Mihai Tanasescu (IMF): We harm ourselves!

Following the statements made by the Governor of the National Bank of Romania Mugur Isarescu related to the fact that the economic debates in the mass-media – on the topic of reforms Romania committed to make – are characterised by vulgarity, Romania’s representative to the International Monetary Fund (IMF) Mihai Tanasescu backs Isarescu’s approach as well.

‘We harm ourselves! We will not solve a thing unless we understand that we must have a different attitude and we stop playing by various people’s rules,’ Tanasescu told Adevarul daily. The IMF Board will discuss Romania‘s letter of intent on June 28, and the institution’s directors are waiting for the Constitutional Court’s ruling on the austerity measures until then.

Romania’s representative to the IMF underlined that after the 2004 pay envelope is reached the public sector needs to be completely reformed. He also pointed out that the spending made with the salaries forced the state budget to give 47 billion lei in 2009, as compared to 17 billion lei in 2004. ‘The cuts in salaries and pensions are only corrective measures, to reach the point zero.
Then, the public function needs to become efficient and it is mandatory we should start applying a future development strategy,’ said Tanasescu. Following the meeting on June 28, the IMF Board will decide the release of the fifth tranche of the loan agreement.