Rain in Romania

It rained almost daily for two months and consequently massive flooding occurs in north-east of Romania and in the south, along the Danube. Again the spectacle of the media who require assistance for disaster and we are bombarded with images of people who are desperate to not have where to live. Of course, we are doing everything we can to help these poor people, but these measures are only palliative.

The fact that in Romania there are many people severely affected by floods has become something common, not changed anything in the domain of population protection. And we also had massive floods in 2005, 2008 and partly in 2009 and now again this is again catastrophic exactly the same places. Of course, there have been conceived strategies in ministries, there were distributed documents, were organized call for projects, even there have been calls for projects to access EU funds, but these remain just plans on paper.

In the terrain is more difficult. Where the results should appear, there is nothing to be seen. Still no dikes or these are frail, or already broken. Moreover, complaints are heard from nervous officials addressed to the people: "why are you staying here if you see that the place is flooded every time?" as if these people would have somewhere else to go and what is needed for a new start.

What about rain and VAT? Quite simple, since July 1 the Government has decided to increase VAT from 19% to 24% and at the same time, the rains have leaded to food prices raise because crops are largely compromised. Now, after only one week, President Basescu asks to the Government to return to the old rate and to introduce a tax on small pensions.

Battle for state budget revenue growth by increasing the taxes that the government is giving now is already foreseeable end. Consumption is already slowing and, as consequence, the net volume of money collected from taxes is decreasing.

The only thing that increases in Romania is the tax evasion, which is already at a fairly high rate. But this does not seem to concerns an already tired Government, which has long talked for two years about various things, starting from social justice to the reorganization of the state crowded apparatus. But nothing concrete happened.

Also unclear measures were taken during this time - everything was postponed, except the fact that they have borrowed money from domestic and international banking market, finally obtaining an IMF loan. All this effort was for paying pensions and budgetary salaries, without ever a clear view for recovery.

Here we came to pensions, which were indeed increased, without a sustainable basis, by the previous governments. In 2007, President Basescu opposed to the pension increases, exceeding the fund collected for it. But Parliament has not missed the opportunity to appear as a benefactor of the nation and voted the increase of pensions and introduced a minimum guaranteed pension, due to general elections from 2008.

Now, the present Government pays a guaranteed minimum pension for people who, due to conjuncture of communism, had no opportunity to contribute to any pension fund. This situation relates in particular to people living in the countryside and who worked in agriculture. They can not be blamed for receiving a pension from funds where they have not contributed, but is a great pressure on the pension budget generated by their inclusion, and also other categories, such as those who retire early.

According to statistics published by the Ministry of Labor, for the last quarter of 2009, we have a situation that shows how pension money is distributed: the total number of pensioners is 5.521.270 people, from which those with full length of service 2.188.381 people. This means that less than half of pensioners paid the full contribution and the rest only partially or not at all.

The main issue about pensions system is that any surplus in the pensions’ budget was used by governments as a reserve and was totally spent during last 20 years. When this budget becomes deficient, the solution agreed by Government is to reduce pensions. Also, we can see a decline in the number of employees in the economy, which is directly linked to an increase in unemployment, meaning that the pension budget will become even smaller.

I have expected something from the opposition. Normally they should have positions, offers solutions, briefly, show that they deserve to form the Government. But, it’s raining, and is hard to take responsibilities in these difficult times.

How to put the Government under pressure to solve the real problems if it is raining all the time? You can’t bring people in the street in these conditions, say syndical leaders.

It is obvious from this that we shall watch TV to admire how the politicians, syndical leaders, analysts and other good talkers debate the issues, criticize one another, as in electoral campaign. The rain is disturbing them a little bit, but is a good chance to stop sometime.

As a happy end of this rainy story I can mention that the TV audiences increased, the TV is the cheapest entertainment in Romania and if is raining…

I watch the TV and the announcement is that it will rain again. Damn rain!