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Prime Minister Florin Cîțu accuses PSD of fake news, in a message posted on the Facebook page. The prime minister speaks of a letter from the European Commission to the Ministry of Finance, which according to the PSD is a critical position of the European executive and proof that the government is not taking good measures.
„PSD continues the fake news campaign.
For a few days, a false news has been circulating about a letter from the EC to the Romanian Ministry of Finance.
There is only one explanation for this fake news. The letter is in English and this is clearly a barrier for PSD.
What appears on the letter:
- “According to our analysis, the large general government deficit and rapidly growing debt ratio are largely the result of political decisions taken by România prior to the COVID-19 outbreak.”
In other words, last year’s deficit is largely due to pandemic spending. Simple.
- These decisions include pro-cyclical fiscal policy between 2016 and 2018, when the public deficit approached 3% of GDP despite a favorable economic situation, as well as large increases in unfunded pensions that lead to a permanent increase in the budget deficit. .
In translation for PSD: instead of having a budget surplus in the period 2016-2018, it mocked the economy. In addition, it has adopted a pension law that had no guaranteed funding.
- The Commission will reassess România’s budgetary situation in spring 2021 and, if appropriate, will propose further measures under the EDP.
The EC is waiting until spring, after we approve the budget, to have an opinion on the economic situation in Romania.
- This corrective action does not need and should not undermine the efforts necessary to support the health system and the economy in order to effectively combat the pandemic and its economic and social consequences. As highlighted in our previous letter to the Minister of Public Finance Cîtu of September 19, 2020, measures to support recovery throughout 2021 must be tailored to the specific situation of România and must be well targeted and temporary.
I mean, yes, we support you to take action, to significantly reduce the budget deficit, but we understand that we are still in a pandemic and we need additional spending on health.
- We would welcome further efforts by the Government to limit any negative structural budgetary impacts of the measures taken. At the same time, România should avoid the introduction of new measures with a permanent negative impact on the budget balance.
VERY IMPORTANT. It couldn’t be clearer than that. The EC supports the government’s reform efforts (we have already announced some measures and more) and does not support measures that permanently reduce budget revenues or permanently increase budget expenditures. I said that I will not accept such measures and it is good that the EC also supports this publicly.
The letter from the EC to the Ministry of Finance now looks different.
The year 2021 is a year in which we begin to correct 30 years of populist measures against Romanians. We are putting Romania back on the path of sustainable economic development. “Writes Florin Cîțu, on Facebook.
PSD president Marcel Ciolacu wrote this Thursday that “the European Commission is alert that the public debt will reach 100% of GDP and confirms that the Cîţu government will be obliged to take measures.”
The European Commission confirms everything that we have warned since November 2019: the government of the debt that has exploded; zero measures to stop the waste of public money and zero measures to increase revenue collection in the budget, “Ciolacu also wrote.
Publisher: RK
