Liviu Voinea (GEA): By compensating lack of exports in euro area, Romania might avoid crisis
Date: 27-01-2012
A possible new recession in the euro area in 2012 could affect Romania by the rising costs and reduced financing, Liviu Voinea, the CEO of Applied Economy Group declared for Agerpres on Thursday. He considers that Romania has safer domestic financing resources but adequate budget and fiscal policies are needed.“In the field of financing things are not that serious. The state has not been financed from abroad for months. Financing comes only from the interior and here we are not affected by the cost of loans or country rating as we are abroad. Domestic financing could also have the advantage of resources of the population. People have money in banks, about 24 billion lei, which could be attracted by issuing state binds for natural persons , as an immediate solution to feed financing needs,” the CEO considers.
Voinea says that in budget policies there are areas not turned to account to cover the needs for domestic financing. “In the budget construction there are areas in which public expenses are too low, but there are also areas where money is wasted. Romania has unused budget resources as substantial savings can be made from investments and public acquisitions that are not efficient. Romania also has unused fiscal resources in the sense that it does not apply sufficient taxes to the rich. For instance taxes on property are low. Real estate transactions are practically exempted from taxes- only 2% instead of 16%. There are many areas in the budget and fiscal policies where money can be brought to the budget, without affecting salaries and pensions with social effects,” Liviu Voinea pointed out.
