Petrișor Peiu: "The Most Severe Economic Crisis Since EU Accession"

Petrișor Peiu is sounding the alarm over the state of the Romanian economy, arguing that the country is going through one of the most severe economic periods since joining the European Union. He criticises the governance of the cabinets led by Marcel Ciolacu and Ilie Bolojan, maintaining that Romania has become "the economic sick man of Europe".

According to Peiu, the most dangerous scenario for a Western economy is stagflation – a situation in which the absence of economic growth, or even recession, combines with high inflation.

"The worst type of crisis that can befall a Western-style country today is stagflation – meaning you have neither economic growth nor price stability. In other words, you have both recession or stagnation and very high inflation. This condition is very difficult to combat once it takes hold and cannot be easily reversed," said Petrișor Peiu.

"Better a sharp fall than a slow decline"

Peiu draws a comparison with the economic crisis of 2009–2010, arguing that a sudden correction followed by recovery would be less damaging than a slow and continuous deterioration of the economy.

"Such a situation must be avoided. It would be preferable to have a crisis like the one in 2009–2010, with a peak, a sharp fall, and then a recovery, rather than this gradual, deeply painful decline. It's like fading away day by day," he said.

As a political solution, Peiu proposes holding snap elections, asserting that this decision rests entirely on the political will of those involved.

Dian Popescu: the effects will become apparent in a few months

Energy expert Dian Popescu maintains that Peiu's analysis is sound and grounded in verified data from Eurostat and the National Institute of Statistics. He warns that the effects of current economic policies will be felt acutely in the period ahead.

"In economic terms, the damage done by Ilie Bolojan will become visible in six to eight months. I don't think people realise that for the past few months we have had the highest electricity prices in Europe – prices that cannot be halted at this point, and which are entirely unjustified, because very few people understand that we are the largest gas producer in Europe," said Dian Popescu.

Warning over natural resources and state-owned companies

Popescu fears that the economic difficulties will increasingly impact ordinary people, potentially leading to the sale of natural resources and state-owned companies.

"From the broader economy, this will filter down to people's personal finances. We will end up selling everything we have left – natural resources, state-owned companies that are at least somewhat profitable – but the debt that has accumulated is so vast that the next step will be taking money from the population, including their property. This is a plan," the energy expert said.

Peiu also highlights the situation at Dacia and the decline in investment as further warning signs of the mounting pressure on Romania's business environment, arguing that a change of direction in economic policy is now essential.