According to the head of state, under the law, no budget spending can be approved unless the source of finance is stated.
Romanians younger than 35 will be eligible for up to EUR10,000 as non-refundable financing to start their own micro-company, as long as they hire at least two employees and reinvest 50% of their profit every year, as per the emergency ordinance.
Young entrepreneurs will receive up to 50% of the value of their planned business, but no more than EUR10,000, plus counseling and support, from the Agency for the Implementation of Projects and Programs for Small and Medium Enterprises (AIPPIMM).
The business will be exempt from paying social security contributions for the monthly average gross income gained by four employees hired for an indefinite period.
The president argues the bill replaces “monthly average gross income” with “monthly gross income” without specifying the financing source to cover expenses. According to Basescu, this amendment will impact the social security budget.
The head of state asked the Parliament to approve the decree in the format drawn up by its sponsor.