Romanian President: "I will not sign social security tax cut if I’m not convinced it’s sustainable"

Romanian President Traian Basescu has recently said that he will not promulgate the law to reduce the social security tax CAS until he is convinced that the measure is economically sustainable. He added that he is waiting for the evaluation from the government, to make sure this cut will not be compensated by introducing new taxes. “This point of view: Yes, I agree with reducing the CAS, but we want to know the conditions under which is done, is not only mine, but also the business community and the IMF’s point of view. The International Monetary Fund also supports the CAS cut, as a reduction of the tax burden, but they want to know how this deficit widening will be compensated, and if it is good for the Romanian economy or not,” said the President, reports local Mediafax. Traian Basescu recently previously said this measure endangers the country’s budget and fiscal stability. Romanian president delays law on social security cut. Irina Popescu, irina.popescu@romania-insider.com