Romanian PM Urges Ministers To Sack Institution Heads Not Fighting Tax Evasion

The prime minister on Saturday met with a committee in charge of fighting tax evasion, which includes members of the ministries of Finance, Interior, Justice, the national tax authority and the general prosecution office.

Boc told committee members that all extra money collected from fighting tax evasion goes to investments, wages and pensions.

„You can’t ask people to accept wage and pension cuts and continue to turn a blind eye on tax evasion. I urge you to immediately replace anyone who doesn’t apply the Government’s program against tax evasion, there’s no time to pet them on the head,” Boc told ministers, adding „whoever doesn’t apply the Government’s program, leaves.”

The draft law fighting tax evasion is expected to be discussed in the Cabinet’s meeting Wednesday. Also Wednesday, President Traian Basescu is expected to hold talks with Government members.

Romanian authorities announced drastic spending cuts and plan to fire 70,000 public workers this year. Romania is also set to slash public sector wages by 25% and pensions and social benefits by 15%, in a bid to tighten its budget deficit to 6.8% of GDP while keeping its main taxes unchanged.

The International Monetary Fund, which is leading a EUR20 billion rescue loan for the recession-hit eastern European EU member, is set to release a new tranche of the loan, amounting to nearly EUR0.9 billion, when Romania has its promised measures in place.

Joint teams from the IMF, the EU and the World Bank were in Bucharest until May 10 for the fourth review of Romania’s progress under the loan agreement.

So far, Romania has received around EUR9.2 billion from the IMF and EUR2.5 billion from the EU.