Prime Minister Ilie Bolojan on Thursday said Romania spends around 150 billion lei more each year than it can afford, noting that this amount is roughly equivalent to the total public sector wage bill.

‘Think about it, because we have spent more than we could afford over these years, we have had to take out increasingly larger loans each year. And since those granting us these loans realised that Romania is not being managed properly and that there is a risk it might not repay the money, what happened every year? Our national credibility declined, our rating dropped, and as a result, our interest rates went up,’ Bolojan told Antena 3 CNN.

He mentioned that Romania is paying interest rates of 5.5% to 7% per year, in euros or US dollars, higher than other countries in the region, which happens ‘when confidence in the way a country is managed is low.’

‘We must reduce the loans we take. We will be forced, like other countries, to continue borrowing, because you can’t stop from one day to the next. But what must Romanians understand? Each year, we spend around 150 billion lei more than we can afford, about 30 billion euros. Think about it: the total public sector wage bill in Romania is about 150 billion lei. So if Romania, let’s say this year, had carried out its investment plans and behaved normally, without taking on those loans, we wouldn’t have been able to pay a single public sector salary. People must understand this, it’s no joke,’ Bolojan explained.

He added that this is a reality ‘any prime minister or government will have to face,’ explaining the measures taken by the government to increase certain taxes or to cut down public spending.

The prime minister said he does not find it acceptable that, from 1 January, Romanians will pay higher property taxes and that this money should go not into investment but into unjustified salaries. AGERPRES