POLITICS

Basescu’s warning: If Fiscal Code passes, 2017 will be another 2010, a year of profound crises

Former President Traian Basescu on Monday said he is expecting the Fiscal Code to be voted again by Parliament and promulgated by incumbent President Klaus Iohannis, adding that the responsibility for Romania’s tax and budgetary stability is nil with the politicians.

“I think the new Fiscal Code will be voted and I think President Iohannis will promulgate it. Responsibility for Romania’s tax and budgetary stability is currently nil with the politicians. Just take a look at the special wages of high-ranking dignitaries; Parliament has joined in and they demand special pensions although they have not contributed to the pension pool, so that is theft. Just take a look at the avalanche of promises and especially the avalanches of cuts in the Government revenue while no measure is taken to cut the revenues. The tax on special structures is taken off, excise duties are repealed, but something else needs to be put in their stead. The Value Added Tax (VAT) is cut, but something has to be put to offset. I think irresponsibility regarding Romania’s macroeconomic stability is at its highest,” Basescu said Monday at the headquarters of the People’s Movement Party (PMP).

He added that the theory of former Prime Minister Calin Popescu-Tariceanu is re-implemented now by incumbent Prime Minister Victor Ponta, warning that 2017 will be another year 2010 of profound crises, with an economically imbalanced country.

“I am convinced that this year, with the electoral handouts, is the equivalent of 2007 under Tariceanu. The entering into force of the new Tax Code is the equivalent of 2008 under Tariceanu. I do my duty as an experienced man with no vested interests to warn you that 2017 will be another year 2010 of profound crises, with an economically imbalanced country that will have again a sizeable current-account deficit because consumption is again hugely stimulated but Romania cannot produce that much as Romanians would consume when they have money; on the other hand, they will have to borrow a lot of money to fill the sinkhole following the irrational tax relief extended by the current majority. If Fiscal Code passes, 2017 will be another 2010, said Basescu, according to Agerpres.

He also argued that as far as the opposition National Liberal Party (PNL) is concerned, they have been accomplices to what was voted in Parliament and their attempt to wash their hands off what comes next if the new Fiscal Code comes into force is ridiculous.

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