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Prime Minister Mihai Tudose – threats and warnings to banks and oil companies: Romantic period has passed

de Razvan Diaconu 14.8.2017

Prime Minister Mihai Tudose has released several strong signals to banks and oil companies. He says that he is willing to take major risks in the scandal with banking institutions that send their profits abroad.

“The romantic period has passed. No one can understand that a banking institution can register losses in consecutive years. On their door, it is written Bank, not Red Cross. Their buildings look pretty good though. Wages are very good. They have also proven a tremendous imagination to send their profits abroad. That does not work anymore. The Minister of Finance had a discussion with them, and I publicly said that we are still patient for a while, but patient to be understood in terms of weeks. Let them rethink their strategy in Romania. (…) It may be appropriate to explain also to those who have the impression that the Romanian state is a naive partner that it is NOT so,” Mihai Tudose said.

Prime Minister also assured on Wednesday night that the increase in excise duties on fuel will not generate an increase in the price of gasoline and diesel fuel and said that, otherwise, the state could “intervene” on the oil royalties.

In 2016, the excise duty has been eliminated and the price has not decreased. Companies have shown that they didn’t even have much profit either. Let’s see what happens if we reintroduce it (the excise duty – editor’s note), will prices grow? I believe they will not grow. Although, that romantic period when they were doing here what they wanted has pretty much ended,” Mihai Tudose told Romania TV, referring to the oil companies.

He also told there is also “the possibility to intervene on royalty fees”.

Of course. That does not mean blackmail, it means that at last we do not have any other kind of dialogue with them, but an official dialogue. (…) We want a strong and friendly state for the honest ones. And just a strong state for the others,” added Tudose.

The Government intends to get 1 billion lei by the end of this year by raising the excise duties on fuel as of September 1. Through a draft amendment to the Tax Code launched for debate by the Ministry of Finance, it is proposed the re-establishment of the 2016 excise rates. The document claims that the current levels of the excise duties in Romania are very close to the minimum threshold provided by the European Union legislation.

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