Romanian President Reiterates Need To Cut Public Spending To Avoid New Loan

According to Basescu, should the Government fail to take cost cutting measures in the two money-sucking sectors of public salaries and pensions, Romania might have no choice in March 2011, but contract a new loan which, he frowned, would go into consumption.

Basescu reiterated the need to do away with „all social welfare programs that simply incite to laziness and indolence,” adding that Romania cannot borrow money „over and over again” to pay salaries and pensions, „the way it happens now.”

The head of state stressed he cannot give orders to the Parliament or the Government, as they ought to know that, as head of state, he is asking them to keep the country away from consumption-induced debts. He went on saying that the economic recovery should be made gradually, „by cutting public spending and expanding the taxation pool.”

Basescu also said there are certain issues and problems between him and the Executive triggered by the fact that public spending cuts seem to exist only in theory, as nothing concrete actually happens and costs are on the rise.