PM Emil Boc: we cannot talk about the collapse of the capitalist system or of the market economy but we can talk about its flaws

Romanian PM Emil Boc declared in an interview for Radio Romania that the current global economic environment does not reveal the collapse of the capitalist system but only its flaws. Boc explained that the economic crisis is not a new problem for Romanians nor for the world, for that matter. He declared however that this crisis is the worse in the last 60 years.

Here are the most important declarations:

• Unfortunately, Romania did not save up money in its economic growth period, like the 2008 economic boom when we spent more than we produced even though the economy went well

• this year spending for pensions, salaries and allocations will be higher than in 2008 given the fact that the economic growth is negative and the government needs to pull up an exceptional effort to maintain a balance

• i don’t believe that the return to Communism or anything similar could represent a valid solution. Communism said everything it had to and collapsed mainly because it breached basic human rights or freedom and property. Such a system is doomed to fail

• it is obvious that the capitalist system is not without flaws but it is the best solution at the moment

• all global experts who were unable to predict the world crisis now claim to have valid solutions

• Romania will receive some 6 billion euro from the European Commission, which will reach the state’s treasury, in the Finance ministry to finance the budgetary deficit

• Romania will receive some 6 billion euro from the European Commission, which will reach the state’s treasury, in the Finance ministry to finance the budgetary deficit

• We hope that the economic environment will not pressure us to pay, from this money pensions or salaries

• We are doing everything in our power to support those with low incomes

• By the end of the year, the government plans to adopt three important laws: on fiscal responsibility, unique salary schemes and pensions

• Everything that the government approved through an emergency ordinance was discussed with both the European Commission and the IMF. The budget adjustment was accomplished by operating spending cuts

• I urge the Parliament not to pass the special pension requested by Parliamentarians. I hope that they will find a legal solution to stop such a measure. We cannot urge the population to cut costs while Parliamentarians increase spending.

• The lump sum tax will be a measure to counter fiscal evasion. It is normal that many are dissatisfied with the measure if there are people who have never paid anything so far

• Finance ministry data shows that in Romania there are a lot of companies which work on negative profits but their owners have luxurious cars and spend time abroad. How can they explain this?