Chapter 608 1933
Sure enough, the government was very unhappy about the cost of building the ship, but it could only be approved under Eder's strong pressure.
As for the attention of other countries caused by the construction of the ship, Romania can only claim that the two battleships, temporarily named the H-type, have a standard displacement of 35,000 tons, fooling other countries. Anyway, it's not the first time to lie, what's the matter if you lie one more time, and when other countries find out that something is wrong, who will have the energy to care about Romania.
Although it was temporarily mixed, Britain and France and other countries strongly demanded that Romania join the Washington Naval Treaty, and they could turn a blind eye to only one battleship before, and now it is obvious that Romania is going to build ships on a large scale, so they hope to tie Romania to the Washington Treaty.
Eder did not object to joining the Washington Naval Treaty, which would expire in a few years. However, if you want Romania to join, you have to tear up a layer of lip service, and then say, if you want Romania to join, you can join, how can there be such a good thing.
And in the midst of this strife, the time came to 1933. Romania's economy grew rapidly in that year.
Among them, Romania signed an economic and trade cooperation agreement with the Republic of China, so that the goods produced in the country have found an outlet. In the rest of Europe, the economic crisis continues. As a result, the Soviet Union and Romania became the few countries in Europe that still maintained economic growth. Such impressive results have led many European economists to conduct in-depth studies on Romania's approach to the economic crisis.
Among them, Keynes, the father of macroeconomics, praised Romania's response in the newspapers. In his view, Romania has responded well to the world-wide economic crisis, and its government's strong intervention in the economy has been the key to avoiding a recession.
Moreover, he believes that although Romania's additional currency issuance is suspected of artificially lowering national income, its economic stimulation is more important. At the very least, this would keep the factories running at an operating rate and allow workers to continue to earn their incomes, while minimizing the external impact of Romania's economic activity.
Moreover, it was a smart decision for Romania to invest the additional currency in domestic infrastructure. This can not only stimulate economic growth, but also improve the transportation time of domestic goods, and reduce the consumption in the circulation link, which is a model worthy of learning from other countries.
But while these private economists are advocating for a Romanian approach, for other countries, the first thing that wants to change is that many officials oppose it. Because we have only seen the results and not the consequences yet. If this is to change, there will be too much that needs to be done, at least to get officials to change from traditional liberal economic thinking. Britain and France, on the other hand, had little interest in changing their policies because they had a large colony as a buffer.
Other countries have their own various reasons for not being able to use this model in Romania. Therefore, by the end of 1932, the total value of the Romanian national economy reached a record high of 74.17 billion lei (23.13 billion US dollars based on the depreciation of Romania by 20% and the depreciation of the US dollar by 50%), completely leaving Poland and Italy behind.
At present, the United States, Britain, Germany, France, the Soviet Union, and Japan are ahead of Romania, and Romania can only rank seventh in the world. As long as Romania's economic development does not fall behind, it will only be a matter of a few years for Romania to surpass Japan. Because the equipment purchased from other countries is being shipped back one after another, and in a year's time, the whole Romanian card will inevitably explode again.
In the steel industry that best reflects the strength of a country, Romania also ranks seventh in the world with an annual output of 3.78 million tons of steel, ahead of the United States, Germany, Britain, the Soviet Union, France and Japan. And with the expansion of Romania's steel industry, France and Japan will inevitably be left behind.
In addition, Romania has also developed rapidly in coal mining, power generation, ammonia fertilizer, cement, automobiles, tractors and other industries, among which a large number of infrastructure construction has made many related industries fully developed, and the development of these industries has also led to the growth of other related industries. So that Romania can still maintain the momentum of economic growth.
At present, there are 1.47 million cars in Romania, one car for every 35 people.
This is due to the fact that Romania is still the largest automotive production site in Europe. Cheap cars make many people with bulging pockets dare to buy cars.
Although Volkswagen in Romania faces competition in other European countries, it has a first-mover advantage. So that the Romanian automotive industry still has a lot of advantages. Especially in truck manufacturing, Romania's Dongfeng trucks have always been synonymous with quality.
Although Romania's various industries are developing rapidly, there are still sluggish exports. That is the oil industry, which is in a downward trend in exports. Speaking of which, it was Eder who ordered Libyan oil to make life much better in Italy now. Although Italy was also traumatized by the economic crisis, Mussolini's Italy did well with the money from the sale of oil, and its economic decline was not obvious.
However, it is sad for Romanian oil exports, which have lost the traditional Italian oil market and can only find a way in other countries. Although some markets have been opened up in Spain, Turkey, Germany and other countries, Libyan crude oil in the oil market is still a strong competitor to Romania. Although Romania has a stake in Libyan oil, it is not profitable to share it with others. Therefore, in the European oil supply market, Romanian oil has not had a good time with one more competitor.
Faced with this situation, Romanian oil companies are also trying to figure out a way out. They will focus more on the research and development of high-quality petroleum products, hoping to bring more profits to the company through high-quality gasoline and diesel.
Although there is some bad news, the rapid growth of the Romanian economy is certain. This also led to a new level of government revenue, which amounted to 8.67 billion lei for the year. While the income looks good, it's far from the expense. In 1933 Romania listed fiscal expenditures amounted to a record 12.78 billion lei. The overrun amounted to 4.11 billion lei, which can be described as shocking.
Of this, infrastructure accounted for 4.178 billion lei, followed by military spending at 2.133 billion lei. We will not talk about infrastructure construction, but the increase in military spending is mainly due to the research and development and construction of new weapons.
Among them, the navy is mainly the cost of warship construction, as well as weapons research and development. This fiscal year, in addition to the appropriation for the two H-class battleships, it is also necessary to allocate funds for one heavy cruiser, one light cruiser, three destroyers, and four submarines. Among them, the submarines are mainly in cooperation with Germany, producing small submarines of more than 400 tons.
The army, on the other hand, is to develop new equipment such as artillery, tanks, rifles, and communications, because the amount of research and development is large and the amount of equipment is large, so the cost is also high.
As for the rest of the government, the cost is much less, because these departments do not require significant investment from other sources. In other words, the current tense economic situation also makes other departments dare not have extra thoughts.