Bolojan: I am optimistic that, based on what this Government has done, Romania's rating will be maintained

  Interim Prime Minister Ilie Bolojan stated on Thursday that he is optimistic the country's rating will be maintained, with a stable outlook for the period ahead.He noted at a press conference at Victoria Palace that rating agencies take into account figures, political stability, and the outlook for the next two to three years when conducting their evaluations."The most important factor used for assessment is the data?raw figures and up-to-date statistics?reflecting what a country has achieved by the time of the evaluation. We are currently at the end of the first half of the year. (...) The Government?working through its ministries, including the Ministry of Finance, and in partnership with the National Bank and all other relevant institutions?has focused on honoring all the agreements we reached, and indeed we have succeeded in meeting our deficit targets; this is crucial because our country's debt and deficit levels are the two key factors that determine our capacity for future action," Bolojan explained.According to the interim prime minister, given that debt is rising rapidly and the costs of servicing it are becoming very high, no matter which government is in power, it is nothing more than a "payment agency.""The deficit figure is a vital indicator, as it reflects our ability to spend only what we can afford. The lower the deficit, the better our trajectory; we avoid mortgaging the future of coming generations and stop spending the equivalent of the cost of highways on interest payments alone, year after year. From this perspective, any rating agency assessing Romania notes that?compared to the 9.3% deficit we previously faced?we have achieved significant reductions over the past year. These cuts inevitably entailed social costs, as such measures cannot be implemented without causing some disruption. I would like to take this opportunity once again to thank the Romanian people for being part of this effort," he stated.Bolojan highlighted that political stability also carries significant weight in an agency's assessment. "Perhaps now, some time after the fall of this government, we realize the sheer irresponsibility involved in toppling a government without having a replacement ready. We also realize that a climate of political uncertainty makes it impossible for agencies, citizens, or investors to accurately predict the public policies a country's administration will pursue in the absence of stability. (...) Even the wage law?given some effort and mutual understanding?could be passed in a week or two; I don't see an issue there. Despite recent events and the aggressive maneuvering driven by score-settling or political posturing, the required milestones were ultimately approved as intended. Yet, beyond the specifics of any particular text, the crucial point is that Romania has passed the test of meeting these milestones, thereby ensuring we do not lose billions of euros that are vitally important," the interim Prime Minister added.He further emphasized that the country certainly needs a stable government as soon as possible, but one that continues with necessary actions rather than merely those that "look good"?specifically: controlling debt levels, continuing to reduce deficits, fighting tax evasion, improving revenue collection, further cutting state spending, battling the cartel of the privileged who oppose any measure to normalize a given sector, and doing what is right for Romania; for in doing so, it gains the confidence of investors, the European Commission, and rating agencies.The two-to-three-year outlook is the third factor considered by rating agencies, and the years 2027-2028 are pre-election and election years, Ilie Bolojan noted, pointing out that the "appetite" for reforms has historically been quite low during such periods."Consider the public statements being made right now?during parliamentary debates?claiming that we can unfreeze all hiring, raise salaries, and that there are no issues whatsoever with these measures. If one looks at what happened in Romania in 2023 and 2024?specifically, how the appetite for reform wanes while the tendency toward populism and irresponsibility surges during pre-election periods?it becomes clear that, realistically speaking, we likely have a window of six to twelve months. This is the time for incoming governments to make necessary corrections and safeguard Romania's future stability. Otherwise, reducing the deficit next year will be impossible unless these measures are adopted before the budget draft is finalized at the end of this year. It is hardly surprising, then, that looking at the 2027-2028 outlook and the current public discourse, there is genuine concern about the future," he said.Bolojan emphasized his confidence that the country's credit rating would be maintained: "I am convinced there are rational people in this country who understand the need to treat matters seriously. (...) I am optimistic that?based on this Government's actions to date, for better or worse, and the fact that rational behavior exists alongside empty rhetoric?Romania's rating will be maintained in the period ahead; furthermore, through the measures I believe must be taken, we can move toward a stable outlook. This is the only way to lower borrowing costs?not just for the state, but for Romanian companies as well?because, like it or not, a competitive economy generates more tax revenue, enabling us to address people's needs. If we fail to maintain a competitive economy, we will have achieved nothing."  (Photo:https://gov.ro/)