Romania’s Fiscal Council does not agree with the proposal to change the Fiscal Code.

The consultative body has warned that the tax cuts would lead to major deviations from the medium-term budgetary targets, with actual deficits above 3% by 2019.The structural deficit will then reach the 2010 level.

The new Fiscal Code would lead to an actual deficit of 2.7% of the GDP in 2017, 3.5% in 2018 and 3.7% in 2019.

The organization estimates the fiscal measures would trigger a deficit increase of EUR 3.3 billion in 2016, EUR 2.9 billion in 2017, EUR 5.1 billion in 2018 and EUR 6.3 billion in 2019.

editor@romania-insider.com