The Government postpones the steps for stimulating production

The new government has celebrated the end of 2008 with Emergency Ordnances, with one of the steps consisting in the increase of the social security contributions under normal work conditions to 28%, starting 2009, compared to the value of 27,5% set by the former government. It has thus eliminated the steps for stimulating production and labor promised in the electoral campaign by the Tăriceanu government, such as limiting the social security contributions to 27,5% starting in January, offering 1.000 Euros to companies hiring unemployed people, and granting a 5% discount to tax payers.

Liviu Voinea, the chairman of the Applied Economics Group (GEA), estimate that the Government doesn"t have any money, and is waiting for the completion of the budget for 2009, before making such decisions. All the Government can do in the short term is to restructure expenses, Mr. Voinea further added.

Cristian Pârvan, Secretary General of the Association of Romanian Businessmen (AOAR), claims that the greatest problem faced by the Romanian economy is represented by the uncertainty of state budget revenues, as the industry is slowing down, as a result of an increase in production in the metallurgic, auto and fertilizer industry etc. These revenues depend on the Government stimulating production, Mr. Pârvan further added. At the end of last year, the prime Minister Emil Boc announced that the state budget revenues had shrunk by 10% monthly, starting in October.

These signals indicate the fact that the Government does not want to encourage labor, stated Cristian Pârvan. "We will ask for the implementation of new steps, which we have discussed anyway during the electoral campaign with the political parties involved in the government", stated the Secretary General of AOAR. The discussions revolved around the infrastructure and construction works, which, if their potential were exploited, could be this year as well one of the main economic growth factors, steps for the thermal insulation of homes, and assignment of works, etc, and the conclusions of these discussions and of the calculations made by the experts of the current Government were that the suggested steps must be implemented, and the capacity for their implementation exists. "Countries like Germany, which are on their third legislative stimulus package, or France, and Spain, have already taken serious measures to this end, and we hope that after the holidays, the Government will take these steps as well", Mr. Pârvan stated.