recruitment of EUR remains an unattainable goal for Romania According to Governor Mugulu Isarescu, this is due to the continuing budget deficit. bank of Romania (NBR), as quoted by local media. RomaniaLast year's budget deficit was 5.68%, one of the highest in the European Union, far exceeding the requirements for adopting the single currency. Even before the pandemic, Romania I struggled to meet these standards.
Isarescu explained that it will be difficult to reduce the budget deficit to less than 3%, as required by the European Union. He said the challenge lies in balancing interest rate policy with spending cuts, saying the numbers simply don't add up. He stressed the importance of finding a path to Europe's fiscal health, but also noted: RomaniaBudget revenues are below 30% of GDP, making it difficult to achieve the inflation target.
The governor has emphasized that fiscal consolidation is essential, but believes the often-proposed tax increases are politically unfeasible before the next election. He also suggested that tackling tax evasion and reducing tax cuts could lead to higher revenues. But Isarescu predicted it would take four to seven years to reduce the budget deficit enough to seriously consider adopting the euro.
At 75 years old, Mugulu Isarescu is Central's longest-serving player. bank Governor of the world. he led Romaniacenter of bank He has been in office since 1990 and was recently re-elected for another five-year term.
