Romania’s government will maintain its policy of cutting taxes and raising the minimum wage and state pensions until 2020 in a bid to improve living standards, the leader of the ruling Social Democrats said on Wednesday, Reuters informs.
The government could also make it optional to join a private pension scheme, said Liviu Dragnea.
“The need for fiscal relaxation both for the private sector and for employees was acute. And … it will continue, we will lower both the number of taxes and their amount,” he told Reuters.
The country will also push for investment to generate budget revenue and attempt to sell stakes in a slew of government companies on the Bucharest bourse over the next two years, Dragnea said.
“We couldn’t wait years to make the changes we committed to in our program,” Dragnea said.
Dragnea said the government would meet its 2018 deficit target without additional measures and he stuck to a growth estimate of 5.5 percent despite a lower than expected first-quarter expansion of 4 percent.
Dragnea said that by 2020, social security contributions would be cut further, to below 35 percent, from 37.25 percent currently. Value added tax would be cut by a further one percentage point to 18 percent, but it was yet undecided whether the cut would occur next year or in 2020.
He said the government planned to lower a 16 percent tax on profit to 10 percent for companies with turnover higher than 1 million euros in 2020. Property taxes were also seen falling.
He added the minimum wage was set to reach at least 300 euros ($350) by 2020, while the minimum pension would rise to roughly 200 euros.
The intelligence services are not unfamiliar to the criminal complaint filed by Ludovic Orban
PSD President Liviu Dragnea said on Wednesday evening that the Romanian intelligence services are involved in the step made by PNL’s Ludovic Orban to file a criminal complaint against Prime Minister Vioruica Dăncilă, adding on the other hand that three Israeli citizens want to sue the PNL leader.
“The services are not unfamiliar to that criminal complaint. The Romanian services, normally, because foreign services are only accused. I’ve learned that three Israeli citizens – I’ve read it in an Israeli newspaper – intend to sue Mr. Orban if he does not withdraw his accusations against them,” Liviu Dragnea told Antena 3.
Last week, PNL Chairman Ludovic Orban filed a criminal complaint against PM Viorica Dancila at the General Prosecutor’s Office. The complaint comes over the Gov’t memorandum on the relocation of the Romanian embassy from Tel Aviv to Jerusalem.
The Liberal leader accuses PM Dancila of high treason, of presenting information in bad faith to the Romanian President, of usurpation and disclosing state secret information.
Dragnea: Two former PSD PMs have rat attitude
The PSD Chairman said on Wednesday that two of the former PSD PMs have rat attitude, referring to the recent exits from the party of several MPs.
“They won’t succeed (taking people from PSD – our note), it’s a rat attitude of two former party prime ministers. As any rat, they eat a little bit, after all, the house would not fall down due to one or two rats. The majority is stable, they won’t have enough votes for a non-confidence vote. They are eager to sacrifice anything so that some laws fail to be approved,” Liviu Dragea told Antena 3 TV on Wednesday.
Former PM, Victor Ponta, founder of Pro Romania party, announced on Wednesday he would request the establishment of a parliamentary group with the Chamber of Deputies, as the party already has 10 MPs. Ponta said some requests to join Pro Romania were turned down, as he doesn’t want ‘barons’.
Ponta reacts: Dragnea’s insults reveal fear
Former PM Victor Ponta reacted on Facebook on Thursday, claiming Dragnea plotted to get him down from the PSD helm, as he did with Mihai Tudose and Sorin Grindeanu, thus answering the accusations of ‘rat attitude’.
“Dragnea’s offenses have reminded me of Traian Basescu and of the fact that Liviu Dragnea was raised by Basescu and was sent to PSD in order to destroy it from the inside/ I am sorry such methods, people and language have been brought to PSD – the people in good faith with PSD did not deserve it. As in Basescu’s case, Dragnea’s insults reveal one thing: fear; fear of people, of imprisonment! This is a good sign. I don’t know if Dragnea’s insults targeted me, Sorin Grindeanu or Tudose – or maybe Adrian Nastase – he envies us and hates us all; he plotted against all of us (…) PSD people and its voters respect us and always welcome us with open arms – whereas they consider Dragnea and Dancila a disgrace! Their opinion matters to me and I will continue to do my duty to them,” Ponta wrote on Facebook.