Isarescu: Populism trap “road to hell” for Romania

The risk of politicians promising more than the economy can deliver, which has caused a great deal of harm to Romania over the last few years is lurking again given the upcoming elections and the populism trap is exactly the “road to hell” believes Mugur Isarescu, NBR Governor.
In an unusually harsh speech against the discussions on economic topics on the political scene, the head of the central bank repeatedly used phrases like “frightening nonchalance” and the “road to hell”.
He criticised the debates lacking clarity, which are hilarious at times, over the fiscal issues and said the political factor’s role was to find a balance between what can be done and what is intended and balance fiscal burdens over generations.
“The populism trap is lurking, it is almost prevailing in today’s public rhetoric and is exactly the road to hell for Romania. The risk of mistaking wanting for being able to has already caused enough harm to the economy. This risk is lurking because the elections are coming. The temptation of promising more than the economy can deliver will resurface again,” Isarescu said.
The NBR governor feels fiscal and workforce policies have stirred too much political, social and union passion especially this year, being grounded in too little research. And debates on the budget deficit are being carried out as if “somebody were throwing money from the sky” Isarescu says.