Romanian Liberals float the idea of capping social security contributions
Acting finance minister Dan Valceanu prompted public debates when coming up on October 10 with the idea of capping the contributions to the public health system. He said "it is unfair for those to earn more, therefore, pay more - but get the same services," daily Adevarul reported.
Prime minister Florin Citu admitted that the Liberal Party (PNL) that he leads is envisaging capping the social security contributions (health, pension) indeed - but by 2024.
"We want the cost of these contributions paid by the people to be lower," acting PM Citu said, quoted by News.ro.
Such policies, envisaged by PNL under the circumstances of progressive taxation in European countries, are quite surprising.
Romania's budget revenues account for under 30% of GDP while the core European countries boast ratios of over 40% - precisely thanks to progressive contributions.
Furthermore, Valceanu's idea backed by Florin Citu marks a radical change in the party's rhetoric - the Liberal Government so far prepared a strategy to waive the social security contributions for those earning the minimum wage.
Commenting on this topic, former minister of economy Claudiu Nasui - a member of USR, which was invited to form the new Government - argued against minister Valceanu.
"It's an interesting idea, but totally wrong," Nasui explained, quoted by Adevarul, adding that it would not improve the situation of the low-income earners.