Prime Minister Florin Cîțu said on Tuesday, when asked about the Central Bank’s (NBR) announcement that inflation will reach 5.6% by the end of the year, that it is only an estimate. The Prime Minister spoke about the fact that Romania “is no longer a destination for low salaries” and is moving towards a liberal economy.

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Prime Minister Florin Cîțu was asked on Tuesday about the NBR’s announcement on inflation and whether we are heading towards a rise in prices: “This is your interpretation, it is an estimate by the NBR. We saw some very interesting figures yesterday, how more than 1 percent of employees in Romania have a salary of more than three thousand euros net, how the share of those with salaries of more than one thousand euros is increasing, which means that (…) Romania is no longer a country with low salaries, it is no longer a destination for those with low salaries”.

“Romania has more and more high salaries, high salaries in euros, net salaries, which means that Romania is becoming a destination for high value-added investments and is no longer a destination for low salaries”, the Prime Minister added.

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He said that “salaries are determined by the market, by supply and demand as in any market economy, and salaries and prices are linked to supply and demand, not to government intervention”.

“This is the change we are making through this coalition and this government. We are moving towards a liberal economy (…) A liberal economy is an economy that creates opportunities for all Romanians, we create investments, we create opportunities for people who today work on the minimum wage to go on to a higher salary”, the Prime Minister said.

The National Bank of Romania forecasts inflation of 5.6% for the end of this year, the governor of the National Bank of Romania, Mugur Isărescu, announced on Monday, saying that come fall, increases will be very high.

Translation: Service For Life S.R.L.