“Economic growth is certain that it will not materialize,” says a presidential counselor. What does the risk of recession say
Radu Burnete PHOTO: AGERPRES
Presidential counselor Radu Burnete told Antena 3 on Saturday that the economic data has worsened throughout the year because the Romanian budget is built on a hypothetical growth of 2.5%, which will not be reached. Instead, Burnete believes that the recession can be avoided.
Radu Burnete, presidential counselor, the head of the Department of Economic and Social Policy of the Presidential Administration, was invited to evaluate the risk of entry into the recession, which the Minister of Finance, Alexandru Nazare, spoke.
“I think that the minister wanted to give a prudence signal, rather that the data shows us that Romania is in recession. It is true that the economic data has worsened, throughout the year. I remember that our budget is built on a hypothetical growth of 2.5%. And this is certain that I will not materialize. 1%, ”said Radu Burnete, quoted by News.ro.
“I do not think we will have a recession and I hope we will do everything we want to avoid a possible recession, because it is true, these measures to recover the budget deficit, by their nature are recessionist,” Burnete said.
Instead, there are no financing problems at the moment for the Romanian state, so the payment of salaries and pensions is not endangered.
According to the presidential counselor, it is necessary to reduce the expenses, but they will certainly not be from the essential areas such as pensions, salaries. “If we do nothing and if we do not rectify our budget, we arrive there, in a year, two days. It is not playing with this.
According to the counselor, delays in paying pensions and wages are excluded. “From my point of view, it is excluded that there are delays in this area of pensions and salaries. Where the government should look, and the prime minister said and we discussed it here, when there were negotiations for the formation of the government, unfortunately we have a high level of over-contract. What does this mean? Territorial, commune, or village, or city, and so on.
Alexandru Nazare, the Minister of Finance, announced on Wednesday new measures to reduce the budget deficit “because we must be prepared at any time for recession and anticipate this.”
“Yes, there is a risk of a recession. It is a normal matter that we must take into account. It is a real risk,” said Nazare, asked about the risk of a recession.
