Advisor to the BNR governor: “A political crisis can very quickly throw us into an economic crisis”

The advisor to the BNR governor, Eugen Rădulescu, stated on Digi24 that a political crisis would make an economic crisis “of great proportions” almost inevitable.

Eugen Rădulescu was asked, on Saturday, at Digi 24, what a political crisis would mean in this fragile budgetary and fiscal context.

“If we reach a political crisis, I don't see the scenario in which we escape from a dramatic economic crisis. A political crisis can throw us very quickly into an economic crisis of great proportions”, said Eugen Rădulescu, quoted by News.ro.

Invited to comment on the statement of PSD president Sorin Grindeanu related to the fact that Bulgaria managed to adopt the euro currency, although they went through successive political crises, Rădulescu said that, regardless of the solidity of the governments in Sofia, they did not raise the budget deficit.

“The Bulgarians have been in the Monetary Council since 1997. The Bulgarians have never run a large budget deficit in all this time. They were forced to keep the deficit under control because they did not have control over the money issue. The money issue was like a kind of straitjacket for them. They could not move. And then even if the governments somehow wanted to let go of the purse strings in order to have political gains, they had nowhere to go. And then, indeed, the Bulgarians were able to enter the euro zone, but because the governments, those unstable ones that were, never brought the budget deficit to 9%, as it was in our country, at least to 3.5%. It was even lower,” explained the adviser to the BNR governor.

Eugen Rădulescu believes that Romania needs a little political reason and says that he is “hoping that it will come before April 20 or before reaching some unfortunate outcome”.

The president of the PSD, Sorin Grindeanu, recently stated that the messages addressed to the social democrats regarding the need for political stability that the party would endanger are unjustified, giving the example of Bulgaria, a country with governmental instability, but with a better country rating than Romania.

“I see and hear in recent weeks that we should be careful to stay in our place, that we are ruining political stability and various negative things can come from this. I give two examples. Political stability, for example, did not exist in Bulgaria. In the last two or three years there were eight or nine elections. You cannot tell me that there was political stability there, and Bulgaria's country rating, today (..) is better than Romania's. We have political stability in Korea from the North. We also have it in Belarus,” said the PSD president, Sorin Grindeanu.