S&P: Romania poured gas on fiscal fire

The large public expenses, the deadlock of structural reforms and the possibility of early elections are risks for Romania. According to a research by Standard&Poor's, after joining the EU Romania "poured gas on the fiscal fire". The fiscal evaluation agency mentions in the report on Romania, Bulgaria and Croatia that because of the significant raise of salaries and pensions to start in 2007-2008, the public sector debt, although moderate, will start growing, even if it was at the minimum level in 2006. (...)
S&P analysts estimate that in 2007 and 2008 Romania will manage least to cover for the current account deficit by means of investments. There is outlined that the growth of general governmental expenses is still over the growth of the GDP. (...)

G.M.
Ziua Miercuri 26 Septembrie 2007 http://www.ziua.net/english