Romania will enter a few weeks in the withdrawal

« 1 Greece made implosion when it reached a budget deficit of 10% of GDP

Romania in 2024 had a budget deficit of 9.3%

2 Romania in 2025 as Greece 2010, entered a dangerous economic spiral

Every year Romania aims to reduce the budget deficit

But the budget deficit increases

In 2023 the deficit was 6.5%

In 2024 the deficit was 9.3%

3 Probably the budget deficit on 2025 will be more than 10%

In 2025, according to official data published yesterday, expenses increase faster than income

It is logical that the deficit on 2025 will exceed 10%

4 Differences to Greece 2010

The European Union did not let Greece go bankrupt

Printed 300 billion euros to save it

The difference is that Greece is in the euro area, and the bankruptcy of Greece was a major danger to the euro

Probably mattered that Greece is the cradle of human civilization

Germans could not let her go bankrupt

Plus 3 million Germans go on vacation annually in Greece

The European Union has a different attitude towards Romania

Have stopped financing with European funds for 2 years

Plus that 15 years ago Germany was on a budget surplus and was the economy’s engine

Today Germany is 2 years in recession, with budget deficit and big problems related to the closure of car factories

It is very complicated to reduce very high budget deficits

Greece cut the budgetary expenses, but this led to many years of economic recession

After 17 years, Greece did not return to the 2008 economic level

Romania will also enter a few weeks in the withdrawal

This withdrawal will keep good years

I think our only chance of going well over the economic withdrawal is to apply the South Korean model

After World War II, Korea was divided into two countries

The northern part was the richest and was taken by the communists

In the north it was the industry

The southern part was very poor

In the south people lived only from agriculture

In 1950 South Korea’s GDP was far below the Romanian GDP

Entrepreneurs in South Korea entered politics and made the government

They proposed an economic plan for 20 years

The plan had 3 main points

• All people had to work a lot

• The money obtained was invested 100% in education, hospitals, infrastructure and factories

• For 10 years wages and pensions have been frozen

Explained that it would be hard for 20 years, but over 20 years they promised South Korea will be a rich country

People understood and started on

After 20 years of sustained work, South Korea has reached the top 15 savings in the world

Not

Just a lot of work

And a lot of tenacity

If we do not take the South Korean model, most likely over 4 years we will have a government made up of extremist parties

Then the light will be extinguished in Romania

Would Romanians vote to work for 20 years, without days off of May 1, June 1, etc. and without salary increases?

Or do we prepare to extinguish the light? ”, The economist wrote.