PM Tudose: Transfer of contributions from employer to employee, via emergency ordinance -UPDATE

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Prime Minister Mihai Tudose stated on Tuesday that the transfer of social contributions from employer to employee will be accomplished through an emergency ordinance and the decision will be made during Wednesday’s Government meeting.

Asked, at the Parliament Palace, whether the contributions will be transferred from employer to employee, Premier Tudose answered affirmatively.

Also asked if this transfer will be accomplished through an emergency ordinance, the premier replied “Yes, through an ordinance.”

 

“Relationship with Dragnea, very good”

 

Tudose said on Tuesday that his relationship with national leader of the Social Democratic Party (PSD) Liviu Dragnea is “very good”, reiterating that the amendments to the Tax Code will be considered by the Government at its meeting on Wednesday.

“It’s very good,” Tudose said at Parliament Palace, when asked by journalists about his relationship with Liviu Dragnea.

Tudose reiterated that the amendments to the Fiscal Code will be on the agenda of the Government meeting on Wednesday.

“Tomorrow it is on the agenda. Don’t we vote tomorrow? Are we voting today?,” Tudose told the journalists.

 

Liviu Dragnea denies that PM Tudose rejected the tax package

 

Social Democratic Party (PSD) leader Liviu Dragnea on Tuesday denied that Prime Minister Mihai Tudose rejected the tax package that the Government is about to adopt.

When asked, at the Parliament Palace, whether Tudose on Monday rejected the tax package and said he no longer wants to promote it, Dragnea said: “No.”

Liviu Dragnea refused to answer any other questions related to the ruling coalition and the tax measures that are about to be adopted.

 

Deputy Premier Stanescu on fiscal measures: We agreed on a certain formula; everyone agrees

 

Referring to the fiscal measures that the Government plans to adopt, Development Minister Paul Stanescu stated on Tuesday, at the Palace of Parliament, that there were discussions within the coalition and with specialists and an agreement was reached on a certain formula.

Asked why Monday’s Government meeting – the meeting in which the fiscal measures should have been discussed and adopted – was postponed, Stanescu said: “Because we had a lot of discussions on this topic. The Fiscal Code is a very important thing.”

“Of course, we had discussions with specialists, within the coalition, we decided on a certain formula and everyone agrees, and we will enter the Government meeting tomorrow (Wednesday – editor’s note),” Stanescu said.

Asked whether Premier Tudose announced he no longer wants to issue a government emergency ordinance for this fiscal package, Stanescu said: “No. I don’t know. Ask the Premier, I don’t know what to tell you.”

 

Grindeanu, advice for Tudose: He should communicate more on fiscal measures topic

 

On Tuesday, ex-Premier Sorin Grindeanu had a piece of advice for incumbent Premier Mihai Tudose, in the sense that he should communicate more on the topic of the fiscal measures that the Government plans to adopt.

“Maybe as a piece of advice on my part, which in fact I’ve already conveyed to him, there should be more communication on this topic, because it’s an important stage in explaining why these measures are good. For the time being we hear in the public space only the explanations of those who criticise, which is not all right. It’s the Government’s job to explain these things,” Grindeanu said at Parliament, after he was confirmed as President of ANCOM.

He declared his conviction that Tudose has taken a good decision in what concerns adopting the fiscal measures via a government emergency ordinance.

“I’m convinced that, since Premier Tudose took this decision, it’s a good decision which is to the benefit of the people,” Grindeanu said, referring to the decision to adopt the fiscal measures via government emergency ordinance.

 

BNR’s Isarescu: We are looking very closely at inflation trends; if it tends to last we will react

 

The National Bank of Romania (BNR) is looking closely at the inflation trends, expecting an increase in the first months of next year due to a statistical effect, but if there are to be spurs that tend to last, then it will intervene, Governor of the National Bank of Romania Mugur Isarescu said on Tuesday.

“I tell you that we will look very closely at the trends to see if it is something more or less accidentally, statistically. Statistically, we are expecting inflation to peak in the first quarter. Why? Because last year by factoring in the Value Added Tax (VAT) inflation was very low, and then one-year inflation January 2018 against January 2017, shows an increase, even if the monthly inflation in January next year will not be high. Neither will it be so in February nor in March; so we are expecting such a surge in inflation, but we know that it will be overtaken. There is no point in reacting to it by taking measures that would disturb the economy to tackle something that is only temporary. But, if we see that there is a tendency and an increase in inflation that tends to last, we will of course react,” said Isarescu.

He added that in the inflation report he will present on November 9, BNR makes a comparison with Poland, Hungary, the Czech Republic, and also with larger central banks. Based on data and tables it can be seen that in all that countries a fairly large difference is maintained between the monetary policy rate and the actual inflation rate, including in the European Union.

Asked about the domestic risks posed by fiscal policy, he said he hoped they would diminish in the government’s meeting on Wednesday.

“We hope that the risks will diminish tomorrow, as I understand there will be a meeting tomorrow. A decision will be made,” said Isarescu.

 

Protest against amendments to Fiscal Code, scheduled for Wednesday in Victory Square; companies, asked to give employees time off by rotation

 

The “Corruption Kills” webpage has launched a call for a protest against the amendments to the Fiscal Code, a protest scheduled on Wednesday, at 11 a.m., in Victory Square. The protest would thus take place on the same day in which the Government is expected to adopt, via emergency ordinance, the transfer of social security contributions from the employer to the employee. Likewise, the organisers of the event titled “Stop the modification of the Fiscal Code!” are calling on large companies to allow their employees to take time off, by rotation, in order to take part in the protest.

“November 8th is the Black Wednesday for Romania’s economy. In order to patch up a budget that it was unable to manage, the PSD-ALDE Government is capable of destroying Romania’s free economy. The amendments to the Fiscal Code that the Tudose Cabinet plans to adopt via another democratic backsliding (Emergency Ordinance) will bring chaos to business plans and salary scales. In this way, the government members’ irresponsibility is destroying any chance for predictable and stable economy in Romania,” the page of the event reads.

Organisers announce that on Wednesday, starting at 11 a.m., people will gather in Victory Square in order to stop this toxic government emergency ordinance.

“Starting at 11 a.m., we will be in Victory Square to stop this new toxic OUG [Government Emergency Ordinance]. We call on the large companies to support this protest and to give their employees several hours of time off, by rotation, for them to join us. They should not allow themselves intimidated by conspiracy theories and should understand that this is the last chance to fight against a ‘Fiscal Revolution’ that will put their businesses at risk,” they add.