www.mediafax.ro/economic/unde-s-a-gresit-in-consol

Romania faces the necessity of fiscal consolidation to reduce its budget deficit, but this must not harm economic growth or impoverish its citizens. Cristian Socol outlines seven mistakes that have hindered effective budgetary consolidation. The country cannot follow the path of developed EU nations with high deficits while absorbing EU funds. Historical data shows that Romania's economic progress over the past two decades is remarkable, yet the future remains uncertain. Effective consolidation requires a careful approach that prioritizes growth-friendly measures and protects vulnerable populations. Current fiscal strategies have disproportionately affected low and middle-income earners, leading to significant economic downturns and job losses. The focus has been on quantitative rather than qualitative consolidation, resulting in a lack of structural reforms and persistent bureaucratic issues. A more gradual and well-communicated approach is essential for sustainable economic…