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May 26, 2022

Gov’t convenes to take measures for the economic environment affected by the coronavirus crisis. PM Orban: Measures to shoulder companies’ financial effort with furloughed employees

The Romanian Government has convened on Wednesday for the first time since President Iohannis declared, on Monday, a state of national emergency in Romania.

The meeting is held via a teleconference platform and will focus on economic decisions, given the effects of the Covid-19 pandemic. The Government intends to increase companies’ liquidities and to support the employees that are in furlough. Also, the deadline for the payment of local taxes will be extended and capacities for the production of sanitary materials and disinfectants will be enhanced. The financial impact of these measures is estimated at some 2% of the country’s GDP for the next three months, the Finance Minister Florin Citu has announced on Facebook.


Minister of Labor: We will soon take support measures for the employees in technical emplyment


The Government will soon take support measures for the employees of the companies that are facing a difficult situation caused by the economic effects of the coronavirus epidemic, the Minister of Labor and Social Protection, Violeta Alexandru, said on Wednesday on her Facebook account.

The Minister of Labor used the hashtag # technicalunemployment in her post, indicating that the support measures will target the employees who are entering technical unemployment.

Violeta Alexandru also said that a considerable governmental financial effort will be required to enforce the law of free days.

“There are domains in which the activity cannot be interrupted. For these, with considerable financial effort, because there are much more days off than what the legislator had in mind (such as weather conditions that determine the closure of schools) I have thought of solutions. I thank all those who, under conditions of maximum protection, continue their activity. Romania cannot shut down, each of us and all of us, we need resources. They come when people work in Romania, in a flexible program, from home, as part of teleworking activity. All our partners, all Romanians, must know that they are not going alone through this difficult period,” said Violeta Alexandru.


PM Orban: We’ll adopt measures to shoulder companies’ financial effort with furloughed employees


Prime Minister Ludovic Orban said that the measures the government is about to adopt at its Wednesday meeting envisage, among others, shouldering the financial effort with furloughed employees, and that the measures designed by the Executive concern the support provided during the furlough period.

“Many affected companies were faring very well, operating in good conditions, with profit and duly paying their taxes; they are now affected by a situation that we consider to be momentary. Not supporting these companies during this period which, I repeat, will be limited in time, means to condemn them to lose their employees because once the work contracts are broken and the employees are laid off, the possibility for these businesses to restore their personnel will be very small,” Orban explained.

“We will clearly have to inject money into the economy, we’ll have to increase investments, increase financial allocations to support a broad investment program. We will have to take measures allowing companies to develop in areas with opportunities for development, enabling them to provide an adequate response to the various demands from the current market. As you know, the Minister of Economy is already in very close communication with the companies that can develop their capacity to produce materials, substances, equipment needed in the current crisis, and it would be a shame not to use today’s demand in order to enable certain Romanian businesses to produce what the system that battles the coronavirus needs to work properly,” said Orban, according to Agerpres.


Romanian carriers, to be able to carry out their activity under normal conditions


He also said on Wednesday that the fluidity of the freight transport will be ensured, and Romanian carriers will be able to carry out their activity under normal conditions.

“Following a personal discussion with the Hungarian Prime Minister, Viktor Orban, I was officially informed that the situation with the transit in Hungary will be regulated. As regards freight transport, there will be no restrictions, and as far as passenger transport is concerned, people’s transport will be allowed every day in convoy between 21:00 and 5:00 hrs in the morning, Hungary’s time, for citizens who want to transit through Hungary from Western Europe. We know very well that there have been problems in Slovenia, we have had problems with the transportation of goods in Serbia, I can inform you that, at the present time, from all the official information we have, we can practically say that the fluidity of freight transport is ensured and that the Romanian carriers, who are essential in ensuring economic ties with the other European countries, will be able to carry out their activity under normal conditions,” said Ludovic Orban.


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