Warned by Grindeanu not to brag about reducing the deficit, Ilie Bolojan does the opposite and announces the relaunch of the economy in 2026

Prime Minister Ilie Bolojan announces, in a post on Facebook, that reducing the deficit below the previously assumed level and maintaining a high level of investments will allow the relaunch of the economy in 2026. Bolojan's post comes the day after PSD president Sorin Grindeanu warned the head of government not to brag about a deficit reduction made possible by reducing investments and increasing taxes.

“The savings achieved in the second half of last year allowed us to reduce the budget deficit by more than 1% of GDP, below the assumed 8.4% target (…) In 2025 we reduced the deficit without diminishing investments. They totaled 137.5 billion lei, representing more than 7% of GDP. European funds, including those from the PNRR, recorded a high level of overcontracting, and the projects were prioritized”, wrote the head the government.

“Relaunch route” for the economy

He also mentioned the reduction in state spending by his government. Even if they were higher than in 2024, a graph presented by Bolojan shows that, in the second semester, with the installation of the current cabinet, they decreased.

Bolojan admits that budget revenues have increased, including through the increase in taxes, which has led to economic contraction and difficulties “for many Romanians”, but this will allow the tax burden not to increase this year.

“Without increasing taxes, we have a solid basis for relaunching this year. We are working on the construction of the budget for 2026 on a realistic basis. The deficit target is just over 6% and will be finalized in the next period. Inflation will decrease to 4%”, says Bolojan.

According to him, this year 15 billion euros will enter the Romanian economy from PNRR and EU cohesion funds. He announces that at the beginning of next month, the Government will assume responsibility for a set of economic recovery measures, after which the budget for the current year will be adopted.

“I know that, for the time being, the negative effects of deficit reduction are felt in everyday life. From the coming months, following the recovery measures adopted and on a healthier economic basis, Romania's economy will enter a path of recovery”, concluded Bolojan.

Grindeanu's warning

On Tuesday, PSD President Sorin Grindeanu launched a new attack on Prime Minister Bolojan, saying that he expects “that no one in the Government will boast of a potential deficit in 2025 lower than the one assumed before the European Commission” because “you cannot boast that you cut investments and increased taxes.”

The PSD leader also said that the adoption of the package of measures to relaunch the economy represents “a gesture of moral reparation after, in 2025, all the government's effort to reduce the budget deficit was made with the efforts of the population and companies”.

“That's precisely why I expect that no one in the Government will brag about a possible deficit in 2025 lower than the one assumed before the European Commission! You can't brag that you cut investments and increased taxes,” said the PSD leader.

Nazare: “Investments have increased”

Grindeanu's request was ignored after only a few hours, with a press conference held by the Minister of Finance, Alexandru Nazare.

He announced that Romania's budget deficit for 2025 is around 7.7% of GDP, below the government's initial estimate of 8.4%, Finance Minister Alexandru Nazare announced on Tuesday, in a press conference in which he presented the status and timetable for the approval of the 2026 budget.

“Although traditionally Romania surprised rather by exceeding the cash deficit target, this year the cash deficit target is actually lower than the forecasted one, it is around the figure of 7.7% of GDP”, announced the Minister of Finance, Alexandru Nazare, on Tuesday.

He also said that investment had increased compared to the previous year, contradicting the PSD leader who also said on Tuesday that he hoped the government would not boast a smaller deficit after cutting investment and raising taxes.

“The result at the end of the year shows us the opposite. It shows us that investments increased by approximately 15%. Investments for 2025 were 137 billion lei, significantly higher than 119 billion lei in 2024, which signals the fact that we managed to accelerate in 2025 and especially in the second semester of 2025,” said Alexandru Nazare.