Discussions about tax measures, at the end after more than five hours. A presidential counselor talks about progress. “Some important directions and objectives were approved”
The PSD, PNL, USR, UDMR delegations continued the discussions at the Victoria Palace on Tuesday regarding the package of economic measures to be adopted to reduce the budget deficit. The discussions in the technical group lasted almost five hours and ended without any agreement. On Monday, the meeting, attended by President Nicușor Dan, lasted three and a half hours and the leaders of the parties participated. They have different positions on several measures, including the introduction of a progressive tax, which is desired by the PSD, but rejected by PNL and USR. The discussions will continue on Wednesday.
Discussions will continue tomorrow
“Today, the four parties continued the discussions on fiscal-budgetary measures and have made progress,” announced, in a message on Facebook, the presidential adviser for economic and social issues, Radu Burnete.
“The discussions I attended have focused exclusively on reducing expenses, being agreed some important directions and objectives, to be detailed in the following days in specialized working groups,” he continued.
He said that the discussions will continue tomorrow, starting at 3:00 pm, and will focus “on the reduction of expenses by analyzing public investments, and then approaching the measures to increase the budget revenues”.
Discussions ended after more than five hours
The discussions ended after more than five hours, according to Hotnews information. No official announcement has been made so far, but
The meeting is still in progress, five hours after it started.
The discussions in the Victoria Palace were started in the Victoria Palace
At this time, a new round of negotiations on the economic measures between the four parties begins at Victoria Palace.
Representatives of parties participating in discussions
The PSD delegation that will enter the negotiations that will start shortly at the Victoria Palace is made up of PSD interim president Sorin Grindeanu, Deputy Prime Minister Marian Neacsu, deputy Adrian Câciu and Cristian Socol, one of the party's advisers.
The PNL delegation consists of Ilie Bolojan, Bogdan Huțucă, Dan Motreanu, Cătălin Predoiu. USR is represented by Dominic Fritz, Cristian Ghinea, Claudiu Năsui, Oana Țoiu and Cătălin Drulă. From the UDMR are present Kelemen Hunor and Tánczos Barna.
“PSD's red lines”
The PSD issued a press release specifying the “red lines” that they do not accept for the future government:
- PSD did not propose and does not support the introduction of a tax on bank transactions. On the contrary, PSD believes that such a measure is counterproductive as it discourages digital transactions, thus emphasizing the risks of tax evasion, trans
- The PSD did not propose and does not support the extension of the CASS application or the increase of the income tax that would affect the low and medium income. PSD does not accept in any form the perception of a fixed amount of 100 lei from pensions less than 3,000 lei.
- PSD has not proposed and cannot agree with stopping highway projects or productive investments. It is necessary to prioritize these investments, but without canceling any ongoing project.
- The PSD did not propose and does not support an increase in the general VAT rate and categorically excludes the increase of the special VAT rate to food and drugs.
- The PSD did not propose and in no way support the cancellation of fiscal facilities granted to vulnerable persons (persons with disabilities, beneficiaries of the minimum guaranteed income or families with many children).
- The PSD did not propose and does not support the decrease of agriculture subsidies or the number of farmers eligible to receive these subsidies.
- PSD did not propose and does not support the growth of excise duties. Such a measure would generate inflation and affect productive sectors, such as industry and agriculture.
PSD also stated a series of measures it wants:
- Reducing state spending, by committing institutions and by drastic elimination of unjustified bonuses.
- Fair distribution of fiscal load. In the first stage this can be achieved by a solidarity fee on large and very high incomes, including on special pensions. Subsequently, after the completion of the ANAF digitization, it is necessary to apply progressive taxation on all income.
- The need for measures to stimulate the economy, to maintain the economic growth and revenues to the state budget.
PSD does not support VAT growth as it will affect those with low or average salaries and will generate inflation, said PSD spokesman, Petre Florin Manole, in a statement offered to the press at the end of the PSD meeting.
PSD also agrees with increasing gambling taxes. According to Hotnews sources, the discussed version is a 19% VAT for 20% luck and tax for any win in this area.
Asked by the entry of the PSD to the government, Manole said that “if the other dialogue partners come with acceptable measures or agree with our measures, we can discuss tomorrow.” He rejected a government entrance if income is affected.
PSD wants to introduce progressive tax and expects PNL and USR to argue why they do not want this measure, Manole said.
USR does not want progressive tax
The USR does not support the taxation of bank transactions, announced Oana Țoiu, USR vice-president, in a press statement in Parliament. “It is not a measure that we support. To encourage the transfer of payments more in cash will have the opposite effect,” said Ţoiu.
However, the formation is opposed to a progressive taxiv, a measure desired by the PSD. “We do not agree with the progressive tax, because those who have high salaries already contribute more to the budget, depending on the percentage.” Ţoiu explained.
In today's meeting the PSD leaders discussed the measures that are currently on the Cotroceni negotiations table.
According to HotNews sources, PSD supports the introduction of progressive tax and a solidarity tax. The fee is to be a temporary measure. The progressive taxation is implemented is needed to globalize the income, a procedure that takes time. Therefore, the social-democrats argue that the solidarity tax will be introduced intermediate until the progressive taxation is prepared.
The first threshold would be introduced for gross incomes exceeding 17,400 lei. Those who exceed this income will have to pay an increased tax on the difference between the minimum threshold and the income obtained. It would be a tax between 16% and 20%. The percentage is to be discussed with the leaders of the other parties who want to enter the government.
Reducing expenses by combining institutions to make a more supple state is the only area in which the parties that negotiate the formation of the future government have reached an agreement, said the interim president of the PSD, Sorin Grindeanu, before the informal national office of the party.
“There is a consensus on the reduction of expenses on certain areas on institutions. In short, trying to make the state more supple,” he said.
He rejected the taxation of banking transactions, a measure that was conveyed during the negotiations. “We have not proposed it and we do not support it,” said the PSD leader asked by journalists about the possibility of introducing this tax.
PSD video does not support the taxation of bank transactions. Sorin Grindeanu announces which is the only area where parties have reached a consensus
A new round of negotiations
Presidential counselor Radu Burnete confirmed that the negotiations between the parties will continue today, June 10, with the participation of the political leaders, in order to materialize a clearer set of measures to reduce the deficit.
In addition to the leaders of the four formations, the technical group discussing the fiscal package will meet on Tuesday.
Also, the PSD leadership will meet on Tuesday, from 11.30, in an informal national office meeting to discuss the economic measures and the formation of the future government.
The PSD did not officially announce if they enter the government with members in the Executive. The meeting takes place in a small format, following the interim president Sorin Grindeanu, first vice-presidents and vice-presidents.
President Nicușor Dan is not in Bucharest today. He will go to the “Getica” meeting center in Cincu, together with the King of Spain Felipe VI, then leave on an official visit to the Republic of Moldova.
“The increase of taxes, a state -of -the -art solution”
After the discussions on Monday, Radu Burnete announced that the priority of President Nicușor Dan is to reduce the state's expenses, to combat the waste and to increase the efficiency in collecting revenues.
“The increase of taxes remains only a solution of the last instance,” he added.
“After a week of technical consultations at the Cotroceni Palace regarding the solutions to reduce the budget deficit, the discussions between the parties that could form the future ruling coalition are still in progress. The process is a serious and applied, which is why no final decisions have been made,” Burnete stressed.
From the hotnews information, after the Monday meeting, it was not a consensus on all the measures that the future coalition should assume.
