Prime Minister Florin Citu contradicted on Thursday some scenarios according to which Romania's public debt will increase as a result of the fact that the country will borrow 15 billion euros under its National Recovery and Resilience Plan (PNRR), insisting that the loans are intended for investment, not consumption.
"If nominal Gross Domestic Product (GDP) outgrows public debt, debt will actually fall. And there are these scenarios that show us that it is indeed falling. Now I tell you the golden rule in finance and I tell you what any economist in the world will say: if you borrow for investment, it is ok and what we do under PNRR is borrow for investment, not for consumption. Investment is what adds value, investment is what creates jobs, and only through investment can one have strong economic growth without inflation, sustainable economic growth. So here things are very clear, very transparent: we do not borrow for consumption, and I can tell you that we may see public debt fall or remain constant, as we see things moving forward," Citu told a news briefing at the Government House.
Comentează