The National Bank of Romania on Tuesday revised the inflation forecast up from 4.6% to 8.8% for the end of 2025, after the removal of the cap on energy prices which were not taken into account.
Bank governor Mugur Isarescu warned that Romania risked going into recession, adding that the country needed political stability and “a certain degree of social peace,” in the current economic climate.
“If we only come with a (fiscal) package like the first one or we stop halfway, it’s just a matter of time before things end badly,” the prime minister warned in an interview with Digi24. “We no longer have the money to finance all the local authorities in Romania with such large amounts.”
“There is no longer this funding from the state budget and we need to have more efficient local authorities, this is the (simple) reality.”
“We got rid of the rating indicator in July… and there was an inflection in Romania’s evaluation, but if we don’t adopt this package again we will end up in a situation where we will enter a dead end.”
“There’s no point of merely increasing some taxes, if you do not cover the black holes in the economy, and there’s no point in taking a single step, if you have not taken all the necessary steps to cross this bridge of difficulties,” Bolojan said.
Respected Romanian news site G4Media sold to media group; stoking fears of press independence
