The Week in Review (10-16 May 2020)

Some of the main stories in Romania this week

Corina Cristea, 16.05.2020, 13:54

State
of emergency ends and is replaced by state of alert.

The
state of emergency imposed in Romania in March to contain the Covid-19 pandemic
has ended, being replaced by a state of alert beginning on 15th May
and lasting thirty days. The National Committee for Special Emergency Situations,
whose chairmanship has been taken over by the prime minister Ludovic Orban, has
made public the new regulations that will apply during this period. All
activities allowed must comply with measures to prevent the spread of the novel
coronavirus.

People
are obliged to wear face masks in shops, on public transport, at work and in
other enclosed public spaces. Employees of public institutions and private companies
will be working remotely and where this is not possible, they must be subject
to epidemiological triage at their places of work. Bars, cafes and restaurants will
remain closed, as will shopping centres, with the exception of shops with
direct outdoor access. Hotels, dental practices, museums and parks, with the exception
of playground areas, are all reopening, and people are now able to move about in
their towns or cities without having to sign a written statement in advance
stating where they’re going and why. They will, however, have to write such a
statement if they leave town, which is only permitted for certain reasons.

Air,
road and railway travel is still subject to restrictions. Romanian citizens
returning from abroad will be quarantined at their homes, together with their
families, and not in an institutional facility, unless they require so. The
government has also extended some economic support measures for the duration of
the state of alert, such as the furlough scheme and family leave for parents
who stay at home with their children until the end of the school year. The persons
who are in quarantine or have been infected with Covid-19 have priority when
taking medical leave. Doctors will still be allowed to conduct remote
consultations and the physical use of the health card is not required for subsidised
medicine. Businesses and private individuals will still be able to apply for postponing
the payment of bank loans.

President
Klaus Iohannis thanked the people who respected the lockdown measures taken two
months ago and emphasised that the most important reform Romania needs right now
is the reconstruction of the state. Healthcare, education, the administration,
the sectors ignored and bled dry for so many years must now become our priorities,
and the legislation must be drafted in a coherent way so as to allow a rapid
intervention in cases of emergency or alert, the president also said. He
warned that he would not hesitate to declare a new state of emergency if the
situation deteriorates and infections rise fast, leading to an overcrowding of
hospitals.

Romania has around 16,500 cases of infections.
More than 1,000 people have died and around 10,000 have recovered.

Chamber
of Deputies passes simple no-confidence motion against finance minister

The Chamber of Deputies this week debated and passed a simple
no-confidence motion against the Liberal finance minister Florin Cîțu, filed by
the Social Democratic Party, the main opposition party in Romania. The Social
Democrats say the minister has been incapable of coming up with efficient
measures to support the economy. They say that when Cîțu took over, economic
growth was rising, the budget deficit was low and public debt was low as a
percentage of GDP, but that he has impoverished Romania during his tenure. The minister
is also being criticised for the loans made recently by the government.

Minister Cîțu rejected all accusations and responded by criticising the
state of the economy when he took over from the Social Democrats last autumn. He
explained that the loans made by the government are for covering the expenses
made by the Social Democrats and said that thanks to the decisions taken by his
government Romania will recover quickly from the crisis. Cîțu also listed the
SME Invest programme to help small and medium sized businesses, the digitalisation
of the National Agency for Fiscal Administration and an increase in budget
revenues and accused the Social Democrats of using the crisis to block the government’s
activity.

Romania’s economy to shrink this year

As a result of the crisis caused by the Covid-19 pandemic, Romania’s
economy is projected to shrink by 4% this year compared with a growth rate of
3.2% forecast in November last year, according to the European Bank for
Reconstruction and Development. Next year, Romania’s GDP is projected to grow
by 4%. The European Bank for Reconstruction and Development is the main
institutional investor in Romania, with investments of over 8.6 billion euros. The
forecast of the European Commission vis-à-vis the Romanian economy looks
equally grim, with a drop of 6% being estimated for this year, after many years
of robust growth. The International Monetary Fund also expects the Romanian
economy to shrink by 5% this year before picking up again next year, when it is
projected to grow by 3.9%. (CM)