We need more than Pitesti-Sibiu highway, we need also Iasi-Targu Mures motorway – BNR Governor says

National Bank (BNR) Governor Mugur Isarescu said on Tuesday that Romania needs more than the Pitesti-Sibiu highway, but also one connecting Iasi to Targu Mures.

Isarescu said huge problems appear due to poor infrastructure both for domestic and foreign capital. “We have enormous needs in term of infrastructure. This is a problem of public investments, have always been cut during recession, but also during expansion periods. We are getting prepared to celebrate the Great Union, but without infrastructure our historical provinces risk having larger discrepancies in the future. (…) We talk about the Pitesti-Sibiu highway, but we also need one from Iasi to Targu Mures. These should be our priorities,” Isarescu said at the event Ernst and Young Romania – 25 years.

Main statements:

• We also have problems with the work force. We have 66% rate of activity as compared to 73% the EU average. There are islands of high unemployment, such as Vaslui, Botosani, Mehedinti – also due to poor infrastructure. Also there are discrepancies in terms of training and the labour market offer;
• 21% of Romanian youngsters aged 15-29 do not work or learn, in the EU the average is 14%;
• The GDP was in 1990 at 26% of EU average, now is 54.5%, however we are still last but one in Europe;
• Economic stability is the key to have steady progress in the standard of living, e.g. the GDP per capita. Stimulating the consumption during the periods when the GDP is on the rise, without the support of macro-economic policies, does not help in covering the gaps.