Economic Crisis To Hit Us If We Don't Show Prudence – Romanian President

Although the current financial crisis has not affected Romania, its follow-up won't spare the country unless prudence is shown, Romanian President Traian Basescu said Thursday in Brussels.

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Basescu said the main topic discussed at the European Council was the financial and banking crisis which currently affects states of the European Union.

Member states ought to take concrete actions to reduce the effects of this crisis, including the setting up of an informal network formed of representatives of banking institutions, which have control attributions within national systems, he added.

Basescu said the “second stage”, the economic crisis, “will follow”.

Romania will not be hit by the international financial crisis due to prudent banking norms, he said. He added other states of the European Union are far from the prudent banking norms Romania observes following the situation it underwent at the end of the 1990s.

“Even if the financial crisis has not hit us due to our accomplishments, the economic crisis will not forgive us if we are not cautious,” Basescu warned.

He said investments in Romanian economy show signs of slowing. Basescu added the economic crisis is not dependent on the governing system or the banking one, but on Romania being part of the global economic system.

Basescu pointed out the need to direct budgetary resources to production instead of consumption.

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