Prime Minister Bolojan and European Commissioner Valdis Dombrovskis, about the deficit and the PNRR: “November and December will also be decisive for the next year's budget”
Prime Minister Ilie Bolojan and European Commissioner Valdis Dombrovskis held a press conference at the Victoria Palace on Tuesday, October 28, where they discussed, among other things, Romania's fiscal situation and the implementation of the National Recovery and Resilience Plan.
Bolojan reaffirmed the Government's commitment to recovery. PHOTO: Inquam Photos/Octav Ganea
Valdis Dombrovskis declared that last year Romania's deficit reached 9.6% of GDP, the highest level in the European Union, and that brave measures are needed to correct the situation.
“The extent and nature of the measures taken correspond to the efforts to bring Romania back into line with what is necessary. We estimate the deficit to be 8.3% and it is important that the deficit target for 2026 must be respected in order to ensure the financial stability that has been reached and to correct the excessive deficit by 2030”, said the European official.
At the same time, Dombrovskis emphasized that Romania's access to international capital markets and the maintenance of investments depend on compliance with fiscal discipline.
The European Commission will determine by the end of November whether Romania meets the requirements of the excessive deficit procedure. “If the evolution is positive, the commission will be able to avoid the suspension of European funds”, he said.
The Commissioner also emphasized the importance of the rapid implementation of the PNRR, highlighting that the Commission's assessment was positive and that Romania remains an important partner for the current challenges at the European level.
Ilie Bolojan's statements
Prime Minister Ilie Bolojan reaffirmed the Government's commitment to sustainable economic recovery.
“We have set ourselves a deficit target of 8.4%, in the next two months, if we have financial discipline, we aim to reach this target, in such a way as to regain our credibility in front of the markets and in front of the EC. The months of November and December will also be decisive for the next year's budget. In December, we should have the budget law ready, which will also include the deficit target and the main elements related to the budget, and in November it is necessary to adopt a package of measures that will allow us to have stabilization effects in 2026, once included in the budget law.” said Bolojan.
He specified that the Government will adopt measures to reduce expenses, collect revenues and prioritize investments, so as to ensure the budget balance for the following year.
The prime minister also emphasized that the deficit target for 2026 must be closer to 6% and that the implementation of PNRR measures will allow continued investments in infrastructure, hospitals and schools, with an estimated budget of 10 billion euros until August 2026.
Bolojan and Dombrovskis reconfirmed that compliance with fiscal targets and rapid progress in the implementation of the PNRR are essential for Romania's economic stability and attractiveness on international markets.
The European Commissioner for Economy and Productivity, Implementation and Simplification, Valdis Dombrovskis, is visiting Romania on Monday and Tuesday.
