site.btaRomania Plans to Pour Billions of Euro in Anti-crisis Measures

To deal with the effects of the economic crisis and rising prices resulting from the COVID-19 pandemic and the war in Ukraine, the incumbent coalition devised a programme called Support for Romania worth a total of RON 17.3 billion (EUR 3.5 billion).

The instrument, including social measures and support for SMEs in the food industry and farmers, will be funded from the state budget (RON 8.3 billion) and European funds (EUR 9 billion) under Operational Programme Support for Disadvantaged 2014-2020, as well as under Operational Programme  Inclusion and Social Dignity 2021-2027.

Social vouchers in the form of RON 250 (EUR 50) debit cards for over 2.5 million Romanians will begin to be distributed as of June 1. Pensioners, people with low income, single-parent families or low-income ones with two or more children, disabled and homeless stand to receive the aid every two months until the end of the year via Romania Post. The support is to be used to buy such things as staples and hot meals, or essential kits for babies.

Presenting the programme in April, Prime Minister Nicolae Ciuca said the measure aimed support for the economy for smart economic growth, social inclusion and generation solidarity. He assured no one would be abandoned. 

The Social Democratic Party, the largest power-sharing force, said 12.3 million Romanians would avail themselves of the social measures.

The Start a Family programme for young families provided for 80% state guarantee on loans up to RON 75,000 (nearly BGN 30,000) for creche, kindergarten, school, extracurricular class fees, rent or downpayment for purchase of housing.

In support for business, the measures target SMEs, large investor, hauliers and distributors. Current public investments have not been forgotten either. The authorities said these beneficiaries will be eligible to receive EUR 300 million to compensate for the price hikes, as well as aid of up to EUR 400,000 per SME for utility overheads in view of the spiking prices.

High-performing investments are set to be supported with EUR 200 euro. To boost investments, the Support for Romania programme will provide state aid exceeding EUR 1 million apiece. 

State aid will also be extended to road hauliers, passenger transport and distribution companies in the form of RON 0.50 (about BGN 0.20)/litre fuel at filling station price.

Then again, the government decided to extend the aid of 75% of paycheck for technically unemployed introduced during the COVID-19 pandemic until the end of 2022. The Kurzarbeit programme for reducing working hours, with the state compensating for deferred salaries partly or in full, will also be continued after May 1.

Farmers will be supported with funds provided for processing their produce in Romania and a 10% premium of the value of the processed products. Also, a RON 3,000 (BGN 1,187) gross minimum wage in agriculture and the food and drink industry was approved in Bucharest, like the one in the construction sector.

As of August 1, 2022 EUR 100 million from the state budget will be extended for the capitalization of the UNIREA commercial corporation engaged in the wholesale and retail trade, export and import of agricultural goods like cereals, fruit and vegetables, dairy products.

A 9-month deferral of bank interests for financially strained individuals and businesses will become effective on July 1 and one-time aid of RON 700 (BGN 277) will be extended to pensioners with pensions under RON 2,000 (BGN 791), i.e. about 3.2 million Romanians.

The programme was criticized from several directions. MEP Dragos Pislaru from the opposition Save Romania Union said it would have been better to update the minimum wage by the inflation rate rather than hand out vouchers. 

In turn, the acting leader of the Save Romania Union, Catalin Drula, said that instead of reducing the budget deficit, curbing loans and controlling inflation, the incumbent coalition was only increasing costs and giving empty promises.