Tag: salary law

  • May 5-11, 2018

    May 5-11, 2018

    May 9th a day with threefold significance for Romania



    May 9th has a threefold significance for the Romanians. On May 9th they celebrate the Independence Day, proclaimed in 1877, the victory of the United Nations coalition in World War Two and also Europe Day. At a reception offered by the Romanian Presidency on this occasion, the Romanian president Klaus Iohannis deplored the fact that there are politicians in Bucharest who question the Union’s role and relevance, at the same time neglecting the benefits of belonging in this project, arguing that Romania would be better off outside the European family.



    The country’s Prime Minister Viorica Dancila said in a communiqué that Romania believes in the European project and that it is taking action for its support and development. The Romanians’ standard of living has constantly grown after the country’s EU accession 11 years ago, Angela Cristea, the head of European Commission Representation also said. According to Mrs. Cristea, Romania has to continue its efforts to have the Cooperation and Verification Mechanism lifted, which is an instrument through which Brussels is monitoring the situation in Romania’s legal system.



    The government has reached an agreement with trade unions from Romania’s healthcare system



    After spontaneous protests in hospitals around the country, several rounds of talks between the government and trade unions and a two-hour token strike, employees of Romania’s healthcare system decided to give up their all-out strike scheduled for May 11th. The agreement between the government and trade unions also provides that all employees who lost money as a result of the new salary law will be reimbursed. The healthcare minister Sorina Pintea now says the government will again amend the law on public sector salaries.



    The changes will only cover the way in which benefits are granted, the labor minister Lia Olguţa Vasilescu has pointed out. She says on-duty time performed by physicians and nurses will no longer be subject to the provision that stipulated a 30% cap on benefits. Commentators say, however, that this does not heal the most acute problems in the system: old hospitals with precarious equipment and full of bacteria, shortages of sometimes essential medicine, insufficient and still unmotivated medical staff, or staff hostile to patients despite the generous pay rise.



    Financial disputes between the President and the government



    The Romanian President Klaus Iohannis on Monday again called for the resignation of the Social Democratic Prime Minister Viorica Dăncilă. The president this time invoked a series of low economic performances by the present government. After the publication of the budget execution report for the first quarter of the year, the president argued the national budget is under a tremendous pressure against the backdrop of increasing total expenses and that the evolution of public finances is completely unsatisfactory. The president has lashed out at the PSD-ALDE government, which he accuses of having neglected major investments and of having failed to turn Romania’s economic growth rate of 7% into a rise in revenues.



    Klaus Iohannis: “After almost one year and a half of Social Democratic governing, including this debatable situation of the so-called pay rises, we see no roads, no motorways, no schools, no hospitals. The Social Democratic Party is in fact mortgaging the future of the country. It raises salaries and pensions and neglects major investments in infrastructure or investments that are needed for the country’s development in general.”



    The Government, on the other hand, says that Romania’s economic parameters for the first quarter of the year grew as compared to the same period of 2017. Deputy Prime Minister Viorel Stefan has stated that budget revenues grew by 12%, and investments doubled as compared to 2017.



    UNITER Gala



    Directors Mihai Măniuţiu and Yuri Kordonski and actors Mariana Mihuţ and Victor Rebengiuc are the big winners of this year’s UNITER Awards Gala. The Theater Union of Romania — UNITER — has this year celebrated the best actors and directors of the year 2017 in the Transylvanian city of Alba Iulia, in central Romania, the symbol of the Great Union of the Romanian historical provinces, which took place 100 years ago.



    The award for best performance in 2017 went to ‘Rambuku’ by the Norwegian writer Jon Fosse, adapted by Anca Măniuţiu and directed by Mihai Măniuţiu. Best director was designated the Russian Yuri Kordonsky, for the show ‘The Incredible and Sad Tale of Innocent Erendira and her Heartless Grandmother’ by Gabriel Garcia Marquez. The Great actors Mariana Mihut and Victor Rebengiuc won the best actress and best actor awards respectively, for their parts in ‘Exit the King’ by Eugene Ionescu, directed by Andrei and Andreea Grosu.



    The best TV drama performance was designated ‘Midwinter Night’s Dream’ by Tudor Muşatescu, and the best radio drama award was won by ‘Ovid, the Pontus Euxinus Exile’, based on a script by Emil Boroghină and produced by the Romanian Radio Broadcasting Corporation. The award for the best Romanian play in 2017 went to Daniel Oltean, for the play ’50 seconds’. Also, UNITER handed the lifetime achievement award to actor Horaţiu Mălăiele.



    The Romanian Foreign Minister heard in Parliament in relation to the relocation of the Romanian Embassy in Israel



    The Memorandum on the relocation of the Romanian Embassy in Israel from Tel Aviv to Jerusalem was discussed in Government last week and was submitted to the President only after being approved by the Executive, the Foreign Minister Teodor Meleşcanu stated. On Wednesday, he was heard by the Foreign Policy Committee of the Chamber of Deputies in relation to the memorandum, which created a conflict between the President and the Government. According to the law, the head of state is the only one that can move an embassy from one city to another, and Klaus Iohannis has voiced discontentment with the fact that statements on the topic have been carried in the public space as if a decision had already been made. Meleşcanu also stated that the document was not classified as top secret, but that it includes information that is not public, and is therefore confidential.



    Teodor Melescanu: “Our concern is to conduct a serious analysis of the legal, political and economic implications of the decision to relocate the Romanian Embassy to Jerusalem and to provide the arguments that political decision-makers — Parliament, President and Prime-Minister- need in order to take a common stand on the matter.”



    Minister Meleşcanu has also admitted that the talks on the relocation of the embassy might affect Romania’s candidacy for a position of non-permanent member of the UN Security Council in 2020-2021.

  • Corrections to the unitary salary law

    Corrections to the unitary salary law

    The Romanian
    Government has again modified the salary law. The reason for this decision was
    that, as a result of shifting the obligation to pay social security
    contributions from employers to employees, there would have been categories of
    workers getting less money for medical leaves, including maternity leaves, as
    compared to last year.




    The categories
    targeted by the latest changes are employees on medical leave for temporary
    work disability, pregnant women and women who have just given birth, workers on
    parental leave to care for their sick children as well as women on
    pregnancy-related sick leave.




    Prime Minister
    Viorica Dancila has stated that all these categories will get as much money as
    they did last year:




    People on medical leave for temporary work
    disability or on parental leave will benefit from the same rights and the same
    incomes as those valid until January 1st, 2018.




    The ordinance stipulates that women with children
    will get the same amounts for medical leave until October 1st, and,
    as regards the other categories of employees, the value of medical leave
    benefits will remain as they were in 2017, until July 1st, 2018. The
    transfer of the obligation to pay social security contributions from employers
    to employee has triggered lots of controversies and even protests among several
    categories of employees, who saw their salaries actually slashed.




    The main opposition party in Romania, the National
    Liberal Party, has filed a simple no-confidence motion against the Labour
    Minister Lia Olguta Vasilescu, criticising the new provisions, which, in their
    opinion, have done even more harm to the salary system and the tax system in
    general. The no-confidence motion, however, has been rejected. According to the
    Labour Minister, the aim of the new salary law was to create a balanced public
    salary system, as there were many employees being paid differently for doing
    the same jobs.

  • February 21, 2018 UPDATE

    February 21, 2018 UPDATE


    BRUSSELS – Romania’s place is
    clearly in the Schengen area, said in Brussels on Wednesday the European
    Commission President Jean-Claude Juncker, in a joint press conference with the
    Romanian Prime Minister Viorica Dancila. The EC President also said that the
    Cooperation and Verification Mechanism, by means of which the Commission
    monitors the Romanian justice system, must be lifted. Also, Juncker said that,
    in the first half of 2019, when it will
    be holding the presidency of the EU Council, Romania will be faced with a huge
    responsibility. In turn, the Romanian Prime Minister said that the CVM should
    be lifted, because it’s not normal for Romania to take over the presidency of
    the EU Council while still under sanction. Romania will make all possible efforts
    to ensure a fair and transparent cooperation with the European institutions,
    the Prime Minister also said. On Tuesday, Viorica Dancila, on her first formal
    visit abroad as Prime Minister of Romania, held talks with the President of the
    European Parliament Antonio Tajani and the European Council President Donald
    Tusk.






    MOTION – The simple motion
    filed by the opposition National Liberal Party against the Labour Minister Lia
    Olguta Vasilescu was rejected by the Romanian Chamber of Deputies on Wednesday.
    157 deputies voted against, 96 for and 16 abstained. The Liberal Party accuses
    the ruling coalition of disturbing the fiscal and social systems and of
    creating gaps between the private and the public sectors. According to the
    initiators of the no-confidence motion, shifting the obligation to pay social
    security contributions from employers to employees has led to a drop in the
    salaries of more than two million people. At the debate held in the Chamber of
    Deputies, minister Olguta Vasilescu said that salaries cannot drop if employers
    do the right thing, as provided by law.






    CONSTITUTIONAL COURT – Romania’s Constitutional Court on Wednesday
    rejected as inadmissible the complaints submitted by the Save Romania Union
    regarding the revision in Parliament of the justice laws. The opposition Save
    Romania Union had filed several claims of unconstitutionality against the Law
    on the organization and functioning of the Superior Council of Magistracy, the Law on the status of judges and
    prosecutors and the Law regarding judicial organization. According to the Save
    Romania Union, the three laws, as endorsed by parliament, undermine the
    independence of the Romanian magistrates. The political power in Bucharest, however, argues that the revision of
    the justice laws was necessary, given that they had not been revised in over ten
    years. On the other hand, the political opposition, part of civil society and
    the magistrates’ professional organizations are against the changes, saying
    they only serve the vested interests of some politicians and business people.








    MOLDOVA – Romania’s President
    Klaus Iohannis received on Wednesday in Bucharest the Deputy Prime Minister for
    European Integration of the Republic of Moldova, Iurie Leanca. On the occasion,
    the Romanian president stressed the fact that a European road is the only way
    for the future Republic of Moldova. Among other things, the two officials
    talked about Moldova’s getting connected to the European energy system, through
    Romania. On Tuesday, Leanca also held talks with the Romanian Foreign Minister
    Teodor Melescanu and the Minister Delegate for European Affairs Victor
    Negrescu.












    PROTEST – On Wednesday,
    education trade unionists took to the streets and picketed the headquarters of
    the Labour Ministry in Bucharest, protesting against the recent fiscal and
    budgetary measures because of which, they say, thousands of employees on medical leave will lose important
    amounts from their incomes. Also, they called for a renegotiation of the salary
    law, whose provisions have led to situations in which certain public employees
    are being discriminated against. They also want a revision of the pension law,
    so that the teaching staff can retire three years before the standard age.
    Similar protest actions are scheduled for Thursday.










    FLU – 45 people have died from flu this winter,
    according to a report presented on Wednesday by the National Center of
    Infectious Disease Surveillance and Control. The number of infected people
    exceeds 500. Most of them live in the capital and in the counties of Constanta,
    Olt, Brasov and Iasi. Authorities recommend vaccination, and the Ministry of
    Health has announced that there are still some 80,000 shots available. So far,
    920,000 people have been vaccinated against the flu. According to the Health
    Minister Sorina Pintea, at the moment we cannot speak of a flu epidemic in
    Romania.



  • Explanations regarding the salary scheme

    Explanations regarding the salary scheme

    The unitary salary
    law and the law under which the obligation to pay the contributions to the
    social security fund was transferred from employers to employees have triggered
    a genuine tsunami. Although the government, formed by the Social Democratic
    Party and its junior partner the Alliance of Liberals and Democrats, says that
    the two laws have corrected major dysfunctions in the system, which will lead
    to salary increases for some, but also decreases for others, trade unions say
    it’s all lies and manipulation.




    In a much-awaited
    press conference on Tuesday, the Labour Minister Lia Olguta Vasilescu said
    that, when the salary law was adopted in June last year, the ratio between the
    minimum salary and the maximum one, that of the president of the country, was 1
    to 18, and the Government’s plan is to bring it to 1 to 12. Moreover, salary
    adjustments were necessary, given that, for the same positions and
    responsibilities, public servants were paid differently.




    However, there is a
    significant number of categories of public employees who have been complaining
    that their salaries have dropped since the two laws came into force. The
    minister, however, does not agree, stating that only the big salaries have been
    cut, accounting for 3% of the state employees. Labour Minister Lia Olguta
    Vasilescu:




    I would like to
    stress the fact that everybody knew about the 3% of the public sectors
    employees whose salaries were to be cut. I, for myself, have announced that in
    several interviews, but also in the parliamentary committees, where the salary
    law was debated. Obviously, we would have liked not to reduce any salary in the
    public sector. But, in order to observe the 1 to 12 ratio, which is the fair
    one and in line with the EU legislation, salary adjustments had to be operated,
    both in the case of those whose salaries were higher than that of the
    president, and in the case of certain public servants, whose salaries were
    twice as high as that established in the salary scheme for 2022.




    The opposition
    National Liberal Party is intent on filing a simple no-confidence motion
    against the Labour Minister. The Liberal MP Dan Valceanu believes that Lia
    Olguta Vasilescu has avoided speaking about the real effects of the decisions
    made by the Government. Dan Valceanu:




    What the minister did was to merely read from the
    text of the law, without telling us what’s going to happen to court clerks,
    police officers, employees of the county statistics offices, the teachers who
    are paid by the hour or other categories of employees who are now in a
    situation in which they have to pay the state for the work they do, and not the
    other way round. I hear the minister telling us things about pensions,
    forgetting to mention, for instance, that pensioners have not actually seen
    their pensions rise on January 1st, as they should have been. Also,
    she told us that there’s nothing they can do about the private sector. I myself
    did not understand anything she said, what I heard was a reading from the text
    of the law and what she said in the end, namely that people should read the
    law.




    If we look at how much of the state budget went to
    salaries, we see that the sums are considerable, namely 57 billion lei in 2016,
    70 billion in 2017 and an expected 80 billion in 2018. According to the
    government, this shows that Romanians’ salaries will grow significantly.

  • February 6, 2018 UPDATE

    February 6, 2018 UPDATE

    REP. MOLDOVA – Romanias strategic objective in the relation with the Republic of Moldova is the European integration of the neighboring state, Romanian foreign minister Teodor Meleşcanu said in Bucharest on Tuesday, fresh from the talks with his Moldovan counterpart, Tudor Ulianovschi. The two ministers talked about ways to consolidate Romanias investments in the Republic of Moldova and about prospects of interconnecting the power-grids. The Romanian foreign minister also mentioned the initiative taken by the authorities of several Moldovan towns to collect signatures for the unification with Romania, a move that has been described by the Moldovan President Igor Dodon as being liable to trigger “a civil war. The declarations that are being made at local level on the unification with Romania are, from Bucharests point of view, only the expression of the Moldovan citizens wish to get closer to the citizens of Romania, without any legal implication. In turn, foreign minister and minister of European integration, Tudor Ulianovschi, has hailed Romanias efforts to consolidate the sovereignty of the Republic of Moldova. He underlined that Romania is Moldovas largest trade partner. Ulianovschi has said Moldovas European orientation continues to be an unchangeable and major objective of Moldovas domestic and foreign policy.



    STOCK EXCHANGES – The Bucharest stock exchange closed on Tuesday 2% below most indices, in line with European stocks. Stocks the world over, Romania included, fell sharply, after the Dow Jones Industrial Average plunged 1,175.21 points, or 4.6%, causing the biggest financial crisis since 2008. Even though they closed in the red, Europes stock markets avoided Mondays sharp plunge in the USA and Asia, especially in Japan, where the Nikkei lost almost 7%, falling below the key 8,000 technical level for the first time in three weeks. In other Asia markets, the Hang Seng index in Hong Kong reported a sharp 3.9% drop, while the Shanghai stock exchange closed in the red, down by 3.40%.



    JUSTICE LAWS – The Romanian Justice Minister Tudorel Toader on Tuesday met in Strasbourg with European Commission Vice-President, Frans Timmermans, to discuss the current stage of the justice laws and the modifications to the criminal codes. Another topics on the agenda was the Romanian Constitutional Court’s ruling on integrity of public office. The European Parliament in Strasbourg on Wednesday will be hosting debates on the rule of law and the reform of the judiciary in Romania. On January 24, the European Commission voiced concern about the latest developments in Romania and called on the Romanian Parliament to reconsider the modifications to the justice laws. The independence of the judiciary and its capacity to fight corruption efficiently are the cornerstones of a strong Romania within the EU, a joint declaration issued by the President of the European Commission, Jean-Claude Juncker, and the First Vice-President of the European Commission, Frans Timmermans, reads. The commission will analyse in detail the final modifications to the justice laws to establish their impact on the efforts to guarantee the independence of the judiciary and the fight against corruption, the joint declaration also reads. Late last year, the ruling majority in Bucharest made up of the Social Democratic Party-the Alliance of Liberals and Democrats in Romania adopted changes to the justice laws, which have been vehemently criticized by magistrates associations and the opposition, on ground they would be aimed to politically subordinate the judicial system.


    SALARY LAW – The salary law passed last year was meant to balance the irregularities in the salary scheme, such as being paid different salaries for carrying out the same tasks in public institutions, Labour Minister Lia Olguta Vasilescu says. The Romanian official pointed out the law observes a basic European principle, that of equal pay for equal work. Bonuses have been capped, as in most cases they exceeded the basic salary. Minister Vailescu went on to say that people working half time will be switched to the 8-hour workload. The Government plans to adopt an emergency decree on this, given that people working half time pay minimum-wage contributions to the state budget, exceeding their real-time paygrade.



    SECURITY – The Directorate for Investigating Organized Crime and Terrorism has announced, in its 2017 activity report, that Islamic radicalisation in Romania is one of the major risks. Anti-terror prosecutors say the phenomenon has gained ground over the past few years and the law on preventing and fighting terrorism should be updated. According to them, last year Romania didnt face any concrete and consistent terror threats. In another move, anti-drug prosecutors say they seized over 2,000 kilograms of drugs in 2017, with cannabis being the most smuggled drug, brought over particularly from Spain and the Netherlands, by road. As regards cross border drug trafficking, Romania has remained a transit country, placed on the “Balkan route of transport, especially of heroin, cocaine and ecstasy.






    ACCORD – The Radio Broadcasting Corporation and the Public Television Station today signed a partnership accord, which will underlie cooperation in terms of informing Romanian citizens, with cultural, educational and social connections. The purpose of the accord is to mutually promote the two institutions and humanitarian campaigns, implementing joint cultural and artistic projects and cooperating with a view to promoting other projects. The accord also recognizes the two institutions major role in society, by promoting national values, providing audiences with innovative and easily accessible cultural programs.


    (Translated by D. Vijeu & V. Palcu)

  • Controversies related to the salary system in Romania

    Controversies related to the salary system in Romania

    Two controversial government bills, one on salaries in the public sector and the other on the modification of the Fiscal Code, will take effect in 2018, and employees fear that the measures have not received proper consideration from the leftist governing coalition made up of the Social Democratic Party and the Alliance of Liberals and Democrats. These days, the social dialogue between government and trade unions has come to a standstill. The most vocal critic of the proposed measures, the Cartel Alfa leader, Bogdan Hossu, has warned that the bill on amending the Fiscal Code, which transfers from employers to employees the obligation of paying the social security contributions, is quite flawed and can endanger the situation of 2 million employees who might incur losses in terms of their net income.



    Cartel Alfa has called for the resignation of the labor minister, Lia Olguţa Vasilescu, whom they accuse of disinformation and lying as regards the effects of the proposed measures. The trade union organization also claims that Minister Vasilescu has drafted one of the worst public salary laws, which does nothing but deepen inequities and imbalances in the public sector. In reply, Minister Vasilescu caustically urged trade unionists to learn some math while giving assurances that the new fiscal provisions will not lead to a drop in salaries. She also leveled criticism against the Cartel Alfa leader, Bogdan Hossu:



    Mr. Hossu is always interpreting our decisions in his own way. He did the same with the declarations of the employers’ associations’ representatives. When asked by the prime minister, the employers’ associations’ representatives said clearly that they did not intend to decrease salaries”.



    Another important trade union organization, the National Trade Union Bloc, draws attention to the fact that there is no certainty about maintaining the level of net salaries at the level prior to the implementation of the aforementioned measure, given that there is no law forcing employers to increase gross salaries by the amount of the social security contributions which they have paid to the state budget until now. Employers associations avoid getting involved in the conflict between the government and trade unions. However, blocking social dialogue is not a solution, and businesspeople recommend the government pay more attention to the issue and not hurry to take measures whose potential impact was not assessed properly. Dragoş Anastasiu is the representative of the employers’ association entitled the Coalition for the Development of Romania:



    Let’s have a genuine dialogue and give ourselves a 3- or 4-month period to analyze the measures and to make an impact study which has not been made. We need to reach consensus. Romania has reported economic growth, therefore there is no need for hasty measures.”



    The Coalition for the development of Romania says the business environment has not asked for this measure of transferring the obligation of paying social security contributions from employers to employees. Moreover, they believe that this measure could lead to an increase in the level of gross salaries, which might make Romania totally uncompetitive in comparison to other states. (Translated by L. Simion)

  • April 22, 2016 UPDATE

    April 22, 2016 UPDATE

    RULING — Social-Democrat Liviu Dragnea on Friday was sentenced to two years in prison by the High Court of Cassation and Justice in the “Referendum” case. The ruling is final. Last year the first court of law handed Dragnea a one-year suspended prison sentence for election fraud. Prosecutors say that in 2012, as acting Secretary General of the Social-Democratic Party, Liviu Dragnea coordinated a complex network aimed at swinging the vote of the referendum held on the suspension of the then right-wing president Traian Basescu. The referendum did not pass due to lack of quorum, and Traian Basescu remained in power until the end of his mandate in 2014. Prosecutors also claim Dragnea used all the means at his disposal to persuade local Social-Democratic officials to illegally take people to voting polls so that the referendum might pass. Liviu Dragnea claimed he was innocent and that the sentence he was given was harsh. Dragnea added he would not step down from the helm of the Social-Democratic Party, as his political opponents have insisted, in order to maintain stability within the party ahead of the local elections scheduled for June 5.



    SALARY LAW-Romanian Prime Minister, Dacian Ciolos, announced on Friday that the Government was planning to reset its operating ways and to restart the drafting of an emergency ordinance, whose aim would not necessarily be to change the current salary law, but to correct it, with focus on the salary grid, but only within the right budgetary constraints. Ciolos has held talks with the new labour minister, Dragos Paslaru, with trade union and employers’ association representatives about the salary law in the public sector. According to Paslaru, the Government has prepared a new version of the ordinance on unitary salary pay system, which might be adopted on June 1st and enforced in autumn. Low salaries will go up first, says the minister, followed by measures aimed at doing away with the inequities in the system. Trade union leaders have stated they do not support this initiative.



    EUROVISION — Representatives of the Finance Ministry and the public television station met in Bucharest on Friday for talks after the public television station’s membership to the European Broadcasters’ Union was withdrawn. With that Romania also loses its right to take part in the Eurovision Song Contest, scheduled to take place in Stockholm this year. The decision is a response to the large accruing debt of the public television station to EBU in the last 8 years. The situation is unprecedented in the history of EBU, as the Romanian Television Station is the first to be excluded from this organisation. Recently, the public television’s board announced that the upcoming European Football Championship in France, as well as the Rio Olympics might not be broadcast due to the severe financial situation of the station.



    WORLD DRUG PROBLEM — The UN General Assembly convened in New York, in its 30th special session, on the world drug problem. Romania’s Permanent Representative to the UN, ambassador Ion Jinga, said the National Anti-Drug Strategy is in full compliance with the international legislative framework and ensures enough action-flexibility at national, regional and international level. In a special session, Romania organised, jointly with the UN Office for Drugs and Crimes, an event on the drug issue and HIV.



    VISIT— US President, Barack Obama, is currently on an official visit to London, in an attempt to convince British voters, ahead of the June 23rd referendum, not to relinquish EU membership. Obama will urge Britons to vote for the UK’s remaining in the EU, to maintain the country’s welfare, its “special relation” with the US and the West’s cohesion. Earlier, the White House leader had paid a visit to Saudi Arabia, where he participated in a Gulf cooperation meeting, held in Riyadh.



    TENNIS — The pair made up of Romanians Horia Tecau and Florin Mergea has qualified directly into the semi-finals of the BRD Nastase-Tiriac Trophy tournament held in Bucharest and totalling 460,000 euros in prize money. The Romanians didn’t play in the quarterfinals because the pair made up of Federico Delbonis of Argentina and Paolo Lorenzi of Italy withdrew from the competition. Teaming up for the fourth time in Bucharest, this is the farthest Tecau and Mergea have gone in this competition. Their previous best was in 2007, when the two reached the quarterfinals. Tecau and Mergea will also represent Romania at the Rio Olympics this year.


    (Translated by V. Palcu & D. Vijeu)

  • April 22, 2016

    April 22, 2016

    SALARY LAW-Romanian Prime Minister, Dacian Ciolos, announced on Friday that the Government was planning to reset its operating ways and to restart the drafting of an emergency ordinance, whose aim would not necessarily be to change the current salary law, but to correct it, with focus on the salary grid, but only within the right budgetary constraints. Ciolos has held talks with the new labour minister, Dragos Paslaru, with trade union and employers association representatives about the salary law in the public sector. According to Paslaru, the Government has prepared a new version of the ordinance on unitary salary pay system, which might be adopted on June 1st and enforced in autumn. Low salaries will go up first, says the minister, followed by measures aimed at doing away with the inequities in the system. Trade union leaders have stated they do not support this initiative.



    THE REFERENDUM CASE-The Supreme Court is to issue its final ruling today on the so-called Referendum case. In May 2015, the leader of the Social Democratic Party Liviu Dragnea was sentenced to one year in prison with suspension, for having coordinated a complex mechanism, involving several people, with the aim of rigging the referendum on July 29th, 2012. Prosecutors say that Liviu Dragnea used his party influence and authority to get undue non-property rights, benefiting the political alliance his party was a member of. The stake was to get the needed participation quorum with votes obtained in conditions other than legal. Liviu Dragnea claims he was innocent and called on the magistrates to acquit him.



    VISIT– US President, Barack Obama, is currently on an official visit to London, in an attempt to convince British voters, ahead of the June 23rd referendum, not to relinquish EU membership. Obama will urge Britons to vote for the UKs remaining in the EU, to maintain the countrys welfare, its “special relation with the US and the Wests cohesion. Obama is today having talks with British Prime Minister, David Cameron. Earlier, the White House leader had paid a visit to Saudi Arabia, where he participated in a Gulf cooperation meeting, held in Riyadh.



    GREECE – The Euro zone finance ministers are today assessing in Amsterdam the progress made by Greece in reforming the state, in exchange for receiving foreign financial assistance, to save it from bankruptcy. The Euro-group meeting comes just a day after the European Commission announced that Athens reached the objectives it has set in an effort to reduce its budget deficit and public debt, and it even exceeded all expectations. The assessment to be made by the finance ministers is of utmost importance, as the disbursement of another instalment of the third big loan for Greece, worth 86 billion Euros, depends on this decision. The Greek government as well as its European partners continue to have different standpoints on various reforms, including those of taxation and pensions.



    EARTH DAY– Earth Day is being celebrated on April 22nd. On this occasion, 160 countries will sign, in New York, a historic agreement meant to slow down global warming. The agreement was reached in principle at the Paris Conference held in December. Earth Day was first celebrated back in 1970, kick-starting the modern environmental protection movement. On this day, various campaigns have been designed to raise public awareness over recycling and to reduce energy consumption. Earth Day is celebrated in Romania, too, where selective waste collecting activities have been intensely promoted.

    WORLD DRUG PROBLEM – The UN General Assembly
    convened in New York, in its 30th special session, on the world drug
    problem. Romania’s Permanent Representative to the UN, ambassador Ion
    Jinga, said the National Anti-Drug Strategy is in full compliance with the
    international legislative framework and ensures enough action-flexibility at
    national, regional and international level.
    In a special session, Romania organised, jointly with the UN Office for
    Drugs and Crimes, an event on the drug
    issue and HIV.



    with the UN Office for Drugs and Crimes, an event on the drug issue and HIV.


    BULGARIA– Mandatory voting will be introduced in Bulgaria, after the Parliament in Sofia on Thursday adopted the new amendments to the Electoral Code. If citizens with the right to vote do not go to the polls, they will automatically be removed from electoral lists. They will be enlisted again only after submitting a written declaration. The opposition voted against the bill. According to FP, the right wing government in Sofia proposed the measure, in an effort to reduce absenteeism and to put an end to the vote-purchasing behaviour. Across the EU, voting is also mandatory in Greece and Belgium.



    EUROVISION– The European Broadcasting Union has today announced that Romania will not be allowed to participate in the 2016 Eurovision Song Contest, because of the debts it has accumulated. Romanias debt to the organiser of the well-known European song contest stands at some 10 million Euros. This year, the Eurovision contest will be held in Stockholm, between May 10 and 14, and Romania should have been represented by Ovidiu Anton, with the song, Moment of Silence. The management of the Romanian Television Company has recently informed the Romanian authorities that the transmissions of other leading competitions, such as the forth-coming European Football Championships in France or the Olympic Games might be discontinued, because of debts and under-financing.


    (Translated by Diana Vijeu)

  • April 6, 2016

    April 6, 2016

    The Romanian Government is discussing today the new draft law on state employees’ salaries. The PM Dacian Ciolos says there are two versions of the law, and the future provisions are meant to re-balance the public salary system. One of the versions proposes a multi-annual salary increase until 2020 starting from the minimum salary level, while the other version refers to salary rises to be operated only next year, depending on the budget. Dacian Ciolos added that the presentation of this draft law was delayed because the current Government believed the approach of the previous government regarding pay rises was not realistic from the point of view of budget resources.



    The Romanian deputies are voting today the simple motion called “Human rights are not a luxury asset” initiated by the Liberals and Democrats Alliance – ALDE against the Justice Minister, Raluca Pruna. They ask for the minister’s resignation, criticizing her for the statements she made related to the citizens’ fundamental rights, after the government passed an ordinance regulating the use of phone tapping in criminal cases. Raluca Pruna opined that talking about human rights is a theoretical luxury in a state weakened by corruption and by an inefficient fight against crime. Although a simple motion does not imply the dismissal of the respective minister, Raluca Pruna said Monday that she was considering a possible resignation, pending the vote in the Chamber of Deputies.



    More than half of Romanians believe the country is going in the wrong direction, shows a survey conducted in March by the INSCOP polling agency. According to the survey, the worsening of the health condition is the main cause of concern for 20% of the interviewees. Romanians are also concerned with the reduction of their incomes and the likelihood of a war or conflict, namely 17%, with the loss of their jobs (13%) and the rise in prices (11%). The survey also shows that 45.6% of the interviewees believe the main issues facing Romania are the economy and employment. High on the list of the country’s priorities are the fight against corruption (25%), the improvement of medical services (9%), bridging the gap between the rich and the poor (8%), the country’s defense against external threats (5%), the reduction of the number of civil servants and the reform of public administration (3.8%).



    The Budget — Finance Committee in the Romanian Chamber of Deputies announced it would invite representatives of the National Agency for Fiscal Administration and of the National Office for the Prevention and Fight against Money Laundering for talks on the Panama Papers international journalistic investigation. The meeting was scheduled for next week. The investigation reveals that heads of state, high-ranking politicians, businesspeople and celebrities from the world over, including Romania, are among the beneficiaries of more than 214,000 off-shore companies registered in 21 tax havens.



    The European Commission will present today a series of measures for strengthening security on the EU’s external borders, against the backdrop of the immigrant flow in Europe and the security threats generated by the terrorist attacks in Brussels and Paris, claimed by the Islamic State, Reuters news agency reports. Europol underlined that Islamist militants took advantage of the flow of immigrants that reached Europe last year to infiltrate into Europe. The Frontex agency recalls that two of the Paris terrorists entered Europe through Greece, by using false Syrian documents. Against the backdrop of flaws and lack of regulation in the laws on managing controls on the EU borders, the EC suggested a series of technical measures to consolidate border security and cooperation on data exchanges. The new system is to be implemented by 2020.



    In Romania, businesspeople do not need a state that should tell them what to do, but a state that should not set obstacles in their activity — said the Romanian Economy Minister, Costin Borc, at a meeting with the members of the Romanian — German Chamber of Commerce. He insisted that the state should focus on the development of online activities so that entrepreneurs and investors should not waste time at various desks. The Economy Minister added that it was important to stimulate Romanian production in all areas of the country and that the state should be friendlier to investors. on managing controls on the EU borders, the EC suggested a series of technical measures to consolidate border security and cooperation on data exchanges. The new system is to be implemented by 2020. (news translated by Lacramioara Simion)

  • October 14, 2015

    October 14, 2015

    EUROPEAN COUNCIL – Romanian president Klaus Iohannis will attend the European Council meeting of October 15-16, taking place in Brussels, focusing on migration and the EUs external borders. The president will meet with European Parliament president Martin Schulz and with Romanian MEPs. Klaus Iohannis said that, as regards migration, Romania wants to be part of the solution, but its approaches are based on solidarity and responsibility. Referring to the situation on the EU borders, Iohannis said Romania takes very seriously the mission to protect its borders and is acting as a Schengen member states. As regards the conflict in Syria, Klaus Iohannis said Russias military intervention has made matters worse, arguing for a dialogue between all stakeholders. Considering that Romanias Embassy in Damascus is still operational, our country might still help bring peace to the area. Referring to the Syrian conflict, the situation of Syrian refugees in Lebanon and Europe, the president had talks today in Bucharest with the president of the National Assembly of the Republic of Lebanon, Nabih Berri.



    SALARY LAW – The Government in Bucharest is today debating the new law on salaries in the public sector. If passed by Parliament and promulgated by the President, the law is due to come into force starting next year. Labour Minister Rovana Plumb said this project helps reduce the number of salary categories in the public sector. Under the new law, salaries will reflect the level of studies and will include motivational elements. We recall that public employees in the health care and education sectors have already been awarded a 25% salary increase. Also today, the Government is discussing the proposal of Finance Minister Eugen Teodorovici regarding the Amnesty Law, under which natural persons are exempt from paying certain interest rates and penalty fees. Taxpayers with unpaid debts by September 30, 2015 might thus be exempt from paying delayed payment penalties if the pay their dues by March 31, 2016 and by June 30, 2016 the related interest rates.



    CORRUPTION – The National Integrity Agency has reported the existence of conflicts of interest at administrative level in the case of 32 former or current MPs. According to the Agency, 14 current deputies, 17 former deputies and a senator hired members of their families in their administrative offices, the total value of the contracts that breached the legal provisions on conflicts of interest reaching some 240,000 euros. Of these, three former deputies and a senator have been referred to the High Court of Cassation and Justice. The remaining 28 MPs fall within the general statute of limitations for conflicts of interest of criminal nature, the Agency informs, adding that it will take proper action with a view to seeing that the documents issued, adopted or drafted while breaching legal provisions on conflicts of interest would be nullified.



    INVESTMENT – Foreign direct investment inflows by non-resident investors stood at 2.3 billion euros in the first eight months of the year, according to data made public by the National Bank of Romania on Wednesday. As compared to July, FDI grew by 215 million euros. In the first eight months of 2014, the total value of FDI in Romania stood at 1.424 billion euros, by nearly one billion less than this year.



    ROMANIA-IMF – Talks continue in Bucharest between Government representatives and the IMF delegation to Bucharest. Yesterday the talks held at the Ministry of Finance in Bucharest approached such topics as the budget planning for 2016, the situation of state-owned companies, the manner the Government plans to use European funds over the next period and the implementation of structural reforms. The IMF has called for a budget deficit of 1% in 2016, but Romania wants a more robust and sustainable economic growth, according to Finance Minister Eugen Teodorovici. The draft budget for next year is the main topic on the agenda over the coming days, Teodorovici also said. The IMF technical mission to Bucharest will concluded on October 20.



    IRRIGATIONS – The Romanian state will spend 1.15 billion euros to repair its irrigation system. The Chamber of Deputies, the decision-making body in this case, adopted a draft law on Monday providing for the disbursement of the required funds. The Government says the modernization of the irrigation system is crucial for Romania, allowing for both the legal positioning of farmland and for attracting substantial European funds. The irrigation system will remain the states property and will be made available to farmers based on subscriptions. Agriculture Minister Daniel Constantin says irrigation costs would be cut significantly. The first instalment worth 145 million euros will be disbursed in 2016, while the draft budget for next year will include a detailed presentation of the states planned investments.



    SYRIA – American and Russian military representatives are today holding a new round of talks on air safety in Syria, in an attempt to reach an agreement on air safety protocol while carrying out uncoordinated air strikes in this country, the Pentagon announced on Tuesday. Talks follow in the context that each of the two countries is running air operations in Syria. While the US-led international coalition is targeting key positions of the Islamic State terrorist group in Syria and Iraq, Russia is being accused of supporting Bashar al-Assads regime and of carrying out ‘indiscriminate airstrikes, targeting the presidents opposition as well. US Secretary of Defence Ashton Carter has said that despite the political dispute over Syria, the United States and Russia must take action to ensure the safety of their pilots. Carter reminded that progress was reported in the previous rounds of talks, although leading to no clear agreement, Reuters reports.



    INVESTIGATION – Ukraine did not fully shut down air traffic over the Donbas region at the time of the crash of the Malaysia Airlines Flight 17, because no one ‘gave any thought of a possible threat to civil aviation, Ukrainian Foreign Minister Pavlo Klimkin announced at the United Nations. The explanation follows Tusdays publication of the final report into the circumstances of the crash of MH17 in July 2014 in the Donetsk region by the Dutch Safety Board. According to investigators, the flight was shot down by a BUK missile made in Russia, launched from a rebel-controlled region in Eastern Ukraine. Dutch officials have warned that Donbas air space should have been shut down, given that clashes between Government troops and pro-Russian separatists in the region. Although the report does not hold anyone accountable, its findings have been already dismissed by Russia, labelling the report as ‘biased. The tragic air crash at the time killed the 298 people on board, mostly Dutch citizens.