Political instability could cost Romania EUR1.5 billion

The prime minister designate Lucian Croitoru, said during the Parliament’s plenary session that the political instability would eventually lead to an increase in the country’s financing needs, currently standing at €3.5 billion, an amount that by year-end could go up to €5 billion.

“If the public spending reforms were on track, under the tax scheme for 2009, the country would need €3.5 billion by the end of the year, namely less than two months. Putting off the implementation of these reforms would only heighten Romania’s financing needs to €5 billion, should the European Union and International Monetary Fund refuse to disburse the following tranches under the aid deal. In our opinion, a growing political instability would cost the country another €1.5 billion”, Croitoru said before the Parliament.

He added that the inexistence of a Government delayed Romania’s compliance to the generally upward trends seen in the large markets.

“It takes political determination to install a functional Government, and I invite you to exercise it”, said Croitoru.


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