Ponta Says Won’t Resign As Long As VAT Is Cut To Maximum 20%
Prime Minister Victor Ponta said he will not resign as long as the VAT rate is lowered to 20% at most.
However, opposition liberals and coalition members could agree to cut the rate from 24% to 21%, thus twisting Ponta’s arm and meeting President Iohannis’ requirement to cover the budget gap.
Ponta addressed rumors of an impending resignation saying he does not plan to leave the Cabinet and December 2016, when his term as prime minister ends officially, is not so far away. (Adevarul)
Basescu Pleads For Romania-Moldova Unification
Former president Traian Basescu called for the unification of Romania with the Republic of Moldova, saying Romania needs Moldova.
“The bigger a country is the more important and relevant it becomes,” said Basescu, just one day after Moldovan prime minister Valeriu Strelet said a unification is impossible because it would entail unacceptable costs for Romanian citizens. (Romania Libera)
Consumer Prices Extend Decline In July; Annual Inflation At -1.7%
Romanian consumer prices extended their decline in July, after a major cut in the month before provoked by the reduction of the value added tax rate for food products.
Consumer prices were down 0.17% against June, while the annual inflation rate was at minus 1.7% in July, according to data released by the country’s statistics institute INS Tuesday. In June, the annual inflation turned negative for the first time in more than 25 years as Romania cut the VAT rate for food products to 9% from 24%.
Food prices went further down in July, when they were down 1.2% against the previous month. Prices of non-food items and of services were up 0.5% and 0.1%, respectively, compared with June.
Romania’s central bank cut down its inflation forecast for the end of 2015 to minus 0.3%, as it predicts the annual inflation rate will stay in negative territory over the next three quarters. The bank expects the inflation will return to positive territory by the end of next year, when the annual rate is seen at 0.7%. (Adevarul)
Wages In Romania Seen Rising By RON94 On Average In 2016
Romanians’ net monthly salaries will grow by RON94 on average (EUR20) in 2016, based on data released by the National Prognosis Commission.
The biggest raise will be registered in capital Bucharest, followed by Cluj and not Ilfov county, as previously, meaning employees in Cluj are becoming more productive than corporate employees near Bucharest.
Newspaper Puterea draw up a wage ranking for 2016, topped by Bucharest with RON2,747(EUR617), followed by employees in Ilfov with an average RON2,320 a month, Timis (RON2,064) and Cluj (RON2,036).
The national average is estimated at RON1,642.5 next year. (Puterea)
Medical Services To Require Health Card As Of September 1
Services in the public healthcare system will be provided solely on the basis of the national health card starting September 1, the national health insurance house announced.
The health card was introduced in May and the system ran in parallel with the previous system for the provision of medical services in the public system. (Romania Libera)