Constitutional Court has ruled that VAT increase is constitutional

The Constitutional Court of Romania rejected on Tuesday the AUR’s complaint regarding the “austerity” law, adopted by holding the Executive accountable, according to Digi24 sources.   AUR claims that “it is a toxic, deeply unjust and profoundly unconstitutional law, which represents an abuse of power committed with cynicism and contempt towards Romanians and towards the principles that govern an authentic democracy”.  Thus, the first fiscal package for which the Government has assumed responsibility in Parliament can go to promulgation. The decision was made unanimously. AUR challenged the first legislative package assumed by the Government two weeks ago. This package includes the freezing of pensions and salaries, an increase in VAT from 19% to 21%, and higher excise duties. Some of these measures are set to take effect as early as August 1.   The first no-confidence motion faced by Prime Minister Ilie Bolojan’s Government since taking office was rejected on July 14 by the joint plenary session of Parliament. It recorded 134 votes “in favor” and four “against” out of 138 votes cast. For the motion to pass, 233 “yes” votes were required.   The no-confidence motion was initiated by the Opposition after the Government assumed responsibility in Parliament for the first fiscal package aimed at reducing the budget deficit. The motion was titled “They ruined the country and now they force Romanians to pay the bill – out with the hypocritical Government” and was signed by 131 MPs from AUR, POT, S.O.S. Romania, and unaffiliated members.   The Government assumed responsibility in Parliament on June 7 for the first package of fiscal measures. Two days later, AUR announced the submission of a no-confidence motion, claiming that the Government “usurped legitimate power and mocked the Romanian people’s will for representation,” and therefore “must disappear along with its lying, toxic propaganda machine.” (Photo:https://www.facebook.com/)