USR puts conditions for possible tax increase. What Dominic Fritz says about collaboration with PSD
Dominic Fritz, the mayor of Timisoara, photo: Inquam Photos / Virgil Simonescu
The President of the USR Dominic Fritz has stated, in an intervention at Digi24, that an agreement for a tax increase must be preceded by a common project of the parties in the future coalition regarding the reduction of the state expenses. Another condition for a governance agreement is an announcement regarding the name of the prime minister, this being the one who will have to apply the measures to reduce the budget deficit.
“Nothing is approved until the whole package is approved. I think that we will only know the name of the prime minister, we will be able to sign the coalition agreement with signatures,” said Dominic Fritz referring to the discussions scheduled for Monday between President Nicușor Dan and the leaders of the parties.
“It will be difficult to close the discussion about measures without knowing who the man will assume them,” Fritz added, referring to the measures to reduce the deficit.
Reducing expenses before increasing taxes
The USR claims that, before the stable, the measures to increase the income by imposing taxes, it is necessary that the parties participating in the negotiations must agree on the State Expenditure Package Package.
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“We have to close the weakening package of the state that spends much more money than we allow, then we can see by what method we increase the revenues,” Dominic Fritz said.
He said that the state must save 39 billion lei until the end of this year and admitted that this amount will be difficult to reach only from discounts. But the dimension of tax increases should be established only after it will be known how much the state saves.
“As long as it is not clear what the state will transmit, the public administration, we cannot agree to tax increases,” Fritz warned.
As for the possible tax increases, he mentioned taxes on gambling, tobacco and alcohol, as well as taxes for the use of roads that are among the smallest in the European Union. An increase in VAT should be taken into account as the last solution, after it is known and how the ANAF can be removed from the “paralysis” that affects the level of collection.
Another source of money could be the listing of some state companies. Fritz exemplified with the increase in the number of listed shares of Hidroelectrica, from 20% to 40-50%.
USR support for Bolojan
Invited to comment on the entry into the government of the PSD, Dominic Fritz said that it is necessary to obtain a consensus with the social-democrats. “It is a perspective that does not necessarily delight me, but this is the political reality,” said Fritz.
On the other hand, he said that the social-democrats should not be crammed of obtaining the position of prime minister, as Romania has reached a stage where it has to give up the old customs related to the formation of a government.
“Much less matters the old logic of the parties, which is why we support Mr. Bolojan, even if he is not a USR member. I think it will be difficult to tell people that something has been changed if we come with the same faces (…) We are in a dangerous period with solutions about the country, not about parties and I expect this to see this.”
