8 June, 2016

Government debates public wages, World Bank adjusts Romania forecast

Daniela Budu, 08.06.2016, 00:00

WAGES — The government in Bucharest today is debating the emergency executive order on state employee wages in 2016. The main changes brought about by the relevant law are the complete restructuring of the salary system in healthcare, and the introduction of bonuses based on performance for workers in healthcare and education, starting in January 2017. Minister of Labor Dragos Pislaru explained that in August the lowest wages would increase, eliminating unjustified discrepancies in salaries between employees with similar positions. Heads of trade unions on Monday sent in comments on the emergency order. Trade union federations in the school system said they were not satisfied with the solutions provided for their sector.

FORECAST — The World Bank has upgraded slightly its forecast for the Romanian economy in 2016, from 3.9%, as it expected in January, to 4%, according to the Global Economic Prospects biannual report. However, the financial institution has lowered expectations on the evolution of the Romanian economy in the next two years, when Romanias GDP is supposed to grow 3.7% and 3.4% respectively, 0.4 and 0.6% less than they expected in January. The EC estimates that the Romanian economy would grow by 4.2% in 2016, sustained by solid domestic demand, while the 2017 rate of growth is expected to slow down to 3.7%. Eurostat estimates published yesterday indicated that Romania had the highest rate of economic growth of all the 28 member states in the EU, with a GDP growth of 1.6%.

BREXIT — Skepticism towards the EU is growing in the Union, as indicated by a new poll issued two weeks ahead of the British vote on EU membership. The Pew Research Center Poll shows that a small majority, about 51% of respondents in 10 EU countries, wants to remain in the Union. 42% want more power of decision to be granted their countries, while another poll indicates that most Europeans want Britain to remain part of the EU. In a poll in Britain, 41% of respondents want to stay in the EU, while 43% are in favor of exiting. The referendum on the Brexit is scheduled for June 23rd.

VISITS — The presidents of Italy and Germany are scheduled for official visits to Romania soon. The agenda of talks in both cases will include economic issues, considering that Germany is Romanias most important trade partner, and the third most important investor in Romania. President Klaus Iohannis paid a visit last April to Italy, when he extended the invitation for his counterpart to visit Romania. In February last year and this year, the head of state visited Germany.

DECORATION — Romanian National Anti-Corruption Agency’s Chief Prosecutor Laura Codruţa Kövesi has been awarded the French highest civilian decoration, that of Knight of the Legion of Honour. It was awarded by the French Ambassador to Bucharest, François Saint Paul. At the award ceremony, the French Ambassador highlighted the fact that the National Anti Corruption Agency’s results were outstanding. In confirmation of that came a European Union report, ranking Romania’s Anti-Corruption Agency among Europe’s top five such institutions. The French Ambassador went on to say the head of the National Anti Corruption Agency was an epitome of professionalism, integrity and probity. In turn, Laura Codruta Kovesi stated that the fight against corruption was a key component for the preservation and defence of the rule of law in Romania.

ALERT – French authorities are on high alert to prevent any possible terror attacks during the European Football Championship, due to begin in two days. According to Radio Romania corespondent, France is facing both the risk of terror attacks and social unrest caused by the strike at the National Railway Company, which is in its second week and the threats of another strike by Air France pilots. France has been receiving warnings for new terror attacks, the last coming from Scotland Yard, which mentiones ISIS propaganda about masterminding new attacks during the championships. The terror threat remains ’severe’. Similar warnings have been issued by the US authorities.