Governor Isarescu: We must avoid taking steps back

The outlook of the budget deficit growing to almost 4 per cent of GDP in 2017 is endangering the macroeconomic stability that Romania obtained with so much difficulty in recent years and, consequently, the Romanian economy’s convergence toward the Euro Area, National Bank of Romania (BNR) Governor Mugur Isarescu stated yesterday at a conference.

In his opinion, unless actions are taken in order to conserve the advantage obtained in recent years, Romania’s economy risks not only stagnation but also falling farther behind the Euro Area toward which it aspires. “Unless we are careful we could not only stagnate economically but also delay the convergence process. Before seeking convergence, we have to avoid divergence. Euro Area accession, based on a balanced strategy, can be a beneficial process, a veritable catalyst meant to boost the competitiveness of the Romanian economy and to be a veritable anchor that would limit possible macroeconomic backsliding. Today we find ourselves at a crucial moment. In order to ensure sustainable development it is essential not to take steps back, not to endanger the economic achievements obtained as a result of the difficult process of fiscal consolidation and macroeconomic stability. Right now, when we are registering one of the most important economic growth levels in Romania, we should not endanger this development through legislative initiatives that run counter to it,” Isarescu added.

The BNR Governor also mentioned the need for legislative stability, without which investments cannot be attracted.


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