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Tag: special pensions

Former MPs in Romania keep their special pensions

In late June, Romania’s Parliament was proudly announcing that the senators and deputies, with a large majority, voted – wanting to set an example – to eliminate their own special pensions, in the context in which Romania undertook, under the NRRP, to abolish those pensions benefiting only some occupational categories. The vote has a special significance for the entire political class, said back then the president of the Liberals, Nicolae Ciucă. And the Social Democrat Alfred Simonis was stressing that it was a first step towards the reform of all special pensions: we don’t tax them, we don’t reduce them, we simply eliminate them. We repeal both those that are in payment and those that could have enter payment, if it were not for this law, said with conviction Alfred Simonis from the Parliament’s rostrum.

Parliament had also adopted a similar normative act in the not too distant past, but a decision of the Constitutional Court prevented its implementation. Something that has happened again now! After the resounding announcement made in June, at the end of November, comes another one from the same Supreme Court – former senators and deputies can keep their special pensions, and Parliament has the power to eliminate them only for the future. The CCR judges reasoned that, until their abrogation, special pensions were a legal right granted to elected officials who exercised at least one full parliamentary term by the date of reaching retirement age, otherwise, by withdrawing and eliminating these pensions the integrity and substance of an acquired legal right would have been affected. Consequently, ex-parliamentarians with a full mandate until the adoption of the law will continue to receive special pensions.

There are about 850 beneficiaries, out of the more than 200,000 Romanians who collect special pensions, the parliamentary opposition has stressed, recalling that, in Romania, there are some occupational categories whose pensions are not based exclusively – as in the case of all other pensioners – on the contribution to the state social insurance fund throughout their professional activity. Which is why most Romanians associate parliamentarians, magistrates, soldiers, police officers, diplomats or aviators with members of privileged castes. The dust in the eyes is gone, the special pensions are back, writes the press in Bucharest, after the Constitutional Court’s decision, qualifying it as unpopular for several reasons. Any special pension paid to distinct categories divides society. Then, while in the case of the magistrates or the military it is possible to discuss the existence of reasons for a distinct regime, motivated by risks or restrictions, in the parliamentarians’ case there is no such thing. (MI)

29 November 2023
August 8, 2023 UPDATE

Trial. Several gendarmes, including the former leadership of the Romanian Gendarmerie, were sent to court in the “August 10 Case”, 5 years after the violence reported during the diaspora protest of August 10, 2018 in Bucharest. They are accused of abusive behavior or complicity in this crime. The military prosecutors say that the management of the Gendarmerie at that time ordered their subordinates to intervene with force to disperse the protesters. The actions of the defendants led, according to the investigators, not only to restricting the freedom of assembly and the right to physical and mental integrity of the demonstrators, but also to physical suffering or injuries that required medical care. The prosecutors also say that the gendarmes acted not only against the people who demonstrated violently, but also against the peaceful demonstrators who constituted the vast majority of the protesters. More than 300 participants in the protest that brought together thousands of Romanians are demanding moral and material damages in this case. The case will be tried at the Bucharest Military Court. In this context, the Declic Community has called on the court to judge this case urgently, considering that there are only three years until the statute of limitations comes into force, and the culprits could escape punishment. The members of the Declic Community have also announced that they will demonstrate in Bucharest on Thursday, August 10, to demand justice for the victims of the abuses and violence committed by gendarmes in 2018.

Pensions. The Romanian MPs are expected to interrupt their summer holidays and resume activity in order to amend the special pensions bill, after some provisions have been deemed as unconstitutional, the countrys Prime Minister, Marcel Ciolacu, has said. Ciolacu told a private TV channel the requests made by the constitutional judges would be discussed in Brussels between the Romanian authorities and the European Commission representatives. Ciolacu has pledged to fly to Brussels this month to renegotiate several provisions in the countrys National Recovery and Resilience Plan as well as the budget deficit target of 4.4%. The government in Bucharest would like to agree with the EC on a target of 5% of the GDP. The Prime Minister has explained that in the absence of a plan on curbing budget expenses and raising incomes, the budget deficit would exceed 6.2%, which might prompt the EU to cut its funds for Romania.

Pilots. 100 Romanian pilots, who in the past four months defended the NATO air space over Lithuania, have returned home. There were many situations in which Russian Sukhoi warplanes were flying dangerously close to the NATO airspace and the Romanian pilots were sent to intercept those planes. The Romanians worked together with their colleagues from Portugal and NATO is permanently deploying air-force personnel and aircraft to that country as Lithuania doesnt have its own fighter jets. Moreover, the area is notorious for the bold attempts of the Russian pilots to violate the NATO airspace. 16 years ago Romanian pilots were also involved in air policing missions in Lithuania on their upgraded MIG-21 LanceRs.

Support. Romania is ready to offer specialized assistance and support to the National Armed Forces of the Republic of Moldova, an ex-soviet, Romanian-speaking country, Romanias National Defence Minister, Angel Tilvar, said in Chisinau during the talks he held on Monday with his Moldovan counterpart, Anatolie Nosatîi. The Moldovan servicemen have recently received from Romania Kevlar helmets, bullet-proof vests and all-terrain vehicles. The donation is part of Romanias ongoing efforts to support the upgrading and streamlining of the defence structures in the neighboring state. According to a press release by the Defence Ministry in Bucharest, the two officials have also tackled aspects concerning the latest developments in the regional security caused by the aggression war Russia is presently waging on Ukraine, with emphasis on the situations caused by the latest bombing of Ukraines ports on the Danube close to the borders with Romania and the Republic of Moldova.

Investment. In the county of Hunedoara in western Romania, the new owner of the Mintia thermal power plant presented a one billion Euro investment plan. It is the largest investment made in the energy system in Romania. The thermal power plant was sold by the Romanian state to a Jordanian group, and the new power plant will be ready by the end of 2026 and will produce 1,700 megawatts. Over 1,200 people would be employed during the construction period. The Thermal Power Plant in Mintia entered insolvency proceedings in 2019 and was put into conservation in the summer of 2021, due to the lack of necessary investments to be able to comply with the environmental regulations of the European Union. Energy Minister Sebastian Burduja now says it will be the most efficient power plant in Europe, with an efficiency of 64%.

Corruption. The former social-democratic finance minister, Darius Vâlcov, will be extradited to Romania to serve the 6-year prison sentence he was sentenced to in a corruption case. The Romanian Minister of Justice, Alina Gorghiu, announced that, on Tuesday, the Supreme Court of Cassation of Italy rejected the appeal submitted by Vâlcov to the ruling of Court of Appeal in Naples, which had previously ordered the extradition of the politician. Darius Vâlcov fled from Romania to Italy to escape the execution of the sentence he received for influence peddling and money laundering. Italy is the European country where several Romanian citizens have found refuge in an attempt to escape the sentences imposed most of the time in corruption cases.

Festival. The 24th edition of the international festival Enescu and World Music started on Tuesday in the resort of Sinaia, in central Romania. The program includes concerts hosted by the local casino, the city museum, the George Enescu Memorial, the Dimitrie Ghica park and the Catholic church. According to the organizers, this festival is devoted to young performers and orchestras, in particular winners of national and international contests. The event is also devoted to the famous Romanian artists who are involved in the process of training the young generation of musicians, as part of this Romanian project. The festival is due to end on August 31. (MI)

8 August 2023
The Week in Review 26.06 – 02.07.2023

Laws on sensitive topics adopted by Parliament

The Romanian Parliament dedicated this past week of the ordinary session to some bills related, in one form or another, to pensions. On Monday, senators and deputies eliminated the special pensions granted to MPs, thus renouncing a privilege considered immoral by the press and public opinion. Two other sensitive laws were passed on Wednesday. One puts a ban on cumulating pensions with salaries in the public system but exempts from this ban exactly the local elected officials and parliamentarians, which makes the bill controversial. Other professional categories exempted from the rule are the teaching staff and the specialized medical staff, foster carers, as well as employees of the Romanian Academy, the National Bank of Romania and some national agencies. The law that aims to reform the special pensions, which are only partially based on the contribution from the active period and which benefit magistrates, the military, diplomats, parliamentary staff, the Court of Accounts staff or the aeronautics staff, also received a favorable final vote. However, the bill underwent major changes. Actually, the application of the reform was postponed by five years, so that, until 2028, prosecutors, judges and the military can retire under the same conditions as before. The retirement age will increase in stages, and magistrates will be required, in order to retire, to have at least 25 years of experience in the specialty. Pensions that exceed the average net income will be taxed by 15%. The opposition Save Romania Union – USR, which favors the total elimination of special pensions, voted against the bill, claiming that, after its adoption, there will be 210,000 special pensioners in Romania as before. The High Court of Cassation and Justice contested the constitutionality of the law on special pensions and the one on cumulating pensions and salaries in the public system. The reform of the special pensions is a milestone in the National Recovery and Resilience Plan.

The National Recovery and Resilience Plan – PNRR, positive assessment

With 49 milestones and targets met, out of a total of 51, Romania successfully passed the European Commission’s test regarding the second payment request submitted under the National Recovery and Resilience Plan, worth 3.22 billion Euros. The two milestones that were not met are related to energy investments, and because of failing to meet these two targets, Bucharest will lose approximately 53 million Euros. However, nothing is irreparable, because Romania still has 6 months to prove that the two pending milestones have been met. Prime Minister Marcel Ciolacu says that the Commission’s positive assessment encourages the government to work to meet the targets, and he promises that the two delayed milestones in the energy field will be quickly recovered. Romania benefits from an allocation of over 29 billion Euros for the implementation of the National Recovery and Resilience Plan and has already collected two pre-financing installments with a cumulative value of approximately 3.8 billion Euros.

New European aid for farmers

Romania will receive 30 million Euros from the European Commission as support for farmers affected by massive imports of cheap grains from Ukraine. It is the second aid package, and the money comes from the Union Reserve Fund. Of the five EU member states that have a border with Ukraine or are in its vicinity, Poland and Romania benefited from the largest aid packages: Poland, almost 40 million Euros and Romania 30 million Euros. Cumulatively, packages one and two bring Romanian farmers a support of 40 million Euros, and the Romanian Government has the Commission’s agreement to double it.

Preparations ahead of the NATO summit in Vilnius

Leaders of NATO member states and the NATO Secretary General Jens Stoltenberg convened in the Hague for a meeting focusing on the preparation of the upcoming allied Summit, to be held in Vilnius in mid-July. Romanias president Klaus Iohannis also participated in the event. In the Netherlands, Iohannis reiterated that Russia is and will still be the immediate and the most direct threat to Euro-Atlantic security. Consequently, he insisted that the allies will have to be capable and ready to strengthen their position even further and continue to give the required support to Ukraine and to the most vulnerable partners, the Republic of Moldova, in particular. Given its strategic position, Romania is especially interested in further strengthening the Alliances Eastern Flank, through a coherent and unitary approach, Klaus Iohannis also stated. This means, according to him, providing the required forces, structures, capabilities and equipment, as well as the appropriate command and control arrangements. As regards Ukraine, if, in Bucharest, in 2008, the Allies decided that it should become a NATO member state, in Vilnius that commitment will have to be carried further, Klaus Iohannis said.

Culture and sport

The headline-grabbing event of the week is the International Theatre Festival in Sibiu, which has now reached its 30th edition. Throughout the festival, the central Transylvanian town, still bearing the hallmark if its Saxon heritage, is literally sizzling. Thanks to the Radu Stanca theatre halls, the unconventional spaces, the churches, squares and medieval streets, Sibiu has yet again been the generous host of performing arts. Thousands of artists and hundreds of events literally galvanized the festival, held under the sign of the ‘Miracle, the theme picked for the recently-held edition.

In sport, the headline-grabbing event this week has been the hearing of the Romanian tennis player Simona Halep by the court judging the doping charges pressed against Halep in October 2022. The past months have been long and costly for the career of the athlete who will be 32 in September. Halep no longer has a place among the worlds top 50 tennis players since she could no longer take part in tournaments. Halep, the former WTA number 1 and two-time winner of a Grand Slam tournament, will receive a final court ruling in July. (LS, EN)

1 July 2023
June 28, 2023 UPDATE

European Council — The Romanian President, Klaus Iohannis, is participating, on Thursday and Friday, in Brussels, in the summer European Council meeting. According to the Presidential Administration, the meeting will begin with a working lunch with the NATO Secretary General, Jens Stoltenberg, an opportunity to discuss the challenges and common approaches at the level of the two organizations in the context of Russias aggression against Ukraine. Later, during the working sessions, European leaders will debate, among other things, the situation in Ukraine, the need to maintain strong European support for this state at all levels, as well as the implementation of sanctions and the continuation of efforts to hold Moscow accountable for the crimes committed. Previously, President Klaus Iohannis was in The Hague at a small-scale meeting dedicated to the preparation of the NATO summit in Vilnius next month, attended by representatives of seven allied states from the eastern and northern flanks.

Special pensions – The Romanian Senate adopted, on Wednesday, the draft law on the reform of the special pension system in the form previously approved by the Chamber of Deputies. The document refers to the pensions of magistrates, soldiers, diplomats, parliamentary officials, Court of Accounts or aeronautical personnel. The bill provides, among other things, for a gradual increase in the retirement age from 60 to 65 years, a minimum of 25 years of experience in the specialty so that magistrates can benefit from a special pension and the taxation by 15% of the sums that exceed the level of the average net salary. The reform of special pensions is not only an obligation assumed by Romania through the National Recovery and Resilience Plan – PNRR, but also an outstanding debt to the Romanians – said the representatives of the coalition made up of the PSD-PNL, who argued that the imbalances in society must be eliminated, and the rules must be the same for everyone. From the opposition, Save Romania Union – USR criticized the bill, for the lack of real reform, and the Democratic Union of Ethnic Hungarians on Romania – UDMR appreciated that the parliamentarians failed to be braver and eliminate special pensions, but that the adopted law represents an important step to create a fair and equitable system. We remind you that, on Monday, the Romanian Parliament also adopted a bill regarding the elimination of the special pensions of senators and deputies. The reform of the special pension system is a milestone in the PNRR.

Deficit – Romania’s budget deficit went up to 2.32% of the GDP after the first five months of the year, from 1.72% at the end of April, the finance ministry said on Wednesday. Budget revenues stood at over 197 billion lei, up by 10.4%, while expenses amounted to 234 billion lei, up by 17.3%. This years budget is based on a budget deficit level of 4.4% of the GDP.

Moldova — The pro-Western President Maia Sandu remains the most popular political figure in the Republic of Moldova (an ex-Soviet state with a majority Romanian-speaking population), and her party, Action and Solidarity (PAS), would get the most votes in the event of early parliamentary elections — according to a study quoted by Radio Chisinau. If presidential elections were held next Sunday, almost 38% of the respondents would vote for Maia Sandu. The former pro-Russian president, the socialist Igor Dodon, would be voted by only 14.2% of the voters, and the current mayor of the capital, Chisinau, the ex-socialist Ion Ceban, would get 6.2% of the votes. The criminal fugitive Ilan Şor, who is in Israel and considered the main vector of Moscows interests in the Republic of Moldova, would get 2.5% of the votes. About 43.5% of the respondents said that they do not trust any political figure. In the case of the parliamentary elections, PAS would obtain 44.3% of the votes, the pro-Moscow Bloc of Socialists and Communists 21.5%, and the recently dissolved populist party of Ilan Şor – 13.6%. Almost 60% of the respondents were in favor of joining the European Union, while 37% would vote to join the Russian-controlled Eurasian Union. Joining NATO is supported by 33.4% of the respondents.

Court — The Constitutional Court of Romania rejected, on Wednesday, the notification of the Save Romania Union – USR (in opposition) and Forța Dreptei — the Force of the Right (Liberal opposition) in relation to the law amending the Criminal Code regarding the sanctioning of protests and established that the law, adopted by the PSD-PNL government majority, is constitutional. According to a press release, the Court says that increasing the special limits of criminal penalties and regulating some aggravated forms of crimes is the exclusive competence of the legislator, a responsibility that it exercises in accordance with the states criminal policy. The MPs of USR and Forţa Dreptei notified the judges of the Court, on the law amending the Criminal Code, after the sanctions regarding the disturbance of public order and became harsher.

Anti-corruption – In Romania, in the months of April and May 2023, in the corruption files dealt with by the National Anticorruption Directorate (DNA), 57 defendants were convicted, through 39 final court decisions, for crimes of taking and giving bribe, influence peddling, abuse of office or embezzling European funds. According to a press release issued by the DNA, the sentences ordered by the judges against the 57 defendants vary between 7 years and 4 months in prison and one year with the postponement of the punishment. Among those definitively convicted are: a minister, a secretary of state, a prosecutor, a public notary, a police officer, three city mayors, a director from the National Citizenship Authority, a director from the Mures Water Basin Administration (center), a manager of a Bucharest hospital and nine other civil servants. (LS)

28 June 2023
June 26, 2023

Pensions. In Bucharest, the Chamber of Deputies and the Senate have gathered in joint session to vote on the bill regarding the elimination of parliamentarians special pensions. The bill repeals the right to the allowance for age limit that deputies and senators benefit from according to previous provisions. The initiators of the document, representatives of the Social Democratic Party, which is part of the governing coalition, say that all legal requirements have been observed and it is an act of morality for senators and deputies to give up these revenues. The Association of former parliamentarians has announced, however, that it will challenge the bill in court, as it includes provisions similar to those of another law drawn up by the Social Democrats, declared unconstitutional by the Constitutional Court. By the end of the week, the last of the current session, a vote is also expected on the governments bill on reforming service pensions.

Budget. The budget correction could take place in August, the Romanian Minister of Finance, Marcel Boloş, has announced. He stated that, in this way, all the measures announced by the Bucharest Government will be able to enter into force on September 1. Regarding the impact these measures will have on the state budget, the minister said that an exact calculation has not yet been made. “This week will be dedicated to the analysis on the expenditure side and we will communicate the budgetary impact of these measures. The more measures of this kind we have, the better we can manage the issue of state budget allocations” Boloş pointed out. He also said that the elimination of parliamentarians special pensions and banning the aggregation of pensions and salaries will bring significant savings to the Romanian budget.

Foreign Affairs. The Romanian Minister of Foreign Affairs, Luminiţa Odobescu, is participating, today, in the meeting of the EU ministers of foreign affairs, which is taking place in Luxembourg. The heads of European diplomacy will discuss the situation in Ukraine, with an emphasis on recent developments, the situation on the ground and increasing support for that country. The Ukrainian Minister of Foreign Affairs, Dmitro Kuleba, will participate in the discussions via video conference. Minister Luminiţa Odobescu will emphasize the need to continue supporting Ukraine as long as it is necessary. At the meeting, the High Representative Josep Borrell, will address, among other things, the latest support measures for the Republic of Moldova, adopted at the level of the European Union.

Baccalaureate. In Romania, more than 130,000 high school graduates are taking the first test of the Baccalaureate today, the one in Romanian language and literature. Tomorrow they will be sitting the mandatory test of the profile, and on Wednesday the optional test of the profile and specialization. On Thursday, students who belong to national minorities will take another test, the one on Mother Language and Literature. This week will be announced the first results of the national assessment for students who graduated from the eighth grade. Due to the general strike in education, registrations for the National Assessment and Baccalaureate were extended until June 16.

Festival. The International Theater Festival continues in Sibiu (central Romania). One of the most anticipated plays in todays program is “Father”, with the famous Romanian actor Victor Rebengiuc (90 years old) in the leading role. Many of the events in the program are street events, and access is free. Visitors are welcome to enjoy theatre, music, dance and circus performances. “Romeo and Juliet” is also part of todays program, this time under the direction of the Russian Andriy Zholdak, who also signed the stage design, music, lights, video and script. Also Shakespeare, but “Macbeth/ A marriage made in hell” will be performed by band Tiyatro BeReZe from Turkey. Another production based on a classic text, ” A forced marriage” by Moliere, comes from the Ion Luca Caragiale National Satiricus Theatre, from the Republic of Moldova. The Juan Carlos Avecilla Flamenco Dance Company (Spain) participates in the festival with “Flamenco Fusion”, a show that concentrates the essence of the Spanish dance tradition. More after the news.

Swimming. Romanian swimmer David Popovici, a double world and European champion, won, on Sunday, the 200 m freestyle event of the 59th edition of the Sette Colli Trophy competition at Foro Italico (Rome), with a new competition record. On Saturday, Popovici also won the 100 m freestyle race, also with a competition record. This was the last check for the Swimming World Championships in Fukuoka, Japan (July 13-30), where Romania will be represented by David Popovici and Andrei-Mircea Anghel.

Weather. In Romania, the thermal regime today will be characterized by normal values, with highs ranging between 24 and 31 degrees Celsius. The weather continues to be unsettled locally in the south, south-west and in the mountains. The floods formed as a result of the heavy rains on Sunday caused significant damage and resulted in the death of one person. Most of the country is still under flood warnings. An orange code is active for rivers in the center, west, south, most of the east and southeast, and until tonight, at midnight, a yellow flood code is issued for most regions of the country. (MI)

26 June 2023
The Week in Review

Romanias Prime Minister, Marcel Ciolacu, and Foreign Minister, Luminița Odobescu, visited Chișinău

Romania supports the start of EU accession negotiations for the Republic of Moldova as soon as possible, the Prime Minister Marcel Ciolacu said on Wednesday in Chişinău, on his first foreign visit since he took office. He emphasized that the future of the Republic of Moldova is in the community bloc. The Romanian side showed availability to provide expertise to the Moldovan partners. In his turn, the Moldovan Prime Minister Dorin Recean thanked Romania for all the support given to the Republic of Moldova in the process of joining the European Union, as well as in the economic and social fields. He emphasized that the relations on the two banks of the Prut River are increasingly being strengthened through the construction of bridges, roads and energy networks. Dorin Recean mentioned the existence of nine projects for the second installment of the aid provided by the Romanian Government. They are worth 28 million Euros and are aimed at investments for the development of localities in the Republic of Moldova, the Moldovan PM said. Early this week, the Romanian FM, Luminița Odobescu, paid a visit to the Republic of Moldova, her first external visit since taking-over her mandate. She was received by the pro-Western president Maia Sandu and had discussions with her counterpart Nicu Popescu. The two emphasized the support which Romania offered to the Republic of Moldova, consisting in humanitarian aid, energy resources and support for increasing resilience. Last but not least, the Romanian FM said that opening the EU accession negotiations for the Republic of Moldova in the shortest possible time is a priority of Romania’s foreign policy.

Romanian magistrates protested, discontented with the prospect of being left without special pensions

Magistrates from several courts and prosecutor’s offices across Romania suspended their activity on Wednesday, showing discontent with the Governments intention to change the conditions under which they can obtain special pensions. Judges and prosecutors argue that changing the special pension scheme would violate the independence of the judiciary. The ruling coalition made up of the Social Democratic Party – PSD and the National Liberal Party – PNL wants to gradually increase the retirement age for judges and prosecutors up to 65 years, and for the pension to be calculated based on their income from several years, not just from the last year of activity. The Justice Minister, Alina Gorghiu, said that she respects the magistrates’ right to free expression, but insisted that dialogue, not protest, is the solution to any problem of the judicial system. The reform of the legislative framework regarding the special pensions scheme is a promise made to the European Union by the Romanian authorities under the National Recovery and Resilience Plan. On the other hand, on Thursday, the draft law on the abolition of special pensions for senators and deputies received a favorable opinion, gathering a majority of votes, in the specialized Parliament committee. The president of the committee, the Social-Democratic MP Eugen Bejinariu explained that, if unconstitutional elements of the bill are identified, other solutions will be found to reduce or eliminate the special pensions of parliamentarians.

Measures announced by the Romanian Government

The prices of some basic food products may decrease in the next period, the Prime Minister Marcel Ciolacu announced on Thursday. He claims that this decrease will not put pressure on Romanian producers. Marcel Ciolacu stated that he received a response from the large store chains regarding the scheme for reducing markup percentages. It is a list that contains basic foodstuffs such as bread, dairy products, meat, eggs, flour, corn flour, oil, vegetables and fruit. Also on Thursday, the Government discussed, in a first reading, the state aid scheme for Romanian producers of construction materials. In principle, the authorities want more materials produced in the country to appear on the internal market at competitive prices, which will lead to a reduced import of construction materials. Now, over 70% of the materials used are imported, and the Government wants to reduce this percentage. This years budget for the aid scheme could be 150 million Euros, but the Finance Ministry will have the final say. The Executive also approved the granting of emergency aid to support the population affected by floods, landslides and dangerous meteorological phenomena, up to the amount of 1.4 million Euros. Households in the center, south-west and south of the country were affected, this month, by heavy rainfalls. The support and intervention of the military firefighters was needed to remove the negative effects generated by the bad weather.

Development plan for gas deposits in the Romanian area of the Black Sea

OMV Petrom and Romgaz have approved the development plan for the Domino and Pelican Sud commercial natural gas fields in the Romanian area of the Black Sea. The National Agency for Mineral Resources is to confirm this plan. The investment amounts to 4 billion Euros for the development phase, and the total production will be 100 billion cubic meters, the equivalent of the annual demand for natural gas for 4.3 million households. According to the management of OMV Petrom, in 2027, the first amounts of gas are to be extracted through the Neptun Deep project, and Romania will become the largest producer of natural gas in the European Union. The project will last approximately two decades, and the revenues brought to the state budget will support Romania’s development. OMV Petrom states that the estimated revenues of the Romanian state would be 20 billion Euros. (LS)

24 June 2023
The Week in Review

Romanias Prime Minister, Marcel Ciolacu, and Foreign Minister, Luminița Odobescu, visited Chișinău

Romania supports the start of EU accession negotiations for the Republic of Moldova as soon as possible, the Prime Minister Marcel Ciolacu said on Wednesday in Chişinău, on his first foreign visit since he took office. He emphasized that the future of the Republic of Moldova is in the community bloc. The Romanian side showed availability to provide expertise to the Moldovan partners. In his turn, the Moldovan Prime Minister Dorin Recean thanked Romania for all the support given to the Republic of Moldova in the process of joining the European Union, as well as in the economic and social fields. He emphasized that the relations on the two banks of the Prut River are increasingly being strengthened through the construction of bridges, roads and energy networks. Dorin Recean mentioned the existence of nine projects for the second installment of the aid provided by the Romanian Government. They are worth 28 million Euros and are aimed at investments for the development of localities in the Republic of Moldova, the Moldovan PM said. Early this week, the Romanian FM, Luminița Odobescu, paid a visit to the Republic of Moldova, her first external visit since taking-over her mandate. She was received by the pro-Western president Maia Sandu and had discussions with her counterpart Nicu Popescu. The two emphasized the support which Romania offered to the Republic of Moldova, consisting in humanitarian aid, energy resources and support for increasing resilience. Last but not least, the Romanian FM said that opening the EU accession negotiations for the Republic of Moldova in the shortest possible time is a priority of Romania’s foreign policy.

Romanian magistrates protested, discontented with the prospect of being left without special pensions

Magistrates from several courts and prosecutor’s offices across Romania suspended their activity on Wednesday, showing discontent with the Governments intention to change the conditions under which they can obtain special pensions. Judges and prosecutors argue that changing the special pension scheme would violate the independence of the judiciary. The ruling coalition made up of the Social Democratic Party – PSD and the National Liberal Party – PNL wants to gradually increase the retirement age for judges and prosecutors up to 65 years, and for the pension to be calculated based on their income from several years, not just from the last year of activity. The Justice Minister, Alina Gorghiu, said that she respects the magistrates’ right to free expression, but insisted that dialogue, not protest, is the solution to any problem of the judicial system. The reform of the legislative framework regarding the special pensions scheme is a promise made to the European Union by the Romanian authorities under the National Recovery and Resilience Plan. On the other hand, on Thursday, the draft law on the abolition of special pensions for senators and deputies received a favorable opinion, gathering a majority of votes, in the specialized Parliament committee. The president of the committee, the Social-Democratic MP Eugen Bejinariu explained that, if unconstitutional elements of the bill are identified, other solutions will be found to reduce or eliminate the special pensions of parliamentarians.

Measures announced by the Romanian Government

The prices of some basic food products may decrease in the next period, the Prime Minister Marcel Ciolacu announced on Thursday. He claims that this decrease will not put pressure on Romanian producers. Marcel Ciolacu stated that he received a response from the large store chains regarding the scheme for reducing markup percentages. It is a list that contains basic foodstuffs such as bread, dairy products, meat, eggs, flour, corn flour, oil, vegetables and fruit. Also on Thursday, the Government discussed, in a first reading, the state aid scheme for Romanian producers of construction materials. In principle, the authorities want more materials produced in the country to appear on the internal market at competitive prices, which will lead to a reduced import of construction materials. Now, over 70% of the materials used are imported, and the Government wants to reduce this percentage. This years budget for the aid scheme could be 150 million Euros, but the Finance Ministry will have the final say. The Executive also approved the granting of emergency aid to support the population affected by floods, landslides and dangerous meteorological phenomena, up to the amount of 1.4 million Euros. Households in the center, south-west and south of the country were affected, this month, by heavy rainfalls. The support and intervention of the military firefighters was needed to remove the negative effects generated by the bad weather.

Development plan for gas deposits in the Romanian area of the Black Sea

OMV Petrom and Romgaz have approved the development plan for the Domino and Pelican Sud commercial natural gas fields in the Romanian area of the Black Sea. The National Agency for Mineral Resources is to confirm this plan. The investment amounts to 4 billion Euros for the development phase, and the total production will be 100 billion cubic meters, the equivalent of the annual demand for natural gas for 4.3 million households. According to the management of OMV Petrom, in 2027, the first amounts of gas are to be extracted through the Neptun Deep project, and Romania will become the largest producer of natural gas in the European Union. The project will last approximately two decades, and the revenues brought to the state budget will support Romania’s development. OMV Petrom states that the estimated revenues of the Romanian state would be 20 billion Euros. (LS)

23 June 2023
June 23, 2023

Food. The large chain stores in Romania have agreed, in the framework of the dialogue started with the Government, that they could voluntarily reduce the shelf prices of 10 basic food categories. The announcement was made by Prime Minister Marcel Ciolacu, but the discussions will continue. In order for the reduction to become a reality, either a voluntary agreement of the sellers or an emergency ordinance is being considered, but in both cases, the prime minister assures that the Executive does not want to put pressure on Romanian producers.

Pensions. The draft law on the abolition of the special pensions of Romanian deputies and senators received, on Thursday, a favorable report in the Committee on the status of parliamentarians. Parliamentary plenum debates on the bill will most likely start on Monday. Former Social Democratic MP Eugen Nicolicea, currently president of the Association of Former Parliamentarians, believes that the law has zero chance of passing the Constitutional Court, like other similar proposals. The president of the Committee on the status of parliamentarians, the Social Democratic deputy Eugen Bejenariu, says, however, that if elements of unconstitutionality are identified, other solutions will be found to reduce or eliminate special pensions. From the opposition, the Save Romania Union strongly supports the elimination of these pensions, as well as all other special pensions paid from the State budget that some professional categories enjoy.

Gas. The private company OMV Petrom and the national company Romgaz have announced that they will jointly invest 4 billion euros in the Neptun Deep gas field exploitation project, the largest in the Romanian area of the Black Sea. Thanks to this project, Romania would become the largest producer of natural gas in the European Union and secure its energy independence, said Prime Minister Marcel Ciolacu. According to him, the Neptun Deep project is the result of a good collaboration between state institutions and the private sector and will make Romania a long-term, predictable and substantial supplier of energy security.

Ukraine. Romania and the Republic of Moldova condemned the statements of the governor installed by Russia in the occupied Kherson region in southern Ukraine, who threatened that the Russian army could attack a bridge over the Prut River, in response to an alleged Ukrainian attack on one of the bridges connecting the continent and the Ukrainian peninsula of Crimea annexed by Moscow. The Ministry of Foreign Affairs in Bucharest has termed as unacceptable such statements addressed to the Republic of Moldova, but which also refer to a part of the territory of Romania, a member of NATO. Chisinau has summoned the Russian ambassador to the Republic of Moldova for explanations and is discussing the possibility of reducing the embassy staff to a presence that would ensure parity with the Moldovan diplomatic staff in Moscow. According to Chisinau, the measure will be taken because of the Russian authorities interference in the countrys internal affairs.

Immigrants. 43 foreign citizens were caught, this morning, while trying to leave Romania illegally, through the western border. They were hidden in a TIR truck driven by a Romanian, which was transporting parcels on the Romania-Hungary route. Verifications showed that the people hidden among the goods are from Bangladesh, Pakistan, India and Sri Lanka. The foreigners are being investigated for attempted fraudulent crossing of the state border, and the TIR driver for migrant trafficking.

Theatre. As of today, the city of Sibiu, in central Romania, is hosting the International Theater Festival. The theme chosen for this 30th edition is “Miracle”. The largest annual meeting of the performing arts proposes an agenda with over 800 indoor and outdoor events – theater in any form, dance, circus and music – in which around 5,000 artists and guests from 75 countries will participate. All outdoor performances are free. The festival has also kept the online section. There are 40 shows included in this category, which can be enjoyed by those who cannot make it to Sibiu. The official opening will take place with the show “A cathedral full of organs” from the “Saint Mary” Evangelical Cathedral in Sibiu. The International Theater Festival will end on July 2.

Football. Romania takes on, on Saturday, in Bucharest, the team of Ukraine, in Group B of the European Under-21 Football Championship, which it hosts together with Georgia. In the same group, Spain will play against Croatia. In the debut matches, the Under-21 national team was beaten 3-0 by Spain, and Ukraine beat Croatia 2-0. The final tournament takes place between June 21 and July 8 and brings together 16 teams, divided into four groups. Two are hosted by Romania, in Bucharest and Cluj-Napoca (north-west), and two by Georgia. In Romania, two quarter-finals and a semifinal will take place. The top three finishers qualify for next years Olympic Games in Paris. (MI)

23 June 2023
May 30, 2023

Strike. Last night, the Romanian Government presented a new and better offer to the teachers who, on Monday, entered the second week of their all-out strike. Teaching and auxiliary teaching staff were offered two bonuses of 2,000 lei (400 euros) each, in June and October. For the non-teaching staff, the offer was 1,500 lei, also in the form of bonuses. At the same time, the unions were promised the conclusion of an agreement with the parties in the governing coalition that would cover all the aspects to be included in the future salary law. The Governments offer was sent to teachers from all over the country, and a response from them is expected regarding the continuation or not of the strike. Today, in the capital, teachers are holding a march. They want to call on the president of the country, Klaus Iohannis, himself a teacher, to get involved in finding a solution to their demands, especially the salary related ones. Last week, over 10 thousand Education employees participated in a rally in front of the Government headquarters. Meanwhile, the strike is particularly affecting final year students, who fear they wont be able to sit their exams on time.

Protests. In Romania, prison police officers are starting to protest. They stand against the increase of the retirement age to 65 years, as they claim that the life expectancy of employees in the system is 62 years. Today, they are wearing white armbands at work, and for tomorrow a temporary interruption of the activity for two hours is announced in several units across the country. Court clerks too have announced that they plan to join the protests started by the other categories of public employees. On Monday, hundreds of employees of the national Railways Company organized a protest rally. They accuse the continuous degradation of working conditions and the fact that there is no salary scheme in the company to stimulate performance and increase the efficiency of the employees. Trade unionists from the medical sector have also started a calendar of protests. Their claims concern the application of the provisions of the salary law to all employees, with reference to the categories of staff that have the lowest incomes, the granting of vacation vouchers and the modification of the calculation system for increments, night shifts and food allowances. More on this after the news.

Pensions. The Romanian Chamber of Deputies is to decide the final form of the bill amending the special pension law. Today, parliamentarians from the labor committee are analyzing the amendments submitted on Monday by the leaders of the PSD-PNL-UDMR governing coalition. The changes were requested by the European Commission, so that Romania could benefit from European funds, as the reform of special pensions is a milestone in the NRRP. According to the new amendments, the standard retirement age is correlated with the public pension system, in order to eliminate exceptions. For diplomats and court auxiliary personnel, the standard retirement age will increase to 65 years. The same principle will apply to military personnel, gradually, until 2035.

Syria. The National Committee for Emergency Situations, convened on Monday by the Prime Minister of Romania, Nicolae Ciucă, approved the granting, free of charge, of humanitarian aid to Syria. It is intended for the population affected by the major earthquake produced on the territory of Turkey on February 6, which caused casualties and big material damage in Syria as well. The support is granted based on the humanitarian assistance request initiated by Damascus through the European Civil Protection Mechanism. The Romanian state, through the National Administration of State Reserves and the Romanian Patriarchate, will send basic goods, food, medical devices and shelter items. The transport will be carried out by air, with the support of the Ministry of Defense.

Forum. The Romanian – Ukraine Bilateral Chamber of Commerce is organizing today, under the auspices of the Embassy of Ukraine in Bucharest, the “Rebuilding Ukraine” forum. The event is attended by government officials from the two countries, as well as representatives of Romanian companies that want to get involved in the reconstruction of Ukraine. Also, the project includes the organization of an annual conference, a forum and an exhibition.

UNITER. The UNITER Gala, which awards the best Romanian theatrical productions, will take place on June 12, in Timișoara, with a new concept, specially created for the city in the west of the country, which holds the title of Cultural Capital of Europe, the organizers announce din a press conference on Monday. In the preamble, between June 7-10, three of the best shows of 2022, nominated for the UNITER awards, will be presented: “Oedipus King” of the “Marin Sorescu” National Theater in Craiova (south), “Antonin Artaud. The Cenci Family” of the “Vasile Alecsandri” National Theater in Iasi (east) and “Seaside Stories” of the Constanta State Theater (south-east). The performances will be followed by interactive question-and-answer sessions with the audience. (MI)

30 May 2023
March 29, 2023 UPDATE

Education – In Bucharest, the education draft laws were approved in the government meeting on Wednesday and are to be debated and adopted in Parliament, in an emergency procedure. The line minister, Ligia Deca, stated that the documents brought together the desiderata and vision of society as a whole with regard to education in the run up to 2030. She gave some examples of changes to the law, such as centering the educational system on the student, stimulating the potential that each child has and accompanying this potential from early education to adulthood. Another desideratum would be to increase the quality and level of functional literacy. Ligia Deca also said that the lessons learned as a result of the successive crises of the recent years were also included in the two laws.

Protest – Two Romanian trade union federations on Wednesday staged a protest outside the government headquarters, unhappy with the salary scheme in this sector. They demand urgent solutions to enhance the incomes of the auxiliary teaching staff and overtime pay for the teaching and auxiliary staff. The federations also demand the application of the regulations on the payment of bonuses for working conditions, saying that the education employees are the only category of public employees that does not benefit from such bonuses. Similar protests were held last week around the country. Trade unions say they are planning a protest rally in Bucharest in May and even warn of a general strike unless the government finds solutions to the problems of the employees in the education sector.

Pensions – The Senate has passed a bill on the reform of special pensions, with 79 MPs voting in favor and 37 against. After intense discussions, the bill was approved on Tuesday by the specialist committees, who only accepted the amendments proposed by the parliamentary majority. One of the changes refers to an additional tax of 15% on the special pensions exceeding the gross average salary. Also, special pensions can no longer exceed the incomes obtained before retirement, and beneficiaries cannot receive both a salary and a pension. Around 200,000 people currently benefit from special pensions, of whom 170,000 are former defense and public order employees. Romania has 7 categories of special pensions, including those of magistrates, military and diplomats. Yearly budget expenses connected to special pensions amount to some 2.4 billion Euros. Former magistrates have the highest pensions, even amounting to some 3,600 Euros a month, ten times more than the average state pension. Changing this pension system is a requirement laid down in the National Recovery and Resilience Plan and failure to make the change may lose Romania almost 3 billion Euros of EU funding.

Natural gas – EU energy ministers have decided to extend by another year the recommendation to cut natural gas use by 15%. The measure was initially proposed after the start of the war in Ukraine in an attempt to reduce dependence on Russian gas. According to the Swedish presidency of the EU, thanks to this recommendation, European gas use dropped by almost 20% from August to January. The reduction in consumption also contributed to a drop in prices, said the EU officials.

Drill — Sea Shield 2023, the most complex NATO military training exercise planned and conducted by the Romanian Naval Forces this year, continued on the Black Sea shore. An evacuation exercise took place on Wednesday, in which the forces involved manage a situation of illegal transport of refugees by sea. Romanian and Bulgarian ships participated. About 3,400 soldiers and representatives of several institutions from the national defense system, as well as from 12 allied and partner states, are participating in Sea Shield 2023. (CM, LS)

29 March 2023
March 27, 2023

Visit – The President of the European Council, Charles Michel, is coming to Bucharest today, where he will meet the President of Romania, Klaus Iohannis. On Tuesday, according to the official schedule, Charles Michel will go to the neighboring Republic of Moldova, which has a majority Romanian-speaking population. The visit takes place after last weeks summit in Brussels, following which the EU member states’ leaders reiterated their support for the Republic of Moldova, for its security and European path.

Moldova – The interim president of the Romanian Senate, Alina Gorghiu, and the president of the Chamber of Deputies, Marcel Ciolacu, are paying a visit to the neighboring Republic of Moldova today. They will participate in cultural events dedicated to the 105thanniversary of the Union of Bessarabia, an eastern province that was, until then, under the occupation of the tsarist empire, with the Kingdom of Romania, on March 27, 1918. In 1940, Bessarabia, as well as the north of Bukovina and Herța Land, were re-annexed, following an ultimatum, by Stalin’s Soviet Union. The current Republic of Moldova, independent since 1991, was established on part of the eastern Romanian territories occupied by Moscow. In Bucharest, the Prime Minister Nicolae Ciucă said, on the occasion of the Day of Bessarabia’s Union with Romania, that “history teaches us that military aggression, illegitimate domination and discrimination of nations cannot last. Proof thereof is the aspirations of the peoples, including the Romanian people, to live freely, in a dignified, united and democratic way”.

Pensions – The juridical and labor committees of the Romanian Senate are debating, today, the Governments draft law on the reduction of special pension expenses. The project aims to reduce expenses with special pensions and allowances, a milestone included in the National Recovery and Resilience Plan (PNRR). The changes proposed by the Government refer at the calculation of special pensions starting from seniority in the respective specialty, the reduction of the calculation percentage relative to the earned income, the minimum contribution period being similar to that applied in the public pension system. The deadline for tacit adoption in the Senate is March 31.

Tennis – The Romanian tennis player Sorana Cîrstea qualified for the round of 16 of the WTA 1,000 tournament in Miami (Florida), which has total prizes worth 8.8 million dollars, after beating the Czech Karolina Muchova, 7-5, 6-1. She had won both previous matches with Cîrstea. Today, in the round of 16, the Romanian player will meet another player from the Czech Republic, Marketa Vondrousova. The score of direct matches between the two is 1-1.

Bystroe – The Romanian Foreign Minister, Bogdan Aurescu, is expected, today, in the Chamber of Deputies in Bucharest, for the political debates within the so-called Government Hour. The representatives of the extremist, ultra-nationalist opposition party the Alliance for the Union of Romanians – AUR requested his presence in order to give explanations regarding the file of Romania’s Schengen accession as well as to detail Bucharest’s diplomatic efforts in relation to the situation of the Bystroe canal, on that part of the Danube Delta located in neighboring Ukraine. On Friday, the Transport Minister Sorin Grindeanu said that Romania was still waiting for the approval of the Ukrainian authorities to begin depth measurements on the canal with Ukrainian ships. Since 2014, the Ukrainians have wanted the Chilia arm and the Bystroe canal to be included in a European transport corridor, but Bucharest and Brussels are opposed to it, because of the impact the works would have on the ecosystem of the Danube Delta, a unique area in Europe included in the UNESCO world heritage. Last month, the Ukrainian Infrastructure Ministry announced that, following some alleged dredging works, the depth of the canal increased from 3.9 to 6.5 meters.

Library – The National Museum of Romanian Literature (MNLR), in partnership with the Ministry of Foreign Affairs and Carol I Central University Library in Bucharest, is organizing, today, the first edition of the Day of European Authors. This is an initiative of the European Commission, which is meant to strengthen the relationship between the book and education sectors, aspiring to reconnect European citizens, especially the young generation, to reading and to help them discover European literature, and Europe’s linguistic and cultural diversity. The European Commissioner for Innovation, Research, Culture, Education and Youth, Mariya Gabriel, will officially launch this initiative in Sofia, together with the renowned Bulgarian writer Georgi Bardarov, the winner of the European Union Prize for Literature in 2021. The National Museum of Romanian Literature invites the public to a meeting with two of Romania’s highly appreciated authors, recognized at the European level through numerous awards, the writer and journalist Gabriela Adameșteanu and the Franco-Romanian writer, poet and playwright Matei Vişniec, to discuss the diversity of European literature and the status of the European author. (LS)

27 March 2023
The Liberal Party and the Social Democratic Party set their priorities

A comfortable parliamentary majority, of around 70%, which the so-called grand government coalition in Bucharest enjoys, would presuppose a flawless functioning of both the executive team and the partnership between the parties making up the coalition – the Social Democratic Party – PSD, the National Liberal Party – PNL and the Democratic Union of Ethnic Hungarians in Romania – UDMR. However, things are not going smoothly in the coalition. A protocol signed between the parties provides that, at the end of May, the social democrat Marcel Ciolacu will take the place of the liberal Nicolae Ciucă at the helm of the Government, and the latter will take over the presidency of the Senate, a position now filled, on an interim basis, by his party colleague Alina Gorghiu.

The PNL, Ciucă says, supports full compliance with the protocol agreed with all the members of the coalition, which involves rotations both at the leadership of the Government and at the level of some ministries, and considers a possible renegotiation of the portfolios inappropriate. On the other hand, the Social Democrat Marcel Ciolacu would like the PSD to keep the ministries where his colleagues have performed well, such as the Transport or Finance ministries. To start these discussions and debates, which are time consuming, four months before the rotation takes place, from my point of view is useless replies the liberal prime minister, who announces that, in the next period, an evaluation of the results of each minister will take place.

The Liberal ministers will also be evaluated within an internal working group, which will also draft the party’s strategy in the run up to the 2024 election year, marked by local, European Parliament, legislative and presidential elections. Until then, the Liberals consider the adoption of the education laws as a priority, which is part of the presidential project Educated Romania, launched almost a decade ago by the head of state and the de facto leader of the PNL, Klaus Iohannis, and not completed even today.

The PNL also announces that in the parliamentary session that starts on Wednesday, it will also focus on the adoption of bills regarding the so-called special pensions, which do not respect the contribution principle, and on increasing the threshold for taxing pensions from 2,000 lei (the equivalent of about 400 Euros) to 3,000 lei.

Equally, the number one priority for the PSD, President Ciolacu claims, is the issue of special pensions, and the party wants to find the constitutional form for this issue to be solved once and for all in Romania. The fulfillment of the milestones set out in the National Recovery and Resilience Plan, agreed by the decision-makers in Bucharest and those in Brussels, is also essential for the Social Democrats, because access to European funds depends on it.

The more rigorous taxation of large companies, the reduction of labor taxation and a package of measures for the reduction or elimination of the VAT on basic food products are other promises launched by the PSD at the beginning of the parliamentary session. All these measures need, however, to also be approved by PNL and UDMR. And the political analysts in Bucharest are reticent about saying that they will also be adopted. (LS)

31 January 2023
December 28, 2022 UPDATE

PENSIONS – The Government of Romania on Wednesday passed a decree
on reforming the special pensions awarded to certain categories of
professionals such as magistrates, military, diplomats or employees of the
Court of Accounts. Labor Minister Marius Budăi explained that the main
provisions include adjusting the base calculation percentage used for
calculating pensions from 80% to 65% of income, taking into account only
permanent sources of income and making sure no pension exceeds the total
income. Depending on each category of professionals, the minimum seniority
period required in the field of activity will go up or the minimum subscription
level will match that in the public system. The Labor Minister gave assurances
that talks with the World Bank and European partners will continue. When the
document is submitted for debate in early February, all provisions will be
clear, the Romanian official said. Reforming the special pension system is one
of the objectives the government committed to achieve under the National
Recovery and Resilience Plan by the end of this year. Also on Wednesday, the
government announced it would introduce additional taxes for energy companies
that reported high profits in the recent period marked by the crisis. The draft
law stipulates a 60% additional tax on large profits reported this year by
companies and refineries in the oil, natural gas and coal sectors. State
Secretary with the Finance Ministry, Mihai Diaconu, explained that the tax will
apply to any source of income that exceeds the average of profits in the last
four years by over 20%.

POLL – The latest poll conducted by INSCOP on the performance
of Romanian political parties indicates that two of the three parties in the
ruling coalition, namely the Social Democratic Party and the National Liberal
Party, lost percentages in December, while the nationalist Alliance for the
Union of Romanians, in opposition, grew by 2%. The poll conducted in December
indicates that the Social Democrats lost almost 5%, but is still ahead in
voting intentions, with 31.5%. The Liberals are in second place with 20.2%,
followed by the Alliance for the Union of Romanians, with 18.1%, and the Save
Romania Union, also in opposition, with 10.9%. The junior partner in the ruling
coalition, the Democratic Union of Ethnic Hungarians in Romania, maintains its
usual percentage of 5% which would allow it to enter Parliament. The INSCOP
experts say the data were collected both before and after Romania’s bid to join
the Schengen free-movement area was rejected, on 8th December. The
INSCOP director Remus Ştefureac said the data showed a zigzag performance by
the parties, with no clear, predictable trends yet for 2024, when presidential,
parliamentary, local and European elections will take place in Romania.

DEFICIT -
Romania’s budget deficit reached 4.2% of the GDP in the first 11 months of the year,
according to the Finance Ministry, a 0.5% drop compared to the same period of
2021. The deficit target for 2022 is 5.8% of the GDP.

POWER PLANT – Mass Global Energy Rom, a company based
in Jordan, has become the owner of the Mintia thermal power plant in Hunedoara County,
in central Romania, after making the final payment of over 80 million euros as
established after it won a tender held in August. The new owner promised that
in the next three years, the plant would see an extensive development process,
with investments of over 1 billion euros and the creation of new jobs.

ACCIDENT – One of the two Ukrainians who went missing in the
Maramureş Mountains, in north-western Romania, was found dead by a local
resident. The border police and mountain rescue services had resumed searches
on Tuesday only to abandon them again owing to difficult weather conditions. On
Saturday, a group of six Ukrainians called the emergency number saying they
were stranded at an altitude of 1,800 meters. They had been trying to cross the
mountains from Ukraine into Romania. Four were rescued by the Romanian rescue
services. Another is still missing. After Ukraine was invaded by Russia on 24th
February, Kyiv declared a general mobilization and ordered the martial law,
which bans men aged between 18 and 60 from leaving the country, with many
trying to do so illegally. (VP)

28 December 2022
Wave of retirements in the justice system

Romania’s
Justice Minister, Cătălin Predoiu, has warned the speculation in the public
sphere regarding the so-called special pensions that don’t observe the
contribution principle, may disrupt the activity of courts of law and
prosecutors’ offices, as many magistrates might choose to mass-retire. In the
last days alone, 65 retirement requests were submitted to the Superior Council
of Magistracy (CSM). The applicants include a few sonorous names, such as a CSM
judge, Gabriela Baltag, the head of the former Special Section investigating
Crime in Justice, Adina Florea, or Felix Bănilă, the former head of the
Directorate Investigating Organized Crime and Terrorism (DIICOT).

Minister
Predoiu met with representatives of the top institutions in the field, giving
assurances that the government is currently not examining any project aimed at
modifying the current legislation in the justice system. Any such project, the
Romanian official argued, will have to undergo a number of steps prior to its
adoption, and the Ministry will issue an opinion only after ensuring
magistrates stay independent and the justice system will remain efficient.
Pensions are a constituent of the magistrates’ status, Cătălin Predoiu went on
to say. The Justice Minister called for public responsibility when debating the
issue, including from magistrates. Concerns spiked after the World Bank
finalized its plan for reforming the pension system in Romania, also suggesting
that current pensions should observe the contribution system, by scrapping any
privileged categories exempted from this rule.

Additionally, the World Bank
wants all special pensions to be capped at the level of income reported during
magistrates’ term in office, while the retirement age of magistrates should be
the same as for any other public worker. Pension reform is a top goal under the
Recovery and Resilience Plan, which the authorities have agreed upon with EU
representatives and which should be completed by the end of the year. In a
country with some five million pensioners receiving the equivalent of some 400
EUR every month, the issue of special pensions, which in some cases are ten
times higher, can produce social and political unrest, while lawmakers are
doing little to remedy such anomalies. Government spokesman Dan Cărbunaru says
that any modifications the government is considering to implement in the
pension system, including with regard to the retirement age, will not be
implemented abruptly lest they should cause disruptions. As regards the
milestone regarding special pensions the government must fulfill as part of its
commitments at EU level, Dan Cărbunaru said a special task force was created at
government level, with Labor Ministry specialists conducting analyses and
consulting with the World Bank. (VP)

3 November 2022
MPs regain their special pensions

The Constitutional Court declared
unconstitutional the law whereby the special pensions of MPs were eliminated.
Court judges did not discuss the merits of the law, but merely ruled against
the procedure whereby the bill was passed. Although it was not officially
launched, the bill was swiftly passed through Parliament, in a single day,
which would allegedly impact the democratic character of the state, the Court
argued. The ruling follows after 70 former MPs who lost their special rights
regained them in court in several tribunals across the country. In February
2021, Parliament adopted the bill tabled by PSD on the elimination of special
pensions for senators and deputies, to the detriment of another two similar
initiatives submitted by PNL and USR. The only party that abstained at the time
was UDMR, which labeled the bill a populist and contentious law, saying that
all special pensions should be eliminated.

The Social Democrats reacted to the
Court’s ruling, reiterating their support for the original bill, adding they
would table the bill as many times as the Court deems it necessary. In turn,
USR believes the ruling is a shameful blow given to all Romanians who need a
lifetime of honest work to contribute to the pension system and who strive to
make ends meet. USR says it awaits the motivation of the Court, considering
that at the time the bill was passed, the Ombudsman identified no elements of
unconstitutionality.

Approximately 820 former MPs who benefited from these
special pensions before will receive their financial rights for the last 15
months, during which time payments had been suspended. The list includes former
Prime Ministers Adrian Năstase, Petre Roman or Teodor Stolojan. Additionally, a
number of Constitutional Court judges also received the special pensions,
including the current Court president, Valer Dorneanu. The special pension
received by a Romanian member of parliament ranges between 400 Euro, for short
terms over 1990-1992, after the collapse of the communist regime, and as much
as 2,400 Euro for MPs who served three times. Approximately 10,000 people
benefit from special pensions, half of whom are magistrates, according to the
National Pension Authority. These pensions add to those received by military,
policemen, secret service employees, whose special allowances are paid by the
Ministries of Defense and the Interior. 4,452 judges and prosecutors receive
special pensions, the highest of which stands at some 4,000 Euro. (VP)

6 May 2022