President Traian Basescu warned Tuesday that Romania is likely to fall back into the economic recess on account of the lack of tax predictability, giving the example of taxes introduction which have disrupted the business environment, Mediafax reports.
"I've seen this year, a number of taxes being introduced that have simply disrupted the business. Such a barrier makes investors take a step back and the foreign direct investments decline this year is a test , for the first seven months a decrease of 13.8% in foreign direct investments was registered.
If we add the fact that the Government itself, in a policy of stimulating consumption, used 30% less money for investment from the state budget, directing it to social assistance, we realize that in this way, Romania is likely to re-enter a time of economic crisis, " Basescu said at the Forbes Forum on " Sustainable economic recovery in emerging markets. "
The President believes it is important that in 2015 investors should be conveyed a signal directly related to taxation predictability in Romania.
Basescu said that he examined the various ways to overcome the crisis by the EU states like Greece, Spain, Portugal, Italy, France, and noted that those reform processes based on delays and small steps have been unsuccessful.
"Those countries which have prolonged the moment of severe measures taken to restore the macroeconomic balances remain in crisis, they could not revive their economies and did not solve the debt problem and now they are asking for derogations from the European Commission on Fiscal Treaty of the Maastricht criteria, " the president said, adding that these countries cannot revive their economy, and by the postponements required they do nothing by aggravate the situation on the medium term.
Traian Băsescu stated that "there is also the alternative of non-compliance, because there are politicians who say that the Tax Treaty should not be observed and the obligations that we have undertaken in relation to the EC should be renegotiated", but this "means delays in fiscal consolidation and a high risk. "
Basescu said that Romania has a "risk area which is owned by the state."
According to the president, a barrier than can be removed because "it lies in the hands of the Government" is education, " the education system is hardly profiled on Romanian economy, it does not provide the economy with the qualifications needed, making life difficult for investors because they have to put the workforce on training courses ".