Project to support the economy
Romanian authorities are taking measures to counteract the economic crisis generated by the coronavirus pandemic.
Roxana Vasile, 24.03.2020, 13:50
Beyond the round-the-clock fight to save the lives of
the gravely sick, another major concern in these difficult times at global
level is to find solutions to keep the economy moving forward. Governments worldwide
have taken pre-emptive measures to support the population facing financial difficulties,
as well as various sectors of the economy, some of them already shaken by the
pandemic. The head of the Prime Minister’s Office, Ionel Danca, has announced
new assistance packages. Therefore self-employed persons as well as family or
individual businesses that have suspended their activity will benefit from a set
allowance tantamount to the minimum wage, irrespective of contributions paid to
the unemployment scheme. Ionel Danca also promised the Government would
introduce new regulations for all types of enterprises and professional
activities: large enterprises, cultural or sporting activities, NGOs affected
by the state of emergency.
In turn, Finance Minister Florin Citu said a
solution would be presented shortly to the clients of banks facing
difficulties, adding that talks are already ongoing with the National Bank and
the banking sector. The Social-Democratic Party, the Alliance of Liberals and
Democrats and the Pro Romania Party have submitted a bill providing for tax
benefits. Among other things, the bill proposes a postponement of social
security contributions for salary incomes and for social-security payments for
a period of three months, starting March. The measure can be requested by each
economic operator individually. Employers, on the other hand, must safeguard
all employment contracts for a minimum period of 9 months.
The Social-Democrats
want the Government to suspend the refund of bank installments to the
population, a measure already implemented in other European states. The
Social-Democratic Party says the Government employs half-measures and
incoherent policies, which is why they are considering the possibility of
calling a no-confidence vote. The motion will not be targeted against the
Government per se, but rather will contain a set of concrete economic measures.
According to a previous Constitutional Court ruling, once voted, the provisions
of any simple motion become compulsory and must be enacted by the Government.
In turn, the Democratic Union of Ethnic Hungarians wants to immediately suspend
fiscal obligations for enterprises that do not fire employees, while the Save
Romania Union says the financial measures announced so far by the Government
are important, but are not enough.
(Translated by V. Palcu)
