Theme: Executive Meeting from 24.03.2010

Press statements by PM Emil Boc at the end of the Executive meeting

PM Emil Boc: Good evening. We have adopted the legislative act by which we deferred income tax prepayment. As I promised business environment before early April, we adopted the legislative act by which for 2010 too, as for subsequent years until 2012, we deferred profit tax prepayment. We made this decision to back the business environment as discussed before.
Secondly, we have adopted today a Government decision according to which, young people and students from low income families will receive support worth 200 EUR to purchase a computer. In other words, 25 thousand pupils and young students from Romania will receive financial support to purchase a computer, 200 EUR, money that will be received under the form of coupons, with which they can proceed to purchase a computer. This amount of money they receive can be used exclusively for the purchase of a computer. In other words, the state comes up with a good contribution in backing young people to purchase a personal computer to be used in educational activities. It is, as I said, 25 thousands pupils and students, 200 EUR each, about 5 million EUR, a sum that is available to help achieve such a program.
Thirdly: I have decided today that all state directors of companies in 2010 have the salary reduced to the level of a Secretary of state. As you know, until June 30th, we already have legislative act in force. I decided today to extend the situation where directors of state companies have their salary reduced to the level of the salary of a secretary of state for the entire year and not only until June 30th.
Also, representatives of state in companies, in the boards will have during the full year, only 1% of the salary of the director’s salary. We made this decision to extend for the whole year 2010 this limitation of salaries and benefits of those participating in the boards due to the economic situation in which we are, in which, we have frozen wages and pensions. It is natural, then, and at the level of employees, directors or members at the Board of State, we have the same unified approach taking into account the difficulty in which we are still, hoping that in 2010, obviously, we get out of economic recession.
I also want to mention that, as we promised to carriers, we adopted in first reading today the Government Emergency Ordinance which regulates the illicit transportation of persons. The contents of this legislation were presented, and the final version will be approved next Wednesday, while the sanction of the Economic and Social Council, under the law will have to be obtained. This is why the legislative act will be presented and adopted on the next Government meeting. If you have questions.
Reporter: As regards taxation, the Ministry of Finance - the information you have - is considering taxing meal vouchers, gift vouchers, the vouchers for holiday and at the same time, additional taxation of luxury goods such as such as yachts, boats?
PM Emil Boc: I have not had any discussion in the Government on the subject. Amendments to the Tax Code are debated and prepared at the Ministry of Finance. So far, I have not been informed about it and I do not know if they approached or not such a topic at present, as I have not been informed. When they have completed a formula, they will submit it to the Government; I will present it to you.
So far, we have not discussed anything about this topic in government. Again, I have discussed this topic, I do not know whether or not approached to finance such a topic at the moment because I was not informed.
Reporter: However, Finances has already started consultations with unions and employers on such a project, do you know?
PM Emil Boc: As I informed, the Ministry of Finance is working on the draft law to amend the Tax Code. So far I have not been informed and have not received any other normative act upon which I can pronounce myself. It - I repeat - is under preparation at the Ministry of Finance.
Reporter: The European Commission’s officials said today about the Convergence Programme which you've submitted, you have some overly favorable estimates, some assumptions too favorable on economic growth in 2010 and 2011. Moreover, the version they have received does not have that risk scenario that you've had in the initial draft of the convergence program. Thirdly, the European Commission argues that Romanian Government did not mention solutions to avoid exceeding the budget deficit in coming years. How do you comment their reactions?
PM Emil Boc: All details from the convergence report are based on discussions, negotiations and approvals that we had with the European Commission, International Monetary Fund and World Bank. Both economic growth - for example in 2010 of 1.3, the budget deficit and other issues are the product of discussions with the bodies with which Romania is in touch and in bilateral agreements, for which they are found in the convergence plan. They do not represent therefore, only the Government's vision, but they are the product of discussions that I had with international bodies. Can you repeat the second question?

Reporter: Solutions. They said you did not mention specific solutions so that the Government does not exceed the deficit target, they argue there are some overly optimistic forecasts for the current economic situation.

PM Emil Boc: The solutions we have budgeted and that are promoted and implemented in accordance with international bodies range from 1.3 economic growth and 5.9 budget deficit. These are things - I repeat - approved by the Government of Romania, National Commission for Prognosis, the Ministry of Finance, IMF, World Bank, European Commission. These are official data that we have, and convergence plan contains no other scenario more or less favorable. This is the scenario adopted by the Romanian Government to talk about it.
Reporter: Mr. Prime Minister, where do you get the 500 million EUR for e-Romania project?
PM Emil Boc: If next years as this program is planned to be built, we will have financial resources, the money will be earmarked. It , in fact, seeks to integrate into a national platform all electronic databases, which will mean saving time, money for citizens, online fiscal statements, online payments, data centralization. At this point, we do not have unfortunately, these financial resources, but it is a project that all EU countries have. I would ask to see Germany, for example, it has such a portal and I think Romania should have it too, and financing sources will be identified by the Ministry of Finance.

Reporter: But, why is it so expensive?
PM Emil Boc: It is a forecast, following concrete tenders; we will see the exact amount. As with any project, there is an anticipatory estimate of the amount of the project. We'll see exactly how it will cost.
Reporter: What measures will you take for putting back the 11 billion EUR that had to go to investment - it's about National Development Fund.
PM Emil Boc: You better ask Mr Tariceanu what he did with the 2.7 billion EUR, it is what you refer to ...
Reporter: Money must be put in place.
PM Emil Boc: For this, you must ask Mr Tariceanu.
Reporter: You talked about a parliamentary inquiry last year.
PM Emil Boc: Unfortunately, I am not lawmaker to promote it faster. It falls to the Parliament’s responsibility to lead a parliamentary inquiry and hope it will do so. I just found out that, unfortunately, money that should go for infrastructure and jobs, went to other areas and funded a deficit that led Romania to an excessive deficit, compared to EU states and, worse than this, it entailed the difficult situation of 2009, in the context of the economic crisis. Thank you very much.