Last attempt: Coalition for Romania’s Development sends letter to PM Dancila, asks her not to sign ordinance on fiscal changes

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The Coalition for Romania’s Development (CDR), representative for the business environment, have sent a letter to Prime Minister Viorica Dancila, a last attempt to stop the adoption of an emergency ordinance on fiscal amendments, recently announced by Finance Minister Eugen Teodorovici.

CDR representatives admit it “is the last attempt to prevent a decision of the Government you lead, which risks having very serious consequences on Romania’s economy.”

They mention they trust the good intentions, but the ordinance has been written without consultations and analysis, includes errors and conclusions drawn being based on erroneous analyses, which could be solved following a dialogue with the business environment.

“The solution, as seen by us, is not to legislate by GEO, before the winter holidays and with enforcement in several days, but by honest dialogue, based on arguments, figures and impact studies. This calls for time and effort,” the letter reads.

CDR believes that the acceptance of this request, when Romania is about to take over the presidency of the Council of European Union, will represent a strong message for the business environment that the Government has the capability to solve by dialogue the problems and the best solutions could be found together.

“Therefore, we are asking you not to confirm with your signature a normative act which has all the chances to start a crisis for Romanian economy, and to decide, as we have requested countless times this year, to bring to consultations the ones involved, from administration and from the business environment,” the letter reads.

It is not clear if the Government intends to approve the emergency ordinance during the sitting on Friday, as rumours have been divergent in this regard.

CDR representatives issued a communique on Wednesday warning that the avalanche of the fiscal-budgetary decisions announced Tuesday evening will have significant impact on the entire economy, it is unacceptable and is the symbol of the fracture between the governance and the companies.

Coalitia pentru Dezvoltarea Romaniei (Coalition for Romania’s Development) comprises of 25 business associations, 19 organizations as associated members, with the aim to be a common voice of the business community, to offer the private sector’s expertise within the consultation process regarding public policies and to promote a transparent consultative process.

Finance Minister Eugen Teodorovici announced on Tuesday that banks will be differently taxed, according to ROBOR (Romanian Interbank Offer Rate). The higher the index is, the higher taxes will be, says the new tax, called “tax on greed”.

The Fin Min announced this measure among other several fiscal measures envisaged for 2019, such as the EUR 10 billion investment fund, the decrease of taxes in constructions, but also the controversial decision to take the “vice tax”, which encompasses money normally intended for the investments in hospitals and to the big healthcare programmes to counter chronic diseases, and redirect it to the state budget to cover for the state employees’ salaries and for other expenses in the central administration.

He also announced the capping of the gas price for a three-year period: RON 68 megawatt/hour. The measure will apply until February 28, 2022.

In the case of Pension Pillar II: Funds can invest in public-private partnerships; administration fee drops from 2.5% to 1%; the second commission of 0.05% of the assets changes according to the fund’s performance; a person may withdraw the money, but not earlier than 5 years, and the withdrawal fee is 2% of the assets.

 

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