The central theme of IMF and EC talks in Romania remains EU funds absorption. Recently, IMF chief of mission in Romania, Jeffrey Franks declared that the IMF worries that Romania does not use enough EU funds that are available. Economist Daniel Daianu explains the IMF and EC concerns regarding Romania in an interview for HotNews.ro.
EU funds are the only budgetary activism one can practice as the state needs to consolidate its fiscality, Daniel Daianu explains. He said that Romania needs to absorb as many EU funds as possible to counter the fiscal consolidation. Daianu said, however, that the IMF and the EC need to come up with concrete suggestions even at the time the governmnet took measures to consolidate the fiscal system.
Daianu urges the government to set up as many public private partnerships to allow state enterprises to benefit from banking financing which it can co-finance infrastructure works. Most of the the money in such cases would come from the EU.
