Nicuşor Dan's economic plan: “We must regain the confidence of financial markets, private market”
Nicușor Dan considers that the huge budget deficit of Romania could be managed on the model applied by him at the Bucharest City Hall, which he took over with a debt of 3 billion lei.
Nicuşor Dan gives example the Bucharest City Hall. Photo: Inquam/Flaviu Buboi
Invited in a show on Romania TV, Nicușor Dan, mayor of the Capital and candidate in the second round of presidential algers, believes that his experience in managing the financial crisis at the municipality can offer an applicable economic recovery model and on a national scale. He says that, when taking over the mandate, the Bucharest City Hall had a current debt of 3 billion lei, under the conditions of an annual budget of 4 billion, and that he found the solutions to leave the financial impasse.
“The deficit is not an abstract notion. Deficit means inflation, and inflation means that people pay more and when their bills come, and when they go to the market … (…) at the town hall, I found a current debt of three billion lei, which had to be paid then, compared to four billion, all the money for that year.“He said, explaining that at the moment he managed to regain the confidence of the banks, who are willing to borrow the institution with the double of the requested amount.
He stressed that the budget deficit has direct consequences on the population, especially by inflation, and listed four main directions for correcting economic imbalances:
– Combating the great tax evasion,
– attracting European funds,
– Reducing state spending
– increasing institutional efficiency.
“We have to regain the confidence of the financial markets, the private market. We must have a predictability beach so that an investor who will come to know that the taxes he pays now will be the same and over a year, and over two years,” he wanted to point out.
Therefore, he excludes excluded the possibility of increasing taxes, mentioning that their stability is essential for maintaining the trust of the private environment, but among the proposed measures there is a restructuring of the budgetary apparatus, described as “painful but necessary”.
