Prime Minister Emil Boc (in picture) announced ten government objectives for 2012. Romania's PM said government planned the maintenance of flat tax, further major investments and the continuation of several programs, in Monday's plenary meeting of Parliament. "The fundamental objectives of the state budget are to support investments, jobs, strengthen health and business departments. We proposed 10 measures to achieve this," he explained.

The Government intends to maintain a flat 16 percent tax, increase investments to RON 38 billion ( around EUR 8.7 billion ), continue and support important investments, which will be finalized in the coming years, such as investment in highways.

Boc also announced that the government is considering privatization of state companies, "because the state companies remain unreformed." He also promised tax simplification and reduced VAT rates – 5 percent for social construction and 9 percent for medicines, school books and other cultural services.

Other objectives for 2012 include the allocation of RON 10 billion (around EUR 2.3 billion) to the MFP budget state guarantee instrument, the continuation of programs with proven efficacy, such as the First Home program, the jalopy program, Green Home program. The government also aims to absorb RON 6 billion (around EUR 1.3billion) in European Funds.

Alex Camburu, alex.camburu@romania-insider.com
(photo source: Gov.ro)