President Basescu: According to EU standards, Romania has entered recession. Bad governance is to blame


President Traian Basescu on Thursday said that according to the standards of the European Union, Romania has entered recession, adding that economy in Romania is booming only in the imagination of Prime Minister Victor Ponta.

‘The economy is booming only in the imagination of Ponta. In reality, it has started depreciating. According to the standards of the European Union, Romania has entered recession. The definition of the Eurostat for recession: two consecutive quarters of economic decline from previous quarters. Romania is finding itself in such a situation, although there is a slight economic upturn from 2013. The economy has already hit a decline that spans two consecutive quarters: Q1, 2014 – with a negative growth of 0.2 per cent of the Gross Domestic Product (GDP) and Q2, 2014 – with a negative growth of 1 per cent from Q1, 2014. In technical terms, that means the Romanian economy has entered recession,’ Basescu said at the Cotroceni Presidential Palace.

Traian Basescu argued that the National Statistics Institute of Romania (INS) launched a lie by omission as it used a form of 2009, insisting that it feels like INS, together with the National Audio-Visual Council (CNA) and the Ombudsman, is an institution ‘caving under political pressure.’

‘I can see that INS, which has launched a lie by omission, walks back as it remembers having used a standard print form from 2009. How it is possible for the European Union to tell Romania has entered a recession, while the National Statistics Institute does not? It feels like INS is the third institution caving under political pressure, rounding up the series of institutions having fallen under political control, along with the Ombudsman and the CNA,’ Basescu said in a press statement at the Cotroceni Presidential Palace.

He pointed out that INS omitted to say that Romania entered a recession.

‘What INS did today is like the electrical fuse having been taken out at CAN. They also took out the fuse so that they can lie to Victor Viorel. And what evil did they do? They did what their boss did: they plagiarised, in this case it was a form from 2009 and omitted to tell the country that it entered a recession,’ said Basescu.

President Basescu blamed bad governance for the poor performance of the economy, pointing also to the decrease of foreign investments, as well as the newly introduced taxes such as the tax on special constructions and the excise on fuel. “There is also a lack of projects to absorb European funds,” he said.

The head of state lashed at his political foes, mainly at PM Victor Ponta. “Bad governance is a reality. He has had all conditions of macro-economic stability inherited from the Emil Boc government. Through incompetence and lies he succeeds in leading the country to new imbalances,” Basescu said.

Pointing to the fact that he is not running for office anymore, Traian Basescu warned on the issue of cutting the social security contributions (CAS) before it is too late, as this decision might lead the country to deeper crisis.

“The recent budget rectification shows there aren’t resources for 2014 and that the rectification has been a negative one, although Ponta told the people the rectification has been positive,” Traian Basescu said, accusing the National Liberal Party (PNL) of carrying the same policy as when it was alongside PSD. “It is demagogy and lies to gain advantages during the electoral campaign,” he added.

The president stressed he had already seen this ‘movie’ and he is warning the Romanians not to let themselves fooled as they will be the ones to pay, next year, the price for this naivety.


CAS cut – a threat against the economy

President Traian Basescu said the budgetary rectification shows there are no resources to support the economy. “PNL and PDL have called for an extraordinary parliamentary meeting on cutting CAS. They have hidden the real numbers and have drawn a fantasy design. The budgetary revenues from tax on incomes were fulfilled only 94.6 percent, the VAT collected amounted to 94.3 percent, while excises’ collection amounted to 97.4 percent.” Traian Basescu has also drawn the attention that the social contribution budget revenues were collected in a ratio of 98.3 percent, registering a deficit of RON 12.5 bn.