PM: bushy laws and nonfunctional markets

(story to be published in tomorrow’s issue, March 24)

Romania needs powerful institutions and markets that should function accurately under the supervision of these institutions, such as the foreign currency market and unlike the market of farm products, considers Romanian Premier Mugur Isarescu. “Romania is an agricultural country and we do not have a market of cereals because we do not have speculators and arbitrage,” Isarescu on Wednesday told the conference “Management of Real Estate Patrimony.” The Premier stated that it is generally said that Romania has a market economy, but there are no markets that should function simply, this being due to the “bushy” legislative system. He stated that after ten years points of view have changed and the transfer was made from a total liberalisation and a minimisation of the importance of state institutions to a more evident role of these institutions. “Since 1990, we have asked for liberalisation. Now the importance of state institutions in market regulation is underscored. So that it may function, a market needs speculation and arbitrage,” Isarescu said. The Executive head considers that Romanian institutions are weak and have no reputation. He states, instead, that Romania has an over-functional market, namely the foreign currency market. The secretary of state within the Ministry of Public Works Laszlo Borbely stated that the management of the real estate patrimony must be held as a priority. He says that the Ministry he represents earmarked 100 billion lei within its budget for the consolidation of buildings posing seismic risk, since in Bucharest alone there are about 100 buildings included in the first degree seismic risk category. Borbely states there are investors interested in investing in Romania, but they are expecting a change in the current juridical framework.