Reducing government expenses to control Romania’s budget deficit could increase support for far-right candidate, Pro-Moscow, at the MIA presidential elections, according to Reuters.
Gold protest in Brussels. Photo: Facebook / George Simion
The pro-European coalition is in government tries to limit the excessive expenses, which have caused an increase in public debt by almost 20% compared to the pre-pandemic level, at a sensitive time, shortly before the poll, according to Reuters.
Investors react positively to Georgescu’s investigation
Călin Georgescu’s prosecution for serious crimes has generated optimism on financial markets. Romania’s loan costs have decreased to the lowest level of the last year, and the Romanian bonds have registered increases on Wednesday on the secondary market. The efficiency of the 10 -year government securities has dropped to the lowest level in December, according to Bloomberg.
Georgescu’s candidacy still under evaluation
The authorities analyze the possibility that Călin Georgescu will enter the Electoral Race in the Ministry of Foreign Affairs, after the surprising results of December were canceled against the background of a possible interference of Russia.
Leader in polls, Georgescu expressed his intention to stop Romania’s support for Ukraine, questioned the need for European funds for the economy and cataloged as “Ultra-second” NATO requests for increasing defense expenses, supported by the US. He also promises to put the interests of Romanians in the first place.
Dissatisfaction among employees in the public sector
The austerity measures, which include the freezing of salaries and pensions in the public sector, have aroused dissatisfaction among the affected employees.
“All these measures are against us. I am always ”, says an official from CFR Călaturi, quoted by Reuters. About 240 trains, including essential routes for commuters, were suspended in January.
Also, the subsidies for the transport of the students were reduced, and the decrease of the payments for the overtime led to the decrease of the revenues of a train mechanic by almost 20%.
The workers in the electrical network threatened with a strike in March due to wage reductions, part of a plan to reduce the seven -year debt with the European Union.
Possible negative consequences
The Fitch rating agency warns of a possible relegation, invoking a weaker economic growth and “Internal political shocks”. At the same time, some investors believe that the tensions generated by the criticisms of the new American administration on the Romanian election are an additional risk factor.
The enthusiasm of consumers decreased, and inflation reached the second highest level in the EU, signaling a temperament of the consumer boom that supported the economy, according to Reuters.
