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April 18, 2021

EBRD: Incentives in anti-crisis programme “rather imaginary”

“The incentives” included in the EUR 13 bln programme announced by the Government in February 2009 for backing the economy has been “rather imaginary instead of real” so far, because few projects have been launched, shows a European Bank for Reconstruction and Development report. The effect of the programme on the economic growth of the country was negligible, EBRD chief economist for South-East Europe, Peter Sanfey, said.

Several governments from the region announced various fiscal programmes likely to support the growth, but actually they had a low impact on the economy, pointing at Bucharest. Other states, among which Serbia, Macedonia or Bosnia-Herzegovina tried to offer tax exemptions in order to encourage the economic activity. All these measures had certain positive effects, but are not a coherent answer to the economic crisis.

The crisis from Greece could affect the economies and the banking systems of the states from South-East Europe, the EBRD analyst also considers. Several countries from South-East Europe registered major problems because of the world financial crisis, and Romania and Hungary, states members of the European Union, were obliged to appeal to the IMF’s support. The financial institution expects Romania to register an economic growth of 1.3 per cent in 2010, followed by an advance of 2.3 per cent next year.

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