Isarescu: Populism trap “road to hell” for Romania
The risk of politicians promising more than the economy can
deliver, which has caused a great deal of harm to Romania over the
last few years is lurking again given the upcoming elections and
the populism trap is exactly the "road to hell" believes Mugur
Isarescu, NBR Governor.
In an unusually harsh speech against the discussions on economic
topics on the political scene, the head of the central bank
repeatedly used phrases like "frightening nonchalance" and the
"road to hell".
He criticised the debates lacking clarity, which are hilarious at
times, over the fiscal issues and said the political factor's role
was to find a balance between what can be done and what is intended
and balance fiscal burdens over generations.
"The populism trap is lurking, it is almost prevailing in today's
public rhetoric and is exactly the road to hell for Romania. The
risk of mistaking wanting for being able to has already caused
enough harm to the economy. This risk is lurking because the
elections are coming. The temptation of promising more than the
economy can deliver will resurface again," Isarescu said.
The NBR governor feels fiscal and workforce policies have stirred
too much political, social and union passion especially this year,
being grounded in too little research. And debates on the budget
deficit are being carried out as if "somebody were throwing money
from the sky" Isarescu says.