Datoria statului a crescut în doi ani cu 9,4 miliarde de euro.
Source: Financiarul.ro.
Rising national debt: A Growing Concern for Romania
In the past year, Romania’s national debt surged by 29 billion lei (approximately 6.1 billion euros), reaching a staggering total of 330.14 billion lei (around 69.4 billion euros) by the end of December. This figure is nearly five times higher than it was a decade ago. Consequently, the per capita debt for each Romanian now stands at nearly 17,000 lei (3,580 euros), a significant increase from 3,340 lei in 2008. Over the last two years alone, the national debt has escalated by 44.5 billion lei (9.4 billion euros).
Historical Context of National Debt
Back in 2008, the national debt was recorded at 69 billion lei. The 260 billion lei borrowed between 2008 and 2018 has not yielded tangible benefits for the citizens of Romania. Despite this alarming trend, the issue of national debt receives minimal attention, as politicians frequently boast about Romania’s relatively low debt levels compared to other EU nations. Instead of providing accountability for how borrowed funds are utilized, government officials proudly claim to have borrowed less than their counterparts. This is particularly concerning given that, over a decade after joining the EU, Romania still lacks a functional highway network and adequate healthcare facilities. The list of unmet obligations continues to grow.
Government Expenditures and budget deficits
Government expenditures reached 322.45 billion lei, primarily driven by a rapid increase in salaries and benefits for public sector employees. However, revenues in 2018 fell short of expenditures, totaling only 322.45 billion lei. As a result, the budget deficit contributed an additional 27.3 billion lei (5.7 billion euros) to the national debt.
Impact of the global financial crisis
The only period during which the rise in public debt, particularly as a percentage of GDP, can be justified is from 2009 to 2012, largely due to the repercussions of the global financial crisis. Authorities had the opportunity to strengthen the state’s finances and prepare for future economic challenges. However, aside from the years 2014-2015, they failed to do so, opting instead to open the state’s coffers. If politicians have learned anything from the crisis, it is that they can borrow today without facing immediate accountability for jeopardizing the future.
Continued Borrowing in 2019
In 2019, the government continued its borrowing spree, recently securing 3 billion euros from international financial markets through the issuance of eurobonds with maturities of 7, 15, and 30 years. This marks the largest amount raised in a single transaction on external markets to date.
