Premier: 12 arguments for a CAS cut as from October 1


Prime Minister Victor Ponta said Tuesday at the Government House, when unveiling economic results following the implementation of Government’s policies in the past two and a half years, that there are 12 arguments regarding the economic and budgetary policies implemented since 2012 that make a cut in the social security contributions (CAS) possible as from October 1.
“If we fail to take this measure this year, when there are so many positive elements, it is clear that we will never take it. And probably any government, irrespective of ideology, will only answer to reasons strictly related to bookkeeping or politics and it will not take the measure”, Ponta said.
He then proceeded to enlarge on the 12 areas where the Ponta cabinets stepped in with economic policies and tax and budgetary measures: economic growth, narrowing the Government deficit, public debt, industrial recovery, improving the absorption of European funds, infrastructure investment, increasing wages and pensions, job creation, tax policy, revenue collection and the reform of the National Tax Administration.
He said the planned 5 percent cut in the social security contributions is sustainable and 4.8 billion lei in negative impact following the enforcement of the measure is not lost, but stays at the private companies and is recouped by additional collection to the budget.
The prime minister stressed that “beyond the strictly accounting calculation, the measure is sustainable from the viewpoint of the economic and fiscal-budgetary policies we have been promoting in the last two-and-a-half years. Based on the results obtained in these two-and-a-half years, we must very clearly say that 4.8 billion lei in negative impact that remains at the private firms is not lost, does not flee the country, but is recouped by additional collections to the budget”.
He added that it should first and foremost be noticed that “Romania moved on from its worst recession after 2000 to a stable and grounded economic growth of 3.9 per cent, first in the European Union, and that in accordance with the forecasts of international institutions and experts, the economic growth can be sustainable if some stability and predictability conditions are met”.
Ponta said that in the first semester of this year additional 3 billion lei revenues were collected to the state budget compared with the same period of last year.
He underlined that Romania managed to exit from the excessive budget deficit procedure, reaching, from 9 per cent in 2009 up to less than 3 per cent in 2012-2013, with the same prospects for 2014.
FDI up in first months of 2014
Prime Minister Victor Ponta at the Victoria Palace on Tuesday said that the direct foreign investments continue to grow in the first months of this year, which allows a sustainable and stable growth, after which in 2011 they registered the lowest level over the past 15 years. “After hitting their lowest level over the past 15 years in 2011, the direct foreign investments have continued to grow, including in the first months of 2014, while compared with 2013 figures. This means that the foreign investors have remained interested and confident. The most important thing is that there are not financial investments, therefore volatile, but investments in the real economy, in production, in services. This allows us to have this sustainable and stable growth”, the Prime Minister maintained.
About the European funds, Ponta said that he wanted the figures to speak for themselves.
“We have reached, from 6.3 per cent in 2011, up to 36 per cent in Q1 2014, in the context in which we still have on all unblocked operational programmes in the past years ongoing works and works to reimburse. Strictly in figures, from 1.4 billion euros absorbed in the period 2009-2012, [we have reached] 5.4 billion euros in the period May 2012 – June 2014”, the Prime Minister said.

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