EC, less optimist on tax revenue than the Government

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The European Commission is less optimist than the Government on the tax revenue following the fiscal relaxation measures and will keep a close eye on each measure, said Angela Filote, the head of the EC Representation in Romania. Addressing a foreign investors’ summit on Monday, Filote argued that Romania’s population needs a salary rise, but one based on competitiveness.

“It’s true that Romania has a strong macroeconomic growth and had a successful fiscal consolidation mainly due to those three agreements with IMF, EC and WB (…) Each of us, the Government, the European Commission, the World Bank, the International Monetary Fund have a crystal globe, we are using economic patterns to read this globe and we now see few things out there: an optimist government-it’s OK to be optimist- but we hope, it won’t be too optimist, as we, the EC are less optimist concerning to the economy’s capacity to generate a higher tax revenue so that they should compensate the recent adopted fiscal measures,” the EC Representation in Romania pointed out.

Angela Filote admitted Romania had an amazing economic growth, but warned the engine of this growth was based on consumption and exports.

“Romania had a low budgetary deficit based on low investments, but the country cannot advance only based on consumption and exports, as these are the main sources of the economic growth. It needs investments. Anyone travelling across the country can see how intense is the need for infrastructure, starting with the transport infrastructure, but we can also see this infrastructure need in almost any field,” Filote said.

She argued that salaries in Romania are still very low, people are working hard and expect to be paid better for their job. However, the EC representative warned that a potential salary rise must be based on competitiveness, as in Romania there is still a predilection for the sectors with low and medium technology and there are insufficient investments in the high technology industries, in research and innovation.

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