Businesspeople about the decision to cut wages, pensions and unemployment benefits: it's the right one

Businesspeople say the decision to cut wages, pensions and unemployment benefits announced by President Traian Basescu is a good idea. Businessman Dan Sucu, controlling Mobexpert, says the decision of not hiking the flat tax and VAT is good news. What impact will it have over the economy? "Changes at the budgetary level have a more limited impact in the real economy. VAT and flat tax hikes would have dramatically hurt the economy (...)," Crinu Andanut, general manager of Allianz-Tiriac Pensii Private, told ZF. Cristian Fugaciu, general manager of Marsh insurance brokerage, says: "It's better for some and worse for others. (...) A rise in VAT and flat tax would have had an impact over the entire population". A VAT hike would have made all products more expensive. As a result of the recently announced austerity measures, retailers expect consumption to shift to cheaper products, a trend that was also visible in 2009. "(...)These moves are sure to lead to a consumption decline, but lower than in the case of a flat tax and particularly VAT increase," stated Alexandru Vlad, CEO with Selgros Cash & Carry Romania.