EC encourages Romania to continue fiscal consolidation, implement RRF reforms

The Romanian authorities are encouraged to continue budgetary policy measures in line with the fiscal consolidation trajectory recommended at the European level, the European Commission said in an official answer returned to Economedia.ro. The Commission will publish its assessment of compliance with commitments under the excessive deficit procedure on June 3.

On a positive note heralding a positive report on June 3, the Commission highlighted that Romania's budget deficit fell to 7.9% of GDP in 2025, from a peak of 9.3% in 2024, while expressing expectations for a further significant reduction in 2026 based on budget execution in the first months of the year [1% of GDP deficit, versus 1.3% of GDP plan and 2.2% of GDP in Q1, 2025).

According to European officials, this development reflects the adoption of several fiscal consolidation packages in the last year, considered "adequate" in scope and structure.

In parallel, public investment is expected to increase from around 6% to almost 7% of GDP in 2026, largely supported by funds from the Recovery and Resilience Mechanism, which could support the economy in the coming period.

The Commission also said that Romania must continue implementing the National Recovery and Resilience Plan (PNRR/NRRP).

The institution said it remains engaged in a "constructive and cooperative dialogue with the Romanian authorities" and will continue to support the implementation of the recovery plan, in the context of the political instability generated by the fall of the government.

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