Tag: the European Commission

  • The Pitesti-Sibiu motorway

    The Pitesti-Sibiu motorway

    The project to build the
    Sibiu-Pitesti motorway will continue, and the Romanian authorities will submit
    all clarifications requested by the European Commission in due time, so that
    the funding request should unfold within normal parameters, Transport Minister
    Lucian Bode has said. The Romanian Minister said this is the biggest road
    infrastructure project in Romania funded with EU funds. The total value of the
    project stands at 1.3 billion euros, of which 85% is due to be disbursed by the
    European Commission. Representatives of several government institutions on
    Monday convened for a joint session at the Transport Ministry to draft a
    response to questions from the European Commission over the impact of the
    Sibiu-Pitesti motorway on the environment, which is a prerequisite to the
    non-reimbursable financial assistance from the EU.

    The Commission demanded
    clarifications over the impact the motorway might have on some protected
    natural areas to be crossed by the motorway. The timetable for the completion
    of the motorway will also be presented, in addition to the implementation of
    the management plans at national level and the establishment of goals to
    preserve wildlife species in the protected areas in question. At least 11
    protected natural areas located over the course of the motorway need concrete
    preservation measures that Romania hasn’t adopted yet, the Commission recently
    warned.

    Former Social-Democrat Transport Minister Razvan Cuc recently published
    a conversation between the Transport Ministry in Bucharest and the European
    Commission, showing that Romania has not taken concrete preservation measures
    for several protected natural areas, especially concerning a bug species listed
    as endangered. Under these circumstances, the Commission could suspend its
    funds.

    In turn, current Minister Lucian Bode accused the previous Government of
    not submitting an explanation to the European officials in due time, saying the
    funding cannot be suspended as the sum hasn’t been disbursed yet. Minister Bode
    said an environment permit for the construction of the motorway was released in
    2018, adding that 1 in five segments of the motorway, linking Sibiu to Boita,
    has a signed contract, with construction works due to start in spring. Segments
    4 and 5 are in the evaluation or challenge phase, while segments 2 and 3 have a
    more complex status, considering they are in the mountainous area and are due
    to be taken up for auction. Lucian Bode pointed out Romania is not the only
    country the Commission has asked for clarifications over large infrastructure
    goals, Poland and Bulgaria having received similar requests.


    (Translated by V. Palcu)

  • January 31, 2018

    January 31, 2018

    TALKS Romanian president Klaus Iohannis is having talks with European leaders in Brussels today on preparations for Romania’s taking over the rotating EU Council’s presidency in the first half of 2019. The Romanian president will be having talks with the head of the European Commission, Jean-Claude Juncker, during which he is going to underline Romania’s firm commitment to contributing to the consolidation of the European project. The Romanian official is expected to explain that the Romanian EU presidency will have a balanced and objective approach in the interest of the Union and the member states to contribute to the advancement of the European integration process. A major topic to be discussed in Brussels today is the situation created by the amendments to the justice laws and the anti-graft fight. The European Commission has recently made an appeal to Parliament in Bucharest to reconsider the amendments to these laws at the same time offering its support to the authorities in Bucharest. The Commission has also cautioned about the danger of backsliding concerning the justice laws, Criminal Codes and the laws on the conflict of interests and corruption. President Iohannis’ agenda also includes talks with the European Council president, Donald Tusk on the agenda of the informal session of the European Council on February 23rd, where heads of state and government are to debate upon the political priorities of the EU long-term budget.



    DEFENCE Romanian Defence Minister Mihai Fifor has today held talks in Bucharest with his Georgian counterpart Levan Izoria. High on the agenda were bilateral military cooperation and new prospects of stepping up dialogue in the field. Fifor has reconfirmed Romania’s firm commitment to supporting Georgia’s Euro-Atlantic progress. He underlined that Bucharest would continue to actively support the process of reforming and streamlining Georgia’s armed forces with a view to boosting the defence system and interoperability with the allied countries. At the same time, Fifor has hailed Georgia’s decision to join NATO’s mission Resolute Support, the Alliance’s most significant operational effort in Afghanistan. The two ministers have agreed upon a process of periodical consultations with a view to identifying new cooperation projects in the field of defence given the latest security developments in the Black Sea region.




    SESSION Romania’s new government headed by Social-Democrat Viorica Dancila has today convened in its first session to correct a controversial fiscal measure. At the investiture vote in Parliament, Viorica Dancila said that the objective of her mandate is for Romania to be in the first half in the ranking of the EU economies in 2020. The Romanian official also takes into account measures to increase investments with a view to streamlining the infrastructure, to raise the people’s income, a reformed administration as well as reduced bureaucracy. The new cabinet is made up of 28 members including four deputy Prime Ministers as compared to only three of the previous cabinet.




    ADDRESS In the State of the Union Address on Wednesday the US president Donald Trump said that the era of Americas “economic surrender” is over and the US is seeking to enter into new trade agreements with nations that commit to fair and reciprocal trade. The White House leader added that one of the pillars of reform in the field of immigration is to end the visa lottery — a program that randomly hands out green cards without any regard for skill, merit, or the safety of American people. The US President used his first State of the Union address to push for a merit – based immigration system that admits skilled people, who want to work, and who will contribute to society. Trump has called on Congress to support an investment plan of at least 15 hundred billion dollars in the US infrastructure, one of his campaign pledges.




    TENNIS Romanian tennis player Monica Niculescu (WTA 99) on Wednesday qualified for the quarterfinals of the WTA tournament in Taipei (Taiwan) with 227 thousand dollars in prize money. The Romanian secured a 6-0, 1-6, 6-4 win against 6th seeded Zarina Diyas of Kazahstan. Niculescu will play German Sabine Lisicki in the quarters. The German challenger clinched a 6-4, 6-1 win against Nao Hibino of Japan. In the same tournament, another Romanian, Ana Bogdan will be up against Eugenie Bouchard of Canada in the round of 16.



    translated by Daniel Bilt

  • Opinions on Romania’s economy

    Opinions on Romania’s economy

    The European Commission has warned Romania that in 2016 it swerved significantly from the medium-term budget objectives and that this year there is the risk of another deviation. The Commission expects Romania this year to have a budget deficit of 3.5% of the GDP and of 3.7% next year, above the 3% EU level, given the envisaged pay rises and tax cuts. The Brussels officials are worried about the enforcement of the unified pay scale law triggering an increase of spending much above what the government can afford.



    That is why the Commission recommends that Romania use any additional revenues to slash the budget deficit and also take measures for a better tax collection and for fighting illegal work. The warning has also been forwarded to the EU Council which might call on the authorities in Bucharest to straighten out the problem until October 15th so as to avoid sanctions. It is the first time that the Commission makes use of such a warning actually laid down in European treaties. Romania’s president Klaus Iohannis has responded to the Brussels warning pointing out that the government is responsible for avoiding economic imbalance. Klaus Iohannis:



    It is important that everybody and lawmakers in particular should understand that not only economic stability, but also budgetary stability is extremely important. This stability is absolutely necessary and the government is responsible for planning next years’ budgets and the spending for instance on wages so that this important balance should not be endangered.”



    The leader of the Social-Democratic Party, Liviu Dragnea is dissatisfied with the European Commission’s recommendations to Romania and believes that the Commission applies a double standard to our country, demanding that this country enforce austerity, even if it has the biggest economic growth in the European Union. The Social-Democrat leader argues that it is necessary for the Romanians’ wages to go up so that they may no longer leave the country, which would involve bigger budget expenses. He has given the example of Spain and France, which were not sanctioned when they exceeded the 3% deficit threshold.



    On the other hand however, Liberal senator Florin Citu has explained that the European Commission applies the same standards to all member countries exceeding the budget deficit and has warned that the enforcement of the unified pay scale law will deepen that deficit. The governor of the National Bank, Mugur Isarescu said that the country’s macro-economic situation was among the best in the last 27 years, but there were bigger risks in the current period. (Translated by A.M. Palcu)

  • April 6, 2016 UPDATE

    April 6, 2016 UPDATE

    The Chamber of Deputies in Bucharest on Wednesday ruled out the simple motion tabled by the Alliance of Liberals and Democrats in Romania entitled Human Rights Arent a Luxury Asset against Justice Minister Raluca Pruna. The signatories of the document have called for Prunas resignation, whom they criticized for the statements she made against the citizens fundamental rights, after the government had passed an ordinance regulating wiretapping in criminal files. Raluca Pruna said the discussion on human rights is a theoretical luxury in a state weakened by corruption and where the fight against organised crime is inefficient.



    State employees with low salaries in Romania are expected to get a pay rise in the second half of this year through an emergency ordinance. The new drafts main aim is to correct dysfunctional payment, which happened gradually due to rises in the minimum wages and compressed wage distribution. The draft under discussion is to be endorsed by the executive next week, after talks between the labour minister and social partners. The executive is to endorse in the following weeks a draft on payment with a multianual approach as of 2018, a spokesperson for the government has announced. A unitary paying system has been envisaged but it has to be corroborated with a law package on the administration reform.



    The head of Romanias Anticorruption Agency DNA, Laura Codruta Kovesi on Wednesday confirmed that she had been subjected to a foiled intimidation attempt. Prosecutors with the Direction for the Investigation of Organized Crime and Terrorism (DIICOT) have announced that two employees of an Israeli information company were taken into custody on Sunday for having attempted to compromise the DNA chief-prosecutor. The two have been charged with setting up an organized crime ring, trying to get into an information system, unauthorized data transfer and attempted alteration of data. According to prosecutors, in the month of March the two made several phone calls to threaten the DNA official at the same time mounting phishing attacks with a view to getting information from e-mail accounts of Kovesis entourage. The Israeli embassy in Bucharest on Wednesday said the Israeli authorities arent involved in the case presented in the Romanian media on attempts of intimidating the head of the DNA by former Israeli information officers. The embassy specified that investigation in this case concerns employees of a private Israeli company.



    Three Romanian handballers, Cristina Neagu currently playing for Buducnost Podgorica (Montenegro), Oana Manea of CSM Bucharest and Eliza Buceschi of Thuriger (Germany) have been nominated for the Champions Leagues best team, following a survey conducted by the competitions official webpage. The players have been selected by taking into account the shows they put on this season as well as the number of goals scored, passes or the shots they blocked on the defence line. The teams final lineup will be established by means of votes from fans on the competitions official site between April 5th and May 3rd.



    The European Union on Wednesday came up with proposals on reforming asylum-granting procedures in response to the refugee crisis, which has recently revealed the weak points of this policy. Under the present European legislation, immigrants must apply for asylum in the first EU country they arrive in. Now the European Commission has called on member countries to consider two options, either to reform the present system by adding an emergency mechanism, under which other EU members may accept the relocation of refugees if some members cannot cope with the refugee inflow, or to completely cancel this regulation. In the second case, the Commission proposes the setting up of a permanent system of redistributing asylum-seekers according to the GDP, the size of certain states and their refugee-absorbing capacity. The European Commission wants its proposals to materialize by the month of June. The European Commission on Wednesday also came up with a series of technical measures to strengthen border security and cooperation in terms of data exchange. The new system is to be implemented by 2020.



  • Agreement with International Lenders

    The Government of Romania has agreed on the main elements of the 2015 state budget with the IMF, European Commission and World Bank negotiators. The budget will be based on a 2.5% economic growth forecast and a budget deficit of 1.83% of the GDP, PM Victor Ponta announced. He made a point of alleviating all fears regarding possible increases of taxes and duties or the elimination of the current or planned social and economic measures. Victor Ponta:



    First of all, there will not be, and the budget bill does not include, any additional taxes or charges in 2015. Obviously the flat 16% tax remains in force. The charge on special construction projects will be lowered from 1.5% to 1% and this has been taken into account in calculating the state budget. It was a fundamental objective. All the current measures targeting economic development or social justice are covered by the draft budget.”



    Such measures, the PM explained, include the 5% reduction of social security payments incurred by employers, the tax exemption for reinvested profits, the rise in pension benefits and in minimum guaranteed incomes, doubling the child support benefits for low-income families and the 16% increase of allowances for people with disabilities. PM Victor Ponta said there will be no major pressures on public expenditure, and that funds have been earmarked for co-funding European projects. The Opposition however believes these funds will be cut and therefore investments will be affected. Here is the Liberal Deputy Gheorghe Ialomitianu:



    The bad thing is that we will have a state budget designed not for economic development, but for subsistence, because the increase in expenses operated by the Ponta Cabinet and included in the 2015 budget are not channeled into investments. Investments have been slashed, and the most affected are the investments from the state budget.”



    The representatives of Romania’s international lenders have left Bucharest, but issued a brief news release announcing that an agreement in principle was reached on the main points of the 2015 budget. They said the agreed deficit level is in line with the medium-term budgetary goal, while at the same time ensuring the framework for speeding up the European fund absorption. Delegations of the International Monetary Fund, European Commission and World Bank will return in January for a full assessment of the ongoing agreement. The Government intends to present the state budget bill in Parliament on Friday, with Parliament’s final vote on the draft law scheduled for December the 21st.