Ceausescu’s costly projects and the freedom to borrow from the West plunged Romania into debt to such an extent that the government was forced to export goods at the expense of domestic consumption. The Romanian economy deteriorated to an unprecedented level, and the living standards of most Romanians collapsed, with Romania at the time being referred to as the “Ethiopia of Europe.” By the beginning of the 1980s, repaying this debt became a significant burden on the state’s finances. As a result, Ceausescu decided to pay off Romania’s debt in full and organized referendum to amend the constitution, preventing Romania from taking foreign loans in the future. Following this decision, most of the country’s industrial and agricultural production was directed towards debt repayment.
The consequences of these measures were disastrous for most of the population. A food rationing system was implemented nationwide, except in the capital, and these rations were continuously reduced. Energy consumption collapsed to new levels, central heating systems were shut down, and even the state-run television was reduced to a single channel that broadcast for only two hours a day. Electricity was frequently cut for extended periods, especially at night, to conserve power. Poverty and hardship reached unprecedented levels, and imports were almost entirely halted, except for luxury goods imported for Ceausescu and his inner circle. By the summer of 1989, Romania’s debt had been fully repaid.

_ Bishoy El-Qummos