PM Boc: Romania’s debt level is lower than that of other countries

Romania has a lower debt level than other countries, but it struggles with severe economic difficulties because of its budget deficit, Prime Minister Emil Boc on Wednesday said.

„We can easily lead the country to a level of indebtedness higher than any limit admissible, but what I do not know is where to find then resources to finance the deficit on short-, medium- and long-term. The country’s level of indebtedness is still lower than other countries’ in the EU, but we have to consider that the situation in Europe has very much deteriorated.

We haven’t reach the 60 percent level of public indebtedness yet, but we can see that even with a level of indebtedness of 31 percent the situation is quite difficult and we are unable to finance the deficit,’ the Premier said, while explaining Traian Basescu’s statement on Tuesday, according to which Romania can continue in the state that it two more years.

The Prime Minister brought back into talks the fact that 63 percent of Romania’s state budget goes to salaries and pensions, with the foreign debt representing no more than a few percents, and few other represent the contribution to EU budget.
Thus, Boc said that from the total budget, approx. 70 percent represent mandatory spending on salaries, pensions, social benefits, payment of contributions to the EU, the payment of external debt, while other countries assign these costs as a percentage of 50 percent.
„Today we must find more than eight billion to finance the deficit. Where do we find next year 12 or 14 billion to finance the deficit, since we do not create jobs, we do not make investment and we do not have economic activity?”, The chief executive stressed.

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