CCI Covasna president. « The state not only eats a big pizza … »

The management of the Chamber of Commerce and Industry (CCI) Covasna disapproves the austerity measures to reduce the budget deficit taken into account by the central authorities and propose an alternative plan, in four steps, to involve both the state and the business environment.

According to the president of CCI Covasna, Edler Andras, the four steps would be: to rebuild the confidence between the state and the business environment, through transparency and real professional consultations, a concrete proof of solidarity by the reduction of expenses and the abolition of unnecessary institutions, combating the VAT deficiency, estimated to the extension, by the extension of 30%, Temporary taxes, possibly in the form of a transparent solidarity fund.

‘The newly elected president of Romania said that the problem of the state budget comes from the fact that’ for years we have eaten a bigger pizza than we will allow. ‘ The comparison is inspired, but in order to really understand the situation, we need to clarify the roles of the characters involved. Entrepreneurs, in fact, no longer eat pizza for a long time. If we follow the image suggested by the president, then it must be said that the entrepreneurs are the ones who pay the payment note so that the state and its numerous family consume growing and richer slices. And the payment note increases constantly. Today, the state not only eats pizza, but also wants refreshing next to it and, if necessary, also contracts to support its unstoppable appetite. In the last days there have been several scenarios on how the state intends to manage the deficit. Unfortunately, it is still focusing on ensuring the fact that the spending state can maintain its’ Pizza ‘portion to the detriment of entrepreneurs and, in general, taxpayers, instead of entering a’ weight loss’ that will lead to healing ‘, said Edler Andras on Wednesday.

He pointed out that the three successive rounds of restrictive measures applied in recent years have not had the expected effect, and the trust of the entrepreneurs has collapsed. At the same time, it has drawn attention to the risk of accentuating the underground economy and discouraging small businesses in the context of imposing new austerity measures, in non-transparent ‘, in a’ restricted circle ‘, without consulting professionals and representative structures of the economy.

‘In the last three years, three packages of austerity measures have been adopted which, theoretically, aimed for the public and the private sector to contribute to the reduction of the deficit. However, the state, each time, has shown a lack of real solidarity and, instead of saving, began to spend more. The austerity measures did not have the expected effect, the deficit did not decrease, on the contrary: if in 2023 the budget deficit was 6.6%, in 2024 it has already reached 9.3% (…) Unfortunately, again we are in the phase where someone, somewhere, makes some decisions that concern a large mass of people, and so on. And he doesn’t consult with anyone. I mean, five people will decide what the magical solution will be (…) We have this feeling that we are taken by suckers, « said Edler Andras.

In his opinion, the four -step strategy he proposes would have more chances of success, as he meets the expectations of the majority of society.

‘I propose a different approach, which could contribute to restoring the budget balance: rebuilding, which can only be achieved by total transparency and wide professional consultation in relation to budgetary balancing measures, so that those solutions that are bearable for both the public and the private sector (…) may be chosen, and this time, according to this time, To be in solidarity on these efforts to reduce the budget deficit and here, I say, the inventory and immediate abolition of some unnecessary institutions, could be a good start, « said CCI Covasna president.

He added that this is not enough.

‘This step must be followed by a clear, transparent and stage plan to reduce the excessive expenses of the state. In parallel, it should be addressed to combat the huge VAT deficit (…) should seriously analyze the possibility of entering the reverse tax system between companies, if not on a general scale, then at least in certain sectors (…) and step four, increase of budgetary revenues only ultimately. If confidence was rebuilt, and the state has also made a visible effort, we can discuss measures to increase the budget revenues. At that time, it is possible that the business environment and the whole company will be willing to accept a temporary and proportional contribution, or in the form of a temporary increase in the tax rate, or through contributions in a solidarity fund, such as the tax on transactions already discussed (…) because if we start with such an extent, people say that the State says.