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| THE WEEK IN REVIEW 01-07.03.2010 |
| (2010-03-05) |
| Last updated: 2010-03-08 13:12 EET |
Romania’s prime minister Emil Boc called on the National Tax Administration Agency to apply the law equally and not give in to pressure by the companies being verified. Boc believes it is necessary to reanalyse the situation of companies forced to file for bankruptcy but which owe the state money. The finance minister Sebastian Vladescu said he was satisfied with the activity of the institution in charge of fighting tax evasion. In his opinion, tax evasion can be combated through much tougher actions by the National Tax Administration Agency staff in collaboration with the police, the judiciary and the intelligence services. Sebastian Vladescu:
“Romania needs investments. Romania needs to increase its capital expenditure. However, each percentage of the GDP which is lost because of tax evasion means less roads being built, lower pensions, lower benefits and less health care for Romanian citizens.”
According to the head of the National Tax Administration Agency, tax evasion in Romania amounted to 1.36 billion euros in 2009, the equivalent of child benefits for 2 and a half years, or pensions for some 2 million people.
Romania is not a major source of drugs but remains an important transit route, especially for opium, morphine and heroin, according to a report by the US State Department. The authors of the report show that 80% of the drugs that enter Romania come from Afghanistan and are meant for destinations in central and western Europe. The biggest Romanian Black Sea port, Costanta, is one of the main access routes for drugs making their way to Europe. The report also writes that in 2009, corruption remained a serious problem in Romanian institutions, including law enforcement structures. In the opinion of the report’s authors, convictions are difficult to secure and half of the people convicted of drug-related crimes do not carry through their sentences. However, there is no evidence of the involvement of Romanian high ranking officials in the production or distribution of drugs or in the laundering of funds resulting from such activities.
The first Romanian SUV, the Dacia Duster, was launched on Tuesday at the Geneva car show. The Duster is made by the French group Renault and can be bought in Romania for between 10,500 and 15,600 euros, including VAT, depending on the model. The car will be sold in Europe, Turkey and countries in North Africa. In 2009, Dacia sold over 300,000 cars throughout the world, up 20% compared to 2008.
Romania’s President Traian Basescu made an official visit to Kazakhstan on Tuesday and Wednesday to discuss energy cooperation. Bucharest would like Kazakhstan to become involved in projects related to the transportation of natural gas and oil from Central Asia and Europe. The Kazakh leader Nursultan Nazarbayev said Romania is Kazakhstan’s main partner in central and eastern Europe and that his country is ready to collaborate with Romania in different areas such as the economy, tourism and justice. Traian Basescu also met members of the Romanian community in Kazakhstan and said Bucharest would send Romanian language teachers to the ethnic Romanians in Kazakhstan.
The Romanian soldiers deployed in Afghanistan on Thursday received a surprise visit by Romania’s President Traian Basescu and defence minister Gabriel Oprea. The president underlined that the Romanian troops in the country have a difficult mission, namely to protect the civilised world from terrorism. He thanked them for their courage and professionalism in the way in which they carried out their missions alongside their allies. Bucharest has committed 1,035 solders to Afghanistan as part of NATO’s International Security and Assistance Force and operation Enduring Freedom. In January, Romania decided to send another 700 soldiers to Afghanistan in 2010. The president’s visit comes one week after the death of a Romanian soldier following the explosion of a makeshift bomb in southern Afghanistan. 12 Romanian soldiers have been killed in this country since 2003, when Bucharest sent its first troops there.
The governor of the National Bank Mugur Isarescu said Romania’s economy will recover, with the rate of inflation going down. He said the situation had improved as a result of the loan received by Bucharest from the International Monetary Fund and the European Union. The exchange rate of the national currency is now much more stable, and interest rates have halved over the past year. However, Isarescu recommended caution and gave Greece as an example for how the situation of a country can change dramatically when fundamental economic principles are not respected.
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2025-04-03
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