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: 1

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 07-09-2026 16:34

Interm DefMin Miruta: PSD-led government would pose major risk to Romania's business environment

Interim Defence Minister Radu Miruta said on Monday that a government formed around the Social Democratic Party (PSD) would, in his view, represent 'a major risk to the entire business environment', as Romania prepares for the appointment of a new prime minister. 'We have shown that things can get done in this country even when PSD is not in govern

English 07-09-2026 11:35

FinMin Nazare: Deficit reduction cannot be delayed; today's deficits become tomorrow's debt

Romania has gone through a year of consolidation involving the most ambitious fiscal adjustment in the European Union (EU), moving from an economy based on debt-fuelled consumption to one based on investment and long-term development, interim Finance Minister Alexandru Nazare says. In a post on his Facebook page, he provided an up-to-date economic assessment o

English 07-09-2026 11:21

Salvamont: Air and medical rescue training programme, resumed

An extensive training programme in aerial rescue, aimed at air and medical crew members on Mobile Service for Emergency, Reanimation and Extrication (SMURD) helicopters as well as mountain rescuers from Salvamont services across the country, begins on Monday in Busteni, in the Bucegi Mountains. The programme is organised by the Department for Emergency Situati

English 07-09-2026 09:57

President Dan: Education needs measures designed responsibly, built on data, on a genuine assessment of results

President Nicusor Dan sent a message on Monday to mark the start of the new school year, saying that education needs responsible measures based on data and an assessment of results, while any reform must be supported by dialogue, resources and time to produce results. The head of state stressed that education is not limited to grades, school registers or exams

English 07-09-2026 09:25

PM Bolojan: New school year begins as education investments worth over 2.5 B euros are completed

Interim Prime Minister Ilie Bolojan on Monday sent a message to pupils starting the new school year, wishing them success and results commensurate with their efforts. The prime minister stressed that the new school year is beginning as one of the largest investment programmes in education is being completed, worth more than 2.5 billion euros, with funding coming from the Nat

English 07-09-2026 08:46

New RO-ALERT message issued amid war in Ukraine in Tulcea County

Locals in the northern part of Tulcea County received another RO-ALERT message on Monday morning, at around 6:55 am, warning them of the possibility of drones or fragments of drones falling, against the backdrop of the war in Ukraine. In the extreme alert message, the authorities urged residents to remain calm and seek shelter in safe places for the next 90 mi

English 05-09-2026 18:08

Babes-Bolyai University contributes to study on European high-mountain plant extinction rates

A new study published in the journal Science shows that although the total number of plant species on Europe's mountain summits is increasing, this trend masks an acceleration of local extinctions, particularly among species adapted to high-altitude cold environments. The research was conducted by a European consortium including Prof. Mihai Puscas of Babes

English 05-09-2026 16:01

Energy Ministry official: Transgaz interconnectivity-boosting investments can help us be more resilient to sector challenges

Cristian Busoi, Secretary of State with the Energy Ministry, said that investments of national gas transmission company Transgaz to boost interconnectivity and expand regional and EU options can help us be more resilient to the challenges of a permanently dynamic energy sector. On the sidelines of the 10th South-East Europe Energy Forum (SEEF) in Thessaloniki,

English 05-09-2026 15:14

UPDATE Romanian firefighters return home after completing their Serbia assistance mission

The more than 69 Romanian firefighters who spent two weeks taking action in the Republic of Serbia are returning home on Saturday, after supporting Serbian firefighters and authorities in battling the wildfires that affected large areas and entire communities. 'It was an intense two-week stint, involving complex operations, long hours of work and challengi

English 05-09-2026 13:58

Iasi National Opera House joins Opera Europa, entering European network of lyric institutions

The Romanian National Opera House in Iasi is joining the European circuit of lyric institutions through affiliation with Opera Europa, an international organisation bringing together around 250 theatres worldwide, the institution's manager, Andrei Fermesanu, said earlier this week. According to him, affiliation with Opera Europa gives the Iasi Opera access

English 05-09-2026 12:38

St. Anne's relics brought from Koutloumousiou Monastery to Bucharest's New St. George Church on Saturday

The relics of Saint Anne from Koutloumousiou Monastery on Mount Athos will be brought to Romania for the first time on Saturday and placed at New St. George Church in central Bucharest, where they will remain for worship until 10 September. A delegation of five monks from Mount Athos will arrive around 15:00 at Henri Coanda International Airport, after which t

English 04-09-2026 20:49

Horse races, mounted archery and fire stunts headline Covasna County's 15th Székely Gallop

Horse races, mounted archery demonstrations, fire equestrian stunts, a craft fair, horseback rides and children's activities are part of the programme for the 15th Székely Gallop, taking place on 11-12 September on Pivnitele Mari Hill in Moacsa. The Székely Gallop, one of Transylvania's most popular equestrian events, draws several hundre

English 04-09-2026 20:42

President Nicusor Dan welcomes newly appointed ambassadors at Cotroceni Palace, focuses on economic ties

President Nicusor Dan received several ambassadors at Cotroceni Palace on Friday for the presentation of their letters of credence, including diplomatic representatives from Canada, Denmark, Iran and Serbia, with whom he also discussed bilateral economic relations, the Presidential Administration said. The ambassadors-designate received by the president were L

English 04-09-2026 20:03

Three-flight Bucharest-Beijing service inaugurated; renewed connectivity to boost tourism, trade and investment, Scriosteanu says

Romania and China are entering a new phase of cooperation in civil aviation, marked by the relaunch of regular flights between Bucharest and Beijing, and the opportunity to deepen institutional dialogue between the Romanian Civil Aeronautical Authority and China's Civil Aviation Administration, Secretary of State with the Ministry of Transport and Infrastructure Ionel Sc