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The chairman of Save Romania Union (USR), Catalin Drula, stated on Monday evening, on the public television station TVR Info, that Romania will go through an economic crisis, something that the entire political class knows, but the representatives of power "don't care" and instead of reducing the budget deficit, they "plug into the public money".
Drula explained that, although the economic crisis is a phenomenon that manifests itself throughout Europe, its size in Romania depends on the economic decisions taken by the Government.
"In the economy, those percentages (...) always matter. If we refer, for example, to the fact that we borrow with 9.5% effective interest, now, to the bonds issued by the Romanian state. If it were 7% - it seems like an academic difference, 7, 9... No, it really matters. It matters if the rate on the loans that people pay, ROBOR, if it is 6% or 8%. It matters if RON is 5 or 5.5, so all these nuances. I mean, an economic crisis may be generalized throughout the continent, but the size of the economic crisis in Romania is determined by the action of this government, by the fiscal policy. (...) What the Government should do is (...) to reduce the budget deficit: expenditures should be in line with revenues. Or, at the moment, Romania, for 4 RON coming to the state budget, borrows two more: one RON to cover past debts and one RON to cover the expenses. Think about it: in a family that has an income of 4,000 RON you have expenses of 6,000 RON every month. How long can this last? It will rumble, they know it will rumble next year, this entire political class - both power and opposition - knows that an economic crisis will follow. Those in power are the ones who don't care about this crisis. What they are doing during this time is to get into public money," the USR leader also said.
"In the economy, those percentages (...) always matter. If we refer, for example, to the fact that we borrow with 9.5% effective interest, now, to the bonds issued by the Romanian state. If it were 7% - it seems like an academic difference, 7, 9... No, it really matters. It matters if the rate on the loans that people pay, ROBOR, if it is 6% or 8%. It matters if RON is 5 or 5.5, so all these nuances. I mean, an economic crisis may be generalized throughout the continent, but the size of the economic crisis in Romania is determined by the action of this government, by the fiscal policy. (...) What the Government should do is (...) to reduce the budget deficit: expenditures should be in line with revenues. Or, at the moment, Romania, for 4 RON coming to the state budget, borrows two more: one RON to cover past debts and one RON to cover the expenses. Think about it: in a family that has an income of 4,000 RON you have expenses of 6,000 RON every month. How long can this last? It will rumble, they know it will rumble next year, this entire political class - both power and opposition - knows that an economic crisis will follow. Those in power are the ones who don't care about this crisis. What they are doing during this time is to get into public money," the USR leader also said.
