Romanian MPs will review the new Fiscal Code project in an extraordinary Parliamentary session on August 24-26, said Liviu Dragnea, interim president of the Social Democrat Party (PSD). The Romanian Parliament is on recess for the summer holiday from June until September.

The Finance Minister will take into account President Klaus Iohannis’ reexamination request and will make a new analysis, together with the Central Bank on the project’s sustainability, Dragnea added.

President Klaus Iohannis sent the draft back to the Parliament for re-examination, arguing that the new Fiscal Code could prevent Romania from respecting its assumed deficit target of 1.2% of the GDP for the next year.

On Friday last week, Central bank governor Mugur Isarescu said that the new Fiscal Code almost impossible to apply. He added that President Klaus Iohannis did well to send the code back to the Parliament for review. He also said that the Fiscal Code lacked measure and that Romania didn’t have the capacity to manage a 6% to 8% economic growth that would result from the fiscal relaxation measures proposed by the code.

Prime Minister Victor Ponta reacted on Monday saying that no one stood against the Fiscal Code while it was on public debate and that he wished that those who turned against the code had spoken earlier.

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editor@romania-insider.com