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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

EC: RO needs structural actions to curb public deficit even under best-case scenario

Based on the European Commission's 2020 autumn forecast and the analysis of recent macroeconomic and budgetary developments, Romania is unlikely to make the adjustments that would be necessary to ensure that the excessive deficit identified in the April Recommendation is corrected in the foreseeable future, the EC concluded in its November 18 communication on the fiscal situation in Romania.

Even if they manage to reverse the 40% pension hike and the doubling of child allowances, the Romanian authorities will still need to consider substantial structural actions on both the revenue and expenditure sides to set the deficit on a declining path and prevent a steep increase in the debt-to-GDP ratio, the EC says.

Due to the current high uncertainty, fiscal sustainability risks will be reassessed in spring 2021, the Commission announced.

The EC placed Romania under the excessive deficit procedure (EDP) in April 2020 due to the Treaty deficit threshold breach in 2019.

In light of the continued high uncertainty due to the coronavirus pandemic, the Commission considers that a decision on further steps in Romania's excessive deficit procedure should be postponed.

It will reassess Romania's budgetary situation in the spring of 2021.

(Photo: Pixabay)

[email protected]

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

EC: RO needs structural actions to curb public deficit even under best-case scenario

Based on the European Commission's 2020 autumn forecast and the analysis of recent macroeconomic and budgetary developments, Romania is unlikely to make the adjustments that would be necessary to ensure that the excessive deficit identified in the April Recommendation is corrected in the foreseeable future, the EC concluded in its November 18 communication on the fiscal situation in Romania.

Even if they manage to reverse the 40% pension hike and the doubling of child allowances, the Romanian authorities will still need to consider substantial structural actions on both the revenue and expenditure sides to set the deficit on a declining path and prevent a steep increase in the debt-to-GDP ratio, the EC says.

Due to the current high uncertainty, fiscal sustainability risks will be reassessed in spring 2021, the Commission announced.

The EC placed Romania under the excessive deficit procedure (EDP) in April 2020 due to the Treaty deficit threshold breach in 2019.

In light of the continued high uncertainty due to the coronavirus pandemic, the Commission considers that a decision on further steps in Romania's excessive deficit procedure should be postponed.

It will reassess Romania's budgetary situation in the spring of 2021.

(Photo: Pixabay)

[email protected]

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