Romania’s public deficit will decrease under 5.5% of GDP this year, from 6.2% of GDP in 2022, which meets the European Commission’s minimal expectations, Romania’s PM Marcel Ciolacu confirmed.

The fiscal package promoted by the Government will be completed by the fiscal reforms pledged under the national implementation of the Resilience Facility scheme, he added, quoted by Bursa.

The named reforms mainly focus on the pension system and structural reforms in the budgetary sector.

Ciolacu explained that the fiscal consolidation was a compromise aimed at preventing the loss of European funds (in case of fiscal slippage) and “keeping the economy alive.”

He said that the Government could have achieved the promised 4.4%-of-GDP deficit but with a major (yet unnamed) impact on the economy – most likely slower growth. 

(Photo: Edgars Sermulis/ Dreamstime)

iulian@romania-insider.com