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According to the Ponta cabinet, the measures are included in a plan to cut public expenditures, a plan through which the Executive seeks to save RON 1.86 bln this year.
During yesterday’s meeting the government decided to no longer allow public institutions, autonomous agencies and state-owned companies to sign consultancy services and legal assistance contracts if they already have their own qualified personnel and to force them to cut their expenditures on personnel and travels abroad by 30 per cent. The same interdiction was placed when it comes to local authorities signing internal public audit service contracts offered by physical persons. “These are expenditures we criticized while we were in the opposition and we don’t want to continue after we’ve come to power,” Premier Victor Ponta stated after the government meeting that marked his first month in office. He pointed out that this was not a honeymoon, being “a bitterer month.” The government was invested by Parliament on May 7. In his turn, Finance Minister and BNR First Deputy Governor Florian Georgescu pointed out that lowering protocol expenditures and expenditures on trips abroad could permit a RON 60 M cut in public expenditures. Florin Georgescu categorically denied the possibility that the EUR might reach the RON 5 threshold. “The Greek crisis resulted in investors pulling their money out in order to place them where they believe they are safer. The RON however is faring better than other regional currencies because the bases of the Romanian economy are better,” Georgescu stated. The Finance Minister reiterated the statement that BNR Governor Mugur Isarescu made yesterday, statement according to which BNR could defend the RON 5/EUR threshold if the depreciation continues. Georgescu added that he remains optimistic about this year’s economic growth even though the European press is talking about recession.
At the same time, the government ordinance adopted yesterday also stipulates that ministers, delegated ministers, the government’s secretary general, secretaries of state, undersecretaries of state, mayors, deputy mayors, the presidents and vice presidents of county councils, local council members as well as high officials can be accompanied by only two persons at most during trips abroad. The delegations of ministries, of the government’s general secretariat, of public institutions subordinated to the government or to ministries, of local administration institutions and public authorities can only consist of two persons at most too. All these measures were included in a plan to cut public expenditures, a plan through which the government stakes on saving RON 1.86 bln this year.
Extra guarantees for “first house”
Also yesterday, the government approved the Finance Ministry’s initiative to hike by EUR 200 M the ceiling of guarantees available for the “First House” programme, a ceiling that will be tapped only by the banks that have already exhausted the sums earmarked in the last stage but want to continue offering loans by covering 50 per cent of the risk. The document shows that financiers have the obligation of notifying the National Fund for Guaranteeing Loans for Small and Medium Enterprises (FNGCIMM) and the Finance Ministry about their intention to tap into the ceiling for 2012 at least 30 days before the date on which they estimate they will offer the guarantees up to the limit of the reusable ceiling established through previously signed protocols.
Correcting clawback tax law
The government also adopted an ordinance on modifying and completing the framework-contract concerning the conditions of offering medical care. Premier Victor Ponta stated that this is an attempt to correct “what was erroneously legislated and implemented in the case of the famous clawback tax.” “This continues to be one of our top priorities. On the other hand we have an already adopted legislation, demanded and basically assumed in all of our negotiations with international financial institutions. This tax is fundamentally stipulated in the area of revenues for the health fund. On the other hand norms that are difficult to implement in practice have been adopted and we want to have a cooperative attitude towards pharmaceutical drug producers in order to make sure these drugs continue to be at the disposal of hospitals and of the sick,” Ponta stated.
Talks in vienna on natural gas price liberalization
Premier Victor Ponta announced that he will pay an official visit to Austria on June 18 and will use the opportunity to discuss with the representatives of Austrian natural gas and oil companies that have investments in Romania, the talks set to touch on the timetable of liberalizing the price of natural gas too. He pointed out that this timetable has to be discussed with natural gas companies too. “In the following period, together with the Finance Ministry, we will fulfill what we set out to do in the agreement with the IMF and the EC, taking into account however other obligations too, as well as an infringement procedure vis-à-vis Romania’s interlink with Bulgaria and Hungary and the possibility of exporting Romanian natural gas,” Ponta stated.
Kover: I see no impediment to achieving autonomy in Transylvania
Posted: 06 Jun 2012 11:47 AM PDT
The Speaker of the Hungarian Parliament stated that Romania has the right to expel an EU citizen if he breaks the law but considers that he did not break the law in the past nor does he plan to do so in the future.
Kover Laszlo, the Speaker of the Hungarian Parliament, stated on Tuesday evening during a press conference in Targu Mures that he sees “no impediment” to achieving autonomy in Transylvania, where 1.5 million Hungarians are living, stating that this is a reality in other European countries too. “In Transylvania there should first of all be a fight for autonomy and only then should there be talk of support. If we look at several countries that have various forms of autonomy – Sweden, Finland, Spain, possibly Belgium – we have to admit that it’s a reality, I don’t see any impediment to achieving it,” Kover said, being quoted by Mediafax. He added that Hungarians in Serbia “have achieved the most” when it comes to autonomy and the country did not fall apart because of that.The Hungarian Parliament Speaker said yesterday, while at Odorheiu Secuiesc, that he ‘was hurt by the spirit of distrust’ felt from some of the incumbent Romanian government members, but considers that such an attitude is determined by the fact that the current cabinet ‘is disturbed probably’ with the good relations between Hungary and the former executive. Asked for his comments on Premier Victor Ponta’s statements according to which the Romanian Foreign Affairs Ministry can declare him “personae non gratae” if he breaks the law, Kover stated that he did not break the country’s laws in the past nor does he plan to do so in the future. “I consider that the expression used, that of irresponsible behavior, has a political connotation, but I want to behave appropriately nonetheless. But we have to admit that everything I do and say can’t always be on the Prime Minister’s liking,” the Hungarian official stated. Asked whether Romania and Bulgaria are on the threshold of a diplomatic row following the recent row surrounding the reburial of Hungarian poet Nyiro Jozsef, Kover stated that “there certainly is” a discussion between the Hungarian Parliament and the Romanian Head of Government. According to him, a country’s government can express its disapproval but he can guarantee that Nyiro Jozsef’s reburial will respect Romanian law. Asked about the ‘Der Spiegel’ article in which the Hungarian government is accused of seeking to rehabilitate Horthyism in Hungary, Kover stated that Nyiro Jozsef’s reburial was meant to be “a gesture of reverence towards his literary art” and he did not even suspect that there will be “difficulties.” The Prime Minister asked Ioan Rus and Andrei Marga to not hesitate to propose measures against Kover in case he violates “any national or European rule.” “At the same time, I ask you all to show that we are more rational and better diplomats and not to allow ourselves to be provoked,” the Head of Government added. “If I want to build a statue to Louis of Anjou, do you think I want to rehabilitate feudalism? (…) If we make a gesture of reverence towards Nyiro’s literary art that doesn’t mean we want to praise his political blunders. Romanian literature too has persons like Mircea Eliade, who has a member of the Iron Guard,” Kover pointed out.Also in Odorheiu Secuiesc, the state secretary with the Hungarian foreign ministry Zsolt Nemeth said: “we are witnessing unilateral decisions taken by the Bucharest government, decisions that influence the Magyar minority’s interests,” politics.hu informs, quoted by realitatea.net. Nemeth accused PM Ponta for failing to initiate talks with his Hungarian counterpart Viktor Orban during the latter’s last week’s visit to Bucharest, as – in his opinion – the Romanian executive should have initiated the talks.
Ponta: Provocations like the ones in Kover case have long-term target
Premier Victor Ponta asked the Internal and External Affairs Ministers yesterday to maintain a firm position towards Laszlo Kover, pointing out at the same time that the Hungarian official’s actions have a long-term goal but that Romanian authorities are “smarter” and will not fall for provocations. “We have to defend our national interests, things that concern our identity and presence in Europe,” Ponta stated at the start of the government meeting. On Tuesday evening the Prime Minister stated that Kover’s arrival in Romania in order to campaign for an extremist party is reprehensible but that he nevertheless hopes he will at least respect the law “because he seems to have trampled over the norms of good neighborliness.”
“I don’t want to create a conflict over the irresponsibility of a single person, even though that person is an important official and even though it is obvious that his recent activity has absolutely nothing to do with good relations between two neighboring countries, nor with the fact that we’re living in the EU,” Ponta pointed out.On the other hand, PNL President Crin Antonescu stated that Hungarian Prime Minister Viktor Orban would like for Hungarians living in Romania to lose their representation in Parliament, that being the reason behind his encouragement for UDMR’s competitors (PCM and PPTM – editor’s note). Antonescu gave the example of Slovakia, a country in which such a strategy worked, and added that Romanian parties should do everything possible in order to block this end-goal, being of the opinion that “UDMR is the party that represented ethnic Hungarians in a reasonable relation with other Romanian parties.” In his opinion, President Traian Basescu should have come out with a statement following his talks with the Hungarian Prime Minister at the end of last week, considering the “injury” caused to the Romanian state’s interests.
The substratum of Kover’s visit to Transylvania
Laszlo Kover is one of the founding members of FIDESZ, Hungary’s ruling party. Kover represents the far-right faction of FIDESZ, his vision and discourse placing him close to the far-right party Jobbik. According to Hungarian Spectrum, a blog quoted by HotNews, Kover is seen as one of Premier Viktor Orban’s close advisors from within FIDESZ, a kind of “eminence grise when it comes to political strategy.” The Speaker of the Hungarian Parliament supported the establishment of the Civic Magyar Party (PCM) whose honorary president he is, having close relation with PCM leader Sasz Jeno.Kover’s visit to Romania and his involvement in the elections campaign takes place against the backdrop of FIDESZ’s collapse in opinion polls and the rise of socialists, the aforementioned source adds. Moreover, this year’s elections represent a first for the Hungarian community in Romania, UDMR facing the competition of two other parties: Sasz Jeno’s PCM and Laszlo Tokes’s PPMT (Magyar People’s Party in Transylvania – editor’s note). PCM and PPMT are both backed by FIDESZ, but each by different factions of the Hungarian party. HotNews journalists also claim that the purpose of such an aggressive involvement in Romania’s elections campaign is “a long-term goal” in view of the 2014 elections in Hungary. By offering ethnic Hungarians the Hungarian citizenship FIDESZ is hoping to win the votes of Hungarians living outside Hungary and thus to extend its electoral pool. Until now, according to April 2012 data, 250,000 ethnic Hungarians from Romania have asked for the Hungarian citizenship. 175,000 have already obtained it. In the short run, FIDESZ’s involvement in the Romanian elections campaign seeks to weaken UDMR.