Rapid reaction after the fiscal measures discussed by the Government with the European Commission have been revealed. Economics teacher: “Grosolan, absurd and devoid of logic”
Mircea Coșea, photo: Agerpres
“I live a paradox: as an economist I admit that a correction had to be made, but as a citizen of this country I find that these measures are coarse, absurd and devoid of logic,” says in a dialogue with HotNews.ro Economics professor Mircea Coșea, after a document obtained by HotNews showed what measures are discussed by the European Commission. “They will decrease the level of life. It will not die in hunger in Romania, but people will have to fight”
He says he is disappointed with the set of measures that “had to be taken with much more attention to the citizen and to take into account a fiscal justice.”
Professor Coșea recommended a more correct redistribution of taxation between work and capital, a lower level of taxation of small businesses with a higher taxation of large companies.
He says that one of the reasons for having arrived here is the excessive politicization of state companies, to which, Mircea Coșea says, it is absolutely necessary to give up.
“This is the bad part”
“The thought measures are absolutely coarse and will lead to decreased level of life. They will not die of hunger in Romania, but people will have to fight with increasing invoices and inflation. They will eat, to buy medicines will buy, but they will not go to museums, concerts. Part of consumption will be eliminated.”
Coșea also says that the reduction of the budget deficit has negotiated badly with the European Commission. “The authorities had to negotiate a deficit related to the degree of development of Romania, not a nominal reduction. Dom, we reduce the deficit by a percentage per year but we are committed to using the money for investments so we can develop,” explains the economy teacher.
Another indirect effect of austerity, adds Mircea Coșea, will be the supply of a wave of sympathy in favor of Călin Georgescu. “This is the bad part. Instead of the measures to have been discussed with the whole society to be understood and assumed, they will further divide the society, and the polarization will increase,” he explains.
“In the near future, the administrative-territorial reorganization of Romania will also be needed. You cannot stay with over 3,000 mayors,” says Coșea.
The taxes discussed by Romania with the European Commission
According to the document, increases in VAT are discussed from 19% to 21%, from August 1.
Today, the measures discussed between the Government and the European Commission have come to light. Among other things, there are tax increases worth 10.6 billion lei, this year.
At the same time, they are discussed: the increase of the general quota of VAT from 19 to 21%, from August 1 and the increase of the reduced VAT rate from 9 to 11 percent for food, medicines, water and pesticides.
It is added, among other things, the increase of excise duties to fuels, alcohol, tobacco, sugar. About this aspect, Ilie Bolojan has already spoken last week.
An official from the Ministry of Finance said, for Hotnews, that this is “a document in work” and that the final measures are to be publicly announced.
The Bolojan government is to announce the package of fiscal measures, today or tomorrow, as Dragoș Anastasiu said. “There will be a train ordinance again,” he said on Tuesday night.
