A new government has taken office in Romania, promising market-oriented reforms and an end to corruption, in order to accelerate the accession of the former Communist state to the European Union.
“A difficult period will follow, but I am determined to bring prosperity to Romania,” said Prime Minister Calin Tariceanu after the swearing-in ceremony. “I want to see a real market economy that serves the Romanian people, not an oligarchy.”
The first measure is already taken, with the aim of boosting foreign investment and shrinking the black economy. From 1 January 2005, a 16% flat rate of tax will be levied on income, reducing and eliminating rates that range between 18% and 40%. Tax on corporate profits, now at 25%, will be charged at the same flat rate.
“The new government, consisting of representatives from four centrist parties, is the youngest since 1989 and its members have committed themselves towards the necessary reforms for Romania’s entrance into the EU,” says the head of custody at HVB Romania in Bucharest.