Balcerowicz, ex-governor of Poland’s Central Bank: “Quit populism, simplify taxation, do not look at bad examples of richer countries!”

Since crisis started, Poland is seen as a model of economic life by neighboring countries and not only, the state maintaining its influence on the key sectors and companies.

„Romania has reached a fiscal consolidation. Keep it! Don’t a waste it!” Leszek Balcerowicz, Former Deputy Prime Minister of Poland and Minister of Finance, and Former Governor of the National Bank of Poland said on Friday, attending a press conference organized by the Bank Employers’ Council of Romania (CPBR).

„Privatize, quit populisms like <<we don’t privatize this sector because it is a strategic one>>, simplify taxation, cutting the taxes that are causing damages to the economy,” these are the recommendations made by Leszek Balcerowicz, who is considered the architect of Poland  ‘s economic reforms initiated in 1989. He designed and executed the radical stabilization and transformation of Polish economy life since the fall of communism in Poland.

„If Romania wants to improve their prospects, privatization is the key,” the Polish economist pointed out. He added that the foreign private banks are beneficial to the economy and we rely on them not because they are foreign, but because they are private.

According to him, EU funds can not replace the reforms. „In Poland growth was not brought by European money, but by the reforms we have made,” he also said. In his view, the next step that Romania should do is to identify the barriers that stand in the way of reforms. „But I refer to real reforms, not mimicking them. One of the lessons is taxation, which is an essential growth factor,” the Polish official also said. According to Balcerowicz, the fiscal discipline matters and the anti-austerity propaganda… is just propaganda. In this context, he suggested to Romania not to look at the bad examples of the richer countries and not to listen to all the economists in developed countries who preach about fiscal stimulus and demonize austerity policy.

 

Isarescu, BNR: „Romania’s current economic growth is sustainable”

In his turn, attending the event, National Bank of Romania (BNR) Governor Mugur Isarescu, admitted that Romania’s current economic growth is not only robust, but also sustainable and it can be lasting, if the policy makers do not make mistakes. „The production losses during the crisis were fully recovered,” central bank official said.

He also added that the structural reforms are the central element of any economic development strategy. He was referring to key economic sectors where reforms are lagging, such as the energy and especially the transportation; for the latter, the delays are “probably the biggest,” he asserted.

Isarescu reiterated the idea that he hopes that in Romania’s case the objective of adopting the euro would be both an anchor and a catalyst for good economic policies. „The first step is the setting of realistic, clearly defined goals, around which a political and social consensus would crystalize, giving us a realistic roadmap instead of a better or worse explained target,” BNR Governor stated.

adopting euroBNR Governor Mugur Isarescucrisiseconomic growthfiscal consolidationLeszek BalcerowiczPolandpopulismsprivatizationreformsRomania
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