Bolojan: We are in a budget crisis / Romania spends more than allows and borrows a billion weekly
Ilie Bolojan/Photo: Inquam Photos/Octav Ganea
Romania now looks like a weakened body of disease, vulnerable to any kind of virus, says the interim president, Ilie Bolojan. Basically we are in a budget crisis, as Romania spends more than it can afford and borrow for it a billion euros. We can get in the situation to increase taxes and taxes, he said.
“We are practically in a budget crisis, because Romania spends more than it has been allowed, for many years. We have big deficits, about 9%, last year. To cover this difference between our country's revenues and the much higher expenses we do, we have to borrow and practically we borrow with about 1 billion euros, what has been in Romania.
This means that every year we pay larger interest, we pay much larger amounts to cover these interests, which will make that in a year-two, if we do not correct things, to be in the situation where the Government becomes practically a payment agency, it can do nothing for development, “said the interim president Ilie Bolojan, to the” Point “
Another important challenge is to maintain our safe country rating, in which it can be invested.
The lower the degree of confidence of the investors, the higher the costs of the loans, the interests are higher, the country risks are higher and this is a challenge.
Political instability is like a virus for a weakened body
“In such situations, any kind of aggravating factor, any kind of factor that can trigger an aggravation of this budgetary crisis is to avoid, because it makes us very large complications. We are like a body that is weakened by a disease and is practically vulnerable to any kind of virus. What does this type of virus mean? It means political instability, for example, and for example, for example, for example,” Bolojan.
The fact that in the second round of the elections there were two candidates from the limits of the political specturer generated certain concerns in the market, amplified by the resignation of the prime minister.
“Basically Romania needs a stable government. Because, we like it, we do not like it, it is the government that manages the economic problems of our country.”
