Basescu: Romania has based its development on consumption and now it suffers

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President Traian Basescu said in this western Romanian city on Saturday he was impressed with the fact that the local authorities of the four counties making up the Western Region had tried to rely on investment as much as possible.

Basescu attended the meeting of the Regional Development Council of the Western Region that includes the counties of Timis, Caras Severin, Hunedoara and Arad.

‘Look at Poland, at the Czech Republic, which are countries that have pushed the development based on investment and now they feel the global economic crisis less, unlike Romania that has based its development on consumption and now suffers’, Basescu said.

He stressed the Romanian GDP will hit the levels of 2006-2007. ‘The issue is how many more years we’ll lose until we manage to return to the prior situation’, he added.

The president raised the issue of the public sector staff working in the town halls and stressed that in nearly 800 rural towns of 5,000 locals each there are town halls employing 15 staff and others with 80-100 personnel and a large amount of the local budget is assigned to personnel expenditure.

‘At present, there are more employees than persons living on welfare benefits, but in many cases the state institutions have turned into institutions for welfare people’, Basescu said.

He accused those mayors who bloated their own structures and then went to the government to ask for money.

With respect to the current economic crisis, Base scu said Romania will not have the power to come out of the recession on its own and therefore it must quickly take advantage of the fact that some countries like the United States, Germany, Britain and France are bottoming out of the recession.

He insisted that both the local and central administration should be restructured.

He argued that those who will find the best ways to spend the funds both on personnel and investment will be the big beneficiaries of coming out of the recession. He urged the local authorities to spend the money in a useful manner, not depending on certain political events.

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