Romanian President Calls For Prudent 2012 Budget

Romania must use prudence in setting its budget targets for 2012, because the costs to finance the deficit have gone up due to the worsening situation in international markets, President Traian Basescu said Monday.

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"The budget must be very prudent, not because we wouldn't be able to find money to finance the deficit, but because financing it would be very expensive," Basescu told a news conference.

He said the government agreed that the 2012 budget deficit target should be lowered to below 3% of the gross domestic target.

"Due to (the high) borrowing costs, it's advisable to approach the 2012 budget with a narrower deficit. The government must find solutions to reduce the borrowing needs, because the disappointing evolution of the interest rates both in Romania and in the EU countries," Basescu added.

Romania and its international financiers agreed upon a deficit target of 4.4% of GDP in 2011 and of around 3% of GDP in 2012.

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