What the newspapers say: March 31, 2011

Democratic Liberal counter candidates for the highest position in the party decided to announce their candidacies in the same time, on April 12 in an attempt to reveal a civilized competition in the party and not a tough struggle for power. Democrat Liberals received membership fees and donations worth 9 million lei in 2010. The new IMF agreement with Romania enters into effect today. Each year in Bucharest flowers worth 7.5 million euro are selling, in a market controlled by ten families with no VAT reaching the state.

Gandul reads on Thursday about the plans of the Democratic Liberal candidates for the highest position in the party to announce their decision to run by April 12, in the same time in an attempt to show a civilized competition in the party. However, the biggest confusion remains whether Boc will remain Prime Minister or not.

Both candidates, incumbent Emil Boc and Vasile Blaga will announce their intentions to run on April 11th in separate press conferences. The two will submit their motions which include the visions of the two in terms of the future of the Party. The newspaper reads that Boc’s motion is not ready while Blaga has almost finished it.

One of the most discussed ideas in Blaga’s motion was the possibility to change the name of the party in the Democratic Popular Party. Sources told the newspaper that President Basescu advised PM Boc to resign as Prime Minister and thus send a clear message that he does not fear Blaga and is ready to compete without accusations that he might use governmental sources to convince PDL local leaders to vote for him.

Also about the Democratic Liberal Party, Romania libera reveals that in 2010, PDL received revenues from membership fees worth 4,349,937 lei, from donations 4,465,291 lei and from other sources 310,357 lei totaling 9,125,585 lei compared to the 2009 budget of 41 million lei.

Romania libera reads that the new agreement between Romania and the IMF will enter in effect today according to the IMF board approval. The new agreement will continue the fiscal consolidation process and structural reforms started during the previous program to stimulate economic growth and the participation of the private sector in the economy. Reform in Energy and Transports will be conducted with the help of the IMF, World Bank and EU.

Another inefficiency to be addressed is the public spending system that is inefficient at the moment and just 3% of the 19 billion euro of structural funds available for Romania was spent. The 8% inflation in Romania was caused mainly by the VAT increase from 19% to 24% and will have to be monitored and decreased in 2011, IMF Romania chief of mission Jeffrey Franks said, quoted by the newspaper.

In the new agreement, salaries in the budgetary sector might increase once reforms already started are continued. Romania’s representative to the IMF, Mihai Tanasescu declared that for now details related to the program were not set.

Police representatives declared for Romania libera that Bucharest monopolizes 90% of the flower market in the country. However, in Bucharest the industry works on unwritten laws: each has its own place and new comers have entry barriers to overcome. Only 10 families control about 60% of the Bucharest market.

In Bucharest, sales amount to 7.5 million euro each year which means that the state should receive at least 1.8 million euro/year in VAT. But this does not happen due to the fiscal evasion in this sector.