BNR warns: the budget deficit remains the main vulnerability of the Romanian economy

Eugen Rădulescu, the advisor to the governor of the BNR, warns that the budget deficit remains the greatest vulnerability of the Romanian economy, and deviations from the reduction program can have devastating effects.

The increase in fuel prices highlights the budgetary limits of the state, and the support solutions are limited. Rădulescu suggests reducing consumption, including through the use of public transport, as a necessary measure. His analysis emphasizes the deterioration of public finances, with public debt rising to 60% of GDP and record deficits. He also draws attention to the loss of credibility of the Romanian state in front of financial markets, which leads to high borrowing costs. Rădulescu emphasizes that, in the absence of additional fiscal resources, reducing fuel taxes is not a sustainable option, and adjustments must come from consumption behavior.