Dragnea: Development and Investment Sovereign Fund has generated huge interest among international financiers

Romania’s Development and Investment Sovereign Fund (FSDI), included in the electoral programme of the Social Democratic Party (PSD), has generated huge interest in international financial quarters, from the United States to Norway, PSD national leader Liviu Dragnea said Wednesday.

He added that the FSDI paves the way for Romania’s reindustrialisation.

“A law will follow for the Development and Investment Sovereign Fund, which has generated huge interest in the world community, the international financial quarters starting with the United States of America and ending with Norway. (…) This is not us reinventing the wheel. Norway’s Sovereign Fund is one of the main engines for economic development; the same is true with Poland as well. (…) All of Romania’s profitable state-run companies will be included in the fund, which will issue securities that can be bought by any citizen and any company. The Government will be the sole shareholder in them and it will not sell any share in them because they are strategic companies; at the same time, this fund, as happens elsewhere in the world jointly with big investment funds and international banks (…) will enter a joint venture to fund big strategic investment projects in Romania. They will also start building new factories and production facilities in areas where they used to be,” Dragnea told Radio Romania Actualitati public broadcaster.

He added that in 1997 – 1998, 1,300 factories and works were closed down in Romania, leaving one million and a half Romanians unemployed.

“And that is how Romania’s reindustrialisation will start. There are huge investment funds wanting to invest to get a profit. That is how work is being done,” said Dragnea.

 

“Budget might look optimistic against Ciolos Government, but not PSD administrations”

 

Chamber of Deputies Speaker Liviu Dragnea on Wednesday said that the 2017 national budget might look optimistic against the Ciolos Government, but not against the Social Democratic Party (PSD) administrations.

“Now I could be a little malicious to President Iohannis. It is good to look somehow worried and preoccupied. It’s a good pose. I wouldn’t know what political or image calculations he has, but if we get serious, the budget might look optimistic when compared with the Ciolos governance, but not when compared with the PSD executives. If we started from the idea that the government supported by us also targets zero absorption of the European funds, it could have never been able to substantiate such a budget. Mister Iohannis has the same approach as the rightist governments of the PDL (Liberal Democratic Party) used to have, which the former technocratic governance had, namely the principle of austerity. The past years have proved that the austerity-based model did not end in development, on the contrary,” Dragnea Radio Romania Actualitati public broadcaster on Wednesday, when asked how he saw the statement by President Iohannis that Romania’s 2017 national budget is problematic and risky.

He added that it is also proven that the tax-related measures and investment in development conducted by the governments headed by Victor Ponta generated economic growth.

“It’s quite simple – either it is a wrong approach on the president’s part, with his advisers presenting him a miscalculation, or – who knows – perhaps he really knows it is not true, but he wants to present it otherwise. One cannot talk in such terms,” Dragnea stressed.

President Klaus Iohannis on Tuesday said that the state budget for 2017 is problematic and risky, emphasising that a real risk exists for the deficit to exceed 3 percent.

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