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September 17, 2021

President Iohannis meets Central Bank leadership: Gov’t, BNR should avoid competing approaches. Meeting on Friday with premier Dancila and FinMin Teodorovici. Teodorovici counterattacks: No need for third party to stand between Gov’t and National Bank

President Klaus Iohannis met on Wednesday the management of the National Bank of Romania (BNR), represented by Governor Mugur Isarescu and First Deputy Governor Florin Georgescu, underscoring that the independence of BNR in terms of monetary policy decisions is essential, and both the Government and BNR should avoid competing approaches.

“Part of the discussions, an analysis was made of the existing macroeconomics, with Romania’s President underscoring that the independence of the National Bank of Romania over the monetary policy decisions is essential, being a fundamental condition for a member state of the European Union,” the Presidential Administration says.

Iohannis mentioned that the National Bank of Romania should pursue, with more responsibility and determination, the fundamental objective of ensuring price stability, so that Romanians’ incomes will not be affected by decreased purchasing power.

About the coordination of economic policies, Iohannis said that it doesn’t mean that the policies of some official bodies should be subordinated to the objectives of others, but all the economic policies should ensure macroeconomic stability and predictability through all the necessary measures.

“President Klaus Iohannis underscored that both the Government and the National Bank must avoid competing approaches, so that institutional co-operation be efficient, balanced and responsible in terms of the economic interests of Romania,” adds the Presidential Administration

BNR Governor Isarescu presented the main factors behind price increases, showing that significant influences come from components outside the monetary policy.

At the end of the meeting, Iohannis voiced hope that there will be talks between the Gov’t and BNR in the period ahead that will improve the interinstitutional dialogue and co-operation in the economic policy area.

The meeting between President Iohannis and the BNR management is said to have been the result of a need to carry out consultations  to mediate disputes between the Government and BNR over the risks currently facing Romania in terms of inflation and the coordination of economic policies.


Meeting on Friday with premier Dancila and FinMin Teodorovici


The Presidential Administration announces that President Klaus Iohannis will meet on Friday at Cotroceni Presidential Palace with Premier Viorica Dancila and Finance Minister Eugen Teodorovici.

According to the Presidential Administration the head of state expresses his hope that upon discussions with the leadership of Romania’s National Bank and with Prime minister Viorica Dancila, the two parties will meet in the upcoming days.

“Romania’s President has decided for the first round of talks to take place separately. Today [Wednesday – ed.n.] is the meeting with the BNR’s leadership, following that on Friday, at 11:00 hrs, he meets with Prime Minister Viorica Dancila. The president is hoping that after these discussions due to take place at Cotroceni Presidential Palace, the Government and the leaders of BNR meet in the following days to have a direct dialogue,” the Presidential Administration specifies.

On Monday, President Iohannis affirmed that he will try to mediate between the Government and Romania’s National Bank and will call “the ones and the other” to Cotroceni in the upcoming days.

“I have decided to try and mediate between the Government and BNR. In the upcoming days I will invite both to Cotroceni,” the head of state said.

Iohannis maintained, in the context, that “it has gone too far with certain affirmations rather too blunt, of late.”


Minister Teodorovici counterattacks: No need for third party to stand between Gov’t and National Bank. What he says about his taking part in talks with the Head of State on Friday


Finance Minister Eugen Teodorovici has announced that, if Premier Viorica Dancila asks him to, he will take part in the meeting with President Klaus Iohannis on Friday and has pointed out that there was no need for mediation as long as the BNR and the Government did not ask for it.

“A discussion can take place in any public structure. It’s normal. On the other hand, not a mediation in the sense that the President tried to transmit publicly. There’s no need for a third party to stand between the Government and the National Bank. (…) We met, we’ll meet, you know very well that next week the Prime Minister will meet the Governor. So, there’s no need for someone to sit at the table, to put us at the same table to discuss. If the parties do not express this need, this desire for mediation between them, why should there be someone who wants to mediate at any cost? I’m convinced that the National Bank will tell the President the same thing today. That it doesn’t have a conflict with the Government, that the fiscal policy is not the one that led to today’s inflation rate level,” Eugen Teodorovici said.

The Finance Minister also said that if the Prime Ministers asks him to take part in the meeting with President Klaus Iohannis at the Cotroceni Presidential Palace on Friday, he will do so.

“The fact that the President has decided to first talk with the BNR, that’s his decision, it’s the BNR’s decision to show up for that meeting. It’s normal for me to accompany the Prime Minister in any meeting she orders me to. If the Prime Ministers decides so, gladly. I’ll take part in any kind of discussion, whether it’s with the BNR, or with someone else. Gladly,” Eugen Teodorovici said.

Asked whether Darius Valcov, state advisor within the Premier’s own working apparatus, should also take part in the meeting at Cotroceni on Friday, Eugen Teodorovici said: “The Prime Minister will form the team that will take part in the talks with the President of Romania. Regarding Mr Valcov, we both worked very well while we were in the Government, when he was in charge of the budget and I of European grants. I’m working very well today, we even meet very often, we work very well in what concerns the important things, so I for one see no kind of problem with him taking part in any discussion in which his experience could be useful.”

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