Update3: PM Tudose – Gov’t sitting postponed for Wednesday, Tax Code amendments – uncertain. Fin Min Mișa claims GEO will be on the agenda


Prime Minister Mihai Tudose has announced on Monday that the Government sitting expected today will take place on Wednesday. Tudose also said that the package of amendments to the Tax Code will not be discussed on Wednesday: “I don’t believe the transfer of social security contributions from employer to employee will be on the agenda,” hotnews.ro informs.

Monday morning sources were saying that the Mihai Tudose cabinet might postpone the Emergency ordinance to amend the Tax Code, which would lead to a revolution in fiscal terms. The chances to postpone a decision in this regard are increasing, according to the sources, after the protests staged countrywide Sunday evening against amending the justice laws, and after the negative reactions on the transfer from the trade unions, civil society and the business environment.

The Government postponed the sitting on Friday to Monday, allegedly due to the lack of all positive opinions from the Legislative Council.

Independent sources said the reason for the postponement is rather related to the strengthening of social opposition against the envisaged measures to transfer the social security and health security contributions from employer to the employee.

Fin Min Misa claims the emergency ordinance will be on Wednesday’s agenda

Finance Minister Ionut Misa said Monday afternoon that the emergency ordinance on the new tax provisions, including the transfer of the social security contributions from employer to employee will be on the agenda of the Government sitting on Wednesday.

Misa said he has had a discussion with PM Tudose, who in turn had talks at party level, and it was decided that the ordinance will be discussed by the cabinet on Wednesday.

He stressed the GEO will include the transfer of contributions and that all the positive opinions have been signed.

Asked about PM Tudose’s statement in the morning, that he does not believe the transfer of social security contributions from employer to employee will be on the agenda, Minister Misa said: “I don’t know about the Premier’s statement this morning.”

“The Premier has told me he had talks at party level and the ordinance will be on the Government sitting agenda on Wednesday,” Misa added.

He could not confirm or deny if the decision was made by the party or by the Government.

PM Tudose, PSD leaders hold emergency meeting

Reports say Prime Minister Mihai Tudose, PSD Chairman Liviu Dragnea and social-democrat leaders met at Vila Lac 1 in Bucharest to discuss about the amendments to the Tax Code, antena3.ro informs.

As ALDE leader Calin Popescu Tariceanu did not attend the meeting, it is not a ruling coalition meeting.

Speaking at the Parliament, Senate Speaker Tariceanu said the ruling coalition should not rush in amending the Tax Code. “When such important issues are at stake, fast is not the key factor,” he said.

According to sources quoted by hotnews.ro, there are two options on the table. Amending the Tax Code in the current form is the first one, while the second involves giving up the amendments to the Tax Code and carrying on some amendments to the unitary wage law so that the average net wage growth in 2018 reaches 5% (instead of 25%), PSD sources say.

Protests looming

After CNSLR-Frăția trade union, the largest in the country, which decided last Thursday to start the procedures in order to trigger the general strike in the national economy, Cartel Alfa trade union confederation announced on Friday that the member federations have also decided to start the procedures for general strike.

According to internal sources, Cartel Alfa’s dissatisfactions are related to the fact that the employees become the ‘main victims of the political manipulation called transfer of social security contributions.’

Cartel Alfa claimed that the general strike is ‘the natural sanction’ against the governing politicians who want to enforce tax measures contrary to the promises made to the employees.

“We imperatively request the Government to make a step back, while it is still possible, to give up the transfer of contributions and to draw up a draft state budget without this option. The solution is not to destroy the entire social pattern, functional in all European countries and in all civilized states with a social security system. It is not necessary to change an entire social reality in order to fit in to the ambitions of a minister, but the other way around, the governance should fit to the society’s needs,” the trade union’s communiqué informed.





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