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Senate President Florin Citu considers that measures such as profit margin or price capping are reminiscent of the communist system, "trampling the economy", and says that it is no a surprise that such solutions come from the Social Democratic Party (PSD) which is the offspring of the former Romanian Communist Party (PCR).
"A better measure, without trampling the economy, is to reduce contributions and this would mean increasing the incomes of all Romanians and let them use this money as they want, consume it, invest it, etc. Such interventions that trample the economy remind me of the communist system, it comes as no surprise, as PSD is the successor of the PCR, so it's no surprise that such solutions hail from there," Citu said on Monday when asked to comment on PSD leader Marcel Ciolacu's statement regarding the capping of the profit margin.
Speaking of potentially capping fuel prices, the Senate President said that this would only lead to shortages.
"It's the only result price capping in a certain sector produces," Citu said.
In his opinion, cutting the VAT rate cannot be a solution for reducing inflation and interest rates, but rather keeping the deficit at 5.8 percent of GDP, and the central bank doing its job.
"We must be very careful when we talk about these measures, we have to take into account the entire budget of Romania and long-term implications. The solution to reducing inflation and interest rates is one: keeping the deficit at 5.8 percent of GDP and even better than that, and the central bank doing its job. That's where the solution lies, with the Finance Ministry and the National Bank. There are no magic formulas in the economy," Citu cautioned.AGERPRES
