"The Government lied". Elsewhere in the news, Romanian Work Ministry stated minister Mihai Seitan had no clue about the cut in pensions before President Traian Basescu announced it. Last but not least, Romanian ex-diplomat Silviu Ionescu remains wanted internationally.
"The Government lied", Romanian Central Bank (BNR) Governor Mugur Isarescu said, Romania Libera informs. If the public sector is not put through reform, Romanians can expect tough years, even with the economy recording positive figures and the Government lied when they said there was an alternative. An economic recovery is almost impossible in Romania this year and even if it happened, it would do more harm than good on a long term, and that's because the plus would actually be a stagnation and because authorities have not yet decided how to get involved in the economy.
"I'm worried about the quality of the public debate, which insists on a social state with low incomes. This does not exist anywhere in the world", BNR governor Mugur Isarescu declared. He stresses that it's high time authorities decided if they wanted a social state or one with minimum economic involvement, otherwise Romania will stagnate, namely a very slow economic growth period, he believes.
In his opinion, reducing the budget deficit by accumulating debts towards the private sector or by cutting investments is a very bad idea. On the 37% of the GDP incomes, Isarescu says: "The right word is 'lying'. It's not about how much has been done, but how much is going to happen. (...) The budget deficit can fluctuate, but if you reach your targets by state debts, it will make the worst solution".
He says one cannot go on talking about pensions when a family’s average income is lower is below the average pension. "We cannot talk about solidarity without taking into consideration the other party a
