Romania's public debt has reached an alarming level, exceeding 1,000 billion lei, which represents almost 60% of GDP. The state borrows two lei for every ten lei spent, and each Romanian has a share of 57,000 lei of this debt. The rapid increase in debt, approximately 275,000 lei per minute, is caused by expenses exceeding tax revenues. In the last year, the costs for managing debts have reached 50 billion lei, four times more than in 2019. Experts estimate that public debt will continue to rise, reaching 70% of GDP in the coming years. Romania must repay 150 billion lei this year, which will require new loans. Although borrowing costs have started to decrease, there is a risk of tax increases, which could affect investments and jobs. Problems will worsen in 2027 when the European funds from the PNRR will end, and the state will need to find other sources of income.
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