The annulment of the VAT growth from 19% to 24% would have blown away all the Romanian Government’s calculations. The state would have been forced to find financing sources somewhere else and the prices would have remained the same.
The economists warn the political environment about the fact that the annulment of the VAT growth decision would have seriously affected the economy without bringing a real benefit. “The discussions with the Fund would have been pointless and budget incomes would have been affected. The state would have been forced to find other financing sources. But where? The first measure was declared non-constitutional, while the other, the VAT growth, could have been refuted through political vote”, declared for Gândul the economic analyst Dragoş Cabat.
He said the annulment of the VAT growth couldn’t have guaranteed the drop of prices to the level prior to June. “One can never be 100% sure, but until now I haven’t heard about prices that grew after a decision like that and then drop back following the annulment”, said Cabat.