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Finance minister Sebastian Vladescu: we discuss a 6.8% deficit with the IMF / we do not discuss the possibility of VAT of 25% and flat tax 10% 

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The budgetary deficit target remains the same as talks with the IMF delegation proceed, Finance minister Sebastian Vladescu declared. UGIR 1903 labor union leader Cezar Coraci declared after talks with the IMF that the budgetary deficit is not negotiable with one exception – if it would involve spending to cofinance European funds.

Nonetheless, the 2010 economic shrinkage might be recalculated to 1.5 – 2% after the recent measures adopted by the government. The effect of the new 24% VAT needs to be analyzed and we will see whether we can talk of a 1.5% or 2% decrease, Vladescu said.

He added that officials are not discussing the possibility to increase VAT to 25% and cut the flat tax to 10%, one of the possibilities mentioned in the press. Vladescu said that they are not talking about a new IMF loan.

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