Covid-19 fiscal stimulus in Romania among the weakest in Europe
The Covid-19 fiscal stimulus extended by the Romanian Government last year was amongst the weakest in Europe, with only Slovakia at the same level, according to Profit.ro calculations based on data provided by the association of independent fiscal bodies.
The Covid-19 fiscal stimulus in Romania had a 2% negative impact on the budget deficit last year, compared to a 5%-of-GDP average in Europe. There are important differences between the 27 states included in the report.
Thus, the United Kingdom leads with 13% of GDP, followed by Greece and Ireland - 8% each, Slovenia and Hungary - with 7% each.
The countries with the lowest measures to support the economy were Romania and Slovakia - 2%.
The impact for this year is estimated at 1% of GDP in Romania, compared to the 4% European average.
Only Estonia is spending less this year (0.7%) to support economic recovery. Greece will provide the most substantial support to the economy in 2021, about 9% of GDP.
In Denmark and Ireland the impact will be 8% and 7% of GDP, respectively.
Romania is represented in the association by the Fiscal Council. All the EU countries, except Poland, plus the United Kingdom, are members of the association of independent fiscal bodies.
(Photo: Alksander Zbukov/ Dreamstime)