The European Commission adopted, on Tuesday, the autumn package of the European Semester and announced that the excessive deficit procedure is suspended for nine member states: Romania, Austria, Belgium, France, Hungary, Italy, Malta, Poland, and Slovakia.
The procedure initiated in 2020 for breaching budget deficit rules will be put on hold; we’re not completely off the hook, though.
In practice, this means that no new measures will be taken immediately (funds won't be cut), but the procedure remains open in case the deficit is not brought below 3% of GDP (which will take time), and the Commission's recommended obligations remain in force.
The situation will be reassessed next spring based on the 2025 data.
Finance Minister is delighted
Finance Minister, Alexandru Nazare, welcomed the Commission's decision, emphasizing that Romania maintains full access to European funds: "Good news from Brussels: The European Commission confirms Romania's compliance with fiscal commitments. The excessive deficit procedure remains suspended, and the suspension procedure for European funds has been frozen - Romania retains full access to essential funding for development. Today's Commission evaluation is a new significant result, validating the intense fiscal consolidation effort made in recent months."
Nazare stated that Romania complies with EU fiscal rules for 2025-2026, and the budget deficit is estimated to gradually decrease to 8.4% of GDP in 2025 and approximately 6% in 2026.
The Minister emphasized that the progress made provides a solid foundation for accelerating investments from the PNRR and the EU budget, as well as for strengthening a resilient economy.
Dragoş Pîslaru is more cautious
Minister of European Projects, Dragoş Pîslaru, however, pointed out that the excessive deficit procedure remains temporarily open, and Romania must continue reducing the deficit: "Good news for Romania: The European Commission confirmed today that our country no longer risks the suspension of European funds, as the measures taken have led to significant fiscal consolidation progress. It is an important signal of trust from our European partners and a confirmation that the direction we are taking is yielding the right results. However, the excessive deficit procedure remains temporarily open. We are still under monitoring, and the expectations are clear: discipline, rigor, and efficient public investments."
Pîslaru added that the adopted measures limit spending growth in 2025 and ensure compliance with targets for 2026, allowing the continuation of vital projects in infrastructure, green energy, digitalization, education, and support for the business environment.
Romania will present the progress made at the ECOFIN meeting on December 12, and the next evaluation will take place in the spring of 2026.
Bolojan: The Commission confirms that our actions have been effective
And Prime Minister Ilie Bolojan appreciated the European Commission's decision as a clear signal confirming the right direction: "Today we received a very important signal from the European Commission, confirming that the measures taken by the Government in recent months have been correct and are starting to yield results. European Commissioner for Economy, Valdis Dombrovskis, conveyed today that, thanks to the fiscal measures adopted this summer, the situation in Romania has improved, and the Commission will not propose the suspension of European funds at this time."
The Prime Minister explained what this means for Romania: "The Commission confirms that our actions have been effective. The excessive deficit procedure remains suspended - meaning Romania is not subject to sanctions. The deficit is starting to decrease, and the trend continues in the coming years. Spending is kept under control and remains close to the recommended ceiling. We will continue investments funded by European funds."
Bolojan further emphasized that the Commission's message is clear: "We must carry on with the planned measures, improve revenue collection, reduce spending, and prioritize budget discipline. We will continue to work diligently, responsibly, and with respect for public funds."
What the European Commission is aiming for
The European Commission maintains monitoring of Romania's fiscal situation and will assess progress in the spring 2026 European Semester package.
The European executive continues to encourage fiscal administration consolidation, budget discipline, and efficient investments to avoid exceeding expenditures and reduce public debt.
Thus, Romania retains essential European funds, remains under monitoring, and is encouraged to continue reforms for sustainable and competitive growth.