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Nouriel Roubini: one of the challenges of a country as Romania is that the ‘brains’ have left
The economist Nouriel Roubine stated on Thursday night at the show Observator (Antena 1) that
one of the challenges of a country such as Romania is that ‘ the brains’ have left, his
recommendation being that the state invests more in human capital which is still in the country.
From his point of view, Romania may have much more structural reforms, institutional reforms,
judicial reforms and other kinds. He considers that Romania needs a plan for the next years. As
regards taxes, Roubini stated that they should be higher, there is a need for an improvement of
the collection system and the reduction of fiscal evasion.
He admits that, due to the electoral period, there is the risk to have ‘more populist’ measures. ‘ There is the risk that, when you have elections., you adopt policies which are more populist. The good news is that a country as Romania starts with a level of the public debt lower than the average at European level or the euro zone, less than 40% of the GDP, so that country has fiscal space. But, it is also true that the country has a huge budgetary deficit and a deficit of the foreign debt, even before the crisis. It is necessary to have a plan for the next years, to have fiscal consolidation’ the famous economist says.
He says that, before a possible growth, you must improve the system of collection and the fiscal evasion should be reduced.
‘Some people and some persons pay their part of taxes and others avoid it, legally or illegally. The improvement of the collection system of taxes and the reduction of fiscal evasion would be the right policy before deciding to increase taxes for the others. As some pay much and others avoid it’ Nouriel Roubini said.