Still no light at the end of the tunnel

A severe austerity plan, the increase in the VAT from 19 to 24% and the 25% cut in salaries, as well as the 20-billion euro loan from the IMF all failed to essentially improve macroeconomic indexes in Romania.

According to all estimates, 2010 may turn out to be the 2nd year in a row that has seen a negative increase. Urged by the opposition to put forth a temporary report, the pro-presidential Liberal Democratic prime minister Emil Boc only postponed breaking good news for next year.

He promised that in 2011, the budget will be designed to cover investments and the equivalent of about 2 billion euros will be allocated for the absorption of European funds.

The prime minister said that the end of hardships was not yet in sight and that the coming months would be decisive as concerning reform consolidation.



‘’I want to assure you that any party that would have governed the country in our stead would have been forced to make the same decisions, which are painful both from a political point of view and also for the 22 million Romanians, but fair and necessary for the country. We have proposed that for 2011, we should first of all fund investment not older than 5 years and limit the number of new investments. We also want to render effective investments coming from European funds by providing their co-financing.’’ said prime minister Boc.


Prime minister Boc’s speech did not sit well with his predecessor, Liberal Calin Popescu Tariceanu. Between 2004 and 2008, before the economic crisis broke out, Tariceanu’s cabinet saw a constant economic growth, which prompted foreign analysts to dub Romania ‘’a central-European tiger’’.



Mr. Tariceanu claims that, in stark contrast with his cabinet, the current government is bankrupt.



‘’I have summoned the government before Parliament today, for a debate regarding the current economic situation and Romania’s socio-economic prospects. As things look like now, there is no prospect. The economy is still on a downward trend and taxes are on the rise. The government has driven the country to dramatic cuts in consumption and investment. This only compounds the economy’s contraction.’’said Mr. Tariceanu.

(Radio România Internaţional, Serviciul în limba engleză).