- Title: ROMANIA: Romania's governing party aims to cut wage tax after vote
- Date: 8th November 2012
- Summary: BUCHAREST, ROMANIA (NOVEMBER 8, 2012) (REUTERS) WIDE OF SOCIAL-DEMOCRAT PARTY (PSD) VICE-PRESIDENT, LIVIU DRAGNEA TALKING SOCIAL LIBERAL UNION PARTY (USL), PSD AND NATIONAL LIBERAL PARTY (PNL) MEMBERS LISTENING (SOUNDBITE) (Romanian) ROMANIAN PRIME MINISTER, VICTOR PONTA, SAYING: "I'm absolutely sure that we can raise the minimum salary in order to obtain a minimum income acceptable within the EU for people working in state institutions as well in the private sector. I'm also sure that labour cost reductions like welfare contributions, will actually increase the state budget and will promote the creation of new jobs." MEDIA (SOUNDBITE) (Romanian) ROMANIAN PRIME MINSTER, VICTOR PONTA, SAYING: "Romania has had enough austerity politics, our proposal is to replace this with a fiscal discipline policy, with maximum attention on social support." BANNER ON STAGE, READING: POWERFUL ROMANIA PONTA FINISHING HIS SPEECH, APPLAUSE VARIOUS OF PEOPLE ON STREET (SOUNDBITE) (Romanian) BUCHAREST RESIDENT, ION, SAYING: "The (USL) have a good will, so I will see. I think that I can give my vote to them, if they show me that they are promoting good things. I will carefully read their governing programme." (SOUNDBITE) (Romanian) BUCHAREST RESIDENT, FLORIN, SAYING: "I've been with the PNL for years, I like them. I would like to think that I'm on the right path, in the end living standards have to be higher for ordinary people." (SOUNDBITE) (Romanian) BUCHAREST RESIDENT, ANCA, SAYING: "The USL has done everything they could. What more could they do if they receive kicks from Mr. Basescu (Traian Basescu, President of Romania), Mr. Barroso, Mrs. Merkel, the Superior Council of Magistracy and the Constitutional Court. What they can do?" PEDESTRIANS ON STREET
- Embargoed: 23rd November 2012 12:00
- Keywords:
- Location: Romania
- Country: Romania
- Topics: Economy,Politics
- Reuters ID: LVAE8U4URLJ8VFXHE5B6CIDFMMMS
- Story Text: Romania's ruling Social Liberal Union (USL) announces plans to increase salaries and improve the conditions of low earners if it wins an election next month.
Romania's ruling Social Liberal Union (USL) aims to increase salaries and improve the conditions of low earners in the EU's second-poorest state if it wins an election next month.
The USL wants to lower employers' social tax contributions by 5 percentage points and raise the minimum wage to 1,200 lei ($340) from the current 700 lei over four years.
"I'm absolutely sure that we can raise the minimum salary in order to obtain a minimum income acceptable within the EU for people working in state institutions as well in the private sector. I'm also sure that labour cost reductions and social welfare contributions, will actually increase the state budget and will promote the creation of new jobs," Romanian Prime Minister Victor Ponta said during the announcement of the governing programme.
The government also plans to replace a flat tax on income with a three-level scheme to protect lower earners.
"Romania has had enough austerity politics, our proposal is to replace this with a fiscal discipline policy, with maximum attention on social support," Ponta said.
The USL, a loose alliance of leftists and liberals that came to power in May after toppling a previous centrist coalition in a no-confidence vote, has poll ratings of around 50 percent ahead of a December 9 parliamentary election.
"The (USL) have a good will, so I will see. I think that I can give my vote to them, if they show me that they are promoting good things. I will carefully read their governing programme," one Bucharest resident, Ion said.
"I've been with the PNL for years, I like them. I would like to think that I'm on the right path, in the end living standards have to be higher for ordinary people," fellow resident Florin added.
"The USL has done everything they could. What more could they do if they receive kicks from Mr. Basescu (Traian Basescu, President of Romania) ... What they can do?" Bucharest resident Anca said referring to an ongoing political battle between the USL and Basescu that resulted in a failed impeachment attempt on the president in the summer.
The upcoming election has heightened uncertainty over policy and how closely a new government would follow the terms of a 5 billion euro aid deal led by the International Monetary Fund, putting additional pressure on the leu currency.
The IMF would need to approve any fiscal changes and it has often said that any tax cuts should come with additional revenue sources to offset the budget gap. - Copyright Holder: REUTERS
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