Press statements by PM Victor Ponta following his participation in the European Council meeting

It was an extremely functional Council, but with important topics, I would say essential for Romania. There has been discussed about the European policy in the energy area, one of the essential areas for the future development of Romania. There has been presented the current context. The President of the Commission, Mr. Barroso has showed the loss of competitiveness of Europe compared to US especially, where the energy, gas prices especially declined over the last years, while, in Europe, all energy prices increased. The impact on the European economy competitiveness is obvious from this standpoint.
There have been three important points for Romania. First, there has been reached a conclusion pertaining to renewable energies: we continue the investments, but we should make that these renewable energy sources to be “cost effectiveness”, therefore to have a beneficiary so that subsidies to be as low as possible. That means that for Romania, and I presented this point of view, for Romania, we have in view a balance of the policy to subsidize the renewable energy so that the costs resulted be bearable both for the industry area and for the prices for population. Secondly, there has been discussed, with important support from Poland, from our part, from Lithuania, and of other countries already making exploitations on the new types of energy, more directly shale gas. There is clearly an option to allow EU member states to adapt their legislation to encourage exploration and exploitation. Over the immediately period, there will not be built a unique European policy, but the countries, and the majority of European countries heading towards this direction have the guarantee that any new energy source, with the observance obviously of all environmental protection standards, is welcome.
Thirdly, there has been discussed and there are sought the resources necessary to upgrade the energy transport infrastructure and the interconnection one. For Romania, I outlined the importance of Nabucco project, which means the gas pipeline coming from Azerbaijan, further in the EU implies Bulgaria, Romania, Hungary, and Austria. I raised the problem and I outlined once again our commitment to finalize until the end of this year the gas interconnection with the Republic of Moldova, that meaning that, a further need for Romania of new gas resources, either those from Azerbaidjan, on Nabucco project, or those from offshore area and new energy sources.
Regarding the energy security, following today’s discussions, Romania can not only to identify new energy resources, but to take all necessary measures to ensure on average and long term, the energy security, reduction in dependence on imports – obviously, we speak about imports from Russia – and Romania’s capacity to become an energy exporter in the region.
With respect to the social aspects of energy policy, there has been emphasized the importance of investment in energy to create new jobs, No. 1 problem of the EU and Romania and all countries at this time. There has also been kept the support policy for vulnerable consumers - Romania has an important category, much higher than most European countries, of the population that must be protected from energy price surge- and there has also been reiterated support for energy efficiency investments from structural and cohesion funds.
Regarding tax policy and countering tax evasion, Romania has supported the view expressed by the Council and, in fact, the European Commission on information exchange agreements among all countries and between the EU and other countries, negotiation of agreements with countries in Europe, be it Andorra, Monaco, Switzerland, that have special legislation and obviously that Romania is perfectly ready and willing to cooperate and collaborate in the exchange of information and in all networking measures to combat tax evasion and money laundering.
The last thing I want to say and answer your questions, if any, on the European Council. I had a new discussion with Commission President Barroso, that reiterated my formal Commission proposal to provide for Romania and Slovakia a special system of absorption of cohesion funds available during 2007-2013 on the "N plus three" system . In fact, we can gain a year in which to submit projects, basically being able to recover the years 2010-2011, which were lost to European funds accessing and in this way, in 2013, the threat of cancellation of funds is to say, removed, and our ability to have a higher absorption degree than at the time of application.
It is an extremely important decision to obtain this thing, I think there has been a very good cooperation, and Romania had a unitary position, starting with the Romanian President, at the discussion on multi-annual financial mechanism, the Minister of Foreign Affairs, our representatives here at the Commission, there was an unitary effort, again, all Romanian representatives from the President to the Ambassador said the same thing, how important is "N plus three" for us and if this Commission initiative meets all the procedures to be adopted, it would be an advantage for Romania worth some billions EUR for the year 2007-2013, which we can access. Those were the most important discussions. If you are interested in something specifically, please ask.

Reporter: “N plus 3”. When do you believe that this procedure will end. Will it be a lengthy one or..?

PM Victor Ponta: The proposal has already been put forward to the Commission. Perhaps, in the June Council, the last asperities are leveled, in the senses that it is granted to Romania and Slovakia, but other candidates appeared too. The idea is a special treatment for Romania and Slovakia, especially that, I do not hide to tell it, it was a compensation for Romania, at the moment of budget allocation for 2014 -2020, when I did not receive compensations and then…

Reporter: If I may, I have a question ... Since when does the law on military pensions -approved by the Senate – will take effect?
PM Victor Ponta: I do not know to tell you this. It is a parliamentary initiative. For 2013, I said very clearly that there is amount set in the budget, but from 1 January 2014, if this bill exists, we can put them in the budget for 2014. But I do not know how long it will take to complete the parliamentary procedure.

Reporter: Regarding Nabucco, the Council reiterated its willingness to fund the project?
PM Victor Ponta: You know very well that in the EU are, in a sense, two conflicting interests. On the one hand, interest in Nabucco West, which means Bulgaria, Romania, Hungary, Austria, on the other hand, TAP - Greece, Italy. Commission cannot express in favor of one at the expense of the other. However, the text of conclusions reveals support for EU policy towards interconnection development and practically, access to gas in this case of Azerbaijan, from the Shah Deniz.
Reporter: In the second issue to understand that the government will reduce subsidies for renewable energy producers.
PM Victor Ponta: We do not diminish them, but phase them out, because it's still the investment and I want to give a signal for retaining the benefits of investment. We are doing some restructuring to make sustainable primarily the economic activity because, you know very well, large plants are affected by the rising price of energy and green certificates payment, but at the same time and for the population - green certificates are on the bill of each of us. Or, we try to do a type of restructuring, pushing subsidies. Romania currently has the most generous subsidy system - I said in the Council too that is currently the most profitable investment in Romania, in legal or illegal business, however, there is not something more profitable than renewable energy. Green energy is very good and behold, I think in 2013 we reach the 2020 target. We exceeded five-year plans, but the problem is that the energy should have a consumer, be it industry be it population, and not destroy the remaining energy producers, because a big advantage of Romania is the ability to have an energy mix. We have nuclear and coal and hydro power, and then, from a strategic perspective, it is extremely important to have all types of power. Please.

Reporter: This rescheduling would mean a decrease in the value of the bill for Romanians…?

PM Victor Ponta: Absolutely, a rescheduling of the payment and provision of green certificates is reflected in the bill for the population, and especially the bill for the industry.
Reporter: When do you start the rescheduling, when may Romanians expect lower energy bill?

PM Victor Ponta: Wait a minute, wait a minute, I do not want to create news ... Next week we discuss the draft law on the government meeting. I want these days to have discussions with representatives of renewable energy producers to give assurances about the security of investments and how we look, but I tell them that I had the opportunity to hear a lot of prime ministers who said the same thing that renewable energy in their country, ie the country from where investments in Romania are being made, can no longer be subsidized and that - sure, I heard extremely liberal viewpoints from a liberal prime minister, who said that renewable energy must be efficient in terms of cost, as all, in fact, it is the only currently subsidized. So I think Romania was too optimistic. We rushed to be very generous and now it turns out that we fail ... our industry, our economy, which is recovering, but recovering slowly and which can always be compromised. Not to mention the prices for the population. What happened in Bulgaria at the beginning of the year, we took it very seriously, whenever it may happen in Romania and abroad, if we have electricity bills unbearable for people. So next week we have to take a decision.

Reporter: You said you spoke to European Commission President Jose Manuel Barroso. You / ... / now that finally prosecutors were appointed at both DNA and the Prosecutor's Office and at the same time, if he was interested, given that the interest extended before by the European Commission, the cohabitation between the two palaces?
PM Victor Ponta: No, I think he was informed about the Prosecutors and cohabitation. What was important and I spoke to the Commission President and the Secretary-General, Ms. Day, I informed about the visit due to be paid by Minister of Justice, about the fact that we try to have positive results on the MCV, because we are interested in all the other European objectives.

Reporter: About Mittal issues at European level, what was discussed?
PM Victor Ponta: Not exactly a company was invoked, it was not the case in this context to speak of a company, but absolutely everyone who spoke, from the excellent presentation made by Commission President, Mr. Barroso, there resulted very clearly: Europe, through increasingly higher energy prices, it becomes uncompetitive and large companies prefer to relocate, first and foremost in the U.S. unexpectedly, where prices dropped, especially at gas, through shale gas. I thought it was also very interesting to see that we have, we, Europe, a double negative effect related to the exploitation of shale gas in America. First, its prices are 25% than in Europe, so they are competitive for industry and secondly, now, America does not need coal, it exports it to Europe, where we consume it and therefore pollute more. So, the effects are obvious and Europe must keep pace. Now, it does not do it from the point of view of competitiveness and I think the purpose of this Council was precisely in this respect, to discuss the difficult situation of Europe. The same will happen in the future, at the following thematic councils related to industrialization, competitiveness. You cannot be competitive if you have expensive energy. I will give you a situation presented by President Barroso, showing that in the last seven years, the energy price is decreasing in US, and in Europe, it grew by 50 percent. It is normal not to succeed to be competitive for industry. Please.

Reporter: Last week, the Commissioner for energy, Oettinger stated that…….and among others, trade relations with Russia, but not energy dependence. Should we understand that through the signal given last week /…/, a clear signal for backing Romania?

PM Victor Ponta: I said it categorically. When I say that it is a strategic objective of Romania not to depend anymore on the Russian gas, it is not a negative issue targeting Russia. I think that any country in the world would want not to import gas anymore. Conversely, if you can even export, it is better. So Romania's domestic production capacity which, however, easy, easy, is running out, at least one known from the offshore results, from the Black Sea, from the gas shale, to have a gas production to cover Romania’s consumption and to help us to export to the Republic of Moldova, to make the pipeline and we will probably need the gas and everything at a low price, it is a strategic interest, not against someone. Incidentally, we import from Russia. The same issue was raised by Poland, the Polish Prime Minister, by Lithuania, the Baltic countries that depend totally; they did not even have our resources. So, the urge of the Commission and Commissioner Oettinger is "you have resources, use them to import less, or if you can not to import anymore, it is the better." However, there are buyers of Russian gas. The problem is that one is to have domestic production, with lower prices, other economic opportunities and another to depend on import every time. Again, I think any country would want to be independent in terms of energy. Those who succeed in fact have a great competitive advantage over others.
Reporter / ... / to protect the consumer's / ... / were on the agenda / ... / we have already taken.

PM Victor Ponta: No. What was important is that they remained on the agenda, in the sense that countries can adopt, as Romania adopted, legislation and practical measures that there were discussions regarding the fact that you should not let special regime for social category or to countries like Romania, again, with an important part of people for whom the energy price is essential, it would have been very bad to make an European decision to diminish that aid. The fact that it remained as a social policy is a good thing and we will use it obviously.

Reporter: I wanted to ask you if you agree with the reduction in the presidential mandate to four years, proposal put forward by PNL, and all liberals proposed that after the President ends his mandate, not to be allowed to hold any public office.

PM Victor Ponta: Yes, PNL put it forward. What I do not agree with, is to have again the parliamentary election united with the presidential ones, as we do not want to mix up things again as it is clear that the President is the head of the party that wins elections. If you have them in 2014, 2018, once in two years, we agree. Furthermore, I repeat – I do not have this information, I hope you give me the correct information; it is the liberals’ proposal, it is all right, they will have the candidate for President, then, surely we do not oppose it.

Reporter: Regarding the ban to occupy other office for President?

PM Victor Ponta: I do not know whether it is constitutional. I assume a President, once he quits office, does not want public offices, but I do not know whether it is constitution to ban it for the future. I admit I do not have an opinion in this respect and it seems a very important topic to me.

Reporter: Second question: Monica Macovei accuses you directly, as well as the President of the Senate, and the Speaker of the Chamber that you tried to prepare emotionally the release of Gigi Becali.

PM Victor Ponta: How can I express myself so as not to offend anyone? I think Mrs. Macovei is nuts to a certain extent, so to speak. She accused us last year that we wanted to impeach Mr. Basescu in order to pardon Adrian Nastase. Nobody pardoned Adrian Nastase. Otherwise, Mr Becali, I do not know whether or not Mr. President Basescu pardons him, we have not talked about it. So what to wish Mrs. Macovei? Health!
Reporter: It is still a very serious accusation against you.

PM Victor Ponta: This is stupid! It is the umpteenth stupid thing, isn’t it the same Mrs. Macovei who stated in the European Parliament that 2.5 million votes were rigged? I guess everyone is convinced that she is a nuts, right? I wish to see how she translates it into English, to accuse me at the European Parliament that I said she is a nuts. Hope she does not find, however, a word-for-word translation. Please! Is something else important? Not anymore! Thank you.