The current account deficit, which could amount to 13 percent of GDP, remains one of the most serious problems in Romania’s economy, but is a result of the country’s rapid development in recent years, he added.

Last year, the current account deficit was 14 percent of GDP.

Furthermore, Isarescu said that the budget deficit could exceed 3 percent of gross domestic product, unless measures are taken to correct economic imbalances. “Instead of a multi-annual budget, we had years with several budgets. Rectifications drove up the budget too optimistically,” he said.

By the end of the first 11 months in 2008, the budget deficit widened to some 3 percent, the maximum level permitted for an EU member state. The 2009 draft budget passed by the outgoing government includes a 2 percent budget deficit.

Spending cuts and higher taxes were proposed as possible solutions to narrow the deficit. Isarescu said that increasing main taxes is “dilemmatic,” as the impact of such a measure is uncertain. Instead, the next government should take a very close look at budget spending, according to BNR’s Governor.