New tax code’s promulgation, uncertain. President Iohannis: We can not afford economic experiments. Gov’t: Wage law completion conditioned by Tax Code promulgation

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Just lowering the fees does not guarantee economic growth so that the new Tax Code is analysed to see if it should be enacted or not.

“I don’t know how it has crept the appreciation that this Fiscal Code would revolutionize Romania’s finances by simply reducing some taxes. I don’t think we should be interested just in cutting taxes but also in the manner in which this is done.

Such a change is useful, but without jeopardize certain benefits, like the sustainability of public finances which has been strengthened, with serious efforts lately.

In addition, being close to election year, we must understand that the distance between political temptation and economic reality,” president of Romania Klaus Iohannis said on Wednesday at the central bank headquarters, attending the launch event of ‘150 years since the birth of King Ferdinand numismatic issue.”

The President said that in the current context, both economically and geopolitically, the prudent approaches should be taken, in charge for the public finances and economic balances situation.

Iohannis has appealed to responsibility, stating that “the recent history shows that we can not allow economic or public policy experiments with half measures, especially when these encroach on our aspirations for freedom and long-term prosperity.”

In this context, the President said that it must give up on some illusions, such as the development which can be achieved on deficits or public debt.

The economy seems to be further built around the state budget, which explains why Romanians expect many things still to come from the state or through the state, the president said, stressing the need to rethink the role of the state by strengthening its institutional presence and to restrict its economic presence.

PM Victor Ponta does not give neither and is conditioning the completion of wage law by Tax Code enactment.

“I hope to have the Tax Code promulgated and to have an autumn predictability. Having the Fiscal Code enacted and all the economic data, we can finalize the wage law this fall and to go to Parliament with all the data so as to fulfill this fundamental objective,” PM said during government meeting.

In his turn, BNR governor Mugur Isarescu said that the next mission of economic policies is to preserve macro balances hardly restored after the crisis appeared, being a mistake to ignore its lessons and to yield to the temptation to choose measures with temporary effects detrimental to a long-term development.

Thus, the governor expressed again, his position towards the adoption of fiscal relaxation measures provided in the Tax Code and that of Tax Procedure, drawing attention to imbalances that may occur on the long term. He noted that nowadays, as well as in King Ferdinand’s Romania, the society is in a moment of state’s upgrading, strengthening institutions, so it is necessary for fiscal discipline and financial stability to be turned into a state of normality.

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