Varujan Vosganian: the economy will reach the 2008 level in two years time

If the government increases the VAT tax, it would be like a snowball effect, former Finance minister Varujan Vosganian declared for RFI Romania. The Liberal critiqued the executive’s policies and said that 2009 was a total failure in terms of the attempts of the government to counter the crisis.

He pushed two solutions for the government, namely to stimulate investments and cut costs and taxes alike. Romania needs to march forward forced. Vosganian said that it is not normal to offer facilities for reinvested profits when companies do not really have any profits. However, facilities for those who invest should be a priority in times of crisis.

An economic crisis can help a country resettle and it should not be judged through the lens of the government’s policies. In times of crises, he said, the government should have a partnership with citizens and claim that a decrease in taxes rests in their hands. If voluntary conformity increases from 72 to 90, we can reduce the VAT and the flat tax, Varujan recommended.