Mugur Isărescu, signal sent in his intervention at The Economist event: The war in Iran could have a serious impact, including on Romania. But fiscal adjustments must continue

The Governor of the National Bank of Romania (BNR), Mugur Isărescu, stated, on Monday, at The Economist conference, that the state of public finances in our country is under pressure caused by high budget expenditures. He also stated that Romania faces structural vulnerabilities, current account deficit, fiscal imbalances and sensitivity to international financial conditions, writes News.ro.

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“As governor of the Central Bank of Romania, perhaps you expect me to emphasize what is the perspective of the National Bank of Romania on these things and how the monetary framework is calibrated to preserve stability, also supporting sustainable growth. The Romanian economy is interconnected with the South-Eastern European economies and we have continued efforts in the last ten years to accelerate the convergence of the Romanian economy with the other economies at the European level,” Mugur Isărescu said.

He specified that in recent years the Romanian economy has shown resilience.

“However, positive measures and investments are still needed to benefit from the opportunities on the horizon. In recent years, our economy has shown resilience. This is true. The public finances are also under pressure from high budget expenditures. Growth continues at a more moderate pace, supported by investments, the absorption of European funds and a still robust labor market. At the same time, we face structural vulnerabilities, a deficit current account, fiscal imbalances and sensitivity to international financial conditions”, explained the governor of the BNR.

Isărescu also conveyed that this conflict in the Middle East puts high pressure on energy prices.

“The conflict in the Middle East continues to put high pressure on energy prices and they have as a prospect the deterioration of economic developments. If the conflict continues, its impact on the economy and not only on the economy of Romania could be serious. In our case, despite this risk, fiscal adjustments must continue. It is true, when inflation increases rapidly, purchasing power is eroded. Then the potential for crises also increases, and consumer confidence suffers”, he also declared Isarescu.

He also stated that Romania needs constant confidence from investors.

“Nevertheless, the Central Bank of Romania should maintain a firm position so as to anchor inflation as expected. Our decisions are based on a complete analysis of the national situation, international development and several scenarios that transparently reflect the monetary policies in our meetings. In parallel, Romania's external position and the balance of payments support the fact that we need constant investor confidence. We try to maintain our level of international reserves so that it represents an essential buffer that acts as an anchor of trust alongside the stability of our exchange rate, of the leu, in a flexible regime”, the BNR governor also conveyed.

He specified that the role of the NBR is not to eliminate uncertainty “because this is impossible, but to avoid the transformation of uncertainty into instability”.

The first edition of the Economist Romania Government Roundtable 2026 started, on Monday, in Bucharest, with an ambitious program that brings together political, institutional and business leaders from Romania, Europe and the United States, to discuss the most important topics for the stability, security and development of the South-Eastern Europe region, in the current geopolitical context at the international level.