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October 31, 2020
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PM Orban meets CDR representatives, underscores Gov’t’ maintains position in respect to flat tax being maintained

Prime Minister Ludovic Orban, on the occasion of his meeting with the representatives of the Coalition for Romania’s Development (CDR), underscored that the government remains firm in its decision to maintain the flat tax, while also adding that there are no tax increases being considered at this point and neither new taxes will be introduced.

According to a post on the Government’s Facebook page, the proposal that Romania makes to the European Commission regarding the National Recovery and Resilience Plan was the main topic discussed at the consultations between PM Ludovic Orban and the representatives of the CDR.

“The consultations are held before we put up for public debate, in November, the proposal that Romania is going to make to the European Commission regarding the National Recovery and Resilience Plan. The National Recovery and Resilience Plan, which is currently worked upon by the Ministry of European Funds, will be based on three pillars: supporting projects regarding the transport infrastructure, supporting projects meant to reduce climate change effects and stimulating business environment,” reads the post.

The same source mentioned that another topic for discussion was related to the tax regime.

“Prime Minister Ludovic Orban underscored that the government remains firm in its decision to maintain the flat tax, while also adding that there are no tax increases considered at this point and neither new taxes will be introduced,” reads the post.

Moreover, discussions focused on the measures that the Government will continue to take to keep jobs such as “granting free days to parents of children whose classes were suspended because of the pandemic, extending the flexible work hours measure for a period of six months and granting such benefits that are meant to preserve jobs.”

The head of Executive also reiterated that the Government remains open to dialogue while having a pro-business approach in looking for “fast and efficient” solutions to support the economy and the employees.

Participating in the meeting at the Victoria Palace were also the Minister of European Funds, Marcel Bolos, the Minister of Labour, Violeta Alexandru, the head of the Prime Minister’s Chancellery, Ionel Danca, representatives of the Ministry of Public Finance.

Florin Jianu: Working capital support scheme for SMEs to be opened on October 26

The working capital support scheme for SMEs will open on October 26, said Florin Jianu, president of the National Council of Private Small and Medium Enterprises in Romania (CNIPMMR) on Friday, at the end of the meeting of the representatives of the Coalition for Romania’s Development with Prime Minister Ludovic Orban.

“Two topics discussed today – this is about the one billion euros for SMEs. You know that the first measure has already been launched, 2,000 euros for micro-enterprises that do not have employees. This measure will continue until the program budget is exhausted, about 12,000 micro-enterprises have benefited from this measure so far. The budget is for up to 50,000 companies, so we continue to encourage micro-enterprises to apply for this measure. The second scheme, for the working capital, will be opened on October 26, and the third investment measure for SMEs will be opened in the week of November 1 to 8. So these things are already being discussed and implemented,” said Florin Jianu.

He added that another topic discussed was the Economic Recovery and Resilience Plan.

“We asked for an important component of this program to be dedicated to the business environment in several directions. Firstly, we need a relaunch of the Start-up sector in Romania, secondly we need investments and the modernization of the SMEs, but also of the large companies component. Thirdly, we need investments in the construction sector, because the Economic Recovery Plan will mean extremely significant funds for infrastructure and then you also need prepared companies for this sector. We also need investment in the tourism leisure infrastructure and we asked for a component to be in this area too, as we also need to tend to Romania’s food security means, namely agri-food warehouses, investments in companies and in agri-food safety. All these components are and will be found in the Plan for Romania’s relaunch and economic resilience. We hope the amount is a match, the Government has accepted these requirements and we are thinking along the same lines as concerns the business environment,” said Jianu.

In this context, Dragos Petrescu, leader of the Employers’ Organization of Hotels and Restaurants in Romania, pointed out that an important topic of the meeting with the government was related to “the predictability of the business environment relative to the tax system in 2021”.

“The Prime Minister of Romania stressed that the current tax system will not be changed and we highlighted the importance of maintaining the flat tax in next year’s system and it was decided to keep it unchanged, as well as the other taxes in their entirety, that was the Romanian Government’s promise,” Petrescu said.

Dragos Anastasiu: Firm promise of government, that flexible work program to be extended for at least 6 months

The President of the Romanian-German Chamber of Commerce and Industry (AHK), Dragos Anastasiu, said that the government’s “firm promise” is that “the flexible work program, Kurzarbeit, will be extended for at least 6 months”.

“We also had a work-related theme and we have good news, from this point of view, the firm promise is that the flexible work program, Kurzarbeit, will be extended for at least 6 months. It was limited until the end of this year, and a working group is currently working to improve this program because there are some issues that need to be improved,” Anastasiu said on Friday, at the end of the meeting that the representatives of the Coalition for Romania’s Development had with Prime Minister Ludovic Orban.

He added that the digital signature was also discussed.

“We have supported a simple form that can be applied, for the time being there are still ongoing discussions, rather technical, but we will discuss them together with the Government in the coming weeks,” Anastasiu said.

He also mentioned that the field of tourism was another topic addressed during the meeting.

“Here, the good news is that we are working with the Ministry of Finance on a state aid program, a state aid for the entire tourism industry and these days we are even working intensively on it. And, well, we have also requested the extension of the holiday voucher system, the decision has not been taken yet,” said Anastasiu.

He also mentioned a matter discussed in education.

“And the last question I can tell you, as concerns the education field, is a rather important issue in terms of the professional training of teachers for digitization and online teaching. There is a project called ‘CRED’, but there are 220,000 of teachers who need to be trained, so far only 20,000 have been trained, and here we will draw up together a strategy to accelerate this important topic for the current education,” Anastasiu also said, according to Agerpres.

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