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Ionut Dumitru (Fiscal Council): the European Union has two speeds, but the Romanian economy grows at three speeds

The chairman of the Fiscal Council Ionut Dumitru presented on Tuesday an analysis in which the Romanian economy is presented as being charactised by the discrepancies between the rich regions and the poor regions, showing that Romania grows at three speeds.

‘There are big discrepancies with rates of even 1 to 5 between the poor areas and the rich ones. The GDP per inhabitant is several times higher in Bucharest and in such counties as Cluj, Brasov, Timis, Constanta or Iasi against Vaslui or Botosani. And this disparity deepened in the last years, increasing with 20% in some cases’ said Ionut Dumitru.

When referring to the situation of the state budget, the chairman of the Fiscal Council showed that the estimates of the European Commission show ‘ a budgetary deficit of 3.6% of GDP in 2017 –the highest in the European Union – and at the same time, budgetary collections of only 25.4 % of the GDP in 2017 – the lowest share in the EU’.

‘We have a non-sustainable economic growth where the advance of 4.8% in consumption contributed with 4.8% and investments with zero’ said Ionut Dumitru. He said that according to him, ‘ there are no fiscal relaxation which could self finance, any relaxation has a negative budgetary impact’.

Ionut Dumitru participated at the conference ‘ The gap between the Romanian economy and the productive Romania’ organised by the administrators of the cursdeguvernare.ro site.

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