Isarescu: Path of fiscal-budgetary consolidation is essential for Romania's credibility

The path of fiscal-budgetary consolidation is essential for Romania's credibility, and economic policies must be carefully calibrated, predictable, and?consequently?credible, Mugur Isarescu, Governor of the National Bank of Romania, stated on Tuesday."From the very outset, the work *Financial Sustainability - From Deficits to Nominal Convergence* emphasizes that it addresses a key priority for Romania. The path of fiscal-budgetary consolidation is essential for Romania's credibility. Credibility is hard to earn and easily lost. And the loss of credibility can have far more severe consequences than the deterioration of any single macroeconomic indicator! Economic policies must be carefully calibrated, predictable, and? consequently ?credible. Only in this way can we benefit from investments that support productivity, job creation, and sustainable economic growth," stated Mugur Isarescu at the launch event for the volume *Financial Sustainability - From Deficits to Nominal Convergence*.He noted that this is the second study produced under the Economic@BNR project, coordinated by Deputy Governor Cosmin Marinescu."The project, launched last spring, is poised to become a benchmark for economic research and education, as well as?as today's event demonstrates?a platform for public debate, which is so necessary in the current context. This series of works began with the study 'European Romania: Developments, Progress, and Challenges,' published last April, which outlines Romania's progress as a European Union member state. As for the study launched today, alongside the sustainability of public finances, it addresses issues such as corporate financial discipline, the equity of social systems, the correction of external imbalances, and public debt management. Professor Costin Murgescu, my mentor, often used to say that the true laboratory for an economist is the debate of ideas among specialists. Indeed, as economists, we have no other laboratory in which to conduct experiments! I am a firm believer in debates that contribute to a nuanced understanding of the path toward a better future?just as I expect the debate bringing us together today to be," said Mugur Isarescu.He also highlighted that the Mitita Constantinescu Hall, where Tuesday's event was held, has witnessed numerous debates."We want the ideas and reasoning underpinning economic policy decisions not to remain merely within the walls of the NBR Palace, but to bring balance and added insight to society. I have stated on other occasions that a central banker cannot afford the luxury of isolating themselves in an ivory tower. I would now add that a measured approach to economic policy and a rigorous grounding of decisions?including through substantive debates?have been and remain strictly necessary if we want the economy to stay on the right track. In December 1927, the then-Governor of the NBR, Dimitrie Burillianu, said: 'We (the National Bank of Romania) shall remain faithful to our tradition: we will shun mirages, however alluring; we will avoid haste, however burning the thirst for improvement; and we will tread?thoughtfully and prudently, yet with determination?the well-worn path of reality to achieve fruitful results.' His words remain as relevant as ever. We can achieve a path of economic growth that ensures continued convergence toward Western living standards only if we pay close attention to macroeconomic balances. Without securing these balances, we cannot ensure the durability of a solid economic trajectory. Sustainability?and I wish to emphasize this point?is also essential for adopting the euro," stated the Governor of the National Bank of Romania, Mugur Isarescu.