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May 24, 2022
BUSINESS

Forbes: Greece? Worry over the Romanians

Money.ro quotes the “Greece? Worry Over the Romanians” is headline of an article published in Monday’s issue of Forbes Magazine expressing worry over a return of authoritarian regimes, nationalizations and violence in such former communist countries as Hungary or Romania where the political and economic consequences could be even more serious than those in Greece, Italy or Portugal.

The Forbes article shows that the meltdown that followed the financial crisis of 2008-2009 is having even more severe political and economic consequences in the formerly Communist east than in Portugal, Italy, Ireland, Greece and Spain. The article also draws attention to Hungary being at risk not only of being slapped sanctions from international organizations but also of becoming isolated from the rest of the world. While the Forbes’ warning over Romania follows protests lately, it is motivated by the economic developments actually. The article also refers to the drastic decrease, by 74 pc, in the number of new car registrations, against a European Union median of 15 pc, and goes on as follows: “Not everyone needs a new car, but that’s a good proxy for suffering of the would-be middle class. And what do we see as a result?” A general global increase in economic activity can gradually solve these problems, so long as former communist states do not slip back to authoritarianism, nationalization or violence that scares away future investment. “Too much attention is being focused on cases like Greece because of the concentrated holding of its debt among major financial houses. I would put the West’s chip on Romania instead,” concludes the article.

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