Daniel Daianu endorses budget expenditure cuts

The Romanians' sole chance to overcome crisis is to help themselves alone, to find resources within the country, and take very much care of the public good, financial analyst Daniel Daianu opines.

Both the last employee and the prime minister have to be equally responsible for taking the country out of the crisis, namely the budget costs have to be diminished as much as possible, Ex-Finance Minister Daianu said in Cluj (central west), on May 11. Otherwise, although Romania is a EU country, it won't be shunned by insolvency.

'A thesis I share is that this financial crisis is turning into a tax crisis, and the massive assistance packages given to the banks and the corporations make the European governments excessively indebted. This means that the public debts will soar and the public debt service will become ever more complicated for the public budgets,' Daianu said during the Conference on the Economic and Monetary Union. Whereto? Lessons the Current Crisis Teaches, taking place at the Institute of International Studies of the Faculty of History and Philosophy, of the Babes Bolyai University.

Although he denied making any comment on whether the measures President Basescu proposed are to be enacted or not, Daianu stressed that Romania must cut the budget expenditures, as far as an excessively large percentage of the GDP go to social costs.

'There is a very large gap between the budget revenues and the amounts we spend, and we make almost no investment. The budget must be restructured and have a different attitude about spending. We must show honesty, and give up ostentation. The demarche also involves an ethical element because the ordinary citizen deeply distrusts those dealing with public issues,' Daianu emphasized.

The Institute of International Studies director Vasile Puscas also attending the Conference stressed that the financial crisis is due to the incapability of the world leaders and institutions to find the formula of putting the international system in the right order.