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Isarescu: Stimulating consumption when it grows without macroeconomic policies will not help recover differences
Recovery of differences Romania has towards other EU states is not helped by stimulating consumption over a period when it is growing without support macroeconomic policies, in the context in which sustainable strategies, needed for sustainable development, are anti-cyclic, not pro-cyclic, said BNR governor Mugur Isarescu, at a conference called “Ten years since Romania’s accession to EU”, held at the National Bank on Thursday, with the participation of Romania’s president Klaus Iohannis and European commissioner Gunther Oettinger.
“There is no substitute for correct fundamental policies for durable development and they are not pro-cyclic but anti-cyclic. Stimulating consumption when it is growing without macroeconomic policies does not help recover economic differences. We want to grow more rapidly, but for that we must stimulate growth potential,”Isarescu said.
The governor pointed out that Romania needs an ambitious national program like joining the euro zone.
“It is a good thing for this program to be ambitious, but realistic. Economic stability is of major importance. We must follow realistic and balanced policies, regardless of the election cycle,” Isarescu added.
The governor drew attention there are two major problems at present, about capitalization and labour force. At the same time, as part of the program for joining the euro zone, we mus solve the question of infrastructure and investments which were cut down in times of crisis.
“We need highways to cross the Carpathians. I want to be clear: we need more than Sibiu-Pitesti highway, connecting the country from south to north, but a highway Iasi-Targu Jiu, connecting east and west,” Isarescu added.
The governor pointed to lower activity of 66% among people of working age, significantly below the European average. Isarescu considers that, in order to mobilize resources existing in the labour market, we should solve the problem of infrastructure and of the difference existing between available training and the ones requested by companies.