Theme: Executive Meeting from 19.05.2010
Statements by PM Emil Boc at the beginning of the Executive meeting
Before starting the Executive meeting, I would like to make some clarifications regarding the program of measures aimed at cutting the budget deficit and backing the economic activity. Without disrupting the social dialogue with social partners, unions and employers, we will proceed to decision making. From this perspective, I propose to the Government and coalition, the responsibility assumption as way to implement the programme of cutting the budget spending and backing economic activity.
As calendar, the assumption procedure should enable the Government to enforce those measures as of June. Therefore, the contents of the draft law that will focus on responsibility assumption for the austerity measures and those to back the economic activity will be discussed in the coalition first, and afterwards approved by the Government and then follows the responsibility assumption for them before Parliament, in order to have on the one hand, a support from the coalition, and on the other hand, a force of law on the measures that we are targeting for enforcement.
Our measures will mainly focus on the cut in budget spending and not on the rise in taxes. And here, I refer especially to the non – rise in VAT and flat tax as alternatives proposed by some or others.
I think that at this point, the solution of cutting the budget spending, to allow us to keep a 6.8% deficit in 2010, is the viable one for the future of this country.
We have to call the things by themselves; this Government is not responsible for the drifts, the errors in wage policy and pension policy in the years 2007-2008. In 2009, we managed to keep under control, to limit and stop these increases in spending. Now, owing to the European and global economic crisis worsening, Romania cannot afford financing from loan the additional spending on salaries and pensions. And if it is to be fair with the 22 million Romanians, even if these measures are painful, harsh, at the individual level, it is very painful, as regards Romania as a whole, they are absolutely necessary. And such a decision may be taken only by assuming direct responsibility before Parliament that will decide if it wants Romania to go in the right direction, to have a healthy future of economic growth and not based, as previously, on consumption and borrowing, but one based on productivity and efficiency, enabling a healthy growth in wages and pensions in Romania, in the future. Or better said, first make sure that such social obligations of state are paid without problems in the future, at a fair amount that can be supported by the Romanian economy.
Therefore, Mr. Vice Prime Minister, I spoke with Minister Oprea, we will discuss immediately, in the period ahead, this draft law, we will analyze it with the social partners, and the Government will assume responsibility for this draft law, as I mentioned.
With respect to tax evasion, as I decided last week, we have a legislative measure that we will consider in first reading today, a draft emergency ordinance to be adopted next Wednesday. Here, we should not wait for the responsibility assumption, because it is likely for the emergency ordinance to allow us some legislative amendments to strengthen mechanisms for combating tax evasion, but such mechanisms should be coupled with the work of people in the country, people to implement these measures.
In this context of cutting the budget spending and the social implications, I propose you to resolve the remaining issue of some state secretaries and advisers who are in the Board of Administration of trading companies where the state has a minority equity, or at the CEC and Eximbank, financial institutions, to donate the entire allowance given by the Board of Directors, for the following six months, to the Solidarity Fund. I say this because other state representatives who are in the Board of Directors where the state has a majority equity, the allowance is 1% of the salary of the Secretary of State, that is 44 RON. There the problem was solved long ago, I propose here, where we have minority shareholders, but where the law requires that Government be represented by state secretaries or other persons representing government, the donation to be made in the next six months. Those who do not meet this requirement of the Government, obviously, should be changed by the Ministers without any notice. This is Government’s policy in a context of austerity that we must impose at all levels. /.../
On the basis of our discussions with the Ministry of Health and Ministry of Finance, we promote today in emergency regime an ordinance on some financial measures in the healthcare sector, whereby we provide to the National Health Insurance House the possibility to conclude additional legal commitments in the limit of 500 million lei to face the need for medicines in Romania. It is the emergency ordinance which meets the needs of the healthcare system, the needs of the Healthcare Insurance House, so that the compensated medicines issue and not only can be assured not only in the period ahead too. The legislative act will be adopted today, on the Executive meeting, through Emergency Ordinance procedure.
