WB to help Romania keep budget deficit in check

WB Vice-president for Europe and Central Asia Philippe Le Houerou told a press conference organized during the International Monetary Fund and the World Bank's spring session that the department under his conduct carefully watches the developments in the financial bailout plan for Greece, adding that he fears the regional impact of this situation, especially in the Balkan countries, radio Romania Actualitati (News of the Day) reports.

In connection with Romania, the World Bank official mentioned that the deficit needs to be kept under control, as fiscal pressures are very high. This is a an acute challenge, in the context of a relatively weak economic recovery, but given that the banking sector is robust, the World Bank does not believe that fiscal issues will have a negative impact this or next year either.

Le Houerou also mentioned that several countries, not only Romania, are included in this category, but highlighted the extensive social protection as a positive aspect. The question is - the WB official further commented - how to maintain such a level of protection without slipping into a huge fiscal problem and into public debt; the only solution to this dilemma is to increase the efficiency of the social protection, education and health care systems with benefits addressed to the poor.

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