A European
\nCommission delegation is in Bucharest as of Tuesday to assess the situation of
\nthe Romanian economy. Finance Minister, Eugen Teodorovici, pointed out that the
\nresult of the talks was essential for the coming to Romania of an IMF mission
\non July 15. The European Commission representatives are interested in assessing
\nthe evolution of structural reforms, the streamlining of the transport and
\nenergy sectors, a process that is still lagging behind, the way in which the
\nprofessional management system was applied in the state-owned companies, as
\nwell as the stage of listings and of the privatisation process. <\/p>\n
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Another issue to be
\ndiscussed is related to the relaxation measures laid down in the new Fiscal
\nCode, with focus on their impact on the observance of the medium-term target
\nregarding the budget deficit assumed by Romania as part of the ongoing
\nprecautionary agreement which is to end in September. In late May, a technical
\nmission made up of representatives of the IMF, the European Commission and the
\nWorld Bank was in Bucharest for talks on the same topic. <\/p>\n
<\/p>\n
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The IMF recommended
\nto the Government to adjust the fiscal relaxation measures, since the cut in
\nexpenses to compensate for those measures will not be enough to cover the
\nsignificant gap in the budget revenues starting in 2016. Then, the Government
\ninsisted that Romania needed fiscal relaxation, a fact acknowledged by
\ninternational financiers, who want guarantees, though, related to the
\nobservance of the budget deficit target assumed. <\/p>\n
<\/p>\n
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Early this month the
\nIMF representative to Bucharest, Guillermo Tolosa, said that the draft Fiscal
\nCode which is currently being debated by Parliament would have to be revised
\nsignificantly because, the current form would not allow the Government to reach
\nthe established budget deficit targets. Tolosa said there were heated debates
\nalso regarding the structural reforms, mainly in the energy sector, which
\nreports big losses. <\/p>\n
<\/p>\n
\n
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\nThe
\nongoing precautionary agreement is the 3rd Romania has asked from
\nthe IMF since the start of the economic crisis in 2009. The agreement was
\nconcluded in September 2013 for a period of 2 years and is worth almost 2
\nbillion Euros. The authorities announced they wanted to successfully finalise
\nthe current agreement and would then make a decision regarding the continuation
\nof the partnership with the IMF in the context in which Romania is stable from
\na macroeconomic point of view and borrows money from the international markets
\nat relatively small costs. <\/p>\n","protected":false},"excerpt":{"rendered":"
A European Commission delegation is in Bucharest to assess Romanias current financial programme in Romania.<\/p>\n","protected":false},"author":2,"featured_media":49023,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29053,38095,116464],"coauthors":[],"class_list":["post-64370","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-european-commission","tag-financial-agreement","tag-romania-en"],"acf":[],"yoast_head":"\n