Romania signed the Fiscal Governance Agreement earlier today ( March 2 ) in Brussels, where president Traian Basescu is attending the EU summit. According to the agreement, the deficit of countries that join the treaty will have to stay below 3 percent of the GDP and each country will have to create a correction mechanism that starts automatically in case the deficit exceeds the threshold. Sanctions for serial deficit offenders are also included in the agreement.

European leaders met on January 30 in Brussels to agree on the terms of a permanent safeguard fund for the eurozone and on tighter fiscal discipline. The UK and the Czech Republic were the only countries out of the 27 that rejected the pact.

The budgetary discipline treaty will be signed from March onwards and enforced once 12 countries sign.

editor@romania-insider.com