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Daianu: We have big difficulties in managing difficult situations, we don't learn quickly and persist in making mistakes

 

The pandemic showed us we have difficulties in managing difficult situations, we don't learn quickly and we do not correct errors, which is serious because we persist in making mistakes, said Daniel Daianu, the president of the Fiscal Council at a specialized conference.

 

I don't see 2021 with problems concerning deficit. The big test will start in 2022 because we must continue fighting the pandemic, which remains a big problem for us. We know what our situation is compared to that in many EU countries. Unfortunately, managing the pandemic has shown that we have difficulties in managing difficult situations, we don't learn quickly and we do not correct mistakes. In very complicated situations errors are inevitable, but we need reaction capacity, of learning and correcting in time. What is serious is that we persist in making mistakes. We cannot dissociate pandemic from economy. It will not be easy to straighten deficit on ESA to 6-6.5% of GDP in 2022. What was sent to Brussels in that document in mid October were targets. In my opinion it is an error to think that tax through inflation can be solved the correction of budget deficits in the years to come, so that we could reach the 3% in 2024, be it structural deficit, ESA or cash deficit. It is indeed possible to surpass 2024 as adjustment period, another correction step. If the program is credible markets might not have a problem in extending the period of cumulated correction,” Daianu mentioned. 

 

Government representatives, experts, consultants and analysts participated in Tuesday, in the annual conference Governing course on public budgets and the National Recovery and Resilience Plan.

 

 

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