Ilie Bolojan: “We will not be able to descend the deficit below 8%”. What does he say about the duration of unemployment aid
Ilie Bolojan / Photo: Lucian Alecu / Shutterstock Editorial / Profimedia
Prime Minister Ilie Bolojan said, at Euronews, that the budget deficit could not be descended this year below 8% of GDP and that in 2026 it would reach around 6%. The head of the government claims that the deficits will be reduced, among others, by attracting larger investments and increasing the number of people on the labor market, an increase that can be made by increasing the retirement age at the standard age of 65 and by reducing the unemployment aid.
“In the autumn of this year, we are practically evaluations that we will not be able to descend below 8% until the end of the year. These are the data at the moment. It depends on the measures that are taken, depending on what happens with the staggering of some investments. But time, not very long available, this year the impact of the measures that have been adopted. The operating expenses begin to increase with much more than the revenues, ”said Ilie Bolojan, quoted by Agerpres.
He mentioned that in recent years the difference between incomes and expenses has become increasing and that he wants to “stop this negative dynamics”. It is important that the deficits decrease, so that Romania's debts do not grow, he stressed.
“Every year, contracting even greater loans, the debt of Romania increases and the amounts we pay in the form of interest will be increasing. Hypothetically, it is not a very big problem if you have a deficit, as long as you can finance your deficit. Romania finances its deficit, but as the amounts increase, the deficit is increasing.
“We have to take more people to the market”
The prime minister also pointed out that Romania must have “a fiscal discipline”, so that the money is no longer dispelled, to create conditions for economic development and to increase energy production.
He stressed that our country has a “very big” agricultural potential, but unlike Hungary or Poland, which supported food processing, Romania has not invested in this area.
“We are in the situation where we have some deficits in the area of very large agri-food products, which is abnormal for a country like Romania, with this potential. Then, a second important direction is to encourage the agro-food industry, to support our exports, to support the Romanian products, in general, so that we balance,” he added.
The head of the government pleaded to attract foreign investments, mentioning that their value reached 5 billion euros per year, compared to 10-11 billion euros, two to three years ago.
“There are high technology areas, artificial intelligence areas, data centers, which we cannot make from Romania, because we have no capabilities. This technology transfer must support it from encouraging foreign and Romanian investments, at the same time. We send more people in the economy. Unemployment. Prime Minister.
