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Concordia Employers' Confederation calls on President Dan not to focus on raising taxes to reduce deficit

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Concordia Employers' Confederation calls on Romania's President, Nicusor Dan, not to focus on raising taxes to reduce the deficit and to consider measures such as spending public money responsibly, cutting unnecessary spending, reducing tax evasion and absorbing European funds.

'By voting you, over six million Romanians voted for change. Over five million voted for change by voting your competitor. These people went to the polls in the hope that someone will finally do things differently. Yes, over 11 million Romanians expect Romania's president to fight, from his supreme position in the state, for the promotion of honest, incorruptible decision-makers who will responsibly manage our tax money. In the last 20 years, Romania's GDP has quadrupled. Four million Romanians working in private companies, together with the millions of Romanians working abroad, have succeeded in making Romania an economic success story at European level. It is clear that the change that we are all waiting for is not in the economic area - the economy functions through its own forces. The change is expected to happen at the political level. In the way in which the political class manages public money - without waste, without huge deficits that jeopardize what the private sector has achieved so far,' reads a message addressed by president of the Concordia Employers' Confederation Dan Sucu to President Nicusor Dan.

Dan Sucu maintains that recent history has once again provided a painful lesson and mentions that in the summer of 2023, the prime minister and the minister of Finance discovered 'with astonishment' that the state budget is badly constructed and that the annual budget deficit is heading towards 7% of GDP. He says that the solution found in that context was the same as in the last 30 years, namely raising tax, and taxpayers paid over 11% more.

'The representative employers' confederations protested vehemently, and the decision-makers solemnly promised that the deficit would be corrected, half by tax rises and half by spending cuts. New taxes were introduced in both September 2023 and January 2024. Through these taxes, taxpayers have paid over 11% more - a huge increase year on year. This increase, combined with responsible spending of public money, would normally have led to a balanced budget,' the document says.

According to the president of the Confederation, state spending increased last year by 20 percent, and of this spending, wages and salaries increased by 25 percent. Instead of lowering the deficit and balancing the budget, these have jeopardized all the economic achievements of the last 20 years, resulting in a huge deficit of over 9%. And now, as every time, decision-makers are presenting the urgency of taking measures that can only be tax increases.

'Politicians we have met so far, after making a promise, focused only on finding reasons not to fulfill it. From you, the over 11 million people who voted for change, we expect you to focus on always finding solutions to fulfill the promises made: spending public money responsibly, cutting unnecessary spending, reducing tax evasion and absorption of European funds; not on increasing taxes for those who already support the whole construction. Mr. President, if we really want change and a new beginning, we have to do things differently. Keep your promise. You don't get two chances for first impressions. Eleven million Romanians voted for change and they will not accept to be disappointed again,' Concordia Employers' Confederation emphasizes in its message to the Romanian President.

Concordia Employers' Confederation represents 20 of the most important sectors of the Romanian economy and is a nationally representative social dialogue partner. With a contribution of 30% of GDP and over 450,000 employees in 3,900 large and small companies, with Romanian and foreign capital, Concordia is the only Romanian organization member of BusinessEurope, the International Organization of Employers (IOE) and Business at OECD (BIAC). AGERPRES (RO - writing by: George Banciulea; EN - writing by: Simona Iacob)

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