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| The Week in Review 27/02-06/03/2011 |
| (2011-03-05) |
| Last updated: 2011-03-07 20:32 EET |
The future labour code for which the government decided to assume responsibility, which involves a vote of confidence in parliament on March the 8th, has flared up protests in several cities across Romania. As of Monday the biggest trade unions in Romania began picketing the prefect’s offices in the country, adding they are getting ready to launch an all out strike.
According to the protesters, the new labor code is infringing international legislation limiting the employees’ rights, while several of its provisions would permit abuses from employers. In response, the government is urging the Romanians to patiently wait for the positive results inherently resulting from the implementation of the new labor code.
According to Prime Minister Emil Boc, one of the positive effects is a flexible labour market where the Romanians may easily get a job and even afford a second one. Under the new code, employers who hire more than 5 people without a labor contract might be sentenced to 1-2 year imprisonment, can receive criminal fines, or can lose all forms of assistance, the right to receive EU funds and are banned from public procurement.
The document also provides for the duration of the labour contract for a definite period of time to increase from 2 to 3 years, for the trial period for a working position to go up from 30 to 90 days and for executive positions to go up to 120 days. The maximum number of working hours further stands at 48 hours per week, extra time included.
The maximum amount of time spent at the office remains 48 hours per week including extra hours. The opposition, which says the new code introduces a form of modern slavery, girds up for a no-confidence vote.
The ruling coalition in Bucharest, made up of the Liberal-Democrat Party, the Democratic Union of Ethnic Hungarians in Romania, the National Union for the Progress of Romania – jointly with the group of national minorities, other than the Hungarian one- have this week signed an executive and legislative cooperation agreement until 2012.
According to the signatories, the purpose of the document is to ensure a consistent economic growth. According to the document, the main objectives are to lower tax rates, revise the Constitution, bring Romania into the Schengen zone, and speed up the country’s capacity to absorb European funds.
The opposition parties - which recently merged into the Liberal-Social Union (USL) with the declared aim of replacing the government - may view the newly signed document more like an opportunist move, circumstantial and ungrounded.
The opposition, made up of the National-Liberals, the Social Democrats and the Conservatives a month ago signed a long-term agreement, banning any collaboration of the three political groups with the ruling party. USL leaders have also set their economic and social priorities, including the creation of new jobs, reducing tax rates and attracting foreign investment.
The scandal of corruption escalated in Romania after over 150 customs agents and border police officials were taken into custody. Major figures in the customs hierarchy and National Fiscal Authority are in the spotlight as part of this initiative. An Italian businessman, under suspicion of tax evasion worth tens of millions of Euro, filed a complaint with the National Anti-Corruption Directorate in which he claimed he was blackmailed by public servants who told him he could not conduct business in Romania unless he paid hefty bribes.
The Italian named personally the head of the Fiscal Authority, Sorin Blejnar, and the head of the Border Control Department, Viorel Comanita. The two denied transport of 900 tons of cigarettes without VAT and excises by the Italian businessman, which forms the basis of his indictment.
Lately, Blejnar has been repeatedly accused by opposition politicians as well as by former and present customs employees of being the mastermind, behind corruption in customs, which he repeatedly denied. After the accusation, on Wednesday magistrates decided to take into preventive custody a top adviser with the National Fiscal Agency and a lawyer specializing in financial consultancy. The amount of bribes involved is close to two million Euro.
Ford has officially launched the small sized B-Max concept car, which will be produced exclusively by the company’s factory in Craiova, south-eastern Romania.
The car was introduced this week at the automotive sjow in Geneva. Wolfgang Schneider, vice-president of the American automotive maker for Europe, said that Ford will keep its promises with regard to manufacture in Romania. In addition, in 2012 a number of long term investments will be initiated, for a total of up to one billion Euro.
Under the agreement signed by Ford with the Romanian state, the factory in Craiova will be equipped with gear allowing it to manufacture up to 350,000 cars per year. Around 80% of the production in Craiova will be exported.
All the Romanian citizens who were in Libya when the social turmoil began and who requested evacuation have been flown home this week.
735 people were involved, most of them taken out by two Romanian aircraft. The cost of the evacuation reached 200,000 Euro, which the Romanian government provided. Romanian foreign minister, Teodor Baconschi, has said that the evacuation showed conclusively that the Romanian state protects its citizens.
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