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RADOR: News from Romania, 00-01-26
26 January, 2000
CONTENTS
[01] Mugur Isarescu Met Andrew Vorkink
[02] Debates at the Institute of Liberal Studies
[03] Foreign Affairs Minister Petre Roman Is Paying a Visit to the United
States
[04] The Strike in Railroads Ended
[01] Mugur Isarescu Met Andrew Vorkink
Prime minister Mugur Isarescu reviewed with Andrew Vorkink the World Bank's
projects for Romania, and informed the director for Romania in the World
Bank about the current talks between the IMF and the Government in
Bucharest. Andrew Vorkink, quoted by RADIO ROMANIA ACTUALITATI, expressed
his satisfaction with the progress made regarding the PSAL program for
industry, and said the conditions necessary to release the second package
would be met by the end of February. The World Bank representative added
the negotiations regarding PSAL 2 had already begun, and the agreement on
this program would be concluded at the middle of this year. Andrew Vorkink
also said Romania had still to meet oRe of the seven conditions agreed upon
at signing the program ASAL, namely the privatization of the former state-
owned farms, in order to receive the remaining money provided for this
program. Vorkink mentioned the World Bank would like to release at least
part of that package, but a final decision would be taken according to the
results of the current talks between the Romanian Government and the IMF on
the state budget and the tax and salary policies. RADOR
[02] Debates at the Institute of Liberal Studies
"Tax reform and the chances of economic recovery" - this was the topic of
the debates organized by the Institute of Liberal Studies. Justice minister
Valeriu Stoica stressed at the beginning of the debates that tax reform
started this year with the reduction of taxes on profit, the introduction
of a unique added value tax and of the overall tax. He pointed out that the
tax reform aimed at changing the share held by direct and indirect taxes,
in order to create an economic envirRnment favourable to efficiency and
economic recovery. Prime minister Mugur Isarescu, quoted by RADIO ROMANIA
ACTUALITATI, considered the tax reform also included in the governing
program would be beneficial to those dedicated to economic performance and
would help them obtain good profit. Isarescu also said economic recovery
could only be achieved through savings and investments, and tax relaxation
was necessarily preceded and accompanied by competitiveness. Finance
minister Decebal Traian Remes pleaded in favour of the new tax measures,
stressing that the set of laws adopted represented the basis of the state
budget for this year. Andrew Vorkink, director for Romania in the World
Bank, considered tax reform was the corner stone of any future development,
adding that all budget expenses had to be covered at present. In his
opinion, a correct tax system represented the symbol of legislative
stability, and was absolutely necessary to attract investments. Other
participants in the deRates were Stephen Cosse, permanent IMF
representative, Steven Skovmand, first counsellor of the European
Commission Delegation, Ziad Alahdad, head of the World Bank Mission in
Romania, Jean-Pierre Talerda, president of the Foreign Investors Council,
Dan Voiculescu, president of the Romanian Businessmen Association, and
Dumitru Costin, president of the National Trade Unions Block. RADOR
[03] Foreign Affairs Minister Petre Roman Is Paying a Visit to the United
States
On an official visit to the US, Romanian foreign affairs minister Petre
Roman met the secretary of state Madeleine Albright. RADIO ROMANIA
ACTUALITATI informed that the two heads of diplomacies focused on the
strategic partnership between Romania and the United States and on the
OSCE. Both Petre Roman and Madeleine Albright stressed the need to foster
the economic and commercial component of the strategic partnership. The
Romanian foreign affairs minister presented the objective of the Romanian
diplomacy for this yeaR and the preparations in view of taking over the
OSCE presidency in 2001. RADOR
[04] The Strike in Railroads Ended
A Court in Bucharest ruled as illegal the strike called by some of the
railroad employees, RADIO ROMANIA ACTUALITATI informs. Consequently, the
railroad transport resumed on Tuesday evening. RADOR
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