Ascultă Radio România Actualitaţi Live

New Economic Measures

The joint mission of the IMF, European Commission and World Bank carries on its assessment of the loan agreement with Romania.

New Economic Measures
Foto: rri.ro

Articol de Radio România Internaţional, 30 Ianuarie 2014, 10:37

A joint mission of the IMF, European Commission and World Bank is in Romania until February the 5th, to assess the stand-by loan agreement signed last autumn.

Talks have been held with the Presidency, Government and Finance Ministry, with officials from the National Tax Administration, the National Bank of Romania and trade unions.

They focused on the priorities of the economic reform and on legislation with an impact on the national economy.

A thorny issue is that of increasing the excise on fuel, suggested by the international lenders and accepted by Prime Minister Victor Ponta, but opposed by President Traian Basescu.

In December, the President threatened that he would not sign the memorandum with the IMF.

This is why the excise increase, originally scheduled for January the 1st, was postponed for three months, but PM Victor Ponta says it cannot be scrapped altogether:

Victor Ponta: “This is not possible. It is precisely what the IMF experts told the President. The European Commission and the IMF both made it very clear that we cannot change the budget law, and we have no intention of doing so.”

On the other hand, Traian Basescu argues that the excise raise would lead to inflation and price hikes.

The President and his political rival, PM Ponta, need to reach a compromise on the proposed excise increase, which is a requirement if the precautionary loan agreement is to remain in place.

The government does not intend to actually use the loan, worth 4 billion euros, but having an ongoing agreement with the IMF boosts Romania’s credibility with foreign investors.

The excise issue aside, the international financial mission is also looking these days at the state-owned companies under monitoring.

Challenges in the financial-banking sector are also discussed, including bad loans and ways to encourage lending.

Trade unions suggested that the flat tax system should be replaced by differentiated taxation, while the Romanian Investors Council proposed, among others, a reform of the social security collection system, a reduction of the VAT from 24 to 19%, lower VAT for basic foodstuffs and tax exemptions for reinvested profits.

EU Budget Commissioner visits Romania
News in English 24 Aprilie 2025, 15:34

EU Budget Commissioner visits Romania

The European Commissioner for Budget, Anti-Fraud, Fight against Fraud and Public Administration, Piotr Serafin, is visiting...

EU Budget Commissioner visits Romania
Executive agenda
News in English 24 Aprilie 2025, 15:33

Executive agenda

The government meets on Thursday to approve, among other things, the unblocking of more than 62.000 teaching posts in...

Executive agenda
Romanian heroes fallen in service commemorated in Oarba de Mures
News in English 23 Aprilie 2025, 22:47

Romanian heroes fallen in service commemorated in Oarba de Mures

Romanian heroes who fell on the Western Front were commemorated on Wednesday in Oarba de Mures, 80 years after the end of...

Romanian heroes fallen in service commemorated in Oarba de Mures
Bucharest citizens will be able to apply for an electronic ID card
News in English 23 Aprilie 2025, 22:46

Bucharest citizens will be able to apply for an electronic ID card

Bucharest residents can start applying for an electronic ID card from Thursday. Appointments can only be made online, and the...

Bucharest citizens will be able to apply for an electronic ID card
IMF cuts its growth estimates for the Romanian economy
News in English 22 Aprilie 2025, 23:15

IMF cuts its growth estimates for the Romanian economy

The International Monetary Fund has lowered its growth forecast for the Romanian economy this year to 1.6%, down from 3.3% in...

IMF cuts its growth estimates for the Romanian economy
EC: TikTok has made extra preparations to better manage the May elections
News in English 22 Aprilie 2025, 23:14

EC: TikTok has made extra preparations to better manage the May elections

The European Commission is continuing to work with the online platform TikTok to ensure that there will be no breaches of EU...

EC: TikTok has made extra preparations to better manage the May elections
The fire in Arges "could not have started by natural causes"
News in English 21 Aprilie 2025, 19:01

The fire in Arges "could not have started by natural causes"

The IGAV's two Black Hawk helicopters withdrew last night after dropping 240 tons of water, a vital aid because the...

The fire in Arges "could not have started by natural causes"
Financing guide under the "Rabla for tractors" program published
News in English 21 Aprilie 2025, 19:00

Financing guide under the "Rabla for tractors" program published

This week, another necessary step of the "Rabla for tractors" program was completed - the publication of the...

Financing guide under the "Rabla for tractors" program published