During yesterday’s “Romania Business and Investment Roundtable,” Hoey said that Romania “faces a tired reform following its EU accession,” speaking about the country’s fiscal policies, current account deficit, and inflationary pressures.

National Bank of Romania (BNR) Governor Mugur Isarescu, who attended the roundtable, said the inflation rate should be lowered through sustainable measures. “We have learned our lesson, namely that if you cut back inflation through unsustainable measures, especially for an emotional people, such as the Romanians, you create illusions and the disappointment is later excessive.”
He warned that Romania’s accession to the euro-zone, scheduled for 2014, could be delayed without a sustainable cutback in inflation in 2008 and 2009.
Meanwhile, Economy and Finance Minister Varujan Vosganian said Romania aims to narrow its budget deficit to 1 percent by 2010. He said agriculture should be introduced into the tax system. “Romania is losing €2 billion each year because agriculture is not included in the fiscal system,” the Minister said. Vosganian added that he will a proposal to the Prime Minister to cut back budget spending by €1.1 billion.