XTB: Romania's budget risks again to be too optimistic

'The decision to increase the share of investment expenditure to 6.5 percent points to a correct direction, but insufficiently courageous. A more efficient option could have been the reduction, or at least the capping of expenditures with procurement of goods and services and re-diverting the added funds towards investments. Overall, the budget is again too optimistic in the face of reality, the way it is foreseen now. The target of 1.9 percent for the budget deficit seems difficult to achieve in 2012. It would have been preferable to be positively surprised after we set more cautious expectations, than to be unequipped for revenues below forecast and to report a higher public deficit than the estimated one', stressed Victor Safta, branch manager of the X-Trade Brokers Romania.

According to the X-Trade Brokers analysis, Romania has to face a double challenge: a slowdown on the main export markets and, respectively, the risk of a narrowing of the funding pipeline coming from Western banks, confronted with an acute capital need in the countries of origin.

X-Trade Brokers was officially launched on the market in Romania in February 2009, the monthly trading volumes reaching (a margin of) one billion euros, Agerpres informs.