Mrs. Ioana Muntean

The meeting has come to an end. Prime Minister will speak to you about the emergency ordinance on the regulation of technical unemployment, together with Labor Minister, Mr. Seitan who will also give you clarification on some aspects pertaining to this legislative act. Minister Predoiu will speak to you about the commission for the monitoring and fulfillment of objectives included in the mechanism of cooperation and verification. Minister Borbely will give you details about the Water Law and the budget of incomes and expenditure for the Environment Fund Administration. Please, Mr. Prime Minister.

PM Emil Boc
We adopted the normative act whereby we regulated the technical unemployment for 2010. Through this normative act, nearly 200.000 jobs will be saved, meaning that during temporary suspension of the activity of a plant, economic agent, for three months, the state takes over the payment of social security contributions of employer and employee, and the employee receives 75 percent of salary during these three months.
We decided to take this measure knowing that at least in the first part of 2010, there are still difficult economic conditions, and we want to provide a direct aid to firms in order to keep jobs and implicitly to Romanians to have a job, so that we overcome with the least social costs this yet difficult period.
Over the next period, we will take other measures as well backing the business environment with a view to creating and keeping jobs. Secondly, we adopted the normative act at the proposal of the Environment Minister for passing the budget of the Environment Agency Fund. It is important from the perspective of the fact, that, on the basis of passed budget, the programmes we announced can be carried out over the next period: “Car scrap” programme that refers to legal entities as well, can extended to tractors. Within a time interval Minister will present, 15 days for “Car scrap” programme, vehicles can be purchased, and taking into account the contents of the normative act, obviously the tractors can be purchased afterwards. I hope that via these legislative acts, we can back economic activity via state direct intervention so that we can overcome this difficult period.

Reporter
Have you discussed about the amendment of the civil servant status?

PM Emil Boc
We adopted a normative act as draft law for the compliance of legal provision in force with the Constitutional Court’s decision.

Reporter
When does the ordinance with technical unemployment take effect?

PM Emil Boc
As of February 1st.

Reporter
Does it not mean it acts retroactively if …?

PM Emil Boc
There is no problem with its enforcement during the current month.

Reporter
The companies using technical unemployment do they have to entirely suspend their activity?

PM Emil Boc
Totally or partially. There is a mention in the normative act with respect to this aspect. Thank you.

Mrs. Ioana Muntean
Thanks, Prime Minister.

Minister. Mihai Seitan
I am not going to enter into more details than what Prime Minister presented. I want to give few details pertaining to the same normative act, on the measures to reintroduce the aid in the technical unemployment sector. It functions for 90 day, during this year, as of February. The salary payments about to be usually made in March, for February, the law can be applied for the entire month, in these conditions. Only 75 percent is paid by employers from the basic salary of the post, and the state covers the social contribution difference, of all types – either it is about pensions, unemployment, health, professional risk, including the guarantee fund of salary debts. Furthermore, the income tax is exempt from payment.
We made some calculations. The appreciations made by employers – especially – in our discussions, outline the potential of 200.000 persons that are about to use this year this technical unemployment. This number would lead to a loss in the state budget or social security budget of nearly 439 millions during the entire year. It would not be a great problem taking into account the fact that, unless we introduce such measure, we would need to protect employers and economic enterprises and this people would have to enter in unemployment. 200.000 people in unemployment this year, at minimum six months of unemployment, with an average unemployment contribution, would mean nearly 900 million lei – cost on unemployment budget.
In other words, we protect the unemployment budget for other situations in which we may need it, and meanwhile, we protect the employees that cash their incomes, and enterprises, that would keep the employees. Thank you.

Reporter
With respect to pension law, have you not discussed anything today?

Minister Mihai Seitan
No, it is likely to be discussed in Executive, on Wednesday. Thank you.