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President Klaus Iohannis sent a message on Monday at the "Historical Moment: Emerging Romania" event, in which he states that the transition to emerging market status represents not only a historical performance, but also a confirmation of the development potential available to the country's economy.
"I congratulate the Bucharest Stock Exchange for its efforts in promoting Romania to emerging market status. It is not only a historical performance in itself, but also a confirmation of the development potential our economy has. I hope that this new status will translate into increasing stock market capitalization, so that our country becomes an important player in the financial markets of the region, which is increasingly dynamic and competitive. We all want to see more Romanian capital listed on the stock exchange and more and more companies that turn to the capital market to finance their investment projects," says Iohannis, in the message that was sent by the presidential adviser Cosmin Marinescu, at the event organized by the Bucharest Stock Exchange.
He told the "actors" who form the architecture of the financial system - the Financial Supervisory Authority, the Bucharest Stock Exchange, financial investment companies and other operators - that they have a special role in the Romanian capital market.
According to the president, contrary to some initial insights, the negative effects of the COVID-19 pandemic are proving "deep and long-lasting in terms of the real economy" and that in this context "we could face far-reaching structural changes, by re-establishing some economic sectors or even entire industries, with direct impact not only on companies, but also on states and citizens in general'.
"I have kept on insisting on the need for predictability of legislation and public policies. We have all seen, through OUG 114, where former governments' excesses, ineptitude, but also bad faith in lawmaking, coupled with ignoring the mechanisms of the market economy can lead. You, the representatives of the financial industry, understand best the need for Romania to strengthen, in the near future, on the path of economic responsibility, through policies that restore macroeconomic balances, strongly destabilized in recent years. The situation of public finances is very complicated, with the conditions of a budget deficit estimated at 8.6 pct of GDP in the current year. That is why I once again urge accountability with regard to the management of the budgetary situation. It is imperative to keep away the pitfalls of budgetary populism, which Parliament abounds with at this time, despite any economic and financial records. We must be aware that the safest solution against financial populism is healthy economic education. It guides the development of nations subtly, but essentially," the president said.
President Iohannis launched the entrepreneurial and financial-banking environment to challenge a joint effort to develop economic and financial education, by involving all relevant factors, from regulatory institutions to actors in the financial system and high-profile universities.
He also appreciated that Romania's inclusion among emerging markets is "a strong signal of confidence for investors, a signal of hope and predictability for entrepreneurs, by increasing their financing capacity".
