Romania is running „very wide” budget deficits, acting President Ilie Bolojan said on Friday, stressing the importance of a state overhaul that should reduce spending and increase revenues.
„It should not be understood that we are in a serious situation, yet I think we must admit the situation is difficult, specifically that we have very wide budget deficits. So, for years now we have been consuming more than we can afford. If an economic recession occurred, with plummeting revenues, we would no longer be able to function, so we would be nearing a situation like the one [faced by the Boc government]. But I think that rational politicians are aware of what they have to do,” Bolojan told a press conference at the Cotroceni Palace on Friday.
He also stressed that Romania needs „political stability” and good governance capable of reigning in deficits, reducing state spending and accessing European funding.
„Access to EU funding and maintaining deficit control, in addition to ensuring economic growth, also secures us a country rating that gives confidence to investors, to our creditors, but also to companies operating in Romania. Political stability in general, and social peace are general prerequisites for moving forward. Also, we will not be able to avoid a reform of the state, because without an overhaul we will only further feed the deficits,” said the acting president.
Bolojan also specified that the reform of the state is necessary not because it would be imposed by the European Union, but because it is part of a „rational behavior”. The state has to reduce its spending and increase its revenues, and the money must be directed towards investments.
„We can do this in two ways: in a programmed, gradual way – this is the good option – exactly like a citizen who goes to see the doctor and duly seeks treatment if he learns that he has health issues. Or we can postpone things in the hope that they will resolve themselves. They won’t. And when a problem like an economic recession appears, because this is what we are seemingly headed for, we will have to take stopgap actions. Whenever you act with your back against the wall, the costs are higher, the problems are bigger. And it’s best to avoid this situation,” Bolojan advised.
AGERPRES
