Links Sitemap Business Linker Sitemap

International lenders urge fiscal restraint amid election noise

2738 afisari
Cristian Cojanu
With the stir of the European Parliament elections subsiding fast, the Government has embarked on new efforts to get the country geared up for a new set of elections: the all-important November presidential ballot. One of the measures announced by the Cabinet stipulates a five per cent cut in the social contributions paid by employers, despite objections by international lenders, who argue that fiscal rigor is critical. Under the new bill, which requires the Parliament's approval, the cut would be applied from October 1, while its estimated budget impact will stand at some 4.8 billion lei (1.5 billion USD) in 2015, according to the Finance Ministry.

In this context, the IMF and EC teams that visited Romania in early June acknowledged the economic progress, but also mentioned certain “outstanding issues”, as they postponed the completion of the review of Romania’s support package. “The economy has continued to recover and is now expected to grow by 2.8 per cent this year. Fiscal imbalances have been reduced and the current account deficit has remained low. Looking forward, the teams have had constructive discussions with the Romanian authorities on how to ensure further progress and have reached agreement on important policies in this regard. However, some issues remain outstanding. The discussions with the Romanian authorities will continue from respective headquarters,” the IMF said in a statement at the end of the IMF and EC staff visit.

To read the full version, see the print edition of Business Arena.

S-ar putea să îți placă:


COMENTARII:
Fii tu primul care comenteaza