Correcting the deficit is a priority for Romania, and the recent fiscal package pledged by the government provides the necessary basis for a credible adjustment, which was discussed in detail with representatives of the European Commission, Finance Minister Alexandru Nazare said on Tuesday at the ECOFIN meeting.
"We sent our European partners a firm signal that Romania is responsibly committing to fiscal consolidation. Deficit correction is a priority, and the recent fiscal package pledged by the government provides the necessary basis for a credible adjustment, discussed in detail with representatives of the European Commission. Our goal is to avoid major risks related to the suspension of European funds and the downgrading of the country's rating, which would impede on our access to international financial markets," Nazare said, as cited in a release.
The Finance minister participated on Tuesday in Brussels in the Council of EU Economy and Finance ministers - ECOFIN, where he presented the package of measures to reduce the budget deficit.
The Finance minister gave assurances that the adopted measures, which target both the revenue and expenditure chapter, will be followed by additional reforms, so that fiscal consolidation does not compromise the growth potential of the Romanian economy.
In his turn, the Vice-President of the European Commission, European Commissioner for Economy and Productivity Valdis Dombrovskis said that the package presented by the Romanian official "is an important and positive step towards compliance with the new recommendation on the excessive deficit, with the proviso that all measures are quickly and fully adopted and implemented."
Thus, by October 15 Romania must take steps for the timely correction of the excessive deficit.
"The Finance Ministry announced that the package of fiscal-budgetary measures pledged by the Romanian government was appreciated by the European Commission as an important and positive step in achieving the goals of the excessive deficit procedure. (...) At the ECOFIN meeting today, the European Commission adopted a set of Recommendations by the Council of the European Union", the release states, noting that Romania should make sure that the nominal growth rate of net expenditure does not exceed 2.8% in 2025, 2.6% in 2026, 4.6% in 2027, 4.4% in 2028, 4.2% in 2029 and 4% in 2030. The excessive deficit situation should end by 2030.
"Romania should take effective action and submit the necessary measures to ensure the timely correction of the excessive deficit, by October 15. Subsequently, until the excessive deficit is corrected, Romania is required to report on the progress made in implementing these Recommendations at least every six months: in spring, when presenting its annual progress report, and in autumn, by October 15," the Finance Ministry specifies.
The European Commission will carry out a full assessment of the impact of the relevant package in autumn this year.
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