The significant fiscal loosening adopted by the former government, led by Victor Ponta, will not be reversed, given the broadened policy consensus that has benefited, Austrian lender Erste Group said in an analysis released in Wednesday.
But, according to the quoted document, the new government could come up with a package of measures to keep under control the damages caused by excesses.
Erste Group analysts believe that the fiscal relaxation measures announced by the former government continues to pose a risk for 2016.
However, they appreciate that the change of government is a positive factor and it can not be expected overnight miracles.
“Most tax decisions have to be validated by the same Parliament after all,” Erste Group note reads.
As regards the implications on the financial market, Erste Group expects that the recent depreciation of the Romanian leu at 4.46 units per euro, the lowest level in the last four months, to be short-lived.
Parliament’s confirmation of the new government would be a return to normalcy and this will be reflected in the forex market, Erste concludes.