President slams Gov’t again for frequent tax law adjustments

President Klaus Iohannis has criticised the Government again for frequently amending the tax laws and for the law rate of EU funds’ absorption, in a message sent to the SMEs forum on Friday.

„Despite repeated calls on economic predictability, including coming from the SMEs Council, it seems that political decision makers don’t manage to understand the fact that no successful business plan can be carried through by law and fiscal adjustments made at every ruling,” the head of state stated, while invoking the lack of predictability that affects the business environment and that reduces the confidence in the government’s policies.

„Last year, our country reported a 7% economic growth, a record increase within the European Union. As I have repeatedly pointed out, more doesn’t necessarily means better, if the growth is not determined by sustainable factors. That’s why, I warned that the increase based on consumption must be accompanied by the contribution of investments and exports.

The economic results below expectations of the first quarter thus show the need of a change in the qualitative composition of the economic growth. However, beyond figures, it is more concerning that the private sector is reporting a certain damaged confidence in the economic policies perspectives, which must make us worry,” the President added.

He resumed accusations that the Gov’t does not pay attention to the infrastructure development and to the EU fund absorption, which are, „vital aspects for he SMEs and economy in general”.

„The fact that over three quarters of the SMEs don’t have the goal to access European structural funds represents a serious matter. It’s not the fault of entrepreneurs, for the national bodies managing these structural funds don’t manage to facilitate the administrative framework of their accession. Romania risks losing finances and you lose major development opportunities,” Iohannis also told SMEs.

The business environment had to enforce 217 new laws related to the Tax Code in the first three months of 2018, while the number of insolvencies, suspensions and radiations among companies, including among those with foreign capital, has been significantly higher as against last year, according to statistics provided by the Trade Register.