In line with the position of president Nicusor Dan, Romania's foreign minister Oana Toiu avoided taking sides in the conflict between the European Union and the United States, prompted by Donald Trump's decision to take over Greenland "one way or another" – a conflict in fact not even mentioned by minister Toiu or president Dan in their public communication. The security and subsequent macroeconomic stability (cost of financing) impacts of the developments outweigh the trade implications of tariffs mentioned by Trump.

For Romania, which hosts US military assets on its territory and largely depends on the security provided by the alliance, given its proximity to Russia and weak military endowment, a weakening of the alliance followed by a weaker posture on the Eastern Flank is a worst-case scenario to be avoided at any cost.  

Macroeconomically, the first transmission channel is the financing cost and the fiscal consolidation gains under these circumstances, more than the economic implications.

"From our perspective, Romania's, the next steps must be de-escalation steps. Romania has a very clear interest in strengthening NATO, it has a very clear interest in the transatlantic relationship, both in terms of security and economic components," foreign minister Toiu told Euronews Romania.

In a brief message posted on X, president Nicusor Dan reacted to the rising tensions between the United States and its European partners related to the transfer of Greenland from Denmark to the US. 

"I am deeply concerned by the escalation in public statements between transatlantic partners and allies regarding recent developments. 
We have to resume talking directly to each other, at the appropriate diplomatic levels," president Dan said.

iulian@romania-insider.com

(Photo source: Inquam Photos/George Calin)