Economy experts voiced different opinions about the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (EMU) at a debate staged by the Social Democratic Party (PSD, in opposition) on Wednesday.
Chairman of Fiscal Council Ionut Dumitru said the EMU governance treaty first of all aims to strengthen the fiscal discipline and the fundamentals of the eurozone.
„The main theme of the fiscal pact is that is setting up a limit of 0.5 percent of GDP structural deficit every year,” Dumitru said at the debate. He added that the structural deficit has a cyclic part having a stabilizing role for the economy.
In his turn, former Finance Minister Daniel Daianu said the stability treaty can bring benefits, but on the other hand has also some weak points.
„The essential element to understand the crisis facing the eurozone is that this construction of the eurozone is imperfect, that getting out of the crisis is not possible only through budgetary discipline. The eurozone crisis broke out due to the public debts incurred by some countries, but also for reasons of private excessive indebtedness. It is a crisis of the banking sector. Romania is facing a deep financial discomfort, running the risk of not being able to get funding, but not mainly because of the budgetary deficits.
According to Daianu, if Greece had not joined the Eurozone, it would not have faced the current situation, because „it would have been sanctioned at the right moment by the markets, so not to reach these huge public debts.”
The former minister also said that the Treaty is a step forwards from the perspective of the need of monetary discipline, but it has not sufficient instruments to cushion the asymmetric shocks. If Romania signs this document it must also understand its disadvantages