Tariceanu: political climate poses no major economic implications

The current political climate will not have any major economic implications in the forthcoming period, with the positive behaviour of the Stock Exchange, which is a sensitive indicator in such situations, showing that investors remain confident in the development of the Romanian economy, Prime Minister Calin Popescu Tariceanu (photo) stated yesterday. “I see no major economic implications for the forthcoming period. There are always certain natural reactions in such situations. The Stock Exchange is the most sensitive factor, but has responded very well, which shows the confidence of Romanian and foreign investors regarding the development of the economy,” Tariceanu stated. He explained it was necessary for the economy to remain uninfluenced by political factors. After Parliament suspended President Traian Basescu last Thursday, a number of economic analysts in Romania said the situation, followed by early elections could cause political instability to worsen. This instability could have a negative impact on the economic environment, which could result in a downgrade in the ratings assigned to Romania, as well as the depreciation of the RON and the resumption of price increases. On Friday night, Basescu announced that he would not resign and that he had come to the conclusion that the best solution for Romania was for him to run in the referendum organised as the result of his suspension. The suspension of President Traian Basescu provides no particular reason to review Romania’s rating downwards, but an electoral campaign could put pressure on the budget, Andrew Colquhoun, head of Fitch Ratings told the Mediafax agency on Friday.