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Mugur Isarescu : \The stability of the economy is exactly like health. We understand how important it is when you don’t have it
« The Romanian society is dominated by bureaucracy and inflexibility – at least on the working force market – and then we discussed about reforms, everybody would like generosity and not fiscal rigour. For two years the public debate has focused on social aspects, but the world forgets that democracy in Romania depends on the way in which the business environment succeeds to offer financial resources” Mugur Isarescu explained on Wednesday in a seminar which took place in the central bank. He showed his disappointment at the level of economic discussions and especially about the proposals of some politicians to use BNR reserves to pay the pensions.
« I heard some people being dissatisfied with the fact that our foreign currency reserve increases as if it was bad. If the public debate in Romania was dominated by such discussions we will not go far. I leave out some comments, like, pay the pensions out of the reserve. How could we do it ? Such ideas express confusions and misunderstandings to the fact that a reserve means the possibility to ensure the stability of the currency and financial stability. It is exactly like health. You understand how important it is only when you don’t have it” governor Isarescu said.
Moreover, Isarescu said, BNR insisted on the absorption of European Funds which could help the financial effort to pay for the foreign debt. “ I think that the issue foreign debt must be deepened.We borrowed the money, but where are we going to give it back from? European funds could bring that economic wealth which could help the paying back of foreign debt” Isarescu said.
« Fiscal reform does not work always in the direction where the society wants it to go. The reform does not mean more fiscal exceptions but a very serious exercise. Fiscal exceptions encourage fiscal indiscipline, corruption and confusion, debts and major budgetary imbalance which could be corrected only by tough measures” the governor said.