Argentina's tough recipe that would cure Romania's economy: “Everything else is prolonging the disease, treating cancer with lavender tea”
Economist Andrei Caramitru claims that Romania would need a reform like the one Argentina went through, a state not long ago on the brink of bankruptcy, but today “healed”.
Romania's economy is dragging, but the politicians assure that everything is fine. PHOTO: Shutterstock
Andrei Caramitru believes that the situation in Agrentina has for a long time strikingly resembled that of Romania. The country was ruled by left-wing parties, which deepened the economic deficit and drove inflation to alarming levels. As a result, Argentina, one of the South American countries with the greatest potential, came to the brink, but the controversial president Javier Milei, whose image was distorted in Europe, saved his country.
“In Argentina, there have been corrupt populist socialists in power for decades, the Peronists. Who gave vouchers, social assistance, increased pensions and salaries from the pen, employed countless people in the state, capped prices and gave subsidies for everything. We know the “recipe”“, writes the economist on his Facebook account.
Obviously, this “recipe”, as Andrei Caramitru calls it, could not mean prosperity, but only a long series of problems. Argentina was, moreover, several times on the verge of bankruptcy and turned to the IMF, but many times even that did not manage to solve its problems.
How Javier Milei saved Argentina
“The result – they have huge inflation forever, poverty, I don't know how many times they have had problems paying their debts. Extreme poverty, corruption and populism for fools.” says Caramitru.
With Javier Milei coming to power, things changed, and the Argentine president managed to right the half-sunken ship. But only with reforms, some painful for the common citizen.
“Milei (an economist by profession, who is really good at this job) was elected to make reforms. And he came with a chainsaw. Cut everything – everything! Social benefits, fake state jobs, state institutions including whole ministries, subsidies and ceilings – everything out, eliminated. Shock and horror! It's extremist! The world will become impoverished! Everything collapses! street unions, we know the scheme“, says the expert.
But not only did Argentina stop its decline, but it started to recover, and today its economy is in a better situation than many states in the European Union, with Romania at the forefront.
“On the contrary. Inflation has decreased and investments have increased – so poverty has decreased – a lot! And the economy has recovered! Yesterday (no – Sunday, October 26) he won 41% of the votes in the legislature (the Peronist opposition coalition took only 25%)“, explained Caramitru.
The Arrentine model
Romania, as well as other European states facing serious economic problems, should follow Argentina's example. Which means reforms. In Andrei Caramitru's opinion, the European Union suffers from socialism, which drags it down economically.
“It is the only solution not only for us, but for all of Europe which suffers from socialism pushed to the point of metastasis. It is the only solution to avoid the complete civilizational collapse”he adds.
Caramitru recommends cutting expenses
At the end, Andrei Caramitru also says what measures should be taken, in his opinion, for Romania to rise up and overcome the seemingly intractable problems it is currently facing – huge inflation, huge budget deficit, lack of investments.
“In Romania, to be clear, it must be like this: One million state employees maximum. 300,000 out. 1,000 UATs, not 3,000. 10 regions, not 41 counties – the rest out. Nine ministries maximum. The rest out. Maximum of 250,000 social workers and only temporarily. The rest up to over a million – out. Antenna increases and special pensions – out. Subsidies for state firms, price caps – out. 1,000 state firms privatized or closed. Everything else is prolonging the disease, treating cancer with lavender tea.” concluded Andrei Caramitru.
