Entrepreneurs, company managers and bankers who see stimulating consumer spending as a solution to bring the economy out of the crisis had a “bad idea”, says Mugur Isărescu, governor of the NBR (National Bank of Romania).
After two years of declining GDP, he says Romanians should not
start spending, as Prime Minister Emil Boc was suggesting recently,
but work.
“Stimulating consumption to have economic growth can only be deemed
a bad idea. But we cannot put it into practice. (…) Romanians
have to be encouraged to work,” the head of the NBR said
yesterday.
Nobody wants reckless consumption that will lead once again to
booming imports. Nobody wants consumption induced by the increase
in public sector salaries and in pensions. What would then be the
healthy solutions? Foreign investments, but they should not go into
building malls, and European funds. Investments stopped coming at
the onset of the crisis, and Romania is proving totally unable to
attract money from the EU. Does this mean it is condemned not to
come out of the crisis in a healthy manner?
“In 2010 we were not able to stimulate investments or attract
European funds, but I think now we have reached a limit and become
aware this is the only way. First produce, then consume,” says
Sebastian Vlădescu, former finance minister.