Romania, unique performance in the EU. Daniel Dăianu: Lowering the deficit from over 9% to 6% is a remarkable act. “It was devastating”

Romania is passing through a complicated period from an economic point of view, marked by important austerity measures, the positive effects of which are beginning to be seen in the figures published by official statistics. In an interview given to “Adevărul”, the president of the Fiscal Council, Daniel Dăianu, emphasizes that the executive managed to stabilize the “ship”, and the premises are that Romania will end the year 2025 with a deficit in the forecasted target of 8.4%. Regarding the year 2026, the academician is of the opinion that Romania no longer needs any more tax increases compared to those already established in order to comply with its commitments to reduce the budget deficit.

Academician Daniel Dăianu, president of the Fiscal Council. PHOTO: Inquam Photos / Octav Ganea

The first signal of confidence offered by the president of the Fiscal Council refers to the state's ability to close the year 2024 within the assumed parameters, thus providing a solid basis for the future budget construction.

“It is feasible to end the year with a budget deficit of 8.4%. That is, the situation is under control. And the Fiscal Council will mention this in the opinion we will make on the draft budget for 2026. So I appreciate that 8.4 is achievable. It would actually be another two percent of GDP in December, when payments are made. The use of the Reserve Fund is not accidental, although we have denounced its use as a de facto rectification. On the other hand, we can't stretch the rope too much. It's one thing to abuse the Reserve Fund and it's another thing to intervene when there are funding problems at hospitals. So you always have to be careful when you assess how the Reserve Fund is used.” explained Daniel Dăianu in the interview for “Adevărul”.

A unique performance in the European Union

Dăianu emphasizes that Romania is making an unprecedented fiscal consolidation effort among member states, a fact that should generate confidence among external partners and financial markets.

“To go down from over 9% to almost 6% is a performance. I don't think there is a similar case inside the European Union. But there was no country that had such a devastating deficit either. I saw comments again that these measures were not needed, that Romania was not threatened. I am embarrassed by such statements. The direction is correct. Romania can finish next year without new taxes and duties. It is not rosy, but it is not without hope. We must collect from teeth.”, the academic shows

Consolidation with no new fees in 2026

The most important news for the business environment and citizens is the absence of new tax burdens in the coming year. Although adjustment comes through other channels, such as controlling spending, it ensures long-term stability.

“We have said quite clearly that there is no need for increases in taxes and fees. With the set of measures now, no doubt they are painful, because the increase in VAT is seen at the level of the whole year. But the set of measures allows us to bring the deficit to 6.5%, in the sense of 6.5%. In 2026, due to the fact that the procedure from the end of 2024 is used again, pensions do not increase, salaries of budget workers You have seen that a compromise has been reached and only from July 1 will that tax be reduced. But the business environment and everyone must understand that it is impossible for some to be satisfied and others to be beaten.” emphasizes the president of the Fiscal Council.

“Romania is not the black sheep of Europe”

The academic urges a more balanced view of the country, stressing that the state should focus on combating the great tax evasion.

“Romania is not a deeply corrupt country as a whole. Simple people are not corrupt. Big corruption is of a different nature. We need a partnership between the honest part of the state and the honest part of the business environment. Big evasion and big optimizations have to be fought. Romania is not the black sheep of Europe. It has good parts and bad parts. The government has to manage this reality in a difficult period. There are no big changes in taxes and duties. There is also an improvement of collection, you have seen the figures announced by Minister Nazare (ed. – Minister of Finance, Daniel Nazare), but there is also a reduction in budget expenses in real terms. This is where Romania's budget wins.” says Daniel Daianu.

Finally, the president of the Fiscal Council warns that, in the current context, political stability is absolutely essential for budgetary consolidation.

“Romania needs social and political stability. Politicians are fighting each other, even in the coalition. It is not good at all. Those who finance us judge us and can ask if the coalition breaks, if the reforms will continue or be reversed. 2026 is a key year for Romania. We must not abdicate these measures. I am depressed by the political fights, but there must be reason. If we discredit this government, the financing costs will grow up. We have to move forward.”, concluded the president of the Fiscal Council.