Romanian Economic Policy under the Trap Innocence

Abstract

The project of a significant change in Romanian fiscal policy causes a lot of theoretical controversies and great movements of the labor unions.

The paper deals with the idea that Romania is far away from a “Greek situation” and the government's fiscal measures are not the best ones. We started with the analysis of the Romanian economic situation until 2009, in order to observe that it wasn’t so bad compared to other Member States and the EU average.

The next step was to present a comparative analysis of the economic forecast for Romania and the EU during 2010-2011. A distinct part of the paper is to demonstrate the necessity to adopt other fiscal measures than those proposed by the government and to offer an alternative solution.