Minister Ogryzko assured Cristian Diaconescu that Romania would have to bear no consequences following this situation. He said he wanted Romania’s support for a European mission to come to Kiev in order to evaluate the problem of gas supply.

The two high officials agreed to have a meeting in January.

‘It is quite normal for the pledges existing as regards the supply of gas should be fulfilled. Romania must not suffer at all because of the misunderstanding between Ukraine and Russia,’ said Minister Diaconescu after the telephone conversation, according to the release issued by MAE. AGERPRES

The lowest increase in the hourly labour costs was posted by Germany and Sweden with a rise of 2.5 percent each.

Overall in the EU, the hourly labour cost was up by 4.1 percent in the third quarter of 2008 from the same period last year, after having posted 3.6 rise in the second quarter.

By sectors of activity, the hourly labour cost in the EU grew at an annual rate of 4.2 percent in industry, 3.8 percent in construction and 4.0 percent in the services sector. This compares to the hourly labour cost in Romania that grew at an annual rate of 22.3 percent in industry, 23.4 percent in construction and 20.1 percent in services.

Figures supplied by the National Institute of Statistics show that the adjusted quarterly hourly labour cost index was up 19.39 percent in this Q3 compared to the same quarter last year and by 3.11 percent on the previous quarter.

The economic operators surveyed by the National Commission on Projection anticipate that the real unitary labour cost in the full-2008 will drop by 3.2 percent from last year. The Romanian industrial labour costs diminished by 3.8 percent in the nine months from Jan.-Sept. last year as a result of the fact that the real gross salary dynamic was below the labour productivity levels. AGERPRES

FOB export January-through-October 2008 went higher than RON 105.89 billion (29.019 billion euros), while CIF imports reached RON 175.907 billion (48.216 billion euros).

Compared with the first ten months of 2007, exports advanced 30.9 percent when stated in RON and 18.6 percent when stated in euros, while imports went up 27.6 percent when stated in RON and 15.5 percent when stated in euros.

Compared with January-October 2007, goods exports in January-October 2008 outpaced goods imports, continuing on a trend that started in December 2007.

Romania’s intra-Community trade January-October 2008 stood at RON 74.466 billion (20.396 billion euros) in terms of deliveries and at RON 120.869 billion (33.098 billion euros) in terms of incoming trade, accounting for 70.3 percent of Romania’s total exports and 68.7 percent of its total imports.

The difference between the dynamics computed in RON values and euro values was generated by a depreciation of the local currency, the leu (RON), January through October 2008, by between 8 and 14.2 percent from the corresponding months of the year before.

Important weights in the structure of exports in the first ten months of 2008 were held by mineral fuels, lubricants and related materials (9.6 percent of exports and 13.2 percent of imports); transport equipment and machinery (35.1 percent of exports and 35.8 percent of imports) and other manufactured products (38.4 percent of exports and 30.9 percent of imports).

October 2008 FOB exports totalled RON 12.052 billion (3.219 billion euros), while CIF imports stood at RON 19.590 billion (5.229 billion euros).

On a monthly basis, October exports advanced 14 percent when stated in RON (9.5 percent when stated in euros) and imports went up 2.4 percent when stated in RON, but declined 1.8 percent when stated in euro.

Compared with October 2007, October 2008 exports were up 26.3 percent when stated in RON (13.3 percent when stated in euro), while October 2008 imports increased by 15.5 percent when stated in RON (3.6 percent when stated in euro).

The October 2008 FOB-CIF trade deficit totaled RON 7.538 billion (2.010 billion euros) up RON 125.8 million on a monthly basis, but down 196.6 million euros year-on-year.

The CIF price (i.e. cost, insurance and freight price) is the price of a good delivered at the frontier of the importing country, including any insurance and freight charges incurred to that point, or the price of a service delivered to a resident, before the payment of any import duties or other taxes on imports or trade and transport margins within the country.

The FOB. price (free on board price) of exports and imports of goods is the market value of the goods at the point of uniform valuation, (the customs frontier of the economy from which they are exported).It is equal to the CIF. price less the costs of transportation and insurance charges, between the customs frontier of the exporting (importing) country and that of the importing (exporting) country.

‘The text of the Constitution itself gives PD-L the first chance in forming a Government around the PD-L and on a government programme negotiated with the political parties,’ Boc explained.

The head of the PD-L underscored that negotiations with the Liberals did not focus on assigning a candidate for the PM seat, but on the principle of his appointment, adding the his party could not give up the PM seat as it won the parliamentary elections.

Boc also said this was the first round of negotiations with the Liberals, a next one being schedule after PM Tariceanu returns from abroad. Boc has not ruled out negotiations with the Social Democrats, though he did not mention any particular date for it.

The Democratic Liberal leader said a possible alliance with the PNL would have a 4-year mandate without referring the presidential elections due in 2009.

‘I have clearly and unequivocally said it. We are talking about a
4-year mandate. The head of state has explicitly required us not to introduce in any negotiations with the parties, the candidacies for the 2009 presidential elections. Presidential elections in 2009 have nothing to do with our negotiations with the PNL,’ Boc underscored. AGERPRES

‘The finalisation of this project phase is a step forward toward submitting an investor’s agreement to the Romanian Government for approval and the signing of it by officials of the seven companies, which will lead to the establishment of the project company in March 2009,’ reads a press release issued on Thursday.

Nuclearelectrica will hold a 51-percent stake in the company; ArcelorMittal will control 6.2 percent of the shares; CEZ 9.15 percent; GDF SUEZ 9.15 percent; ENEL 9.15 percent; Iberdrola 6.2 percent and RWE Power 9.15 percent.

The project will be carried out in two stages. In the pre-project stage, which will last 18 months counted from the registration of the future company, technical and commercial requirements will be established, calls for bids, the engineering documentation, site works and bid assessment. At the same time, investors will draw up the commercial arrangements required for the construction of the two units, long-term operation and effective financing.

The project stage proper is estimated to cost 4 billion euros to complete and last 6 years, depending on a favourable decision of the investors. Each unit will have an installed capacity of 720 MW. The project will be notified to the European Commission, under the provisions of the Euratom Treaty.

The commissioning of the two units is scheduled for 2015-2016. The initial life of one unit is put at 30, with a possibility to lengthen it to 40.

There are two units currently operational at the Cernavoda nuclear-power plant. The first reactor was commissioned in 1996, while the second was fully commissioned in September 2007.

Nuclearelectrica is the operator of the Cernavoda nuclear-power plant and the Nuclear Fuel Factory of Pitesti. With the two nuclear facilities, Nuclearelectrica is the second largest electricity generator of Romania, covering nearly 18 percent of the domestic demand. AGERPRES

Given that President Basescu made no decision on the designation of Prosecutor Monica Serbanescu as Chief Anticorruption Prosecutor, Kovesi decided to protract Morar’s term as an interim.

Justice Minister Catalin Predoiu proposed Monica Serbanescu as Chief Anticorruption Prosecutor.
Supreme Council of Magistrates (CSM) department for prosecutors rejected Predoiu’s proposals, but CSM assent was advisory, only.

On Sept 5, the same CSM department voted Monica Serbanescu’s appointment as DNA chief by four ballots against and three fors.

Justice Minister Catalin Predoiu forwarded the designation proposal to President Basescu on Sept 15, and it still is at the Presidency.

According to the law, DNA chief is appointed by Romania’s President at Justice Minister’s proposal, and by the assent of the Supreme Council of Magistrates (CSM). AGERPRES

The motion, called ‘Education Stays, Government Goes!’ was tabled in response to a Government emergency ordinance passed by Government to cancel the provisions in a law approved by Parliament to increase by 50 percent teachers’ pay.

‘The Tariceanu Government has to be dismissed, because it is flagrantly breaching the constitutional rules. The law that the Government refuses to enforce now was unanimously passed by the Romanian Parliament, which is the sole rightful holder of national sovereignty. In its attempt to oppose the enforcement of this law, the Government sent the document to the Constitutional Court, which found it as conforming to the Constitution. And even after Romania’s President promulgated it, Prime Minister Tariceanu has chosen not to implement it. Thus, the Tariceanu Cabinet puts itself outside the law because, as Romania’s Constitution says, nobody is above law,’ says the motion.

Speaker of the Chamber of Deputies Bogdan Olteanu mentioned that two MPs withdrew their supporting signatures, but the document still has the number of signature required for consideration.

Before the plenary session of Parliament on Tuesday, Prime Minister Tariceanu voiced worry that the Legislative will pass the law rejecting the emergency ordinance cancelling the teachers’ pay increase.

‘We are waiting to see what is happening. Perhaps the Senate will give it another thought and seriously analyses the signals coming from the economy and the European Union. The Senate cannot remain insensitive to the messages coming from the country: enterprises compelled to lay off workers and shrinking business activities. Otherwise, such a measure cannot but run contrary to any logical thinking,’ said Tariceanu.

He reused to estimate the chances of the PD-L motion of censure being successful, but argued that the action of the PD-L is ‘pure politicking, as PD-L has shown us over the past two years.’ AGERPRES

‘The state budget for 2009 provides the freezing of public institution expenses at the level of 2008. We decided to cap the outlays of some public institutions. Thus, we assigned the Ministry of Agriculture an extra RON 500 million for the fight of drought, the Ministry of the Interior and Administrative Reform gets a surplus of RON 200 million for its district heating projects, the Foreign Ministry receives by RON 57 million more to finance the newly established consulates in Spain and Italy. An amount of RON 122 million will add to the budget of the Justice Ministry to finance aid to low-income persons,’ said the Premier.

The head of the government mentioned that healthcare, infrastructure and the environment were not affected by budget cuts.

‘The cap refers to halting car fleet renewal or the acquisition of equipment for institutions such as the Prime Minister’s Chancellery, the government’s Secretariat General, the Presidential Administration, the Competition Council, Romania’s Court of Accounts, the National Council for the Study of the Securitate Archives – CNSAS, or the National Audiovisual Council,’ explained Calin Popescu-Tariceanu.

As far as the increase in the teaching staff’s wages is concerned, the 2009 state budget provides a 10 pct wage supplementation for this social category.

Next year’s general budget builds on a deficit of 2 pct of the GDP, an economic growth of 6 pct and an exchange rate of 3.6 lei for one euro.

The GDP is estimated at RON 578.5 bln compared to RON 505 billion for 2008.

Budget revenues are estimated at RON 224.8 bln and outlays at RON 236.3 bln.

‘This is a cautious budget to limit adverse economic effects. We do not give out money on consumption, but support investments,’ said the Premier.

The Law on the 2009 budget is open for debate and amendments by the next ruling line-up or Parliament, added the head of the government. AGERPRES

‘I will propose, in a letter, the setting up of a working group including members of parliamentary political parties, of trade unions and employers’ associations, of structures of the local administration, of specialists from the Ministries of Labour and Finance, whose task will be to draft, in a certain period of time, a minimal set of principles to build on them the law on salaries in the state-run sector, keeping in mind a correlation between the salary growth and the economic performance,’ said Tariceanu.

He added that a first meeting of this working group will be held on Wednesday, its objective will be to draw up a memorandum to be signed by the political parties which participated in a meeting, on Friday, the the government.

‘We want this set of principles to be finalized until the start of the electoral campaign, we want to give a clear message to the trade unions regarding this problem, which will be solved by the future parliamentary majority, whichever it will be, ‘ stressed the prime minister. AGERPRES

On the sidelines of the meeting, Romania’s President Traian Basescu participated, as guest, at the works of the European People’s Party (EPP), whereas PM Tariceanu met with the European liberals (ALDE – Alliance of Liberals and Democrats for Europe).

The meetings of the EPP and ALDE are aimed at establishing their stands regarding the issues of the European Council agenda.

‘’At the end of the meeting with the European liberals, Tariceanu said that following the talks he had with some premiers of EU countries their ‘concern over the world financial crisis was visible.

‘’Along the talks I had with some of the premiers of EU countries, I saw their concern which goes beyond the normal limit and gets near ‘’fear’ about the world financial crisis. We have to be aware that the effects of the crisis will lead to a wide scale economic recession in Europe and our interest, of course, is to protect Romania as much as possible against the effects of the crisis,” said on Wednesday PM Tariceanu.

The two Romanian officials, President Traian Basescu and PM Calin Popescu Tariceanu, are expected to attend the meeting of the European Council with President of the European Parliament Hans-Gert Poettering. At the end of the first working session of the European Council an official working dinner is scheduled that will gather heads of state and government, but also foreign affairs ministers.

The works of the European Council will continue on Thursday when it is expected to approach issues such as the financial and economic situation of the European Union, the legislative package energy-climatic changes and the issue of energy security, the analysis of the implementation of the extraordinary European Council’s decisions of September 1, 2008 (with reference to the strengthening of the EU-Georgia ties and the aid for this country in the post-conflict reconstruction, as well as to the development of the East Partnership Initiative), the stage of ratification of the Treaty of Lisbon and a preparation for the identification of ways to be followed at the European Council of December 2008, the European pact on migration and asylum. AGERPRES