PM Ponta: Romania should cease to exist for one year just to foot the 2010-2011 bills

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Romania should cease to exist for one year just to foot the country’s 2010-2011 bills, Prime Minister Victor Ponta said at the end of a Government meeting.

„Not even in our worst nightmares did we expect to find so many holes: 300 million euros in the drugs clawback tax; 400 million euros in the car registration tax and 1 billion euro in Hidroelectrica’s bugged. You know well that at the Justice Ministry the accounts are frozen because 500 million euros have to be paid out in final and binding court rulings that the former minister failed to pay out and just fooled the magistrates. I will take each ministry one by one. If we add them together we will see it is Romania’s one-year national budget,” said Ponta.

He added that progressive taxation will be considered when the 2013 national budget is built, after which the Government will discuss with the International Monetary Fund to see if the measure can be introduced on January 1, 2013.

„I do not think it would be a good thing to raise the 16-percent flat income tax. That would be a negative signal. We have to introduce the measure in the national budget when we build it this October and then discuss it with the IMF to see whether the progressive taxation can be introduced on January 1,” said Ponta.

He added that the Government will try to match priorities with possibilities when building the 2013 national budget.

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