Vladescu: Economic problems are more important than a political dispute
The economic problems that Romania is facing, namely the sharp GDP contraction, high budget gap, falling consumption coupled with low FDI inflow are more important than a political “dispute” between the two parties that make up the ruling coalition, according to Sebastian Vladescu (photo), former minister of finance.
“The problems in the Romanian economy are much too solid to be affected by such a political dispute. And the 2010 budget is drawn by the International Monetary Fund anyway. The government enjoys a restricted freedom of manoeuver in drawing the budget plan, the most important targets and conditions being set out by IMF”, Sebastian Vladescu told Wall-Street.
IMF and Romanian authorities agreed on a budget deficit of 7.3% of GDP this year, following to decrease to below 6% in 2010. IMF predicts an economic contraction of 8-8.5% this year and a modest increase of 0.5-1% in 2010.
“The problems in the Romanian economy are much too solid to be affected by such a political dispute. And the 2010 budget is drawn by the International Monetary Fund anyway. The government enjoys a restricted freedom of manoeuver in drawing the budget plan, the most important targets and conditions being set out by IMF”, Sebastian Vladescu told Wall-Street.
IMF and Romanian authorities agreed on a budget deficit of 7.3% of GDP this year, following to decrease to below 6% in 2010. IMF predicts an economic contraction of 8-8.5% this year and a modest increase of 0.5-1% in 2010.