The warning of a BNR counselor: “We can get much worse than 24%VAT.” What does it say about prices and inflation
Eugen Rădulescu, the councilor of the BNR governor, Mugur Isarescu, said at Antena 3 CNN, that “Prices have no way to fall”however, adding that “The revenues will start to grow ”if the government program goes properly. Otherwise, “We can get much worse than 24%VAT ”.
Rădulescu says that the disinflational effect does not exist. Photo Facebook Eugen Rădulescu
“” Low, prices do not have to fall. The prices will not rise and will start to increase the income. Normally, if the governance program goes properly, from the second half of next year we will enter a slope of normalization. The future will, in my opinion, feel the resorption of the inflation shockIst, ”said Eugen Rădulescu in the zero area.
The BNR councilor stressed that if the budget deficit is in 8.4%, “Then we have the chance that inflation will not be very big.”
“I saw that the decision that was made now by the Government was to keep the capping of prices on several basic products, but what the government had to do was not to reach this deficit, because inflation has only one cause: the budget deficit“He emphasized.
Eugen Rădulescu added that reducing prices to a product group does not influence general prices, but “You have to take action so you don't get there“.
“Let us not deceive ourselves, the budget deficit is the one that leads to this inflation. The disinflational effect does not exist. To reduce, to keep the prices under a group of products does not help you to improve the general level of prices at all. You have to take measures so that you do not get there.”said the BNR councilor.
He stressed that Romania could escape the austerity measures in the second part of 2026.
“I think that, normally, in the second part of 2026 things could improve, not necessarily to reach a very good situation, but things can be improved from the second half of next year. For you know, as the problems we have had so far have had as an essential source, we have the budget deficit,”he said.
Will be a “a moment of breathing', added the BNR advisor:
“A confused period”
Until then, it will be “o Confused period, in which people will be dissatisfied ”because some feel that they were gathering more than others, said Eugen Rădulescu,
If the government program goes properly “We can get much worse than 24% VAT”, warned the counselor of governor Mugur Isarescu.
