President: aa‚¬A“Romania is still fragileaa‚¬A

The situation in Romania is better than in other countries insofar as the macro-economic balance and the need to borrow money from external markets, said Romanian President, Traian Basescu, during an interview for the public radio station.

However, he urged for caution: “Romania is still fragile,” he said.

Furthermore, all economic analysts do not rule out the risk that the crisis may return this fall and signals regarding the situation of the United States are not very optimistic, Basescu said. Romania is prepared for a new crisis wave, but it will still be hard,” said Basescu.

“We are on a trend to reduce the budget deficit and the aim is that next year we will borrow less so that we will not be as dependent on what happens outside the borders,” said Basescu. He also said that Romania must borrow RON 14.2 billion.

The president also said hospitals and the health insurance system must be privatized. “I hope that in fall the government will forward to the parliament the new Health Law in which the hospital ceases to be just a state unit. The situation in the health system is chronic and will only be solved as the incomes of the population grow and the contribution can increase. It is clear that the bulk of the financing will come from contributions and cannot be made in 2-3 years,” he said.

If the health system does not fulfill its goals, it will not be financed additionally. A sum of RON 300 million will be given now and then the money will be granted as the National Health Institution and the Ministry are making some modifications, said Basescu. “We cannot keep on saying: ‘Spend, do what you wish with the money and come to us because we will give you the difference.’ Romania has one of the smallest contributions from the citizens’ revenues to the healthcare system,” said Basescu.

Basescu did not rule out the fact that some state companies may go bankrupt. “I do not exclude the possibility that some of these public companies may be let to go bankrupt. A list has not been compiled yet, but the government does not have the possibility to pay the debts of the public companies. The fact that the government takes out of trouble any company will be history,” said Basescu.