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What the newspapers say: December 17, 2008

de A.C.     HotNews.ro
Miercuri, 17 decembrie 2008, 3:12 English | Press Review

Newspapers on Wednesday read about the ongoing political negotiations between the two political parties that formed a coalition for the new government, the Social Democrats and the Democrat Liberals. All newspapers read about the new governmental policies presented by the two parties.  Elsewhere in the news, Romanian troops in Iraq will return home starting July 2009.

Gandul reads that today the two political parties to form the government, the Social Democrats and Democrat Liberals will allocate the 18 ministers using a lottery system. A photography revealed by all newspapers today shows that Democrat Liberals plan to get the Transports, Interior, Finance and Agriculture ministries.

Also today, political sources put forward the governments' new program, a 63 pages document that was negatively assessed by economists who declared that financing sources are completely missing and the proposed measures will not be implemented easily in a crisis year.

The newspaper reads that after one week of visible and invisible negotiations, the two parties managed to reach an agreement. Thus, they came up with three new ministries by dividing the Finance and Economy Ministry and by setting up a Tourism Ministry and a Sports Ministry.

Even if the two parties have come to term how to divide the ministries, they did not decide on the nominations for each seat. Romania libera reads that the new policies are throwing the party on the leftist side, rather than on the right, where it positioned itself.

Cotidianul reads that the governmental program put forward by the Social Democrats and the Democrat Liberals is vague and contradictory. Among the main policies undertaken are a moderate fiscal policy and an increase in budgetary spending. The newspaper reads that many policy proposals contradict each other and that the program does not take into account the future crisis to hit Romania.

The new program presented by the Social Democrats and Democrat Liberals is based mainly on a moderate fiscal policy that economic experts recommend for times of crisis. The main provision is to maintain a flat tax of 16% for both revenues and profits. The only difference is that the government will supplement the fiscal offer by offering compensations and cuts for people with low revenues.

Some important measures within the program: the new government plans to reduce the VAT to 5% for basic food, and increase it by 25% for luxury products. Another important measure is to allocate 47% of the revenue tax to the local budget where the respective worker lives and not where the employer is located. The idea is basically that the money will return in the town where the worker lives, and they will no longer be allocated in bigger cities.

However, current Finance minister Varujan Vosganian declared that such a measure cannot be applied, because the state would need to dispatch a huge administrative personnel to follow the transfers.

Last but not least, Cotidianul reads that Romanian troops dispatched in Iraq will return home starting July 2009. The newspaper reads that the Iraqi government adopted on Tuesday a draft law ruling the withdrawal of foreign troops (except for the American ones) by the end of July 2009.

The project will also have to pass in the Parliament to enter into force but it also touches upon the 498 Romanians in Iraq with an UN mission.
























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