A cut in taxes as of 2011 would have an anti-cyclical nature, given that the economy is expected to resume growth by that time. “I believe that the macroeconomic policy mix is rather balanced, and that there is no room left for improvement here. In essence, the state must intervene only anti-cyclically, because the market cycles can vary extensively, and there is no point for the state to amplify these variations,” said the Governor of the National Bank of Romania (BNR), Mugur Isarescu, two months ago.
In turn, the International Monetary Fund (IMF) suggested that taxes be increased in the medium-term. “This is not the time to change the taxation system, but this type of discussion must take place. The future government could initiate such public talks, what system should be adopted, so that the private sector will know what to expect, and the public system will know what to rely on,” said Romania’s representative to the IMF, Mihai Tanasescu.
