Romania’s finance minister Florin Citu claims that the economic stimulus package aimed at mitigating the effects of COVID-19 pandemic measures 3% of GDP (EUR 6.6 billion).

The measures essentially include state guaranteed loans to firms, unemployment benefits paid from the state budget, and the deferral of tax payment - arguably summing up to the figure mentioned by minister Citu.

“Romania has already taken measures that reach 3% of GDP and we have some of the most relaxed conditions in the EU to access these facilities. We will help everyone," the finance minister said, according to Agerpres.

However, “many are disappointed” with the measures included in the final version of the emergency ordinance (OUG 29/2020), PwC partner Daniel Anghel wrote in an op-ed published by Ziarul Financiar daily. Even deferring the deadline for submitting the tax returns on March 25 was abandoned - and replaced with a promise “to treat with understanding” companies that fail to comply with the deadline.

Among the proposals submitted by the investors, but not accepted by the Government, was deducting the very likely losses incurred by companies in the first quarter of the year from the profits reported in the last quarter last year, which would result in a lower overall profit tax (for the last quarter of 2019) to be paid on the spot.

“It is possible that in the future, since the European Commission has suspended the Stability Pact providing that the budget deficits of member states should not exceed 3% of GDP, the Government could come up with other measures to cover the needs of companies," Anghel added on a positive note. 

editor@romania-insider.com

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