President Nicușor Dan and the leaders of PSD, PNL, USR, UDMR are to meet again on Tuesday at Cotroceni to continue discussions on the package of economic measures to be adopted to reduce the budget deficit. Monday’s negotiations, which lasted about three hours, ended without a final agreement. Presidential advisor Radu Burnete confirmed that negotiations between the parties will continue today, June 10, with the participation of political leaders, in order to materialize a clearer set of measures to reduce the deficit.
In addition to the leaders of the four political parties, the technical group working on the fiscal package will also meet on Tuesday.
Also on Tuesday, at 11:30 a.m., the leadership of the Social Democratic Party (PSD) will hold an informal meeting of the National Standing Bureau to discuss economic measures and the formation of the future government.
PSD has not officially announced whether it will join the government with executive members. The meeting will be held in a limited format, attended by interim president Sorin Grindeanu, the first vice presidents, and vice presidents.
President Nicușor Dan is not in Bucharest today. He will visit the “Getica” Joint Training Center in Cincu alongside King Felipe VI of Spain, and later depart for an official visit to the Republic of Moldova.
“Tax hikes, a last-resort solution”
After Monday’s discussions, Radu Burnete announced that President Nicușor Dan’s top priority is reducing state spending, eliminating waste, and improving revenue collection efficiency.
“Raising taxes remains only a last-resort solution,” he added.
Former Finance Minister Adrian Câciu told Digi24 on Tuesday, in the context of negotiations for the fiscal measures that will be assumed by the future Government, that the Social Democratic Party will not accept a tax on banking transactions. “If others want to go crazy, let them do this, but without PSD,” he said.
Regarding the progressive tax measure, Câciu says that it can be applied to global income. “We believe that progressive taxation on global income, not on salaries, is what changes the fiscal paradigm. And it is really a matter of reform, not patching. (…) There is a public perception that says it cannot be done. From what was reported to us by the Ministry of Finance, I understand that globalizing incomes can be done, and this progressive taxation would not be applied to salaries. If you have only one income, you do not do it. But if you have multiple incomes and you exceed a certain threshold, then you can do it. It is a decision that is also made after consulting the business environment and the people, because it affects part of the incomes of citizens, so you have to have this consultation and go to an area where it does not affect or affects as little as possible”, says Câciu.
President Nicusor Dan: “It’s not deadlock, but technical discussions”
President Nicuşor Dan said on Tuesday in Chisinau that it is possible that the prime minister will be appointed this week, and technical discussions on measures to reduce the budget deficit will continue on Wednesday.
“What I said a few days ago – I said that it is a possibility to appoint the prime minister this week, a possibility that remains, but it is a possibility, not a promise,” the head of state explained.
He also said that technical discussions on measures to reduce the budget deficit are not at a standstill.
“The party representatives had technical discussions in which they identified (…) about 60-80 possible measures to reduce the deficit that they listed, for some the budgetary impact was calculated. Yesterday there was a political discussion on this set of measures and on the others that are somehow much easier to agree on in the areas corresponding to the other ministries and, following yesterday’s discussion, it was considered correct for them to continue in a form in which the political representative, that is, the party leader, would be present, both technically and on the economic side so that the political side would understand better”, explained Dan.
“It is not a blockage, it is a technical discussion with obvious effects, which continues today and tomorrow”, emphasized the President of Romania.