Pre-election snapshot in Romania | PNL, PSD electoral manifestos propose investments, wage increases, tax cuts

Newsroom 10/10/2016 | 12:30

The Social Democratic Party (PSD) and the National Liberal Party (PNL) have released their electoral manifestoes ahead of the December 11 parliamentary elections. The two political parties propose EUR 24 billion investments in the Romanian economy, the increase of the minimum income to RON 1,400 starting 1 January 2017 and tax cuts for several social categories.

PSD: RON 1,400 minimum wage from 2017 and VAT 18 starting 2018

According to the electoral manifesto published by the PSD, the party proposes a number of measures to be implemented starting next year, as well as a long-term strategy. The party’s proposals include the gradual increase of the minimum wage to RON 1,400 from 2017, to RON 1,510 in 2018, to RON 1,625 from 2019 and to RON 1,750 from 2020 and the exemption of retirees of payments towards the health budget (CASS) starting next year. The program also proposes that the average gross wage increase to RON 3,100 in 2017 and to RON 3,950 in 2020. Other pledges include the exemption of VAT of real estate transactions, the introduction of VAT of 9 percent for advertising and VAT of 18 percent starting 2018.

The PSD program also provides an increase of the pension point to 1,000 starting next year and a gradual increase, up to 1,400 in 2020. The party also proposes the exemption of income tax of those earning wages of RON 2,000 or less, for all doctors regardless of their wages and IT sector workers. Currently, the income tax is 16 percent.

PSD also proposes the exemption of income tax for pensions of RON 2,000 or less starting 1 January 2017, and a cut from 16 to 10 percent for pensions bigger than RON 2,000. In addition, starting March 2017, the program provides for an increase of the minimum guaranteed pension from RON 400 to RON 520 and to RON 640 starting 2018.

Real estate transactions involving amounts smaller than RON 450,000 would be exempt of VAT, according to the PSD electoral manifesto.

PNL: EUR 24 billion investment in Romanian economy between 2017-2020

The electoral manifesto of the National Liberal Party is centered around investments and the relationship between citizens and the state. The party proposes investments of EUR 24 billion In Romania’s economy, as part of the “National Rebuilding of Romania.” To this purpose, the PNL proposes the creation of the Romanian Fund for Urban Rural Development (FRDUR), projected to own assets of EUR 11 billion in four years, to be used for strategic investments to cover the deficit in critical areas. The party also proposes the creation of the Development and Investment Bank of Romania, with an initial capital of EUR 200 million and a role complementary to that of FRDUR. The bank will have a financial portfolio of at least EUR 1 billion.

The party’s pledge include the building of eight regional emergency hospitals in Cluj-Napoca, Iasi, Craiova, Timisoara, Constanta, Targu Mures as well as Bucharest’s Sectors 3 and 6 as well as the creation of a countrywide prevention and education.

PNL’s electoral pledge also includes the increase of salaries of teachers with 20 percent on average starting the second half of 2017. The program also includes the building of kindergartens and creches for 50,000 children, using public and European funds and public-private partnerships.

Georgeta Gheorghe

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