Press Review - July 7, 2017

07.07.2017 By Oana Gavrila

Biggest Textile Industry Employer In Vaslui Threatens To Close Plant

The PSD (Social Democrat Party) government’s intention to raise the minimum wage by 38% as of next year (from 1,450 lei or EUR316 to 2,000 lei per month in gross amount) is seen differently by the actors in the economy.

The companies doing toll manufacturing, which is a low margin business, threaten to close their plants if the planned hike goes through, while others say the step is beneficial if it stimulates consumption of Romanian products.

“If the minimum wage goes up as announced, we will close the plant, because we cannot swallow these costs. We’ve been on the market for 22 years, we have 600 employees now and the entire site employs more than 1,100 people who will be left without a job if the gross minimum wage increases to RON2,000,” said Luiza Iacob, shareholder and manager of the apparel manufacturer Pancarprod in Vaslui, the largest textile industry employer in that county, which exports its products to France.

The gross minimum wage hike from RON1,250 to RON1,450 per month in February was hard to take, Luiza Iacob said, adding foreign customer companies would not be willing to pay higher prices and would rather go to other markets such as Morocco in case their costs with suppliers in Romania went up. (mediafax.ro)

Auction Launched for Craiova-Pitesti Expressway

Romania's roads authority has launched public procurement procedures for the design and execution of an expressway linking Craiova to Pitesti for EUR820 million.

The 121 km road will be split into four sections. The project phase should take 12 months and effective road building should take another 24 months.

Interested contractors have three months to submit their bids. (mediafax.ro)

Iohannis Attends Threes Seas Initiative Summit in Warsaw

Romanian President Klaus Iohannis is attending the Three Seas Initiative summit in Warsaw, Poland, where US President Donald Trump is a special guest.

The Three Seas Imitative summit brings together leaders of the countries bordering the Adriatic, the Baltic and the Black Sea.

"Preşedintele Klaus Iohannis participă la Summitul „Iniţiativei celor Trei Mări”. Donald Trump, invitat special" (mediafax.ro)

Dragnea Demands Explanations From Tax Authority Over Impromptu Newsroom Visit

Social Democrat party leader Liviu Dragnea demanded explanations from the finance minister and tax authority chiefs regarding an impromptu visit by tax inspectors to the newsroom of Rise Project Thursday.

Rise Project, part of the Organized Crime and Corruption Reporting Project (OCCRP), has published investigative pieces regarding Dragnea.

Dragnea said he had no prior knowledge of the check-up and he was outraged at the situation. He called on the finance minister to explain the situation publicly. (mediafax.ro)

Permit Issued to Link A3 Highway to Bucharest

Romania's roads authority said in a press release Thursday a building permit has been issued for works to link A3 highway to Bucharest.

Works are estimated at nearly RON22.6 million. (mediafax.ro)

Government Halts Hiring in Public Central Administration Until Yearend

The government wants to freeze hiring in the central public administration until the end of the year, according to a draft ordinance up for public consultation on the Regional Development Ministry website.

Authorities say the hiring freeze will allow for an analysis of institutional organization and plans to best use available human resources.

The draft allows exceptions from the hiring freeze in the case of diplomacy, the judiciary and the EU fund management.

The draft is under debate until July 16. (mediafax.ro)