Fiscal Council: Romanian authorities need to reconsider position on Fiscal Code

Romanian authorities need to reconsider their stance on the Fiscal Code and continue the agreement with the international financial institutions, especially given the situation in Greece, said Ionut Dumitru, president of the Fiscal Council. Romania would risk too much, if it continued with this tax package, he added, cited by local Agerpres. The new Fiscal Code, which was voted by the Chamber of Deputies last month, cuts the VAT rate from 24% to 19% among other measures. A budget slippage of over 2% of the GDP compared to the assumed target, which would result if Romania applied the new Fiscal Code, is inappropriate, given the international context. Dumitru warned that such measures could intensify in 2016, which is an election year. “We already hear talks about salaries in the public sector, a new salary scheme, which has a massive impact on expenses,” Dumitru said. editor@romania-insider.com