ZF English

Isărescu: Without pension adjustment, we cannot talk about economic growth

15.07.2010, 23:15 13

The Romanian state needs to rebalance the pension systemdeficit, which is currently being corrected through inflation -inclusively by cutting or levying tax on pensions, this is theharsh message conveyed by National Bank Governor, who in mid-yearstopped talking about the economy returning to growth, even warningthat the measures proposed in order to force a rebound could leadto tougher corrections.


"Too much hope is put on it (the economic growth i.e.). It wasplus one, then minus one, and because of this we can no longer paypensions. Budgetary problems are structural, they are enormous. Wecan record an 8% growth and we still need to make adjustments. Nowwe are not doing it directly, this is a back door approach, throughinflation," the governor said at the seminar "Mugur Isărescu andguests" organised yesterday at the NBR. He warned that the statewould have an increasingly harder time borrowing if the Governmentfailed to cut spending and to come up with a coherent publicrhetoric. The main issue at present is the social security deficit,of 3 billion euros this year, says Isărescu, adding that NBR'sentire gold reserve would dry up in just one year, were it to bespent to cover it. However, in previous years, when the economy wasgoing full speed ahead and the Tăriceanu Cabinet was squanderingmoney, the Governor did not stand out as harshly critical of thethen government.

Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels

AFACERI DE LA ZERO