POLITICS

Basescu promulgates SS reduction act, but vehemently criticises Government

President Taian Basescu onThursday signed the decree on thepromulgation of the law cuttingSocial Security contribution by 5per cent, saying it was a subject that,once implemented, would have avery major impact on Romaniansafter 2015.Traian Basescu noted in a televisedpress statement that the lawwas extremely simple and did notpose any non-constitutionalityissues. ‘I wouldn’t take the risk ofsending to the ConstitutionalCourt a law consisting of four sections,I would put myself in anembarrassing position if the Courttold me it is constitutional’, thepresident said, according toMediafax.In the same statement, the headof state took the opportunity toexpress again, vehemently, his dissatisfactionwith the Government,its action and latest statements byministers in the Ponta Cabinetwhich he called ‘a deeply incompetentgovernment, be it the premieror the minister of finance’.President Basescu’s irritation followedFinance Minister IoanaPetrescu’s statement in theChamber of Deputies, during thedebates on the ACL regularmotion, on Tuesday, that ‘she didnot think it was the task of theGovernment to create jobs’. Petrescu said that ‘the job of theExecutive is to create a fosteringframework, a business environmentthat favours the creation of jobs’.‘I do not believe it is the task ofthe Government to create jobs. Ithink our job is to create a fosteringframework, an environment that isfavourable to the creation of jobsand encouragement of employmentin the private sector. And theGovernment I am a member ofdoes exactly this’, Ioana Petrescusaid in the Chamber of Deputiesduring the debates on the simpleACL motion with the headline‘MTO Ministry – lies, taxes, haltingeconomy’. She said the tax exemptionon reinvested profit and thereduction of the Social Securitycontribution would have a positiveeffect on increasing the number ofjobs. ‘Both measures seeking to easethe tax burden on labour and thetax exemption on reinvested profitwill have a positive impact on thecreation of new jobs, will encourageemployment, will bring out undeclaredor underdeclared economyhiring ‘ Ioana Petrescu also noted atthe ACL motion debates.On the same occasion, she hadsaid that effects of the simulativemeasures could already be seen inthe higher number of people hiredthrough the public employmentservice in the first seven months of2014, when a total of 234,000 individualswere hired.‘Maybe Mrs. Petrescu happensto see a table showing the situationof the absorption of Europeanfunds and will realise that the creationof jobs is the task of theGovernment. This is unbelievable(…). If we had had no foreignmoney, especially free money fromthe EU, I would have said theGovernment had no resources, buthow can the Minister of Finance ofRomania possible say that it is notthe task of the Government to createjobs? Why did you promise amillion of new jobs in this case?’Traian Basescu is quoted byMediafax as having said. He notedthat ‘Romania is not going to comeout of difficulty until the job creationbecomes zero priority’.‘The Government doesn’tunderstand what it needs to do. Wehave a deeply incompetent government,be it the premier or the ministerof finance, and incompetenceis even more serious when you havethe necessary resources on thetable’, President Basescu also said.President Traian Basescu pointedout that ‘it is unbelievable’ andthat he ’did not believe it possible tohear in Romania, in 2014, a ministersay that the creation of jobs isnot the task of the Government’,since the Government is supposedto implement the cohesion funds.‘The Government hasresources and only the Government can spend thismoney. How can you, the Ministerof Finance of Romania, and you,the Prime Minister, that the creationof jobs is not the task of the Government? Then why did youpromise to create a million newjobs?’, the president further commented.On Thursday night, Basescudirected his criticism against themember of the Cabinet and theMinister for European Funds,Eugen Teodorovici, whom hecalled ‘disco boy’, but also againstLabour Minister Rovana Plumb,whom she called ‘priceless’.‘He [Eugen Teodorovici – ournote] was informing us on the factthat the operational programme foraiding underprivileged individualsin the period 2014-2020 had justbeen sent to Brussels for approval.No one makes you speak when youdon’t know. Please take a look atthe programme that tells abouthow we will spend EUR 442 M inorder to provide disadvantagesindividuals with food, cooking oil,school bags and all sorts of things,not jobs’, Basescu said.He criticised the Governmentfor allocating money for electoralcharity and gifts for the underprivilegedinstead of focussing on directingEuropean funds to investmentand infrastructure upgrading. ‘If allthe people could become poor andbecome dependant on theGovernment, this Governmentwould be very happy’, the presidentsaid. ‘I’m not saying those peopleshould not be helped, but whensomeone from the sameGovernment says <It is not our taskto create jobs> we can see how thatreflects on the approach taken bythe minister of European funds’,President Basescu added.Traian Basescu further said thathe was no longer going to open thesubject of ‘the execution of investmentfrom the 2014 state budget’,but noted that it was a ’painful’ one.‘It’s evident that they were notexecuted. The money that has notbeen spent compared to the up todate scheduling represents over 22per cent, which means that thisGovernment preoccupation withthe creation of jobs is zero and I’mtelling you that Romania is notgoing to come out of difficultyuntil it turns the creation of jobsinto its zero priority. It is the onlysecure source of income also for theretirement benefits fund and theonly source of economic growth’,President Traian Basescu also said.

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