Adrian Codirlașu, the president of CFA Romania, stated that the recent volatility of Romanian assets is closely linked to internal political developments, observed in the capital market, in government bonds, and in the euro/leu exchange rate. He emphasizes the importance of absorbing funds from the PNRR for the sustainability of the budget deficit, mentioning that failure to achieve this objective could severely affect the state budget.
Codirlașu highlighted that rating agencies underline the necessity of attracting EU funds to maintain the recommended investment grade for the economy. He also pointed out that the budget deficit and the current account deficit remain unsustainable, and reforms in the public sector are essential. In this context, the national currency has recently depreciated, reaching a new historical high of 5.1417 lei for one euro, which reflects the economic instability generated by political uncertainties.
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