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| Media Headlines 22/03/2011 |
| (2011-03-22) |
| Last updated: 2011-03-23 13:04 EET |
As reflected in the expert studies published recently, the Romanian economy displays a great deal of pessimism. The Romanian Academy's Institute for Quality of Life Research has recently published a study that seems to reflect that attitude. The main ideas in the report were widely disseminated by the national press.
The daily paper Jurnalul National headlines: 'Romanians, the poorest of the EU', claiming that quote “two years after the crisis kicked in, the population is impoverished and demoralized, as 86% of Romanians dislike what the government does. The rapid degradation of the living standard affects the frail middle class, pushing many of them underneath the poverty threshold”, unquote.
The same daily paper quotes the worries of the people who ran the study on the so-called institutional crisis, which, quote ”is manifest in all sectors of social life: education, health-care, police, public administration, even the justice system”unquote. In figures, the picture provided by Jurnalul National confirms the grim realities of the domestic economy: “After 21 years, the GDP is not significantly higher, the relative poverty level is 22% as compared to the European level of 16%, and the unemployment rate doubled in 2010 as compared to 2008, going up from 4 to 8%. The paper concludes, quote: “the Romanian crisis is one of the deepest in Europe” end of quote.
The daily paper Adevarul, in an article titled: “Romanian life: politics and poetry in Romania”, tries to provide some explanation as to the circumstances under which the government took the controversial austerity measures, considered the toughest in the world, such as cutting public wages by 25% and pensions by 15%,-pension cuts were ultimately declared unconstitutional by the Constitutional Court- then laying off people in massive numbers in the public sector, and raising the VAT from 19 to 24%.
The authors of the report accuse the executive that quote “30 years later, they took over and carried to the extreme the tough platform adopted by British PM Margaret Thatcher in the late '70s”unquote. The newspaper explains that quote “we are talking about drastic budget cuts, much beyond taking Romanian out of the crisis” end of quote.
Adevarul quotes another idea from the report: “no measure taken so far helps Romania overcome the crisis”. The authors believe that, quote: “The worst mistake is drastically slashing spending to increase the state budget, starting out from the idea that Romania's state apparatus is oversized” unquote. The newspaper writes that quote “the profound nature of the present crisis is not economic, but political, therefore Romania will come out of the crisis only when the political deadlock is broken” end of quote. The solution does not seem encouraging for Romanians, who, in confidence polls, often put politicians at the bottom of the list.
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