We share the objective of the CAS reduction, but we want to understand how the deficit will be covered
The IMF shares the objective of reducing the burden of labor taxes, in order to stimulate the creation of new jobs, but the Fund wants to understand how the government plans to compensate the income deficit, said Gerry Rice, the communication manager of the institution. Rice mentioned that the joint mission of IMF and EC had constructive discussions with Romanian authorities referring to how to ensure the continuation of progress in the third evaluation of the current program, but some key matters remain unsolved, so talks are going on. Ioana Petrescu said Wednesday on Antena 3 that she did not present figures during the meeting at Cotroceni with President Traian Basescu because she realized this was a political dispute, in which the 5 pc reduction of the CAS represents a pretext, and she feared her project would be destroyed. She added that the IMF was handed the studies one month ago. Wednesday, Basescu said on B1 TV that, if he were prime minister, he would adopt the CAS reduction, mentioning that he never declared he does not support this measure. Also Wednesday, PM Ponta affirmed that the CAS reduction is covered in accounting terms from the increase of the excise duty, the special tax on constructions and supplementary incomes exclusively based on the new Law of insolvency, but the economy also requires some prospective thinking besides accounting methods, which sometimes lacks “at the highest level.” He added that CAS will “obviously” decrease starting October 1, as the measure is supported by the business environment and can contribute to the fiscalization of jobs in the present favourable economic context.