Isarescu: Pushing for economic growth would be the biggest mistake

The Romanian economy has the potential to register significant growth until the country's accession to the Euro Area, being endowed with all the 'ingredients' conducive to that result, Mugur Isarescu, the Governor of the National Bank of Romania (BNR), stated yesterday during a seminary within the Central Bank, Mediafax informs.

According to him, further pushing for economic growth would be the future Governments' most serious error. 'Romania has all the ingredients conducive to economic growth for several years to go. The future Governments' most serious error would be to push for economic growth. (...) That will be an extraordinary temptation for any Government,' Isarescu said. The BNR Governor underlined that it is natural for the future Governments to continue carrying on investments, but that the expenditures have to be restructured, with an accent on infrastructure.

In Isarescu's opinion, the FDI that could reach EUR 10 bln this year, the European funds and a savings rate of 10 per cent are the elements that could ensure a consistent growth. The BNR Governor admits that it is difficult for public opinion to understand the risk of economic overheating and considers that the academic discourse should be better spelled out for the people. 'Any academic debate can be translated so that the citizen can understand, in order for him to better read the messages coming from the economic or political spheres. The mix of economic policies that Romania will apply in the following period will be based on the Romanian citizen's vote,' Isarescu explained.

He drew attention to the fact that Romania quickly needs an adequate mix of policies because the monetary policy measures can no longer be efficient following their recent hardening.

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