PM Ciolacu considers that fiscal-budgetary measures won't lead to price increases

PM Ciolacu considers that fiscal-budgetary measures won't lead to price increases

Prime Minister Marcel Ciolacu declared himself convinced that the fiscal-budgetary measures for which the Government wants to assume responsibility will not lead to price increases, in the context in which there will be no interest rate increases, told Agerpres.

"Let's not think that the European Investment Bank will increase the reference interest because we put 1% in the banking system. As far as I know, the minister of finance had a discussion with all the representatives of the banking system and they agreed on some very concrete things - it won't lead to interest rate hikes. Interest rate hikes usually follow inflation. That is, you have to raise the benchmark interest rate to be in surplus. Which the United States of America did most bravely and you have seen that inflation has now reached 3%. The European Bank made this increase more gradual, just like the BNR," said Ciolacu during a press conference.

He added that, if there is an "unjustified increase", new products could be included in the ordinance that provides for the limitation of commercial additions.

"I want to remind you that the 9% VAT remained on both medicines and food products. I think that the products have increased enough. If we try to force an unjustified increase, there is no problem, we increase the number of products in the ordinance, but I don't think that's the case," said Ciolacu.

The prime minister emphasized that it is "normal" to increase the VAT for foods with added sugar and that this falls within the European "logic."

"It is not encouraged anywhere in Europe to give sugary products to children. Look at the statistics and you will see that nowhere, especially in Romania, this should not be encouraged," said Ciolacu.

The prime minister highlighted the large number of tax exemptions and said that "no normal country" can continue like this.

"There are 500 changes to the Fiscal Code through 100 laws and emergency ordinances. No normal country can continue like this. (...) We have the lowest incomes in terms of GDP construction in the European Union. We have tens and hundreds of tax facilities, but we have in the mirror, instead of having reduced tax evasion, you have, in fact, the lowest incomes and the greatest evasion," stated Ciolacu.

As to the conditions imposed by the European Commission for special pensions, the prime minister stated that they are "common sense."