BUSINESS

Economic growth in 2013 depends on prioritising investments

EIB vice-president Mihai Tanasescu considers that Romania will end this year with a modest economic growth, mainly influenced by external factors.

“The key to success” regarding Romania’s economic growth in 2013 is prioritising the investments with internal and external sources, along with accelerating structural reforms.“Structural reforms mean a reform of administration that is capable to attract more European funds, more cash for investments, because it is clear that economic growth can only be attained through investments,” the vice-president of the European Investment Bank (EIB) Mihai Tanasescu said during an economic seminar, quoted by Mediafax.He added that Romania will have a moderate, yet positive economic growth rate this year, mainly influenced by external factors, while for next year he is convinced Romania will have a positive evolution, because the economic potential of the country indicates it. Moreover, he insisted on explaining that the global economic crisis is far from over.The EIB official emphasised that, starting next year, attracting European funds must be done more aggressively, based on Romania’s interests and priorities, while carefully monitoring how programmes are implemented. “Attracting European funds means more cash for the infrastructure, for programmes that bring economic growth. I am firmly convinced that the lessons of the past have been learned,” Tanasescu added.Asked by journalists about his recommendations for a better absorption of European funds and for dealing with the problems Romania had in the past, the EIB vice-president recommended curbing bureaucracy, granting more attention to important things and more interest for the projects that are being implemented.

New accord with the IMF, very important for Romania

In the same context, the former Romanian representative to the International Monetary Fund (IMF) said that a new partnership with this institution is very important, after the conclusion of the current accord.“I am firmly convinced that, in the future, after the conclusion of the present accord, a new type of partnership with the IMF is very important for Romania. It is important not because Romania does not know what to do. Romania perfectly knows what to do, it is aware of the problems it is confronted with. This partnership gives more weight to an international type of approach of how structural reforms are put into practice,” Tanasescu explained.Romania’s cooperation with the IMF, the European and the World Bank is a long-term partnership whose main element is about stabilising the Romanian economy, resuming the economic growth, reducing the number of jobless and increasing national competitiveness, the EIB official added. He mentioned that these goals can be met only with structural reforms targeting state-run companies and in key-sectors like education, health and pensions.

 

Daianu: The economic growth potential, diminished by the waste of public money

Romania’s economic growth potential is seriously diminished because the money for public expenses is wasted, as public investments account for one of the largest shares in the GDP at European scale, Daniel Daianu, a professor with SNSPA, said during the same event. He added that it is essential to increase the productiveness of investments. On the other hand, the former minister of Finance advised the analysts of commercial banks to come with solutions aimed at encouraging the de-euroisation process. The economist mentioned that commercial banks should be keener on using the Romanian currency for crediting. As for the banking union, Daianu says that this aspect is of fundamental interest for Romania, which has a banking sector controlled by foreign groups.

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