Romania’s Fiscal Council cautiously optimistic about fiscal consolidation in 2026

Romania’s Fiscal Council expressed cautious optimism that the fiscal measures adopted in the second half of 2025 could reduce the budget deficit to around 6.5% of GDP in 2026, according to its assessment of the second budget revision approved by the government. The Council stated that such an outcome would represent a significant improvement from the 2024 level and align with Romania’s medium-term budgetary and structural commitments.

The institution noted that the country’s tax revenues remain among the lowest in the European Union. In 2024, Romania collected tax revenues equal to 28.7% of GDP, compared with 35% in the Czech Republic, 35% in Hungary, 37.5% in Poland, and an EU average of 40.1%.