E for Economy - Auslandsbüro Rumänien
What questions must a social market economy answer today? To what extent does the economy still represent an identity-forming feature for Romania's politics? And how does the country benefit from the bubbling entrepreneurship in the IT and software sectors, which operate globally but are taxed locally? Members and sympathisers of the National Liberal Party (PNL) discuss together with scientists and entrepreneurs from Bucharest.
Sustainability of Romania's fiscal policy
How can Romania's public spending be reduced?
Romania's Ministry of Finance recently announced that significant cuts in budgetary spending will have to be adopted. The country has been running an excessive budget deficit since April 2020, which the local ruling coalition wants to reduce by 2024 at the latest. However, over-taxation, but also cuts in salaries and pensions are to be avoided.
Economic professors, experts, economists and politicians are invited by the KAS to Romania to discuss possible measures to save the budget. Calculations and reports about a "budget gap" of 15 to 20 billion lei (about 3 to 4 billion EUR) are circulating in the media.
Context: In the first quarter of 2023, expenditure on goods and services in the consolidated budget increased by more than 17 % than in the previous year. At the same time, the number of filled positions in public authorities and institutions increased by more than 9,000 in March 2023 compared to the same month last year.