Prime Minister Ily Bolozan’s coalition government secured a vote of confidence in the Romanian parliament following a motion of censure submitted by the opposition, which allows it to promote tax increases needed to reduce the larger fiscal deficit in the European Union.
The only three -week government has brought to the House with a fast track process to increase VAT, special tax and other contributions, in an effort to prevent the country’s creditworthiness downgrading – which would mean the loss of investment level – and unblock access to community.
Addressing opposition MPs, Prime Minister Bolozan asked: “I understand that you do not agree with the measures proposed by the government … So what are the solutions? On the one hand, we are told that the problems in the economy are serious. On the other hand, not to take these measures. Both cannot happen. “
The opposition has announced an appeal to the country’s constitutional court.
The coalition of four pro -European parties took power in late June, ending the long -term political impasse after the cancellation of the December presidential election and their repetition in May.
Although all four government partners approved tax increases, the Social Democratic Party (PSD) – the strongest of the four partners – has expressed critical comments today. “For a steady, ongoing political support, we must quickly correct some absurdities in this first package of measures,” said PSD chief Sorin Green.
The Social Democrats had been in favor of replacing the single income tax rate with progressive taxation instead of increasing VAT, but other members of the government coalition disagreed.
Bolozan had stressed a few days ago that the coalition government would do everything possible to reduce the fiscal deficit to 8% of GDP by the end of the year – from 9.3% last year – and close to 6% in 2026.
Source :Skai
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