Measures to support the economy
NOTA 1 - 24/03/2022 This year the government earmarked 3% of the GDP to support the economy and citizens
Ştefan Stoica, 24.03.2022, 14:00
The Government is preparing a new set of measures to support vulnerable people and businesses. The purpose is to offset the price hikes generated by disruptions in the supply of fuel and foodstuffs. The European Commission has approved a temporary framework for state aid, and is expected to compensate the additional costs generated by the growing prices for energy, fuel and food, as well as the fallout of international sanctions against Russian companies. The measure is designed to help economies and citizens in member states. Therefore, businesses affected by the war in Ukraine can apply for state aid up to 400 thousand Euro. Finance Minister Adrian Câciu explains:
“The state will provide grants ranging from 35 to 400 thousand Euro per company, also depending on the specificity of its activity, that should support working capital, the liquidity of companies, allowing them to overcome this complicated economic situation we are experiencing, and support the impact of inflation affecting economies, as well as the uncertainty generated by the conflict in Ukraine”.
On the other hand, Romania is expected to receive 6 billion Euro this year under its Recovery and Resilience Plan. Dan Vîlceanu, Minister for Investment and European Projects, gave more details:
“The money earmarked to the Ministry for Investment and European Projects at the start of the year is now transferred to each ministry implementing reforms, so they can start spending it”.
Since the start of 2022, the Government has earmarked 3.4% of the GDP to support the economy and citizens, Finance Minister Adrian Câciu argues. The spending addressed state aid for pensions, the increase of pensions and allowances and the payment of the 13th salary. The cap on natural gas and electricity for household and industrial users until the end of April 2023 will entail a significant financial strain. Businesses were previously exposed to the risk of bankruptcy due to the high energy bills.
On top of these measures, the Government is preparing an additional bill to support citizens and companies, amidst the growing prices for fuel and foodstuffs. The Finance Minister says inflation, which has been rampant throughout 2021, has started slowing down in 2022, estimating the deficit will go down as well. The exchange rate is stable, while the currencies of countries in the region have depreciated significantly, Minister Adrian Câciu pointed out. (VP)
