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Daianu: 2020 is a key moment; I wish minister Florin Citu could adopt the right measure
2020 is a key moment, stated the chairman of the Fiscal Council, Daniel Daianu with reference to the increase of the pension point included for this year, he said, in context, that he wished minister of finances Florin Citu could adopt the right measure.
Daniel Daianu said that he could not speak about the budget for 2020 without discussing the budget in 2021 taking into consideration the connection between the two. The growth of 2020 of the pension point has an impact three times bigger than in 2021. The recalculation has big impact in 2022, of 1% of GDP.
He explained that the growth by 40% of the increase for a period of 4 years would take the deficit to 4-4.1 % in 2020 and 4.2% in 2021.
‘With other measures we could get closer to the target of 3.6% in 2020. The recalculation of 2022 could add 1% of GDP, thus other measures are necessary’ stated Daniel Daianu.
The CF chairman said that without the growth of the pension point in 2020 the deficit would be 3.8 – 3.9% of GDP. Pensions would grow by 8% annual average in 2020 due to the increase by 15% in September 2019.
Daniel Daianu said that a growth of the fiscal income is absolutely necessary and new reductions of taxes and interests would be ‘stupid’.
‘And now there are initiatives. And clawback tax, we should reduce it.. stop it, what does the pharma industry want? We deal with the public finances of Romania not what the pharma industry wants and I am glad that Bogdan Chiritoiu ( the chairman of the Competition Council,o.n) said publicly and he should say that. There is pressure on the part of the business environment and even blackmail. Are we really afraid? The economic policy is made for Romania, nor for a company or another. If it is a multinational, or a local company it does not matter. Without a healthy business environment the economy does not function. Without transparency, without larger fiscal income, it is not allright. The thesis that fiscal income cannot be increased is incorrect. Bulgaria and Poland could do it. But what, Romania is cursed ? ‘ Daniel Daianu said.
He also drew the attention that a new crisis should not be considered only from the perspective of budgetary consolidation.
‘I think that if we pass through a crisis we will face an accelerated outflow of people and this should worry the politicians. Young people have no patience. Old people have not patience as they say that we want to live better. Young people say’ I want to live better and I am not obliged to live in Ceausescu’ s Romania. I can go and live in another member state’ . So, you see how many implications there are, not only budgetary consolidation. The consequences may be dramatic’ Daniel Daianu said.