The head of the Fiscal Council: “People who believe that if you cut the expenses you avoid the recession – it is not true!” / “Desirable to enter the PSD in government”

The president of the Fiscal Council, Daniel Dăianu, told B1 TV that there are “myths maintained by economists” and that one of them is “that if the expenses are cut, the recession is avoided”.

“There is a betrayal of some economists, who have contributed to bad policies and who have brought the financial status of Romania to a corner of which it will come out very, very difficult and with great difficulties, and are myths, for example, including economists, I tell you that I am surprised, that if the expenses are cut, the recession is avoided. The aggregate demand, of the internal absorption, because Romania has been consuming more than it is rational, ”said Daniel Dăianu.

He said that “this skid” took place “more and more.”

“We have reached the deficit of last year, over 9% of GDP, is an isolated case in the European Union, with an increase in the deficit supplement of almost 3% in a year, so the skid of 2024, I tell you, in a way it is hallucinating because you can admit in times of war or there is a misfortune, Such events can happen to burden the public budget, which is why you need tax space, so you need a reasonable deficit ”, explained the president of the Fiscal Council.

“People who believe that if you cut the expenses you avoid the recession-it is not true! Let us not have a recession this year, given that we will have a correction,” continued Daniel Dăianu.

The president of the Fiscal Council considers that it is “desirable to enter the PSD in government”.

“Romania is in a situation in which it needs maximum political solidarity, a solid government, to rely on parliamentary support. It is desirable to enter the PSD in government (…). as quickly as possible, because it would be an important signal for the country, and for abroad, ”said the head of the Fiscal Council, Daniel Dăianu.