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Political turbulence might affect Romania’s economic development

The political instability through which Romania is going after the resignation of Ponta's cabinet might affect it economically. The governor of Romania's National Bank, Mugur Isarescu, stressed that the current macroeconomic situation is stable but is being monitored, and, the country's general position is a good one. Even so, he insisted on the caution which must be taken when dealing with current difficulties. He then added, as a BNR press release reports, that “ the general context has added problems in terms of making monetary policy decisions. Internally, the process of appointing a new government accentuates certain insecurities concerning the mix of macroeconomic policies, especially since the budget for 2016 has still yet to be set up.”

Isarescu also made reference to the global instabilities noting “ the external environment also continues to be marked by incertitude, especially because of the economic developments in China and other major emerging states. All of this has a certain effect on economic growth of the eurozone and also globally. Add on top of this the continuation of divergent behaviors when it comes to monetary policy, of the most important banks of the world,

In 2014, the budged for 2015 was authorized by December 21st. Even though parliamentary groups belonging to PNL (National Liberal Party) voted against the budget, seeing it as “unprofessional and unrealistic”, while PSD ( the Social Democrat Party) tried to keep the peace for the sake of economic cooperation, the vote took place as planned and the budget was successfully adopted. Political bickering therefore, did not stand in the way of the steps which were necessary to be taken for the state's stability and economic security.

Putting aside political differences is probably not an option for this year, since civil society's discontent has proven more vocal each day. Perhaps the greatest difference in how things have been developing this year is that the people seem to want to change the entire political class. If such a thing were at all possible in a short period of time, it would still leave many issues relating to the actual governing of the nation unresolved.

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