Progress Report on Fiscal Policies, September 12-19, 2016
On Monday, September 19, Prime Minister Dacian Cioloș came before Parliament to present a report on the state of Romanian economy after being summoned by Social Democrats' leader Liviu Dragnea. Cioloș highlighted that the current Cabinet is not planning on raising or modifying indemnities. More so, possible amendments to the Tax Code are designed to simplify taxation legislation and procedures. Cioloș dismissed political allegations according to which his Cabinet is planning to raise taxes, reminding politicians that his team has recently lowered VAT for agricultural inputs. When it comes to farmers, the former EU Commissioner for Agriculture announced that his plans include "changes in the sense of simplifying the Tax Code, by proposing a special VAT regime for small farmers."


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Weekly Policy and Political Report September 12-19, 2016
Last week, September 12, President Klaus Iohannis addressed the issue of the future Government, insisting upon the fact that the current technocratic government will be replaced by a political Cabinet. As for Dacian Cioloș’ chances of staying in office for a new term, Iohannis explained that “it would not be wrong”. His statement adds up to the uncertainty surrounding the current cabinet’s plans of running for a second term, leaving the possibility of the current cabinet to join a political party open. It remains to be seen whether Cioloș or his current cabinet are going to join a party, especially in the context in which Cioloș warned that whoever wants to run in the general elections must resign from the Government first.


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Weekly Policy and Political Report, September 5-12
The middle of September brought fiscal matters in the forefront of pre-electoral political agendas. Debates over Government’s plan of amending the Fiscal Code, including the scandal of the draft bill assumed by former Secretary of State Gabriel Biriș, prompted reactions from both PNL and PSD. While the National Liberals recommended PM Dacian Cioloș to avoid modifying fiscal legislation, the Social Democrats, through the voice of Liviu Dragnea, straightforwardly challenged the legitimacy of the technocratic government on such matters. Thus, the past week has witnessed the establishment of a political consensus over the limitations of having a non-elected Government. The main political parties, as well as President Iohannis confirmed the fact that the next government would be a political one. The other aspect the two main political parties agreed upon is the impossibility of a PSD-PNL government.   


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Progress Report on Fiscal Policies, September 5-12, 2016
Three months before the elections, economic and fiscal matters have a growing tendency to become matters of dispute for political players, causing the discussions on taxation to be politicized. Over the past week, PSD's Liviu Dragnea challenged theGovernment's legitimacy over modifying the Fiscal Code. Dragnea's statement came as a reaction to the leaked draft bill amending nearly half of the articles of the Fiscal Code. MFP’s Gabriel Biriș took responsibility for the ‘paternity’ of the draft bill, while Finance Minister Anca Dragu denied any knowledge of such draft. Biriș filed his resignation from the position of Secretary of State shortly after the scandal broke, yet he stated that FinMin Anca Dragu knew about the existence of his project.   


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Weekly Policy and Political Report August 29 - September 5, 2016
With the Government having set the date for the general elections for December 11, MPs have two more months to pass pressing bills in the two Chambers of Parliament before they go on recess once again. As the activity in Parliament comes to a halt during the electoral campaign, the MPs will leave office on November 11. There is a high change that important draft bills are not passed during this two-month period or before January 2017, when MPs are bound to resume their activity, after the winter recess.


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