Basescu promulgates the 2014 budget following the postponement of the fuel tax

Romania’s President, Traian Basescu, announced he has promulgated the 2014 national budget upon having the Prime Minister’s, Victor Ponta, confirmation that the excise on fuel will not be introduced starting January 1, 2014.

Based on a Government Decision, the new 7 eurocents excise duty on fuel will be postponed for three months, until March 31, 2014, a compromise mutually accepted given that Basescu threatened the Government not to promulgate the budget in case the tax in question will come into force.

The President saluted this outcome and expressed its will to establish a proper cooperation between the Presidency and the Executive – ‘I am glad that the Government made a wise decision eventually, and this sets the premises of a collaboration between the Government and the Presidency for establishing some realistic conditions, favorable to the country’s economic growth in 2014, during the discussion we will have with our partners in January.’, Basescu said at a press conference yesterday.

He also reinforced its position against the excise duty on fuel which he considers unnecessary, affecting the economic development and for which he refused to sign the International Monetary Fund memorandum. Basescu emphasized that his decision has nothing to do with the divergences between him and the Government and he undertook to discuss himself with IMF and EU Commission representatives on the negative impact the excise duty on fuel would have on Romania’s economy: ‘My objective was not related to a confrontation, but to the correction of a mistake arisen during negotiations with the IMF and the European Union. The Government, the IMF and the EU Commission were equally wrong, excessively burdening the diesel fuel and gas consumption with an unnecessary tax. In this respect, when the IMF and EU mission will come in Bucharest in January, I will be the one undertaking the explanation of the mistake of introducing this tax to our external partners, a tax designed to hinder the economic growth and raise prices.’

Basescu concluded saying that he aims to obtain the elimination of this tax during the meeting he will have with the IMF and EU representatives, being positive that such a measure is viable.