BUCHAREST, Romania – Romania's president is criticizing a tax overhaul adopted by the country's left-wing government, saying it has generated instability and uncertainty.
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President Klaus Iohannis said the government's decision to revise the tax code by adopting an emergency ordinance on short notice would hamper investment due to "confused, unstable tax policies."
The changes adopted Wednesday make workers responsible for paying the share of social welfare taxes currently paid by employers. The taxes have until now been jointly paid by workers and their employers.
Trade unions and investor associations are opposing the changes, which will amount to a wage cut for many Romanians. About 1,000 held a protest against them.
Finance Minister Ionut Misa insists that both companies and employees would benefit.
Romania's president represents the country at European Union summits.