Romanian government counting on second highest economic growth in EU for 2024

Romanian prime minister Marcel Ciolacu announced, in the first Government meeting of 2024, the priorities for this year, stating that "2024 will be all about the economy and the lives of Romanians." He mentioned that the Government is counting on an economic growth of 3.4%, the second highest in the European Union, for its plans.

The head of the Romanian executive highlighted planned investments of RON 120 billion, or 7% of GDP. He also noted a 13.8% increase in pensions.

“Also as a priority at the beginning of this year, I want to quickly resolve the issue of resident doctors who passed the specialty exam at the end of last year. There are about 4,500 doctors in whom the Romanian state has invested hundreds of millions of euros, and we must ensure that we keep them in the country. Therefore, in the immediate period, the Ministry of Health and the Ministry of Development must update the lists of vacant positions and come to the government with new memorandums for the contesting of these positions,” Ciolacu added, cited by economedia.

Ciolacu stated that Romania collected a total of over EUR 13.7 billion last year from the European Commission, including the amounts from the PNRR. The sum will contribute to an economic growth of 3.4% in 2024, the second-highest in the EU, according to the official.

“The absorption of European funds was, in fact, the engine of the Romanian economy. [...] We worked last year with the National Bank of Romania to bring inflation to a single digit and we achieved this to protect people's purchasing power. Through the measures taken, inflation fell from a high of 16.8% in November 2022 to 6.7% currently, and in 2024 the BNR estimates show an inflation of under 5%,” he added, according to the official press release.

Meanwhile, opposition parties say that the government's budget for 2024 is unrealistic and that new taxes will be necessary to sustain the executive's spending plans.

The prime minister also mentioned that in 2024 there will be a focus on measures for increasing domestic production, with two strategic areas: construction and agriculture. He mentioned that the reform of the budgetary apparatus is one of the priorities of this mandate and that the process of reorganizing the ministries and state institutions is in full swing.

Finally, the PM noted Romania’s progress regarding its integration in the Schengen Area. “Romania has taken a big step forward regarding Schengen. After 13 years in which absolutely nothing happened, we finally managed to make a political decision regarding the lifting of air and maritime borders and the possibility of issuing Schengen visas. For the first time, we have an irreversible process,” he said.