The Week in Review 21 - 27 May 2022

The President of Romania, Klaus Iohannis, talked on the phone with the president of the European Council, Charles Michel

Romanian president Klaus Iohannis, on Thursday spoke on the phone with the president of the European Council, Charles Michel, before the special proceedings of the aforementioned council in Brussels at the end of the month, which has high on the agenda the humanitarian and financial aid for Ukraine. Food safety, energy, security and defence were the main topics of the discussion between the head of the Romanian state and president of the European Council. In the meantime, the Russian troops are continuing their onslaught on the neighbouring Ukraine where the situation is difficult. According to the General Border Police Inspectorate, since the beginning of the conflict on February 24th, over one million Ukrainian citizens have entered Romania. 

An offshore law regulating Black Sea gas exploitation has come into effect

The offshore law regulating gas exploitation in the Black Sea was enacted on Wednesday by Romania's president Klaus Iohannis. In its new form, the law is more investor-friendly and is supposed to benefit both the state and companies, government representatives say.  After the endorsement of the draft law in the Chamber of Deputies, Energy Minister, the Liberal Virgil Popescu, has said the new regulations ensure stability, predictability as well as lower gas prices for household consumers. The law stipulates a series of measures on the stability of the fiscal regime and oil royalties as well as the elimination of additional income taxation for selling prices at which investors do not make surplus profits. During the duration of the agreements concerning the deep-sea offshore and onshore perimeters, the holders of the agreements have the right to freely trade the hydrocarbons produced from the respective oil perimeters at the prices and in the quantities determined by them under the provisions of the national and European legislation in force. Under the document, Romania will have priority in exploiting the gas deposits and the profit will be divided between the Romanian state, which is to receive 60% and investors who are to get 40%. The first gas extraction has been scheduled for June, part of a project carried out by the company Black Sea Oil&Gas. According to estimates, over one billion cubic meters would be delivered annually throughout this exploitation thus covering 10% of Romania's needs. 

Prince Charles, heir to the British Crown, is back in Romania

Currently on a visit to Romania, after a break caused by the pandemic, Prince Charles, heir to the British Crown, on Wednesday met in Bucharest the country's president Klaus Iohannis, Prime Minister Nicolae Ciuca and the custodian of the Romanian crown, Princess Margareta. Talks focused on the Ukrainian refugee crisis and the support granted by Romania to its neighboring country in the context of the Russian invasion. President Iohannis informed Prince Charles on the humanitarian hub in Suceava, north-eastern Romania, and on the coordination of support efforts by a number of states, to Ukraine's benefit. Also discussed were the Romanian-British strategic partnership, solutions to limit the impact of climate change and to preserve biodiversity and the need for educational projects on climate change. During the meeting he had with Romania's Prime Minister, Prince Charles was interested in Romania's policies in the field of green and renewable energies. Prime Minister Ciuca voiced support for investment in green energy, the offshore wind power in particular, in which British companies are invited to invest in the upcoming period.

Together with Princess Margareta, Custodian of the Romanian Crown, prince Charles visited a refugee centre in Bucharest, and talked to the refugees and volunteers there. The centre has more than 1 thousand Ukrainian visitors per day, who receive food, hygiene products and clothing, and also benefit social services and counseling during their stay in Romania.

Prince Charles first visited Romania in 1998 and has returned to the country almost every year ever since. He has been supporting foundations and programs focused on the protection of Transylvania's heritage and biodiversity and, through Prince Charles of Wales Romania Foundation, he supported small farmers and ran a special program for the Romanian military injured in Afghanistan. 

The executive in Bucharest has approved a new package of social and economic measures

The Bucharest Government on Monday announced a new package of social and economic measures agreed on by the ruling coalition, against the background of unprecedented price hikes affecting the population. The package, worth 1.1 billion euros, takes effect starting July 1st. Among these measures are the postponement, by nine months, of interest rates on loans for citizens and companies facing difficulties triggered by the multiple crises that have emerged lately. Also decided was the granting of a quarter of the salary difference, in keeping with the unitary payment law for public sector employees, and of a single financial aid of 140 euros to all pensioners with pensions smaller than 400 euros.

At the same time, the Government will take measures for fiscal consolidation and for observing its commitments as regards the public deficit. This means cutting public expenditure by at least 10%, except for expenses with salaries, pensions and social assistance, freezing jobs in the public sector as of July 1st and increasing the collection of revenues to the consolidated general budget by 2 billion euro.

Also on Monday, the Minister of Investment and European Projects, Marcel Bolos, announced that most vouchers for vulnerable persons will be distributed to the beneficiaries starting in June and the rest of them in the first half of July. He mentioned that the vouchers to be distributed by June 10 will be funded in 2 or 3 days, in keeping with the public payment mechanism.

We recall that on May 9 the Government adopted the measure regarding social vouchers to be granted to a number of categories of people who are at risk of material deprivation and extreme poverty. Thus, more than 3 million Romanians will receive every two months, social vouchers worth 50 euros each. 

(bill)