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What the newspapers say: October 7, 2009

de A.C.     HotNews.ro
Miercuri, 7 octombrie 2009, 8:11 English | Press Review

Finance minister Gheorghe Pogea proclaims the future: taxes will increase if problems will demand it, one newspaper reads. Elsewhere in the news, in Romanian prisons there are exactly 11 police officers arrested for corruption acts. Last but not least, Bucharest was ranked 30 in a best 34 business environment top.

The main taxes might increase, if necessary, Finance minister Gheorghe Pogea declared, Gandul reads. According to Mediafax, he explained that Romania has one of the lowest public revenues, about 31 to 32% of GDP while public spending are about 37%.

Pogea explained that authorities need to consider reforming revenues. As a solution, he said that Romania will have to increase at least one of the taxes. The government plans for 2010 a reform of revenues, to increase the level of state contributions.

President Basescu declared on Monday that he prefers to increase the VAT to resolve all problems, Cotidianul said. The newspaper reads that the government is trying to mask the real actions behind economic terms like fiscal consolidation.

GEA Executive Director Liviu Voinea declared that in 2010 the government might increase the VAT from 19 to 22%. A 3% increase in VAT will increase budgetary revenues by 0.8% of GDP, Voinea said.

However, this is not a new idea of the government: in the summer, during a seminar, the President of a consultancy firm declared that the Finance ministry has unofficial talks with specialists to increase the VAT to 22% starting 2010.

But, at the time, both PM Boc and Finance minister Pogea denied the information.

Elsewhere in the news, Romania libera reads that there are 11 police officers condemned for corruption in Romania. Even if there were hundreds of cases, highly mediatized, in which high positioned police officers were accused for bribery or other acts.

Romania libera reads the story of three of the police officers in detention for minor briberies. The third police office was caught while taking 15,000 euro bribery from a transports owner who wanted to avoid any problems.

Even though they admit they were wrong, they all think they were not offenses for imprisonment considering that other colleagues of them were not convicted even thought they broke the law.

Gandul reads that Bucharest increased on the 30th position in a top 34 destinations for business in Europe, registered progress to criteria like expenses with employees, transports links or the life quality of employees.

After Bucharest, Helsinki is ranked 31st, Moscow 32,  Oslo 33 and Athens on 34, a European cities monitor study reveals, conducted by Cushman and  Wakefield.


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