Romania’s economic growth model is not directed at the country’s citizens, according to the European Commission’s representatives.

"Romania has one of the highest economic growth rates in the EU, but also ranks high on poverty. This tells us that the current growth model is not working in favor of the citizens. It’s not a model that we encourage,” said Angela Filote, the head of the European Commission’s Representation in Romania, quoted by local Mediafax.

Romania’s competitiveness is based on low costs and low wages, not on quality, which explains this paradox of high economic growth and poverty rate, according to Filote. She presented the European Commission’s country report on Romania on Wednesday, March 9.

The European Commission’s representative said that relaunching the investments was a key element for Romania. Filote pointed out that Romania’s economic discipline has been based on cutting expenses, especially investments, instead of increasing the budget revenues.

Local economy grows by 3.7%. What was Romania’s GDP in 2015?

Irina Popescu, irina.popescu@romania-insider.com

(Photo source: Reprezentanta Comisiei Europene in Romania on Facebook)