Nazare: Romania needs strong and urgent measures to preserve its international credibility and economic stability

The  budgetary deficit continues to grow, which creates a higher pressure on the public finances, and Romania needs firm and urgent measures to keep its international credibility and economic stability, says the minister of finances, Alexandru Nazare.'The budget deficit continues to grow. I do not have a simple mission, but I will say with full responsibility: Romania needs firm and urgent measures to preserve its international credibility and economic stability. Today, the Ministry of Finance published the budget execution at the end of May 2025, and the data clearly show that the budget deficit continues to increase. In nominal terms, it reached RON 64.23 billion, RON 4.13 billion more than in the same period in 2024, even though in percentage terms it remains almost constant (3.39% of GDP vs. 3.41% in 2024). This widening of the deficit is creating increasing pressure on public finances, in a context in which Romania is under close scrutiny by the rating agencies and the European Commission,' the minister wrote on his Facebook page on Friday. He reiterated that the Fitch Ratings agency said that Romania is risking to lose its recommended investment grade if they do not apply rapid measures for fiscal consolidation, and the European Commission started the procedure for excessive deficit and required a plan for correction credible until the end of June and without it, Romania risks the suspension of European funds.The Finance Minister pointed out that revenues grew by 13.6 per cent, with large contributions from income tax, social security contributions, excise revenues and EU funds. At the same time, expenditures grew by 12.2 per cent, with the largest shares coming from social assistance expenditure, interest costs and public investment expenditure.   'Basically, spending grew at a faster pace than the country's economy managed to grow over the past year. If we do not urgently correct this imbalance, Romania's access to favourable financing may be jeopardised, with dramatic consequences for the economy, interest rates, investment and jobs', Alexandru Nazare pointed out. (Photo:https://www.facebook.com/)