Daianu: European funds are the only viable growth driver for Romania
Massive savings and absorption of European funds are among the
main models of economic growth that need to be pursued in a time of
major crisis, believes Daniel Daianu, former MEP and minister of
finance.
"European funds are the only tool for cutting public expenses. If
we don't attract these resources, we will have a few good years of
stagnation, because I don't see any other growth driver for
Romania," said Daianu at an event organised by the Ivy League and
Excellence in Romania, which has 50 members - graduates of
prestigious universities such as Harvard, Yale, Princeton, MIT,
Oxford, and INSEAD, as well as Romanian businesspeople. "If
European funds were used much more wisely, they could bring an up
to 4-5% GDP growth," he added. The former Finance Minister cited
the example of Spain, which consolidated its infrastructure with
the aid of European funds, while Greece built an airport with EU
money. Romania should also make more domestic savings in order to
resume growth, because the hope that Romania will see its economy
rise in line with those of the other states in the region is not a
viable solution to leave the crisis behind.
"I find it hard to believe the Romanian economy will see two-digit
growth in the coming few years. The government should find a way to
encourage massive savings." He specified that the population would
find it increasingly tough to take out financial loans because the
banks will impose even more restrictions on lending.