance if necessary. The
border police also took steps to enhance border monitoring and to streamline
vehicle and person transit at checkpoints. Meanwhile, the authorities announced
having seized over 100 tonnes of fireworks kits and opening more than 500 criminal
investigations in this respect, and have once again called on parents not to
buy firecrackers for their children as such materials may be extremely dangerous.
INVOICING Electronic invoicing is compulsory in Romania as of
January 1 for all B2B transactions. The system entails benefits particularly in
terms of curbing VAT frauds, the finance minister Marcel Boloş told a press
conference. He also said that those who will not use the e-Invoicing system may
receive sentences of 3 to 10 years in prison, if the new law on fighting
economic and financial crime passes the Constitutional Court review. The
authorities count on additional revenues of EUR 1 bln. Minister Boloş also said
that in December the national tax authority’s directorate for large taxpayers
secured a record-high total of EUR 3.2 bln in state budget revenues. On the
other hand, the government extended a cap on the price of compulsory motor
insurance policies, which will stay at the level in February 2023 until March 2024.
The Cabinet also passed a bill making insurance compulsory for electric bikes
and scooters as well. (AMP)