Dispute in the governing coalition on fiscal measures

PSD leader Marcel Ciolacu proposed that the government intervene to cap fuel prices. He also insisted on the urgency of amending the Fiscal Code, despite strong opposition on Friday by Liberal Prime Minister Nicolae Ciuca himself.

Marcel Ciolacu was upset on Monday and said that he was fed up with all sorts of insignificant people appearing in any discussion within the coalition, challenging the PSD's economic measures.

Amendments to the Fiscal Code continue to shake the waters in the governing coalition. The Social Democrat leader, Marcel Ciolacu, declares that he wants a responsible coalition, a fair business environment and protection for those with low and medium incomes.

"Romania can no longer continue to grant privileges to companies that have huge profits, while labor is taxed at 40%," said Marcel Ciolacu, who called for a quick amendment to the Fiscal Code.

"There are exceptions over exceptions, gambling taxed at 1%, companies taxed at 1%, if you have an employee you have 1%, if you have no employee, you have 3%. I'm tired of all kinds of people appearing at every discussion, who come and give their opinion after they have destroyed Romania and say how they paint the bright future and how good the unique quota is, which no longer exists", said Marcel Ciolacu.

As a first reaction, the liberal Florin Citu, president of the Senate, showed that, in his opinion, there is a double personality in PSD.

"If PSD focuses on the implementation of the NRRP, all these things are solved. That's how we get to the elimination of exceptions, but PSD says one thing and does another. This year another exception was introduced for a sector. Well, you can't say you want to eliminate exceptions, but at the same time, introduce other exceptions. Somewhere there is a double personality in PSD, who speaks something, but acts differently", considers Florin Citu.

On Friday, Prime Minister Nicolae Ciuca, the president of the PNL, said in a press release that in times of instability it is not healthy and responsible to play with the tax system and stressed that the Liberals will not support any measures that will stifle the business environment.

On the other hand, the prime minister specified that the entry into force of some measures that may fail later in the test at the RCC means damages paid from the state budget. The exchange of remarks in public, between PSD and PNL, came after several meetings of the governing coalition, at the end of which no decision was reached regarding the amendments to the Fiscal Code.

For the changes to the Fiscal Code to take effect on January 1, 2023, they should be adopted by the end of this month. On the other hand, the PSD leader, Marcel Ciolacu, proposed this morning a cap on fuel prices, mentioning at the same time that companies in the field should have a profit margin.

According to some sources, PSD proposes that this profit margin be 5-10%, so that the price of fuel will decrease.

Translated by: Radu Matei