The paradox of social inequities and poverty is ongoing in Romania, although the economic growth is above the EU average, Angela Cristea, Head of the EC representation in Romania, said on Wednesday.
“The economic growth is above the EU average. This trend is ongoing. The Paradox of social inequities and poverty is also ongoing, mainly for the disadvantaged groups, i.e. the rural areas, children. One in two children in Romania faces the poverty risk. The economic growth is based on consumption and less on investments. The budget deficit is getting closer to the 3% threshold and risks reaching above 4% in 2018, with the risk of failing to meet the Medium Term Objective,” Cristea said.
She said that, on the other hand, unemployment is at the lowest level in the past 20 years, capital.ro informs.
According to the European Commission, limited progress has been made in meeting the tax obligations and tax collection, education, outpatient treatment, public administration and prioritization of public investments. “There has been no progress in terms of minimum wage, retirement age and fiscal framework. Instead, some progress has been made in terms of public procurement, tackling undeclared work and fighting informal payments in the health system,” the Country Report on Romania, presented at an event organized by the EC representation in Bucharest, reads.
Fin Min Teodorovici vows to reveal the means to keep budget deficit below 3pc of GDP soon
Finance Minister Eugen Teodorovici said on Wednesday that in April, the Government will show how it will keep the budget deficit within the target of 3%.
“An answer to this report will be sent by Romania by the end of April. We will include a set of quantifiable decisions and clear deadlines, will include the means to keep the budget deficit below 3%. (…) It’s about ANAF reform, decrease in tax evasion, all will be included in the document as a reply to the country report,” Teodorovici said.
The Finance Minister added he would personally deal with the customs issue, the large tax payers in Bucharest area, where the main share is.
“I want a radical reform of the tax administration,” he added.
On the other hand, the minister referred to the country risk. “I would like to learn what country risk means. I want it properly defined. If we talk about the public debt, Romania is on the fifth position with the lowest level. (…) We will have our own report, as a country, to include everything, not only the dissatisfactions, but the situations which are different as compared to those adopted by the parliaments of the EU Member States when signing the Accession Treaty,” the Finance Minister said.