PM Emil Boc: EC might launch excessive deficit procedure for Romania
Should the procedure be launched, the most important sanction is that Romania could be deprived of the European funds, PM Boc said. For this reason the government decided to request back the unspent money allocated by the former government to the local communities. Boc accused that, despite an economic growth of about 8% in 2009, the budgetary exercise ends with 5.2% deficit.
For these reasons, the 2009 draft budget estimates a budget deficit of maximum 2% and 20% of the revenues are allocated to investments. Boc declared that Romania was undergoing an economic crisis that has yet to see its peak and that in his view the only solution was to create jobs by investments.