Nicuşor Dan: No increase in VAT on food and energy

Nicuşor Dan, the elected and validated president, stated at the end of last week, after resigning from the position of general mayor of the Capital, that there is no question of eliminating the reduced 9% rate for basic food or increasing the value added tax (VAT) on energy from 5% to 19%. Asked about a possible increase in VAT, Nicuşor Dan admitted that such scenarios are being analyzed theoretically, but warned that any increase in consumption taxes could generate tax evasion and a decrease in consumption.

Nicuşor Dan announced that, this afternoon, after taking the oath of office as president of the country in Parliament, he will convene parliamentary parties for consultations on the formation of the new government, consultations that will start tomorrow and that could last between two and four weeks.

The President indicated that our country is facing an excessive deficit procedure, but tried to temper concerns about a possible loss of European funds. Nicuşor Dan explained that there are clear stages in this procedure, and the greatest risk is not the immediate loss of money, but the negative signal sent to financial markets and investors. In this context, the greatest vulnerability is related to Romania's ability to attract funds from the National Recovery and Resilience Plan (PNRR).

Regarding the reduction of the budget deficit, the President-elect stated that there are areas in which spending can be reduced, but did not provide details before the discussions with political parties. He also mentioned that concrete steps have been taken in this direction, but "there is still work to be done". He specified that Education will become a priority immediately after the formation of the government and the stabilization of the budget are resolved, referring to the report prepared by Minister Daniel David, which he described as an objective and realistic document on the structural problems of the education system.

Regarding the PNDL Anghel Saligny program, a sensitive point for the Social Democratic Party and the National Liberal Party, Nicuşor Dan stated that all conditions will be put on the table for negotiations. He admitted that local and regional investments are necessary, but stressed that they must be carried out at a pace that the state can afford, especially in the context of the very high interest rates at which Romania is currently borrowing.