We pay for the reckless ones who governed

The financial markets do not have the patience with Romania and the lack of realism and the misunderstanding of the situation in which we are trembling, says the president of the Fiscal Council, Daniel Dăianu.

‘We have to cut this budget deficit and we have no time. I repeat, this speech, ‘to collect better’, ‘We do the state reform’, sir, it sounds good, but there are slogans. Financial markets have no patience with Romania. This will be seen in the budget execution. If we collect better in 2026, that will be seen. Until then you cannot come up with such a package in front of investors, in front of rating agencies and in front of the commission. However, with the commission we have a pretty fractured dialogue. And that is to say. I heard ‘the cutting of expenses has no growth impact’. How not to have the cutting of expenses? We must reduce the aggregate demand, ie internal absorption. That we do it on the expense side, that we do it on the increasing side, alias tax increases. We have no time for fine tuning, that some speak ‘sir, you must have an optimal, have impact studies’. Now let’s tell those external funders, you know that we need to do impact studies. You see? The lack of realism, the misunderstanding of the situation in which we are, after me is earthquake. And I notice that they are analysts, supposed economists macroeconomists who come with this speech: ‘First let’s collect better’. I sit and wonder, well, but did that man ever talk to those who finance us? Talked to rating agencies? That we are not at the Symposium of Economic Thinking at ASE, where to evoke all kinds of theories. Things are clear, « said Daniel Dăianu, at the seventeenth edition of the annual conference of the Association of Financial-Banking Analysts (AAFBR).

Under these conditions, Dăianu argues that, if we do not have a credible adjustment package, the markets will react ‘for us with a lot of disorder’.

‘That you cut expenses, that you will increase tax income through tax increases, that’s it, that’s the situation. We pay for the disobediences of those who governed. But we have nothing to do. You cannot divide Romania between those who governed and made nonsense and the rest of the population who … this is Romania, all Romanian citizens will pay. And remember those who come to government, what to do. Retrographic rating? Let’s hope no. My opinion is that there will be a break. It is important to appear this correction package, « said Daniel Dăianu.

As for fiscal policy, he said that he no longer has to put ‘wheels, monetary policy’ because the National Bank is not a magician.