The fiscal policies proposals put forward by Romanian authorities like cutting costs and employees in the budgetary sector, even though ideal, they are difficult to implement on the short term, IMF report on Romania reads, published on Friday on the institution's website. The document reads about the high political risks in the country: the economic crisis, doubled by the upcoming Presidential elections might weaken the necessary support for structural reforms.
The decline of the economy was steeper than initially estimated: the real GDP shrank by 7.6% in the first half of the year, compared to 2⅔ % as estimated, the report reads. The evolution, in the opinion of the authors represented a great challenge for public finances because the low revenues imposed significant low costs.
For 2010, the new program estimates a deficit decrease of below 6% which equals 2⅓ percentage of GDP. In the report, Romania's National Central Bank is appreciated for the measures adopted.
