Exactly at the beginning of his term, Nicușor Dan has an almost impossible mission: to coordinate the formation of a government to save the country from the gap in which they left PSD and PNL.
Photo presidency
After a week of negotiations between the four pro-European parties, nothing was done. Between the decrease of the state's expenses and the increase of taxes and taxes, it has not been decided and how to proceed. Nicușor Dan, returned from Odessa, falls in the middle of the battle between PSD and the other parties.
What does not understand PSD
PSD wants progressive income taxation, increasing the taxes paid by the rich. The PSD does not understand that ANAF is not able to collect what the laws in force now provide for, otherwise other collection sales. Progressive taxation would involve a change of software and programs from ANAF, still undigested, but with application from January 1, 2026. Nor will it reach such performance. And we need solutions now.
VAT enlargement is not a solution, as the current VAT revenues are less than 30% of what should be. Then how to collect higher VAT percentages, stopping tax evasion? Exotic dreams!
In addition, the lack of training of persons with responsibilities in the Ministry of Finance and ANAF creates comical moments. A tasty moment spent when the Minister of Finance sent an estimate on the antenna increase – only 18 million lei, which caused laughing in the room and the request to restore the calculations. What claims do you have in the accuracy of the data with which the chiefs of ministries and ANAF work?
At yesterday's meeting, attended by ministers, it was seen that the ministers did not understand anything from the current situation of the budget system. At the questions as they could reduce the expenses, most jumped as burns. Not only can I not reduce, but the funds allocated to certain ministries must increase. From where, I am not able to explain. Take from others and give us!
The urgency of reducing the deficit clearly leads to cutting of expenses
Increasing the receipts, at the level of expenses, by combating tax evasion, is tried for us for 30 years. Without notable results. That our “specialists” are not capable of, that there is corruption, it is no longer time to clarify these aspects.
The package of fiscal and budgetary measures must be sent to the European Commission until June 20, for a decision that will be taken at the EcoFin Council on July 8. You cannot say what Kelemen Hunor appreciated: PSD and USR need “couple therapy”. From the warnings I understood one thing. It is not played with serious deviations from the EU operating treaties. Compared to the provisions of the Maastricht Treaty, 3% of GDP budget deficit, we have 9.5%. Anyway, we received the allowance to reduce it in 7 years to 3%, this year to reach 7.5%. If this discount is not able to do, we are waiting for two extremely serious things: blocking the European funds for Romania through the PNRR and through the cohesion program, and the entry into the “Junk” category, in which we can no longer borrow and have no money for pensions and salaries. The politicians who now negotiate the reduction of the deficit do not seem to be aware of the severity of the situation we are in.
What can Nicușor Dan do
As I said, he is in an almost impossible situation. No one wants to be a prime minister and minister in the future government, knowing what awaits them and if they reduce operating expenses and if they do not reduce them. The dissatisfaction of the population will break in front, until manifestations and violent protests.
Ilie Bolojan seems to refuse to take on the position of prime minister, because he has made the conditions free hand at the choice of ministers and subsequent decisions in the management of the Government. Or something does not admit the pro-European parties, but they do not behave as in Europe.
A technocrat prime minister, without political support, a kind of lighthouse for everything that will follow, does not solve anything. It would be a scapegoat for the failure of the government policy in repairing the current situation. I go over the fact that no whole technocrat in mind would assume that.
Compared to the beginning of the mandate of president of Nicușor Dan, it is now clear that the political parties are not available to the image sacrifices to repair the situation of the budget deficit.
The situation becomes extremely serious and negative for Nicușor Dan. To “oblige” the political parties to do what they do not want, what they have not done in the last 30 years, that is, to sacrifice their interests and of the political client in favor of the welfare of the Romanian people.
He will succeed, he will not succeed, we will see. If he fails, it turns out that the position of president is a hat too big for Nicușor Dan.
