The bone of contention this time is the cumulated amount of local fees and taxes. The opposition Social Liberal Union accused finance minister Gheorghe Ialomitianu of lying when he claimed that it was city and village associations that asked for an increase in local fees and taxes. As a response, the finance minister cited the requests conveyed by the Ministry of Administration and the Interior. The requests refer to the elimination of the maximum increase ceiling, tantamount to 20% per year, and a 20-to-50% raising of the ceiling.

The finance minister said that the executive has rejected the mayors’ request, citing inadequacy. Ialomitianu expressed concern, however, that local authorities might increase taxes by 20% as allowed by the law, a measure which, if applied indiscriminately, will affect the poorest of Romanians. Finance Ministry officials say separate criteria should be applied to the poor and developed areas, in accordance with their respective needs. The concern of the ministry is justified given that 2012 is an electoral year and the population risks not being able to distinguish between a decision of the local council and one of the government, since most fees and taxes are set at a central level.

Local authorities deny having asked for increases in fees and taxes. The opposition is convinced that minister Ialomitianu lied when trying to legitimize the government’s intention to deal another blow to the population. His objective, they believe, is to cover the hole the economic year 2012 will make in the state budget. This would be further proof that the austerity measures promoted by the current power have failed, the opposition believes.

Despite its criticism, minister Gheorghe Ialomitianu was designated “finance minister of the year in Europe” by a prestigious British magazine, for successfully completing a financial assistance program with the IMF.