Economist Intelligence Unit: Romania might get in trouble if the budgetary policy does not improve

Miercuri, 27 februarie 2008, 14:10 English | Top News

Foreign investors have not lost their interest in Romania's market but its unsuitable fiscal policy counters any other benefits, The Economist Intelligence Unit Regional Director for Eastern Europe Laza Kekic declares in a HotNews.ro interview. Moreover, after Romania joined the European Union, reforms stagnated just like in the other new EU states.

Kekic argues that even if Fitch rating agency modified Romania's rating from stable to negative, this does not necessarily mean that Romania is in a bad condition. However, he warns that if Bucharest officials fail to control the budgetary policy Romania's situation will worsen.

Laza Kekic added that Romania's evolution is not singular, as there are several other regional countries that are impacted just the same by the global economic instability. Moreover, he points out that Romania's greates advantage as compared to countries like Bulgaria or the Baltic states is that its exchange rate  is flexible.