The gloomy predictions of the economist Andrei Caramitru: “You can vote for whoever you want, taxes will rise”

Andrei Caramitru, a renowned economist and financial consultant, issued a clear warning in an interview, stressing the inevitability of tax increases in Romania.

“VAT will increase clearly, this is the simplest, with 2 percentage points (n.ed. from 19% to 21%), they will add some taxes here and there, and freeze all costs“, said Caramitru for Hot news.roemphasizing that fiscal measures are already predictable in the current context.

Caramitru, founder and CEO of Kessel Run Ventures, has had an impressive career, previously holding senior positions at leading consulting firms such as Boston Consulting Group and McKinsey & Company, and was an economic advisor to former USR director Dan Barna . His views on taxation are influenced by extensive experience in the financial field and sound knowledge of economic policies.

The Economist criticized the talk of politicians who deny the possibility of an increase in taxes, saying “all the politicians say no tax will go up. I understand that you are campaigning and I appreciate it, but it is quite obvious that they are going to raise taxes“.

Caramitru says that whoever is elected, taxes must be changed, asking rhetorically: “The question is who pays? Will small businesses and poor people pay more? Or instead of the rich and the big companies? “.

Caramitru also highlighted the current differences in the Romanian tax system, saying “In some areas, the fees are very lowand”. For example, he gave a concrete example of property tax, saying: “If you had a 200,000 euro apartment, you would have to pay 200 euros per month in another country. With us it is 100 lei“.

This shows the big differences between tax rates in Romania and rates in other European countries.

In addition, Caramitru proposed other sources of income for the state budget, including taxes on inheritances and dividends. Currently, heirs have a two-year grace period to pay 1% inheritance tax, and the dividend tax, although discussed for an increase from 8% to 10% this summer, has been dropped by the Government . In addition, the current corporate tax rate is 16%.

Another important aspect Caramitru mentioned is the complex relationship between political parties and the budget sector. He believes that the parties really represent the interests of budget holders and pensioners, saying “there is no party that does not have someone’s representative at the State. Including USR, whose leaders work for the state. If you take them out of the parties, they will starve“. This shows that the parties are very dependent on the support of the state apparatus, which complicates the implementation of the necessary economic reforms.

To reduce costs, Romania should adopt Public-Private Partnership models

“All of Europe is done on PPP, all infrastructure in Europe. It’s something so simple, it’s not science fiction. We cannot write a contract, this is what we are talking about. “he explained, showing a lack of skills in managing these projects.

Referring to the energy sector, Caramitru criticized the investment proposal of the OMV company in Romania, suggesting that Romania should cooperate with stronger and more stable companies. “The idea is good, but not with OMV. We are talking about OMV, as if Microsoft, Apple or EXXON were coming”he said, pointing out that the OMV group has financial problems.

For example, he compared the market value of Hidroelectrica, estimated at more than 12 billion euros, with the value of OMV, around 11.9 billion euros, thus highlighting the growth potential of Romanian companies compared to foreign investors.

Caramitru proposed the consolidation of state companies in the energy sector, suggesting the creation of a powerful conglomerate to compete with the big international players: “I would create a big company everything that would compete with the big companies. You have Hidroelectrica, which is majority owned by the state, you have Romgaz, which is majority owned by the state, and you also have a large percentage in Petrom. You put those three together… It was worth 30 billion euros on the stock market”.

In conclusion, Andrei Caramitru describes a complex picture of the Romanian economy, underlining the need for fiscal reforms and restructuring in the public sector, to allow the economy to develop and in relation to international standards.

Cu an expanding economy and as a society in search of sustainable solutions, its vision can provide important guidance for Romania’s future development.