The outbreak of a former Minister of Finance, to politicians and governors: “The very large deficits were not created by the citizens. This is one of the great confusion”

Daniel Dăianu, the head of the Fiscal Council and former Minister of Finance, criticized the idea induced, in these weeks, in the public discourse that the citizens were the ones who produced the budget deficit.

• “The misunderstanding of the situation we are in is earthquake! We promised and did not do and we are no longer believed by the European Commission nor by the financial markets,” says Dăianu.

“We are talking about the financial education of the citizens. First of all, those who govern financial education must have, because these very high deficits have not been created by the citizens. Let us understand each other. This is one of the great confusions. Every week a seminar is organized on financial education. The annual conference of financial-banking analysts, held on Wednesday, in Bucharest.

Dăianu: I promised and did not. Slogans don't work

Another major confusion, according to the quoted economist, refers to the repeated promises of Romania's governments to improve the collection of funds and to reform the state. These are considered “slogans” or, in economic language, “non-start”. They are no longer credible in front of financial markets, rating agencies and European Commission.

Dăianu warns that Romania will not be taken seriously with such a package of fiscal measures.

“There were some who were talking about how we will increase the absorption of European funds and we will collect better. Well, this promise has been made by the Romanian governments for years! Nobody looks at us if we come up with such a package!” Says Dăianu.

“The sand comes out of the hourglass”

He also accuses the governors of not understanding the seriousness of problems and the emergency in taking measures.

“The situation burns and we do not have time! The sand comes out of the hourglass, this is the dramatic reality. And it all takes place in a Romania with a very complicated evolution, with a divided society, with a high political risk, with a tense social situation, with a crisis of the cost of life and with great discrepancies between the regions and the citizens. Dăianu.

“We have a pretty fractured dialogue with the European Commission and this must be said!”

Dăianu believes that politicians and those responsible for public finances did not understand the crisis well enough, which he says “we did it alone”.

He insists that cutting expenses is not impactful on economic growth, as some economists say, but it is essential to reduce demand in the economy. Regardless of whether it is achieved by reducing expenses or increasing (taxes), the measure is required.

“We have to cut this budget deficit and we do not have time. The financial markets do not have patience with Romania. You cannot come with such a package in front of investors, in front of the rating agencies and in front of the European Commission. However, with the Commission we have a pretty fractured dialogue and this must be said public!”.

“The misunderstanding of the situation we are in is earthquake!”

“We don't even have a fine adjustment of the measures … How to tell the external funders now: you know, we need time to do impact studies …? The lack of realism is … misunderstanding the situation we are in!”

Daniel Dăianu warns that all Romanian citizens will pay for “the disobediences of those who governed”. He also emphasizes that fiscal policy should not obstruct monetary policy, because the National Bank cannot solve the problems generated by large deficits alone.

“The economy of Romania was treated with morphine”

“We pay for the disobedience of those who governed, but we have nothing to do: you cannot divide Romania between those who governed and made nonsense and the rest of the population. All Romanian citizens will pay!

The economic prospects are bleak, in Dăianu's opinion: Romania will feel a “awakening to reality” with the drastic diminution of European funds and the disappearance of PNRR.

“We will have a awakening to reality when we will drastically diminish the European money and those from the multiannual financial framework and when the PNR will no longer exist. The Romanian economy was treated with morphine. It worked through this European money available … and when they will no longer be, we will have a potential GDP fall, a fall rate,” National.

The ANAF must be deployed

The former Minister of Finance says that a budget rectification is “mandatory” until June 30, and to combat tax evasion, the ANAF must be deployed.

“I think that a budget rectification is mandatory until June 30. This budget rectification is based on the package of measures that will be put into operation. We have no choice! practiced by small and large companies ”, concluded Dăianu.