BUSINESS

EIU: The budget rectification – necessary for the IMF agreement

The Economist Intelligence Unit (EIU) considers absolutely necessary the budgetary rectification for the finalization of the agreement with IMF, because the initial predictions of the Government from Bucharest were much too optimistic – a budgetary deficit of 2-2.5 per cent of GDP for 2009, with an economic growth of 2.5 per cent. It is obvious that the budgetary rectification was an absolutely necessary condition for the finalization of the agreement, declared Joan Hoey, analyst with EIU, who added that other budgetary rectifications are also probable, HotNews informs. However, the established targets are almost impossible to maintain in the conditions of the presidential elections and of the protests of the unions. EIU anticipates other budgetary rectifications this year and expresses its doubt that the Government will be capable to observe the set expenditure targets. Moreover, the PSD leader, Mircea Geoana, declared yesterday that the money received from the European Commission is for the balance of payments, which sustains the budgetary deficit and it is the decision of the Government what destination it gives to these funds. On another hand, Bogdan Niculescu Duvaz, spokesman of PSD, declared that the party leaders have discussed several measures of the economic re-launching programme. One of the measures stipulates that the Romanian societies should be the “favourite partners” of the Government in the infrastructure projects with EU funds.

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