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Citu: When you cap prices, there is a risk of shortages

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Florin Citu

The President of the Senate, Florin Citu considers that a possible capping of food prices involves the risk of shortages and queues, Agerpres reports.

"I want to see how the proposal [to cap food prices] is justified. It will come in the coalition and there we will make a decision. So far I have not seen this proposal, but I express a point of view of a liberal and a economist: when you cap prices, there is a risk of a shortage and we will see queues," Citu said in the Senate on Tuesday.

Asked if a zero reduction in VAT could be taken into account, Citu replied: "We as liberals will always support a lean state, with the lowest possible taxes. We have one principle from which we would not want to abdicate. That is to cut taxes for all products. So, if we find that it is appropriate for one product, why would not it be appropriate for all products, not just one and of course a reduction in taxation."

The Speaker of the Chamber of Deputies, Marcel Ciolacu considers that capping the price of basic foodstuffs would be a solution for Romania, this measure being applied by other European countries as well. Asked if he would opt for zero VAT on food, Ciolacu said he would discuss it, adding that the solution would not help much.

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