





AFP: The Boc Government - impossible promises, generalities and no data on how social measures will be financed
"This program includes a long list of social measures, but doesn't mention any financing source", says former banker Bogdan Baltazar. The increase of the minimum wage on January 1, 2009, increased subsidies for agriculture and double allocations for children - "if all these targets are reached, the budget will be soon emptied", says Baltazar.
The new government intends to maintain the 16% flat tax, to reduce the VAT level to 5% for basic aliments, to issue compensations and deduction for low income employees and to increase the VAT for luxury products to 25%. "It reminds me of one of the Communist era programs, full of generous ideas. We ensure people that all will be well, but we don't say where the money comes from or who's going to pay", says Cristian Parvan, president of the National Employers Confederation.