RSS
President Iohannis: growth based on consumption is not sustainable. Investment must be encouraged‘
Growth based on consumption is not sustainable and the investments should be encouraged, stated on Friday president Klaus Iohannis after premier Mihai Tudose stated that ‘ the tendency for consumption shows the modernity in the caseof Romania’.
President Klaus Iohannis made this statement on Friday in Goteborg where he took part in the Social Summit regarding the promotion of fair work places and economic growth in the EU.
Asked about the position of premier Mihai Tudose who stated that ‘ the tendency for consumption must not be seen as a problem’ the head of state said that the other aspects of consumption should be developed, making reference to investments.
‘I still consider that growth based on consumption is not sustainable. This does not mean that we have to reduce consumption but we have to encourage the investors and develop the other parts of consumption. We can see that the governmental part did not do their job. We have little money invested by the government in public works, there was a complete lack this year’ the president said.
On Thursday night, premier Mihai Tudose wrote on Facebook that ‘ the tendency for consumption shows modernity in the case of Romania and we don’t have to see as an issue. We are thus trying to change the vision on this fake issue and to draw everything that our project for the modernisation of Romania might bring as added value.’
The head of government wrote that Washington Post and AFP spread all kinds of ‘fake news’ about the economic growth of Romania. ‘Our situation is bad. So bad that we had the second positive adjustment of this year where we allocated more money for health, education, social protection, infrastructure and other priority domains of governance. Everything with the observance of the target of 2.96%budgetary deficit. We have such a bad situation that INS shows that the industrial production has a record production of 7.7% in the first nine months of the year. This is the truth that is told by the figures, and those who consider that this growth is based only on consumptionpresent a fake issue. For example, the UK (84,1%)Poland (76.5%) or Croatia (77.9%) are countries with a higher share of consumption in the GDP than that of Romania (75.9%)’ said Tudose.