Romania Ctrl Bank Head Says Tax Increase Possible In The Future

„Romania might have to increase taxes eventually,” Isarescu told a financial forum.

Still, Romania’s best bet now is to stick to its plan to reduce expenditure, he said.

The probability that the cost-control measures would require tax increases afterward is rather small, Isarescu said.

„Increasing the taxes now and then having to cut expenditure is much more probable,” he said.

The authorities recently decided to cut public wages by 25% and pensions by 15% as of June, in a move aimed to lower the budget deficit to 6.8% of the gross domestic product by year-end, from 7.4% of GDP in 2009.