Romania needs to have a "robust" economy, apart from membership to NATO and EU, in order to benefit from an adequate security, the chairman of the Fiscal Council, Daniel Daianu declared on Friday.
"You cannot ensure security, even if you are part of NATO, you cannot be a free rider, if you do not have a robust economy. We have to, counting on NATO's and the EU's support, gain more robustness, which we have neglected, regarding both the public budget and the exploitation of the energy resources and natural resources, in general. We were shortsighted and we have not yet understood that the robustness of an economy means to have strong roots back home. But, it is never too late to wake up," Daianu explained, during the online conference "Romania's dynamic strategy in the new geopolitical context", organized by the Sfera XXI Foundation, in partnership with Pentagon Marketing & Research.
According to Daianu, in the context of the war in Ukraine, countries with the lowest budget income, such as Romania, will suffer, Agerpres.ro informs.
"Russia and Ukraine used to supply a lot on the world market. Central banks will have a more difficult mission of handling inflation under these circumstances and public budgets will be more tense. I already said that military spending will increase everywhere, it is a consequence of the fact that the peace dividend will no longer be. On the contrary, this situation will tense public budgets even more and countries with low fiscal income, low budget income, will be affected, which is Romania's case as well," Daniel Daianu said.
He added that the situation is "fragile" and the state budget is "extremely vulnerable".
Daianu qualified the statements that Romania could enter bankruptcy as "foolish", saying that a "humbug" is also the "wrong" thesis that Romania's National Recovery and Resilience Plan (PNRR) could finance the country's deficit budget, highlighting that PNRR is gaining a more "pronounced" strategic mission than prior to the war launched in Ukraine.
In his opinion, defence spending should not be included in the budget deficit, because they are an "investment in security", and interventions of fiscal facilitations should not be generalized.
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