Romania cuts public deficit by 41% y/y to 2% of GDP in H1

Romania’s general government budget posted a deficit of RON 41 billion (EUR 7.8 billion) in the first half of 2026, which was 41% less than in the same period of 2025. The deficit-to-GDP ratio dropped to 2% of GDP, from over 3.6%, setting the grounds for robust fiscal consolidation this year – when the full-year deficit is planned at 6.2% of GDP, down from 7.6% in 2025.

Interim finance minister Alexandru Nazare said the first-half fiscal results send a positive signal ahead of upcoming sovereign credit assessments by Fitch Ratings and Moody's, but stressed that preserving Romania's investment-grade rating depends on continued fiscal consolidation, implementation of the National Recovery and Resilience Plan (PNRR), and political stability, Ziarul Financiar reported. Fiscal consolidation efforts in the coming years, towards the 3% of GDP target, will be less intense than this year and in 2025 - but the drafting of the 2027 budget plan depends on the formation of a new ruling majority.