Mihai Tanasescu (IMF): "We have the money for infrastructure and we cannot spend it and at the end of the year we use it for salaries and other social expenditure"

Publish date: 04-05-2010
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The representative of Romania with IMF Mihai Tanasescu stated on Friday 30 April that the perception of the business people for 2010 is rather negative than positive, that is why " coming out of the crisis will be rather timid". He also said that " the diminution of current expenditure is the most important thing in Romania" and the message he addresses to the business environment is "Adapt the domestic demand to products which could be produced in Romania".

Mihai Tanasescu explained that « we did not get rid of the problem of inflation, there are risks and inflation pressures. Inflation is a structural one in Romania, without the continuation of structural reforms, which could lead to increasing trend. The inflation pressure is on the foreign level as well, oil prices, there will be an increasing trend as well, food prices have also the tendency to grow".

He also added that his message is one of rethinking the model " which should not lead to consumption financed from abroad: adapt the domestic demand to products which could be produced in Romania" Mihai Tanasescu explained on Friday, 30 April on the occasion of the conference on " Coming out of the crisis - economic perspectives and response policies" as fiscal discipline is a priority in Romania and as the process of fiscal consolidation must go on. In this context, he referred to some statements which consider that increased budgetary deficit is justified if investment in infrastructure is financed.

Romanian society needs predictability, stability and coherent vision

The Romanian society currently needs predictability, stability and a coherent vision, a strategy more than ever, Tanasescu said.He underlined that given the crisis in Greece, which may be contagious to many countries in Central and Eastern Europe, Romania should have a pro-active attitude and through its economic, fiscal and budgetary policies should send a 'correct and transparent message' on the continuation and acceleration of reforms previously started.

'There are various channels through which the Greek crisis may infiltrate Romania,' warned Tanasescu, pointing out that the most important message that the Romanian authorities could give in the next couple of days, is to 'strongly ground the economy in the process of continuing structural reforms.' At the same time, according to Tanasescu, fiscal strengthening is 'essential' in Romania in order to provide the markets with a fair feeling of trust, and to resume financial flows.

Tanasescu concluded underlining that 'the reform does not mean just money, but also the determination of making order, of having an operating system which should not be changed from one day to another.' 'Reform means discipline, which by all means must be accompanied by money, and to make order in the health, education and in many other sectors that is within our power,' Tanasescu added. Oxygen Servicii and Mastermind Communications organizsed on Friday a debate on the topic 'Getting out of the Crisis - Economic prospects and response policies.' , Agerpres is saying.

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