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Danila, BNR: Accent laid exclusively on cutting expenses but no new jobs are created
Nicolae Danila, a member in the Administration Board of BNR, says that accent is laid now exclusively on cutting budget expenses , increasing unemployment , without assuring conditions for new jobs, the only able to produce new incomes.“Romania is going to bear the disastrous consequences of a period characterized by chronic deficits, leaving heavy imprints domestically and leading to increased foreign vulnerabilities, Romania being considered by its partners and international markets as an important sovereign risk,” a presentation made by Danila on “The role of the banking system in resuming economic growth” shows.
“The government and Romania should move to the stage in which they grant the right attention through concrete measures to both fiscal consolidation and to sustainable economic growth. At present accent is laid almost exclusively on reducing budget expenses, increasing unemployment and no new jobs needed to the maximum use of human resources, the only ones able to produce new incomes, VAT, as the main source for budget incomes in higher volume and in order to cover the risky gap between resources and needs for the pension fund,” the BNR official added.
He showed that Romania’s competitiveness level on the long run, including increasing labour productivity, is brought by the quality and structure of human capital and that the country’s priorities should be solved by the efficient cooperation of monetary and fiscal policies.