EC expects Romania's fiscal plan in two weeks and requires bi-annual reporting

In a recommendation to be published on June 23 and proposed for endorsement in the July 8 meeting of the Economic and Financial Affairs Council (ECOFIN), the European Commission sets an updated fiscal consolidation trajectory for Romania, sets October 15 as a deadline for the annual update under the Excessive Deficit Procedure (EDP), and requires bi-annual updates instead of annual updates under the Excessive Deficit Procedure, Cursdeguvernare.ro reported. The updated fiscal consolidation trajectory and the tighter reporting calendar were prompted by Romania's fiscal slippage last year compared to the 7-year consolidation plan previously defined.

In line with the proposed recommendations, Romania will deliver an update by October 15 each year in addition to the regular update due by April 30. This year, in particular, the October 15 update may include a revision of the proposed trajectory under the very likely scenario that the plan proposed by Romania by July 8 (reportedly not including an increase in the standard VAT rate) fails to be observed.