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Government Derives Hefty Revenue From Romanians Abroad


04-16-04 07:52

The levelling of Romania's trade balance as a result of those billions of euros transferred by the Romanians working abroad pales by comparison with the social benefits. This is what the Delegate Minister assigned to keep in touch with the social partners, Marian Sarbu, found, who in his position as a politician admitted on Wednesday that the money sent by the Romanians working abroad had indeed helped alleviate social tensions.

This is an indirect recognition of the fact that the ruling party has derived nothing but political benefits from the work force exodus: it did not have to bother with part of the social complaints, as hundreds of thousands of households settled to live off what they were getting from abroad; it can boast an unemployment rate lower than even that in the West; the social-democrat government paid less money for the social sector and has not lost an ounce of popularity in the process.

From 2001 (after the lifting of the visas) through the end of this year, the Romanians working abroad will have sent more than 6 billion euros back home, as estimates show. Sarbu on Wednesday said the National Bank data revealed that 1.8 billion euros will enter Romania officially in 2004, compared with 1.5 billion euros last year, 1.4 billion euros in 2002 and 1.1 billion euros in 2001.

Relative to the Gross Domestic Product, this year's money account for 3.35% of GDP, compared with 3.08% last year, 3.10% in 2002 and 2.45% in 2001. The above-mentioned amount of money only stands for the transfers conducted through the banking system.

Marian Sarbu says the amounts that do not go through banks and are impossible to quantify might actually be two thirds of the amounts reaching Romania via banks, which makes for another 1.35 billion euros in 2004 alone.

The Minister said there were no clear records of the Romanian workers leaving for work abroad, as many of them go there on their own. Sarbu added some 600,000-700,000 Romanians were working abroad at the moment.

The estimates, as explained by Sarbu, are based on the banking system data, by relating the total amounts transferred to Romania every month to an average of 500-600 euros sent by every worker. These figures cannot be accurate, and the Academic Society in Romania (SAR) was last year talking about some 2.2 million Romanians working abroad.

Nobody challenged these figures first mentioned when SAR raised the question of the political option of this important segment during the upcoming elections, as it might account for 9%-11% of the total voters.

Author: Iulian Anghel

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