Social-Democratic leader: Anti-crisis and economic stimulus measures are failing and need to be changed

Luni, 10 august 2009, 18:15 English | Politics

President of the Romanian Social-Democratic Party (PSD) Mircea Geoana, who's in the run for presidency this year, expressed his opinion on the IMF's delegation conclusions. "It's obvious that the anti-crisis and economic stimulus measures are not working. There's a need to change the economic policy strategy, Geoana declared on Monday. According to him, the economic contraction risks becoming even more severe if the Government continues to apply the same economic policies.

Geoana went on to say that the current economic policies might put a dramatic spin on Romania until September, when the next meeting with the Fund's representatives is scheduled for a third instalment of the bailout package loan. The PSD leader was pleased to find that the pensions will increase.

Mircea Geoana stated he was against massive redundancies, whether in the public or the private sector. But he agreed with the reduction of the income spending, made on quality standards, not on arbitrary criteria. "In any case, the central and local administration apparatus is extremely inefficient and spendthrift", he added.

Geoana welcomed the reduction of the minimum tax. Talking about the Central Bank's measures, he said that despite BNR's decision, "the companies are not enjoying access to credit. Unfortunately, it is still the Minister of Public Finances that borrows money from banks, instead of companies. This is the biggest loss at this stage and the first instalment did not meet its targets.

Referring to PDL's claiming that the Government assuming responsibility for the new laws in Education is vital for the future of the governing coalition, Geoana said this is a pretext to break the coalition. "The true test of this coalition is good governance and the response to crisis. At this moment, a governmental crisis is the last thing that we need", Geoana declared. He concluded: "The Romanian educational system was damaged by changing the rules of the game with each minister".