Tag: subsidies

  • Social unrest early in the year

    Social unrest early in the year

    The year 2023 was marked by social
    unrest, which culminated with the strike of the teachers, an event that nearly
    compromised the end of the school year in Romania.


    2024, an election year in Romania’s European
    democracy started off even more abruptly with large-scale protests by local
    farmers and transporters, which disrupted traffic close to Romania’s major
    cities also causing tensions in the country’s medical system.


    Truck drivers have called for a cap to
    the mandatory vehicle insurance RCA in Romania and the elimination of double
    taxation, as well as for measures of easing traffic at border checkpoints and acknowledging
    the economically strategic importance of the road transport sector.


    In turn farmers say they are forced
    to producing at higher costs and selling at lower prices. They have called for
    the urgent payment of subsidies, compensations for the losses they incurred due
    to imports from Ukraine and the reintroduction of customs duties for goods
    imported from that country. Their representatives have also called for credits
    with subsidized interest of maximum 2% and updated state subsidy to diesel
    excises.


    After long talks with the
    representatives of a farmer association, the executive agreed to the urgent
    payment of subsidies, compensations for their losses caused by imports from Ukraine,
    subsidized credits and updated state subsidy for the diesel excise in
    agriculture. Romania’s Prime Minister Marcel Ciolacu earlier told a TV station
    that 99% of the farmers’ claims were solved and gave assurances the Ukrainian
    grain is no longer sold in Romania, mainly after an agreement between the two
    countries was concluded.


    As concerns the transporters, talks
    are underway on the mandatory vehicle insurance and the diesel excise. However,
    he explained that Romania cannot afford any more bankrupted insurance companies
    and the risks posed by capping the RCA at a price the insurance companies
    cannot afford. Ciolacu has pledged solutions to all the claims made by the
    professional transporters but has also drawn attention to the risks posed by
    blocking the economy through the aforementioned protests. In another
    development, the Prime Minister has given assurances that no family clinic will
    be closed down and the value of the subsidized medical services for this
    category is under negotiation. The head of the Romanian government has also pleaded
    for balance between the wages of physicians from the cities and rural areas.
    Disgruntled with the funds the authorities have earmarked to a series of
    medical services, family physicians and employees of the specialized ambulatory
    care facilities have commenced a series of protests. Their viewpoint has been
    backed by the trade unions in the field, which say that trimming the budget of
    the family medicine clinics will have a bad effect on the entire healthcare
    system.


    (bill)

  • September 29, 2023

    September 29, 2023

    Notification — The Save Romania Union — USR and the Force of the Right, in opposition, intend to notify the Constitutional Court today about the coalition (PSD-PNL) governments taking responsibility for the package of fiscal-budgetary measures. The two parties claim that there are numerous violations of the fundamental law in the government’s document. The USR leader, Cătălin Drula, claims that principles of fiscal responsibility were allegedly violated. Moreover, the notification to the Constitutional Court will also include the observations of the experts of the Justice Ministry regarding the Governments measures, which minister Alina Gorghiu would have ignored when she issued a favorable opinion for the legislative proposal, Catalin Drula said. Initially, the opposition evoked a censure motion, and today is the last day when they could submit it, but it is unlikely that they will be able to collect the required number of signatures.



    Conference — The Speaker of the Romanian Senate, Nicolae Ciucă, is participating also today in the Conference of Presidents of Parliaments from the 46 member states of the Council of Europe, organized in Ireland, Dublin. On the eve, he had said that populism harmed democracy and endangered the civil rights of all. According to the Romanian Senate Speaker, in the context of the war on Romania’s border, the role of national parliaments in the reconstruction of Ukraine and the challenges to representative democracy in unstable times are topics of great interest for Romania, as an EU and NATO member country. He also spoke about Romanias role in supporting neighboring Ukraine, from where more than five million refugees came



    Meeting – The Romanian Foreign Minister, Luminiţa Odobescu, is participating, today, in the meeting of the heads of diplomatic missions from the EU member states accredited to Bucharest, organized by the Spanish Presidency of the Council of the EU. On the eve, the Romanian FM took part in the opening of the second edition of the international Euro-Atlantic Forum for Resilience, with the theme Resilience at Sea and its Impact on Land. She emphasized the relevance of the Black Sea region in the context of the Russian Federations war of aggression in Ukraine, a region with a special geopolitical significance, located at the epicenter of this conflict. Minister Odobescu stated that Romania acted and will continue to act in coordination with the neighboring states and strategic partners, so as to facilitate the transit of Ukrainian agricultural products through the Romanian ports.



    Gas – Natural gas and electricity tariffs on the Romanian market will continue to be subsidized until the end of March 2025, the National Energy Regulatory Authority -ANRE announced. Thus, Romanians will pay 68 bani (13 euro cents) per kilowatt for a monthly consumption of up to 100 kilowatts, 80 bani (16 euro cents) for a consumption range of 100-255 kilowatt, 1.3 lei (26 euro cents) for a consumption between 255 and 300 kilowatts, and for what exceeds 300 kilowatts – 1.3 lei for the entire amount. In the case of gas, the price for one kilowatt/hour will not exceed 31 bani (6 eurocents). The ANRE representative, Valeriu Steriu, stated that this measure brings predictability and is “a safety net” for the population and industrial consumers. He showed that the total amount reimbursed by the Romanian state to the energy companies that applied the capped price scheme, was almost 21 billion lei (about 4.2 billion euros) two weeks ago. Meanwhile, the Transgaz National Company announced that it has already stored an amount of gas that exceeds 96% of the total storage capacity. (LS)

  • May 8, 2023

    May 8, 2023

    LONDON Thousands of street parties are
    going to take place today in Britain to mark the coronation of King Charles
    lll. The country’s Prime Minister Rishi Sunak was among those hosting a
    coronation lunch with the guests including Ukrainian families, youth groups and
    US first lady Jill Biden. Churches and local communities are going to stage events
    devoted to this occasion in public gardens and parks. A special concert to be
    held at Windsor Castle will bring together artists like Lionel Richie, Katy
    Perry or the band Take That. Thousands of public buildings will see lasers and light
    projections to celebrate the coronation tonight. King Charles and Queen Camilla
    have conveyed a message of gratitude for the support shown by the Britons
    during the coronation procedures.








    ORDINANCE An emergency ordinance on curbing public spending is to be endorsed
    by the government in Bucharest this week after being assessed by the ruling
    coalition, Romania’s Prime Minister Nicolae Ciuca has announced. Finance
    Minister Adrian Câciu is expected to present today the coalition leaders with
    the concrete measures on cutting budget expenses, which also include hiring
    freeze in state institutions after May 15th. In another development,
    the head of the Executive says that no increased taxes will be levied on private
    sector employees. And the same public message was delivered by the leader of
    the co-ruling PSD, Marcel Ciolacu who added that he doesn’t give up on the
    measure of cutting special pensions. The law will be subjected to public
    debates and be approved by the Executive later on.






    CYBERSECURITY As of this week Bucharest will be hosting the headquarters of a
    major EU agency, the European Centre for Cyber Security, which is to protect
    the economy and population from cyber attacks, support research in this field
    and help European enterprises to develop their cyber-security capabilities. The
    aforementioned agency will be cooperating with a network of national centers in
    the EU countries. Romania’s Prime Minister Nicolae Ciuca and Roberto Viola, Director-General
    of the European Commission’s Department for Communications Networks, will be
    attending the inauguration event. In December 2020, EU representatives chose Romania
    to host the aforementioned center among the other applicants like Belgium,
    Germany, Spain, Luxembourg, Poland and Lithuania. Bucharest’s trump cards
    included the high-speed Internet it uses, the centre’s exemption from various
    taxes and duties and the fact that this city hadn’t hosted any European agency
    until that time.






    SUBSIDIES
    Romania’s Agriculture
    Minister Petre Daea says that the greengrocers who are still using toxic
    substances will have their subsidies cut. The statement came upon an
    investigation which proved that many farmers put on sale vegetables, which had
    been sprinkled with toxic substances with a concentration up to 8 times higher than
    the limit approved. The minister says the authorities will be monitoring the
    farmers benefitting from support through national programmes for the greenhouse
    cultivation of vegetables so that no more non-compliant vegetables may reach
    the market. The police have conducted many searches in the counties of Buzau
    and Ilfov, in southern Romania, where they found hundreds of containers with
    chemical substances from Turkey whose concentrations proved to be higher than
    those admitted by the EU legislation. The greengrocers used these substances to
    ripen vegetables faster and sell them on the market for higher prices. According
    to police sources, in some cases these toxic vegetables were sold as organic products.




    (bill)

  • Clashes over energy price caps

    Clashes over energy price caps


    The price of natural gas went up 30% in Europe on Monday, after Russia announced that North Stream deliveries would remain suspended indefinitely.



    In Amsterdam, where natural gas reference prices for the continent are set, quotes moved over EUR 270 per MW/h. This spring, following the Russian invasion in Ukraine, they reached a record-high EUR 335 per MW, news agencies mentioned.



    The EU is looking at options to cap energy prices. Starting with Germany, which announced a EUR 65-bln package, European governments are deciding to channel large amounts into household support schemes.



    So does the coalition government in Bucharest, which resolved to extend the price cap and subsidy programme for natural gas and electricity until next August. But a new outlook shifts the financial burden of these measures to companies in the energy sector, which will be subject to additional taxes. Moreover, brokers that re-sell energy for very high prices, thus taking advantage of the energy crunch, according to the government, will be fined 5% of their turnover.



    The head of the Smart Energy Association, Dumitru Chisăliţă, believes the deadline for enforcing last weeks government order is very short and may severely affect the activity of corporate consumers:



    Dumitru Chisăliţă: “Most industrial consumers and even households have made plans, budgets, have signed contracts. Interfering mid-game, just ahead of winter, and ruining all these plans, will in my opinion bring many consumers to their knees and force them to downsize operations or even close shop.”



    The former energy minister Răzvan Nicolescu, on the other hand, argues that the new measures may reduce speculation:



    Răzvan Nicolescu: “Being able to order fines of up to 5% of turnover for those who trade energy for speculation purposes is a good thing. The fact that stakeholders have been striving for months to find a solution for their own consumption, for distribution and transport, is again, in my opinion, a good thing. And introducing a principle according to which all those who obtain undue benefits in these times should be penalised is a good thing.”



    Save Romania Union, in opposition, criticised the government order, arguing that it would destroy the energy sector and the economy. The party tabled a simple motion against the energy minister Virgil Popescu, at the very start of the new parliamentary session, which makes it its third attempt to dismiss the line minister so far. (A.M.P.)


  • Measures to subsidize fuel prices

    Measures to subsidize fuel prices

    The government
    in Bucharest on Thursday passed a bill for 0.5 RON subsidies
    from the budget and fuel suppliers per liter of fuel. The decision was made for
    citizens and companies to pay less on fuel, given the latest price spikes in
    this commodity. The measure is valid
    for the next three months and at the end of this period, the government is
    expected to analyze a new set of measures if need be.




    The government admits however that the
    concrete implementation of the bill might be delayed for a while until suppliers
    have updated their fiscal procedures. Moreover, the measure isn’t compulsory,
    as fuel suppliers can choose whether to cut prices by 0.25% or not. However,
    the Romanian Minister of the Economy, Virgil Popescu has given assurances that
    the big chains of suppliers will apply the measure.




    At the same time, authorities have pledged to monitor
    fuel price evolution in the months of July, August and September and to sanction
    any new hike under the ordinance of combating speculation. On the other hand, according
    to state secretary with the Finance Ministry, Mihai Diaconu, the measure to
    subsidize fuel will not increase the budget deficit.




    According
    to our estimates, the calculated impact of the 0.25% subsidy will be offset by
    the fact that swollen prices would have dampened consumption. Lower consumption
    would mean lower excise returns, and in principle we believe these could be
    offset. The measure will boost the economy Diaconu went on to say.




    He added that according to the Finance Ministry estimates,
    state expenses will stay around 800 million lei, which will be added to the
    other 800 million lei the suppliers aren’t going to pay as they will be offset
    by their taxes and duties. The impact would have been bigger had the prices
    gone higher, says Diaconu explaining the Ministry sought to find a simplified
    mechanism to offset these subsidies granted to enterprises.




    Within 15 days since the endorsement of the ordinance, through
    an order by the ANAF president, fuel suppliers will be made available a model
    of application. Then the subsidy will be applied according to their fiscal
    duties, the VAT, corporate tax, etc.
    We estimate that the offset will be done on the VAT side, Diaconu added.


    (bill)

  • February 20, 2021

    February 20, 2021

    BUDGET The government of Romania passed the state budget and social security budget bills for this year, and the fiscal-budgetary strategy for 2021-2023. The budget is based on a 7.16% of GDP deficit target, a 2.4% annual inflation rate and on roughly 680-euro net average salaries. The Liberal PM Florin Cîţu said the budget pushes for the restructuring of state-owned companies this year, and voiced hopes that Parliament will endorse the bills as soon as possible. He also mentioned that the amendments to be tabled by MPs should not exceed the targeted budget deficit and must make clear where the funds would come from. The Supreme Defence Council approved the draft budgets of public institutions in the national defence and security field.



    VACCINE The national COVID-19 vaccination programme continues in Romania. According to the Vaccination Coordination Committee, nearly 1.3 million doses have been used on close to 770,000 people since the start of the programme on December 27. Most people received the Pfizer vaccine, and some others doses produced by Moderna. As of this week, the AstraZeneca vaccine is also available in Romania. Meanwhile, over 2,700 new SARS-CoV-2 cases were reported in the country in the past 24 hours, the Strategic Communication Group said on Friday. Of a total of 7,000 COVID-19 patients currently hospitalised, some 950 are in intensive care. The total number of cases reported so far in Romania is nearly 775,000, 90% of whom have recovered. The death toll stands at over 19,700.



    ROMA The president of Romania Klaus Iohannis emphasised today, in a special message for the Roma Emancipation Day, the importance of eliminating prejudice and discrimination, which he said are “much too common in respect of Roma access to education. He mentioned that the emancipation of Roma slaves 165 years ago, had a major role in the evolution of the profile and values of Romanian society in mid-19th Century, paving the way for the country to embrace European modernity. The head of state also said that for the Roma, the hundreds of years of slavery left “deep and hard to heal scars. He explained that the 1856 emancipation was a major challenge for the Romanian society as a whole. The president also called for discouraging and punishing hate speech and all racist, anti-Semitic, chauvinistic behaviours.



    PROTESTS Pupils and students are protesting in Bucharest today the scrapping of full subsidies for railway transport. They will be picketing the head offices of the Liberal Party and the USR-PLUS Alliance in power, and the government headquarters. The organisers say these austerity measures hit the most vulnerable youth, and the government sacrifices students mobility access for political purposes. They also oppose possible compromise attempts coming from politicians that seek to soften the students reactions to this measure.



    CONFERENCE “America is back, the US president Joe Biden said repeatedly attending his first international event. On Friday he took part in the Munich Security Conference, held online. Joe Biden explained that NATO is the foundation of trans-Atlantic security, that the US is fully committed to the Alliance, and he welcomed Europes growing investment in the military capabilities that enable shared defence. Joe Biden also warned that competition with China is going to be tough, but voiced confidence that a united Alliance can win this race. As regards Russia, he said Moscow weaponised corruption and tried to undermine Europe by targeting individual states. The German chancellor Angela Merkel said Europe and the US need a shared agenda on China and Russia, adding that the latter is the cause of hybrid conflicts. She also noted that there was scarcely any progress in restoring Ukraines sovereignty after Crimea was illegally annexed. On the other hand, the French president Emmanuel Macron only mentioned a need for dialogue with Russia.



    PANDEMIC The EU is stepping up procurement of coronavirus vaccines, after large-scale criticism for the slow start of the vaccine rollout. The EC president Ursula von der Leyen said she wanted the agreements signed with vaccine producers to give the EU access to serums tailored to fight the new variants. She added the EU antifraud agency is helping member states to identify counterfeits sold in the black market. According to worldometers updates, over 111 million people have caught the virus and at least 86 million have recovered. The global death toll stands at over 2.4 million. (tr. A.M. Popescu)

  • July 20, 2020

    July 20, 2020

    SUMMIT The EU leaders convened in Brussels to carry on negotiations on a post-crisis economic recovery plan, in one of the largest EU summits in 2 decades. According to European sources, a new plan will be presented to the 27 delegations, proposing 390-billion euro subsidies. This is a substantial decrease from the 500 billion euro stipulated in the original plan of the European Commission and rejected by the Netherlands, Austria, Sweden, Denmark, and Finland. The initial plan was worth a total 750 billion euro, with 250 billion euro in loans and 500 billion in subsidies. Attending the summit, the president of Romania Klaus Iohannis said intensive talks are held within the European Council with respect to the conditions for granting the amounts, with some Member States pleading for more relaxed conditions and others for strict control by the Council or the Commission. He also added that many states agreed to make the allotment of funds conditional on compliance with the rule of law. Klaus Iohannis said that the rule of law is not a problem in Romania and he is not against such conditions.



    AIR FORCES Ceremonies have been held today, in a low-key form in keeping with the coronavirus containment measures, to celebrate the Day of the Romanian Aviation and Air Forces. PM Ludovic Orban attended an event in Bucharest, where he thanked all professionals in the field for their work, courage and professionalism. 15 military aircraft flew over the Air Heroes Monument in Bucharest, where a religious service was also held.



    COVID-19 Romania reports a total of over 38,100 COVID-19 cases, with 681 new infections confirmed in the last 24 hours, the Strategic Communication Group announced today. The total number of deaths caused by SARS CoV-2 has reached 2,038. Nearly 22,700 patients have recovered, accounting for 60% of the total number. Abroad, 5,215 Romanian nationals have tested positive for the virus, with the death toll standing at 122. The health minister Nelu Tătaru said he was concerned with peoples disregard for health protection measures at the seaside and in the mountain resorts where many Romanians are on holiday. He does not rule out reducing the working hours of outdoor restaurants and bars, which are highly popular in Romania at this time of the year.



    PARLIAMENT The Parliament of Romania is working this week as well in a special session. The agenda of the Senate includes a citizen initiative under which convicted criminals are no longer allowed to hold public office. The bill has already been endorsed by the Chamber of Deputies, but has been pending on Parliaments agenda for over a year.



    CRISIS In Bulgaria, the COVID-19 crisis overlaps a political crisis, with Parliament scheduled to discuss today an anti-corruption motion initiated by the Socialist Party and backed by the ethnic Turkish party. The vote will most likely be held on Wednesday. Meanwhile, anti-corruption protesters are set for a new week of rallies, demanding the resignation of PM Boiko Borisov and of prosecutor general Ivan Gheshev, whom they see as working with the organised crime networks in Bulgaria.



    PANDEMIC The total number of coronavirus infections worldwide passes 14.6 million, with the death toll in excess of 600,000, according to worldometers.info. The US and Brazil remain the worst hit countries, and the global daily rate of new cases is still on the rise. The scientific coordinator of the World Health Organisation (OMS), Soumya Swaminathan, said researches into the coronavirus genome started in January and great progress has been made so far. The WHO is currently testing over 20 vaccines, and the chances of all of them failing are rather slim, Soumya Swaminathan added. She explained that a vaccine might be available as of early next year, with hopes for mass production and distribution in mid-2021. Oxford Universitys coronavirus vaccine, which is apparently already being slated for production by a pharmaceutical company, is in the most advanced stage in Europe. Amind growing tensions between the UK and Russia, the British foreign secretary Dominic Raab accused Russia of attempting to steal information used by the coronavirus vaccine researchers, while the Russian Ambassador to London, Andrei Kelin, dismissed the accusations.


    (translated by: Ana-Maria Popescu)

  • The Development of Romanian Village

    The Development of Romanian Village

    Food chains and local markets are poorly developed, and the selling prices of such produce are way below the manufacturing costs.


    That is why many people leave their villages and move to cities or abroad, leaving behind their elderly. The poor ones live on welfare. Access to education is scarce, too, and the school dropout rate is three times higher in rural areas than in urban areas. Subsidy and semi-subsidy farms are not properly equipped and are not market-oriented. Also, they are not at all involved in cooperation activities, which would give them better access to markets. Therefore, living in Romanias villages still translates into living in poverty.



    A debate has been recently held in Bucharest, titled ‘The Integrated Development of the Rural Environment in Romania, launching a national dialogue platform aimed at identifying the main means of developing the Romanian village. The Deputy Prime Minister Vasile Dancu, who is also Minister of Regional Development and Public Administration, who attended the talks, says that Romania needs a national strategy to protect its rural civilization.



    Vasile Dancu: “I was born in the countryside and I grew up there where only 2% of the children manage to complete their higher education. Usually, its the foreigners who come and warn us that our traditional village is dying, that an entire civilization is dying. The problem is that we lack the ability to organize and develop on our own. Romanias joining the EU was a lethal blow to the Romanian peasant, because the EU agricultural complex came and hit us like the Soviet tanks. All of us who go back home for holidays know that very well. We have laws under which Romanian products should be present in all supermarkets, but nobody observes these laws. We have wonderful control mechanisms, but nobody observes that either. A Dutch man once told me that we own the last rural civilization in Europe, and we should protect it. Europe is trying to help us, but that falls on deaf ears.



    Achim Irimescu, Minister of Agriculture and Rural Development, has talked about what the development of the Romanian village should mean, and whether its modernization would still maintain some of the traditions and simple way of living that so many of us, born in the countryside, are so familiar with.



    Achim Irimescu: “Funding means modernization. But modernization is not only about maintaining the idyllic village, as I know it from when I was a boy and I would go back home on top of the hay stack carried by a wagon. Therefore, I believe that the main challenge today is to establish a real strategy for the rural areas. The problem is that, since the 1990s, there have been many strategies, but none of them able to provide what we really want. Lots of funding might lead us to European effectiveness and performance, and at the same time drive us away from the village that we are imagining or dreaming about. We need rural infrastructure, which means 4 wheel-drive, tractors, no more horses, therefore no more horse-driven sleighs in the winter, a dying biodiversity…It is true that everybody wants a better life, but this will take us away from the village that we are trying now to preserve.



    Theres something else Romanian villages are facing, the youngsters migration to other countries or to towns across Romania. A meager 6% of the total number of farmers are young people. That is why, through the National Rural Development Program 2013-2020, young people who want to become farmers can receive up to 50,000 Euro worth of non-reimbursable funding. So far, non-reimbursable funding has went to some 10,000 youngsters in rural regions and as of this year, their number is expected to grow. Achim Irimescu once again.



    Achim Irimescu: In my village, there are only 1,500 people left, out of a total number of 3,000 people. The best of them went abroad for better wages. The village is dying. Fortunately, things are not the same all over Romania. I have very serious doubts if we can succeed to preserve the village just the way we want. I made a lot of investments focusing on rural development worth 8 billion, added to which is the 1.5 billion earmarked through the SAPARD programme. If you travel across the country, you will see a lot of buildings erected with European money, which are padlocked. So, are we investing adequately or not? I have my own doubts about it. How can we, the Romanians, succeed in preserving a village, which should also be modern, at once retaining the Romanian identity of the Romanian village as well… No one wants the peasant to indulge in that kind of inertia, using the ox cart on a daily basis, many years onwards. We raised the sum to 50 thousand euros for youngsters, but I dont know how many young people will be able to use the money appropriately. If I went to rural areas and gave this sum of money to the first person that crosses my path, I dont know if she or he knew how to use the money. “



    The National Rural Development Program is the tool by means of which European non-reimbursable funds are earmarked for public and private investments, in order to provide the development of Romanian villages. So far, Romania has benefited from three such programmes, each of them seven-years long. More than 85, 000 farmers, local entrepreneurs and public authorities have so far benefited from European non-reimbursable funds accounting for some 9 million euros, through the National Rural Development Program over 2007-2013. Also, important investments through non-reimbursable funds have been made by farms and processors. More than 4,600 integrated farming crops have been modernized or founded using European funds. Furthermore, over 5,500 entrepreneurs have succeeded in setting up their own business using European funds. And, last but not the least, through the National Rural Development Program more than 4,400 projects of the local authorities have been financed.



    However, Romania will have to reimburse to the European Commission at least 800 million Euro of the rural development funds, which have not been used. The new 2014-2020 National Rural Development Program for the development of agriculture includes 14 financing measures and total funding standing at 9.363 billion Euro, of which more than 8 billion comes from European funds, while the national contribution accounts for the remaining 1.347 billion Euro.






  • The Medicine Market in Romania

    The Medicine Market in Romania

    First announced
    in March, the cut in the prices of subsidised medicine will come into effect on
    July 1st. A list of medicine whose price is 20% subsidised is to be
    made public prior to the enforcement of the measure. Pharmacists are discontent
    with the fact that the government order regulating subsidised medication and
    the list of new prices is made public only one day before the measure comes
    into force. The vice-chairman of the Pharmacists’ Board in Romania, Clara
    Popescu, says pharmacies have very little time to establish the new prices and
    create the new medicine lists:


    It is
    absurd to expect pharmacies to be ready to enforce the measure on July 1st.
    They will not be able to enter thousands of medicines into their data bases in
    a few hours.


    Producers of
    generic drugs warn that cutting prices may also have undesired consequences
    such as the disappearance of very cheap drugs from the market. They say the
    sale price may end up being lower than production costs. Producers have already
    notified the ministry that they have put 1,200 products on their black list,
    products used mainly to treat heart, digestive and rheumatic conditions and
    which can be bought for a few lei in pharmacies. The cut may also entail an
    increase in exports, which will not benefit Romanian patients. The state
    secretary in the healthcare ministry, Dorel Sandesc told Radio Romania that the
    authorities would take measures if necessary:


    Parallel export has been practised and we cannot ignore the risk that it may
    grow if medicines become cheaper. The healthcare ministry will, however, keep a
    close eye on this phenomenon and block the export of essential drugs that could
    endanger the treatment for Romanian patients. We will also punish all failure
    by the public healthcare service to ensure the needed medication for the
    Romanian patients.


    Another
    temporary consequence may be the increase in the price of non-subsidised
    medication because pharmacies with large stocks of subsidised drugs will want
    to compensate for the losses caused by the cut in the price of those drugs.
    Pharmacists are even afraid of bankruptcy. Dorel Sandesc defends the measure,
    saying it will save the healthcare fund money and allow the introduction of
    new, revolutionary drugs.