December 19, 2018
Bucharest Stock Exchange opens in free fall on Wednesday; Parliament passes new pension law
Daniela Budu, 19.12.2018, 13:52
STOCK EXCHANGE — The Bucharest Stock Exchange opened today in free fall, after fiscal and budget measures for 2019 presented Tuesday by Finance Minister Eugen Teodorovici. The announcement sent the market plummeting to minus 7%. Teodorovici announced so called taxes on greed leveled on banks, depending on the evolution of interbank loans, as well as a package of measures for energy companies — a contribution equal to 3% of turnover, capping natural gas prices, and price controls for electricity prices.
PENSIONS – The law regulating pensions passed in the Chamber of Deputies, which had previously passed the bill article by article. The bill sets a minimum of 15 years of employment in order to qualify for social benefits, with contributions to the system in the 15 years. The only changes that deputies brought to the bill introduced by the executive regards the rights of people with disabilities, who would get benefits for working a third of the mandatory period. This amendment, introduced by the Hungarian Union, was initially turned down by the Labor Committee. The bill passed by 193 votes. The novelties in this bill, according to Social Democrat Deputy Olguta Vasilescu, are eliminating inequalities in pensions for people with similar work experience, granting the most advantageous survivor pension to a spouse, and the possibility of retiring six years early for mothers of three children or more. Vasilescu, former Minister of Labor, specified that a gradual rise in pensions until 2020 will bring pensions up to 1,775 lei.
BUCHAREST — The meeting of the Supreme Defense Council of Romania, suspended on December 11 by President Klaus Iohannis at the request of the members, resumes today in Bucharest. According to the Presidency, the agenda includes major issues related to the countrys defense and national security, which resulted last week in very long discussions. The agenda also includes issues with equipping the armed forces between 2019- 2028, the councils schedule for next year, the deployment plan for Romanian enlisted men going abroad in 2019, and the National Plan for Informative Priorities for next year.
BUCHAREST — The Constitutional Court of Romania debates today the governments claim regarding a possible constitutional conflict between the government and the president, who delayed the appointment of the ministers for transportation and regional development. The proposals were Lia Olguta Vasilescu for regional development and Mircea Draghici for transportation. According to the claim filed by Prime Minister Viorica Dancila with the high court, the prolonged analysis by President Iohannis of the proposals has no legal basis, and constitutes willful obstruction. The delay is referred to as an arbitrary refusal. Iohannis said he is waiting for a decision from the court before making his own.
PRESS — The Reporters without Frontiers organization accuses Romania of excessive politicization of the press and corrupt financing mechanisms, making editorial compromises under pressure from owners, and the infiltration of intelligence agents in editorial rooms. The 2018 annual report of the organization points out that the use of the press as a political propaganda tool was more visible than ever in the last few years, especially during election campaigns. In Romanias case, the worsening climate in the press is in part due to the activity of small extreme right groups with ties to the Orthodox church — itself partially state financed — who openly oppose freedom of information. The organization adds that the bill introduced by majority leader Liviu Dragnea, introducing penalties for denigrating Romania, and reintroducing calumny in the Penal Code, raises fears of political censorship in the media. Romania was ranked 44th in the world in the freedom of the press index for 2018.
