Government report

Prime Minister Dacian Ciolos presented to Parliament Romanias economic situation.

Roxana Vasile, 20.09.2016, 14:19

Romanias economic growth rate estimated for this year is 4.8%, as against the initial 4.2% forecast. The announcement was made by Prime Minister Dacian Ciolos who on Monday presented to Parliament this countrys economic situation. According to the Prime Minister, throughout its short term in office, the technocratic government has tried to ensure a predictable economic environment, favouring investment, as well as an efficient and transparent management of public money. Prime Minister Ciolos said that the economic growth rate of 5.2% of the GDP in the first half of the year reflected in a larger number of jobs, a lower unemployment rate and higher wages.

Prime Minister Dacian Ciolos: “ We dont intend to increase any taxes or fees by the end of our term in office. We dont intend to change any benefits or allowances, as the word was spread. On the contrary, this year, we have cut the VAT down to 9% for farm works and inputs in agriculture and to support the agricultural sector, small producers in particular, we intend to simplify the Fiscal Code, proposing a special VAT for small farmers.

Dacian Ciolos announced that a state aid plan supporting small and medium-sized businesses would be implemented by the end of the year. The government is also preparing the reform of the system of social welfare and tax facilities for those investing in professional training.

The Prime Ministers speech in Parliament requested by the Social Democratic Partys leader, Liviu Dragnea, was not to the liking of that party, apparently uncomforted about the loss of power less than a year ago with the resignation of former prime minister, Victor Ponta. That is why, Liviu Dragnea criticized the governments performance, accusing Prime Minister Ciolos that he had not spoken Romanian, but the “technocrats language, which sounds strange and getting away from reality.

Liviu Dragnea: “You used the word growth, instead of the word failure and Romanians are increasingly perceiving the failure of this government.

Prime Minister Dacian Ciolos retorted promptly: “I do not speak, nor do I want to learn the Romanian language of demagogy and populism. Dacian Ciolos went on to say:

Dacian Ciolos: “You said that this economic growth did not reflect in the peoples living standard. It may not reflect in peoples living standard yet. The thing is that this years growth has not reflected in the living standard of the political cronies either and that is probably a bigger problem.

Moreover, Prime Minister Dacian Ciolos said that addressing Parliament he had not aimed to win over votes. In the run up to the parliamentary elections due in December, political struggle is intensifying and every party is taking any opportunity of winning over voters. For the parliamentary parties, the Prime Ministers speech seems to have been such an opportunity.