| Abstrakt: |
Provided that it fulfills most elements of the supplementary memorandum of economic policies agreed with the IMF, the government should complete the stand-by agreement in October. The renewed impetus given to the privatisation process, including the completion of the first stage of the Banca Comerciala Romana (BCR) privatisation, the submission of bids for Petrom and the sale of several troubled state enterprises, means that the main problem areas are overly rapid wage growth and slow progress in reducing energy sector losses. The consolidated budget deficit is on target, but a second budget revision will probably be necessary in November. Controversy over the introduction of a flat-rate income tax is delaying the finalisation of the 2004 budget law. INSET: The shadow economy in eastern Europe. [ABSTRACT FROM AUTHOR] |
