ECOFIN concludes Romania failed to observe its January 21 recommendation on excessive deficit

The Economic and Financial Affairs Council (ECOFIN) on June 20 adopted a new decision establishing that Romania has not taken effective action in response to Council recommendations in the context of the Excessive Deficit Procedure. No further action was taken yet, however.

Specifically, Romania failed to observe ECOFIN’s January 21 recommendation, which stipulated that the country should take steps, including reviewing its tax framework, with a view to boosting budget revenues. It also failed to deliver, by April 30, the annual update on the progress along the seven-year fiscal consolidation plan.

“Net expenditure has grown in 2024 much faster than recommended, leading to a persistent high government deficit and putting at risk a timely correction of Romania’s excessive deficit by 2030,” the decision endorsed by ECOFIN on June 20 establishes.

The decision opens the way for possible further steps if Romania does not take swift action to reduce its budgetary imbalances, according to the official press release issued by ECOFIN.

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