Intl Fincl Crisis To Affect Romanian Econ, Bks, Unless State Steps In – Rompetrol Official

"The Government should rapidly stimulate the infrastructure development, by amending the expropriation law and by simplifying the administrative obstacles which delay the investments. BNR could loosen its lending conditions and pump money into the economy," Patriciu said.

"Let’s not fight inflation, but the recession threat. BNR is healing the Romanian economy for fever when it suffers from pest," Rompetrol manager added.

Patriciu added the any salary hike measure without an increase in productivity "is stupid, if not a real crime."

"I could not agree with such populist-like measures," Patriciu said, referring to the teachers’ 50% salary hike.

Last week, the Romanian Parliament has adopted a 50% wage increase of the education system employees. Following the announcement, other categories of state employees threatened strike actions if they did not receive the same increase.

On the other hand, Patriciu said Tuesday that the Romanian real estate market is down 50% from early 2008 values, and the trend will continue.

"The client is a slave of the banks and the developers on the real estate market. The average prices per square meter should decrease in Romania," Patriciu concluded.