Romanian Liberals To Call For No-confidence Vote Over Budget Revision

Antonescu added liberals consider the lump sum tax introduced by the government is “fiscal genocide”.

"The party’s executive council decided to start procedures for a no-confidence vote against the government for the draft budget revision it adopted. We will attack the idea of the lump sum tax, which we consider is next to fiscal genocide. It is a measure that once again shows the Boc government’s incompetence and irresponsibility,” Antonescu said during a press conference, adding the introduction of the lump sum tax marks the end of the flat tax.

The Romanian government approved Saturday a draft ordinance revising the 2009 state budget, introduced the lump sum tax and froze wage bonus in the public sector. The 2009 budget revision is based on a deficit of 4.6% of the GDP, compared with 2% initially decided, given a GDP adjustment to RON531 billion from RON579 billion.

The acts will be sent for analysis to the European Commission and the International Monetary Fund (IMF) in view of completing the loan agreement through which Romania gets EUR19.95 billion support that will hopefully help the country’s economy recover.

Romania will borrow EUR12.95 billion from IMF under a two-year standby agreement, and another EUR5 billion from the EU.