Brussels sends a new alarm signal to Bucharest: Romania’s budget deficit, at 9.3% of GDP, the highest in the European Union, threatens economic stability and European funds.
European Commissioner for Economy Valdis Dombrovskis, present in Bucharest, calls for „bold measures” to correct imbalances and maintain fiscal discipline.
"It is essential to take bold measures to correct this situation and reduce Romania's vulnerabilities. We still expect the budget deficit to be 8.4%, and the target for 2026 must be met to ensure financial stability and correct the excessive deficit by 2030," Dombrovskis stated.
"Romania remains a recommended target for investments"
According to the Commission, Romania ended last year with a budget deficit of 9.3% of GDP, the highest in the Union, and for 2025 it is estimated at 8.3%. "A level that is not sustainable," warned the European Commissioner, adding that recent measures by the Romanian authorities are "moving in the right direction" but remain insufficient.
"Financial markets have recognized the efforts made, and Romania remains a recommended target for investments. It is important to maintain access to international capital markets and to be able to finance policies at acceptable costs," Dombrovskis said.
The European Commission will decide by the end of November whether Romania meets the requirements of the excessive deficit procedure. A positive assessment could lead to the suspension of the procedure and the unlocking of conditional European funds.
PNRR, a major priority for Brussels
Dombrovskis also emphasized the importance of accelerating the implementation of the National Recovery and Resilience Plan, which the Commission positively evaluates. "Romania must complete the plan's implementation by August 2026. It is important to see rapid progress," he said, adding that Brussels is counting on cohesion funds, the SAFE defense instrument, and the long-term European budget as sources of financial support.
Bolojan: November and December will be decisive months for the budget
Prime Minister Ilie Bolojan stated, after meeting with Dombrovskis, that the Government remains committed to reducing the deficit and implementing measures agreed with Brussels. "This year, we set a deficit target of 8.4%. If we maintain budget discipline, we can achieve this goal and regain credibility with the markets and the European Commission," Bolojan wrote in a Facebook post.
The head of the Government specified that the last two months of the year will be crucial for preparing the 2026 budget and adopting a new fiscal package: "We will reduce expenses, increase revenue collection, and prioritize investments. The target for next year is a deficit of approximately 6%."
The Prime Minister also announced that in the first half of November, the ECOFIN Council will evaluate Romania's progress regarding the deficit and the revised form of the PNRR, which could allow for new payment requests to be submitted by the end of the year.
Bolojan further announced that Romania has approximately 10 billion euros from European recovery funds available until August 2026, funds that will be directed towards investments in infrastructure, health, and education. "We will focus on meeting the PNRR milestones to access these funds and maintain economic balance," the Prime Minister concluded.