By Reuters An "optimistic, realistic" budget deficit target for Romania in 2025 is 7.5% of economic output, President-elect Nicusor Dan said on Thursday, adding that preliminary talks on the 2025 and 2026 budgets do not include tax increases. Romania ran a deficit of 9.3% of output in 2024. Failure to quickly enforce credible mesures to lower the shortfall means the European Union and NATO member state risks having its access to EU funds blocked and a potential downgrade of its sovereign rating from the last rung of investment grade. After defeatinga hard-right eurosceptic contender in a presidential election this month, centrist Dan faces the task of nominating a prime minister who can put together a team that can deal with public finances. Romania's 2025 budget targets a deficit of 7% of output - based on an economic growth assumption of 2.5% - which analysts and the European Commission have said is virtually unattainable without additional measures being taken. "The optimistic, realistic target for 2025 for the deficit is 7.5% of GDP. We need to transfer approximately 30 billion lei ($6.70 billion) within the budget," Dan told reporters after the top court validated the election result. He will be sworn in on Monday. "In my view, talks on the 2025 and 2026 budgets start from the premise of not hiking taxes," said Dan, who opposed tax increases during his election campaign. Romania's growth has steadily slowed since a post-pandemic bounce in 2021 and the European Commission, the EU's executive body, forecasts a budget deficit of 8.6% this year and 8.4% in 2026. Romania is currently hanging on to the lowest investment grade rating from S&P, Fitch and Moody's. All three have it on a "negative" outlook. A new government will have to involve at least three pro-EU parties to have a majority, while the far-right, which controls a third of parliament, could build on its recent gains to stoke sentiment against budget cuts.
Former US first lady Michelle Obama, the wife of Barack Obama, was in Bucharest on Thursday, September 18, to serve as the main guest at the second edition of the Impact Bucharest series of conferences. The former first lady spent about an hour in front of a large audience, speaking about her childhood in a […]
Czech president Petr Pavel spent a few days in Romania at the beginning of September while on holiday. According to statement by the Romanian Embassy in Prague, the Czech leader traveled mountain routes by motorcycle and chose modest accommodations. Pavel tried to see as much of what Romania had to offer. He planned his routes, […]
Romania is taking tangible action toward its green transition through sustainable infrastructure projects, public‑private partnerships and green bonds. Experts, government officials and business leaders have gathered today at the CES Bucharest ESG Conference, to present progress and identify solutions through which the public and private sectors can collaborate to build a sustainable and competitive economy. […]
Prime minister Ilie Bolojan announced that he will visit Brussels next week to talk to three European commissioners about deficits, defense, and EU financing. The first meeting will be with the commissioner for economy, Valdis Dombrovskis, as Romania “must adjust the issues related to deficits to be a trustworthy country, so as not to continue […]
A large majority of Romanians, namely 85%, have heard of celebrated composer George Enescu, according to the third edition of the Informat.ro – INSCOP Research Barometer conducted earlier this month. However, the survey shows a slight decline in cultural awareness compared to 2013, particularly among younger generations. The
The volume of trade between Romania and China was almost USD 9.3 billion in 2024, according to official statistics. Trade between the two, however, is not balanced. Romania registered a USD 7.7 billion deficit with China, and a USD 2.1 billion deficit in the first quarter of 2025 as well. The People’s Republic of China […]
