Living on loans, ‘impossible in Europe’

President Traian Băsescu said at a press conference that Romania must take a very difficult decision against the aspirations he has had since our country joined the European Union.

Băsescu said that, contrary to what the newspapers have been writing, no agreement was signed in Brussels, there was only a negotiation among political leaders.

‘The new form of the treaty, which was discussed ​​at the last European Council, represents a compromise that includes the idea that one can not ensure the welfare of the country from loans’, Traian Băsescu said.

He said that the two documents adopted on Monday have a special significance: the final form of the treaty and a statement on assuring employment.

Only 25 out of 27 states have agreed to adopt the new treaty, the Czech Republic and the UK will not adopt it.

The political class must be responsible, both the party in power and the Opposition have to decide whether or not Romania will go along with the decision of the European Union.

‘We face to make a fundamental choice: what our children will be left with. If we decide to leave them a house, we choose to work hand-in-hand with Europe ’, the president said.

Measures to create jobs

Băsescu said that this statement represents a commitment on strengthening the measures of economic growth and employment development.

The President said that the document sets out three priorities, including stimulating the labour market with special focus on young people, strengthening the internal market aimed at reaching an agreement by the end of the year, regarding the simplification of public procurement rules and the third stimulating economy, especially by financing small and medium enterprises.

‘A country like Romania, which has not yet spent all the funds allocated by the EU may use these funds as collateral for loans taken out to create jobs’, Traian Băsescu said.

The treaty adopted in Brussels is subjected to the Supreme Court and any violation will be punished by it.

‘The treaty is merciless and sanctions are 0.1 percent of GDP. For Romania the saction would be 130 million euros. The structural deficit must be 0.5 percent’, Traian Băsescu added.

The lowest debt per inhabitant in Europe

‘Romania has the lowest debt per inhabitant in the European Union, 97.9 billion. The public debt amounts to 22 billion and the private debt to the rest. If no bank is faced with collapse, the state will have to problem with the private debt. The Romanian banking system is solid’, the president mentioned.

‘We might say we have to pay only 22 billion, but in Europe the entire debts is included in the calculations. Each Romanian people has a 4 570 euros debt’, Traian Băsescu said.

The President said that the Romanians are not facing a future of austerity.

‘The solution is not to get deal right away with the huge debts. So, I repeat, do not want you to say that the president suggests people should pay the debt in two years or three years’ time, like in the old days. No, in 50 years’ time. Despite this debt we can still make beautiful progress by rolling it, like we do today on the international markets. This is an extraordinary starting point’, Traian Băsescu said.

Translated by: Denisse-Meda Bucura
MA Student, MTTLC, Bucharest University