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Thursday, 23 June 2022

Press briefing at the end of the Cabinet meeting of June 23, 2022

Statements by Prime Minister Nicolae-Ionel Ciucă at the end of the Cabinet meeting

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Nicolae-Ionel Ciucă: The Romanian Government continues to implement the necessary measures to protect citizens and the economy from the effects of the crisis we are going through.

For Romanian citizens and companies to pay less for fuel, we have identified with specialists a fixed subsidy solution of 0.50 lei off the pump prices that will be applied directly at the pump. In support of the partnership between civil society and the government, the government and the population, as well as the business environment, we have decided to implement this measure adopted by other countries so far. It is a measure involving both the responsibility of the government and the oil companies. I said that it is a measure enforced in other countries as well, we are talking about Spain and France.

Half of this reduction will be provided by the state through a mechanism that will be implemented between distributors and line ministries. The mechanism by which we ensure the stability of fuel prices will be enforced for three months.

The compensation is listed separately on the tax receipt issued at the gas stations. The value of the compensation package for this period will be 2 billion lei,  with half of this money from the state budget.

This measure is part of the package to protect citizens and businesses and aims to reduce the effects of rising inflation and the effects of the multiple crises we are going through.

Of course, at the end of this period, we will consider whether a new set of measures is needed.

Furthermore, I want to mention that we also have a useful instrument available- the ordinance to combat speculative effects - by which we will ensure a high level of consumer protection against unjustified price increases.

The measures that we will take are part of an effective mechanism for the next three months, as aforementioned, they do not impact the investment budget in any way.

The Government will maintain the target of 7% of GDP for investments, respectively 88 billion lei. At the same time, we will intensify efforts to absorb the money provided by European funds, both through the multiannual financial framework and through PNRR.

Today, during the Cabinet meeting, we decided to recognize the performance of our athlete David Popovici. Given the exceptional performance, we decided that we should show a matching recognition and allocate him from the Government Reserve Fund the amount of one million lei. Thank you.

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