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September 24, 2021

Keeping the current commitments – prerequisite to new IMF accord

According to the head of the IMF-WB-EC delegation, Erik de Vrijer, the main challenge for Romania is to move from austerity and macroeconomic stability to growth and job creation.

Romania must keep its current commitments in order to sign a new accord, as it failed to finalise a number of structural reforms as scheduled, the members of the International Monetary Fund (IMF) delegation warned after meeting President Traian Basescu at the Cotroceni Palace.According to a press release issued by the Presidential Administration, the experts of the IMF, World Bank and European Commission added that, in order to achieve economic growth, “Romania needs an increase of productiveness, capital investments in productivity, as well as investments in human capital.” The chief of the delegation, IMF official Erik de Vrijer said that it is very important to reform the health system, while the education system must train persons well prepared to answer the demands existing demands of the labour market.“We are near the end of the visit; as you know, this is a technical visit and the real evaluation will be next year, but this is a good opportunity to exchange viewpoints on where we are and how we can continue. The main challenge now is to move from austerity and macroeconomic stability to growth and the creation of jobs. It is almost a law of physics that if you do nothing, then nothing will happen,” Erik de Vrijer said.During the meeting with the joint delegation of international institutions, President Basescu said that “the most important thing for Romania now must be implementing measures that will generate sustainable economic growth,” adds the press release.President Traian Basescu told the members of the IMF delegation Wednesday, at the beginning of the meeting at Cotroceni, that right after the parliamentary elections of December 9 Bucharest authorities must work on structural reforms. He added that the structural reforms are “the problem” of Romanian economy.

Basescu assured that he knows the IMF, WB and EC envoys are not very pleased with the situation of the programme in Romania and he shares their discontentment, as he is not on electoral campaign and can have a more exact image of the programme with the international institutions.In his turn, IMF official Erik de Vrijer said that the real challenge for Romania is to move from austerity policies to those aimed at stimulating economic growth and job creation, and measures must be taken to this regard in order to have results. The chief of the IMF delegation added that it is important to analyse how Romania’s current programme with international institutions can still be successful, but it is even more important to secure economic growth. “We also have positive aspects; the macroeconomic situation is stable and I intend to discuss with you about the current market,” Basescu added.The head of state also met the joint IMF delegation on November 9 at Cotroceni, when he said that he discussed with PM Victor Ponta and BNR Governor Mugur Isarescu, and it was decided to reach a new agreement with the IMF, “for another year or two.”

‘Cartel Alfa’ asks European leaders to rectify the austerity policies

In a separate move, the National Trade Union Confederation ‘Cartel Alfa’ sent letters to the president of the European Commission and European Council in which it criticises the austerity policies enforced during the last three years and demands their rectification, as they are “wrong and abusive,” Mediafax reports. The National Trade Union Confederation ‘Cartel Alfa’ sent the letters in a move of solidarity with the European employees that on Wednesday attended the European Day of Action called by the European Trade Union Confederation. According to Cartel Alfa, the planned targets have not been met and the situation is even worse than before enacting the new policies, in certain respects. The trade unionists add that, in Romania, the government passed in 2011, upon the insistent demand of the EC and IMF, Law 62 of social dialogue by assuming responsibility in Parliament, without taking into consideration the observations raised by social partners.

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