Romania has received a signal of confidence from the EU Council on the gradual fiscal consolidation it needs and the draft budget to be adopted by the end of the month will reflect an approach by which we undertake the reforms and the investments foreseen in the budget-structural plan for the medium term, the Minister of Finance, Tanczos Barna said in a press release, informs Agerpres.
Romania's Budget-Structural Plan and the corrective trajectory within the Excessive Deficit Procedure were approved on Tuesday in the Economic and Financial Affairs Council (ECOFIN), which took place in Brussels.
According to the Ministry of Finance, the meeting also adopted the recommendations regarding the medium-term budgetary-structural plans for 20 member states. In the case of Romania, which was represented at the meeting by Tanczos Barna, Deputy Prime Minister and Minister of Finance, it was considered that the requirements of the EU Regulation on economic governance (2024/1263) were met and the adjustment path was accepted for a period of 7 years, such as the proposed reforms and investments.
"Romania has received a signal of confidence from the EU Council regarding the gradual fiscal consolidation that it needs. Setting the adjustment over a period of 7 years will allow the Romanian economy to maintain an adequate level of public investments, by avoiding imbalances and by ensuring the premises for sustainable economic growth. The draft annual budget to be adopted by the end of the month will reflect this approach, through which we undertake the reforms and investments foreseen in the medium-term budgetary-structural plan. We welcomed the way in which the European Commission and the EU Council approached these recommendations, understanding that, in the current difficult economic and geopolitical context, it is important to fully capitalize on governance framework and implement it in such a way as to ensure sustainable economic growth, as well as reforms and investments necessary," said Tanczos Barna.
According to the the finance minister, the fiscal budget plan aims to stabilize Romania's public debt in a context where Romania continues to be in the first place in the EU, in terms of public investment - over 7% of GDP, reducing the budget deficit to below 3% during the period 2025-2031 and creating the prerequisites for the sustainability of public finances.
Romania received recommendations to maintain expenses within the foreseen limits (the annual ceiling on the annual increase in net expenses being 5.1% in 2025, 4.9% in 2026, 4.7% in 2027, 4.3% in 2028, 4.2% in 2029 and 3.9% in 2030) and the end of the procedure of excessive deficit until 2030.
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