In fact, he ended up in the government in the autumn of last year, also in the wake of a reshuffling, when he replaced Sebastian Vladescu, who was part of the Boc cabinet for less than nine months.
In the first few months after taking over, Ialomitianu stood out through his self-imposed inconspicuousness. This year he tried to increase the number of public appearances, organizing a few press conferences at the Finance Ministry, apart from occasional appearances at Government press briefings.
The minister has not offered spectacular ideas on changes to taxation, has not voiced opinions on major topics and has not been involved in confrontations with banks or other categories of taxpayers.
Recently, a prospective government reshuffling has returned to the agenda and Ialomitianu is on the list again. But the minister seemed even back in spring to have gotten used to the idea of a prospective reshuffling, saying he has been left with a “very good impression,” that he “achieved important things” in the Finance ministry team and that he is prepared to go back to Parliament, where he came from.
The problem-free closure of the preceding agreement with the IMF and the signing of a new precautionary agreement took place during Ialomitianu’s term. The finance ministry met its commitments: the adoption of the budget law for 2011, the unitary pay law and the pension law, so the agreement sealed with the IMF in 2009 has been completed successfully.
The budget deficit targets agreed with the Fund were met, but sometimes the results were achieved by sacrificing investments and by putting off payments to the private sector.
The state’s arrears continue to be an unresolved problem. Eight months into 2010, the budget deficit amounted to 2.4% of GDP, which leaves sufficient room for the full-year deficit target to be achieved. In fact, the fiscal consolidation of the last year is considered a great Romanian success by local and foreign analysts, bankers and investors.
Stability and predictability of the fiscal policy have remained a sensitive issue.
One single statement for social security contributions and for the income tax and its submission online is the most important taxpayers-related measure that the Finance Ministry has taken during Ialomitianu’s term. The reorganization of the Fiscal Authorities has also been pursued, both through layoffs and by scrapping territorial fiscal agencies.
The three-year EUR7 billion external funding program was also launched during his term.
The finance minister’s priority over the coming period is the construction of the 2012 budget, with the deficit set to be no more than 3% of the GDP.
(English version by Daniela Stoican)