The European Commission has found that Romania has not taken effective action following European Council's recommendation in June on excessive spending.

The EC has now proposed the Council to adopt a revised version of the recommendation so that Romania corrects the significant deviation from its path towards the medium term budget deficit target.

The nominal growth rate of primary government spending should not exceed 3.3% in 2017, read the EC recommendation in June. This corresponded to an annual structural adjustment of 0.5% of the GDP.

Romanian authorities sent a report in October describing its actions after the Council’s recommendations. However, none of the actions were efficient, according to the EC. The European Commission has a revised recommendation for Romania. The annual structural adjustment should reach at least 0.8% of the GDP.

editor@romania-insider.com