Dutch Minister Wouter Bos: Narrowing budget deficit through higher taxes is not the way

“The rules are clear. All countries have accepted the medium-term objectives of the Growth and Stability Pact, which clearly stipulates how rapidly they must narrow budget deficits. Raising taxes is one method, but reducing budget spending is a much more efficient solution from an economic point of view,” Bos told the Brussels Forum, organized by the German Marshall Fund.

In reference to Romania’s monetary policy, Bos, former Shell Romania Manager from 1992-1993, said that “countries who are slower in this process were warned by the European Commission in recent weeks. We hope they will accelerate structural reforms to comply with the original plan.”

At the end of January, European Commissioner for Economic and Monetary Affairs, Joaquin Almunia, said that he was concerned by Romania’s wider budget deficit, of 2.9 percent, in spite of strong 6 percent economic growth. (NewsIn)