Generally, all parties have pro-business attitudes and centrist or center-right policy proposals, although they seem to encourage a certain nationalist discourse, doubled by many populistic measures. All parties propose tax reduction or elimination and more favorable conditions for doing business. However, both the two big parties (PSD and PNL) propose “sovereign funds” or “development funds” controlled by the state.

A short list of the measures with economic impact:

pnl

✓ A “Rural and Urban Investment Fund” for 24 billion investment in the Romanian economy and a Development and Investment Bank.
✓ Capping the 16% flat tax and a drop of the VAT to the same level of 16%.
✓ A more flexible Labor Code.
✓ Halving the income tax for those who have three children until the third child is 7 years old.
✓ Doubling of the doctors’ wages starting with July 2016, 20% increase for the nurses, 8 new emergency hospitals.
✓ Prevention programs in healthcare.
✓ Bi-annual update of the medicines list.
✓ 3 free in-vitro inseminations.
✓ 20% annual increase for teachers.
✓ Development of the after-school system.

psd

✓ Minimum wage growing to 1,400 LEI in 2017 and 1,750 LEI in 2020.
✓ Health contributions (CASS) eliminated for pensioners, dropped to 10% for employees in 2018.
✓ Social contributions (CAS) to be reduced to 25% starting with 2018.
✓ Income tax for pensions below 2,000 LEI to be eliminated, dropped to 10% for others.
✓ 18% general VAT, 9% for publicity and zero for house selling.
✓ No income tax for independent liberal activities with incomes below 24,000 LEI
✓ Pension point to be at 1,000 in 2017, 1,400 in 2020.
✓ Elimination of over 100 non-fiscal taxes.
✓ Creation of a Sovereign Fund responsible with Romania’s development.

 

WATCH OUT!

Despite this general pro-business attitude, there is still a danger of populistic and unsustainable measures, as seen in the last months in the Parliament. Even if this danger is expected to lose some power after the elections, some part of it will survive and will prove to be an important factor in Romanian politics.

The economic nationalism, a tougher attitude against multinationals requested from both the conservative-traditional right and the left-leaning NGO environment, the increasing discontent towards companies providing financial services (banks, insurances, lending), all in the context of a rapidly changing communication environment in which problems are discovered, invented or exaggerated quickly, are forces that will affect Romanian politics.

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