Newsletter May 2019

Measures to reduce risk in the banking system

On May 14th, the Council of the EU adopted a comprehensive legislative package which will reduce risks in the banking sector and further reinforce banks’ ability to withstand potential shocks.

The package contains amendments to the capital requirement legislation (regulation 575/2013 and directive 2013/36/EU) which reinforce the capital and liquidity positions of banks, and strengthens the framework for the recovery and resolution of banks in difficulty (directive 2014/59/EU and regulation 806/2014).

The proposals implement reforms agreed at international level following the 2007-2008 financial crisis to strengthen the banking sector and address remaining challenges to financial stability. Presented in November 2016, they include elements agreed by the Basel Committee on Banking Supervision and by the Financial Stability Board (FSB).

The banking package also includes a number of targeted measures to cater for EU specificities, such as incentives for investments in public infrastructures and SMEs or a credit risk framework facilitating the disposal of non-performing loans.

Cheaper calls to other EU countries as of 15 May

As of 15 May, a new maximum price will apply for all international calls and SMS within the EU. As a result, consumers calling from their country to another EU country will pay a maximum amount of 19 cents per minute (+VAT) and 6 cents per SMS message (+VAT).

Following the end of roaming charges in June 2017, these new price caps for international calls and SMS in the EU are part of the EU-wide overhaul of telecoms rules to strengthen coordination of electronic communications and enhance the role of the Body of European Regulators for Electronic Communications (BEREC).

Reporting obligations in environmental legislation

The Council of the EU is making environmental reporting obligations in EU legislation more coherent and more consistent by amending ten legislative acts. The purpose of the regulation adopted on May 21st is to streamline reporting obligations, reduce administrative costs, improve the quality of available data for future evaluations and increase transparency.

The amendments will apply to ten pieces of environmental legislation:

  • the sewage sludge directive 86/278/EEC;
  • the noise directive 2002/49/EC;
  • the infrastructure for spatial information in the European Community (INSPIRE) directive 2007/2/EC;
  • the birds’ directive 2009/147/EC;
  • the European pollutant release and transfer register (E-PRTR) regulation (EC) No 166/2006;
  • the animal testing directive 2010/63/EC;
  • the EU timber regulation (EU) No 995/2010;
  • the forest law enforcement, governance and trade (FLEGT) regulation (EC) No 2173/2005;
  • the convention on the international trade in endangered species of wild fauna and flora (CITES) regulation (EC) 338/97;
  • the environmental liability directive 2004/35/EC.

Access to finance – State aid scheme 807/2014

For the year 2019, in the State Budget Law no. 50/2019 are set out commitment appropriations for the granting of state aid in excess of 1.6 billion lei, which means financing of investment projects worth at least 4 billion lei. It is the largest annual budget allocated from the beginning of the scheme to the present.

In order to facilitate access to finance for as many investment projects with a major impact on the economy, the Ministry of Public Finance has adopted a series of amendments to the simplification of the state aid scheme 807/2014, including: lowering the minimum project ceiling investment to be eligible at € 1 million, the possibility of starting the investment project from the date of application for financing agreement, the simplification of the investment plan, facilitated access to financing for a larger number of companies and companies with capital Romanian.