ECONOMICS - A SCIENCE FOR SOCIAL ISSUES
ECONOMICS - A SCIENCE FOR SOCIAL ISSUES

Summary/Abstract: The fiscal consolidation shocks in Romania lead the economy to an expected result of the confrontation between expenditures and raised taxes: the budgetary deficit decreased from 4.3% of GDP per 2011, to 2.4% of GDP in 2012. This macroeconomic effect of the policies targeting the recession shows a rapid reducing of national debt in the GDP ratio, and it is a step forward meeting the criteria for entering the Euro-zone. Meanwhile, austerity measures brought more poverty and social frustration worldwide, EU included, in the context of a “plutonomy” economy, dominated by USA, China, and Great Britain. Given such restrictions for the political decedents, in a relatively small country as Romania, we analyze the consequences of the governors’ options, entailing profitable and social aspects.

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