Romania has no room left for tax cuts, given that the country already has the lowest budget in the European Union, said Radu Craciun, general director of the private pension manager BCR Pensii, within BCR group, cited by local Agerpres.

Although 2017 looks good from a macroeconomic point of view, history has proved that Romania can have record growth figures as well as record recession figures, the economist said at a conference.

Craciun urged the business environment to stop asking for tax cuts because any additional decrease in budget revenues will have a negative impact on the local companies operating costs, on the labor costs, and on the time it takes to transport goods from one place to another.

The main challenge is not to sacrifice the next years, as 2017 represents just a detail of the general picture, Craciun said. He explained that the authorities support the economy through the fiscal policy, which will lead to Romania posting again a record growth in Europe. But the country is also preparing to have “a record deficit in Europe”, he added.

According to Craciun, the international economic context is favorable but the main risks come from the geopolitical changes, which may define the world for the next 50-100 years.

editor@romania-insider.com