The repositioning of global businesses is carried out on geostrategic coordinates, and Romania is in the right camp to benefit from these repositionings, this being one of the important opportunities that our country has, Radu Crăciun, economic analyst, founding member of the Financial Analysts Association, said on Monday Bankers, according to Agerpres.
“Romania is under the spectrum of three very important opportunities and we should give ourselves a great effort to throw this country into crisis, despite these opportunities”, Radu Crăciun said at FIAR 2023.
“We already see foreign investments leaving less friendly countries and heading to Romania. Even if it is direct foreign investment, I think we should not underestimate the gearing effect that these foreign investments will have in terms of the environment of Romanian business”, added Radu Crăciun.
According to him, the second great opportunity is the PNRR.
“We are talking about tens of billions of euros that could come to Romania, to contribute to the development of the infrastructure and not only that, to have a gearing effect in the Romanian economy. The third opportunity that is just now starting to be talked about – and which, on the local level, was unfortunately ignored for a long time – it is the process of reconstruction of Ukraine”, added Radu Crăciun.
He mentioned that Ukraine will need at least 400 billion dollars for the reconstruction process – and it would be logical for the countries that are closest to Ukraine to be part of this process.
“So, these are the three stars that can align very nicely for Romania. From my point of view, the risks for Romania are not external, they are rather internal. What are the internal threats? First of all, in the short term is the imbalance budget, which requires a series of measures that I said and I say again, the governments of Romania have never been able to take them alone”, Crăciun added.
According to him, all major budgetary adjustments of Romania in history were made with the International Monetary Fund.
“Each time Romania’s budget took a hit, the current account deficit reached very high values, all the adjustments were made following some IMF programs. This time the Government should do it for sure. The big the question mark is whether he will be able to do this alone because what we see at the moment is that this suboptimal allocation of budgetary resources has not only economic consequences, but also extremely strong social consequences – and we have seen the tensions that are in the street and of those who are disadvantaged by the allocation of resources, but also of those who are advantaged by the allocation of resources – and they cannot lose the privileges they have”, Radu Crăciun added.