AmCham warns “hastily implemented” fiscal consolidation may have long-term cost
The American Chamber of Commerce in Romania (AmCham Romania) says in a statement that it is concerned that, like in the past, hastily implemented and insufficiently analyzed measures, although generating budget revenues in the short-term,…
iulian ernst · Journalist
· Updated · 1 min read
The American Chamber of Commerce in Romania (AmCham Romania) says in a statement that it is concerned that, like in the past, hastily implemented and insufficiently analyzed measures, although generating budget revenues in the short-term, can have direct or secondary negative effects on the medium and long term, including on economic growth.
The association recommends “not sacrificing long-term economic growth for short-term gains.” It calls on decision-makers to pursue transparency and a long-term vision in defining the measures to reduce the budget deficit.
The statement comes in the context of various scenarios being circulated about how to achieve fiscal consolidation.
The Government seeks to bring the budget deficit down to 4.4% of GDP this year from 5.7% of GDP in 2022, but the deficit already exceeded 2.3% of the year’s projected GDP in January-May and risks exceeding 6% unless corrective measures are taken.
(Photo source: Facebook/AmCham Romania)
