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Bucharest: set of fiscal measures aimed at slashing budget deficit

Prime Minister Calin Popescu-Tariceanu announced on 8 February, after talks in Bucharest with the International Monetary Fund's chief negotiator for Romania, Emanuel van der Mensbrugghe, that his cabinet would introduce a set of fiscal measures aimed at curbing inflation and slashing the budget deficit. The measures are intended to cover losses to the state budget expected as a result of the 16 percent flat tax introduced on 1 January. Popescu-Tariceanu and Deputy Prime Minister Adriean Videanu also said these steps were needed since the previous Social Democratic cabinet failed to abide by the reform calendar and overspent recklessly ahead of the November elections.

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