Economic Programs

The parties most likely to hold the first positions in the future Parliament, have made public their economic agendas.

Ştefan Stoica, 10.10.2016, 12:23

One month before the start of the campaign for the parliamentary elections due on December 11th, the party ranking first in the polls, the Social Democratic Party, has drawn up its economic agenda, as part of its potential governing program. The Social Democrats propose a mix of liberal and social initiatives, aimed at satisfying the captive voters. Their program includes measures such as the elimination of 100 non-fiscal fees, fiscal relaxation measures, as well as measures aimed at increasing people’s incomes.

Also, the Social Democratic Party would like to see more money in the 2017-2020 budget as a result of European funds absorption, the setting up of a sovereign development fund and investments under which the amounts entering the economy would return to the general consolidated budget in the shape of taxes and fees, including the VAT. Also, the Social Democratic Party would like to ensure a fiscal re-launch for employees, for the income tax to reach zero, as of January 1st 2008, for those who earn up to 2000 lei, which is 450 Euro, for doctors and IT specialists. As for pensioners, the Social Democrats come with a proposal that nobody would refuse: eliminating the income tax as of next year, also if the pension is lower or equal to 2000 lei.

Also, all pensioners would no longer have to pay contributions to the health insurance fund. As the main opponent of the Social Democratic Party, the National Liberal Party would like to give the economy a boost by investing an additional 24 billion Euros in the coming four years. As regards taxation, the liberals propose the generalization of the 16% flat tax, now applicable only to the income tax. Therefore, the standard VAT and the social contributions paid by employers and employees would be all brought to the level of 16%.

The newly created Save Romania Party, ranking third in voters’ preferences, comes with a long term vision for sustainable development, based on investments, not on consumption and fiscal incentives, as well as strategic investments in infrastructure and education. Under the Union’s program, transportation is a national priority and health care would benefit from additional funds from the budget and would enter a process aimed at rendering it more effective. Debates on the three parties’ economic offers have been disturbed by the dispute over the warning launched by Romania’s president Klaus Iohannis, who said that, after the elections, he would not designate a prosecuted or convicted Prime Minister.

The President did not give any names, but the leader of the Social Democratic Party Liviu Dragnea, sentenced in the famous case of the 2012 referendum on the impeachment of the then president Traian Basescu, felt like the cap fit him. Offended, he accused the head of state of overstepping his constitutional responsibilities. That moment marked the unofficial start of the election campaign, which is very likely to be marked by fierce electoral confrontations.

(Translated by Mihaela Ignatescu)