Romania’s new Liberal Prime Minister Ludovic Orban says he wants to cancel a controversial “greed tax” on banking assets and energy companies that sent the stock market tumbling when it was approved by the former government last year.
Orban called the tax “a normative criminal act which creates problems all across the industries” and said he wanted to annul it by the end of the year.
He said his minority government would seek parliamentary backing for the step. Failing that, he said he will resort to a fast-track procedure, but that could risk a no-confidence motion.
The new government says it wants to restore investor confidence that was dented by measures, such as this one. Investors, unions, business, opposition and foreign diplomats criticized the tax when it was introduced in Dec. 2018 saying it created fiscal unpredictability and could deter foreign investment.
The previous Social Democrat-led government later agreed to delay some of the measures after pressure from investors and the central bank.
However, some measures were implemented leading to an increase in energy prices and causing uncertainty among businesses.