IMF Deal Keeps VAT, Flat Tax And Salaries – Romanian President

Basescu stated that, by taking a loan from the IMF and the EC, Romania has not created a “safety net”, but a “safety belt.” He said this will be borne out when the contract is made public.

Basescu noted that there are several elements that are not characteristic of a country in need of rescue – he said Romania will not have to increase VAT, drop the flat income tax of 16%, nor lower salaries and pensions.