The current consumption trends show rather modernity in the case of Romania and should not be regarded as a problem, according to Prime Minister Mihai Tudose.
“After Washington Post and AFP spread all sorts of ‘false information’ on Romania’s economic growth, even calling it the ‘tiger of Europe’, Pierre Moscovici, European commissioner for economic and financial affairs, argues in the autumn 2017 European Economic Forecast that Romania has the second largest economic growth in the world after China. Such bad a position to be on! So bad that we have performed the second positive budgetary revision this year and allocated more money for health, education, social security, infrastructure and other priority areas of government, while sticking to the 2.96-percent budget deficit target! This is so bad that INS shows that industrial output posted a record 7.7-percent growth in the first nine months of the 2017,” Tudose wrote Thursday in a Facebook post.
According to Tudose, those arguing that this economic growth is based solely on consumption posit “a false problem.”
“This is the truth from figures, and those arguing that this economic growth is based solely on consumption posit a false problem. For example, the United Kingdom (84.1 percent), Poland (76.5 percent) and Croatia (77.9 percent) are countries with a higher share of consumption in the Gross Domestic Product (GDP) than that of Romania (75.9 percent). Consumption trends show rather modernity in Romania and should not be seen as a problem. We are trying this way to change perception over this false problem and attract everything that can bring added value to our project to modernise Romania,” Tudose wrote.
“The President has his opinion on tax reform, we have ours”
President Iohannis has his opinion of the tax reform, while the Government has its own opinion, which both trade unions and employers believe to be the better, Prime Minister Mihai Tudose said on Thursday.
He added that he had not talked with the President lately.
Asked if a discussion with Iohannis is necessary given the criticism levelled at the tax measures and also at the Co-operation and Verification Mechanism (CVM), the prime minister replied: “I do not remember having been criticised for CVM. What is the accusation levelled at the Government? There is an institutional relationship, but we have not had any reason to activate it. He has his own opinion on what tax reform is all about and we have ours. It seems that ours is the better one, as confirmed by trade unions and employers’ associations,” Tudose said at Baile Herculane, where he was to attend a meeting of the National Executive Committee of the Social Democratic Party (PSD).
According to him, no one would threaten with protests besides trade union leader Bogdan Hossu. He mentioned that teacher’s trade unions were present in the room two days ago at the congress of the trade union confederation, having reached an agreement. “They said that they still display willingness to manifest themselves, but not those in the education system – and I mean here CNSLR Fratia – only the private sector if and when the relationship between employers and employees fails to observe what can be observed from this tax package,” said Tudose.
He added that the economic environment is attractive to foreign investors. “Yes, it is attractive to foreign investors, given that there are foreign investments every week in Romania,” Tudose said.
“When all companies announce that wages will not be cut – on the contrary, some will increase – can we not get out of this manipulation? Because January 1 and February 1 will come with the pay slips, then what will others say? ” PSD national leader Liviu Dragnea said in his turn.