Romania misses chance to escape pro-cyclical policies

Romania has missed again the chance to get out of the trap of pro-cyclical policies that stimulate the economy when it’s already on an uptrend, said the Fiscal Council president Ionut Dumitru. The country will witness several tax cuts this year and the next year while the GDP is already growing above the potential, he added, reports local Agerpres. Romania had an anti-cyclical policy only in 2000. The Government tried to stimulate the economy when it needed it. In the conditions of a GDP below its potential, fiscal stimuli were positive. In 2015, the policy was rather neutral, and the country almost managed to get out of the trap of pro-cyclical policies. Dumitru explained. editor@romania-insider.com