In a discussion with Claudiu Năsui, USR deputy and former Minister of Economy, he strongly criticized the allocation of funds from the budget for funding local projects, as done through the controversial Anghel Saligny program.
„The reason they cling to these programs is that the political system in Romania relies on money flowing from the center to mayors, and mayors support the center with votes, participation in party congresses, and support in elections.
That’s why this program is so important: to maintain the current political structure. If money didn’t flow from the center to localities and localities relied only on local taxes or European funds, this link would be broken,” Năsui declared for spotmedia.ro.
"Local barons, if they didn't have this source of free money, would be forced to find economic solutions to develop their localities and counties, to find financing for investments or other projects. In fact, these programs are a method of redistributing budget funds, without real development," explained the USR deputy.
"I have noticed an interesting phenomenon related to these programs: many projects are done without impact studies, without analysis, just for the sake of doing something, and later become a burden for local administrations. The maintenance costs must be borne by the local municipality. This creates a hole in the respective administration's budget. All just for the investment to be made," added Claudiu Năsui.
He also stated that the ultimate goal of these programs is to provide work for companies close to one party or another. The objective is not for the stadium to operate and bring benefit to the city, such as developing local tourism, small businesses, hotels, restaurants, but simply to be built, the deputy further stated.
The goal is just the execution of the work, not its utility
Claudiu Năsui argues that through these Anghel Saligny-type programs, several wastewater treatment plants in cities have been built, which are completely non-functional.
"Even where an impact study has been conducted, it is often not a real one. There is no government incentive for the investment to turn out well. There is only an incentive for it to be executed. Because once you start doing it, the money comes from Bucharest," explained Năsui, former Minister of Economy in the Cîțu Government.
"This is how sports fields, parks in the middle of desolation, roads that block people's gates, built haphazardly, appear. All this happens because the goal is just the execution of the work, not its long-term utility," Claudiu Năsui added.
"In general, the goal of funding is not the one declared politically. What party leaders say is more like propaganda. The real objective is to spend money by party-affiliated companies.
But this ultimately leads to a disconnect between local administration and the center. The municipality is left without resources and can no longer develop anything.
For example, a basin was built in a city where the water cannot be heated because there are additional costs for the municipality, aside from the fact that it needs to be managed. Often, such useless investments are left to decay," stated Claudiu Năsui.
The USR deputy mentioned that many parks in small-populated communes, built with budget funds, have turned into ruins. Many sports halls are dilapidated. It is a terrible waste of resources, he emphasized.
"The goal was not to do something useful. The goal was to spend money. And, for them, the goal was achieved. Politically, the goal was achieved," the deputy said.
Measures to reduce spending are minimal
"In the current conditions, with spending cuts and measures to reduce the deficit, we see a tough stance, including from PSD and PNL, but also from USR. These funds are seductive. Romania's funds have been wasted, borrowed money – so we and future generations will repay them. Worse, European funds have also been lost," added Claudiu Năsui.
He also said that mayors who were at odds with the ruling parties and did not receive money through Anghel Saligny were forced to attract European funds. Paradoxically, they developed the community much better and escaped constant political blackmail.
"So, PNDL was a theft. That's why I supported USR's exit from government when Florin Cîțu insisted on that PNDL 3 – Angel Saligny – of 50 billion lei. It turned out, later, that there were no funds for its implementation," Năsui further stated.
"It was right that we left the government, but the people continue to suffer, the money was given, and the deficit was created. The issue is that even now they won't stop. Measures to reduce spending are minimal.
A few crumbs have been cut, a few waiter positions, a few million here and there. It's like what Elon Musk did, who abolished USAID – but USAID didn't weigh heavily on the American budget. Here, if you start cutting spending with crumbs, you're not really reducing anything," the former Minister of Economy further argued.
"PNDL was one of the areas where real cuts needed to be made. But no party – not UDMR, not USR, not PSD, not PNL – truly wants to stop this money transfer from the center to mayors. So, they find all sorts of reasons to support how important this program is. But, in fact, there is no money. We are borrowing to support it."
"The government's perspective is to continue raising taxes. Spending cuts require studies, analysis, audits. Tax increases can be done overnight. No analysis is needed – the private sector just needs to comply," he added.
The Anghel Saligny program can only be stopped under pressure from the European Commission
"This program can only be stopped if there is political will. Even in the current coalition, this could have been done if Mr. Ilie Bolojan had resisted the temptation to raise taxes. But once taxes were raised, the pressure decreased. No rating agency downgraded us, so reforms were postponed.
This is the betrayal: once in a position to make reforms, the government raised taxes again. And now, with reduced pressure, I don't expect any further reforms. If they haven't done it until now, they won't do it from now on," Claudiu Năsui stated.
The deputy also mentioned that the "Anghel Saligny" program can only be stopped, eventually, under pressure from the European Commission. But he believes that even the European Commission will not do it. Equivalent practices exist in other countries as well.
The only country I know that has stopped this program is Argentina – there they cut 98% of PNDL-type funding. It was a huge shock for mayors, for companies living off that money, Claudiu Năsui explained.
"It's no tragedy if we cut PNDL. The problem is that we need to want it. The European Commission obliges us to reduce the deficit, not to raise taxes. If we want to reduce spending, we can do it. If not, we will be forced to raise taxes. But when you raise taxes, you induce inflation, reduce consumption. And that affects the real economy," concluded the USR deputy.