VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
The main theme of both addresses was social problems. Specific issues discussed included: ensuring that the government follows through on the social liabilities it has taken on; making the elites responsible for the nation's well-being and social stability; a number of other measures put forward by the party's chief, ranging from raising unemployment benefits and guaranteeing timely salaries to state-paid employees to suspending advance payment of income tax and a sharp increase in tax refunds for apartments worth up to 2 million roubles. These measures concern state-paid employees, the middle class, and SMBs.
The Russian government will cut the profit tax from 24% to 20% in 2009, saving companies around 400 billion roubles, as part of the anti-crisis package of proposals, Prime Minister Vladimir Putin said at a meeting of the United Russia party. In addition, businesses will save another 100 billion roubles due to the increased profit tax amortization premium. First Deputy Prime Minister Igor Shuvalov said the changes would compensate businesses for more than half of the rise in social payments planned for 2010. And, more to the point, the profit tax breaks will only help if companies post profits in 2009.
Prime Minister Vladimir Putin acknowledged for the first time on Thursday that the Russian Government's handling of the economic crisis was for the most part a reaction to force majeure. The Government does not plan any essential changes in the country's economic development strategy, he said. On the contrary, he considers the Government's earlier economic policy to be a major factor in helping Russia's economy weather the crisis and preserve its potential for a better tomorrow.
The spectre of the economic crisis hovered over the 10th Congress of United Russia
The 10th Congress of United Russia (UR) was held at Gostiny Dvor on Thursday. For the first time, it was conducted by Vladimir Putin, the Prime Minister who doubles as the Party's Chairman. The focal topic of all the speeches was how to protect the Russian economy against the world financial crisis. Mr Putin, President Dmitry Medvedev and United Russia Supreme Council Chairman Boris Gryzlov all spoke about it. They promised tax cuts to enterprises, financial aid to banks, and increased social benefits and tax breaks for citizens. Mr Putin did not formally join United Russia, in spite of rumours ahead of the Congress that a party card had been prepared for him.
The Prime Minister and Chairman of the United Russia party yesterday addressed the party's 10th Congress, presenting a programme of the country's social and economic development through the year 2020. He promised to avert an economic shock, protect people's savings in banks, and the interests of shareholders in housing construction. These were just some of the measures proposed. The party will draw up its own action plan to fit the programme of Mr Putin's Cabinet. The "Government-Party tandem" is beginning to work, and the State Duma will pass the leader's proposals into law today.
Prime Minister Vladimir Putin demanded that, starting in 2009, profit taxes be cut to 20% for everyone and to 5% for small businesses, and that depreciation premiums be tripled.
Prime Minister Vladimir Putin told the United Russia party's congress that the defence industry would receive 1% of allocations, or 50 billion roubles ($1.8 billion), under the federal economic bailout plan. However, this amount is too small to solve the problems even of the major companies.
The Government admits that the financial crisis has now escalated into an economic crisis, and plans to use tax breaks for bailing out domestic industries.
The United Russia congress that is due to be held today may produce as big a sensation as the previous one, when Prime Minister Vladimir Putin became the ruling party's chairman despite not being a member. This congress may see the Premier receiving his party card. Some deputies make even bolder guesses: Mr Putin may quit his post as Prime Minister, which is hardly the most comfortable post during a massive economic crisis, and become the speaker of the State Duma. Political analysts note that Mr Putin likes to spring surprises in order to tighten his grip on the Government.
At first glance, nothing unexpected has happened. Back in the summer of 2007, I suggested in Novaya Gazeta that after the end of his second term as President, Vladimir Putin would move to the Prime Minister's seat, keeping his grip on government and appointing a stand-in who would not possess full powers but would "keep the seat warm" until he became President again. One of his missions would be to adopt constitutional amendments to extend the presidential term while he himself would probably stay in power for no more than two years.
