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February 24, 2021

President Basescu optimistic about economy

President Traian Basescu is optimistic about the economy of Romania, a macro-stabilised country that also enjoys political stability, with the incomes to the budget for the first 3 months being at the planned level, and the signs regarding orders in industry and export being good, he said recently on Digi24 television. Asked about the accord with the IMF, he answered that “privatisations and arrears” will represent problems, but the government did not “let loose of the reins into populism” and there are no reasons to worry with this regard.On the other hand, Basescu admitted that economic growth in 2012 was not spectacular and only to the limit, but Romania is not in recession. He described as “rather big” the rectification of the indicator initially announced with this regard from 0.2 pc to 0.7 pc.Speaking about the relocation of the Dacia production to Morocco, the president said that he does not believe in “overnight delocalisation.” “This is a way of negotiating, because here Renault Nissan made huge investments not only in the horizontal industry, but also think about the Research Centre of Titu, where there are 2,000 engineers selected from Romanian universities, to innovate.

The automobile testing system is at Titu. There is a huge investment there and it is hard to also relocate the horizontal industry overnight,” Basescu said. He added that trade unions, too, must be very careful with how much pressure they put on wages, as Dacia cars are “very cheap” and an increase of labour costs can lead to risk of entering the non-profitability zone.President Traian Basescu added on Digi24 that relocating Romgaz to Bucharest is “a foolish move” and “a big mistake,” because this company traditionally had  its HQ and infrastructure in Medias.

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