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Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at iulian@romania-insider.com. 

 

Coalitia pentru Dezvoltarea Romaniei argues for capping social security contributions

Coalitia pentru Dezvoltarea Romaniei (CDR), a private, non-political initiative gathering the most representative organizations for the business environment in Romania, was at the origin of the controversial idea floated by dismissed finance minister Dan Valceanu of capping the social security contributions - specifically the 10% contributions to the public health system.

Capping the contributions would encourage employers to pay higher wages and spur the development of the middle class. The high wages are already paid in such a way to optimize the tax and contribution payments, experts quoted by Profit.ro claim.

Speaking of the labour taxation and the social security contributions in Romania, and how they compare to other models in Europe, it is relevant to note that (i) the very low level of wages in Romania and (ii) income taxation, public health systems and pension systems vary a lot across European countries, therefore, concluding “high labour cost” is not straightforward.

As a general rule, the taxation (particularly effective) in Romania must be low, judging from the budget revenues to GDP ratio and the public expenditures for public services (education, health) as a % of GDP.

Separately, tackling specific issues (such as capping health system contributions) and not the whole taxation system (including, for instance, property and wealth taxation) would lead to biased results. 

iulian@romania-insider.com

(Photo source: Shutterstock)

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Profile picture for user iuliane
Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at iulian@romania-insider.com. 

 

Coalitia pentru Dezvoltarea Romaniei argues for capping social security contributions

Coalitia pentru Dezvoltarea Romaniei (CDR), a private, non-political initiative gathering the most representative organizations for the business environment in Romania, was at the origin of the controversial idea floated by dismissed finance minister Dan Valceanu of capping the social security contributions - specifically the 10% contributions to the public health system.

Capping the contributions would encourage employers to pay higher wages and spur the development of the middle class. The high wages are already paid in such a way to optimize the tax and contribution payments, experts quoted by Profit.ro claim.

Speaking of the labour taxation and the social security contributions in Romania, and how they compare to other models in Europe, it is relevant to note that (i) the very low level of wages in Romania and (ii) income taxation, public health systems and pension systems vary a lot across European countries, therefore, concluding “high labour cost” is not straightforward.

As a general rule, the taxation (particularly effective) in Romania must be low, judging from the budget revenues to GDP ratio and the public expenditures for public services (education, health) as a % of GDP.

Separately, tackling specific issues (such as capping health system contributions) and not the whole taxation system (including, for instance, property and wealth taxation) would lead to biased results. 

iulian@romania-insider.com

(Photo source: Shutterstock)

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