VAT increase, "a political error"

President Traian Băsescu claims that the 5 percent VAT increase was a political error, which was supported even by "the big boys that hassled at the Convention of the Liberal Democrat Party", that caused a five-month delay in overcoming the recession.

The Head of State said that the VAT increase was one of the biggest political errors, and it was back then supported by the coalition.

Traian Băsescu said that he supported the 10 percent decrease in pensions, as a temporary measure, but the Constitutional Court rejected the Ordinance regarding it.

The President added that there was another suggestion to introduce a 10 percent tax on pensions higher than 340 RON.

Traian Băsescu also said that the pension tax could have been eliminated in gradually until January 1, 2011, while a VAT reduction takes years.

The Head of State criticized the coalition from that time and said that its representatives rejected a pensions" decrease and threatened to quit.

The Romanian President also said that the VAT increase caused a five-month delay in overcoming the recession.

Heating Subsidy "Unfair"

President Traian Băsescu claimed that the heating subsidy is "unfair" and wondered why someone with three acres of unworked land or someone who earns enough money needs it.

The Head of State mentioned that authorities do not intend to cut subsidies.

"The objective is not to cut subsidies, but to focus them", Băsescu said, adding that those that need subsidies will get them.

"I do not know if we should continue to give subsidies to those with unworked land or who make enough money", the President said.

Romania Needs "Administrative Reorganization"

President Traian Băsescu stated that he hopes an administrative reorganization will be drawn up until 2012, because development cannot be stimulated with local decisions.

The Head of State mentioned that he will insist on this topic with the political parties.

"Decisions are taken locally and are hard to negotiate. One county wants a road from the South to the North, another from the East to the West, depending on where their mayors are located" Mr. Băsescu said.

The President pointed out that the current administrative organization is supported by the population.

The Head of State said the population needs to be explained the advantages of an administrative reorganization.

Referendum in Bucharest "Not Necessary"

The President also said that Bucharest does not need a referendum and that the Parliament decides if the districts will be dissolved.

The Head of State said that he has noticed the "fuss" about this reorganization.

"There is no need for a referendum. The Parliament has to decide if the districts will be dissolved".

The President mentioned that the population might not agree to the dissolution of the districts and might feel the need for a district mayor.

"But citizens have no idea what is behind a district mayor", he said.

Băsescu said that the city has seven budgets and seven councils and there are party representatives behind all of them.

"Politicians need to give up their interests. Since in Bucharest each important party has two mayors, it is impossible to reunite the city. The parties are in the web of the mayors and their councils", Băsescu added.

Translated by: Gabriela Lungu

MA Student, MTTLC, Bucharest University