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de Alina Comanciu     HotNews.ro
Vineri, 19 decembrie 2008, 8:57 English | Press Review

All newspapers today read about the new ministers to form the government and the governance program put forward by the PSD PDL alliance. Elsewhere in the news, Romanians will face price increases in early 2009.

Cotidianul reads that Democrat Liberals changed the governance program to include more right wing policies: some social measures imposed by Social Democrats were deleted, massive spending decreases.

The governance program became lighter after a series of fiscal provisions were removed from the original texts, among which the differentiated VAT tax and the allocation of revenue taxes per counties.

The new text was released at the Social Democratic Party meeting as the new governance program. In general terms, the government plans to continue with a relaxed fiscal policy, to cut social spending and those money waisted in state salaries.

The 2009 budgetary deficit was lowered at 1.7% of the GDP up to 2.5% in the original text if economic perspectives will be maintained to 3.5% with an inflation of 5%. In the new program, the government will not sustain pensions of 45%.

The new program aims to cut fiscal deficits by reducing public spending. More precisely, the government wants to adopt a gradual decrease of spending initially meant for state employees by 20%.

The decrease will be obtained by the elimination of the open jobs in the central administration (some 139,500 jobs) and by reducing benefits offered. Some of the public servants might also get fired, because, according to the program, a rationalization of personnel numbes is seeked.

However, several measures were taken out for good from the governance program, like social protection measures or the establishment of a minimum average salary for the whole country, of 600 Romanian RON starting July 1, 2009. Another measure taken out is the increase of state allocations for children.

What's more, the car tax does not have any provision anymore in the governance program. Plus, there are some modifications of some measures: the minimum social pension of 350 Romanian Ron that was initially scheduled for July 1, 2009.

Still about the government, Gandul reads that the new Democrat Liberal PM Emil Boc will reign over two local tycoons from the Democrat Liberals and Social Democrats alike. President Basescu agreed to allow PDL tycoons Blaga Videanu and Berceanu to become part of the government and take up minister mandates for Regional Development, Economy and Transports.

In the Social Democratic camp, four are local tycoones - Ilie Sarbu, Gabriel Oprea, Constantin Nita and Dan Nica while all the others are somehow related with them. The newspaper reads that all proposals for the ministries have been approved and presented to the public.

Thus, the government is actually made uo a two government, each set up by their own tycoons that have entered either in the Executive or decided to influence it through their people inside it.

The Democrat Liberal surprise came after the three leaders were proposed for a seat in the government, namely Blaga, Videanu and Berceanu. In the Social Democratic camp, the biggest winners of negotiations are PSD Mayor in Constanta Radu Mazare who will influence the Environment Ministry as his former vice president in Constanta, Nicolae Nmeirschi got the nomination.

Plus, also for PSD, Gabriel Oprea was nominated as Interior minister and Ionut Bazac, also known as the Ferrari minister, as he is an importer of Ferrari and who became Health Minister due to a debt Mircea Geoana had to repay.

Elsewhere in the news, Cotidianul reads that 2009 will kick off with several prices increases for drinks and gas. As the refence rate exchange for alcoholic drinks, gas and accises increased, all products calculated after it will register a 3% increase starting January 1.

The new reference exchange rate for Romanian finances translates into an increase of accizes by 11.3%. Among these, most accizes increase starting January 1 according to the compliance calendar of the EU.
























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