PSD's Ciolacu: Increased prices for electricity caused inflation; combating inflation, a priority

Increases in the electricity and natural gas prices are the cause of the current inflation, which is why fighting inflation is a priority, PSD (Social Democratic Party) leader Marcel Ciolacu said on Sunday, Agerpres reports.

"Inflation always affects purchasing power and the standard of living. (...) Obviously, these rises in the prices for electricity and natural gas, which already had several effects, are causing the inflation. The increases in prices and inflation are among electricity and natural gas price hikes. We have an emergency ordinance right now targeting the SMEs, the food sector and the domestic consumer, for two months, and during these two months we will see what proposals come from the relevant ministry and the government for the next period," Ciolacu told Digi 24 private television broadcaster.

According to him, the reduction of VAT leads to lower inflation, but this must come with other measures.

"Cutting down VAT would lead to a lower inflation, but this shouldn't be the only measure. (...) We've worked on a package together with the minister of finance and energy experts to see how we can solve this, how we can deal with the cause, with these increases in the price for energy, including through the taxation of exceptional incomes, given that neither the production of energy nor that of the natural gas got more expensive. (...) So combating inflation is a priority," showed the Social Democrat leader.

He said that this year he wouldn't recommend modifications being brought to the Fiscal Code.

"What can I tell you for sure: no new taxes will appear this year," Ciolacu said.

Asked if he believed it was normal to give up the single quota, the PSD representative answered yes, also saying that there are 24 states in the EU that have given up the single quota.

The PNL (National Liberal Party) leader, Florin Citu, on Sunday wrote on Instagram that reducing the CAS (social insurance contribution) from 25 to 20pct would be a solution to increase the salary for all Romanians, with the resulted increase to account for approximately 317 lei.

The Liberal leader added that the cut of contributions would bring more money into the pockets of Romanians, and the reduction of VAT would moderate inflation.