With growing expectations of a global recession generated by the COVID-19 pandemic, avoiding disruptions to the food supply chain and food production continues to be a priority. One of the key measures for ensuring food availability is to maintain and support agricultural activities and markets.
Since the beginning of the COVID-19 pandemic, the Romanian authorities enacted several tax measures in order to prevent the business environment from collapsing. By way of example, some of the already implemented measures are the following: (i) recalculation of the specific annual tax in order to reduce the impact on cash flow; (ii) granted tax benefits to certain categories of employees; (iii) extension of the deadlines for submitting the annual financial statements, etc.
The Romanian Government recently enacted the Emergency Government Ordinance No. 74/2020 (“EGO 74/2020”), which entered in force on 18 May 2020. An expected and necessary piece of legislation, EGO 74/2020 amends the Energy law No. 123/2012 (“Romanian Energy Law”) by expressly allowing bilateral power purchase agreements (“PPAs”) to be directly negotiated outside the centralized markets, although not for all electricity generation capacities, as further detailed below. Until now all wholesale electricity transactions had to be concluded exclusively on the centralized markets in a transparent, public, competitive and non-discriminatory manner, with limited exceptions generally for small generators.
Bill no. 134/2020, which includes relief related to paying rent in the context of Covid-19, as analysed in the article “New regulations on the deferral of rental payments during the state of emergency” (the “Article”), entered into effect on 20 May 2020 by Presidential Decree no. 269/2020 as Law no. 62/2020 on the application of rent payment relief during the state of emergency (the “Law”) and was published in the Official Gazette of Romania, Part I, on 21 May 2020.
Following the establishment of the state of alert at national level, Law no. 55/2020 regarding some measures for preventing and combating the effects of the Covid-19 pandemic ("Law no. 55/2020") was adopted and entered into force on 18 May 2020. Please note that noncompliance with the measures imposed by the aforementioned law may lead to disciplinary, civil, administrative or even criminal liability, as the case may be.
Several measures adopted by the Romanian authorities related to the initiation of the state of alert. These include Resolution no. 24/2020 and Government Emergency Ordinance no. 70/2020, both of which entered into effect on 15 May 2020. Also, the Romanian Parliament adopted Law no. 55/2020, which will enter into force on 18 May 2020 and which provides the legal framework of the state of alert and consists of several other measures and obligations.