Iohannis on tax cut policy being kept: Gov't needs to know what to do, explain measures

Asked for a take on national leader of the Social Democratic Party (PSD), major at rule, Liviu Dragnea's statement on maintaining the tax cut policy being kept, President Klaus Iohannis said on Thursday that this issue can be discussed, but the government needs to know what to do and how to motivate the measures.

"This issue can be discussed, but I really believe that the government needs to know what to do and motivate these measures. So, without knowing more details, I do not want to comment on that statement," Iohannis said.

Romania's government will maintain its policy of cutting taxes and raising the minimum wage and state pensions until 2020 in a bid to improve living standards, the leader of the ruling Social Democrats told Reuters on Wednesday.

The government could also make it optional to join a private pension scheme, said Dragnea.

"The need for fiscal relaxation both for the private sector and for employees was acute. And it will continue, we will lower both the number of taxes and their amount," he told Reuters. "We couldn't wait years to make the changes we committed to in our programme," Dragnea said.