Romanian Finance minister: Tagging Romania insolvent is irresponsible, anti-nationalistic  and make markets anxious

„Statements according to which Romania would be insolvent are not only irresponsible, but also anti-nationalistic and make markets anxious. This is not true, Romania does not face liquidity problems”, Romanian Finance minister Sebastian Vladescu declared in a press conference on Wednesday, February 24 2010.

The Finance minister adds that „for those who wonder what the Government and state institutions are doing: we’re maintaining the macro-economic stability” and he indicated that „Romania’s macroeconomic balance has been profoundly disturbed in 2007-2008. Unfortunately, just as many countries need to act in this tough moment, Romania too needs to adjust its spending”.

Other statement made by Finance minister Sebastian Vladescu:

• We have a budget that allows us to work, and I would like to correct an absurd statement which has begun to circulate, like Romania running into insolvency: this is not true.

• In Romania, the spending covered by the state is above what we can afford.

• It is obvious that in Romania the budget spending is far from being efficient, beyond what we can afford and beyond what is sustainable on long and medium term.

• This prevents us from doing what the citizens request: investments in infrastructure, agriculture, more investment funds in the medical system, in culture and more money for local councils.

• The social and salary spending are huge. This country will never evolve if it will not secure money for investments. A country that doesn’t invest will not be able to pay higher pensions and salaries.

• We know the needs of the Romanian people, we do not live in a crystal tower. It is a very fragile balance between pensions and salary spending and investment spending and we’re trying to maintain this balance.

• Any pension increase would mean transferring money from one economy sector to the other. Money transfer to the pensions’ budget costs us seven million lei.

• We’ll manage to pay pensions and salaries, no Romanian citizen needs to worry. Romania is a balanced, solid state, with economic issues that will be solved.

Work minister Mihai Seitan:

• There is no problem with the pensions this year; they will be paid.

• The pensions’ law is debated today in the Senate.

• The pensions’ system needs to be reformed.

• The unemployment rate in January is 8.1% and remains constant.