EcoMin: Romania's economic restart not any sooner than 2011

Publish date: 18-07-2010
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The restart of Romania's economy will not occur any sooner than 2011, as the floods and VAT hike caused it to fall by almost one percent of GDP, Minister of Economy, Trade and Business Environment Adriean Videanu on Friday told the public radio station.

"If it hadn't been for the floods that bit off almost one percentage point of the GDP - the precise assessment is now being done - and if we hadn't been forced to increase the VAT, I think we could have spoken of an economic restart as of Q3 this year. But given these two unpredictable elements, which are out of the government's control, I believe that the economic restart will occur only as of next year," said Videanu.

He explained that the temporary reduction of public sector wages and pensions were the best fit measures for attaining the fiscal balance of the budget, better anyway than hiking taxes.

Romania's economy will probably shrink by at least one percent in 2010, more than previous forecasts, Finance Minister Sebastian Vladescu declared on June 29.


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