PSD wants to relaunch the economy. With budget deficit of 10%. It is believed in communism …

Great confusion in the perception of reality we find at the PSD. Confuses the country's economy with the budget, with the economic companies of the state, the bankruptcy.

The economy of Romania is private, it is not subject to the “directives” from the parties or from the state institutions. The state can intervene in the economy on the part of taxation and financial aid, and on the investment side in infrastructure. If he has money. But the Romanian state now has no money to allow such aids, so the Romanian economy is on its own. And the investments were largely stopped, because the state has no money. It is only cope with the expenses related to the state, pensions, budgetary salaries, education, health, army, etc. Where's the money to invest in the economy, which does not depend on the state?

Then how to relaunch the state economy?

Explains Cristian Socol, the PSD economist, probably the author of the Economic Relabing Plan announced by the PSD:

“The optimal way of economic relaunch involves stimulating Greenfield investments (from scratch), which will create new jobs and reduce regional gaps.”

To tell us Cristian Socol how are the investments initiated and conducted by the state, at a budget deficit of 10%, with hope, illusory, that will be reduced the following year to 6%? The number of pensioners increases, the energy is expensive, the food, we have great inflation, how do the pensioners and the budget employees cope, if the state takes the money in investments?

I have seen that the current ruling coalition wants to dismiss 12,000 budget employees, because it has no money. Then where does investment money come from?

Let's understand each other. We do not discuss here about private investments, which come to us in the country, given that taxation is attractive, low bureaucracy, human resources and sufficient materials for launching larger or smaller businesses.

We return to taxation. If the state increases VAT and other taxes, investors run, they don't come. That is, private investments are reduced, not even to dream of public investments.

It is true that the investments will continue, especially those on European money. But most of the investments were stopped, because they were over contracted, they exceeded Romania's payment capabilities.

Proposes Cristian Socol:

The first measure refers to the fiscal credit for Greenfield strategic investments. It is proposed to grant a fiscal facility (deduction from the profit tax) for 10 years for investments from zero of over 20 million €, in strategic industries (food, chemical, pharmaceutical, car, metal construction industry, machine construction, manufacturing equipment and equipment) and industrial parks (with the possibility of profit).

Fiscal facilities when we also type PSD to tax overnational, when we have no money for budget for education and health, for pensions and budgetary salaries, it is a bit back.

Cristian Socol also supported a “perpetuum mobile” in the economy:

Wage LED Growth's economic growth. In other words, we increase salaries, increase the economy, from this growth we increase salaries again, and so on. A true “perpetuum mobile” in the economy. How good it would be! It would be the recipe for happiness, applicable in any other country!

I am afraid that even now the PSD leaders are thinking about such solutions!

The second measure proposed by PSD is the granting of Incentives for production investments in poorly developed regions. It is proposed to grant fiscal facilities in the form of a regional fiscal credit (deduction from the profit tax) of up to 50% of the value of the production investment, for projects over 5 million € realized in the poorly developed regions (eg North-East, South-Muntenia, South-West)

The same story. Fiscal facilities at a budget deficit of 10%, without high hopes that it will be recovered. And if we fail to cut the expenses, not to grant “fiscal facilities”, “Junk” awaits us, we can no longer take loans, and what blocks our European funds, because we are in excessive deficit procedure anyway!

Everything that proposes PSD comes from an extra reality, from people living from exotic dreams!

Cristian Socol gives examples of countries that apply such measures: Poland, Spain, Czech Republic, countries that do not have 10%budget deficits!

The third main measure provides for an integrated package of incentives for research and development, in order to transform Romania into a regional research and development and innovation pole. The proposed measures include a tax loan of max. 50% for the initial investment in data centers and artificial intelligence infrastructure; Increased fiscal deduction of research and development expenses to 150% in 3 years and 200% in 5 years.

What Mr. Socol does not tell us is what amounts of money I suppose these measures, and where the money comes from. From God, from the caves of Ali Baba, where do the money come from?

The fact that the ANAF collects about 27% of GDP in Romania, and in civilized countries it is collected on the budget 40-45% of GDP is the main problem from which the deficit comes. Mr. Socol proposes nothing to improve the collection. It only proposes how to spend the money we do not have.

Once again, Mr. Socol may also understand. The economy of Romania is private, it works in the European and World Market Competition, it establishes its only investments, projects, prices of products and services. It does not have the state how to intervene in the economic processes and the interests of the companies. Where it can intervene, in state companies, they are almost all bankrupt. Thank God that the rest cannot intervene!

The only way it can intervene is through the processes of fiscalization, state aid and investments. If he has money. Romania does not have money at the present time, has a deficit of 10% of GDP, and in the coming years it has to fight to regulate its deficit, not to throw money in incentives for the economy.

Important investments are underway, many have been stopped, and as for taxes and taxes, they were raised, not reduced.

If we do not stop from increasing taxes, there is a risk that investors will go to other reduced tax countries, and Romania's economy collapses. The phenomenon of withdrawing investments and investors has already begun. If the state increases taxes and taxes, the phenomenon will be emphasized.

If we do not reduce the budget deficit we enter “junk”, and we remain without loans, that is, without money of pensions and salaries.

And then, Mr. Cristian Socol tells us where money for the PSD project to relaunch the economy?