Romania must escape the poverty paradigm if it wants to be a prosperous country, Investment and European Projects Minister Adrian Câciu said on Thursday in reference to the Maastricht Treaty, which states that a nation’s debt cannot exceed 3% of GDP.
Câciu emphasised that Romania needs to shift away from the “poverty paradigm” to foster development.
“No one has analysed the developed countries,” under the Maastricht Treaty Câciu explained at a conference organised by News.ro, arguing that he doubts “Germany, Holland, France, Italy, or Spain have had a 3%, 7%, or 10% deficit.”
Romania has been under the excessive deficit procedure since 2020.
He explained that Romania’s efforts to meet the 3% deficit target have always led to cuts in investment, leaving key public systems underfunded. While Romania has accepted this path, Câciu stressed the need to recognise the true cost of maintaining a 3% deficit.
On the other hand, he said that there has been no reduction in consumption.
The Romanian government closed the first two months of the year with a significant deficit of 1.67% of GDP, totalling 29 billion lei, official sources told Profit.
Last year, the Fiscal Council warned that the 2024 budget deficit could significantly exceed that of 2023.
(Cătălina Mihai | Euractiv.ro)
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