New government to keep flat tax and VAT as they are

The new PD-L-PSD government will keep the 16% flat tax and the value added tax at 19%, while the tax on reinvested income will be zero, as shown by the governing programme draft. According to the document, the public deficit taken into account for 2009 will stand at 2%. The future government will be subject to Parliament’s vote on December 22, as stated by the political leaders who will form the ruling majority. The two parties that will make the future government, PD-L (Democrat-Liberal Party) and PSD (Social Democrat Party) were due to present last night the governing political programme entitled “The Partnership for Romania”, a 25-point document representing a synthesis of the two parties’ programmes, according to Social-Democrat leader Mircea Geoana. According to PD-L leader Emil Boc, when drafting the document, the leaders had in mind providing a governmental stability climate, a strong government for Romania, supported by a Parliamentary majority. The goals mentioned in the document include retaining existing jobs, purchasing power, further moves for an independent justice and maintaining the flat tax and protecting those with low incomes. According to Boc, after the signing of the partnership and in the presence of premier Theodor Stolojan, the two parties will start talks on the structure of the government and distribution of minister portfolios.