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THE WEEK IN REVIEW 17-23/11/2008
(2008-11-21)
Last updated: 2008-11-24 13:51 EET
Authorities in Bucharest on Wednesday adopted the first measures in a plan aimed at boosting economic growth and creating new jobs, so as to fight the effects of the global financial and economic crisis. The government decided that for 13 months, starting December the 1st, it would suspend the pollution charge for new vehicles. Facilities for the renewal of the national car fleet will also be kept in place. These measures are intended to protect the local car making industry and maintain jobs in this sector, against the background of a sizeable fall in the domestic and foreign demand. The government also took steps to encourage the creation of new jobs. Companies will receive one thousand euros for each job given to people who have been unemployed for at least three months. In the taxation field, as of January 1st, 2009, contributions to social security budgets will be cut down by two per cent, early tax payments would benefit from a five per cent reduction, and taxes will no longer be levied on reinvested dividends. The VAT will also be cut down for housing units of under 120 square metres and less than 100 thousand euros in value. The plan also includes measures addressing the banking system. Two such financial institutions will receive some 250 million euros to support small enterprises and farmers.



The European Commission encouraged EU states to fully open their labour markets to Central and Eastern European citizens, including workforce from the Union's newest members, Romania and Bulgaria. A Commission report on employment adopted in Brussels on Tuesday states that the Romanians and Bulgarians who have migrated to other EU member states since January the 1st, 2007 are not a threat to their host countries, since their number is a lot smaller than previously forecast. Moreover, the money these workers sent home contributed significantly to increasing their own countries' gross domestic product. According to the document, the destinations of choice for Romanians and Bulgarians looking for a job abroad are Spain (57 per cent) and Italy (26 per cent), and the favourite sectors include the agriculture, constructions, the hospitality industry and household services. The deadline for EU member states to eliminate labour market restrictions is December the 31st, 2011, but EU states are to announce their position on these restrictions by the end of next month. At present, the access of Romanian and Bulgarian workers is restricted in 15 countries: Austria, Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Britain, the Netherlands, Portugal, Spain and Hungary.



The Jiu Valley, in south-western Romania mourns the death of the 12 people killed in explosions last Saturday at the Petrila mine, because of methane gas leaks. Eight miners and four of the rescuers lost their lives and 14 others were injured. The tragedy in Petrila was a reminder of the labour safety and protection problems faced by the Romanian mining sector, a black hole for the Romanian public budget in the last few years. This year alone, subsidies for the Jiu Valley and other mining areas in the country have exceeded 100 million euros. The billions of euros already invested in revamping programmes did little to improve working conditions. An inquiry committee made up of prosecutors, experts and police is to establish the exact cause of the tragedy. Meanwhile, the mine management have been suspended.



Bucharest is hosting the 15th Gaudeamus International Book of Learning Fair initiated and organised by Radio Romania. The event was included by the European Commission in a broader programme devoted to the European Year of Intercultural Dialogue. About 400 participants, including Romanian and foreign publishing houses, education institutions, mass media, are presenting their offer until Sunday, December 23rd. The fair, which spans five days, also features book launches, conferences, exhibitions and prize contests. Some of the highlights this year are a debate entitled Turning Communism into Fiction and a seminar dealing with Multilingualism and the year 2008, the European Year of Intercultural Dialogue. The proceeds from the sale of ticket will be used to fund the project Nobel for Romania initiated by Radio Romania at the 2006 Book Fair. The project is designed to fund the release of literary works by young Romanian authors or translations into foreign languages, so as to help promote Romanian literature abroad.
 
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