Nouriel Roubini: Romania had economic contraction below EU expectations

American economist Nouriel Roubini, present in Bucharest, considers that the austerity measures in times of crisis must be taken in a progressive manner and said that Romania had an economic contraction below the European Union expectations.

Romania’s contraction and economic recovery was worse than the EU expected, even though the international community proved flexibility to support the countries in the region, underlined the American economist, dubbed Mr. Doom. In his opinion, it is up to the political system to decide the most adequate solutions and the dialogue must be organized in every country.

He also views as important the fact that these measures are not applied too suddenly, but gradually, in order to regain population’s trust. I think that every country with a very wide budget deficit must reduce it. The austerity measures must be taken progressively and must be accompanied by other financial and long-term measures, said Roubini.

Asked what he thought about the Government’s plans to cut all pensions in Romania by 15 percent, Roubini pinpointed that all aspects related to social equity must be discussed at political level. The need of fiscal austerity cannot be changed. The International Monetary Fund is aware of these restrictions and that the tough measures, suddenly adopted, will affect the country. The social equity aspects must be discussed at political level. Each country should discuss these aspects, said Roubini.

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