The Social Democratic Party (PSD) representatives announced on Friday that they are pressing for the implementation of the programme they proposed to stimulate economic activity and reiterated "categorically" that they will not support any other government package that does not include these proposals.
"At the same time, the PSD is prepared to provide Coalition partners with additional details to fully understand the positive effects such a programme can generate. The PSD programme offers economic stimulus solutions, with zero expenditure from the Government and a positive impact on the state budget. The main mechanism proposed in the PSD Programme is a tax credit, whereby new investments in strategic industries can benefit from tax deductions for a set period if they meet certain criteria regarding amounts invested and new jobs created. The PSD Programme also proposes other incentives to stimulate new investments, such as guarantees for SMEs, accelerated depreciation, or additional deductions for research and development investments," the PSD press release sent to AGERPRES stated.
According to the source, granting the tax credit and other incentives for new investments represents a positive approach to reducing the budget deficit through additional revenues collected from VAT on new industrial products, taxes and levies on wages paid to new employees, as well as the multiplier effect generated by the new businesses.
"The solutions proposed in the PSD Programme have been successfully applied in many European countries and provide an alternative to austerity policies implemented in Romania in recent months. Unlike those, PSD measures focus on increasing budget revenues by encouraging economic activity and fostering a positive partnership between the Government and the business environment," the release further mentions.
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