Romanian PM Emil Boc and Finance minister Sebastian Vladescu made a series of statements before the Senate on Tuesday explaining the austerity measures pushed by the government, including an emergency ordinance increasing VAT from 19% to 24%. Minister Vladescu compared the budget apparatus and public spending with an elephant "overfed" by previous governments and which "is crushing us for two years".
For his part, PM Emil Boc compared Romania with a family which, confronted with the economic crisis, must not spend money "at the pub every day" and then try to get some loans.
PM Emil Boc said the government was aiming at cutting budget spending to 7.4% of the GDP in 2011 from 9.8% in 2010.
He said the Government was working on alternative measures to support the economy, including the elimination of a minimum tax and the possibility to sell minority stakes held by the state in companies.
