IMF turns up heat on Bucharest

At a time when Greece has called on the International Monetary Fund for assistance in servicing its debts, the Washington based organisation is demanding that Romania, which requested support in 2009, make an additional effort "to keep its budget deficit within tolerable limits," reports Adevărul. Leading with the headline "Burning issue!" the daily notes that the IMF, "which no longer has any confidence in promises made by Emil Boc's government, now wants a 4% increase in the single rate for corporation and income tax, as well as a VAT hike of at least 5%." According to Adevărul, "the Romanian people and the business community will have to pay for the government's inability to reduce public spending — a reshuffle is expected soon — and foreign investors will be encouraged to seek out other countries with more business friendly and predictable tax systems."