Romanian president delays law on social security cut

Romanian president Traian Basescu does not want to issue the law on dropping the social security contribution by 5 percentage points before having a serious discussion with the Government about the resources which will support this cut. The president says the measure endangers the agreement with the International Monetary Fund and the country’s budget and fiscal stability. The drop in CA was a sore point in the discussions between authorities and IMF representatives back in June. International institutions failed to obtain the drop, and pushed the evaluation of the cautionary loan to November. However, Romania said it will not need a new agreement with the IMF once the ongoing one ends in 2015. Fiscal Council: Drop in social security, possible if income taxation on different revenues eliminated editor@romania-insider.com