Press Review - October 14, 2015

10.14.2015 By Gabriela Stan

Romania Must Break The Cycle Of Political Influence In Economic Decision Making - US Ambassador To Bucharest

US Ambassador to Bucharest, Hans Klemm, called on Romanian leaders to put aside short-sighted political concerns and stop meddling in the management of state-owned companies for benefits.

“Romania must break the cycle of political influence in economic decision making.  2016 is a double election year and it offers the opportunity of being a watershed for Romania.

I call on Romania’s leaders to set an example for the future – put aside short-sighted political concerns and focus on the long term good of the country when enacting new or revisiting existing legislation or regulations; stop meddling in the management of state-owned enterprises for political gain and allow these enterprises to operate according to good business practices, so that all Romanians reap the benefits; and robustly and publically defend those prosecutors pursuing corrupt actors, and vocally support an independent judiciary,” Klemm said in a statement Tuesday. (Evenimentul Zilei)

 

Romania May Lower VAT On Water To 9% To Support Agriculture - Minister

The Romanian Government is likely to lower the value added tax on water as well, from the current 24% to 9%, in a bid to support the country’s agriculture, mainly the irrigation sector, Finance Minister Eugen Teodorovici said Tuesday.

Speaking at the conference “MEDIAFAX Talks about Retail”, Teodorovici said that reducing the VAT rate on water to 9% would be a huge support for the agriculture, corroborated with the irrigation system, and would be a huge impulse as well.

The minister also said, in the context of Romania lowering the VAT rate to 9% on food items and non-alcoholic beverages as of June 1, 2015, that the impact of the measure on the country’s budget, of RON2.8 billion, which was initially calculated by the Finance Ministry for a six-month period, has already been absorbed, considering that revenue collections to the state budget reached 100.9% in the first nine months. (Puterea)

 

IMF Delegation, Romanian Officials To Discuss 2016 Budget, Royalties Law

An International Monetary Fund (IMF) delegation came to Romania for talks related to the 2016 budget, the new royalties law and the budget revision draft law, although Romania no longer has a formal agreement with the institution.

 “Today (Tuesday e.n.) the IMF mission will starts talks. We’ll discuss issues that we all know, mainly the 2016 budget, what’s left to be implemented in the  structural reforms, the royalties law,” Finance Minister Eugen Teodorovici stated.

Romania's precautionary IMF agreement expired on September 26. Nevertheless, Romanian officials support the idea of a new agreement with the IMF. (Adevarul)

 

PSD Rejects Victor Ponta’s Proposal To Replace Executive President Position

PSD president Liviu Dragnea managed to maintain the position of executive president of the party, “dedicated” to Valeriu Zgonea, despite Victor Ponta’s proposal to replace it with four positions of prime vice-presidents.

Social-democrats rejected, with majority of votes, the proposal of Prime Minister Victor Ponta to replace the position of executive president with four positions of prime vice-presidents.

Ponta explained that the position of executive president was useful when the president of the party was also Prime Minister and could not focus entirely on the activity of the party. (Adevarul)

 

Senate Rejects Draft Law On Setting Up National Agency For Management Of Seized Assets

The draft law on setting up, organization and function of the National Agency for the Management of Seized Assets was rejected Tuesday by the Romanian Senate.

PNL senator Dumitru Oprea said that liberals rejected the bill as their amendments were ignored.

“The discontentment of the senators of the coalition formed of PSD, UNPR and ALDE came to light when several draft laws on the daily agenda of the Senate session could not be adopted,” said Ioan Popa, leader of PNL group in the Senate.

Popa said that, in the liberals’ opinion, the rejection of the draft law on setting up the Agency for the Management of Seized Assets is an evidence of “the lack of confidence of the MPs in their own government” and of the fact that Victor Ponta and his team lost their support. (Puterea)