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November 20, 2019
BUSINESS

State sector generates loss, president Basescu says

Romania is macro-stabilised, yet the big shortcoming is still the incapacity to attract European funds, the president also stressed at the conference celebrating 100 years since the foundation of ASE.


President Traian Basescu said  in a speech during the ASE Bucharest anniversary conference, that he had more questions than answers as to the economic developments in the EU and Romania, adding that our country would need to prepare in terms of competitiveness for joining the eurozone. ‘This country needs to be ready for its entry to Schengen, for the simple reason that there is no alternative to the EU solution’, Basescu added. The president also stressed that one of Romania’s priorities, if it wanted to adopt the euro, was to improve its compositeness, and the state sector did not have a very high performance. ‘Unfortunately, the state sector generates loss both through the big national companies and through a public apparatus that is very disproportionate to the actual needs’, the president further noted.At the same time, he said that the big problem was still the incapacity to spend EU funds, influenced by the poor training of civil servants. However, he said the ‘ASE nursery’ would hopefully grow professionals equipped with what it takes to mobilise European money and generate medium to long term solutions, zf.ro informs. Basescu also explained that Romania was macro-economically stabilised by the measures taken back in 2010 and in 2011 had 2.2 per cent economic growth. One question – he said – is why the same percentage could not be repeated in 2012 and why the hope for 2013 is a good agriculture year. The president also said he had questions about the prioritisation of foreign investment. ‘

We now know for sure we do have all that is required to be able to invite anyone who wishes to produce wind energy. Very well, but we have seen just how expensive that is. Is solar and wind energy really a solution? It seems to be, it certainly is fashionable these days. The problem occurs when you pay EUR 58 for each certificate and you give them three certificates. EUR 58 for every MW. What happens then in Romanian economy? What is the impact on production costs? These are questions I am asking myself’, Basescu said.The president reiterated the fact that preparations for the eurozone should not be limited strictly to meeting Maastricht criteria, as economy compositeness is also very important if we want to cope with the much better performing EU economies. The head of state referred to Cyprus and Slovenia, countries that, some years before, had met the Maastricht conditions and moved to the single currency, and yet are now ‘in a deep economic crisis’. Finance Minister Daniel Chitoiu, in turn, thinks Romania needs healthy economic policies and daring strategies in order to go back on the track of economic recovery. He also stressed that economic education was a very important factor for Romania to be able to create a hierarchy of values and rejuvenate its society. Senate Speaker Crin Antonescu, present for the anniversary conference, says it is necessary that, in the future, the links between politicians and the economic elite are much tighter. He noted ASE is one of the most prestigious Romanian universities, one that has always produced peaks of knowledge, competence and decision-making not just for Romania.

 

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