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June 27, 2022

PSD‘s Ciolacu: Inflation still heavily affected by energy price. We don’t have food crisis in Romania

The energy price is still heavily weighing on inflation, Chairman of the Social Democratic Party (PSD) Marcel Ciolacu said on Monday, noting also that the companies have not yet managed to settle their subsidy chapter.

“Inflation – at almost almost 42 percent – I took a look at the statistical figures, is still heavily affected by the price of energy because companies didn’t manage to integrate all the subsidies. If the Energy Ministry closes this chapter, inflation might go down a bit, and then we will have to face the inflation coming from the euro area,” Ciolacu said at the PSD headquarters when asked how he comments on Romania’s record inflation surge to 13.8 percent.

Ciolacu said that a decline in inflation depends on “how well the Energy Ministry will do in the next period”, adding that the governing coalition is seeking new solutions to support the low-income population.

“First of all, there’s a package to support the Romanians about to be implemented and we are looking for other solutions in the next period. (…) I think it is best to finalize our discussions and collect all the figures within the government, then we will take the political decision which we will most certainly announce to the media, together with the Prime Minister, for everyone to know. I think we need to come up with certain measures,” Ciolacu said.


More fiscal measures should be taken by June 1


Chairman of the Social Democratic Party (PSD) Marcel Ciolacu said on Monday that more fiscal measures should be taken by June 1 so that next year’s state budget can be built based on them given that the amendment to the Fiscal Code must be made six months in advance.

“There are several fiscal measures that I think we will have to take and present by June 1. As we well know, the Fiscal Code needs to be amended six months in advance so that the future state budget can be built on the measures taken from June 1, with effect from January 1. I remain of the opinion that in the area of energy prices, at least, a regulation should have come and would have had immediate effects. The compensation, as we can see, has created a gap until the effects are seen. If we had come with regulation, the effects would have been the next day and maybe we would not have reached this inflation,” said Ciolacu, at the PSD headquarters, asked if the governing coalition will discuss the elimination of VAT differentiated on foodstuffs as proposed by the Fiscal Council.

The PSD leader mentioned that there are discussions in the coalition on all these topics. He specified that on Monday morning he had a prolonged telephone conversation with Prime Minister Nicolae Ciuca on these topics.

According to Ciolacu, the government will not introduce new taxes in the coming period.

“Everyone is always coming (and announcing) that we will have better collection. The collection has improved and the new head of ANAF [National Tax Administration Agency] has even given a good perspective at this time. There is also a resizing and resettlement of taxes so that there is better collection, but that doesn’t mean we’re raising taxes,” he said.

Marcel Ciolacu added that he still supports the introduction of the progressive tax “with the necessary deductions”.


We don’t have a food crisis in Romania


The chairman of the Social Democratic Party (PSD) stated, on Monday, that there is no food crisis in Romania, and the plan of measures to support the population includes aid for the food industry and agriculture.

Asked, at the PSD’s headquarters, what the protection measures that authorities are taking to avoid issues with regard to food are, Ciolacu answered: “We don’t have a food crisis in Romania. (…) The inflation and price increases were also caused by the supply chain.”

According to the PSD leader, the governing coalition included in the plan of measures to support the population also aid for the food industry and agriculture, a bonus being granted for those who process products in-country.

“It’s for the first time when we come with 10%, a bonus, for those who process in Romania. This hasn’t happened before. There can’t be effects in one day, because the crops haven’t been harvested in order for processing to occur. Let’s have patience,” he said.



Compiled from Agerpres

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