Romania, the highest inflation in Europe. The basket points the finger at the main culprit / video

Mircea Coșea, professor of economics, was invited, on Monday, to the show “All about money”, moderated by Mihai Ciobanu, where he spoke about inflation in Romania.

“The inflation rate in Romania is the highest in Europe. The culprit for this is the current government of Romania, which is a producer of inflation. World inflation is falling. All forecasts show it falling to a level of 2-3%. We have a lot. The causes are no longer external, let’s stop pedaling on something like that, it’s not even the price of energy anymore, but this fiscal policy that the Government applies through the Ministry of Finance, namely that of bringing money to the budget in other ways than the normal ones .

Even if we are talking about a decrease in the price of energy, it is still very high compared to European prices. On the other hand, the fiscal policy, contrary to most European countries, introduced taxes and duties exactly where they should not. The business environment had to be allowed to function more freely, to stimulate activity. The economy that will work is the American type, where it does not tell you – when you set up a company – what you are allowed to do, but what you are not allowed to do. Taxation on this sector and input costs make us have inflation”, said Mircea Coșea.

Mircea Coșea: GDP is no longer an indicator of development and modernization

“As much as we are opponents of the banking system, it is inflation that is a mirror image of interest rates, ROBOR and IRCC. The bank cannot make big discounts as long as inflation is at these levels.

The war in Ukraine, the war in Israel and other external factors are elements that prevent a rapid development of Romania. Our country could have a very fast development and could have a much better pace, if it did not bump into various obstacles, and this is not related to inflation.

In order to reduce inflation there are some things that could be done. The latest data shows something that completely annihilates the festivity some had when they said we surpassed the GDP per capita of Hungary, Greece and Portugal. It’s not something to be happy about, because GDP is no longer an indicator of development and modernization. The introduction of another indicator instead of GDP is being discussed. We use this GDP against development.

Secondly, indebtedness is growing faster than economic growth, and lastly we have to talk about living conditions per capita. Romania has among the poorest regions in Europe, it does not have the infrastructure, medical, educational and social assistance system of Hungary”, said the economics professor.