This new crisis started by the political class cannot be solved by tax increases, but by a good management of public money, according to Dan Sucu, president of the Concordia Employers' Confederation.

'While at the helm of the Oradea City Hall and the County Council, Mr. Bolojan demonstrated responsibility and efficiency in managing public money. We expect him to apply the same rigorous approach during his term as premier. We call on prime minister Mr. Bolojan to size the budget expenditures in accordance with real resources. We urge the government to stop transferring the inefficiency and poor management that are characteristic of the public sector to private companies and citizens. This new crisis, started by the political class, cannot be solved by tax increases, but by a good management of public money,' said Sucu, following the meeting of the National Tripartite Council for Social Dialogue, organized on Friday.

According to him, rises in VAT is currently being discussed for those who pay it honestly.

'It is deeply unfair when we know that Romania loses enormously in VAT collection - one third of this tax does not reach the state budget. We know that there are sophisticated networks of VAT evasion, supported by high-ranking public servants who are supposed to protect public interests. And yet we are talking about raising VAT precisely for those who pay it honestly. There are industries facing major difficulties at the moment. Many companies that have paid their taxes on time and correctly for decades are now in dire straits. These companies now need help to survive, not extra taxes to push them into bankruptcy. We are talking about tens of thousands of employees who would go unemployed and thousands of entrepreneurs, mostly Romanians, who would see their dreams crushed,' said Dan Sucu.

The president of the Concordia Employers' Confederation considers that balancing the budget deficit must be achieved by reducing spending and streamlining public sector activities.

'We are aware of the need for rapid measures to correct the budget deficit, but we insist that this balancing must be achieved by cutting expenditure and not by tax increases. The watchword must be making the public sector work more efficiently, not further taxing taxpayers and the private sector. The successive tax increases of the last two years, which have led to a substantial increase in state revenues, were introduced under the justification that they will lead to a reduction in the budget deficit, which is already at a worrying level. However, we have experienced a spending cut that has led to an increase in the deficit instead of the promised reduction. We are categorically opposed to tax increases and consider it deeply unfair that the private sector should again pay for the irresponsibility of governments in recent years,' Dan Sucu pointed out.

The Concordia Employers' Confederation represents 20 of the most important sectors of the Romanian economy. 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 organization in Romania that is a member of BusinessEurope, the International Organization of Employers (IOE), and Business at OECD (BIAC).

The Ministry of Finance published a draft law on Thursday that provides for certain fiscal and budgetary measures, including an increase in the standard VAT rate from 19% to 21% and in the reduced rates from 5% and 9% to 11%, an increase in excise duties, an increase in the tax on dividends from 10% to 16% and an additional tax for banks. The bill also provides for an increase in gambling taxes and the payment of social contributions for pensions exceeding 3,000 RON, for the amount exceeding this ceiling. AGERPRES (RO - writing by: Daniel Badea; EN - writing by: Simona Iacob)