Ex-President, ex-PMs Warned of Default Risk Over Deficit Since Aug 2024

  Three former top officials of the Romanian state—Klaus Iohannis, Marcel Ciolacu, and Nicolae Ciuca—received multiple briefings between August and December 2024 regarding the imminent risk that Romania would end the year with a much higher budget deficit than initially projected, according to a report by Radio Free Europe/Radio Liberty (Europa Libera), which published six documents, all marked “strictly confidential.”   The first such document was sent on August 19, and the last one on December 20. The three officials received these briefings from the Ministry of Finance, as they were serving at the time as President, Prime Minister, and President of the Senate, respectively.   Through these documents, the officials were informed about the budget execution at that point in time, the risks the deficit posed to Romania’s credit rating and next year’s budget, and the consequences of failing to adopt deficit-correcting measures.   “In the absence of urgent budgetary measures aimed at limiting and reducing budgetary spending for the remainder of the year, there are major risks that the assumed deficit target will be exceeded, which would lead to increased costs for financing the budget deficit,” warned Ministry of Finance officials in one of the documents.   This notice was signed by Finance Minister Marcel Bolos, State Secretaries Alin Andries and Dana Pescaru, and the head of ANAF (Romanian tax authority), Nicoleta Mioara Carciumaru.   Finance officials also warned of the risks that Romania would no longer find enough loan money to pay the pensions and salaries substantially increased by the Ciolacu government.   Former Finance Minister Marcel Bolos confirmed to Radio Free Europe the existence of the documents and that the information was sent to the Presidency, Government and Senate in confidence because their appearance in the public space could generate a crisis of distrust in Romania’s ability to pay its debts.   “In 2024, the entire political class was talking about not increasing taxes and fees, the only one sending information in this regard was me. Budget execution was published monthly and the evolution of the budget deficit was visible,” said Marcel Bolos.   “Romania is not in any economic collapse,” and “blind austerity does not reduce the deficit, but deepens it,” former Prime Minister Marcel Ciolacu said on Thursday in a message published on his Facebook page, amid accusations that the Executive he led created the “economic disaster” due to which painful fiscal measures are currently being adopted.   According to Ciolacu, the fiscal reform was foreseen in the PNRR anyway and had to be implemented. “But if I have to do prison time so that we can have, after 30 years, the Moldovan Highway, then I accept without regrets,” the former Prime Minister also wrote. Asked about Ciolacu’s message, current Prime Minister Ilie Bolojan declared on Antena 3 CNN on Thursday evening that he would not enter into a dispute with him, but he wonders: “If everything is so good, why was there no enthusiasm to be the Prime Minister of Romania during this period? Especially after the elections, when you don’t have a worrying perspective.”