President Iohannis: Gov't, BNR should avoid competing approaches

President Klaus Iohannis met on Wednesday the management of the National Bank of Romania (BNR), represented by Governor Mugur Isarescu and First Deputy Governor Florin Georgescu, underscoring that the independence of BNR in terms of monetary policy decisions is essential, and both the Government and BNR should avoid competing approaches.

"Part of the discussions, an analysis was made of the existing macroeconomics, with Romania's President underscoring that the independence of the National Bank of Romania over the monetary policy decisions is essential, being a fundamental condition for a member state of the European Union," the Presidential Administration says.

Iohannis mentioned that the National Bank of Romania should pursue, with more responsibility and determination, the fundamental objective of ensuring price stability, so that Romanians' incomes will not be affected by decreased purchasing power.

About the coordination of economic policies, Iohannis said that it doesn't mean that the policies of some official bodies should be subordinated to the objectives of others, but all the economic policies should ensure macroeconomic stability and predictability through all the necessary measures.

"President Klaus Iohannis underscored that both the Government and the National Bank must avoid competing approaches, so that institutional co-operation be efficient, balanced and responsible in terms of the economic interests of Romania," adds the Presidential Administration

BNR Governor Isarescu presented the main factors behind price increases, showing that significant influences come from components outside the monetary policy.

At the end of the meeting, Iohannis voiced hope that there will be talks between the Gov't and BNR in the period ahead that will improve the interinstitutional dialogue and co-operation in the economic policy area.

The meeting between President Iohannis and the BNR management is said to have been the result of a need to carry out consultations o to mediate disputes between the Government and BNR over the risks currently facing Romania in terms of inflation and the coordination of economic policies.

Iohannis will be meeting on Friday Prime Minister Viorica Dancila and Finance Minister Eugen Teodorovici.

On Monday, the head of state said he will attempt to mediate between the Gov't and the BNR, by calling both for talks at the Cotroceni Presidential Palace. "I have decided to try mediate between the Government and BNR. In the upcoming days I will invite them both to Cotroceni," the head of state added. Iohannis also said that "the recent controversial statements have gone too far."