President Basescu Says EC Head Shares His Standpoint On Core Issues For Romania

Basescu stressed that public expenses only burden the budget deficit and generate no investments whatsoever.

Barroso on Thursday voiced his concern about Romania's rising budget deficit and highlighted that keeping tight grip on the budget deficit must be put on the front burner. He also said Romania must strengthen its measures meant to thoroughly reform its public administration, as prerequisite to further benefit from European Union funds.

He went on saying that the EC has expressed its solidarity with the Romanian people by providing financial aid for Romania in 2009, alongside the World Bank and the International Monetary Fund.

Basescu on Tuesday warned the government that the economic data for the first months of 2010 suggest the budget deficit could exceed 7% of the gross domestic product, above the 5.9% of GDP target agreed with the IMF.

Romania and the IMF signed last spring a EUR13 billion loan arrangement, part of a wider EUR20 billion bailout that includes funds from the EU, the World Bank and other foreign lenders.

In January, joint teams from the IMF and the EC visited Bucharest for the second and third reviews of the loan agreement. Following the mission, the IMF disbursed EUR2.4 billion to Romania.

So far, the Eastern European country has received around EUR11.5 billion from the total aid package.

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