Financial Press Review, 27 May

Below the headline ‘Băsescu Invites Isărescu in the Arena’, the Ziarul Financiar reads that ‘the President’s acid statements’ at Radio Romania News are a reaction to the NBR Governor’s ‘criticism at the Government’s fiscal policy, which has allegedly extended the recession’.

The newspaper considers that the ‘relationship between the President and the NBR or the Central Bank and the Government has been good, despite rejoinders from both sides. And the fact that the President likes receiving advice from NBR specialists is well known’.

‘On the other hand, despite criticism, the NBR has supported the Government through its stable exchange rate policy’, and ‘Governor Isărescu –for more than 20 years at the NBR – is the only Romanian to have received the greatest distinction in the state, Order of the Star of Romania – the Sash rank, while still alive’, the Ziarul Financiar reads.

The Bursa prints an article entitled ‘General Cleaning: Everything at Constanţa Harbour – Checked by Police’. This is a long-term endeavor that is going to take place next week’ (…) to find out if there are smuggling and tax evasion’, the newspaper reads.

‘The events from the past days show that we cannot go on this way. The smuggling did not even stop during the raids from two months ago’, the newspaper quotes Prolex trade union leader Vasile Lincu.

In an article entitled ‘Cross fire at the Liberal Democrat Party’, the Bursa quotes Vasile Blaga, who believes that Mironescu’s being named Secretary General at the Ministry of Administration and Interior is related to his friendship to Minister Igaş.
Nouriel Roubini, one of the most renowned economists, famous for predicting the 2002 global meltdown, also discussed corruption in this intervention at yesterday’s financial forum in Bucharest.

‘Corruption is a big problem in Romania, and it will have negative effects for both national and foreign investors’, the Ziarul Financiar reads below the headline ‘Roubini about Romania: the Recession Was Painful, But Reforms Are Starting to Show Results’.

The American Analyst also discussed our country’s chances of adhering to the euro zone, the Curierul Naţional reads in an article entitled ‘Nouriel Roubini Tells Us to Take It Easy with the Euro Zone’. ‘Rushing into the Euro zone without being prepared for it is counterproductive, and Romania has to learn from the Greeks’ mistake’, the newspaper reads.

It is unlikely that Romania will adhere to the Euro zone in 2015. Not only is it not ready to do so, but member states are going to oppose it, considering the experience with Greece. Roubini emphasized that it is important for Romania to undergo structural reforms and that waiting for one or two more years to join the Euro zone could be beneficial.

On the other hand, he pointed out that ‘in less than five years the Euro zone could look completely different, because margin states might drop out’, we find out from the Curierul Naţional and the Bursa, which prints an article entitled ‘Romania Is In the Right Direction, But Must Maintain Austerity’.

Translated by: Gabriela Lungu
MA Student, MTTLC, Bucharest University