The Romanian Government recently approved the signing of the EU Fiscal Governance Agreement by Romania, according to Mediafax newswire. The document will also have to be signed by the country’s President Traian Basescu. About a week ago, the governing coalition parties in Romania signed a protocol to support accession to the EU Fiscal Governance 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. 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 would start automatically in case the deficit exceeds the threshold. Sanctions for serial deficit offenders are also included in the agreement.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)