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Sven Joachim Irmer : Consolidated budget system used in Romania is outdated


The consolidated budget system present in Romania is outdated and a wrong fiscal policy not adapted to reality directly affects economy, said Sven Joachim Irmer, the director of Konrad Adenauer foundation for Romania and Moldova at a conference on fiscal matters.Irmer considers that a policy of high taxes applied by the state inevitably leads to discouraging investors and losing jobs.


“There should be a predictable tax system, which should be separated from social contributions. The consolidated budget system still functioning in Romania is outdated. Both budget financing systems are functioning in the same way in Germany and Romania and have in view to cover deficits using the money from one side to the other. As for the health system the state has reached a deadlock in Romania and there are no measures which could solve the situation,” said Irmer at the conference.


The foundation director considers that higher taxes will discourage investors and will have negative effects in economy.“Increasing fiscal tasks by higher taxes will not make Romanian economy more attractive. I found out there are 113 taxes and contributions a company has to pay in Romania. This situation cannot lead to higher transparency of the collection system. When the state lacks money there are visible consequences. It cannot build roads and highways and cannot allocate funds necessary for health and education,” Irmer pointed out.


The German foundation promotes the concept of social market economy introduced in Germany by late Christian- Democratic politician Konrad Adenauer who in 1946 led the reconstruction of German Christian Democracy and in 1040 was elected chancellor of the Federal Republic of Germany, the first after WW II.