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November 30, 2022

Basescu: I favour cutting CAS contributions; I don’t know how it can be supported

In a debate organized by the People’s Movement Party on Sunday, President Basescu Traian stated that although he is not against cutting back CAS by 5 percent, he is “not clever enough” to understand how a measure that requires EUR 5.5 billion can be supported. In the President’s opinion, one enormous problem which can result in serious consequences is the Pension Fund deficit. Lowering CAS contributions is a solution, he emphasized, but not “a smart solution.”
“The smart solution would be to raise the minimum wage, but it would be extremely risky and may cause Romania to lose its current advantage of low labor force costs, which are responsible for stimulating investments,” Basescu added. According to the President, the most important re-launching solution would be to create jobs.
Likewise ironically, Basescu commented on the lack of progress in several highway construction projects, calling attention that “they have not been replaced with anything,” while adding, “Construction work has been stopped and the Bechtel contract is missing. This Bechtel contract is good at hide-and-seek.” Since May 2012, when the current Gov’t was instated, he has not been asked to sign any new contracts or organize new bids for new projects, the President went on.
He characterized the Government’s policy of introducing 35 new taxes as wrong, resembling it to “putting the brakes on the economy.” However, he expressed optimism concerning this year’s economic growth. Basescu also referred to the “unrealistic state budget” and criticized the Executive for introducing futile revenues in the 2014 budget structure, considering that two rounds of elections are scheduled this year – the European Parliamentary elections and the presidential elections.

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