Budget execution and the continuity of fiscal consolidation are Romania's main arguments in the current sovereign rating review conducted by S&P, interim Finance Minister Alexandru Nazare stated on Thursday.
"A new round of discussions today at the Ministry of Finance with S&P experts, as part of the sovereign rating review process. Together with colleagues from the ministry's technical team, I presented the latest developments in public finances, the results of fiscal consolidation, and Romania's outlook for the period ahead. Our primary argument remains budget execution. The figures show that the adjustment is not merely about the deficit figure itself, but is one that is beginning to be reflected in the budget structure. We have demonstrated that we can reduce the deficit and keep spending under control while protecting investments funded by European funds and directing more resources toward projects with high economic impact. The results of recent months continue to confirm the adjustment process that began last year and support the arguments I presented today regarding the achievement of the targets set for this year," Nazare wrote on his Facebook account.
The finance minister also highlighted the challenges of the current period, noting political uncertainties, external pressures, and pressures on financing costs. At the same time, Nazare outlined the strategy for the next stage, indicating that the main focus remains on expenditure discipline and the prioritization of investments.
"We also held open discussions regarding the challenges of the current period, including political uncertainties, external pressures, and pressures on financing costs, while outlining the Ministry of Finance's strategy for the next phase. The primary focus remains on expenditure discipline, the prioritization of investments, and the effective use of European funds. The message I conveyed is simple: Romania must stay the course. We cannot allow the progress achieved in recent months to lead to a premature loosening of fiscal policy. External credibility hinges both on the results achieved and on our ability to maintain continuity, regarding both reforms and the fulfillment of our commitments," he stated.
The minister reaffirmed that maintaining the investment-grade rating is the key objective for this period. "
Maintaining the investment-grade rating remains the primary objective for this period. Romania's financing conditions, investor confidence, and the resources we can channel toward development, rather than spending them on interest payments, hinge on this factor. We are at a crucial stage in this assessment, and we have stronger arguments now than we did a few months ago. However, an investment-grade rating is not defended through statements, but through execution, predictability, and consistent fiscal decision-making. Therefore, several elements are essential in the coming period: continuing fiscal consolidation; drafting a credible and realistic budget for 2027; curbing the growth of rigid expenditures; safeguarding European-funded investments and leveraging EU funds to drive economic growth; and pursuing structural measures that reduce the deficit over the medium term. Our ambition goes beyond merely reducing the deficit; we aim to build a more competitive economy, driven by investment, production, and private capital, supported by sound public finances and lower long-term financing costs," the interim Finance Minister added.
The Standard & Poor's evaluation report on Romania is expected on October 2.
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