Romania's next government will have tight deadline for budget consolidation plan

The new government to be formed by president-elect Nicusor Dan within three to four weeks based on a ruling majority that was not yet agreed upon will have a tight deadline and less than two months to come up with a fiscal consolidation plan aimed at bringing Romania's public deficit back on the trajectory set under the seven-year plan agreed with the European Commission last autumn.

President-elect Nicusor Dan said, in a Financial Times interview, that a 7.5%-of-GDP [ESA] gap is the most Romania can hope, according to Economedia.ro. But this would still be enough compared to the 7% official target under the seven-year consolidation roadmap, a 7.5% gap seen as acceptable by the rating agencies, and an 8.6% outcome under the no-policy-change scenario of the European Commission.