FinMin Bolos about message conveyed by IMF representatives: You nees additional measures to fight fiscal evasion

Marcel Bolos, the finance minister, mentions on Facebook the warnings made by the International Monetary Fund about reducing budget deficit and the additional measures to be adopted by Romania to fight evasion.   “They appreciated out efforts to implement economic reforms and policies but pointed out that we need fiscal-budget sustainability, we should reduce budget deficit and take additional measures to fight evasion. In themeantime EU countries which 'donate' for us are watching us shrug,” Bolos wrote on Facebook, on Tuesday.   On Monday, the finance minister met the IMF team present in Bucharest, headed by Jan Kees Martijn, the head of the mission for Romania.   The latter reminded that the European Commission had also warned Romania recently about budget deficit, which in his opinion could reach “alarming levels”, unless measures are adopted. According to a press release of the Finance Ministry, fiscal policy, recent macroeconomic evolutions and structural reforms assumed by Romania through the National Plan of Recivery and Resilience are some of the topics analysed on Monday by the ministry official and the IMF team.   “The annual inflation rate has continued its descending trajectory, reaching a single figure in July. Compared to similar economies in the area, we recorded a lower inflation level against Hungary, Poland and Czechia. The drop of the inflation rate in the first seven months of the year was triggered mainly by the dynamics of energy and fuel prices. As for the labour market, Romania shows resilience, the number of employees growing to historic levels, on behalf of private sector employees. The dynamic of the purchase power remains positive, in the context of a salary increase of the inflation rate. As for resources, services remained the main growth engine, with a contribution of 1.8% in the first semester, while the structure of economic growth in the first half of the year was more favorable to investments, compared to the same period of last year”, minister Bolos explained to the IMF delegation.   The IMF team said it appreciated and encouraged engagement and efforts made by the Romanian government to implement responsible economic reforms and policies, to ensure a climate favorable to durable development. Also, it pointed out the need to identify and implement measures of fiscal consolidation, including the reduction of non essential expenses and improving income collection. Moreover, representatives of the international financial institution pointed out the importance of continuing structural reforms to stimulate economic growth and creating an evironment favorable to investments.   The sides decided to have a new series of talks next week. In the meantime, IMF will meet National Bank representatives, pther government agencies, representatives of the private sector and non-governmental organizations.   An IMF team, headed by Jan Kees Martijn will be in Bucharest over September 25 – October 4, 2023, for the annual analysis of Romanian economy, based on Article IV. Such consultations take place periodically with all IMF member states and are a mandatory supervision exercise for all member states.