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BNR's Voinea: Romania has to face more than Brexit, it must cope with Glexit
Romania must face not only Brexit, but also a tendency of getting out of globalization, as defined at present, called Glexit, considering that in a year and a half it will hold the presidency of the European Union, BNR deputy governor Liviu Voinea declared on Tuesday at a conference organized by ELEC Romania.
Brexit brings changes Romania must cope with and Glexit is another challenge, Voinea considers.
“Brexit changes many things, but we have to cope with more than Brexit. We have to face Glexit, getting out of globalization or at least the dissatisfaction created by it. Europe is being redefined. It must not do it in competition with other nations, it must not get isolated and it must not discriminate among its member countries,” Voinea declared.
At the same time, Voinea pointed to the fact that compared to the period of EU pre-accession, Romania’s economy is more developed, it changes in favour of services and industrial products with high added value, the current account deficit is smaller and easier to finance, but this convergence process is imbalanced.
“The increase is not distributed equally and that could create tensions, even for central banks. We should not underestimate the relevance of inequality. While GDP converges slowly, but safely toward EU average, budget incomes do not. As we have the lowest budget incomes in EU, even dropping as GDP percentage, affects the level of public investments due to serious budget constrictions. We are far from achieving potential,” Voinea said.