Press Review - February 16, 2016

02.16.2016 By Gabriela Stan

Romania Consumer Prices Decline 0.8% in January, Inflation Rate at -2.1%

Romanian consumer prices declined 0.8% in January compared with December, bringing the annual inflation rate to -2.1%, the country's statistics institute said Monday.

Romanians paid 0.5% more for food items in January compared with December, while non-food items declined 1.6%, and service prices dropped 1.1%.

Compared with January 2015, consumer prices fell 2.1%, as food items were 6.3% cheaper, largely due to a five-point cut in the value added tax on food, in effect starting June 2015.

The central bank last week revised its inflation forecast and sees the indicator at 1.4% this year from a previous forecast of 1.1%. (Adevarul)

OMV Petrom Considers Restructuring Plan On Oil Price Slump

The oil price slump is forcing oil and natural gas producer OMV Petrom (SNP.RO) to consider restructuring, a step that will affect both projects and the number of employees, in order to navigate the volatile times that the international oil and natural gas industry is going through.

“A number of projects have been postponed or cancelled so, under the circumstances, a review is needed to adjust the organization to the current business needs. Considering the developments on the market, this review process is continuous and might lead, among other steps considered, to a reduction in the number of employees,” OMV Petrom officials stated. (Romania Libera)

Dragnea’s Defamation Law Criticized By U.S. Ambassador To Bucharest

The defamation law initiated by PSD president Liviu Dragnea was criticized Monday by U.S. Ambassador to Bucharest, Hans Klemm, who stated that “the protection of free speech, even if offensive, is a foundational aspect of a healthy democratic society”.

The ambassador added that the United States Government policy is clear: “While we condemn discrimination and hate, we also oppose laws that prohibit offensive speech at the expense of freedom of expression. As President Obama has said, <The strongest weapon against hateful speech is not repression; it is more speech—voices of tolerance that rally against bigotry...>.”

Liviu Dragnea said he agrees with the ambassador, adding that he will submit an amendment to eliminate the definition of social defamation from the bill. (Puterea)

Ford Trade Union Signs New Collective Labor Contract For 2016-2017

Ford Romania trade union signed a new collective labor contract valid between 2016 and 2017, according to the unionists’ representatives.

The new collective labor contract stipulates that the total wage income would be similar with last year’s level, a stipulation that the trade union representatives were discontent with. Nevertheless, the contract has already been registered at the Labor Inspectorate (ITM).

At the end of January, Ford management stated that it supports several changes in the collective labor contract, meant to help the Craiova-based plant become more competitive and more efficient. (Puterea)

PSD Submits Bill On Providing Allowances To Mothers Of Three Or More Children

The Social Democratic Party (PSD), led by Liviu Dragnea, submitted a draft law according to which mothers of three or more children will get special allowances and medals.

The bill was registered at the Chamber of Deputies under no. 37/15.02.2016. According to its initiator, PSD deputy Ninel Peia, “this is our chance to secure our future, to start building the Romania of tomorrow today, a Romania that we would enjoy living in, by encouraging birth rate”.  (Evenimentul Zilei)