Romanian Finance minister Sebastian Vladescu defended the changes he supported for the Fiscal Code in an interview for, saying that the legislation is functional and adaptable to European demands while generally pleasing business people.

His statements come as the Fiscal Code was passed by the House of Deputies on Wednesday despite threats from two junior members of the governing coalition, the Conservative Party and the Democratic Hungarians, to boycott the vote. While the Conservatives boycotted the vote, the Democratic Hungarians opted to support it eventually.

According to minister Vladescu, the attitude of the Conservative Party was predictable. The group cared more for their own image than for their own claim that they supported the business environment and the small and medium enterprises, Vladescu told

He showed the changed Fiscal Code would provide for one of the lowest taxation levels in Europe with a flat tax of 16%, which is stimulating investors.

And he said the version of the Fiscal Code approved by the Parliament yesterday was a stept forward but the application of the new, flat-tax oriented policy was a lasting operation.