Ilie Bolojan, about the measures taken by the Government: “They inevitably have economic contraction effects. This is the reality”

Ilie Bolojan declared on Friday, February 13, that in 2026, “under the conditions in which an important target is to maintain a high volume of investments, it will be a year of resettling the economy”.

Asked on Europa FM about the statement made on Friday, according to which the recession was expected for two years, the prime minister specified that Romania, “being an integrated economy in the European one, it is indirectly influenced by the economic situation of the EU”.

“There are two aspects. Given that for years Romania had large deficits, it basically means that we pumped money into the economy in the form of investments and wage increases. That's what deficits mean: stimulating the economy. Large deficits should also have generated more consistent economic growth. This did not happen.

Being an integrated economy in the European one, we are indirectly influenced by the economic situation of the EU, the volume of investments and the structure on which economic growth is based. Our structure was based mostly on consumption and partly on investment. The more productive the investments, the stronger the economic growth. This has been the situation in recent years.

Although we should have had higher economic growth, it means that, often, the quality of some investments left much to be desired. What happened last spring? Our backs were against the wall and we had to take action to start correcting the deficit. In all countries where governments have had to correct deficits, there is no formula that does not include a combination of reducing operating expenses, increasing revenue and increasing taxation. This is the combination. And we put it into practice, but maybe the order wasn't the best.”

“Like any treatment that cures a disease, they can have side effects”

“These measures inevitably have economic contraction effects. This is the reality. Like any treatment that cures a disease, they can have side effects. In the next period, there will be a rebalancing of the economy, in the sense that the import component will decrease slightly and the export component should increase, so that we can reset ourselves economically.

This year, given that an important target is to maintain a high volume of investments, will be a year of resettling the economy. It is a temporary situation. I am not a fan of projecting very optimistic expectations, as has happened for years in the political area.

In the next period, after the closing of the state budget and the completion of the measures related to the administration — the reduction and reorganization of the administrative apparatus, as well as the necessary corrections in the energy field and in other strategic fields — the effects will be absorbed by the economy, and in the second half of the year we will resume economic growth, following which inflation will decrease.

These contractionary measures could not be avoided. This is the truth. I have never denied them and it does not seem normal to me to ignore some evidence that is a direct consequence of these decisions.”

“From the second half of this year we will see that things are settling down. Through the measures that have been taken and that we will take in the next period, on the energy and economy component, we will reset things and create conditions for economic growth, prosperity and predictability.

“If tomorrow you want to build a storage station in Romania, you cannot connect because the land is occupied”

“We have done a lot of things wrong these years. We produce, in total, about 9,000 megawatts in our energy structure. Instead, for connection to the system, documentation and technical approvals for connection (ATRs) were issued for 77,000 megawatts.

Practically, the entire realistic capacity for connecting investments in the energy field has been occupied. If you want to build a storage station in Romania tomorrow, you can't connect because the land is occupied. Some of these investments are made by serious people, but most of them are speculative, “smart guys” type. If you want to connect with an investment today, you need to go buy their documentation.

These are not easy things to correct, because for years these ATRs were issued without conditions or guarantees. This needs to be corrected. After we release this capacity, surely serious investors will be able to implement investments of 2,000–3,000 megawatts. Thus we will be able to increase energy production and lower the price, to have energy at an acceptable level. The system is currently locked.

As we increase production and storage capacity, we will be able to lower energy prices in the coming years.

“If we do these things, we will have a downward trend. It doesn't seem normal to me to advance figures in absolute terms, but I think we can talk about a 10-20% reduction. State-owned companies must operate on economic criteria, and the regulator must come up with clear rules. Currently, when the capacity is blocked, you practically have to go through an “internal customs” to make an investment, which is not fair for the investor, the economy, or citizen.”

“If we don't correct these things, we will definitely hit a dead end”

“Macroeconomic calculation is not an end in itself. The objective is to create conditions for the majority of citizens to have a better life. If we pay 10 billion euros annually in interest on loans, this means the equivalent of the entire “Anghel Saligny” investment program for several years.

If we do not correct these things, we will surely enter a dead end. Think of a family that for years spent more than they could afford, took out loans and credits, and ends up in a situation where they can no longer pay them back. It cannot continue in the same way.

The Romanians are right on one point: everyone must participate in this effort. Clearly, the public sector needs to contribute more. We have to cut costs and the whole system has to bear some of the costs.”

“It was not a scramble for the post of prime minister”

Asked if he took responsibility for the recession, Bolojan says he takes responsibility for the measures adopted, including their effects, even if they may lead to recession.

“This coalition agreed a package of measures discussed for three weeks. Things could not be done differently and I take these measures. It was not a scramble for the post of prime minister. I knew that the measures to be put into practice did not bring either appreciation or applause, but I think we did what was needed for our country, to reset the economy.”

The prime minister also pointed out that the increase in taxes for entrepreneurs is unpleasant, but necessary.

“It is true that certain percentages of taxation, including those on dividends, have increased. However, if we make a comparison with the other EU countries, Romania is still in the bottom third in terms of the level of taxes.

If we want money for health, education and investments, this money can only be collected from the Romanian economy. We had some of the most favorable conditions for micro-enterprises and all we did was to align ourselves with the commitments assumed by all Romanian governments, in order to reach the European average.

What I do not agree with is creating unrealistic expectations for citizens: to pay 30 euros in property tax, but have water, sewage, asphalt, gas, utilities at the gate and good schools. That money doesn't come out of nowhere. Someone pays them. It can be European funds, credits or transfers from the state budget, but it is not free money – someone contributes to it.

If we want a stable economy, we have to find balance. We cannot have only 6.3 million citizens paying CASS and 16.5 million beneficiaries of the health system, but expect it to work perfectly.”

Bolojan: “The temporary technical recession is part of the anticipated and inevitable cost of this transition”

After the National Institute of Statistics announced that Romania entered a technical recession at the end of 2025, Prime Minister Ilie Bolojan criticized the way state resources were spent during the period when the Government was led by Marcel Ciolacu.

He said the economic downturn in recent quarters was not a deep crisis, but the “bill of payment” for changing the economic model – from consumption on debt to investment and production.

“Romania's economic growth in 2025 was 0.6%, in the conditions of the rapid change, in only 6 months, of the economic model that took us with our backs to the wall. We started the transition from a model based on deficit and consumption, apparently generating prosperity, but in fact destructive, to a model based on investments, productivity, export and budgetary discipline”, declared Ilie Bolojan.

According to the chief executive, the temporary technical recession is an anticipated side effect.

“The temporary technical recession is part of the anticipated and inevitable cost of this transition, which will ultimately lead us to a solid economy, healthy growth and real prosperity based on what we produce, not through more and more expensive borrowing.” added the head of the Government.