Mihai Tanasescu: Romania needs fiscal consolidation and social solidarity

The years 2009 and 2010 will be more difficult and intricate to the Romanian Government, and Romania needs fiscal consolidation and strong social solidarity to overcome the ongoing economic crisis, Romania's representative with the International Monetary Fund (IMF) Mihai Tanasescu told the Romanian public radio station on Wednesday.

'The years 2009 and 2010 will probably be more complicated and intricate. Yet, it is obvious that we need fiscal consolidation, a disciplined economy and strong social solidarity in order to be able to overcome this difficult time. I do not think fighting each other is a solution and this is not the right time,' said Tanasescu.

The former finance minister believes there is currently a wish with political parties to overcome the ongoing crisis and that Romania is not the only place where there are many jobless. 'Same things happen everywhere in Europe, because this is a global phenomenon. When I say social solidarity I mean a certain attitude toward a global situation, not toward a situation some Romanian Government or other wants to create,' said Tanasescu.

He also spoke about the lack of public confidence in the civil society and the state institutions and the relationship between the two components.

On Wednesday, the Romanian Government and missions of the International Monetary Fund (IMF), the World Bank and the European Commission started talks in Bucharest to agree on conditions under which Romania will be disbursed the amounts of the stand-by arrangement previously concluded.

Romania has so far received 6.57 billion euros from the IMF, 1.85 billion euros of which came in a second disbursement. The third disbursement, which hinges on the outcome of the ongoing talks in Bucharest, is of 1.5 billion euros.

If the talks in Bucharest come to a successful conclusion, Romania will receive this year 1.5 billion euros more from the IMF, 360 million euros from the World Bank and one billion euro from the European Commission.

Agerpres