As I have said here, here, and in my presentation to the NBR yesterday I think the only way for Romania to grow is to reform itself. This reform involves lower taxes and a lower number of public employees. The idea is not new and a similar reforming process was implemented in the run up to EU admission. It is possible.
I understand the fear of higher deficits as a result of my proposal but this fear implies the continuation of the status quo. Of course that is not possible and this is not what I expect. Keeping the status quo is not an option with or without my proposal. My expectations are that in the next phase of economic growth only flexible and almost state free economies will make it.
My proposal of lower taxes comes in a package with lowering by 50 % the number of public workers by 2017. I know this scares every politician out there. But restructuring or lowering the number of public employees does not necessarily mean laying off 50% of the people. What I have in mind is PRIVATISATION. Including privatisation of EXIM Bank and Savings Bank. This strategy not only will reduce the long-term expenditure of the Romanian government permanently, it will also bring revenues in the short-term. It does not have to happen tomorrow, but instead of wasting time changing the management of those companies, Romanian Government should focus on privatising them.
I know that my proposal is not what policy makers want to hear. But is not a proposal to support the political class. It is a proposal to support the Romanian consumer and to spur economic growth. This should be the aim of our policies not maintaining a bloated government.