Poul Thomsen voiced concern over the major tax relaxation policy imprudently promoted in 2015

Director of the IMF's European Department Poul Thomsen voiced in his Friday's meeting with National Liberal Party (PNL) First Deputy Chairman Catalin Predoiu concern over the major tax relaxation policy imprudently promoted in 2015, but praised Romania's economic progress of Romania, informs a PNL release.Catalin Predoiu has been mandated by the PNL co-chairs to have a meeting with Director of the IMF's European Department Poul Thomsen to discuss the economic situation of Romania, according to the cited source. "The IMF representative praised Romania's economic progress in the last 25 years, but at the same time, voiced concern over the major tax relaxation policy imprudently promoted in 2015," considering that this is a step back from a prudent fiscal policy, the PNL informs. Poul Thomsen said that Romania should use these good years to deepen structural reforms and to consolidate itself fiscally in event of less good economic years, so that it does not have to take tougher measures in the difficult economic years that may arise in the future, reads the PNL release. Predoiu pointed out that the governing programme of the PNL provided for a fiscal policy based on macro-budgetary balance and the prevalence of structural reforms - state-run companies, energy sector, infrastructure, entrepreneurship - so that to create prerequisites for economic growth in the future. The PNL has chosen the path of a responsible attitude both in Opposition, as well as in the future Government, and, in this sense, it will promote economic growth policies based on investment and job creation, the release mentions. The Director of the IMF 's European Department Poul Thomsen was on Friday in Bucharest as part of his regular visits to the countries in the region, announced the IMF Resident Representative for Romania and Bulgaria, Guillermo Tolosa. The official also met President Klaus Iohannis, Prime Minister Dacian Ciolos and also Social Democrat Party (PSD) representatives. Romanian President Klaus Iohannis met the International Monetary Fund's European Department Director Poul Mathias Thomsen at the presidential Cotroceni Palace on Friday, with the need to continue the economic reforms being underscored during the talks. According to a release of the Presidential Administration, the two officials discussed the positive prospects of the Romanian economy as well as a range of developments at European level. Also highlighted was the need to continue the economic reforms, particularly with respect to corporate governance and the quality of the administrative act, amid fiscal-budgetary and financial predictability, the release added. The meeting also offered an opportunity to reaffirm the importance of beefing up the confidence of the economic circles and the foreign partners in the Government's policies, the President's Office said. According to a press statement, during the meeting with Liviu Dragna, the social-democrat leader, PSD expressed as priorities both large investment, in infrastructure, and the local one, which raises the degree of civilisation of the citizens, mostly in the case of those living in the rural area, who are lagging behind. "We shall watch closely to what extent the current Government will continue the mechanism of European funds absorption, which we have built, and which determined a substantial increase in the absorption level," Dragnea said. He underscored that he is involved in shaping up a programme for Romania's development in the long term. It would consist of supporting some concrete projects on several axes, among which education, healthcare, agriculture, infrastructure are the most important. "Poul Thomsen praised the endeavours and priorities of the PSD chairman and said that Romania is at a good moment, in terms of economy, even if tax relaxation measures have been taken, at the same time with approving some social measures, for instance pay increase. He pointed out that the Government and Parliament also have a responsibility for the future, so that their common approach is a good thing, in order to prevent certain fiscal syncope. This desideratum could be achieved, according to Thomsen, through balanced spending, an increase in revenues, a deficit not exceeding 3 percent of the GDP," reads the PSD statement.