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| HOW WE CAN OVERCOME THE CRISIS 24/02/2010 |
| (2010-02-24) |
| Last updated: 2010-02-25 14:09 EET |
The main problem is that Romania lost 4.5 million jobs in 20 years, and that is why there are now 6 million pensioners relying on what 4.5 million employees produce. The same report estimates that Romania is going to overcome the crisis in the second half of 2010, but economic growth will be quite slow, standing at 1.2%. The director of the Economic Forecast Institute in Bucharest, Lucian Albu, believes that the Romanian economy is waiting to see what’s going to happen in the EU.
“The most important indicator this year is the budget deficit, and the government has this difficult task of not exceeding the boundary set by the IMF. We believe that this is a very difficult task. This reflects the huge gaps and imbalance in the Romanian economy. The unemployment rate is 8.4%. Another indicator is the growth of the real estate market, which will stand on average at 0%, therefore there is actually no growth, which maintains a state of uncertainty.”
Lucian Albu says there are some measures that need to be taken:
“Cutting budget expenses and reducing the personnel in the public sector, as a result of a serious analysis, in order to avoid further imbalance. Another measure would be to ensure transparency in public spending.”
Also to boost the economy, the PM Emil Boc has announced that the companies that hire unemployed will be exempt from paying contributions to the social security fund for six months, provided that they keep the new employees for at least one year. With this measure, authorities say some 50 thousand jobs could be maintained, in a year when many say that the number of the unemployed could reach one million. Political analyst Sorin Ionita, Research Director with the Romanian Academic Society, draws attention to the way in which the economy is affected by the high frequency of election cycles.
Between 2010 and 2016, for instance, there will be elections for the Romanian and the European Parliament as well as presidential elections. The Romanian Academic Society has proposed a modification of the election calendar and also the conclusion of a pact between the main political forces in Romania, for both the opposition and civil society to play an enhanced role in controlling the allocation of resources, the integrity of their use and in depoliticising the administration.
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