Beyond reducing public expenses or increasing revenues to the budget, there is the solution to attract external funds to balance the budget. Through agreements with the IMF and the European Commission, the solution was to resort to foreign loans. But it would be wrong to lend money explicitly to balance the budget and finance any expenditure without discernment. Obviously, rather than borrow money to pay salaries and pensions, priority should be represented by investments that help the private sector development and thereby generate further revenue for the state.
Many analysts, economists and politicians have expressed disagreement with regard to engaging to foreign loans on the grounds that it would oblige future generations. However, it should be remembered that no state and no company can grow without borrowing. If we do not resort to loans, we can not even absorb the funds granted by the EU budget, since they do not cover the full funding of projects requiring Romanian beneficiary co-financing, which in many cases is the state itself.
