Dr. Doom, harsher than IMF: Cut budget deficit and attract foreign investors to get out of crisis

Romania needs to correct its budget deficit and go ahead with reforms in order to have a more flexible economy, which would attract foreign investors, if it wants to leave the global crisis behind, says Nouriel Roubini, one of the best-known economists of the time worldwide, famous for predicting the 2008 global crisis, which earned him the nickname "Dr. Doom".
"Every country that has a big budget deficit needs to cut it, you don't have an alternative to fiscal austerity. The most important thing is to have a progressive and continuous budget deficit over time, in order to recover access to the market," says Roubini. He adds that austerity measures cannot be avoided, even though the economic recession has been tougher than anticipated, as was the case of Romania, but on the other hand policies have to be put together in order to see a recovery.
Roubini's speech is even harsher than that of the International Monetary Fund, which agreed to a budget target deficit increase, admitting the fact that the extension of recession entails a decline in budget revenues, which could not be offset by the spending cuts.