6bn - euro firms left to privatise

Over the next few years, the Ministry of Economy

and Trade will privatise most of the 142 companies it still holds, whose share capital totals 5.8bn euros, according to the Economic Pre-Accession

Programme (EPP) put together by the National Forecast Commission. The completion of the privatisations and the increase in taxation are the main medium-term goals of the Government, in view of European integration. The EPP contains the Government”s statement of intent towards the EU regarding taxation and its publication reveals the Cabinet”s intentions even before the adoption

of the new Fiscal Code. “The reform of the fiscal legislation in the near future” will continue “on medium term” by cutting social security contributions, “along with an increase in the taxation of other sources of income so as to match the flat income tax,” the document reads. At the same time, “steps to expand the taxation base” will be promoted. In other words, the level of social security contributions will continue to go down over the next few years, but every other tax will go up to 16%. There is

no mention of a change to VAT, however. ZF