Progress Report on Fiscal Policies August 7 - 16, 2017
One of the main subjects of past week was the Draft Ordinance for amending and supplementing Law No. 227/2015 on the Fiscal Code, which was put up for debate by the Ministry of Public Finances on August 7. Apart from proposed changes of the Fiscal Code, the transfer of social contributions entirely to employees continues to raise concerns. On August 10, the National Union Bloc (BNS) issued a press release demanding the Government to reconsider this proposed change on social contributions.  


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Weekly Policy and Political Report August 7 - 16, 2017
Changes in taxes, be they social and healthcare contributions, child-rearing allowances, or higher excises on fuel passed by a Government that championed the idea of fewer and lower taxes while raising the wages put the ruling coalition in a tight spot. As expected the political opposition targeted the PSD-ALDE Government on account of the Executive passing rather ill-planned fiscal policy.


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Progress Report on Fiscal Policies August 1 – 7, 2017
Matters that have already been discussed by the ruling coalition continue being of high interest and lead to further discussions. Pillar II pension funds, social contributions, or VAT payments (split VAT) were addressed by FinMin Ionuț Mișa, fiscal advisors as well as politicians from the ruling coalition (PSD & ALDE).   On August 1, the Chairman of the Association for Privately Administered Pensions in Romania (APAPR), Iulius Postolache said that Pension Pillar II recovered the decline in total assets of RON 23.28 mln recorded in June due to volatility of shares traded on the Bucharest Stock Exchange. 


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Weekly Policy and Political Report, July 31 - August 7, 2016
As the Government adopted on Friday, August 4, a series of Emergency Ordinances, the ruling coalition (PSD & ALDE) discussed on Monday with Prime Minister Mihai Tudose the details of the upcoming Parliamentary extraordinary session. During the Parliamentary recess, the Government cannot issue Emergency Ordinances, hence the need to have the Parliament in session. On Monday, August 7, Senate Speaker Călin Popescu Tăriceanu (ALDE) announced that the Chamber of Deputies and Senate are to convene in an extraordinary session on Tuesday, August 8. During the Sitting held on August 4, the Government adopted 12 Emergency Ordinances on matters such as European Funds, capping child rearing allowances, fiscal-budgetary measures on healthcare, pensions and wages. During the same Sitting, the Government also had a first reading of the Public-Private Partnership Draft Law. Across the aisle, Save Romania Union (USR) is undergoing internal changes, as the party approaches the referendum on their position on same-sex marriages. On social media, different takes on the issue were presented by different factions: USR Popular and USR Liberal. The two factions indicate an ideological split between conservatism and liberalism within USR, which in the end could very well lead to an actual break within the party and future rearrangements in Parliament. USR’s founder and former president Nicușor Dan is expected to return to USR if the party decides to endorse the constitutional amendment that bans same-sex marriages. Dan left the party after an important part of USR rejected the constitutional amendment. According to Dan, what is at stake is USR’s future either as an “umbrella party”, a solution that he prefers, or as an ideologically charged party focusing on minorities’ issues, prospects that Dan has strongly rejected.


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Weekly Policy and Political Report July 24 – August 1, 2017
The ruling coalition convened on Monday, July 31 to analyze the weekly activity of the Government led by Prime Minister Mihai Tudose. This week’s sitting addressed the matters that made headlines over the past week, namely the extraordinary parliamentary sitting as well as plans to transfer social contributions from employee to employer. In both cases, the Government and the ruling coalition (PSD-ALDE) seem to have different timelines, if not a different approach altogether.


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