Romania's Social Democratic Party (PSD) promises to achieve an average real GDP growth of 4.4% per annum over 2021-2024. Romania's GDP per capita in 2024 would thus reach 80% of the European Union's average measured at purchasing power parity, according to PSD's governing program for the general elections, quoted by Economica.net.

The Social Democrats also promise a 32% increase in pensions over the next four years, on top of the 40% increase that should have come into force this year, but which has been reduced by the Liberal Government to 14%.

PSD's program also includes a 57% increase in the minimum gross wage in the economy, doubling child allowances, and lower tax on employees' salary income depending on the number of children.

PSD promises an average gross salary of RON 7,010 (EUR 1,445 at the current exchange rate) in 2024.

The average wage would thus increase by 28%, from the current level of RON 5.468 (in July).

The Social Democrats plan to cut the tax on income for the minimum wage to zero and say the budget revenues will rise to 33.7% of GDP (from some 27% currently) without increasing the corporate tax.

The budget deficit will narrow to 3% of GDP by 2024, and about one million new jobs will be created (compared to roughly five mln currently).

At least one industrial park for each county will be developed, with local authorities' involvement to provide utilities and infrastructure.

PSD won the general elections in December 2016 with a similar program that included promises for higher wages and pensions, and large investments that were not fully backed by economic arguments.

(Photo: Cateyeperspective | Dreamstime.com)

andrei@romania-insider.com