Deputy of Vrancea, Elena Stoica: Social policies applied by the PSD Government to increase the purchasing power of Romanians

Brand voice

The measures adopted recently by the PSD Government have proven their effectiveness, the most important of which have been translated into the increase in the purchasing power of Romanians and the development of investments, especially in infrastructure.

Thus, the decrease in the inflation rate from 7.2% in February to 6.6% in March will determine a series of positive effects, both for the population and the economy.

First of all, the quality of life of consumers is clearly improved, because the reduction of inflation means that the prices of goods and services increase more slowly, stagnate or even decrease, the effect being materialized in boosting purchasing power and increasing the value of the population’s money. This leads to an increase in consumption because people can now purchase more goods and services with the same amount of money.

Another conclusive result is the reduction of costs for businesses, companies can now enjoy the reduction of costs of raw materials and other current expenses, the decrease of inflation causing their prices to decrease. Under these conditions, companies’ profit margins will be significantly improved and investment and economic growth will be fundamentally stimulated.

Lower inflation also results in reduced interest rate pressures. As a rule, banks look at inflation rates when making decisions about monetary policy, including the level of interest rates. Lower inflation can reduce pressure on central banks to raise interest rates to counter inflation. The aspect is favorable for consumers and economic agents, who can thus access loans at lower rates.

The reduction in the inflation rate also has the effect of boosting investment in stocks and financial assets, as lower inflation can make financial assets such as stocks more attractive to investors, as their real returns are higher when inflation is lower.

The increase in purchasing power, especially for Romanians with low incomes, is a primary concern of the Government and Prime Minister Marcel Ciolacu, the decisions initiated translating into a decrease of 855,000 in 2023 compared to 2022 in the number of Romanians in extreme poverty, respectively material deprivation and severe social.

Consequently, the Executive implemented the necessary social policies and assistance programs in order to support Romanians to optimize their purchasing power, either by extending the capping of utility prices and the commercial addition of basic foods, or by increasing the minimum wage and pensions, as well as through other forms of financial support, intended especially for vulnerable people.

I am convinced that PSD will continue the sustainable efforts to improve the lives of Romanians, by applying a set of policies and measures to ensure a decent life for them.

PSD MP Elena Stoica,

Electoral Constituency no. 41 Vrancea

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