However, he said it was understandable for the prime minister and the minister of finance to be mindful of the need to meet the deficit target and comply with Romania’s agreements.
“I think there are enough arguments in favour of 7.3%. And here, let’s take them one by one. We have a big problem with the decrease in consumption, with the collapse of consumption. Indexation, the increase in pensions according to the law, would be a… how should I put it, it would give consumption a boost. Of course, some will say that part of consumption goes towards imports and that is a problem. Yes, that is true, but the Minister of Labour cannot regulate the market in such a way as to stimulate domestic production,” minister Manole told Libertatea.
He also argued that most pensioners would not put the additional money into bank deposits. For them, it is money needed to cover current expenses, monthly bills and everyday purchases.
“What I mean by this is that, through VAT and other taxes, in the second and third rounds, a whole amount of money from this spending is returned to the state budget.”
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