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| The Week in Review |
| (2011-10-01) |
| Last updated: 2011-10-04 13:26 EET |
Romania withdraws its policemen and gendarmes from Kosovo.
Romania’s Higher Defense Council decided Monday to withdraw the 175 Romanian gendarmes and policemen deployed in the former Serb province of Kosovo after almost three years there. The Higher Defense Council pointed out that the details of the pullout process, which is to start in December, would be established with the European partners. Bucharest’s decision was motivated by the strengthening of security in the area and the decision was taken back in 2009. Romania actively participated in the mission aimed at providing security in the former Serb province although it is one of the few countries that did not recognize its independence. In early 2000 Romania deployed its first soldiers whose missions unfolded under the UN KFOR mandate. They were repatriated in 2008 and replaced by over 170 gendarmes and policemen. Their mission in Kosovo was appreciated by the heads of the EULEX mission, which operates under a EU mandate. Each year they granted the Romanians the medal for work carried out “In the service of peace”.
As of October 1st Romania has a new Civil Code which brings changes in business and private life.
As of October 1st 2011 Romania has a new Civil Code. According to the justice minister, Catalin Predoiu, the code was designed to systematize, simplify and render flexible contractual relations. It brings about important changes for both individuals and companies, banks and other firms. The code includes a number of regulations favorable to consumers, especially those who concluded banking contracts. Another novelty is the introduction of the FIDUCIA – a legal operation that transfers patrimonial rights. The new Civil Code also brings changes related to citizens’ private lives in the sense that it brings further protection to the family institution. Entering into an engagement to be married thus becomes an institution recognized by the state and breaking an engagement without well-founded reasons can be subject to fines. Also, spouses are obligated to contribute to household expenses in direct proportion to their income. Failure to live up to these obligations constitutes grounds for divorce, and may result in payment of damages. As regards minors, in the case of a divorce, the rule is that parents have by default common custody of children. They can both decide together on their children’s education and extracurricular activities. The New Civil Code also provides that a parent who leaves the family home without a good reason loses the custody of the children. Other aspects in the new civil code concern the possibility of fast track divorce by administrative means, which is only allowed when the spouses do not have underage children. Legislation is also introduced pertaining to in-vitro insemination.
After a 3 year presence in Romania, the Finnish mobile telephony company Nokia has announced its intention to close down its factory in Cluj, in December.
Some 2,000 Romanian employees will be made redundant, following the decision made by the Finnish cell phone producer, Nokia, to close its factory in Cluj, central Romania, by the end of the year. The company has decided to relocate part of its production to Asian countries, in an effort to reduce costs. The factory in Cluj was inaugurated in 2008, and the total value of the investment was 60 million Euros. Last year, Nokia Romania registered a turnover of some 1.5 billion Euros. Nokia’s withdrawal will have an effect on the Romanian economy, as the Finnish investment contributed 0.25% to Romania’s GDP. The closure of the factory prompted PM Emil Boc to call a special government meeting, after which the government announced Romania is already holding advanced negotiations with major investors to compensate for the withdrawal of the Finnish company from Romania. However, president Traian Basescu has warned decision makers that other big multinationals might leave Romania.
Traian Basescu:” We will even lose the potential investors that we have, both those who want to carry out geological prospecting in the Black Sea and on Romania’s territory, to locate gas and crude oil deposits, and those who want to exploit gold, silver or copper, unless we eliminate red-tape and have the courage to make important decisions.”
The opposition has also accused the government of failing to comply with the commitments it made to Nokia.
The IMF approves the disbursement of a new payment, worth 480 million Euros, to Romania.
The IMF managing board has approved the second assessment of the new precautionary agreement with Romania and will make a third payment available to the country, worth 480 million Euros. The IMF writes in a communiqué that the Romanian authorities have embarked on the right path to reaching the fiscal targets set for this year, but it considers that the goal of getting a budget deficit of only 3% of the GDP will be difficult. The IMF believes that faster progress is needed in the effort to absorb EU funds and reform state-owned companies, and all risks related to the banking system should be closely monitored. In March, Romania signed a 5 billion Euro precautionary agreement with the IMF, the EU and the World Bank.
Romanian football teams put on a modest performance in the European cups’ matches.
The three Romanian football teams which represent Romania in the Europa League, Steaua and Rapid from Bucharest and FC Vaslui, have seen modest performances, obtaining two draws and a defeat. Steaua ended the match played in Cyprus with AEK Larnaca 1-1, whereas FC Vaslui ended the match with the Swiss side FC Zurich 2-2, on home soil. Rapid was defeated on its own turf, 3-1, by the Dutch team, PSV Eindhoven. The final match of the competition, scheduled for May 2012, will be hosted by Bucharest. Romania’s defending champion, Otelul Galati, lost to the Portuguese side Benfica Lison 1-0, in a match played in Bucharest on Tuesday, and counting for the Champions’ League Group C.
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