The President of the Supervisory Board of the Romanian Counter-Guarantee Fund, Cristian Sokol, announced in a post on his Facebook page that he will sue those who associate his name with some controversial amendments to the law on new tax measures, News reports. ro.

“I didn’t want to write here anymore, but after seeing today’s fake news, I have to. I will sue any person/government agency that associates my name with measures like pv P2 amendment or corporate taxation. I am absolutely not involved in these proposals,” Kristial Sokol wrote on his Facebook page.

We will remind you that the press has repeatedly written about the fact that Christian Sokol, Leonard Badea and Liviu Voinea are behind the PSD program.

(Kristian Sokol-n.red) was – and he bragged about it all the time – the mastermind of the fiscal policy of Victor Ponta (yes, the one who instantly imposed a tax on the economy), Liviu Dragnia and other PSD prime ministers.

His economic vision is simple and not much different from the economic model adopted in the last years of Fidel Castro’s rule in Cuba: wage growth – that is, according to any understanding, the state borrows and throws borrowed money into the economy for consumption, consumption that provides growth. The problem with this model is that it only works partially if you consume from domestic production + its limit: you cannot scatter money indefinitely, writes CdG.

And in the case of a budget crisis caused by wage growth itself, you end up in a business environment where everything that moves and pays is cut off.

Lucian Kroitoru, adviser to the governor of the BNR, recently wrote about the theory of wages.

“Our ruling elite has now met with the old elite of the 1990s on social justice, but has broken with them on the essential role of the market. Struggling with the ruling elite, opportunists have always existed. In the 1990s, they praised the market economy. Today they blame her. Here we are at this stage. The discourse of today’s ruling elite is influenced by a perspective according to which social justice, that is, the desire to introduce more economic equality (reduce economic inequality to near-total disappearance), must be achieved by increasing redistribution, a redistribution that previous approaches acquired à contrecoeur with Clinton. – During Blair’s era, she was sometimes criticized.

Perhaps the ruling elite would not have a problem with this current approach if they were not in the difficult position of being put in by some politicians who either don’t understand any of this or have ulterior motives for justice, have created certain policies that they pompously and erroneously labeled as “wage growth.” Theoretically, this designation indicates that the acceleration of economic growth can occur at the expense of higher wages in the private sector. Although the theory is more than questionable (see the study by Cezar Botel entitled “Wage-led-growth. A review of theory, evidence and criticism”, published in 2019 in the “occasional publications” section of the BNR website), you, our economists , you have also rigged it and implemented public sector wage increases at the same time as tax cuts. This was enough, as many intelligent economists noted at the time, to make it “necessary” to raise taxes in the future to remedy the double mistake of raising wages at abnormally high rates while simultaneously lowering taxes.”