“For Romania, the problem of the sustainability of the debt has never been more pressing.” Tas of Tas of Mugur Isarescu brass

The governor of the National Bank warned on Wednesday that a crucial role for the long -term macroeconomic stability has the credibility of fiscal policy. He drew this alarm signal in the context of the discussions between President Nicușor Dan and the political parties on the package of fiscal measures to reduce the budget deficit.

“For Romania, the issue of debt sustainability has never been more pressing. The credibility of fiscal policy plays a crucial role in maintaining investors trust, for controlling loan costs and to ensure long -term macroeconomic stability. Eating tax risks is essential to protect the development and resilience,” “The sustainability of the date and the fiscal risks”, which takes place at the National Bank.

He mentioned in his speech that the global economic landscape is going through significant changes. “Governments from all over the world continue to struggle with the heirs of the pandemic: the energy transition, the implications of the geopolitical tensions and the increase of the costs. In this context, the issues related to the public debt, the fiscal responsibility and the long-term economic resilience have reached the forefront of political debates,” says Isarescu.

The guest of the conference on Wednesday is Jeromin Zettelmeyer, the director of the Bruegel Institute.

Isarescu also addressed the difficulty of making a credible reform package and a few days ago when he presented the inflation report.

“It will not be easy in the next period. You need a lot of confidence. You have nowhere to cut the expenses very quickly, but maybe you can cut from investments. Salary cannot be cut, or to give people out quickly. These are stories!”, Said the governor, asked what are the main problems in the economy.

And on how we manage this problem depends on whether Romania remains a state recommended for investments by rating agencies.

All three agencies currently grant Romania the lowest rating in the “Investment Grade” category, which means that the country is still considered a moderate risk debtor, who is about to be relegated to the “Junk” category (speculative) if the fiscal and political situation deteriorates, shows a wide analysis by the research team of the BRD, the Coordinated by the Florian Economist.

Isarescu warned that the reduction of deficit only by reducing public spending is recessionist: “This reduction is not without effects. Many of the essential expenses of the Romanian state – health, education – are underfunded for years, are not superficial. We also have military expenses, which will hardly decrease!”

Essential, in his opinion, is to keep the credibility of policies in order to have the necessary financing.

“Reducing the deficit is difficult to do because no one wants to pay for the payment note. How you distribute the costs of these adjustments is another essential problem, even if it is political. Politicians will establish that formula to gradually and sustainly distribute the expenses or increase the income, so that it does not accentuate the social problems, it is not a social problems.