President Traian Basescu announced on Thursday that he promulgated the law on CAS reduction by 5pp. “I find this the most important subject, not only for today, but a subject that, after becoming a reality, will have a huge impact on Romania, starting with 2015,” said the president.

President Traian Basescu said that “today, those who requested a lower CAS, they will have it, but you should always know what you want.”

Changing the 571/2003 Law on the Tax Code aimed at reducing social security contributions rates paid by employers, accordingly with the working conditions, to the Social Security Fund, as follows: 15.8% (from 20.8%) for normal working conditions, 20.8% (from 25.8%) for particular working conditions and 25.8% (from 30.8%) for special working conditions and other working conditions.

“Politicians who have made this possible, demagogicly and lying, without knowing or without paying attention that there is are resources available for it, and still promoting it… , I’d like to see them next year,” Basescu said, recalling that he returned the law projesct to the Parliament and required the sources for financing the additional deficit to be clearly identified.

According to Basescu, in 2014, “the government has no trouble filling the gap and will it be able to pay pensions without any problem. But for 2015, the pension fund deficit will increase from 12.5 billion lei to 17.5 billion lei, which means an extra effort of five billion lei to the budget”.

The President also pointed out that one of the solutions the government might be forces to adopt will be “most likely, to reduce the CAS cancellation immediately after the presidential election”. The second solution would be more taxes’ increases, the president said.