The austerity measures implemented by the Government in 2010 contributed to the decline registered on the alcoholic beverage market, GARANT president Romulus Dascalu told a news conference Tuesday.

He said tens of thousands of small and medium firms in the sector reduced their work capacity in 2010 and 7,000 employees were made redundant.

According to Dascalu, the spirits market fell from an average 8.5 litters per capita in 2008 to 6 liters per capita in 2009 and 5 liters per capita in 2010.

Dascalu accused Romanian tax authority ANAF and the Department Investigating Organized Crime and Terrorism (DIICOT) of conniving at tax evasion in the spirits industry. Dascalu said organized crime prosecutors are investigating for years firms illegally operating on the spirits market but failed to conclude any of these investigations.

He said he notified the National Anticorruption Department and sued the Romanian state for supporting tax evasion.

Dascalu said there are firms operating in the spirits sector that cumulated debts of EUR250 million to the state budget and are not “disturbed” by authorities. He said the Financial Guard is turning a blind eye to the whole situation.