“Political uncertainty is a negative factor for investors, in terms of how they view Romania. However, the most important issue lies in political strategies rather than persons,” said Andrew Colquhoun, Director of Sovereign and Public Finance of the Fitch Ratings agency.
Boc, President of the Democratic-Liberal Party (PD-L), announced the formation of a consultative committee for economy and finance, which could compensate for his lack of economic background. The appointment of a new Prime Minister designate coincided with a downward revision of the budget deficit forecast. This could amount to 4.1 percent by year-end, after reaching 2.9 percent in this year’s first 11 months, sources in the Ministry of Economy and Finance told Business Standard.
The economic crisis and too optimistic initial forecasts led to budgetary revenues dropping RON 11.5 billion (€3 bln) in October and November from their scheduled level, according to sources. This correction affects the 2009 budget, considering that the economy will grow at a much slower pace in the coming year and that budgetary spending could increase significantly because of salary-related promises made during the election campaign.
Economic analysts interviewed by Business Standard said that measures that should be taken by the future government go as far as a freeze in salaries, layoffs in the budget sector, and higher taxes. However, none of these economic analysts were invited to be a part of the consultative structure proposed by Boc.
