Alexandru Nazare: The fiscal model used so far has only created an illusion of prosperity

Medium and long-term economic development strategies, based on productivity, reform and competitiveness, were analyzed on Tuesday at a debate organized by the Government in partnership with the World Bank.

Finance Minister Alexandru Nazare believes that the fiscal model used so far has only created an illusion of prosperity; in fact, it has eroded the foundations of the economy, and this must be corrected.

Alexandru Nazare: What Romania is going through today is not a crisis, it is the anticipated consequence and, I would say, necessary in some places, of a deliberate paradigm shift. For too long, our growth model has been based on consumption, fueled by ever-increasing external fiscal deficits.

Romania must reduce its public deficit as quickly as possible and, moreover, it must build a reserve for hard times, to be able to quickly mobilize resources to face crises or new challenges, argued Radu Burnete, presidential advisor.

In his opinion, the state must use its money in several strategic directions.

Radu Burnete: The first is related to defense, the second is related to these emergencies that arise and a financial toolbox is needed to be able to react quickly; and the third area that I see is related to social disparities to increase social cohesion and for investments in education. We need many, many foreign investments. Romania will not be able to grow with domestic capital alone, even if for the first time in history we can say that we have such a thing.

Translated by: Radu Matei