National Bank of Romania (BNR) governor Mugur Isărescu has urged the parties that formed Romania’s former governing coalition to return to negotiations and avoid public statements that could damage the country’s economic interests.

Speaking at a press conference on Thursday, August 13, Isărescu warned that political comments can affect Romania’s financial standing, particularly during periods when the country is being assessed by international rating agencies.

"There is one thing that should give us food for thought: in these difficult situations, words are louder than deeds; pay attention to statements," Isărescu said, quoted by News.ro.

The governor referred to public discussions in April and May about a possible reduction in value-added tax (VAT), saying that political statements need to be weighed carefully.

"It’s not just about decisions, but also about words that need to be weighed more carefully when they are said in public, otherwise, we will suffer," he said.

Isărescu said the positive assessments from rating agencies ultimately reflected measures adopted by the governing coalition, despite disagreements among the parties over fiscal policy.

"Not everyone agrees with the measures in the same way. If you are on the right, you consider that VAT, the majority of VAT, is the best decision. Those on the left say: 'No, sir, it is regressive, it is regressive taxation, it is not good'. And tensions arise," he said.

He called on the coalition parties to resume talks and reach compromises needed to advance the country.

"But, in the current situation, if it has come to this, I think that the coalition parties must sit down at the table again, as hard as it is for them. Effectively, politics - I was in politics for a year - is the art of compromise, right? Everyone must make the necessary concessions to take the country forward," Isărescu said.

The BNR governor also criticised the public airing of disagreements during negotiations, saying political parties should resolve disputes privately.

"They sit down at the table, negotiate, make mutual concessions. Inside the hall or negotiation room, it may seem like it’s absolutely normal – I was prime minister, I witnessed such things – but in public, all these discussions must be closed, which are ultimately useless, because they don’t benefit anyone, any party," he said.

(Photo: Octav Ganea/ Inquam Photos)

iulian@romania-insider.com