Statements by Prime Minister Marcel Ciolacu at the beginning of the Cabinet meeting Friday, 27 October 2023

Statements by Prime Minister Marcel Ciolacu at the beginning of the Cabinet meeting Friday, 27 October 2023

Marcel Ciolacu: Today, we adopt a measure through which we continue to protect the purchasing power of Romanians, especially during winter time when we know all that expenses are higher.

We are extending the capping of markups on some staple foods for another 3 months and we extend this measure to a further number of product categories, from 14 to 21.

INS(National Institute Data) data show us that the measure had the expected effects. We have stopped the excessive increase in food prices, and for many of the products on the shelf list, there are substantial price reductions. That is why we have every reason to continue this measure, which especially protects middle- and low-income families.

In addition, we are also introducing a maximum 5 percent cap on the markups on edible oil, sugar, flour, cornmeal, pork, chicken, and beef imported in bulk and not processed in Romania, and I am telling you very clearly that this government cannot support the speculative practice of some who import cheaply and sell expensively, taking advantage of the fact that that product is necessary for the daily living of any family.

We also approved today a series of measures to reduce budget expenditure for the year 2023 to fit into the budget deficit target assumed through the Convergence Program.

I said from the very beginning that the state must be the first to save. That is why we are limiting and reducing budget spending until the end of this year. We must keep the deficit under control and not jeopardize the European funds or the NRRP.

To be clear, this normative act does not apply to the expenditure on medicines and sanitary materials, medical services, healthcare actions, and programs, as well as to the expenditure related to pre-university and university education units.

Also, these price –caps do not apply to projects financed by European funds.

To complete them, the Government will make allocations from the Reserve Fund. The Minister of Finance, Mr. Boloș, will detail it after the Cabinet meeting.

Today, we not only aim to reduce budget expenses but also increase the absorption of European funds. We support the completion of more than 2,800 projects financed by non-reimbursable European funds, which must be completed by the end of this year, by granting loans from the Treasury to municipalities, within the limit of 1 billion lei.

At the same time, we are unblocking a situation that has been dragging on for years, we allow the transfer of confiscated buildings to local authorities as a result of court rulings in criminal matters, but not valued, to recover the damage. Thus, with a series of extremely clear conditions imposed by the Ministry of Justice, local communities will be able to take over these buildings to develop new investment projects for the benefit of their communities.  Mr. Boloș will detail this project as well.

 I see that Mr. Grindeanu continues his work in the infrastructure area. On today’s agenda, we have a series of expropriations, necessary to carry out infrastructure projects of national interest: the express road that connects Satu Mare to the border with Hungary, as well as the bypass road in the Southern part of Timisoara.

At the same time, we allocate additional funds for the co-financing of large infrastructure projects that have the same purpose as in the case of the 2800 ATUs(territorial administrative units) projects at the end of this year.

 We saw the abnormal situation that led to low-grade students receiving merit scholarships. This cannot be further accepted. I spoke with Minister Deca and the education unions. We hope to have a solution as soon as possible through which the merit scholarship reflects school performance. And a very clear distinction should be made between merit and social scholarships, which have as their destination the reduction of school dropouts. Finally, we will adopt the Government Decision by which we support Romania’s candidacy to host the UEFA Europa League final in 2026 or 2027.

 I hope we can repeat the 2012 moment when the National Arena hosted the final of the same competition. Thank you!

Source: www.gov.ro

Statements by Prime Minister