As the government seeks to maintain the first quarter’s 4.3 percent annual expansion in gross domestic product, it needs stability to push through its stimulus plan, Romanian Prime Minister Victor Ponta, who faces a no-confidence motion on Friday, said Thursday in an interview for Bloomberg.
Moreover, PM Ponta warns that a prolonged political crisis in Romania will effect its economic performance.
“Politics is always full of surprises, but tomorrow won’t bring any surprise, as the coalition government will strongly resist.” PM Ponta said in an optimistic view.
The consequences are already seeing in the stock and forex market. Thus, The week-long tensions have pushed the national currency down 0.7 percent against the euro since the probe was announced Friday, the worst performance among eastern European currencies – 4.4625. The Finance Ministry canceled a year leu bond auction next week after yields jumped 19 basis points.
“It’s not clever to issue bonds during a political crisis. The idea is to stop this political storm and get back to work because it’s only the economy that counts.” Romanian PM explained.