Romanian President Says Govt Debt Growth Must Be Stopped

Romanian President Traian Basescu on Wednesday called on Cabinet members to put a cap on government debt growth, saying Europe is still struggling with the crisis and some states are likely to enter a downward spiral because of state debt.

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"Europe is still in crisis and more states are likely to experience slippages. We need policies to stop the increase in government debt if we want an optimistic view of the future," Basescu told a government meeting.

The head of state referred to Ireland, a state in danger of defaulting over its weak banking system, because the government may be unable to continue supporting the banks.

"This must be considered an alarm signal. We are in the middle of a government debt crisis," Basescu said.

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