Prime Minister Marcel Cholaku on Monday compared Finance Minister Marcel Bolos to a voodoo doll amid the pension scandal, stressing that he will not spare him because he knows what scared him, the loss of European money, but that there is a need to increase pensions . “If you think that we should continue with the average pension for October 1980 lei, I inform you that it is no longer possible. This is inhuman,” said Cholaku.

Attending a summit of local authorities in Romania, the prime minister again touched on the issue of pension money and fiscal measures to avoid wasting European money.

• “Marcel Bolosh eventually succeeded and wanted it to take over my face and become a kind of voodoo doll that he had to stab himself in every day. I will never hit Marcel Bolosh. I will never forget what Marcel Bolosh did at MIPE.
• I know what scared Marcel Bolos as finance minister. Marcel Bolosh saw the danger of a complete blockade of Romania, the danger of losing more than 70 billion euros of European money.” This was announced by Prime Minister Marcel Cholaku on Monday.

Cholaku: It is inhumane to continue to have an average pension for October 1980 lei / We must propose a fiscal reform in 2025-2026

Speaking about the debate on money for the new pension law, Çolaku emphasized that the pension increase should be implemented, but acknowledged that fiscal reform is needed in 2025 and 2026.

• “When we talk about PNRR, we should not talk about money in the first place, but about the reforms that are in PNRR, this was a real danger.
• I know that these fiscal measures have been taken, there has been a heated debate recently about the pension law, whether it is sustainable this year, next year, in the years to come.
• If you believe that we should extend the average pension for the month of October of 1980 lei, I inform you that this is no longer possible. It is inhumane.
• We have the lowest poverty line in Europe.
• We really need to find sustainability, we need to propose fiscal reform in the coming years, predictable, in 2025, 2026 fair, we need to propose reforms both at the central and local level.” The old man said.

Administrative reform is needed, but it will not be implemented in 2024

The Prime Minister also emphasized the need for administrative reform, but says that consultations are needed on this matter.

• “Administrative reform should also be done. It won’t really be realized in 2024, but it has to start with you.
• It is easiest for us politicians to come up with a law and say: “Sir, there are no communes with 2,000 inhabitants!”. This approach is very wrong. It is not necessarily mathematics, for administrative reform we need a plan that we can develop through consultation and not keep inventing hot water.” said the Prime Minister.

Čolaku: Romania has problems with the deficit and prioritization of spending / No one has come to nationalize anything

Marcel Čolaku appealed to the local authorities to make efforts to maintain a balance between income and expenditure.

• “We did not take fiscal measures at the end of the year. This resolution with fiscal measures is valid until December 31. My job is to budget this year so you can build your new projects from February.
• No one will withdraw money from the accounts of the local administration. There are no money problems in Romania. Romania does not have a macroeconomic problem, but a problem with deficits and spending priorities.
• Too much has been spent on all sides trying to cover everything, and we have forgotten one essential thing – by December 31, 2023, we will finish the 2016-2020 fiscal year. This is a priority of the central and local administration and of Romania. I don’t think we need to go back to talking about the 52-54% absorption, I think, in the last exercise, but the absorption from the 9 ahead.
• In the order, we came up with a modification and made a buffer of 250 million, and we will continue to use this mechanism so that you can cover all the adjustments related to the increase in the price of materials and have 15% co-financing. it is guaranteed, but it requires effort on your part as well, because it is difficult to maintain a balance between income and expenses.
• No one asked for anything anymore, no one came with some catastrophe to take your money from your accounts, to nationalize something. These moments of history have passed,” said Cholaku.

The Prime Minister said that today there will be a meeting of the coalition related to the state budget and assured that the costs related to the Anghel Saligny program and investments through the CNI will be covered this year.

Speaking about the reorganization of the ministries, Cholaku said that he wants each ministry to have a unique approval service, both for the approvals requested by the local administration and for the approvals required by the population for these projects.

The finance minister has warned that taxes will increase from 2025 if the new pension law comes into force from 2025.

The Ministry of Finance under the leadership of Marcel Bolosh warns in a positive opinion on the pension law adopted by the government on Thursday that “the additional impact caused by the entry into force of the new pension law, the inclusion in the trajectory of the adjustment of the budget deficit is no longer possible, as additional measures are needed to increase revenues, respectively, increasing taxation of the business environment and the population”.

The Ministry of Finance forecasts a deficit of 6.1% for next year, if the new pension law comes into force

Expenditure limits for 2024, which the Government proposes to approve, do not take into account the additional effect of the application of the new pension law, since, according to the Ministry of Finance, it has not been adopted.

• “Taking into account the additional impact of the entry into force of the new pension law, it is no longer possible to fit into the trajectory of adjusting the budget deficit, as additional measures are needed to increase revenues, respectively, an increase in taxation of the business environment and the population, which will bring a budgetary impact of at least 33 billion lei, respectively, the minimum budget impact on 1.8% of GDP starting in 2025.
• Also, starting from 2024, the consequence of not being included in the budget deficit adjustment trajectory leads to the risk of suspension of funds, which can no longer be avoided, and in accordance with the provisions of Art. 10 of Regulation 241/2020 regarding the recovery and stability mechanism and Art. 19 of Regulation 1060/2021 on cohesion policy, the Commission proposes to the Council to fully or partially suspend the implementation of commitments if it finds that a Member State has not taken effective measures to correct an excessive budget deficit.”, This is stated in the conclusion of the Ministry of Finance, which was contacted by HotNews.ro.

The Ministry of Finance has sent the Government a 36-page document with comments and informs that it approves this draft law, provided that the following measures are taken:

• 1. Adoption by the Government of Romania of a legislative package to increase state budget revenues, starting from 2025, which will provide a minimum additional level of 1.8% of GDP, respectively, the minimum equivalent of the amount of 33. mid-lei in combination with the implementation of stages 206 and 207 of the PNRR regarding micro-enterprises and fiscal reform;
• 2. The assumptions of the Government of Romania regarding exceeding the budget deficit target and the possible consequences associated with exceeding the budget deficit target are estimated as follows: – Budget deficit 2024: -5.5% of GDP; – Budget deficit in 2025: -6.1% of GDP; – Budget deficit in 2026: -5.4% of GDP; – Budget deficit in 2027: -4.7% of GDP;
• 3. In the event that, after the new Pension Law enters into force, the deterioration of the budget deficit changes will be determined from the evolution of the budget implementation, the possibility of gradual/staged application of pension increases caused by their recalculation will be analyzed.
• 4. Adoption of a legislative package to strengthen the institutional capacity of ANAF, AVR and MF, including measures to digitize the public finance system;
• 5. Adoption of an additional legislative package on combating tax evasion (including acceleration of recovery of losses from economic and financial crimes);
• 6. Continuation of measures to reduce public expenditures and effective use of funds allocated to finance public services. Without the adoption of these measures proposed in paragraphs 1-6, the conclusion to the Law can only be negative, since “The impact on the budget is unbearable for the Romanian state”. – says the conclusion of the ministry headed by Marcel Bolosh.

Minister of Labor: The law is alive

Labor Minister Simona Bukura Oprescu said in the cabinet on Thursday that the law will be sustainable and clarified that the Ministry of Labour, Finance and European Funds had a “constant dialogue” with the World Bank and the European Commission.

“We all had all the numbers at our disposal. It is clear that we must make a joint effort because Romanians need this project,” she said, pointing to the Ministry of Finance, which must find a solution.

• “It is very important that the Government finds all these solutions together, and the first to find them, and I am sure they will, is the Ministry of Finance. Better collection, less tax evasion, no doubt, and wisdom among us working together in government are the elements that will make us respect the rights of the Romanians, for which they have worked all their lives.” said Minister Simona Bukura Oprescu.

Regarding the source of funding, Bukura Oprescu says that the money will come from the social insurance budget and the state budget. This ruled out a possible phased or phased increase in pensions in 2024. “Excluded. In September, we will fully apply the law,” said the minister, insisting that “we have made a stable and sustainable law.”

• Read the details: The Ministry of Finance warns that taxes will increase from 2025 if the new pension law enters into force from the year / The project was adopted by the government / Ministry of Labor: The law is sustainable