Romania: how to overcome the budget crisis
Romania's new president, Nicușor Dan, has held initial consultations with the parties represented in parliament, with particular focus on the country's large budget deficit and the formation of a new government. Prime Minister Marcel Ciolacu of the Social Democratic Party resigned after his coalition's presidential candidate, Crin Antonescu, came third in the first round of the elections.
The treatment will be tough
Romania faces huge challenges, especially in view of the budget situation, stresses Spotmedia:
“The presidential elections have not solved the problem, but merely opened up a real opportunity to begin a difficult treatment. One thing that can be realistically expected of the new government is that it will take urgent measures to prevent the country's bankruptcy as efficiently and sustainably as possible, but won't launch any major reforms. This will only be possible once there has been a comprehensive reorganisation of the party landscape, most likely after the next parliamentary elections, and only if the pressure from society continues and cannot be ignored.”
Risk more social justice
The Romanian service of Deutsche Welle makes the case for a change in the tax scale for low earners:
“This is where social justice could start, especially given that almost two million Romanians are on the minimum wage. Of the four parties that may form part of the new government, only the [social democratic] PSD favours a progressive tax rate. USR, PNL and [Hungarian party] UDMR are against it. The liberal parties want to take the austerity path and potentially increase taxes and levies and layoffs to reduce government spending. ... However these solutions would only increase the frustration of those with low wages and large families and those who live from hand to mouth.”
It's up to the people
Everyone can play a part in the solution, stresses România Curată:
“Do we want to be like Greece, which only went bankrupt because everyone took more than they were entitled to? Or do we want to be like Ireland, which invested all its money in education, innovation and technology and within 20 years has become the tiger of Europe? The decision is ours to take and must be backed by a broad majority.”