A new package of social measures
New social measures will take effect in Romania as of July 1.
Leyla Cheamil, 24.05.2022, 14:00
The Bucharest Government on Monday announced a new package of social and economic measures agreed on by the ruling coalition, against the background of unprecedented price hikes affecting the population. The package, worth 1.1 billion euros, takes effect starting July 1st. Among these measures are the postponement, by nine months, of interest rates on loans for citizens and companies facing difficulties triggered by the multiple crises that have emerged lately. Also decided was the granting of a quarter of the salary difference, in keeping with the unitary payment law for public sector employees, and of a single financial aid of 140 euros to all pensioners with pensions smaller than 400 euros.
At the same time, the Government will take measures for fiscal consolidation and for observing its commitments as regards the public deficit. This means cutting public expenditure by at least 10%, except for expenses with salaries, pensions and social assistance, freezing jobs in the public sector as of July 1st and increasing the collection of revenues to the consolidated general budget by 2 billion euro.
Moreover, the leaders of the ruling coalition plan to speed up the absorption of European funds under operational programs and the National Recovery and Resilience Plan. In this respect, the coalition will make a monthly assessment of the funds attracted. Also on Monday, the Minister of Investment and European Projects, Marcel Bolos, announced that most vouchers for vulnerable persons will be distributed to the beneficiaries starting in June and the rest of them in the first half of July. He mentioned that the vouchers to be distributed by June 10 will be funded in 2 or 3 days, in keeping with the public payment mechanism.
We remind you that on May 9 the Government adopted the measure regarding social vouchers to be granted to a number of categories of people who are at risk of material deprivation and extreme poverty. Thus, more than 3 million Romanians will receive every two months, social vouchers worth 50 euros each. The Government took these measures in the context of the highest price increases in the last two decades. According to the National Institute of Statistics, natural gas is by 85% more expensive and the price of fuel went up by 35%, which triggered very high prices for the food products. The price of potatoes and cooking oil, for instance, has increased by 40% while vegetables and bread are also much more expensive than before. According to experts, this situation is likely to continue at least until summer, as the reasons behind the price hikes will not go away. (EE)
