logo logo

Agerpres – National News Agency: Current news with reliable information for a well-informed society.

Bucharest

Piaţa Presei Libere nr. 1, sector 1

Phone: +4 021.2076.110

office@agerpres.ro

Interim PM Bolojan: Romania must resist populist spending, shift economy from consumption to investment

Imagine din galeria Agerpres

Interim Prime Minister Ilie Bolojan said Romania urgently needs a government capable of consolidating the progress made so far, continuing the shift in the economic model from consumption towards investment, keeping public spending under control and collecting revenue efficiently so that the economy can grow naturally, on sound foundations, towards genuine prosperity.

'We are at an important point in Romania's development. We changed direction last year, and the measures taken so far have worked. The deficit has fallen this year as well. (...) In the first seven months of 2026, it was 37% lower than in the same period of 2025. Every percentage point of reduction brings us closer to a balance in which we consume what we produce, not what we borrow,' Bolojan wrote on Facebook on Monday.

He said government personnel expenditure has fallen, while investment has been maintained with the support of European funds.

'In the first seven months, public investment reached 76 billion lei, almost 15 billion lei more than last year. This is the right direction: we are reducing expenditure that cannot be sustained and protecting investment that develops Romania,' Bolojan said.

He acknowledged that the budgetary adjustment has also resulted in an economic contraction and stressed the collective effort made by society.

'Yes, this correction has also had a contractionary effect on the economy. Consumption has fallen by the part that was financed through debt, with borrowed money. The economy has lost the growth - in fact, illusory growth - generated by this debt-financed consumption. It was a collective effort by society, for which I thank Romanians,' he said.

Bolojan stressed that the current interim government arrangement should not continue, as the powers available to an interim government are limited.

'We managed to complete the NRRP, maintain confidence in Romania through two rating assessments and navigate overlapping domestic and external crises. But the instruments available to an interim government are limited. Moreover, political uncertainty and the failure to adopt the public-sector pay law, because of PSD's irresponsibility, are creating doubts about whether spending can remain under control in the years ahead. From this point on, there are two possible paths. Which one we take will depend on the future government. Whoever comes to power will have to answer the question: how can we reduce the budget deficit as a share of GDP in 2027 (5.3%) and in 2028, given that NRRP grants will no longer be available, defence spending will not be able to fall but will instead increase, while wages and pensions will have to be indexed and will not decline as a share of GDP? This comes at a time when interest costs will remain a challenge in the years ahead, after we increased our debt levels too rapidly during the period of large deficits,' Bolojan explained.

The interim prime minister also warned that the next government will have to continue structural reforms.

'If it fails to continue the structural reforms or, worse still, gives in to the populist temptation to turn on the taps of money and consumption, we will find ourselves in an even worse situation than before, because no lender will believe that we are capable of changing. Romania must avoid that scenario. We urgently need a government that consolidates what we have achieved so far, continues the shift in the economic model from consumption to investment, keeps public spending under control and collects revenue efficiently, so that the economy can grow naturally, on sound foundations, towards genuine prosperity,' Bolojan said.

According to the interim prime minister, such a government can only be led by 'a responsible prime minister who fully understands the situation, a prime minister willing to make the constant and often unpopular effort to do what is necessary, not what sounds good'.

'A prime minister willing to work for the country, with his resignation on the table if necessary, and who has a credible governing programme,' Bolojan concluded. AGERPRES (RO - writing by: Daniel Florea; EN - writing by: Simona Iacob)

Display count: 1061

The content of the www.agerpres.ro website has the exclusive purpose of public informing.
All the information published on this website by AGERPRES is protected by relevant legal dispositions.
It is forbidden to copy, reproduce, recompile, decompile, distribute, publish, display, modify, create derived components or products or full services, as well as any exploitation of the site's content.
Details in the section Terms of Use. If you are interested in picking up AGERPRES news items, please contact the Marketing Department – marketing@agerpres.ro.
The use of the Comments section entails your obligation to respect the AGERPRES terms and conditions in regards to the publishing of comments on the www.agerpres.ro.


Other news in category

English 07-11-2026 19:28

Attack in Krakow/IntMin Neacsu: I convey my solidarity with Polish police officer, we are prepared to offer support

Minister of Internal Affairs Marian Neacsu issued a message following the armed attack that took place on Saturday in Kraków, which resulted in deaths and wounded, stating that Romania stands ready to provide support, should it be requested. 'During these difficult times for Poland, our thoughts are with the bereaved families affected by the attack

English 07-11-2026 16:57

INTERVIEW/Ramona Miletic, Deputy Mayor of Simmering (Vienna): I am far from Romania but Romania is with me

Ramona Miletic is the Deputy District Head of Vienna's Simmering district but until 2009 she lived and worked in Pitesti, where her parents and brother still reside. At the age of 27, she was a purchasing manager at a major company in Pitesti, with a promising career already underway. Love, however, changed everything. She met her future husband, an Austri

English 07-11-2026 16:01

Central European Initiative Action Plan for 2027-2030, adopted at ministerial meeting in Bucharest

The meeting of the Ministers of Foreign Affairs of the Central European Initiative (CEI) member states took place on Friday at Victoria Palace. During the event, the Bucharest Joint Declaration and the CEI Action Plan for 2027-2030 were adopted. The event marked the conclusion of Romania's Chairmanship-in-Office, the Ministry of Foreign Affairs (MAE) annou

English 07-11-2026 12:53

Belarus's opposition leader receives award in Timisoara, calls to support Ukraine

Sviatlana Tsikhanouskaya, leader of the democratic opposition in Belarus, received the 'Timisoara for European Values' Award on Friday during the third edition of the forum bearing the same name. The honor was bestowed in recognition of her courage in peacefully resisting a repressive regime and for defending human freedom and dignity. In her speech at

English 06-11-2026 21:04

Romania makes debut at China International Import Expo in Shanghai with two pavilions, 15 companies

Romania is taking part for the first time in the China International Import Expo (CIIE), held in Shanghai from November 5 to 10, 2026. Romania is participating in the event's ninth edition with two exhibition pavilions showcasing 15 companies, according to a press release from the Consulate General of Romania in Shanghai. Held annually, CIIE is the world&#

English 06-11-2026 20:26

Baia Sprie hydrothermal deposit becomes Romania's first site on IUGS geological heritage list

The hydrothermal ore deposit in the former mining town of Baia Sprie has become the first site in Romania to be included on the geological heritage list recognized by the International Union of Geological Sciences (IUGS), the team behind the Gutai-Maramures UNESCO Geopark project announced on Friday. The international recognition was announced at an event held

English 06-11-2026 20:02

Black Friday2026/Transaction volumes across all payment methods reached 763 million lei by Friday evening

The transaction volumes processed across all payment methods during 'Black Friday' 2026 reached 763 million lei, according to data presented on Friday evening by Elena Gheorghe, Country Manager for PayU Romania and Hungary. 'As of this moment (17:45, editor's note), we have reached 763 million lei in processed transaction volume across all paym

English 06-11-2026 19:24

AGERPRES exhibition celebrating Nadia Comaneci's perfect 10 opens in Vaslui

The AGERPRES exhibition 'Nadia. Perfection Has a Story' opened on Friday at the Vaslui County Cultural Centre, marking the start of the Excellence in Education Gala. The mayor of Vaslui said he had been particularly keen to bring the exhibition to local audiences to celebrate the achievement of multiple gymnastics champion Nadia Comaneci 50 years ago,

English 06-11-2026 18:09

Romanian president warns fake accounts, algorithms threaten citizens' voices in democracies

The danger to democracy is that citizens' legitimate voices may no longer be heard, drowned out by hundreds, thousands or tens of thousands of paid fake accounts or by algorithms, President Nicusor Dan said on Friday at a working meeting on 'Information Society and Constitutional Democracy', organised as part of the three-year programme of the Presidency of the A

English 06-11-2026 16:50

PM Niculescu, European Commission vice-president Minzatu discuss youth employment, skills development and EU funding

Prime Minister Luca Niculescu met on Friday at Victoria Palace with European Commission Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness Roxana Minzatu to discuss the government's priorities in education, youth, skills development, employment and social policies, as well as opportunities to access EU funding in these areas.

English 06-11-2026 16:50

Niculescu:Information Society and Constitutional Democracy,a theme that represents challenges of contemporary world

Luca Niculescu stated on Friday that engaging in a debate among constitutional jurisdictions on the topic of 'The Information Society and Constitutional Democracy' is a highly valuable endeavor, as it highlights the implications of a society's fundamental values, values upon which the daily lives of citizens also depend. The Head of the Executive p

English 06-11-2026 16:40

FinMin Nazare says Romania has two offers for the construction of an AI Gigafactory

Romania has received two bids for the construction of an AI Gigafactory, and the selection process is in its final stage, with authorities hoping to be able to announce the outcome by the end of this year, Finance Minister Alexandru Nazare stated on Friday at the Concordia Summit 2026. 'Following nearly a year of effort, Romania currently has two bids on t

English 06-11-2026 16:35

Black Sea security, EU enlargement on agenda of President Dan's meeting with EC President von der Leyen

European defence and security, particularly security in the Black Sea region, European competitiveness, including current energy issues, EU enlargement, especially Romania's support for the Republic of Moldova, and negotiations on the EU's new multiannual financial framework are among the topics President Nicusor Dan will discuss with European Commission President Ur

English 06-11-2026 15:48

BusinessEurope President: The Single Market is extremely important; it is the absolute priority

The European Single Market is extremely important, and we must promote this solution, which stands as an absolute priority, because it constitutes a major source of economic growth, stated Maciej Witucki, President of BusinessEurope (an organization representing the business community at the European level), on Friday, at the second edition of the Concordia Summit 2026.

English 06-11-2026 15:08

Mikes Castle in Zabala to host Sausage Festival 21st edition

A total of 23 teams from Romania and Hungary have registered for the 21st edition of the Sausage Festival, which will take place on Saturday, 7 November, at Mikes Castle in Zabala. The competition will be held in the castle's barn, as in previous years, and the event will include, among other activities, a sausage-making contest, a local produce fair and c