The only measure to increase the net income of all employees, at no cost to companies, is to reduce the social security contributions, Liberal president Florin Citu (PNL) said.

"(...) a decrease in the contribution means an increase in the net salary today. An increase in the gross salary means an increase in the future pension of today's employees. Unfortunately for the health of our economy, the populists have somewhat influenced decisions in the last three months, and it is clear in the state of the economy. [This was] despite my opposition and that of many colleagues in the PNL," he said, quoted by News.ro.

It is somehow ironic to see the Liberal Party, typically concerned with the general government deficit, arguing for cutting the social security contributions against the Social Democrats.

The trade unions warned that by cutting the social security contributions, the Government would only manage to help companies pay a lower labour price, at the cost of increasing the budget deficit and decreasing employees' pensions in the future. 

(Photo: Gov.ro)

andrei@romania-insider.com