EC worried about possible spike in Romania’s budget deficit

The European Commission is worried that Romania could have the highest increase in the budget deficit in the European Union this year, although it received assurances from the Government that there are no reasons for concern in this respect, said yesterday Angela Cristea, head of the EC Representation in Romania. She spoke at the launch of the EC’s Economic Report for Romania in 2017. “Romania registered the highest growth in Europe last year, namely 4.9%. At the same time, the report warns that it could have the highest growth of the public deficit this year,” said Cristea, reports local Agerpres. She added that despite receiving assurances from the Government, the EC is like the parent “always worried that the child could get sick.” “Better worry and have nothing happen, so we can conclude in the report next year that we've been worried for nothing,” said Cristea. “We are ready to intervene with measures for reducing costs if we find that we exceed the budget deficit target. The Government keeps the finances within the limit of the budget deficit target of 3% of the GDP. For 2017 we see a budget deficit of 2.98% of the GDP,” said finance minister Viorel Stefan yesterday. Angela Cristea also pointed out that social inequality has been increasing in Romania, a trend recorded since 2012. Poverty has been going down, but social inequalities have been going up. The last estimates of the EC indicate an economic growth of 4.4% for Romania this year. EC sends letter to the Romanian Government asking to reduce budget deficit editor@romania-insider.com