Interim PM Bolojan on risk of Romania being downgraded to

Acting prime minister Ilie Bolojan said on Tuesday evening that the risk of Romania being downgraded to "junk" status by credit rating agencies depends on whether the country remains on the agreed fiscal path, which is clearly aimed at reducing the budget deficit."Given the current situation, there is, of course, legitimate concern. The questions are: who will form the next government, what policies it will pursue in the coming period, whether it will maintain this course of fiscal discipline, whether it will honour Romania's commitments, or whether things will once again get out of hand and we will return to last year's situation. That is the concern of the rating agencies, and rightly so.Secondly, there is the issue of the financial inflows expected to come into Romania, such as the funds under the National Recovery and Resilience Plan (PNRR). (...) We are currently in a situation where some of the relevant laws were adopted today during Parliament's sittings, while the remaining ones will be discussed in the second half of July, should the two chambers be convened. However, I am confident that, given the financial importance of these measures, Parliament will be convened and MPs from across the political spectrum will attend and vote in favour of them.Clearly, if these laws are adopted, we will no longer face problems regarding the inflow of these financial resources. If they are not adopted, however, bear in mind that when a law has a financial impact of 700 million euros or 1 billion euros, it can affect the budget balance and, naturally, create a risk - not of default, but of failing to remain within the fiscal trajectory that Romania has committed itself to," Bolojan said.He stressed that there is no risk of salaries and pensions being left unpaid in the coming period. He also estimated that fuel prices would begin to fall from next month, even though the government-imposed cap on pump prices expires on July 1."What we need to do is maintain our current course. That means having governments that stick to this direction and, at the same time, doing what is necessary: securing European funds and continuing budget savings in a balanced and responsible manner. If we do that, it will only be a matter of a few months before people begin to see the results.Fortunately, the conflict in the Gulf has eased. This means that, from July onwards, we should start to see fuel prices decline. Companies are currently operating with fuel stocks purchased 10, 15 or 20 days ago. As a result, the downward trend should become visible throughout July, so that by the end of the month, provided there is no renewed conflict in the Gulf, fuel prices should return to levels close to those seen before the conflict, namely those recorded in February," Ilie Bolojan added.