The Governor of the National Bank of Romania, Mugur Isărescu, is urging the coalition parties to return to the negotiating table and resolve their conflicts there. He warns that disputes conducted in public and ill-considered political statements could end up costing Romania.
„In these difficult situations, words are stronger than actions. Pay attention to statements,” Isărescu said on Thursday at the presentation conference of the Inflation Report.
The BNR Governor explained that not only the decisions made in Bucharest matter, but also the messages conveyed in the public space. Investors, rating agencies, the European Commission, and international financial institutions closely monitor what is happening in Romania and want to know the direction the country is heading.
"Not because we necessarily have a credibility issue, because I told you that the decision was correct, but because investors, rating agencies, as well as the European Commission and international financial institutions do not see clearly what we will do in the future," Isărescu said.
"It's not just about decisions, but also about words that need to be carefully weighed when spoken in the public space, otherwise we will face consequences," warned the BNR Governor.
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"Coalition parties must sit back at the table"
Isărescu then, without being directly asked, made an appeal to the coalition parties. "We must continue this correction. Of course, we need a government. You didn't ask me, but here I am telling you," said the Governor.
He considers tensions between parties natural because they have different visions, including on fiscal measures.
"Not everyone agrees with the measures in the same way. If you are right-wing, you consider that the VAT, the increase in VAT, is the best decision. Those on the left say: 'No, sir, it is regressive, it is a regressive taxation, it is not good.' And tensions arise."
However, in the current situation, parties must resume negotiations and accept compromises, says Isărescu.
"I believe that the coalition parties must sit back at the table, no matter how difficult it is for them. Politics, I have been in politics for a year too, is the art of compromise, right? Everyone needs to make the necessary concessions to move the country forward."
"They can argue," but not in public
The BNR Governor says that negotiations can be tough and conflicts between parties are normal. The problem arises when these are brought into the public space.
"They sit at the table, negotiate, make mutual concessions. Inside the negotiation room or chamber, they can argue, which is absolutely normal - I have been a prime minister, I have witnessed such arguments - but in public, all these discussions, which are ultimately useless and serve no one, must be closed," Isărescu said.
The BNR Governor linked the political situation to Romania's efforts to reduce the deficit. In his opinion, the measures taken so far have influenced the recent decisions of rating agencies not to downgrade Romania.
"The fiscal correction made by Romania, I say it with all responsibility, is significant and the decision was correct, as we were not downgraded," Isărescu said.
Fitch and Moody's have kept Romania in the investment-recommended category with a negative outlook in the past two weeks. Isărescu also spoke on Thursday about these decisions and rejected the idea that rating agencies made a concession to Romania. "It wasn't a favor, a favor given to Romania," said the BNR Governor, who believes that a downgrade would have been too much after Romania's budget correction.
G.P.