February 17-21

A review of the main political and social issues in Romania this past week.

Leyla Cheamil, 22.02.2014, 14:00

Tensions in the ruling Social Liberal Union in Romania

Few people still believe in the future of the Social Liberal Union, the center-left alliance ruling Romania at present, which is being torn by a deepening crisis. The Union’s leaders, the Social Democratic PM Victor Ponta and the Senate speaker, Liberal leader Crin Antonescu will try, next week, to save the coalition and work out a solution to the political deadlock the alliance has faced over the past 2 weeks. The deep-going tension consuming the alliance has been triggered by disagreements over a new structure of the Ponta government. The Liberals accuse the Social Democrats that they want to give up the legitimate Social Liberal Union government, which won the elections in 2012. The Liberal leader Crin Antonescu claims that Victor Ponta is trying to build a new government, dominated by the Social Democratic Union, an alliance recently established by the Social Democratic Party with other parties in power, namely the Conservative Party and the National Union for the Progress of Romania. However PM Ponta says he wants to keep the Social Liberal Union in place, but he believes that he has already agreed with enough suggestions made by the Liberals.

Sanctions against the regime in Kiev

The explosive situation in Ukraine is a matter of concern for the international community. Gathered in Brussels, the EU foreign ministers decided to pass sanctions against the Ukrainian regime. They imposed a visa ban on the Ukrainian officials and froze their foreign assets. Romania, represented at the meeting by its foreign minister, Titus Corlatean, firmly condemned the violence in Ukraine, which left behind dead and wounded among both protesters and riot police. In turn, the Romanian President, Traian Basescu, has once again called on his Ukrainian counterpart, Viktor Ianukovych, not to use the army to repress street protests. He said that instability in Ukraine could affect the whole of Europe.

Romanian deputies pass the Farm Land Law

After admitting the suggestions made by the Romanian President Traian Basescu, the Romanian deputies have this week adopted the Farm Land Law, which stipulates that individuals and legal entities from Europe can buy farmland in Romania, on mutual terms. Agriculture minister, Daniel Constantin, believes that the law simplifies the process of selling land outside towns and cities, the winners of this move being those who want to undertake farming activities. One of the main changes to the law is that people who want to sell farmland outside towns have to notify the town hall and then wait for the release of a list including the individuals who hold a pre-emption right for purchase.

The biggest insurance company in Romania, ASTRA, is placed under special administration

The Financial Surveillance Authority in Romania, ASF, has put under special administration the largest insurance company on the Romanian market- ASTRA. The measure was prompted by the many irregularities in managing funds, discovered during a routine checking. One of the irregularities found by the ASF is that, in case of a big earthquake, ASTRA will not cover policy owners properly, because the company undervalued the damages it was supposed to pay. The situation is very serious, considering that ASTRA has 3 million customers, and that 2 millions of them signed house insurance policies.

The list of subsidized medicines will come into effect on April 1st alongside the basic medical services package

The Romanian Healthcare Ministry has submitted for public debate the new list of subsidized and free of charge medicines. After 6 years without any modification, the list now includes an additional number of 130 new medicines or new indications for treatment. The version to be enforced as of April 1st provides access to new medicines, which are also cheaper. The list of subsidized medicines will come into force together with the basic medical services package, benefiting health insurance owners. A minimal services package will be granted to those without health insurance. The latter package includes such services as emergency assistance, monitoring and identifying certain diseases, monitoring of women during and after pregnancy, family planning, prevention services and support activities.

Investors in Romania, discontent with the political situation

The political situation in Romania affects the stability of the economic environment, and that entails bigger taxes and smaller salaries for the population and creates difficulties in attracting foreign investors. The statement belongs to the secretary general of the Coalition for Romania’s Development, Steven van Groningen. He has pointed out that Romania needs sectoral strategies, suggesting that legislative changes should be made as part of these strategies, followed by an impact analysis and a reasonable period of implementation of 6 up to 12 months. The coalition, gathering 4 of the most important investors’ organizations in Romania, is made up of the American Chamber of Commerce in Romania, the Council of Foreign Investors, the Association of Businesspeople in Romania and the Romanian Business Leaders.