Prime Minister Ilie Bolojan, about the entry into technical recession: “The fundamental problem was not the lack of money, but the way it was used”
After the National Institute of Statistics confirmed Romania's entry into a technical recession at the end of 2025, Prime Minister Ilie Bolojan sent a message criticizing the way state resources were used during the period when Marcel Ciolacu was at the head of the executive. The Head of the Executive claims that the economic decline of the last quarters does not represent a structural crisis, but the “bill of payment” for the radical change of the economic model, a transition from consumption on debt to investment and production.
Ilie Bolojan, attack on his predecessors. Photo: gov.ro
The Prime Minister explains that the statistical data, although apparently worrying, reflect a necessary correction. In his opinion, maintaining the old economic model would have led Romania to a total deadlock, and the current figures show a painful but healthy long-term stabilization.
“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.
Bolojan points his finger at Ciolacu
To put the current situation in context, Ilie Bolojan makes a comparison with the year 2024, when Marcel Ciolacu was at the helm of the executive. Bolojan points out that, although the year was marked by massive spending, the economic results were below expectations, and the revised statistics show that Romania was in a technical recession since the first part of that year.
“To properly understand Romania's current economic situation, it is important to look at the years 2024 and 2025 as part of the same process. 2024 was an atypical year. We had a high budget deficit of almost 8-9% of GDP, a significant external deficit of 8.2% of GDP, and yet modest real economic growth, below 1%. Normally, such a fiscal stimulus should have generated a much stronger growth. This did not happen.” explained the prime minister.
The cause of this failure, according to Bolojan, was the misdirection of money. Funds did not go to development, but flowed to imports and to cover inflation.
“An important part of the money spent in 2024 was directed towards current consumption, rigid spending and the compensation of some social and inflationary pressures, not towards the real development of the economy. And the strong consumption came from more and more imports. High inflation absorbed an important part of this strong fiscal impulse. In other words, in 2024 we spent a lot, but we grew little. It seemed that the situation was favorable, but the economic imbalances were increasing”, Bolojan specified.
“In July 2025 the relaunch began”
The Prime Minister identifies the middle of 2025 as the moment when the emergency brake was pulled. The fiscal correction measures applied in July, which entailed a harsh adjustment of 1% of GDP, stopped the slide, even if they generated social costs.
“In July 2025, the context changes fundamentally. The recovery has started. We made a correction of about 1% of GDP, a significant effort that generated social costs and discontent. I wish there was a way to avoid them. Theoretically, such an adjustment should have generated a sharp brake on the economy. However, the data shows that in 2025 economic growth remains around 0.6%.”
the official said.
The conclusion drawn by Ilie Bolojan is that Romania's problem was not the lack of financial resources, but their waste.
“This shows that the fundamental problem was not the lack of money, but how it was used. Fiscal consolidation is not an end in itself. It is an essential condition for stability, credibility and sustainable development. This transition involves, temporarily, a period of economic contraction. It is a necessary cost to build a stronger and more competitive economy. We are not going through a crisis. We are going through a period of economic correction necessary to have a more stable and stronger economy that brings prosperity in the long run,” concluded the prime minister.
Romania has officially entered a technical recession
According to the National Institute of Statistics, in the 4th quarter of 2025, compared to the previous quarter, the Gross Domestic Product decreased by 1.9%. Compared to the same quarter of 2024, the Gross Domestic Product registered a decrease of 1.6%.
Also, the INS significantly rectified the previously announced data, with decreases of -0.4% for the first two quarters of 2024, a technical recession being recorded in that period as well. Also, the first quarter of 2025, initially announced with an increase of 0.1%, was corrected to -0.6%.
