Romanian economy, stable at macro level, deficitary at micro level

Romanian economy has macroeconomic stability, fulfilling all the Maastrict criteria.

„We don’t need confusion. The problem is to keep these criteria. It is important to preserve the landmarks. Romanian economy is stable at the macro level, but we have big micro issues, very big,” National Bank of Romania (BNR) governor, Mugur Isarescu, warned on Thursday at the annual conference of the Association of Financial-Banking Analysts in Romania (AAFBR). He mentioned insolvency as one of the major problems at the macroeconomic level.

Regarding the exchange rate, it remains a problem in public communication, central bank official said. According to him, it is created the wrong impression that BNR is the one that sets the rate. He reminded that the ‘managed float’ is the exchange rate policy and not the ‘free float’.

Attending the event, Ionut Dumitru, Fiscal Council President said tax reduction measures do not have the targeted effects without a reform of the state apparatus and an increase fee collection. Moreover, the public investments are ineffective and at the minimum level of the last years.

BNReconomyexchange ratefee collectionINVESTMENTSIonut Dumitrumacroeconomic stabilitymicro levelMugur Isarescureformtax reduction
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