Asked about the fiscal policy in the context of the fiscal corrective package just endorsed by the Constitutional Court, Romania’s prime minister Marcel Ciolacu said that this year’s public deficit will be around 5.5%-5.7% of GDP (5.75% of GDP under cash methodology, last year) and can be brought down to 3% of GDP in 2025.

The rating agency S&P, in its recent country update, admitted that the executive could meet the 3%-of-GDP public deficit target, but no sooner than 2026.

Consensus expectations of independent analysts indicate a public deficit of 5% of GDP next year, based on the fiscal corrective package.

Significant and justified doubts exist about the executive’s capacity to enact a second, toughest fiscal corrective package in the super-electoral year 2024.

iulian@romania-insider.com

(Photo source: Gov.ro)