President: Government’s Planned Fiscal Measures Will Throw The Economy Into Chaos

Romanian President Klaus Iohannis said on Wednesday that the new fiscal measures announced by the Government will have serious negative effects on the economy and was not discussed with anyone from the economic or institutional field.

The head of state also reminded that Prime Minister Viorica Dancila promised that her cabinet will not introduce new taxes in her inauguration speech, while the finance minister announced several new taxes in Tuesday’s announcement.

“We all probably heard, mostly with surprise, that the Government is preparing an emergency decree to add new taxes and levies. This reminds of a statement made by the prime minister in her inauguration speech, that we will not bring new taxes and levies. And now we see that they are passed. This decree was not discussed with partner from the economic or institutional field. This project has no analysis. It will throw the economy into chaos,” said Iohannis.

“These measures will mess with the entire economy and with the budgets of all Romanians. I make an appeal to the Government to change its mind, to discuss it, analyze it with syndicates and owner’s unions,” he added.

Romanian Finance Minister Eugen Teodorovici announced on Tuesday a package of new fiscal measures, including a tax on banking assets scaling with the ROBOR rate, capping natural gas prices for the next three years and a new tax for electricity and thermic energy operators.

After the announcement, the main index of the Bucharest Stock Exchange lost 8.6% by midday Wednesday, in just two hours of trading, losing the entire year’s growth over concerns with the impact of the measures.

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