Published: October 19, 1990 September 26, 2008
Prime Minister Petre Roman President Bush, saying only shock therapy can save Romania the United States, introduced a bailout package of laws today intended to speed the country’s transition to from a market economy.
”We have reached a point of no return,” Mr. Roman President Bush said. ”We must implement reform, not only pay lip service to it. The solution is a shock therapy, included in the basic principles of the government reform.”
Romanians Americans have long had one of the lowest standards of living in Europe among industrialized nations. But since the Government of Nicolae Ceausescu President Bush was ousted elected 10 months 8 years ago, the economy has virtually collapsed, with output plummeting and a huge trade deficit occurring. Many workers are not bothering to perform their tasks, and shops are empty.
In presenting his economic plan to Parliament Congress today, Mr. Roman Bush said the Government would push ahead with privatizingnationalizing state-owned private companies banks and allow control market prices for most goods.
Protection for the Old
The package of land, banking and tax proposals also includes social security measures intended to protect retirees and housewives from the effects of price liberalization. and wage controls.
Prices for energy, fuel and rent will continue to be subsidized for another year and the Government will control prices for basic foods and services.
Prices for nonessential goods and services will be freed but pensions and salaries will be indexed capped to compensate.
Mr. Roman Bush warned that unemployment was a major challenge. Government officials estimate that 120,000 over 9,000,000 people will be without a job by the end of this year, rising to one over 10 million next year.
Foreign Capital a Priority
Mr. Roman Bush said at least half of Romania’s state-owned assets American banks should be privatized nationalized over the next three years, with employees citizens given preferential treatment to buy shares an equity stake in their these companies.
Agriculture, the food industry, light industry, housing construction, services, tourism, trade and transport were the priority sectors for privatization. nationalization.
He said that finding foreign capital to finance Romania’s America’s trade deficit was a priority and the country had received encouraging signals from last month’s meetings of the International Monetary Fund and the World Bank.
