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Tag: social measures

Government prepares new social measures

The governments emergency order capping energy prices is debated by the Senates specialist committees. The document will most likely undergo changes, given that MPs from both the ruling coalition and the opposition have submitted a number of amendments. The leader of the Social Democratic Party Marcel Ciolacu gave further details about the areas to benefit from capped energy prices:

“We have already agreed changes for religious establishments, public services, water companies and transport companies and taking into account that the medicine prices are capped for companies making generic medicines. Unless we step in, those medicines will disappear from the Romanian market.”

The Save Romania Union in opposition proposes that prices be capped depending on consumption, taking into account current monthly levels and not last years. MP Cristina Prună:

“We proposed an amendment whereby the price is capped at 0.68 lei per kWh for the first billable 100 kWh, 0.8 lei per kWh for consumption between 101 and 255 kWh, and the price in the contract to apply for consumption exceeding 255 kWh.”

The Force of the Right Party, an opposition Liberal splinter group, is warning that one of the measures in the government order that needs to be changed is the return to a consumption ceiling of 300 kWh instead of 255 as the government has proposed.

The energy minister Virgil Popescu says the order also encourages energy saving. Referring to the excessive bills presented by the media, he said the situation must be verified by the relevant authorities. The final report on the government order will be made public next week, with the Chamber of Deputies having the decisive vote. In another move, the parties in the ruling coalition have agreed to extend fuel subsidies by the end of the year, Marcel Ciolacu has announced.

Labour minister Marius Budăi says his ministry has begun talks with social partners, employers and trade unions to increase the minimum wage from next year. This is the result of a directive adopted by the European Parliament regarding the minimum wage in the Union, under which member states are obliged to ensure decent living to their workers. The minister also said pensions may go up by at least 10% from 1st January next year. Concrete talks will be held when discussing next years budget, which the government plans to submit to Parliament in November. (CM)

21 September 2022
Social measures in Romania

Although there is a tendency to blame the economic and social situation in Romania exclusively on the conflict in neighboring Ukraine, the causes of the current problems that Romanians have to face are more numerous and go back to the distant past! Lets only remind of the two years of pandemic in which the economy stagnated more than it worked, other obstacles being the extension of the states of emergency or alert once every three months. And of the liberalization of the energy market, considered a hasty decision by some analysts, which had serious negative repercussions, especially on the most disadvantaged citizens. Inflation is breaking new records, and shops and agri-food markets have become, for some people, places for contemplating labels.

Considered one of the silent social strata of Romania, given their impossibility to intervene in any way to correct their material situation after a whole working life, pensioners from the public pension system have nothing to do but accept what the State offers them monthly, which, in many cases, is below the minimum necessary for a decent living. “Pensioners live on their pensions and it seems reasonable that the level of this pension should be adapted to the situation” said recently Romania’s president Klaus Iohannis, who added that it’s totally unfair to make only the pensioners pay the price of some crises.

However, the Romanian Government decided to grant pensioners with cumulated monthly incomes of less than 2,000 lei (about 400 euros) a single aid worth 700 lei (about 140 Euros). This aid will benefit only pensioners residing in the country, not those with a regular residence abroad, the Labor Ministry officials stated. On the other hand, the Senate, as the first notified chamber, adopted a governments emergency ordinance granting meal vouchers to all Romanians with low incomes: namely about 3 million citizens. The vouchers, worth about 50 Euros, will be used only for the purchase of basic food products. The postal distribution of the cards through which the financial aid will be granted will start next week, then the people will receive the promised money on the cards every two months.

If the senators of the ruling coalition welcomed the decision, those in opposition considered the amount as derisory, saying that, through this measure, the executive only gives back to the Romanians too small a part of the money it takes through taxes, prices for utilities, food and fuels. Nevertheless, all the MPs voted in favor of the decision. Finally, the Chamber of Deputies decided to increase the value of a meal ticket for employees from 20 to 30 lei, so as to compensate, at least partially, for the price hikes. The Chamber also agreed that childrens camps in the country may be paid for with the parents holiday vouchers. (LS)

9 June 2022
Social measures in Romania

Although there is a tendency to blame the economic and social situation in Romania exclusively on the conflict in neighboring Ukraine, the causes of the current problems that Romanians have to face are more numerous and go back to the distant past! Lets only remind of the two years of pandemic in which the economy stagnated more than it worked, other obstacles being the extension of the states of emergency or alert once every three months. And of the liberalization of the energy market, considered a hasty decision by some analysts, which had serious negative repercussions, especially on the most disadvantaged citizens. Inflation is breaking new records, and shops and agri-food markets have become, for some people, places for contemplating labels.

Considered one of the silent social strata of Romania, given their impossibility to intervene in any way to correct their material situation after a whole working life, pensioners from the public pension system have nothing to do but accept what the State offers them monthly, which, in many cases, is below the minimum necessary for a decent living. “Pensioners live on their pensions and it seems reasonable that the level of this pension should be adapted to the situation” said recently Romania’s president Klaus Iohannis, who added that it’s totally unfair to make only the pensioners pay the price of some crises.

However, the Romanian Government decided to grant pensioners with cumulated monthly incomes of less than 2,000 lei (about 400 euros) a single aid worth 700 lei (about 140 Euros). This aid will benefit only pensioners residing in the country, not those with a regular residence abroad, the Labor Ministry officials stated. On the other hand, the Senate, as the first notified chamber, adopted a governments emergency ordinance granting meal vouchers to all Romanians with low incomes: namely about 3 million citizens. The vouchers, worth about 50 Euros, will be used only for the purchase of basic food products. The postal distribution of the cards through which the financial aid will be granted will start next week, then the people will receive the promised money on the cards every two months.

If the senators of the ruling coalition welcomed the decision, those in opposition considered the amount as derisory, saying that, through this measure, the executive only gives back to the Romanians too small a part of the money it takes through taxes, prices for utilities, food and fuels. Nevertheless, all the MPs voted in favor of the decision. Finally, the Chamber of Deputies decided to increase the value of a meal ticket for employees from 20 to 30 lei, so as to compensate, at least partially, for the price hikes. The Chamber also agreed that childrens camps in the country may be paid for with the parents holiday vouchers. (LS)

9 June 2022
April 12, 2022 UPDATE

MEASURES – Romania’s Finance Minister,
Adrian Câciu, said that the package of social and economic measures announced
on Monday evening by ruling coalition leaders mainly targets the economy, maintaining
jobs, and supporting vulnerable people. The package is worth €3.5 billion. The
measures include the granting of €50 vouchers every two months for the purchase
of basic foodstuffs for low-income families and €30 vouchers for the more than
150,000 students who receive social scholarships. Vouchers can be used to
purchase food, school supplies and clothing. Other measures include a minimum
gross salary of 3,000 lei in agriculture and the food industry as well as money
for investments.

MEETING – The balanced, long-term
consolidating of NATO’s defense and deterrence posture must be accelerated,
Romania’s president Klaus Iohannis said on Tuesday following his meeting with
the Prime Minister of Belgium, Alexander De Croo. The president argued in favor
of a unitary, coherent and robust defense on the eastern flank in order to
ensure a more efficient deterrence, particularly in the Black Sea. Klaus
Iohannis said a Belgian military unit is currently deployed to Romania as part
of NATO’s Response Force and thanked Prime Minister De Croo for his support.
The Belgian official said Belgium and Romania are close partners in the EU and
NATO, and that Vladimir Putin’s war has strengthened these ties. NATO is here,
it is strong, and it is an organization we can rely on. Your border is our
border, and together we will defend it, Belgium’s Prime Minister also said.

UKRAINE – Ukraine’s Finance Minister, Serhiy
Marchenko, has called on the international community to provide immediate
financial support to allow Ukraine to survive the huge budget deficit generated
by the Russian invasion, Financial Times writes. The Ukrainian official painted
a rather grim picture of Ukrainian economy, estimating total losses sustained
by civilian and military infrastructure at some $270 billion. The coming period
will be crucial for Ukraine, Western officials say, since Russian troops are
resupplying and redeploying. On the other hand, the White House expects even
greater atrocities in Ukraine committed by the Russian troops under the command
of General Aleksandr Dvornikov, recently appointed commander of Russia’s
operations in Ukraine. Known as the Syrian butcher, Dvornikov
commanded the Russian forces involved in the Syrian civil war, when they
brutally bombed numerous civilian targets. The US and the UK are looking into
reports according to which chemical weapons have been used by Russian forces in
attacks on Mariupol, a strategic port city under siege for more than a month.
The Ukrainian Azov Battalion, barricaded in Mariupol, claims that a Russian
drone dropped a ‘toxic substance’ on soldiers and civilians in the area, saying
that several people reported respiratory and neurological problems. Over 10,000
civilians have been killed in Mariupol since the invasion began, Mayor Vadim Boychenko
announced.

REFUGEES – Over 72,000 people, of whom
8,350 Ukrainian citizens entered Romania on Monday, according to the Border
Police. Since the start of the Russian invasion, some 685 thousand Ukrainian
citizens have entered the country. On the other hand, the Romanian Red Cross
has assisted over 250 thousand people from Ukraine with information and
services in order to reconnect with their families. As part of its campaign
Humanity has no borders, the Red Cross has so far raised over €6.7 million.
Humanitarian activities will continue to address both Ukrainian citizens who
have reached Romania, as well as those who remained in Ukraine, the Romanian
Red Cross director, Ioan Silviu Lefter, has said.

CONFERENCE – EU Commissioner for Transport,
Adina Vălean, on Tuesday
attended a videoconference jointly with officials from Romania, the Republic of
Moldova and Ukraine. Transport Minister Sorin Grindeanu pointed out Romania
plays a key role in ensuring the flow of goods to Ukraine and the Republic of
Moldova, and thus is essential for the economy of the two countries. Since the
start of the invasion, Romania’s maritime, rail, road and air infrastructure
has provided vital transport routes for the transit of goods and raw materials,
Sorin Grindeanu argued. The Romanian official said enhancing the operational
capacity of the port of Constanța on
the Romanian Black Sea provides substantial support to the trading of goods to
and from Ukraine via the Republic of Moldova.

LIST – The Environment Ministry will
compile a list of deteriorated natural areas that will be rehabilitated under
the Recovery and Resilience Plan. The list will be elaborated jointly with the
European Commission and a number of NGOs, Minister Tánczos Barna said after
Tuesday’s meeting with EU Commissioner for Environment, Virginijus Sinkevičius,
held in Bucharest. Talks also focused on measures required to stop illegal
logging in natural protected areas. (LS & VP)

12 April 2022
April 4-8, 2022

Romania supports Ukraine

Ukraines president, Volodymyr Zelensky, on Monday addressed Romanian Parliament by videoconference, as he did the parliaments of other countries since the start of the Russian invasion. Prior to the keynote addresses, senators and deputies marked a moment of silence in memory of the Ukrainians who lost their lives during Russias military aggressions. “Ukraine is not the last target of Russian aggression. Defending the liberty of Ukraine means defending the security of Europe”, president Zelensky said, thanking Romanians for assisting Ukrainian refugees. “There are grounds for closer relations between our people, allowing for the full protection of our national minorities, the Romanians in Ukraine and the Ukrainians in Romania”, the Kyiv leader pointed out. Mondays message in the Romanian Parliament came as the atrocities of Bucha were revealed to the whole world. In this context, Romania declared ten representatives of the Russian Embassy in Romania personae non grata. According to the Romanian Ministry of Foreign Affairs, the decision comes in response to the horrendous crimes in Bucha and other towns and villages in Ukraine, “for which Russia bears responsibility”. NATO Foreign Ministers met in Brussels on Thursday, and agreed to strengthen their support for Ukraine, including by providing this country with new military systems. The NATO Deputy Secretary General, Mircea Geoană, said the war in Ukraine is now entering a new phase, as Russian troops are regrouping in order to launch a new attack to occupy Donbas and southern Ukraine. Romanias Foreign Minister, Bogdan Aurescu, reiterated Bucharests position with respect to the need to secure more powerful defenses on the eastern flank in order to ensure a higher degree of deterrence, particularly in the Black Sea region. On the other hand, the Deputy High Commissioner for Operations of the UN Agency for Refugees, Raouf Mazou, paid a visit to Siret border checkpoint on Wednesday, where he was given an overview of the activity. The UN official praised the implication of everyone working on the Romanian-Ukrainian border.

Support for the Republic of Moldova

Germany, France and Romania on Tuesday co-chaired an international conference devoted to creating a support platform addressing the Republic of Moldova. The initiative stipulates a financial package worth some €695 million, as well as political support to the Republic of Moldova in the context of the war in Ukraine. Europes poorest country, Moldova right now has the highest refugee per capita rate in the region. Romanias Foreign Minister, Bogdan Aurescu, said the government is preparing an additional non-reimbursable financial assistance package for Moldova worth €10 million. According to Minister Aurescu, Moldova should receive financial support in the long run in order to overcome the effects of the energy crisis.

Protests and social measures in Romania

This week 35 trade federations from the private and public sectors have staged protests in Romania. Unionists call for the implementation of support measures that should offset the economic and social fallout of the war in Ukraine. They have also called for measures to ensure the countrys energy and food safety, amidst the soaring prices for electricity, gas and fuel. Ruling coalition leaders have analyzed the final form of the package of economic and social measures designed to protect the population and the economy from the effects of the crises facing Romania. The plan stands at some €3.5 billion, of which the EU will cover some €1.4 billion.

Interim Minister of Investments and European Projects

President Klaus Iohannis this week signed the decrees taking note of Dan Vîlceanus resignation from the position of Minister of Investments and European Projects and appointing Marcel-Ioan Boloș, the acting Minister of Research, as interim minister in the position left vacant. Dan Vîlceanu also resigned as Secretary General of PNL, after the party leader, Florin Cîțu, also stepped down following pressure from local branches of the Liberal Party. The election of a new president is scheduled for Sunday, as part of an extraordinary party congress, to be attended by some 1,300 Liberals from across the country. Prime Minister Nicolae Ciucă has submitted his candidacy, saying his goal is to strengthen the party and prepare for the upcoming election.

Elena Udrea sentenced to six years in prison

Former Minister of Tourism, Elena Udrea, was arrested on Thursday in Bulgaria, close to the Greek border, after Bucharest authorities issued an international arrest warrant in her name. Udrea was supposed to be taken in custody early that day, after the Supreme Court ruled against her appeal, thus sentencing her to six years in prison in the “Bute Gala” investigation, where she was indicted for bribe-taking and abuse of office. Elena Udrea was one of the close associates of former president, Traian Băsescu. In late March, the High Court of Cassation and Justice gave a final ruling in the latters case, deciding that Băsescu had worked for nearly 10 years as an informer for the Securitate, the secret police agency of the communist regime. (VP)

9 April 2022
Social measures starting January 1

The Romanian Government on
Wednesday passed bills stipulating the increase of pensions and child benefits.
Without them, the budget for next year couldn’t have included the increases PSD,
PNL and UDRM pledged to implement in the governing program. Starting January 1,
five million pensioners will receive an additional 10% to their pensions. The
pension point will go up to some 320 Euro. Child benefits will also get an
increase. Children up to 2 years old and those with disabilities will receive 120
Euro, while children up to 18 years of age will receive 50 Euro. According to
the bills adopted on Wednesday, the government will also introduce the 13th
allowance for people with disabilities.

Social-Democrat Labor Minister Marius Budăi
admitted the measures will also trigger an increase in the purchasing power,
but says it will offer protection considering the latest price hikes. The
increase in the price for natural gas and electricity and other utilities and
products has boosted the inflation rate to nearly 8%. Analysts don’t rule out
the possibility the inflation might exceed 9% next year. The Government is also
considering a third emergency decree for granting a special allowance to people
with low pensions starting next month. The measure will address two and a half
million pensioners who will see their pensions increased to 440 Euro. Overall,
the impact of the measures will be tantamount to 3.2 billion Euro. It is a
considerable strain on the 2022 budget, so there won’t be enough funds for
other salary increases in the public system.

According to the emergency decree
published by the Ministry of Finance, base salaries, military pays, allowances
and bonuses awarded to public sector employees will not be increased net year
so as to avoid putting additional strain on public spending. The highly
controversial special pensions will also be frozen, while special pensions
awarded to mayors will be awarded starting 2023. PSD leader, Marcel Ciolacu,
says the decision was taken at the level of the ruling coalition. Ciolacu told
a television station that the state has accrued considerable debt, equal to 50%
of GDP. In turn, PNL leader, Florin Cîțu, warned that the budget deficit should be kept
below 5.84% of the GDP, while investments should be maintained at 7%, in
compliance with the governing program. (VP)

16 December 2021