about us | newsletter | contact | archive | members area
Bogdan Nitulescu, Tremend
Cryptocurrencies volatility is a big problem»
  Features:      COUNTRY FOCUS   |   SECTOR ANALYSIS   |

Few signs of a prosperous New Year

As the festive season approaches, we at The Diplomat – Bucharest have another reason to celebrate: our eighth anniversary on the market. It’s an achievement we’re proud of – especially given that many other local businesses have succumbed to the hostile market conditions

December 2011 - From the Print Edition

It seems that these days we are always asking the question: when will the country emerge from the crisis that everyone is talking about? We have been feeling its effects – keenly – for a long time now and we have had enough. We are tired primarily of the economic problems that the crisis has brought, but also because it is quite often used in this country as an excuse, when it comes to cutting or freezing pensions and wages. And freezing prices? Not so much.
And yet, the time has come for the 2012 budget discussions, unfortunately still a budget built on a deficit. The problem is that, like every year, the attention is focused on cuts to investments, education, culture, agriculture, justice and Parliament, while the budget increases for special pensions, for the presidency and intelligence services go by unremarked.
Before breaking down these budget variations further, we have to look at the differences in the sums allocated in absolute value, the exception being the budget for special pensions, where a RON 1 increase is “rude”, to use a term so beloved of local politicians.
It is not possible to make such a fuss about these special pension categories without seeing that not only has the budget not decreased, but it is expected to grow, while at the same, the majority of the pensions – thanks to the billions of euros of debts run up by the Government – remain frozen for 2012, despite the lifetimes of hard work put in by the contributors.
This can mean only two things: either the law was not applied to the special pensions, or the law was poorly conceived and serves no purpose, as not only has the special pensions budget failed to make any savings, but it actually adds to the deficit!
Back to the budget, where there are marked differences between the labor and agriculture ministries. Both ministries are important, given the fact that this year Romania’s agriculture supported the economic growth.
For next year the significant cut will come from the unemployment insurance budget, which will fall to an estimated RON 2.4 billion, from RON 4.4 billion. No bad thing, if the savings made were to be because some of the unemployed people found a job, but, unfortunately, the projections foresee only a slight decrease in the average unemployment rate. This is even more worrying as it is estimated that over 40,000 graduates will form part of this unfortunate cohort next year.
The Government must work out where a RON spent will bring added value. The austerity measures seem like they will never end and will not fully solve the current problems. We’ve cut enough in recent years, and, in principle, there has been enough time to fill all the holes that were sucking in money with no justification.
Obviously some downsizing was a necessary evil. But it is now time for the cuts to be “frozen” – to use the fashionable word among politicians these days – and for the Government to start thinking about development policies.
It seems that money is spent far too easily and for nothing. And we are not talking here about spending on pensions and salaries, which are the normal duties of a civilized state, as Romania claims to be. We are talking about other “obligations”.
As one foreign citizen said when comparing his own homeland and Romania: “In our country they steal as well, but they also do something for the citizen.” In other words, if the money is spent, it should be spent usefully. If there is a clear aim in mind for the next couple of years, we may be able to say that it was worth the sacrifice.
Because so far, let’s face it: except for cuts, the government has not actually come up with a clear, constructive strategy.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  7601 Views
Daily Info
Smart city is not a fad, it's a necessity

In June 2018, the ranking of the most "smart" cities in the world was published. In other words, the most advanced cities in terms of human capital, social cohesion, the econo...

Ondrej Safar, CEZ Group: "Romania can become a hub for international smart solutions providers"

"We are already in the digital age, so the upward trend of implementing smart solutions is inevitable in all areas," he tells The Diplomat-Bucharest. "Especially in terms of u...

Telekom Romania, a strong supporter of Smart City development in Romania

Just like many other countries in the world Romania is now facing an unprecedented growth of the urban population, which can be both beneficial and detrimental for the society...

In the industrial era, the fight was for finite material resources. Not anymore

Now organizations fight and develop themselves for and around their talent. In a nutshell, getting ahead in today's business world is all about attracting and inspiring an e...

Richard Sareczky, Mol Limo: "We look at expansion locations across CEE including Romania"

Consumer mobility behaviour is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-p...

 
 
   
advertising

advertising

advertising

More on Features
Romanian business - Flexibility and agility in a high-potential market

It's anniversary time, with Romania celebrating its national day at a time when its image is coming into serious question at an international level. This month is also an a...

1 Comment

Smart city is not a fad, it's a necessity

In June 2018, the ranking of the most "smart" cities in the world was published. In other words, the most advanced cities in terms of human capital, social cohesion, the ec...

1 Comment

Telekom Romania, a strong supporter of Smart City development in Romania

Just like many other countries in the world Romania is now facing an unprecedented growth of the urban population, which can be both beneficial and detrimental for the soci...

1 Comment

In the industrial era, the fight was for finite material resources. Not anymore

Now organizations fight and develop themselves for and around their talent. In a nutshell, getting ahead in today's business world is all about attracting and inspiring a...

1 Comment

True hospitality in Bucharest

Interview with Lior Bebera, General Manager InterContinental Bucharest

1 Comment

Richard Sareczky, Mol Limo: "We look at expansion locations across CEE including Romania"

Consumer mobility behaviour is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-fo...

2 Comments

Ondrej Safar, CEZ Group: "Romania can become a hub for international smart solutions providers"

"We are already in the digital age, so the upward trend of implementing smart solutions is inevitable in all areas," he tells The Diplomat-Bucharest. "Especially in terms o...

1 Comment