The future of the Romanian economy remains extremely uncertain, we only have a few days left to save what we can from the National Recovery and Resilience Plan and, if laws that have been dragging on for 5 years are not adopted, we will lose billions of euros, warns economist Eugen Rădulescu.

“We have been living far beyond our means for almost 10 years. We are consuming on a debt that is growing exponentially and is about to explode. (…) We are very close to a major crisis, not just a drop in consumption by a few percent amid stagnant production. No, we are not witnessing the collapse that some and others seem to want. Our economy seems to be stabilizing, although the external conditions are among the most terrible: an unprecedented drought in Europe (which also caused the shutdown of the Cernavodă power plant), the war in the Middle East (which keeps the price of oil 50% above its January level) and major political uncertainties in developed countries, starting with the USA. That being said, the future of the Romanian economy remains extremely uncertain. We only have a few days left to save what can still be saved from the PNRR. If laws that have been dragging on for 5 years are not adopted, we will lose billions of euros – free European money, on which the this year’s budget. In their absence, the situation will get much worse and very quickly,” Rădulescu wrote on his Facebook page, according to Agerpres.

“The PNRR will end without Romania benefiting from the last tranches. The politicians’ insanity has reached paroxysm: after PSD buried public finances through its beyond irresponsible policy since 2024 and opposed any reform with suicidal stubbornness while it was part of the government, it is now acting to make sure that S&P will relegate us to the category of countries “not recommended for investment”. First it trashed the ANI Law, and now it is firmly against the law on public sector salaries, where it is fighting side by side with the unions – who will be partners in burying the economy and any chance for better for more than a decade from now. I am astonished by the unions’ unconsciousness. That is, maintaining the nominal incomes of some public sector employees unchanged is absolutely unacceptable, right? When the country has exceeded 60% of GDP in public debt, and the deficit is stuck somewhere around 6% of GDP in a year, who and how exactly do these unions dream of improving their incomes in the coming years? (…) Dramatic decreases in nominal incomes, unemployment, double-digit inflation will follow – and this for many years to come”, warned Rădulescu, in a previous post.