Traian Băsescu does not believe in the intervention of the Government on the fuel market. “Individual consumers should also think about public transport”
Former president Traian Băsescu declared, on Digi24, that the Government should not intervene to reduce fuel prices, except in exceptional cases, for areas such as agriculture or transport, as the costs would be transferred to the budget deficit. At the same time, Băsescu recommended Romanians to give up their personal cars and use public transport.
“I say this with all neutrality and I don't want to attract the hatred of those who hear us, but I think the most correct solution is for the Government not to intervene, to let the market set the prices. An intervention through which the Government would come with contributions, would lead to a deficit. So the Romanians would also pay for it and the Government would have to borrow more money than it proposed”, said Traian Băsescu.
He said that intervention should be made only exceptionally, for areas such as agriculture or transport, with a reduction in excise duty, Băsescu pointing out that the reduction should also be granted to railway carriers, not just road carriers.
“Normally, the right solution that will not transfer costs into the deficit is to go by market prices, let the Competition Council do its job and not have speculation and artificial prices. It would be the right solution that does not mortgage anything for the future,” continued the former president.
Involvement of the Competition Council
On the other hand, Băsescu complained that the increase in fuel prices is too high and occurred too quickly, given that the mandatory fuel reserves were made at a time when prices were much lower, which is why the Competition Council should intervene.
“We have a happy, optimistic Minister of Energy, that the prices do not increase, that they do not reach 10 lei. We have reservations, but after his three months we should not have any worries. I doubt, maybe in moments like now, individual consumers will also think about public transport”, commented the former head of state.
Băsescu said that inflation, including that generated by the increase in fuel prices, “helps the budget”, the strike of huge costs with interest on the “reckless loans” of recent years, costs that will amount to 60 billion lei this year.
“At this time, Romania had to have a precautionary agreement with the International Monetary Fund, it is not known what the developments are. So that, if necessary, I do not go to 8-9% interest rates on the market, if the global situation deteriorates, I have a safety net with loans at lower interest rates”, said Traian Băsescu.
Prime Minister Ilie Bolojan declared, on March 15, that the fuel price increase in Romania is much lower than international quotations or Western European countries. Bolojan says that the Government will intervene if “things do not calm down”.
“In the conditions where things will not calm down and we will reach an increase that will already become a level that will actually create problems (…) we will have to see what can be done, in order to calm things down”, mentioned Ilie Bolojan.
