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Considerations about Romania’s Public Debt and its Future Perspectives

Author

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  • ªarlea Mihaela

    () („Babeº-Bolyai” University Cluj-Napoca Faculty of Economics and Business Administration)

  • Manta ªtefan George

    () („Babeº-Bolyai” University Cluj-Napoca Faculty of Economics and Business Administration)

  • Vãidean Viorela Ligia

    () („Babeº-Bolyai” University Cluj-Napoca Faculty of Economics and Business Administration)

Abstract

The model of economic growth that Romania adopted was not sustainable. The recent economic crisis proved that. With the continued growth in salaries and pensions without a complex analysis of the budget and its future projections, and without an increase in productivity, Romania was turned into the perfect victim in front of the disequilibrium of the foreign markets. The IMF and the European Union played a significant role in saving Romania from what might have seemed another Greece at the time. This paper will analyze the effects of the external loan in the long run and also the absolute necessity of the loan. Recent events like the crisis of the sovereign debts in EU just show that the loans have only postponed an even greater crisis. The deficit will not reach 3% without a real economic growth and the external debt is growing rapidly. So, the loan had its price, maybe by sacrificing the sustainable development.

Suggested Citation

  • ªarlea Mihaela & Manta ªtefan George & Vãidean Viorela Ligia, 2011. "Considerations about Romania’s Public Debt and its Future Perspectives," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 1226-1232, May.
  • Handle: RePEc:ovi:oviste:v:xi:y:2011:i:9:p:1226-1232
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    More about this item

    Keywords

    deficit; external debt; external loan; sustainable development; economic growth.;

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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