Romania’s GDP Dragged Down By Government Decisions – Economists
Romania’s gross domestic product was down 1%, in real terms, compared with the first quarter according to seasonally adjusted data. It was the biggest quarterly contraction in the European Union.
Economists say that the Romanian economy is in recession after a second consecutive quarter of decline, due to the decisions made by the government.
The president of the Fiscal Council, Ionut Dumitru, said that the private investments were negatively impacted by the tax on special constructions, the excise tax on fuels, as well as the potential social security tax cut without mentioning the offset source, as investors expect tax increases. (Romania Libera)
People’s Movement Party To Decide On Cristian Diaconescu’s Candidacy For President
The leadership of People’s Movement Party (PMP) will decide Tuesday whether Cristian Diaconescu will be maintained as candidate for President, or he will be replaced by Elena Udrea, who is willing to run for the position.
PMP secretary general Cristian Petrescu stated Saturday that PMP members will met Tuesday to vote the candidate for President: Cristian Diaconescu or Elena Udrea. (Adevarul)
State Employees’ Salaries Up Above Average Wage In Last 4 Years
The salaries of state employees rose in the last four years above the average wage, while in certain sectors, the salary increase exceeded 40%. The recovery of the 25% salary cut for state employees, generously provided by the government, might widen the budget deficit.
In 2010, the government led by Emil Boc took the harshest measure against the financial crisis since 2008: the 25% cut in state employees’ salaries. At that time, the decision was harshly criticized by the public opinion and the opposition. (Evenimentul Zilei)
Calin Popescu Tariceanu Says Law On CAS Cut Might Be Readopted
Senate speaker Calin Popescu Tariceanu stated that the law on social security tax (CAS) cut by 5 percentage points might be readopted by the Parliament without amendments.
According to Tariceanu, the CAS cut is supported by the majority of MPs, namely the MPs in the Social Democratic Party (PSD) and those in the Christian Liberal Alliance (ACL).
President Traian Basescu sent back to the parliament the law on social security tax cut, asking for a clarification of the means to offset the resulting budgetary impact. (Romania Libera)
European Funds Ministry Gets 436 Funding Requests
The European Funds Ministry, via the Management Authority for the Sectoral Operational Programme Human Resources Development, received 436 funding requests, with a total value of the requested non-refundable financial aid of over RON2.3 billion, within ‘Social economy development” project.
The project proposals for social economy were filed between July 28 and August 11, while the funds assigned for the project exceed RON877.6 million (or EUR200 million). (Curierul National)