Govt unveils “Support for Romania” package of social and economic measures

The package of social and economic measures dubbed “Support for Romania,” estimated to cost the Government RON 17.3 bln (EUR 3.4 bln), will be enforced as of May 1 to help low-income households and the firms hit by the rising prices and the war in Ukraine, Romanian prime minister Nicolae Ciuca announced on April 11, Agerpresreported.

More than half of the country’s population will benefit, head of the Social Democratic Party (PSD) Marcel Ciolacu assured, quoted by News.ro.

Just over half of the financial cost of the package (52%) will be financed from the cohesion funds earmarked by the European Union for the 2014-2020 multiannual financial framework but not spent yet, the Romanian authorities explained. It remains unclear whether the EC’s permit was obtained in advance.

The Government maintains the deficit target, and the cost of the package will be financed from the better tax collection, finance minister Adrian Caciu assured.

Among the measures included in the package, meal vouchers will be distributed to low-income households, the Kurzarbeit subsidy will be maintained until the end of the year, and the minimum statutory wage will increase by RON 200 (EUR 40) per month, with all the taxes and social security contributions waived for the supplementary RON 200.

A minimum statutory wage of RON 3,000 (EUR 500) will be enacted for the sector of agriculture.

The companies hit by the war in Ukraine will receive grants, and the transport companies will be disbursed subsidies for the car fuel.

The construction contracts awarded by the state will have their prices adjusted to reflect the higher prices of the construction materials.

The bank loan moratorium for households and firms was not included in the final form of the package.

(Photo: Gov.ro)