via in-politics Translated by Algora
These are news that should have shaken Romania, or at least seriously worried the citizens. Except that they have a small flaw: no matter how serious they are, they remain almost unknown to the general public, kept in the socket with the weather report, with the chase after a still uncaught thief, you wonder where, with the future job of President Iohannis etc.Let’s review just a few such news from the last few days, which outline a more than gloomy future, news that has barely seen the light of day here and there.
- In a single session, the other day, the Ministry of Finance borrowed 5 billion euros from the international market by selling three tranches of bonds, two in euros and one in dollars. 5.6 billion dollars in one day. For comparison, in 1982, the peak of Romania’s foreign debt, accumulated since the beginning of the 70s, reached 13 billion dollars, for the payment of which Ceaușescu introduced severe austerity for 22 million Romanians, for 7 years.
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Romania’s total external debt (public and private) jumped to 180 billion euros. Every Romanian is in debt, thus with approx. 10,000 euros.
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Romania will register this year an increase of only 1.4%, half of the most recent estimate of the governors, of 2.8%, – the official announcement from the EBRD.
– For the 2021-2027 budget period, through the Cohesion Policy, Romania has allocated 45.1 billion euros, of which 31.5 billion euros are European allocations and 13.6 billion euros are national contributions. At this moment, the absorption rate of European funds halfway through the 2021-2027 budget period is zero, the Fiscal Council says.
– The last request for financing on the PNRR has been blocked for over 6 months.
- A harsh warning comes from the big companies: the American Chamber of Commerce urgently recommends the government, in a press release, to balance the budget and reform the legal framework for attracting investments. “These are the last years in which Romania will have access to major financing for convergence with the EU, but also crucial years for entering a sustainable fiscal-budgetary trajectory”.
– The Fiscal Council warned that Romania’s budget deficit could even reach 8% of GDP in 2024, much more than what the government committed to at the beginning of the year (5% of GDP).
– Rompetrol Rafinare attacks the energy surcharge established in 2022 at the Constitutional Court of Romania and demands more than 100 million euros back from the Romanian state.
- Pepsi Cola is relocating its production from Romania to Greece, until the end of this year.
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The Minister of Public Finance, Marcel Boloș, recently announced that the structural fiscal plan aimed at reducing the budget deficit in the next seven years must be submitted to the European Commission by October 15, 2024. Free Europe has learned that the Romanian Government has asked the European Commission to accept that the plan be submitted only next year, in January. In other words, the Romanians should not find out until after the elections what austerity measures will derive from the recovery plan.
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The Ciolacu government adopted a GEO by which it grants itself a derogation from the legal obligation to take measures to reduce the budget deficit. The emergency ordinance shows that “the provisions of art. 25 of the Fiscal-Budgetary Responsibility Law no. 69/2010, republished, with subsequent amendments and additions, does not apply in 2024”. (Bogdan Tiberiu Iacob – Full material Here)
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