The Week in Review, April 2-8

The effects of the unitary pay law in Romania

România Internațional, 06.04.2018, 19:54

The effects of the unitary pay law in Romania

On Tuesday, the President of Romania Klaus Iohannis invited the PM Viorica Dancila and the Labour Minister Lia Olguta Vasilescu for talks on the unitary pay scheme, three months after the pay law came into force. The head of state explained that he was seeking clarifications because there were categories of employees and trade unions unhappy with the measures. Klaus Iohannis believes the unitary salary law comes against the principles of equal pay and predictability and called for a prudent approach to economic policies.

The President also said that the transfer of social security payments from employers to employees and the cut in income taxes led to a modest rise in net wages, but this effect was offset by the growing inflation. In turn, the PM and the Labour Minister assured the President that there are sustainable financial resources for the implementation of the law and of the pay raises promised by the Government so far. In recent months the ruling coalition, made up of the Social Democratic Party and the Alliance of Liberals and Democrats in Romania, has been subject to large-scale protests triggered by the new salary law.

The PM of Romania presents a report on national economy in Parliament

The PM of Romania Viorica Dancila was invited by the Liberals, in opposition, to present an overview of the Romanian economy at present. The National Liberal Party has accused the ruling coalition of having failed to secure salary increases for public sector employees, as they had promised when endorsing the unified pay scheme, while some employees in the private sector seeing their incomes getting lower as a result. The Liberals also argue that tens of thousands of Romanians are leaving the country because they cannot find jobs, whereas public institutions mostly recruit their staff from circles close to the political power.

In response, the PM spoke about the economic growth rate reported for last year and about the good results, which, she said, triggered an increase in living standards. Viorica Dancila mentioned that average gross wages grew by 14%, and pensions by 18% compared to last year:

“Personnel expenditure has grown by 19%. This means that salaries in the public sector have grown by 19% as compared to 2017, which in turn means that 1.2 million families now have bigger incomes. Official statistics show that the purchasing power in Romania went up by 12.7% in 2017, in terms of salaries, and by 10.3% relative to pensions.”

PM Dancila also added that the viability of the economic programme put together by the Social Democratic Party has been proven by economic growth, while alarmist scenarios have been invalidated.

Simple motion against the Culture Minister

A simple motion tabled by the National Liberal Party against the Culture Minister George Ivascu was dismissed by the Chamber of Deputies, one day after the document had been discussed in a plenary meeting. The Liberals claim the events scheduled to mark the celebration of 100 years since the Great Union have not been properly prepared, and voice their concerns with what they call the Government’s inability to manage effectively the December 1st centennial. They also believe that a public debate is needed in order for the national action plan devoted to the Centennial to be reconsidered. In response, the Culture Minister George Ivascu promised that his top priority remains the management of this important event as efficiently as possible.

Talks on declassifying protocols between the Romanian Intelligence Service and judicial institutions

The Higher Council of Magistracy on Wednesday called on the Supreme Defence Council to declassify a 2005 resolution based on which the Prosecutor’s Office signed a cooperation protocol with the Romanian Intelligence Service (SRI), as well as all other cooperation protocols between the intelligence service and institutions in the judicial system. The vice-president of the Higher Council of Magistracy Codrut Olaru argues that the declassification requests are motivated by the need for citizens to rest assured that prosecutors have complied with the law in their work. According to Olaru, the Higher Council of Magistracy, the High Court of Cassation and Justice and the Judicial Inspection Corps have cooperation protocols with Romanian intelligence services.

The Higher Council of Magistracy signed such an agreement with the Romanian Intelligence Service in 2012, which it cancelled in 2017, while the Judicial Inspection Corps and the supreme court have similar arrangements dating back to 2016. The statements come amid a scandal triggered by the publication last week of a 2009 protocol between the Romanian Intelligence Service and the General Prosecutor’s Office, based on which the intelligence structure had provided assistance to prosecutors over the past 7 years.

President asked for permission to prosecute top-level officials in the 1989 Revolution case

The Prosecutor General of Romania Augustin Lazar on Monday requested President Klaus Iohannis to allow the start of prosecution in the 1989 Revolution case, which concerns the circumstances that led to the ousting of the communist regime in December 1989. In this investigation, top-level officials of the leftist party that took over power shortly after the fall of the communist regime, namely the ex-President Ion Iliescu, the ex-PM Petre Roman and the former deputy PM Gelu Voican Voiculescu, are accused of crimes against humanity. Prosecutors argue that the armed incidents that took place after December 22, 1989 in a large number of Romanian towns indicate that there had been a precise plan that the new leaders followed in order to seize power and get legitimacy.

Romania has been sentenced by the ECHR over the delays in the Revolution case. According to the Court, the importance of this case for Romanian society should have encouraged the authorities to investigate it promptly. According to official statistics, over 1,100 people were killed and some 3,000 were wounded in December 1989.