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Concrete anti-crisis measures: Romania versus EU

de Radu Rizea     HotNews.ro
Joi, 19 martie 2009, 17:25 English | Regional Europe

In front of a crisis announced ever since the beginning of 2008, but denied by authorities until after the elections, the macroeconomic indicators in Romania suffered major depreciation. HotNews.ro added up the concrete measures adopted by the new Government, compared to the similar measures adopted in the European Union.

The Governmental session on March 18:

- Social measures for people affected by the crisis: the unemployment aid will be received for three months more than usual, health contribution payment suspended for employers and employees in technical unemployment (people earning 75% of the wage, staying at home due to production being suspended). The 75% of the wage earning are tax-free for a maximum of three months.

The Governmental session on March 11:

- Adopting a memorandum on reducing the number of taxes and fees;
- Putting up a Counter-Guarantee Fund, designed to maintain and create new jobs.

The Governmental session on February 18:

- Introducing the minimum guaranteed pension of 300 RON, rising to 350 RON in October 2009 (some 70 Euros, and 82, respectively);
- Reducing the car tax 30%;

The Governmental session on January 29:

- Adopting the state budget for 2009.

In Europe (as put up by Reuters):

- Bulgaria increased the spending 20%, most money going to infrastructure projects, renovating public buildings, health and education projects;

- The Czech Republic doubled the economy stimulation package to 3.3 billion dollars, representing 1.8% of the GDP;

- France introduced a package of stimulation measures of 26 billion Euros (1.3% of the GDP). The French Economy Minister declared that the measure will lead to the creation of 80,000 - 110,000 jobs;

-Germany: Economic stimuli worth 50 billion Euros, designed for investments in infrastructure and tax decreases;

- Hungary: The Government increased the VAT, in order to increase its income and thus reduce the income tax. The economic stimulation plan is worth 6.9 billion Euros.

- Italy adopted measures to help families and companies in crisis. Prime Minister Silvio Berlusconi announced that the measures will cost some 80 billion Euros, but economists emphasized that most measures use already existing funds;

- Lithuania: 1.86 billion Euros as economic stimulation designed to ease the access to credits for companies;

- Holland announced a "cash impulse" of 6 billion Euros;

- UK will spend 500 million pounds sterling to prevent unemployment. Companies will receive 2,500 pounds for each new employee who will keep his job for at least six months. The measure is part of a wider plan, worth 20 billion pounds, which includes tax cuts and capital spending. VAT will also decrease from 17.5% to 15%.

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