Washington Times: Romania close to a financial crisis

A Washington Times article discusses the currenct account deficit of Romania and other Eastern European countries, predicting an imminent economic fall if authorities cannot manage holding it under control.

ECIPE director Fredrik Eixon says that Romania’s last year commercial deficit of 10 billion dollars was covered by the foreign direct investments, which amount to some 9 billion dollars quoting Financial Times sources.

He added that almost all Eastern European Countries face these problems but that foreign direct investments will fail to cover the deficit this year.

Things are even more difficult in Latvia: „Latvia has such a high current account deficit that it makes the U.S. deficit look like a walk in the park,” said Fredrik Erixon, director and co-founder of the European Center for International Political Economy in Brussels.