Vlad Gheorghe, formerly a member of the reformist opposition party Save Romania Union (USR) and now leader of extra-parliamentary opposition party DREPT, announced on Thursday, July 3, that he has filed a criminal complaint against former prime minister Marcel Ciolacu “for lying about the state of the economy and budget deficit.”
The complaint comes as the current centrist government unveiled tax hikes and spending reforms in an attempt to curb the growing budget deficit and avoid a looming financial crisis. The measures include increases in VAT and excise duties, a new health contribution on pensions, and a doubling of the tax on bank profits.
Marcel Ciolacu’s party, the Social Democrats (PSD), are also part of the new government but denied responsibility for the deficit.
“Romania is in crisis not because of its citizens, but because of the villainy and lies of Marcel Ciolacu and those who supported him at the head of the government. He lied to Parliament and the public regarding the state of the economy and the budget deficit. He squandered billions of euros from the state budget, without transparency and without justification. He blocked reforms and preferred to feed the networks of party clientele interests,” wrote Vlad Gheorghe on Facebook.
Gheorghe argued that according to the law on ministerial responsibility, “it constitutes a criminal offense and is punishable by imprisonment from 1 to 5 years to knowingly present inaccurate data to Parliament or the president of Romania, regarding the activity of the government or a ministry, in order to conceal the commission of acts likely to harm the interests of the state.”
Vlad Gheorghe further claimed that Marcel Ciolacu knowingly presented false data about the budget execution and fiscal sustainability, in order to conceal abusive and irresponsible behavior in spending public funds.
“Just from the budgetary Reserve Fund, Marcel Ciolacu spent over RON 65 billion (EUR 13 billion) at his discretion, without clear criteria, without transparency, without legal control. I want the recovery of the damage, as much as possible, especially from his accomplices who directly benefited from this public money. We want the money back, not for them to sleep peacefully in prison on our dime,” the politician added.
In reply, the former prime minister, Marcel Ciolacu, said that he has stepped out of the limelight convinced that Romania needs new leaders. “Lately, however, I hear more and more harsh accusations and alarmist theories about the so-called ‘economic disaster’ I supposedly left behind in Romania. Some are even filing criminal complaints against me that are beyond ridiculous, not knowing that budget executions are public and anyone can very easily check how public money was spent,” Ciolacu said on Facebook.
In a long post, the former Social Democrat leader said that the fiscal reform measures now being implemented were already agreed upon as part of the National Resilience and Recovery Plan, which right-wing governments negotiated with the European Commission.
“Even with a 3% of GDP deficit, this reform had to be done. There was no way around it. While I was prime minister, I negotiated constantly with the Commission to ensure the fiscal measures weren’t too abrupt and wouldn’t lead to economic recession. No one from the Commission imposed anything specific, the measures were always up to us,” Ciolacu said.
The former prime minister went on to defend progressive taxation, instead of Romania’s currently flat tax rate. He also noted a few achievements, such as 180,000 new jobs created during his tenure, and that the GDP grew 46% in 3 years.
“Yes, we ran a deficit, but 80% of it went into investments: roads, hospitals, schools, water and sewage, infrastructure – in other words, our future,” Ciolacu argued, noting that funds also went to scholarships, pensions, and increased salaries for public workers.
(Photo source: Inquam Photos | Octav Ganea)
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