Romania's fiscal consolidation plan reportedly takes shape, but final decision delayed

The experts of the four parties supposed to form a new ruling majority and a government in Romania by June 15 have agreed on a short list of measures aimed at securing fiscal consolidation in line with the European Commission's requirements and investors' expectations - but deferred the final decision for June 9 when all parties will have agreed over the measures.

Hiking the VAT rates is an almost certain ingredient of the consolidation mix, despite president Nicusor Dan's promise to avoid such a decision. But the direct impact on revenues is likely to secure the entire plan's credibility, which is important for the EU and rating agencies.