RSS
Daianu: the vaccination of the population for Covid helps the economic recovery
The vaccination of the population for Covid helps the economic recovery, which is a very difficult one, non-uniformand with damages in time, shows a press release sent by Daniel Daianu, chairman of the Fiscal Council. In a press release they mention that this text does not include institutions necessarily with which the author is affiliated.
In his opinion, the vaccination of the population helps the recovery, but the economies are still suffering. That is why, the fiscal rules stay ‘disactivated’ in the EU during the period 2021-2022. The GDP coming back at the pre-pandemics level is expected in some states in the EU this year, in others in 2022. But it will be a difficult recovery. With damage in time,with changes brought about by new technologies and effects of the climate change.
This is the context where the economy moves which, by comparison to the other economies in the EU started the war with the virus Covid-19 with a budgetary deficit of over 5% of GDP, the highest in the EU. In 2020,the cash deficit ( cash vs.outflow) of the public budget was 9.79% of GDP included in the European framework.
For 2021, the government targets at a cash deficit of 7.16% of GDP (ESA of 8.23% of GDP) which shows the start of the macroeconomic correction , which was postponed by the pandemics. The beginning of the budgetary correction,which was showed by the Fiscal Council as well (CF). CF presented the share of investments, which would go to 5.5% of GDP this year.
There are unclarities for budgetary income ( which include fiscal and non-fiscal income) which, according to the budgetary fiscal strategy ( SFB) would be around 31% of GDP until 2024, the period which corresponds to the correction of the budgetary deficit t 3% of GDP ( cash and ESA), Daianu says.