Nazare: Drafting a credible budget for 2027 is an essential condition

Drafting a credible budget for 2027?one that is also adhered to during budget execution?is an essential condition for continuing Romania's fiscal consolidation and improving the country's rating outlook, according to Interim Finance Minister Alexandru Nazare."First of all, it is a matter of drafting a credible budget for 2027, which is an absolutely essential condition. Why? Not because of Friday's rating. I know we are all awaiting the S&P report?since there are scheduled dates for such publications?but the agency can make decisions at any time, on an ad-hoc basis. In any case, decisions from other agencies await us in January and February. So, we have no other option but to draft a credible budget for 2027?I repeat, not for them, but for ourselves?so that we can stick to this 10-year national plan," Nazare explained on Tuesday at the launch of the volume *Financial Sustainability: From Deficits to Nominal Convergence*.He emphasized that a credible budget and adherence to it during next year's execution could lay the groundwork for improving Romania's rating outlook and reducing financing costs."Perhaps we are tired of constantly sitting at the bottom rung of junk status. Perhaps we want to shift our outlook from negative to stable, or from stable to positive. Perhaps we are setting a goal?whether it is a rating upgrade or simply maintaining our current standing?and with a credible budget that is actually implemented next year, we have the chance to see an improved outlook; this would effectively be a major signal, one that would immediately be reflected in our financing costs," the minister stated.According to him, Romania cannot afford to slow down the pace of fiscal consolidation, given that the deficit needs to be reduced further."With a view to economic growth next year, this signal would be extremely important and would trigger a reversal of the trend we entered long ago?as we have been experiencing an economic slowdown for years. Practically speaking, we can only reverse this trend starting in 2027, and we can only do so together," stated Alexandru Nazare.He added that Romania needs the support of the entire political class to continue the most difficult phase of fiscal consolidation?namely, reducing the deficit from 6% to 3%."However, today we are moving from a 9% deficit toward 3%; we are somewhere halfway there. And I have heard?not just once, but several times?opinions suggesting we could take a break. We might pause for a bit?say, reach 6% and just stay there. I don't think we can afford that. Given Romania's current situation, we cannot afford to stop. The bridge behind us is broken; there is only the way forward," stated Nazare.The interim Finance Minister assessed that a positive signal regarding the rating outlook and financing costs could also contribute to reversing the trend of economic deceleration.