In the middle of its search for fiscal revenues to fill its deficit, the center-left Romanian government is looking for solutions to combat illegal labor, which recent estimates say robs the State of nearly €4.5 billion per annum. This is an endemic phenomenon in this country, considered as the second poorest in the European Union, so Bucharest is multiplying controls and also intends to cut labor cost. (Ref. 130676)
23 percent of all Romanian employees, i.e. 1.45 million people, are not declared. Illegal labor, a plague for the country, allegedly accounts for 3.24 percent of GDP, i.e. nearly €4.5 billion a year, according to a recent survey by the Fiscal Council – an independent institution in charge of assessing the government’ macroeconomic policies and recommend major guidelines to adopt. It should be said that, while Romania has one of the lowest taxation rates in Europe, labor cost is among the high
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