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Sunday, 15 May 2022

Prime Minister Nicolae-Ionel Ciucă: Two-thirds of the measures of the “Support for Romania” programme are active

Prime Minister Nicolae-Ionel Ciucă:  "Most of the measures of the "Support for Romania" programme have been approved one month after its launch by the ruling coalition.

More than two-thirds of the support package, amounting to 17.3 billion lei, are active and effective. The implementation of these protection solutions for citizens and the economy involves funding from national and European funds worth 11.5 billion.

At the Government level, we have been able to approve most of the measures included in the "Support for Romania" programme within a month. Together with the Parliament and the leaders of the ruling coalition, we made sure that funds are available from the state budget and European resources for the implementation of the decisions to protect the Romanian citizens and the economy.

The news recently got from Brussels on the support from European funds for the social measures of this programme is followed by another decision favourable to our economy. Thanks to the efforts of Minister Bolos and the team of the Ministry of Investment and European Funds, the Romanian investors will benefit from another 412 million euros in the form of grants for productive activities. It is a new and necessary measure that we discussed with the entrepreneurs.

Visits in the country and permanent consultations with the business sector confirm that the measures we have taken are the right ones, but also the fact that we need to continue in the same pace and on the same line of balance, which will ensure the support of the Romanian economy and the protection of the population.

Through the measures included in the "Support for Romania" Program, adopted by the Government and the Parliament, funds of eight billion lei will enter the economy. Support will be extended to:

• Investments with a major impact on the economy, worth more than 1 million euros - this state aid scheme has 200 million euros available to stimulate regional development projects

• Companies in the road freight and passenger transport sector to offset rising fuel prices - 300 million lei

• Ongoing investment projects - through two Emergency Ordinances approved by the Government, 5.2 billion lei from national and European funds are made available to prevent possible blockages in carrying out projects due to rising prices for construction materials, equipment, and workforce

• Romanian farmers have at their disposal 300 million euros - grants for working capital, and agricultural workers, a sector in which the minimum wage has been set at 3,000 lei per month, similar to that in the construction sector.

 A substantial part of the package is aimed at protecting the population from the effects of rising prices and the difficult times we are going through so that no one is left behind. Social measures established so far through the "Support for Romania" Program have an impact of approximately 3.5 billion lei.

• The Government has recently approved the granting of social vouchers worth 250 lei to low-income people.

• Approximately 3 million people - retirees, people with disabilities, low-income families and the homeless – will receive these vouchers every two months, money they can use to buy food or, or a hot meal if they wish so. The total value of this program is 3.1 billion lei, and half of the money comes from European funds.

The food allowance for hospital patients and institutionalized elderly has been doubled by Parliament, from 11 lei/day to 22 lei/day. Over 3 million people will benefit from this measure.   The total value is about 270 million lei.

 

    The daily food allowance for children in foster care increases from 12 to 16 lei/day, respectively from 16.6 to 22 lei/day, depending on child's age. The value is about 86 million.

Technical unemployment has also been extended to employees of companies affected by the conflict in Ukraine, thus protecting their jobs.

The Government is further preparing the following economic and social support measures mentioned in the "Support for Romania" programme.

•    The Ministry of Agriculture is in the advanced stage of the project through which farmers will benefit from 200 million euros for the processing of raw materials in Romania. It's a measure that, alongside other measures taken in support of the agricultural sector, will have an effect on the prices of agricultural products.

•    The Kurzarbeit programme, which is now in force until early June, will continue in the next period.

•    It will stimulate the voluntary increase of the minimum monthly wage in the economy by employers, with 200 lei per month, through the exemption from the additional taxation on the increase. The measure will have an impact on 1.6 million employees

• Granting vouchers of 30 euros per month to students with social scholarships is another measure that the Ministry of Education has prepared.

• The Ministry of Family is preparing two draft legislative acts- a Government Decision and an Emergency Ordinance - which will implement support programs for young people and measures to protect and improve the lives of institutionalized children.

The Romanian Government will continue to act responsibly, using all the resources at its disposal - from the national budget or from European funds, to protect the economy and the population from the severe effects generated by the multiple crises we are facing at the European level. Supporting investment, and implementation of development and reform projects, alongside careful management of resources will foster economic growth and maintain the pace needed for the country’s modernization.



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