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What the newspapers say: May 12, 2010

de A.C.     HotNews.ro
Miercuri, 12 mai 2010, 8:28 English | Press Review

The black market prejudices the state with huge sums: in agriculture, fiscal evasion is over 5 billion euro, one newspaper reads on Wednesday. Elsewhere in the news, the stand by agreement with the IMF might decrease apartment prices by 25%. Last but not least, most newspapers note about the executive's decision to decrease the mother's social aid for raising the child.

A report released by the Competition Council reveals that fiscal evasion makes up half of the total cereal transaction market, Romania libera reads. On the second, meat products market. Legal companies in the sector accuse political implications in the evasion.

The report reveals that the state's budget is seriously affected by evasion. Agriculture ministry general director Daniela Giurca confirmed the data presented by the Competition Council. Other businessmen in the sector declare that the cereal market amounts to about 1 billion euro per year which means that the fiscal evasion amounts to half.

Businessmen explain the evasion process,  which is well grounded in the way Romanians understand to evade the state. Agricultural Associations leaders claim the fiscal frauds are made by companies well organized, who work in a closed system. Moreover, they claim that these businesses are protected by politicians.

Elsewhere in the news, Gandul reads that the stand by agreement with the IMF might lead to a decrease in apartment prices in the cities. Analysts say that taxes for buildings will increase. Romanians can finally make new plans: experts estimate a decrease in old apartment prices.

In one year, the decrease registered will amount to 20-25% and maximum cuts will be witnessed where the increases were high during the economic boom.

The chances of buyers to take advantage of the cuts are low, since the access of the population to credits remains scarce and the purchasing power decreased constantly. In Bucharest, analysts expect a continuous decrease in the price of old apartment. Last year old apartment prices decreased by 39%.

Most newspapers read about the government's decision to decrease social aid for mothers raising their children. Social aid for invalid persons, state allocations for children and the minimum salary will not be affected.

However, mothers will receive less money to stay home with their children, Evenimentul Zilei reads. Members of the executive are expected to decide these days on the exact cuts. Unemployment aid will also decrease, just like pensions.

PM Boc's counselor, Andreea Paul Vass declared that the government decided to cut social aid for mothers as a sign of solidarity. Experts quoted by the newspaper declare that the measure will have a direct effect on the decrease of natality rates and will also lead to child abandonment.
























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