EU Affairs Highlights 2019 Why the EU matters for business in Romania? Over 70% of the national regulations are drafted and approved in Brussels. The EU regulates the Single Market – the free movement of goods, services, capital and people. Romania’s exports to the EU amount for +70%, and imports for +70% of the total; EU also sets trade deals with other economies across the world for preferential trade. The EU sets the policy directions for all major areas of impact for business: competition, banking, consumer protection, digitalisation, corporate social responsibility, climate change, etc. The EU is a net contributor to the Romanian economy with EUR 33 billion (2007-2018). The EU provides €80 billion budget (2007-2020 – Horizon 2020) for research and innovation focused on science, industrial leadership and tackling societal challenges that Romanian firms and institutions can access. EUR 439.4 billion in additional investment set to trigger in strategic investment across the EU via the Junker Plan (2015 -2020); InvestEU Program is expected to mobilise at least EUR 650 billion in additional investment in 2021-2027. A suite of EU programs that help enterprises, including Romanian ones, to access finance and markets, and support entrepreneurship, business creation, internationalization and growth. 1 EU Affairs | Highlights 2019 2019 was particularly important with reconfirming the trust citizens across the continent have in the EU project – a hystorical turnover for the European Parliament (EP) elections in support of the pro-european political parties. This gives a solid mandate to the new leadership in the EP and European Commission (EC) to continue the consolidation of the EU in the next 5 years by tackling systemic challenges such as climate change, future of work, migration etc. A more prosperous Romania needs to pair sustainable and predictable public policies and national consultations with a consolidated relationship with the EU and responsibility over what is happening in Bruxelles. Concordia has made a commitment to be the channel with the EU for the business envionment when joining BusinessEurope in 2019 and wants to contribute to a proper national dialogue about Romania’s agenda and objectives in the EU. We are talking too little about an agenda that has increasing impact at national level, and about how we can realize the full potential for economic development given the size of the country and its resources. At the turn of the decade, 2020 is a good year to start taking more about the European topics and to be more engaged in making it happen. Steven van Groningen, Concordia President Concordia Employers Confederation (CPC) is a representative confederation for the businesses in Romania with members from eight of the most important economic sectors – automotive, energy and utilities, banking, HoReca, IT, retail and transport representing over 300 000 employees and over 1 500 companies of all sizes, with Romanian and foreign capital alike. Concordia is the only Romanian member in BusinessEurope and International Employers Organisation representing its members at EU and international level. EU Affairs | Highlights 2019 2 European elections – May 2019 In May, the EU member states voted for the members of the European Parliament with a five-year mandate (2019-2024). Romania The turnover reaches a historical 51.20% (higher than the EU 50.66%) compared to only 32.44% in 2014, while thousands of Romanians abroad not getting to vote after queueing for hours at voting stations across Europe to cast ballots. The high turnover could also be explained by the fact that in the same time a referendum on justice was held. 51.20% 50.66% RO EU 42.97% 42.61% 32.44% 29.47% 27.67% 2007 2009 2014 2019 PSD party in power is defeated by PNL and comes second separated by less than 0.5% of votes by USR-Plus new alliance. ALDE does not make it to the EP. 27.00% 22.50% 22.36% 6.44% 6.57% 5.76% 5.26% 4.11% PNL PSD USR Pro PMP UDMR ALDE Other PLUS Romania parties The results reflect to a great extent a national agenda and the frustration over the current Government and leading party. However, though the EU specific agenda was not much debated, PSD was the only party to put on stage a nationalistic discourse and had a track record of anti-EU stance (Romania is not accountable to the UE, the EU is interfering into internal matters, etc.). In this context, the EU was looked at as a savior or at least a safety net for democratic principles and rule of law. In a Flash Eurobarometer from April 2019, „Hope” was the word most often associated with the EU by Romanians1. Distribution of votes by gender Rural/Urban distribution of votes Men Urban 4,368,696 votes 4,140,737 votes Women Rural 4,588,970 votes 3,814,222 votes 1https://www.secure.europarl.europa.eu/at-your-service/files/be-heard/eurobarometer/2019/emotions-and-political-engagement-towards-the-eu/report/ en-flash-2019.pdf 3 EU Affairs | Highlights 2019 Number of votes by age group and gender Men Women 82,037 votes 367,665 18-24 374,387 82,689 votes votes years votes 663,899 25-34 692,349 votes years votes 831,805 35-44 842,460 votes years votes 1,648,343 45-64 1,706,796 votes years votes 856,984 65+ 972,978 votes years votes Given a higher sophistication of the topics for the EP elections and the joint referendum, a higher proportion of the urban voters was present; however, there was a lower share that expected of younger voters. The profiles of voters for the main political parties National Liberal 2020 Alliance Social Democratic Party Save Romania Party (PNL) Union (USR) & (PSD) Freedom, Unity and Solidarity Party (PLUS) Private sector Private sector Retired 33% employee 51% employee 58% Adults Youth Elderly 30% 36-64 years 50% 18-35 years 42% 65+ years 56% Rural 78% Urban 53% Rural Elementary Higher Elementary 42% education 47% education 55% education 56% Earnings 47% Earnings 65% Earnings P<1,500R RON OSPER1,500 - 4,000 RON <1,500 RON ITY EU Affairs | Highlights 2019 4 32 Romanian members of the European Parliament Siegfried Mircea-Gheorghe Rareș BOGDAN MUREŞAN HAVA PNL PNL PNL Marian-Jean Cristian-Silviu Gheorghe FALCĂ MARINESCU BUŞOI PNL PNL PNL Dan-Ştefan Vasile BLAGA MOTREANU Daniel BUDA PNL PNL PNL Gheorghe-Vlad Loránt VINCZE Iuliu WINKLER NISTOR UDMR UDMR PNL Ramona Eugen TOMAC Traian BĂSESCU STRUGARIU PMP PMP PLUS Dragoş Vlad-Marius BOTOŞ Nicolae ŞTEFĂNUȚĂ TUDORACHE USR USR USR Clotilde ARMAND Dragoş PÎSLARU Cristian GHINEA USR USR USR Adrian-Dragoş Dacian CIOLOŞ Tudor CIUHODARU BENEA USR PSD PSD Maria GRAPINI Dan NICA Cristian TERHEŞ PSD PSD PSD Claudiu MANDA Carmen AVRAM Rovana PLUMB PSD PSD PSD Victor NEGRESCU* Corina CREȚU Mihai TUDOSE PSD Pro Romania Pro Romania *Romania will get one more MEP seat after Brexit. 5 EU Affairs | Highlights 2019 The distribution of Romanian MEPs across European political groups: S&D 10 Renew Europe 8 PPE 14 S&D - The Progressive Alliance of Socialists and Democrats Renew Europe - The Renew Europe group PPE - The Group of the European People's Party PNL 10 (27,00%) 14 PPE Coalitia 2020 8 (22,36%) USR + PLUS 10 S&D PSD 8 (22,50%) PMP 2 (5,76%) Renew 8 Europe Pro România 2 (6,44%) UDMR 2 (5,26%) PLANET EU Affairs | Highlights 2019 6 One year before the elections, the Eurobarometer shows that two thirds of Europeans believe their country has benefited from being a member of the EU (the highest percentage since 1983) and 60% of Europeans consider EU membership a good thing2. However, in the May 2019 elections, turnout surges across Europe, but pro-EU parties suffer while hanging on, populists Euro-skeptics make gains, social democrats fall back in European Parliament election. France Marine Le Pen's far-right National Rally scored a first-place (24%) finish in the European election in France, besting President Emmanuel Macron's Renaissance (22.5%). Germany The Greens did very well, becoming the main party on the left, while the Social Democratic Party did very badly, which may prompt the party to leave the existing coalition. The governing Christian Democrats (CDU), also lost some ground, while the far-right populists, the Alternative for Germany, got about 11%. UK The UK's Brexit Party, formed just six weeks ago, has clinched almost as many votes as the Liberal Democrats and the Labour Party combined. Nigel Farage's Brexit Party took 31.71% of the votes, reflecting growing political dissatisfaction with major parties in the UK. Italy Matteo Salvini, whose right-wing nationalist League party is predicted to win over 30% of the Italian vote, is hoping to found a new grouping, the European Alliance for People and Nations, with the support of a dozen other parties. Spain Socialists (PESOE) won most votes in European and local elections. The Socialists won 20 seats in the European Parliament, PP 12 seats, Ciudadanos seven and Vox three. Hungary It was another night of election success for Prime Minister Viktor Orban, whose Fidesz party is for the moment a suspended member of the center-right EPP group. Winning 52% of the vote, he declared his anti-immigration platform a success. Poland The ruling conservative Law and Justice (PiS) party won 43% of the vote, ahead of the pro-European Coalition. Greece Greek Prime Minister Alexis Tsipras called a snap general election after his leftist Syriza party suffered a severe beating in Sunday’s European and regional elections. Results showed that Syriza has won only about 24% of the vote, while the opposition New Democracy party won 33%.