The European Commission (EC) may fine Romania if the country fails to meet its commitments to reduce its excessive budget deficit, Bloomberg reported, citing its sources.
The EC is closely monitoring the economic situation in Romania and expects the country's government to present a clear plan to reduce the deficit over the next seven years. It is noted that any deviation from Bucharest's current commitments in the field of economic policy must be coordinated with the EU executive body.
The Romanian authorities, for their part, are trying to avoid sanctions from the EC. The newly elected President of Romania, Nicos Dan, meets almost daily with representatives of the Ministry of Finance to discuss fiscal policy. Finance Minister Marcel Bolos stressed that “at this stage, Romania must meet its budget reform commitments before asking the EC to review ways to reduce the budget deficit“.
In 2024, Romania recorded the highest budget deficit in the European Union - 9.3%. The country has outlined a fiscal consolidation plan to reduce the deficit to 7% this year. However, data from the beginning of the year show that the deficit remains high while the economy is stagnant. Dan had previously said that reducing the budget deficit is a priority for the country.
According to the EU treaties, the EC can sue a member state that does not comply with EU law, which could potentially lead to a fine. According to the Stability and Growth Pact, the budget deficit of EU countries should not exceed 3% of GDP.