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May 16, 2022

Basescu calls for harsher austerity measures

The president told Romanian ambassadors convening in Bucharest that the state is forced to further pursue the austerity policy. “All the money we will borrow will go to consumption. This cannot be, we also need money for investments,” Basescu underlined.

Traian Basescu also advised the diplomats not to let themselves fooled by the “televised mood”: “For those of you who will be asked any questions, your answer has to be: ‘Romania needs to pursue its adjusting programme’. The core problem lies in the state budget. If you remember, once upon a time there was the 2007-2008 year, when there was an effervescence of raising pensions and wages. When the wages of the diplomatic corps were raised, I warned there were no resources. I launched the same warning when pensions were doubled over night,” he added.

The president stated that he, for one, would call for greater austerity: “I want you to understand why I will continue to call for enhanced austerity. Without it, there will be no money for investments in 2011. I want you to know the reason for which I ‘love’ being called names.”

In his view, Romania will start having an economic growth only next year. “We will switch back on economic growth, assuredly, only next year. It is yet to be seen whether the growing trend of the second quarter will be maintained in Q3 and Q4, after the raising of the VAT. If the VAT hadn’t been raised, Q3 and Q4 would have surely been times of growth. As things are, there’s no certainty. Q2, when the VAT was of 19 per cent, indicated the first growth, of +0.3 per cent, compared to Q1.”

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