Monitoring→Public Institutions→Government

Reshuffles

• The Government performed some reshuffles on July 6. Thus, the executive ousted Petru Svet from the post of deputy Director-general of the Privatisation Department over reorganisation of this institution. According to the new structure of the cabinet of ministers, the Privatisation Department became part of the Economics and Trade Ministry. Also, the executive appointed Anatolie Izbinda, former deputy director of the Department for Constructions and Territorial Development, as deputy director of the Agency for Rural Development. Ion Daniliuc was appointed as deputy director of the State Agency for Protection of Intellectual Property (AGEPI).

• The Government appointed on July 13 Valeriu Ostalep as Deputy Foreign and European Integration Minister. Thus, the Foreign and European Integration Ministry will have two deputy ministers. Eugenia Chistruga was reconfirmed in the post of Deputy Foreign and European Integration Minister last May. Also on July 13, the executive reconfirmed Oleg Cara as deputy director of the National Bureau for Statistics.

Resolutions

• The Government gave green light on July 7 to a draft law which says that salaries of budgetary employees and public officials will be established on basis of a special law regulating the procedure, size and wage conditions for workers paid from the state budget till 2009. This draft law will be enforced on October 1. Under the draft, the salaries of budgetary employees will grow every year.
  Decision-making officials in the Government said that the implementation of this draft law aims to set up a single and flexible salary pay system, based on individual professional performances of employees. The enforcement of this law will require a three-fold rise of salaries of budgetary employees. In addition, the minimum salary is expected to grow from 200 Lei (13 Euros) up to 450 Lei (about 30 Euros). As for example, the minimum salary in Romania accounts for 90 Euros. Finally, at least 3.2 billion Lei (254.4 million Dollars) or the equivalent of 40 percent of budgetary incomes for 2005 will be needed for implementation of this law.

• The cabinet approved a draft decision of the parliament which calls for transmission of key public services to concession^[1]. It envisages six agencies in charge with: water supply; heating; sewerage and cleaning of used and pluvial water services; cleaning services; planting of trees and bushes; local public transportation and administration of public and private housing fund.
  The executive also established the mandatory clauses of a concession contract. They include among others: capital investments in development and modernization of services; assuming of spending and risks for exploitation of granted units by concessionaire; impossibility to transmit these units to a third side, etc. An important condition indicated by this draft is that units be returned after expiration of the concession contract, without any material damages and harms.
  The authorities will be able to control the economic-financial activity of the concessionaire through an independent auditing firm, without intervening in its operational activity. The term of concession will be established with the agreement of people who will lease the services, but it must be at least 25 years.

• The Government approved the action plan of the executive for the 3rd quarter of 2005. The executive will approve in the 3rd trimestre the strategy on development of agricultural production trade; single mandatory health insurance programme for 2006; medium-term programme on capital investments financed from state budget (2006–2008); will examine the draft state budget law for 2006 (on August 26); draft state insurance budget for 2006 (on September 12), etc.

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