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| The Week in Review 02-08/05/2011 |
| (2011-05-06) |
| Last updated: 2011-05-09 14:34 EET |
The new Labour Code has come into effect as of May 1st. While authorities expect the new legislation to make the labour market more flexible, trade unions and Social-Liberals in the opposition say the code breaches several international labour provisions, leaving employees vulnerable to employer abuse. The law, for which the Government has called for a vote of confidence in Parliament, provides harsher penalties for working under the counter, both for employers and employees. Penalties range from criminal fines, which have recently been swelled, to imprisonment. For certain offences, courts may order additional penalties, such as temporarily or permanently shutting down the institution where the offence has been committed.
According to the new code, the length of labour contracts over a definite period of time has gone up from 2 to 3 years, while trial periods range from 90 days at the most for low-ranking workers to 120 days for managerial positions. The maximum workweek length was set at 48 hours including overtime, which is to be paid with equal hours of time off within 60 days. The new code however brings benefits to both employers and employees. Layoffs are easier for employers, who can also temporarily reduce working hours and salaries when undergoing difficulties. In turn, employees will benefit from labour contracts, salaries, and pension, unemployment and health insurance benefits.
Bucharest and Washington officials have agreed upon the document under which the American military will deploy missile interceptors as part of the anti-missile shield in Europe. The text is to be signed and submitted to Parliament for approval this autumn. Following several rounds of talks, the group of experts from the two countries has decided that by 2015 the US military is to deploy some 24 missile interceptors and a high precision radar system in Deveselu in Olt county, as well as 200 American troops, a number that may be increased to 500. The overall costs of the operation stand at 400 million euros and will be shelled out by the American side exclusively. Romania is to provide an airbase and ensure the security of the anti-missile shield.
Romanian president Traian Basescu said that Romania only stands to gain from this deal: “Romania will have the highest degree of security in its history and from this point of view we can say that Romania has reached an important goal, that of ensuring its own long-term security, independent of circumstances.”
Although Romania and the US have repeatedly made it clear that the anti-missile shield has a purely defensive purpose and is not aimed at weakening Russia’s strategic system, Moscow officials have asked NATO to provide judicial guarantees that the American defence shield would pose no risks to Russia’s national security.
The National Bank of Romania has revised upwards its inflation forecasts for 2011, from 3.6 to 5.1%, and for 2012 from 3.2 to 3.6%. The governor of the National Bank of Romania, Mugur Isarescu has said the unfavourable evolution of the inflation rate has been primarily driven by increases in foodstuff and fuel prices, both on domestic and international markets. He has warned that even the revised estimates for the current year might be missed, because economic analysts didn’t take into consideration the elimination of thermal energy subsides (most likely than not to be made in autumn) or the future increases in electricity and gas prices. He has also said that a major inflationary imbalance in Romania is caused by the fact that the output does not cover domestic consumption and reforms should be continued for the economy to grow. The governor of the central bank has also said that an excessive appreciation of the national currency, the leu, helps disinflation on the short term, but it could bring disadvantages on medium and long term, and the central bank is interested in maintaining the exchange rate in a balanced area.
One more Romanian military has died in the line of duty, while on a patrol mission in southern Afghanistan. Corporal Constantin-Laurentiu Lixandru lost his life in the blast of an improvised explosive device, in the Zabul province. Military and religious ceremonies were organized on Friday in his honour, in all military units, both in Romania, and those deployed outside the borders of the country. 18 Romanian military have been killed and some 60 others have been injured since the inception of the Romanian mission in Afghanistan, back in 2003. The Romanian contingent in Afghanistan is made up of 1,770 military, most of them part of the International Security Assistance Force for Afghanistan, ISAF.
Bucharest is hosting the 15th European Film festival. For two weeks, cinema aficionados can watch over 50 films from 30 countries. The honorary ambassador of this year’s festival is Radu Muntean, who directed one of the most appreciated Romanian films in 2010, “Tuesday, after Christmas”, which has grabbed many prizes and has been selected to many festivals. The Republic of Moldova is participating for the first time in the festival, with a selection of student films. The European Film Festival is organized by the Romanian Cultural Institute, and the film selection has been made with the support of the embassies and cultural centres of the European countries. After May the 15th, the event will continue in other big cities across the country: Iasi, Brasov, Timisoara and Targu Mures.
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