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The 2018-2020 Ruling Programme: Population to pay 10 taxes, companies maximum 40, from 2019, VAT to drop
The number of taxes, rates and commissions with general application in Romania will be no higher than 50 as of January 2019, so that the population will only have to pay at least 10 taxes, while the companies will have to pay no more than 40 taxes, according to the 2018-2020 Ruling Programme.
"We shall simplify the red tape by massively cutting the number of taxes. Starting with 1 January 2019, the number of taxes, rates and commissions (generally applied in Romania) will never exceed 50. So, the population will only have to pay 10 general taxes at the most, of which CASS (health insurance contribution), CAS (pension contribution), income tax, land tax, real estate tax, vehicle tax, etc. All other taxes, rates and commissions will be eliminated or merged. The legal persons will have to pay no more than 40 taxes," says the release.
Also, as of 1 January 2019 the VAT share will drop to 18pct, from 19pct currently, and the 5pct VAT reduced share will be extended to the sale of dwellings with surface smaller than 120 sqm and for agriculture inputs.
Moreover, authorities promise that a legislative provision will be enforced through which there will be no tax that cannot be paid online and the number of forms asked by the Fiscal Authority will be cut so that the persons with independent activities will have to submit only one form, and the SMEs 5 forms per year.
The new variant of the ruling programme comes back with the idea of drafting an Economic Code that is to include the Tax Code, the Tax Procedure Code, the Law of Establishment of Commercial Companies, the Tax Evasion Law and all of the other economic laws that are to be debated this year in the Parliament.
The main macroeconomic indicators in the document show a budget deficit of under 3pct of the GDP, a public debt below 60pct of the GDP and an economic growth to go over 5.5pct.
Justice: Modernizing legislation to prevent abuse by judiciary
The modernization of legislation on the judiciary in order to prevent "authority overstepping or abuse by this power of the state", having the Cooperation and Verification Mechanism lifted during the current term of the European Commission, and improving prison conditions are some of the goals set forth in the 2018-2020 Governing Program rolled out by the PSD-ALDE ruling coalition.
"We intend to modernize legislation on the judiciary to bring it in line with that of other EU member states and prevent authority overstepping or abuse by this power of the state. The same principles will apply to the judiciary as those described for the business milieu, in that we will support the adoption of a 'fresh start' milestone before entering the centennial year. We will immediately enforce the decisions of the Constitutional Court of Romania that have not yet been implemented in the Romanian legislation and we will transpose the provisions of the European directives," reads the Governing Program.
The program also provides that a special department shall be set up at the Ministry of Justice, tasked with reducing the number of normative acts and correlating them with the European legislation, as well as assessing the legislation of Romania and setting it on a different foundation, beginning with impact studies, to citizens' knowledge of the law and law enforcement by the public authorities.
As far as human resources are concerned, the program provides for supplementing court staff and balancing, together with the Superior Council of the Magistracy, the schemes of judge panels to reach a ratio of 1.5 to 2 clerks / judge and do away with protracted trials where the solution is handed down in one year, and it takes another year to notify the judgment.
A dedicated chapter in the program refers to improving penitentiary conditions.
Health: 8 regional hospitals, 1 republican, ambulances in each commune, new Health law
The gov't is committed to backing several major investments such as the erection of 8 brand new regional hospitals and a republican hospital in Bucharest, the modernisation of most of the county hospitals and the ambulatories and emergency units, the endowment of each commune with ambulances and the adoption of a new Health Law until 31 December 2018 the latest, the 2018-2010 ruling programme informs in the chapter titled Policies in public health.
Besides all of the above, the ruling programme says the gov't wishes the minimum endowment of the general practitioners' offices and their inclusion in training programmes so that the phenomenon through which several patients are crowding in the emergency rooms of the medical units be eliminated.
As regards the health care infrastructure, the gov't programme foresees several measures, such as the construction with FSDI (Sovereign Development and Investment Fund) financing of the 8 regional hospitals due to be organised as emergency - excellence centers for all the medical specialisations, including the regional or national telemedicine centers, depending of the specialty, to which the medical centers could connect, for both diagnosis and for a second opinion, too, the cost of such a regional hospital being estimated at EUR 300 million.
These hospitals would count for 1,000 beds, 10 clinics, 1 research center, state-of-the-art equipment, housing for the medical staff, accommodation infrastructure for the patients' relatives and attendants (minimum 50-bed hotel).
The Bucharest-based republican hospital will be organised as an emergency-excellence and research centre on all specialities, it would cover over 2,500 beds, 30 clinics, 2-5 research centers, next-generation equipment. Adjacent to this hospital will be erected a medical campus that will include several facilities: school, kindergarten, shops for the medical staff, as well as accommodation facilities for the patients' attendants (minimum 2,000 bed-hotel), the estimated cost nearing EUR 1.1 billion.
As for rehabilitation, modernisation or extension, at least 15 county hospitals are targeted, not less than 150 specialty ambulatories and at least 25 Emergency Units.
Diaspora policies: Legislative updates for supporting Romanians' return home
The Executive intends to update legislation with regard to policies for the Diaspora in the governing programme, in order to support the process of Romanians' return from abroad and to assist the local public administration authorities in concluding town-twinning and cooperation agreements with local public administration authorities from other states so as to achieve and finance investment objectives.
The legislative updates feature the support of the Romanians' returning home process, through facilitating the levelling of the labour demand and supply, as well as through providing assistance and counseling in view of reintegration into the labour market and the development of entrepreneurial initiatives.
"Facilitating the process of recognition in Romania of the formal and informal qualifications obtained by Romanians who have worked/work abroad will also be followed," the document reads.
The document also shows that the Government will guarantee free speech, by all Romanians of political options.
As regards the bilateral relations with the neighbouring states and in the Balkans where Romanian natives live, the Government will follow the proper application of the European norms regarding the treatment of national minorities on a state's territory, as well as a balance between the rights ensured in this domain to national minorities by the Romanian state and those assured to the Romanian minority on the partner's state territory.
Education: Education Law amended by Jan. 1, 2019 at the latest
According to the Governing Program 2018 - 2020, the Education Law will be modified by January 1, 2019 at the latest.
"We consider education to be a strategic development factor. (...) Implementing the principle of equal opportunities in education, improving educational performance, the skills and competencies of all children and young people through access to a relevant, quality and inclusive education system are key to economic growth and prosperity," the document states.
"It is absolutely necessary to increase budget allocations so as to match the importance of education and scientific research for the development of modern Romania," the program specifies.
The measures listed in the Governing Program include parenting support to make sure the children have a good start in life, ensuring the children's integration in nurseries and access to pre-school education, and later on to quality education in adequately equipped schools. To this end, investments are pinpointed for the rehabilitation / upgrading of school buildings, but also a Guaranteed Social Package for Education.
Plans also provide for the construction of 2,500 nurseries, kindergartens and after-school units, as well as measures for training teaching staff.
Also envisaged is the expansion of entrepreneurial education to all schools in Romania, re-establishing / modernizing school workshops for vocational and technological education, and the setting in place of a National Directory of Entrepreneur Mentors and of the Student Entrepreneurial Society (SAS) in universities, concomitantly with a National Investment Fund for student-started businesses.
For research, the authorities envisage "predictable and substantial" financing.
Public administration: Continuation of decentralization project - priority
The continuation of the decentralization project but also legislative changes to the public administration represent a priority for the future Cabinet, according to PSD's governing programme for 2018-2020.
"The one that must take care of the needs of the citizen is the state, through all its administrative structures. It is the state that must create the conditions for ensuring citizens' needs by providing the basic infrastructure (water supply, schools, hospitals, roads, etc.) in all localities," the document reads.
For the period 2018-2020, the Government proposes the continuation of ensuring from the state budget / non-reimbursable funds of the sums for implementing the minimum public services package in each locality - healthcare (rural medical dispensary, medical center of permanence), education (schools, kindergartens, daycares), water supply, heating, electricity (public lighting), transport, roads (modernization / rehabilitation of communal and county roads, streets, pedestrian zones, bridges, passages, bicycle tracks), sanitation, culture centres), denominations (rehabilitation of worship places) sports (construction / modernization of sports facilities for mass and competitive sports), social homes, youth homes, company homes for specialists, buildings with seismic risk.