SLU Releases Economic Programme

Criticism against the Government and economic suggestions on Friday, when the Social Liberal Union released its own economic programme.

The solutions suggested by the opposition include a 19 percent VAT and differentiated taxes on salaries.

The economic programme of the SLU includes 43 measures that aim at a sustainable growth of income by stimulating investment, encouraging new jobs and an even distribution of resources.

The three opposition parties have declared agriculture, infrastructure, health care, education, social policies, output and power their top priorities.

Upon presenting the programme of the Union, Victor Ponta, President of the Social Democrat Party, stated that the main objective is generating new jobs, about a million until 2016.

The objective can be attained, he says, by reducing work costs and stimulating the private sector.

The SLU proposes a 5 percent discount on social insurance contributions for employers and no taxes for reinvested profit.

The leaders of the three parties have agreed upon a solution for the tax system. It was well known that the Social Democrat Party wanted progressive taxation of income, while the liberals preferred a sole quota.

‘We can attain reduced fiscality and social balance through a social-liberal programme: 8 percent for the minimum wage, 800 RON, 12 percent for wages from 800 to 1600 RON and 16 percent for wages higher than 1600 RON’, Victor Ponta said.

Former Prime Minister Călin Popescu Tăriceanu also claimed that their solution offers other social milieus a chance to higher incomes.

Moreover, the liberal leader stressed that, if elected, the SLU will not raise the income tax above 16 percent.

He believes that balance between the two parties would stimulate the economy.

Former social-democrat Prime Minister Adrian Năstase also said that the SLU approach is based on dialogue and solidarity.

Moreover, he said that this programme needs macroeconomic stability, political and social balance to be implemented.

National Liberal leader Crin Antonescu stated that the economic programme needs two things to work: economic solutions and political will.

‘Through this programme we do not say that we want every Romanian to thrive. This programme simply makes choices about taxation, work costs and the existance of institutional forms. It makes choices and takes risks, because all of us at the SLU understand that the politically responsible thing to do in Romania right now would be to take the necessary risks’, Crin Antonescu said.

The SLU programme is going under public debate. The SLU are open to dialogue, because, as the leaders said, the programme is not a dogma, but a set of measures than can be improved.

Translated by: Gabriela Lungu
MA Student, MTTLC, Bucharest University