How fast will the Romanian economy recover?
The Romanian authorities are convinced that Romanias economy will recover at a fast pace after the current global health crisis.
Roxana Vasile, 06.05.2020, 14:00
Romania’s right-wing President Klaus Iohannis and the Liberal government in Bucharest are convinced that Romania will come out well after the crisis caused by the coronavirus pandemic, and that the economy will recover fast, although it is expected to report a steep downturn. Activity has been resumed these days in several economic sectors. Moreover, according to the finance minister Florin Cîțu, the government’s support measures, such as the IMM Invest – SMEs Invest program has helped the business environment.
Florin Cîțu: “Differently from 2008, we managed to cover the furlough expenses from the budget, we have not made companies pay for their employees’ furlough. This means that companies have been left with resources than can be used. The government has taken these two measures: furlough and the SMEs Invest program, which is also valid for big companies, which, together, have ensured the production capacity. Jobs have not been lost, people can return to work and companies have not been shut down as happened during other economic crises.”
President Klaus Iohannis also talked about an economic recovery program at a meeting with the business environment representatives. He said public investments in infrastructure should be massively increased, and the focus should be on Romanian products.
Klaus Iohannis: “A fundamental target of the economic recovery plan that we are currently working on together with the government is the massive growth of public investments in all types of infrastructure, energy, transport, health infrastructure and so on. We are practically talking about a project for Romania’s reconstruction. Romanian quality-products are themselves a resource, which we are going to better promote, and we will support significant investments in strategic economic sectors, such as agriculture and the food industry, energy and health security.”
The economic recovery plan has not managed to persuade the opposition, though. Here is the spokesman for the Social Democratic Party, Lucian Romaşcanu: “We remind President Iohannis that Parliament, which he has harshly criticized, voted a series of economic and social measures, such as the deferment of payments on loans without interest, the postponement of utilities and rents payment, the granting of concrete fiscal facilities for companies or the approval of transfer in lieu of payment. The President returned some of these laws to Parliament, the Liberal Party challenged others at the Constitutional Court and for other laws, the president is delaying promulgation.”
The National Trade Union Bloc appreciates the president’s initiative to invite the business environment representatives for talks on economic recovery, but urges the president to also show availability for dialogue with the workers’ representatives. (translation by L. Simion)
