The austerity measures need to be continued in 2011, says president Basescu

President Basescu has declared, during a televised show broadcast by the national television channel TVR 1, that Romania is a “second-hand country” if it keeps resorting to loans in order to pay pensions and salaries, and not in order to support future investments. Austerity measures will need to be continued in 2011, as the pension fund deficit alone will be of EUR 3.5 billion.

Basescu put part of the blame for the economic situation of the moment on the 2007-2008 governmental decisions. The pension deficit will reach EUR 4.5 billion after 2012 and Romania will still need to make loans in order to cover it. Romania’s most important problems of the moment are its very high state and social expenses.

During the televised discussion, the Romanian president criticized how Romanian politicians did not even wait for the IMF press conference to end and started making declarations about next year’s potential salary increases.

Basescu also took into account the situation in which the Romanian medical system currently finds itself and how more and more local doctors are leaving to work abroad, for better-paid positions, with superior work conditions. The president declared that it is everyone’s right to seek better work conditions and that he realizes that Romanian doctors are underpaid, yet no hospital seems to currently hold unfilled positions, the president continued. The IMF has asked for EUR 2 billion from the GDP to be directed towards local hospitals, Basescu specified.

The Romanian president underlined the idea the current government’s decision need sustainment, as there are no other options. Personnel reductions are a necessity and dismissed state employees will need to adjust to the current situation and perhaps even consider different areas of expertise for employment.