Broadcaster: Good afternoon! Welcome to noon debate, a special edition today: PM Emil Boc is invited at the Radio Romania Actualitati headquaters. Good afternoon, Prime Minister.
PM Emil Boc: Good afternoon and thank you for invitation.
Broadcaster: We want to thank you for participation. I remind: this special edition can be followed on our site: politicaromaneasca.ro. This week, Mr. Prime Minister, the Government has decided a second budget rectification. One of the sectors which received most of money, after rectification, is healthcare. The budgets of hospitals are little, and for a more complex investigation, the insured should pay additional money. I remember a statement made some days ago by CNAS President. ”Without medical staff, irrespective of how much money or equipment, we would have, we cannot provide healthacre services. We are confronted with an unprecendented exodus of Romanian doctors and a greater desillusion amid those who remained”.
PM Emil Boc
Good. A few general considerations. This budget rectification takes into account the fact that Romania currently has four consecutive qurters of economic growth. Secondly: the data we have until September 30 show very clearly that Romania complies with the 4.4 budgetary defiit target, namely 2.5 as we had until September 30. Thirdly, this economic growth of 4.5 of third qurter compared to third qurter of 2010 is the product of agriculture, which was, I repeat, the significant contributor to GDP in the third quarter, but to other sectors as well, such as industry or constructions or tourism, which brought the necessary share. It is not time to open champagne and tell that gievn that we had a 4. 5 economic growth, we can do anything. Now, the most difficult is to resist teh temptation not to fall in populism. The destiny of Romania depends on this in 2012 and in the next years. As the signs...
Broadcaster
...sorry to interrupt you, although you speak of economic growth, there is no money for wages and pensions, we will reach there.
PM Emil Boc
We immediately reach 2012, it is very difficult for a politician, as a politician when he has something, should rush, be anxious, give to the right or left, distribute benefits which may not have economic coverage. Therefore, us, this year, we are on schedule with economic growth of more than 1, 5 percent, as we initially forecast. We may reach even 2 percent economic growth. We will see how it evolves on the fourth quarter, and afterwards, we will have final economic growth for 2011, but I repeat, it is beyond 1,5, as we expected. Now, once again, I repeat, it is high time to be reasonable, cal and not to fall in any passion that may imbalance these macroeconomic mechanisms. Look what is close to us. We could see yesterday that Hungary asked aid from the IMF.
Broadcaster...makes apeal to IMF.
PM Emil Boc
...as it does not resist to the current conditions. Greece with public debt and aid from the European Union, is still in difficulty. Italy, with a debt in GDP of more than 100 percent, has major problems. Portugal and Ireland have alreday undergoing major restructuring programmes. Spain follows to hold elections in November 23, and we will see how it closes the situation, from economic standpoint. Therefore, we are in an Europe, where important countries have huge problems.
Spain is to hold election on November 23 and we will see how situation closes there, from economic standpoint too. Therfeore, we are in an Europe where important states have huge problems. Romania, through the efforts of Romanians, we should say this anytime it is needed, Romanians saved our country from economic collapse, and payment default, and difficulties present in other large EU states. They made this extraordinary effort in 2010, tehy will make it in 2011 too. We are not allowed to compromise this effort which Romanians made, and we should remain prudent.
Broadcaster
Then, let us return to Romania, Mr. Prime Minister.
PM Emil Boc
I will tell you now in Romania: this budgetary rectification completed the resources we have, and I repeat it was about economies made to some Ministries, for instance, the Finances one, and also to others, we granted more resources for healthcare, to pay debts to hospitals, for medicines, so that the necessary can be ensured. It is true that here, the healthcare step should be completed now with some vital reforms: a new healthcarereform, a new minimal package of services. Every Romanian should know that out of the 5, 5 percent he pays from salary for healthcar, he benefits from the medical services because toay, the medical system can be a very generous one, to cover very sophisticate surgeries, or have nothing to offer to other people. This cannot continue. We started things and they are to be resolved,as for pensions, at government agencies, salaries, education, we put things in order, and now to state companies. Second element were investments.
PM Emil Boc: He says this, that first we need an allocation of money to know that each patient is ultimately consistent with the contribution he has, and not least with regard to doctors, I know that in 2012 - about doctors, but not only - we can determine in some areas, by government decision, exceptions to the rule of employment of a post from seven. What does this mean? if we see in healthcare that there is a greater need for jobs or in education or in some parts of government, by government decision, we can devote more jobs in these areas, because restructuring process already begins and we can correct deficiencies. So this is good news for 2012.

Broadcaster: Doctors go for much higher wages, Mr. Prime Minister.
PM Emil Boc
That is true, but tried, with the resources which the country has to pay as much as we can afford and to have a healthcare system in Romania and, again, given that reform must be completed in healthcare.
I also said about rectification because this correction allowed us to cover all the financial resources to pay personal assistants of persons with disabilities.
Because some municipalities have not paid these rights, there was allocated money, more than 200 million from rectification for this component. Ministries with infrastructure - transport and development - again received financial resources to pay for works in progress or arrears, and at the Ministry of Development, there were many invoices for works done in 2008, I outline in 2008 by Tariceanu Government, not even today, they were paid, because it was the hey-break of campaign. They said: "Work, that money will come." A crisis came and financial resources did not come, and we still are in a position to pay those alms made by Tariceanu government.

We have the financial resources to pay pension for farmers. I also gave a Treasury loan through a separate ordinance so as to make advance payments to area farmers, in other words, these important areas can be covered and have financial support. And last but not least, the National Library in Bucharest will be ready. I spent last financial resources to cover expenses and, hopefully in December the new National Library can be inaugurated.
Broadcaster : Mr. Prime Minister, when you elaborated budget, you said so ...
PM Emil Boc: The budget is not yet ...
Broadcaster : ... when you take into account, when you talked about next year's budget, the coalition, so to speak, considered a zero priority, you said, your colleagues in the PDL said, investments. Specifically, what investments would be there and I would like to ask here if education is not, however, an investment? True, for the future, for 10-20-30 years, maybe, but for next year, education will get less money.
PM Emil Boc: Yes. Education does not receive less money. One should consider the restructuring that took place in education and compare budgets in this context. I would like to clarify two things for 2012, because, you see, we managed to strengthen our economy to have an economic growth, not an economic failure - between 1.5 and 2% this year. Next year, the budget is set on a growth around 2.1 - 2.2%. Budget deficit from which we start is 1.9%. we start with a budget to protect us from bad situations, to protect us if things get worse in Europe.

Therefore, it is hard to understood for some who do not have economic data, and hard to understand by some accustomed that in the past 20 years, we make the policy of the “to give”. It is for the first time when a Government comes and says: no, let us stay prudent, consolidate what we have because we regained at some of the agencies, the investment grade status which we lost in 2008, at the peak of economic growth. Romania has one of the smallest public debts in EU, only four states have a debt smaller than Romania’s. This should be defended. We arrived to have one of the lowest inflations in the last 20 years, and we should defend it. The deficit is under control and nobody in EU criticizes us for this element, because we are in agreement. These things should be protected, should be defended by a Government that comes before the Parliament.

Broadcaster: Mr. Prime Minister, allow me to tell you that UDMR Senator, Cseke Attila has stated that the UDMR will expressly ask the Government and coalition that as of next spring, the pays of employees of June 2010 are resumed, and pensions are indexed with the inflation rate.

PM Emil Boc: I repeat, I do not go into political games.
Broadcaster: the coalition colleagues…

PM Emil Boc: I am a man now - and I think we proved to be responsible with public resources. If the economy allows, as I said, we speak of light indexation of wages and pensions. If the economy does not allow us because the situation in the European Union will worsen, it will not be possible. You have to openly tell this, and the figures carefully because we are not allowed to make any slippage to take Romania out of this /.../

Broadcaster: Will you negotiate with UDMR? Here, it will specifically request.

PM Emil Boc: Again, I will not take into account a political statement made by a Senator, I respect his view. It is important that the Government will not allow any country's economic slippage to endanger Romania's fate. See what efforts are made by Romanian President, by the Government to maintain this stability that Romania has. It must not be compromised by politicians.
Broadcaster : Romanian president said two days ago, right here in the studio, Mr. Prime Minister, regardless of the Constitutional Court’s ruling, that salaries and pensions will be indexed as there is no more money. There followed USL statement, they would intend to initiate proceedings to suspend the President. What did I want to ask you?

PM Emil Boc: An approach /.../
Broadcaster : The population is aging. We see - not only in Romania throughout the European Union. There have, government has long-term strategy to address this problem of delayed pension problem? Again, the population is aging.

PM Emil Boc: The pension reform had this in mind. Look at the law which we adopted, which basically in the medium to long term reduces pension budget deficit. Starting with next year begins a slight diminution of the deficit in the pension budget. What does that mean? That the law no longer is going to create increasing deficits in the pension budget, increase, but it descends to reach a sustainable limit. It cannot be done overnight, it's true, but without that reform, I want to know ... Give you an example: Romania should have supplemental from state budget, if reform was not made, with 21 billion RON. So, only RON 15 billion are in state budget and are taken for the pension budget. So imagine how was it if pension reform was not made: 21 billion RON instead of 15.

The 6 billion RON, for example, is go for completion of investment works that bring jobs that will bring more contributors to healthcare, pension system and from where we can maintain this system. This is the direction. I did not understand the irresponsibility of opposition, who wanted at all costs to accelerate the pension budget deficit.

Broadcaster: Mr. Prime Minister, we propose that we go back in 2008. Then, the Tariceanu government postponed the increase in teachers' salaries by 50%, and you said that PDL will file a criminal complaint against Premier if he blocks the law on the remuneration of teachers. We are not in the same situation now with pensions and salaries, with indexing?

PM Emil Boc: Again, at this time we have a legal framework that tells us very clearly: if there is economic opportunity, this will happen in the second half, if not, it will not happen, because of lack of alternative.
But, I repeat, this is done by law and not by a unilateral decision, for example, as in 2008, then Prime Minister announced that he will do so.
By law it is established, because it is rational so, with the country to address this perspective and not fall into any populist passion. That's why I have stressed this aspect of rationality and to emphasize once again that there are some gains that we were able to achieve in these years.
The fact that ... look at the figures in the European Union: Romania, along with Poland, have most of money earmarked for infrastructure. And I will give you an example that every Romanian can see. How many kilometers of highway were made during Tariceanu's mandate? We all know. Five kilometers of highway were completed. In these years, 2009, 2010, 2011, 90 kilometers of highway are on use, they were done.

Ediror: 90?

PM Emil Boc: 90. 90 kilometers of highway, to which we add another 32 .....

Broadcaster : Arad-Timisoara.

PM Emil Boc ... Arad-Timisoara, we already have a figure. And here we have not included works such as Ploiesti beltway or part of Timisoara or Cluj beltway or Iasi beltway or the work to Suceava beltway. I did not include here. Here, we spoke about the 50 kilometers of Transylvania Motorway, 17 km from Sibiu, part of Corridor IV, 21 km from the seaside, from Constanta, which are being finalized, and which allow traffic. Therefore, I speak of works which are used in motorway regime. I do not speak about roads in motorway regime. We may add to this, what the current Minister did, namely the signing of all contracts, practically, on Corridor IV from Nadlac to Constanta, this means that in 2013, except the Sibiu to Pitesti road section, we will run on the motorway …

Broadcaster
A simple motion on transportation will be submitted on Monday, at the Chamber of Deputies.

PM Emil Boc
This is why I believe that opposition jumped at the deep end, because it will be an excellent occasion for the current Minister of Transports to demonstrate with figures and deeds what was done in this mandate, unlike the five kilometers of highway built by opposition, liberals, in the previous period.

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