NBR Governor considers that VAT increase could have been avoided
NBR Governor Mugur Isărescu considers that Romania needs to be cautiously optimistic, but its economy has the chance to increase during 2011.
Articol de Florin Lepădatu, 14 Ianuarie 2011, 10:05
Romania needs to be cautiously optimistic, but its economy has the chance to increase this year, declared NBR Governor Mugur Isărescu on the national TV channel, yesterday.
He spoke about the need to create new working places and to moderate the advanced retirement, so as to diminish the lack of balance between the number of tax payers and pensioners.
Mugur Isărescu added that the increase of VAT from 19 to 24 percent could have been avoided, while the reduction of the state salary fund has the best long term results.
‘If there are no corrections, by the end of the year the inflation will decrease, reaching 4 percent; and we’re not being optimistic. This is, however, on condition that no new corrections will be made, no new adjustments regarding tax level will be necessary. For the next months we will assist in the fast decreasing of inflation, from 8 percent to almost 6 percent’, said Mugur Isărescu.
The NBR Governor reiterated that authorities intend to continue the agreements with the International Monetary Fund, European Union, and other international financial institutions, as to bring reforms to a new level.
Translated by: Iulia Anca Toma
MA Student, MTTLC, Bucharest University
