In the context of the current debates on the state of public finances and fiscal adjustment solutions, I gladly answered Forbes’ questions dedicated to the pressing economic issues of the moment to present the problem of the budget deficit beyond its arithmetic pointer such as its institutional and economic policy depth.
Deep solutions, of sustainable fiscal consolidation, start with understanding the causes of the problem.
Unfortunately, there are no instant solutions to fix the budget and no scientific criteria that offer the uniqueness of the optimal solution. Ultimately, beyond principled positions or established fiscal models, what matters now is to obtain a sufficient consensus for the package of measures of the future Government to be credible and effective.
In this regard, I believe that the most important budgetary savings can be made by gaining credibility through clear and coherent measures. By adopting a credible fiscal consolidation package, the interest rates at which Romania will attract financing can decrease significantly, which will represent a real benefit for the sustainability of public debt.
We must have the power to look beyond the problem of the budget deficit, because Romania has reached a threshold of economic maturity that allows us to make the leap to a new level of ambition and vision of development. But we need to rethink public policies, consistently ensuring financial discipline and fiscal responsibility.
Here is my interview with Forbes Romania in full.
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