Approved by the Romanian Parliament last week, the 2016 budget plans to freeze the gross minimum wage, currently 235 euros. An increase of 34 euros had been promised, however, by the previous government, which resigned in October. Since 2010 the minimum wage in Romania has almost doubled.
Dacian Cioloș’ technocrat government, which assumed office in October, has decided to repeal the minimum wage increase, which was planned for 1 January 2016 by the centre-left predecessor Victor Ponta. “It is no use saying that we want to stimulate the economy with such a generous fiscal measure, if it then destroys the business sector”, Finance Minister Anca Dragy stated, in justification. She says that maintaining such a rise would risk increasing tax evasion, a phenomenon which already costs
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