The Social Democratic Party (PSD) denounces what it describes as an attempt to manipulate public opinion through the assertion that the current budget problems were caused by last year's deficit, and announces that it will propose a set of firm measures within the governing coalition to drastically cut privileges and sinecures.
'PSD denounces the attempt to manipulate public opinion by suggesting that today's budget issues stem from last year's deficit. This is a crude distortion of reality, invoking an alleged heavy legacy' intended to justify today's austerity measures. Firstly, PSD did not govern alone in 2024 or in previous years. Therefore, invoking a heavy legacy' from a government in which one was a participant is wholly inappropriate and, indeed, dishonourable,' the party said in a press release issued on Friday, agerpres reports.
PSD brings to mind budget deficit stood at 7.1% of the GDP at the end of 2021, when it took over the mandate, after it had reached 9.2% in 2020.
According to the release, the budget pressure resulted largely from excessive borrowing under previous right-wing governments, with public debt increasing by over 13% of GDP, leading to a 61% rise in interest payments - from 18 billion lei in 2021 to 29 billion lei in 2022.
PSD maintains that half of the borrowing during the PSD-PNL government was used simply to roll over previous debt, rather than finance new initiatives. It also reminds the public that it assumed leadership of the government during a general teachers' strike, under intense union pressure for wage increases and benefits.
'Despite these challenges, the PSD-led government managed the economy responsibly. The funds borrowed during this period were directed towards Romania's development and for the benefit of its citizens,' the party added.
Key achievements the party brings to mind include: doubling public investment, reaching a record 120 billion lei last year; support for the business environment and private investment, with schemes returning three times more to the economy compared to 2020-2021; a historic low unemployment rate; the most comprehensive social reform in recent Romanian history, laying equitable foundations for the public pension system.
PSD strongly rejects claims that the pension increases were reckless, noting the reform was conducted in collaboration with the World Bank and the European Commission and politically backed by all current coalition parties, including PNL, USR and UDMR. These parties had themselves included pension recalculation as a milestone in Romania's National Recovery and Resilience Plan (PNRR).
'Back then, PSD proposed a different approach to the one now being offered to Romanians. We demonstrated that it is possible to achieve development and increased budget revenues through economic stimulation. We believe in modernising the economy, in public and private investments that create well-paid jobs, and in protecting the purchasing power of Romanian citizens,' the release also reads.
The party concludes by announcing it will propose a series of significant measures to the coalition in the coming period, including severe cuts to privileges and sinecures.
'Action must be taken from the top down if we are to overcome this challenging period for Romania's economy,' PSD says.
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