Prime Minister Ilie Bolojan said on Monday that 2026 will be more challenging than initially estimated, citing Middle East tensions that are driving up prices and contributing to a slight economic contraction.
"When you have four parties in a coalition, it is not easy to take complex measures, to close budgets or to carry out reforms, it is not easy. (...) It will certainly be a more difficult year than we estimated at the beginning of the year, because at that time we did not have the situation in Iran, which complicates matters significantly, with effects across the world, including on European markets, and inevitably leads to rising prices, which in turn mean a slight economic contraction and, alongside our domestic situation in Romania, indirectly affect us," Ilie Bolojan said on private broadcaster Digi 24.
He added that "corrective measures inevitably lead to a slight economic contraction".
Asked about the decline in industrial production, the prime minister said Romania is not alone in the markets.
"We are not alone in the markets, we are part of interconnected markets, and if the European economy performs well, it acts as a locomotive pulling us along. If the European economy does not perform very well, it has an inhibiting effect on Romania's economy, because many of our companies are part of various production chains linked to European markets. At the same time, the more investment we have in Romania - private, foreign or domestic - the more industrial production grows, and the more we export, the more our industrial output increases. But it is very difficult to eliminate these twin deficits, both the trade deficit, as we import a lot, and the budget deficit. There are no solutions without some cost in addressing such situations," Bolojan added.
The prime minister also said he has consistently tried not to create "expectations that cannot be met in reality" and to remain honest with the public.
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