Fiscal Council president warns Romania must raise taxes to fix deficit

Daniel Dăianu, president of Romania’s Fiscal Council, warned that reducing the country’s high budget deficit cannot be achieved solely through expenditure cuts, insisting that increased tax revenues and higher tax rates are unavoidable. Speaking in Parliament on May 27, he described the deficit as "gangrene" for the Romanian economy and said relying on spending cuts alone is an illusion.

“Those who support the thesis that the deficit correction can only be done on the expenditure side are chasing a chimera. Such a thing is not possible,” Dăianu stated, as quoted by News.ro, referencing analyses conducted by the Fiscal Council and his own judgment.