Romanian minister unpacks ‘austerity plan’

Romania’s Finance Minister Marcel Bolos said he is introducing prudent spending measures to put the country on a development path, despite potential negative consequences at the ballot box, in a speech in Beclean, north Romania, on Friday 19 August.

Bolos, a member of Marcel Ciolacu’s Social Democratic rotation government, in power since 15 June, opined that “Romania is at a crossroads and the government’s controversial decree now publically referred to as an ‘austerity plan’ involves the decentralisation or regionalisation of various public services.”

According to Bolos, “There are elements of deep reforms that must be taken now, not later, in order not to avoid delicate situations for Romania. The Romanian government, as the prime minister has said many times, is committed to this path of deep reforms and bringing public services closer to the people. This is truly a turning point for Romania.

“We must have fewer bosses with money: there are over 16,000 leaders overseeing public finances, or loan officers, as we call them. The world doesn’t really understand, but I’m telling you that they should have less power over the public purse.

“We must have much less bureaucracy, we must have much better consideration of the use of public money. You cannot indefinitely demand taxes from a disillusioned man who pays his labour taxes and social contributions, but then have public expenses scandals,” according to Bolos.

Pre-election austerity talk risky – minister admits

The next Romanian elections must take place no later than March 21, 2025, three months after the conclusion of the current term, but, it is likely that they will be slated for the latter part of 2024.

Bolso said “Even I did not think that we were with such a weight hovering over Romania, but I am convinced that through the wisdom and consideration with which the Romanian government is trying to do things, at great risk.

‘In the pre-election year, reforming is an act of courage and patriotism at the national level, which must bear fruit. I believe that these decisions that we will take and that we cannot postpone for too long will put Romania, in time, on a new path of development and if there is to be a correct measure now, it is through investments.” He underlined his support of both public and private business investment.

‘Unfortunately, in addition to these, we must recover from an economic and financial point of view, and you see that many EU member states have already announced their recession and we, the government, must take every necessary measure,” Bolos added.