ECONOMY FINANCE&BANKING

Isarescu about the possible contribution of some of the members of the BNR leadership to the government program: BNR’s independence doesn’t mean the lack of collaboration with the Government

The Governor of the National Bank of Romania (BNR), Mugur Isarescu, refused to clearly confirm or refute, on Monday, when asked by the journalists, if there are members of the BNR leadership who have participated in making the government program of the new Government, claiming that the ideas included in it can be found “in any manual of economic policies” and that the independence of the central bank doesn’t mean the lack of cooperation with the Government.

The new government program of the PSD-ALDE coalition provides that all the companies in Romania will pay, starting from January 1, 2018, a turnover tax, instead of the profit tax, which will disappear. The measure has been harshly criticized by several managers and businessmen claiming that it contributes to significantly increasing the fiscal burden in a very short time.

Mugur Isarescu stated that he doesn’t believe that this idea came from BNR, but he underlined that BNR’s independence is not weaker if the representatives of the central bank are sitting at the negotiation table with members of the Government.

“BNR’s independence will not be weaker at all if we are sitting at the table to discuss. The ideas deemed to come from BNR can be found in any manual of economic policies. They don’t necessarily have to come from somebody working at BNR. The important thing is who is receiving them, how is receiving them and how is implementing them. (…) The question must be addressed to those of the Finance Ministry. I don’t think it came from us” Isarescu stated.

The Governor pointed out that the BNR experts must be politically neutral when they express themselves in public.

“There are hundreds of experts working at BNR, they are neutral in their public manifestations. The may be oriented to the left, or to the right, or to the center. They are not allowed to manifest themselves, but their belief is their belief, ideologically speaking” Isarescu stated.

Around a half of the companies in Romania will pay higher taxes to the state if the Government will introduce the turnover tax, according to an impact survey made by Iancu Guda, the President of the Association of the Financial Banking Analysts in Romania (AAFBR), and lecturer at the Romanian Banking Institute (IBR). Also according to the survey, one in three companies is risking to become insolvent because it will not be able to cover the growing fiscal burden.

 

 

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