Georgescu’s plans, put into practice, mean a big risk that Romania will lose tens of billions of European funds from the GDP. Calculate how many jobs are lost here, from builders, drivers, to technical staff in various fields, warns a Romanian specialist.
Horseman’s game PHOTO: Archive, The Truth
“Ok, so you vote with Georgescu. You are taking your country back. Good. Let’s see what is very likely to happen.” writes Cornel Ban, professor of International Political Economy at the Copenhagen Business School.
“1. Georgescu’s plans, put into practice, it means high risk to lose tens of billions of European funds from the GDP. About 4 percent of GDP. Calculate how many jobs are lost here, from builders, drivers, to technical staff in various fields. Calculate how much taxes will increase and how many posts in health and education will have to be cut to compensate for the loss of European money. If we look at the motivation for suspending these funds in Hungary, it will be about the rule of law (super easy to demonstrate what is in the human mind). In the end Orban made dozens of changes in the legislation to take off his shirt and get money, but they were considered unconvincing so Hungary lost this engine of growth. We follow. Good thing, because that’s what the sovereigns in Germany and the rest want: to stop sending money to the East.
2. Romania has an economy dependent not only on European funds, but especially on foreign investments in the export economy. Romanian capital is concentrated in the consumption economy, not export, so what do we replace it with to have a relatively stable currency, industrial jobs? Călin Georgescu will not have to take the position of the snowball, but to be downright pushy, to convince this industrial capital to keep coming because he has just put the country risk warning flag on Romania. What exactly does this mean? Salary cuts or freezes across the board to compensate for country risk. You can’t do Trumpism in dependent suburbs. So you will receive living water.” explained the teacher.
According to the specialist, the combination between 1 and 2 “there is a massive risk of bankruptcy and austerity when you have an 8 percent deficit and high speed of public debt growth.”
“Maybe that’s the point. Bankruptcy and austerity, with snap elections won by sovereigntists. Who will obviously blame the globalists, Soros, LGBT, parties, planes, the Latin language. Winners? The new national cap, investors in junk class sovereign bonds. Repeat the process 3 times and guess what life options will be available. Maybe you don’t think so. Or you think the probability is low. Ok, sure, it’s democracy and we’re experimenting. But you entered the EU which has some clear rules. Still. And the sovereign debt market has some simple evaluation criteria. So don’t gamble with your future”concludes the expert.
