“2012 is an election year, when politicians can get extremely generous” with public funds, “but the people will have to pay for that generosity after the election,” Basescu said.
“Maintaining the objective of 2015 for the euro generates the necessary discipline,” FT reported the Romanian head of state as saying.
He said Romania would consider very carefully whether it was appropriate to join in 2015, even if it had met the Maastricht convergence criteria. “It is relatively easy to reach the budget deficit and inflation objectives,” he said. But at that moment you have to look at how competitive your economy is.”
Basescu also defended the tough austerity measures taken in the past two years, including a 25% cut in public sector pay last year – partially reversed in January – and 5 percentage-point increase in value added tax. The measures have hit hard the popularity of the president and government – which has survived five no-confidence votes – but markets have praised Romania’s determination to rein in its finances, FT wrote.
“Sometimes politicians have to pay the price when people don’t like measures,” said the Romanian president. “If growth will start to be consistent, probably the ruling party will be saved” at next year’s polls, he added. “Otherwise, not.”