President Basescu: Demands made by ministries may push the budget deficit to 9%

„We need to adapt the state budget very soon”, said Romania president Traian Basescu during the Romanian Employers’ Association Conference, on Friday/ The head of state emphasized that „clever, efficient and trustworthy” measures need to be adopted.

The main statements made by the president, in brief:

– The state budget must be adapted quickly;

– While the government sees it can accept a maximum deficit of 2%, the demands made by the ministries may push the deficit towards 9%;

– The markets are contracting, mainly in exports, the second important problem is the financing of the economy. In both areas, the economic crisis is being felt;

– The banking system in Romania is solid, but is no longer fueled with cash by the international banking groups;

– Due to the lack of foreign financing, all the pressure is on the national currency;

– The exchange rate is the third channel in which the crisis has effects;

– The fourth channel is the investors’ confidence, which diminished not only for Romania, but for all 12 states that joined the European Union after 2004;

– The current account deficit was 14% in 2007 and 13% in 2008;

– The real economy acted responsibly, the Government acted irresponsibly in 2008; the Government contributed with over 2% to the budget deficit;

– The new Government must take into account the debts, which are – in my opinion – the main priority;

– The economy is blocked by the Government;

– The Government must pay its invoiced debt of over 725 million Euros and not invoiced yet of 300 million Euros;

– The public institutions have unpaid debts – invoiced or not – of over 2 billion Euros;

– The institutions must pay their debts until the middle of March, in order to ensure the cash for companies;

– Public administrations also have to pay their debts;

– Another priority is the management of European funds, a resource that is not efficiently used yet;

– We received 1.85 billion Euros in 2007-2008, we could have used 3 billions;

– We didn’t spend the money for two reasons: the lack of credible projects and the excessive bureaucracy;

– We may benefit from 5.9 billion Euros in 2009;

– This money is the real source for Romania’s evolution in this period;

– The state system must help the investors, not impeach them;

– Transparency is a key factor in the fast use of money;

– The public procurement law must get rid of all bureaucracy;

– We don’t give up our target to adopt the European currency in 2014.